# EDGAR Filing Document

**Accession Number:** 0002067746
**File Stem:** 0001829126-26-000258
**Filing Date:** 2026-1
**Character Count:** 2076291
**Document Hash:** 51fe2f52ea6198952fee9905b630441c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001829126-26-000258.hdr.sgml**: 20260113

**ACCESSION NUMBER**: 0001829126-26-000258

**CONFORMED SUBMISSION TYPE**: S-11/A

**PUBLIC DOCUMENT COUNT**: 52

**FILED AS OF DATE**: 20260113

**DATE AS OF CHANGE**: 20260112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** JOSS Realty REIT, Inc.
- **CENTRAL INDEX KEY:** 0002067746
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 334793312
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-11/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290369
- **FILM NUMBER:** 26528051

**BUSINESS ADDRESS:**
- **STREET 1:** 650 FIFTH AVENUE, SUITE 2700
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019
- **BUSINESS PHONE:** 2127108194

**MAIL ADDRESS:**
- **STREET 1:** 650 FIFTH AVENUE, SUITE 2700
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019

**As filed with the Securities and Exchange Commission on January 12, 2026.**

**Registration Statement No. 333-290369**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

 **Amendment No. 3 to**

**FORM S-11**

**FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933**

**OF SECURITIES OF CERTAIN REAL ESTATE COMPANIES**

**JOSS Realty REIT, Inc.**

(Exact name of registrant as specified in its governing instruments)

**650 5<sup>th</sup> Avenue, Suite 2700**<br>**New York, New York 10019<br>(212) 710-8197**

(Address, including Zip Code and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

**Larry Botel**

**650 5<sup>th</sup> Avenue, Suite 2700<br>New York, New York 10019**

**(212) 710-8193**

(Name, Address, including Zip Code and Telephone Number, Including Area Code, of Agent for Service)

**Copies to:**

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| | |
|:---|:---|
| **Andrew Epstein, Esq.**<br> **Kris Ferranti, Esq.**<br> **Om Pandya, Esq.**<br> **Clifford Chance US LLP<br>Two Manhattan West<br>375 9<sup>th</sup>** **Avenue<br>New York, New York 10001<br>(212) 878-8000** | **Michael Blankenship, Esq.**<br> **Winston & Strawn LLP**<br> **800 Capital St. Suite 2400**<br> **Houston, Texas 77002-2925**<br> **(713) 651-2600** |

---

**Approximate date of commencement of proposed sale to the public:**

**As soon as practicable after this Registration Statement becomes effective.**

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box: ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If delivery of the prospectus is expected to be made pursuant to Rule 434, check the following box. ☐

[**Table of Contents**](#toc)

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. (check one):

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

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 7(a)(2)(B) of the Securities Act ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment that specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.**

[**Table of Contents**](#toc)

**The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

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| | |
|:---|:---|
| **PRELIMINARY PROSPECTUS** | Subject to Completion, dated January 12, 2026 |

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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;**3,000,000 Shares**

![](img_001.jpg)

**JOSS Realty REIT, Inc.**

3,000,000 Shares of Common Stock

We are offering 3,000,000 shares of our common stock. All of the shares of common stock offered by this prospectus are being sold by us. This is an initial public offering. Prior to this offering, there has been no public market for our common stock. We expect the initial public offering price of our common stock to be between $4.00 and $6.00 per share.

We have applied to list our common stock on the NYSE American LLC ("NYSE American"), under the symbol "JOSS."

We intend to elect to qualify to be taxed as a REIT under the Code, commencing with our taxable year ending December 31, 2026. We believe that as of such date we will have been organized and will have operated in a manner to qualify for taxation as a REIT for U.S. federal income tax purposes. We intend to continue to be organized and operate as a REIT in the future*.*** To assist us in qualifying as a REIT, our charter prohibits, with certain exceptions, the beneficial or constructive ownership by any person of more than 9.8% in value of the aggregate of the outstanding shares of our capital stock or more than 9.8% (in value or in number of shares, whichever is more restrictive) of the aggregate of the outstanding shares of our common stock. In addition, our charter contains various other restrictions on the ownership and transfer of our common stock and capital stock. See "Description of Our Capital Stock—Restrictions on Ownership and Transfer" for a description of the ownership and transfer restrictions applicable to our common stock.

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, as amended, and will be subject to reduced public company reporting requirements.

***Investing in our common stock involves risks. See "Risk Factors" beginning on page 26 for factors you should consider before investing in our common stock.***

***Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.***

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| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Initial public offering price | $| $|
| Underwriting discounts and commissions<sup>(1)</sup> | $| $|
| Proceeds, before expenses, to us | $| $|

---

(1) We refer you to "Underwriting" beginning on page 165 of this prospectus for additional information regarding underwriting compensation.

The underwriters have the option, exercisable within 45 days from the date of this prospectus, to purchase up to an additional 450,000 shares from us at the initial public offering price less the underwriting discounts and commissions.

The underwriters expect to deliver the shares of common stock to purchasers on or about , 2026.

**D. Boral Capital**

 **The date of this prospectus is , 2026**

[**Table of Contents**](#toc)

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| [PROSPECTUS SUMMARY](#a_001) | 1 |
| [The Offering](#a_002) | 24 |
| [RISK FACTORS](#a_003) | 26 |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_004) | 53 |
| [USE OF PROCEEDS](#a_005) | 54 |
| [DISTRIBUTION POLICY](#a_006) | 55 |
| [CAPITALIZATION](#a_007) | 56 |
| [DILUTION](#a_008) | 57 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_009) | 59 |
| [PRIOR PERFORMANCE SUMMARY](#a_009a) | 83 |
| [BUSINESS AND PROPERTIES](#a_010) | 84 |
| [MANAGEMENT](#a_011) | 108 |
| [EXECUTIVE AND DIRECTOR COMPENSATION](#a_012) | 115 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#a_013) | 120 |
| [STRUCTURE AND FORMATION OF OUR COMPANY](#a_014) | 121 |
| [POLICIES WITH RESPECT TO CERTAIN ACTIVITIES](#a_015) | 125 |
| [LIMITED PARTNERSHIP AGREEMENT OF OUR OPERATING PARTNERSHIP](#a_016) | 128 |
| [PRINCIPAL STOCKHOLDERS](#a_017) | 131 |
| [DESCRIPTION OF OUR CAPITAL STOCK](#a_018) | 132 |
| [CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS](#a_019) | 136 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#a_020) | 142 |
| [ERISA CONSIDERATIONS](#a_021) | 144 |
| [U.S. FEDERAL INCOME TAX CONSIDERATIONS](#a_022) | 145 |
| [UNDERWRITING](#a_023) | 165 |
| [LEGAL MATTERS](#a_024) | 171 |
| [EXPERTS](#a_025) | 171 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_026) | 171 |
| [INDEX TO FINANCIAL STATEMENTS](#a_027) | F-1 |
| [APPENDIX A – PRIOR PERFORMANCE TABLES](#a_028) | A-1 |

---

i

[**Table of Contents**](#toc)

**You should rely only on the information contained in this prospectus or in any free writing prospectus prepared by us. We have not, and the underwriters have not, authorized anyone to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. We are not, and the underwriters are not, making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing in this prospectus and any free writing prospectus prepared by us is accurate only as of their respective dates or on the date or dates which are specified in these documents. Our business, financial condition, liquidity, results of operations and prospects may have changed since those dates.**

**Market Data**

We use market data and industry forecasts and projections throughout this prospectus and, in particular, the sections entitled "Prospectus Summary" and "Business and Properties." We have obtained certain market and industry data from publicly available industry publications. These sources generally state that the information they provide has been obtained from sources believed to be reliable but that the accuracy and completeness of the information are not guaranteed. The forecasts and projections are based on industry surveys and the preparers' experience in the industry, and there is no assurance that any of the projected amounts will be achieved. Although we are responsible for all of the disclosure contained in this prospectus and we believe the third-party market data included in this prospectus are reliable, we have not independently verified this information.

**Non-GAAP Financial Measures**

In this prospectus, we use certain non-GAAP financial measures as supplemental performance measures of our business, including NOI, EBITDA, Adjusted EBITDA, and FFO. For definitions of these metrics, reconciliations of these metrics to our net loss for the comparable periods, and a statement of why our management believes the presentation of these metrics provides useful information to investors and any additional purposes for which management uses such metrics, see "Summary Historical and Pro Forma Combined Consolidated Financial Data—Non-GAAP Financial Measures."

ii

[**Table of Contents**](#toc)

**Certain Terms Used in This Prospectus**

Unless the context otherwise requires, the following terms and phrases are used throughout this prospectus as described below:

● "ABR" means the annualized contractual cash rent due for the last month of the reporting period, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for properties acquired during the last month of the reporting period;

● "EBITDA" means earnings before interest, taxes, depreciation and amortization;

● "FFO" means funds from operations;

● "formation transactions" means the formation transactions described under "Structure and Formation of our Company;"

● "fully diluted basis" means information is presented assuming all outstanding OP units have been exchanged for shares of common stock on a one-for-one basis and all equity awards to be issued to our management, members of our board of directors and other eligible service providers in connection with this offering are outstanding (this definition is not the same as the meaning of "fully diluted" under GAAP);

● "GAAP" means generally accepted accounting principles as promulgated by the Financial Accounting Standards Board in the United States of America;

● "JOSS," "we," "our," "us" and "our Company" mean JOSS Realty REIT, Inc., a Maryland corporation, together with its consolidated subsidiaries, including our operating partnership;

● "maintenance capital expenditures" means capitalized funds used to maintain assets that will result in an extended useful life;

● "NOI" means net operating income;

● "OP units" means common units of partnership interest in our operating partnership;

● "our operating partnership" means JOSS REIT Holdings, LP, a Delaware limited partnership, through which we will hold substantially all of our assets and conduct our operations;

● "pro forma basis" means information is presented assuming the completion of this offering, the formation transactions and the other adjustments described in our unaudited pro forma consolidated balance sheet included elsewhere in this prospectus had occurred on September 30, 2025; and

● "REIT" means real estate investment trust for U.S. federal income tax purposes.

iii

[**Table of Contents**](#toc)

**PROSPECTUS SUMMARY**

*The following summary highlights information contained elsewhere in this prospectus. This summary is not complete and does not contain all of the information that you should consider before investing in our common stock. You should read the entire prospectus carefully, including the section entitled "Risk Factors," as well as our combined consolidated financial statements and related notes included elsewhere in this prospectus, before making an investment decision. Unless the context otherwise requires, all references in this prospectus to "JOSS," "Registrant," "we," "us," "our" and the "Company" refer to "JOSS Realty REIT, Inc."*

*Unless otherwise indicated, the information contained in this prospectus assumes that (1) the formation transactions described under "Structure and Formation of our Company" have been completed, (2) the underwriters' option to purchase additional shares has not been exercised and (3) all information is as of September 30, 2025.*

**Our Company**

We are a real estate investment company focused on acquiring, improving, owning and managing diverse multi-tenant office properties focusing in diverse, strong economic urban and close suburban nodes in major, top-25 Metropolitan Statistical Areas ("MSAs").

We own 100% of the interests in two multi-tenant office properties and a 26.6% interest in one multi-tenant office property, all three of which we refer to collectively as our "initial portfolio." The multi-tenant office properties are comprised of buildings with an aggregate of approximately 308,000 net rentable square feet and 33 total tenants, and are approximately 72% leased, based on the total rentable square footage of our initial portfolio. Our total annualized base rent from our initial portfolio for the quarter ended September 30, 2025 is $7.6 million. Our initial portfolio includes properties located in three markets within major MSAs in the Northeast and on the West Coast: Boston, Philadelphia and the San Francisco Bay Area. We intend to seek additional opportunities in the MSAs where we currently own properties, and other MSAs such as Washington, D.C., Los Angeles, Miami/West Palm Beach, and New York. Our tenants come from a variety of industries, including engineering, banking, consulting, consumer retail, and healthcare, and include investment grade tenants such as Wells Fargo Bank, N.A. ("Wells Fargo"), Raymond James & Associates, Inc. ("Raymond James"), Charles Schwab & Co. Inc. ("Charles Schwab"), UBS Financial Services, Inc. ("UBS") and Oppenheimer & Co. Inc. ("Oppenheimer"). These five tenants make up a total of 14% of our total current leased square footage. The weighted average remaining lease term ("WALT") of our properties is 4.7 years.

JOSS Realty Partners was founded in 2005 by Larry Botel, our founder and Chief Executive Officer. Since 2005, Mr. Botel has been responsible for the acquisition, financing, operating, leasing and disposition of approximately 31 office properties valued at approximately $1.2 billion. Mr. Botel possesses a track record of more than 35 years of commercial real estate experience along with tremendous relationships within the real estate industry and an intimate knowledge of multiple commercial real estate cycles. As a result, Mr. Botel has deep and broad experience in identifying and capitalizing on opportunities in the commercial office space. Additionally, our Chief Operating Officer, Larry McCulley, has over 40 years of real estate experience and oversees our asset and property management. We intend to leverage the extensive and long-standing relationships and knowledge of Mr. Botel and Mr. McCulley in maintaining and growing our portfolio both in our initial selected markets and additional markets.

We were organized as a Maryland corporation on April 15, 2025 and intend to elect to be taxed and to operate in a manner that will allow us to qualify as a REIT for U.S. federal income tax purposes commencing with our taxable year ending December 31, 2026.

[**Table of Contents**](#toc)

**Investment Strategy and Market Opportunity**

Our investment strategy, which we have been executing since 2005, is to acquire and improve under-valued and compelling office properties in the economically diverse MSAs of the Northeast, Southeast, and Western United States.

We believe the current commercial real estate market conditions will enable us to strategically capitalize on attractive new acquisitions and achieve accretive growth. For new acquisitions, we will target boutique office assets in sustainable, desirable locations. We believe that many of these will be value-add properties where we will strategically invest capital and reposition assets to be best in class in its competitive set, highlighting asset strengths, new amenity programs, and capital available for tenant improvements and leasing commissions. These have been key elements of our strategy, success and track record since our inception in 2005.

Our initial portfolio includes properties located in three markets within major MSAs in the Northeast and on the West Coast: Boston, Philadelphia and the San Francisco Bay Area. We intend to seek additional opportunities in the MSAs where we currently own properties, and other MSAs such as Washington, D.C., Los Angeles, Miami/West Palm Beach, and New York. We believe that the top-25 MSAs are attractive areas for investment in office properties for the following reasons.

● Diverse economic hubs: The MSAs in which we invest are home to large international, national and regional employers across a wide range of industries including technology and finance as well as federal, state and local government offices. This diversity helps buffer against economic downturns. The tenant base of our initial portfolio features diverse industries such as engineering, banking, fitness and healthcare.

● Desirability of living: There is a trend towards establishing offices in vibrant neighborhoods where tenants have access to amenities. Commercial properties located in walkable areas with strong access to public transportation are increasingly desirable. Studies show a strong correlation between walkable features – like mixed-use development, density, and efficient public transit access – and an increase in property values, rents, retail sales, occupancy, absorption and price resilience in downturns, resulting in increased commercial demand. Preference for urban and walkable workspaces are not limited to millennials and driven across generations

● Population growth: Many MSAs are experiencing population and economic growth with above average employment growth forecasts, leading to increased demand for high quality office space while supply continues to decline due to the slowdown in new construction and obsolete buildings being taken offline for conversions or teardown. According to the Census Bureau, the top-25 MSAs have made up more than 50% of total GDP in the United States. A growing workforce often correlates with a demand for office environments nearby. Because of this population and economic growth, the opportunities in such MSAs, as well as the demand for Class A office space, will continue to grow.

● Sales Volume: The volume of office building sales increased to $63.6 billion in 2024, up 20% from 2023, according to data firm MSCI, the first increase since 2021. For example, in December 2024 Norges Bank Investment Management, a giant Norwegian sovereign-wealth fund, purchased the 50.1% stake it did not own in eight office properties in Boston, San Francisco, and Washington, D.C. (MSAs in which we own properties), in a deal that valued the properties at $1.9 billion. In the third quarter, office sales volume increased 38% year-over-year to $19.4 billion.

[**Table of Contents**](#toc)

The table below presents the top MSAs in the United States ranked by total highest gross domestic product ("GDP"). Our initial portfolio is located within the top ten MSAs by GDP.

![](img_002.jpg)

*Source: U.S. Census Bureau*

*Office Asset Class Opportunity*

The investment market for commercial office properties is at an inflection point, with assets starting to trade, creating attractive metrics for the repricing of assets and positive momentum in leasing and operating fundamentals.

● Market Pricing **:** We believe there are Class A office properties available in major MSAs which are priced at attractive entry points and at significant discounts to replacement cost. Furthermore, Green Street Advisors, LLC has estimated that office building values are down 37% from peak in 2022. We believe the current commercial real estate market conditions will enable us to strategically capitalize on attractive new acquisitions and achieve accretive growth.

[**Table of Contents**](#toc)

● Pockets of Distress **:** MSCI Inc. estimates upwards of $100 billion of distressed office opportunities coming to market in 2025, more than any other real estate asset class. This provides investors with operating experience, capital and focus, such as us, an opportunity to obtain attractive assets at a substantial discount and well below replacement cost.

● Sales Volume: The volume of office building sales increased to approximately $63.6 billion in 2024, up 20% from 2023, according to data firm MSCI. This is the first increase since 2021. According to Globe Street, in the third quarter, office sales volume increased 38% year-over-year to $19.4 billion.

● Return of Positive Fundamentals: Office-based job growth is outpacing available office inventory and as office demand continues to recover, occupied office inventory is projected to return to 2019 levels by 2030 according to CBRE. Office space construction in the United States is down to just 13.4 million square feet delivered year-to-date, according to Cushman & Wakefield ("C&W"), the lowest first three quarters of a year since 2012. The construction pipeline is not being replenished with new office starts, as it declined by 14.1% quarter-over-quarter. The 22.5 million square feet of space under construction is the lowest total in the 21st century and represents just 0.4% of total office inventory. This sharp slowdown in the construction pipeline will help insulate the higher quality existing assets in the coming years as new deliveries shrink, further driving future scarcity and value of Class A office space.

![](img_003.jpg)

[**Table of Contents**](#toc)

● Lower Productivity Driving Return-to-Office: Declining productivity and lack of innovation under remote work models are pushing businesses to mandate in-office work, increasing demand for office space. According to Jones Lang LaSalle ("JLL"), workforce productivity is lagging behind prior economic recoveries which correlates to the increase in hybrid and remote work.

![](img_004.jpg)

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● Return to office: Post-pandemic recovery and adjustments in remote work policies are expected to drive office space demand in major MSAs, as many companies are instituting return-to-office mandates. Most recently, Samsung and TD Bank have joined Amazon.com, Walt Disney, JPMorgan Chase, and countless other major employers who are mandating at least four days a week in the office. In addition to these mandates, a significant shift has taken place across the private sector: the majority of Fortune 100 employees are now subject to full five-day in-office attendance policies. Over the past year, the share of employees required to be in the office full time has increased nearly five-fold, and the average in-office requirement has grown by 25% (JLL, U.S. Office Market Dynamics, Q2 2025). As a result, office attendance has reached its highest post-pandemic level, hitting 71% of pre-pandemic figures in recent months, according to cell phone tracking data from Placer.AI. These rising attendance levels have coincided with a rebound in office-using job growth.

![](img_005.jpg)

*Source: Jones Lang LaSalle*

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![](img_006.jpg)

*Source: Cushman & Wakefield*

[**Table of Contents**](#toc)

We believe that net absorption has materially improved in the top-25 MSAs, and that office sector performance will improve as a result. According to C&W, long-term office employment is expected to rise from 34.6 million to 37 million by 2030 with office space net absorption becoming positive in 2026. Notably, 46 of the 92 U.S. markets tracked by Cushman & Wakefield Research posted positive absorption in the third quarter of 2025—a 50% jump from the 31 markets two quarters earlier. Excluding the five weakest markets, national absorption was slightly positive (+289,000 sf) in Q3 2025.

![](img_007.jpg)

*Source: Cushman & Wakefield*

[**Table of Contents**](#toc)

C&W highlights several key trends in the office real estate sector:

Economic Resilience: The U.S. real GDP expanded at an annualized rate of 3.8% in the second quarter of 2025.

Office Space Reduction with Positive Indicators: While national office absorption remained negative in the third quarter of 2025—continuing a thirteen-quarter streak—there are growing signs of stabilization. Approximately 52% of U.S. markets experienced positive absorption quarter-over-quarter, and half of U.S. markets have recorded positive absorption over the past four quarters.

Stabilization of Sublease Space: Available sublease space has declined 14.5% since the beginning of 2024 with 55 U.S. markets having experienced YOY declines, as tenants have found sublessors or taken the space back for their own use.

Preference for High-Quality Office Spaces: Demand continues to concentrate in high-performing, well-located office assets. While gateway markets such as New York, Boston, Washington, D.C., San Francisco, and Los Angeles continue to exhibit elevated vacancy rates overall, Class A and trophy buildings in prime submarkets are capturing a disproportionate share of leasing activity and sustaining stronger occupancy. As of the third quarter of 2025, this performance gap is increasingly driven by tenant flight to quality, limited new supply, and differentiated building performance across the Class A spectrum.

Net Absorption Trends: Overall net absorption declined by 4.3 million square feet in Q3 2025, with year-to-date absorption nearing a reduction of 15.7 million square feet. This is a 69% improvement from the first three quarters of 2024 which saw a decline in net absorption of 50.4 million square feet.

We believe that this recovery provides an opportunity for a compelling repricing of our existing portfolio at an attractive basis for investors. The current market conditions will also enable us to strategically capitalize on attractive new acquisitions and achieve accretive growth. For new acquisitions, we will target boutique office assets in sustainable, desirable locations. We believe that many of these will be value-add properties where we will strategically invest capital and reposition assets to be best in class in its competitive set, highlighting asset strengths, new amenity programs, and capital available for tenant improvements and leasing commissions. These have been key elements of our strategy, success and track record since our inception in 2005.

**Our Competitive Strengths**

We believe that our investment strategy and operating model distinguish us from other owners, operators and investors of commercial real estate in several important ways, including the following:

*Experienced and Aligned Management Team*

Our senior management team has extensive experience acquiring, owning and operating office properties across markets and cycles, including our founders' experience at institutional commercial real estate and private equity investment firms. Our founder, Mr. Botel, possesses a track record of more than 35 years of commercial real estate experience, tremendous relationships within the commercial office sector as well as an intimate knowledge of multiple commercial real estate cycles. Since 2005, Mr. Botel has been responsible for the acquisition, financing, operating, leasing and disposition of approximately 31 office properties valued at approximately $1.2 billion. Additionally, our Chief Operating Officer, Mr. McCulley, has over 40 years of real estate experience and oversees our asset and property management.

Our senior management team has extensive experience managing operating expenses through continued implementation of cost control initiatives and implementing repositioning and development of properties. We believe our senior management team also provides us with a significant advantage over competing buyers when pursuing acquisition opportunities given its extensive relationships with property owners, brokers and tenants within our target markets, and will facilitate our ability to execute our growth plan. We believe our extensive industry network, coupled with our history of successful acquisitions, improves our ability to source and execute attractive transactions.

[**Table of Contents**](#toc)

*Well-Positioned Initial Portfolio*

We own 100% of the interests in two multi-tenant office properties and a 26.6% interest in one multi-tenant office property, all three of which we refer to collectively as our "initial portfolio." These multi-tenant office properties are comprised of three buildings with an aggregate of approximately 308,000 net rentable square feet. As of September 30, 2025, our initial portfolio was approximately 72% leased. Our initial properties are located in vibrant communities with diverse economies, prominent universities, and local governments that are supportive of attracting business and are expected to attract entrepreneurs and large employers alike. We believe a large portion of the workforce is increasingly remaining in these markets to seek employment. The MSAs in which our initial properties are located share a number of important common attributes that are particularly attractive, such as numerous housing options, well-regarded schools and a desirable work-life balance, evidenced by short commutes and proximity to restaurants, coffee shops, bars, gyms and other retail conveniences.

None of the three buildings in our initial portfolio require extensive capital expenditures and each provides opportunities for discretionary, value-add improvements. Through our hands-on strategy, we invest in features attractive to tenants, including modern technology and amenities, and our all-in investment remains substantially below estimated replacement cost. We believe that the location of the office properties in our initial portfolio, their high occupancy levels and low capital expenditure requirements lead to our initial portfolio being well-positioned to carry out our investment strategy.

*Early Identification of and Investment in Attractive Markets*

Our founder, Mr. Botel, identified the potential for economic growth in our target markets and has invested in many of our initial selected markets throughout his career. We believe that economic growth in our initial selected markets will continue as employee talent continues to migrate to vibrant top MSAs and employers locate or relocate their offices to attract a younger, well-educated workforce that is increasingly residing nearby. We believe that the announcements made by Amazon, Uber, Meta and the incoming administration to shift federal government employees back into offices in our target markets validate our views of this demographic shift. We also believe that target markets will continue to be considered for corporate relocations, as well as initial locations for start-ups, and that these relocations and new businesses will further raise the profile of our target markets. Additionally, we are confident that our early and consistent presence in many target markets and our proven ability to identify desirable submarkets and locations will lead to continued execution on such opportunities.

*Active and Robust Pipeline to Discounted Acquisitions*

We expect that our extensive "high-touch" relationships with property owners, brokers, national and regional lenders, diverse tenants and other market participants in our initial selected markets and our reputation as a reliable counterparty will continue to provide us access to both widely marketed and off-market acquisition opportunities as well as portfolio sales. Our positive reputation with market participants distinguishes us from many competing property buyers and owners, who often do not have the same localized relationships and knowledge. Brokers reach out to us directly as our reputation and ability to execute has established us as a reliable and sophisticated counterparty. Our active and robust acquisition pipeline includes approximately 3.3 million square feet in 2024, and our 2025 pipeline includes 1.7 million square feet of multi-tenant office properties in our initial selected markets, which we have generated from these relationships and our deep knowledge of our initial selected markets.

*Proactive Asset Management*

Our asset management team focuses on improving each asset we acquire. Often, these improvements include lobby renovations, base building system upgrades, creation of additional shared amenities such as common area WiFi and security systems, tenant-facing technology to enable access and communication with property management, cafes, gyms, and conference centers. Our experience in implementing these improvements drives tenant satisfaction and retention along with attracting new tenants in the competitive leasing markets.

Our asset management team regularly evaluates each of our properties, including its historical and projected financial performance, tenant mix, market fundamentals, market position, and other factors, to assess whether its expected future returns justify our continued ownership, or if one or more properties should be sold in order to redeploy the proceeds into other investment opportunities.

In addition, we have demonstrated an ability to effectively identify opportune times to sell properties after executing our value-add repositioning strategy, which has in the past resulted in, and in the future is expected to result in, enhanced liquidity and the ability to fund new acquisitions from time to time.

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**Our Business and Growth Strategies**

Our principal investment objectives are to provide our stockholders with current income in the form of dividends and to increase the cash flow and the value of our office portfolio which will ultimately increase cash flow and dividends. We intend to meet these objectives through execution of the following strategies:

*Disciplined Acquisition of Office Properties*

We will continue to grow in markets that meet our investment criteria through strategic and accretive acquisitions that we believe will generate substantial growth. We target specific institutional-quality properties that have an existing diverse tenant mix and robust occupancy trends which we believe would benefit from our value-add repositioning strategy, with a particular focus on the addition of amenities.

We believe there are many opportunities to acquire non-core assets at attractive price points from investors and lenders that are seeking to exit the office space or need liquidity. We believe attractive assets can be acquired at a very low basis, substantially discounted from peak valuations, and well below replacement cost. These assets tend to be under-managed and underfunded, representing an opportunity for a new investor – with operating expertise, capital, and focus – to create significant upside through active management and improvement.

*Maintain a Prudent Financing Strategy*

We will seek to efficiently use debt and equity financing sources to pursue new growth opportunities. We intend to target an overall debt-to-gross total assets ratio of 55%–65%, which we believe is appropriate for a real estate investment company that seeks to grow and ultimately de-lever. Over time, we expect our overall debt-to-gross total assets ratio will decrease to approximately 50%. In addition, we believe our ability to issue OP units as tax-advantaged consideration for property acquisitions will provide us a significant competitive advantage in acquiring properties.

*Strong Operating Focus*

We will have a hands-on approach to asset management. We currently use third parties to manage our initial portfolio. Given our intimate knowledge of property management, we are proactive in our daily engagement with our property managers. This includes careful selection of our quality third-party managers.

From 2005 to 2019, JOSS internally managed its assets. As we achieve scale in target markets, we will look to internalize the property management function in order to be advantageous to our investment management business plans.

*Pursue Opportunities to Recycle Capital Efficiently*

We are committed to prudent growth and expect to create value by assembling a larger portfolio of multi-tenant office properties that will benefit from positive economic and demographic trends that we believe will drive future stockholder value. However, we intend to regularly evaluate our portfolio and opportunistically and selectively sell office properties when we believe the proceeds can be efficiently redeployed into new investment opportunities that may present greater overall return prospects.

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**Our Initial Portfolio**

![](img_008.jpg)

**As of September 30, 2025:**

○ **Properties = 3** 

○ **Net Rentable Square footage = 307,820** 

○ **Total Tenants = 33** 

○ **ABR = $7.6M** 

○ **Top Ten Tenants (% of ABR) = 69%** 

○ **Occupancy = 72%** 

○ **WALT = 4.7 Years** 

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The following table sets forth an overview of our initial portfolio as of September 30, 2025.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **% Equity<br> Interests<br> Owned** | **Number of<br> Tenants** | **Location** | **Year<br> Acquired** | **Net<br> Rentable<br> Square<br> Feet** | **%<br> Leased** | **Annualized<br> Base Rent** | **Annualized<br> Base Rent<br> per Leased<br> Square Foot** |
| 55 Walkers Brook | 100% | 8 | Reading, MA | 2018 | 139249 | 92% | $4126943 | $32.07 |
| 165 Township Line Road | 100% | 6 | Jenkintown, PA | 2017 | 102713 | 47% | $1369095 | $28.24 |
| Napa Square | 26.6% | 19 | Napa, CA | 2016 | 65858 | 67% | $2140550 | $48.58 |
| **Total/Weighted Average** |  | 33 |  |  | 307820 | 72% | $7636588 | $34.52 |

---

 ***55 Walkers Brook Drive, Reading, MA ("55 Walkers Brook")***

We acquired 55 Walkers Brook in December 2018 for $32.25 million. As of September 30, 2025, the 139,249 square foot property was 92% leased to eight professional services firms across the engineering, insurance, banking and consulting industries. The largest tenant is Weston & Sampson, a leading engineering firm who occupies 32% of the property. Since acquisition, JOSS has completed 119,226 square feet of leasing activity and 100% of the property's rent was collected throughout COVID. Upside opportunities include the ability to lease-up vacant spaces, which have seen meaningful leasing activity. The property is located in the North 128 Submarket, which is a prime, well performing, submarket of the greater Boston area and is considered a boutique property with a robust and high-quality tenant base and amenities, including a cafe and gym.

***165 Township Line Road, Jenkintown, PA ("165 Township Line Road")***

We acquired 165 Township Line Road #1 and #2 in October 2017 for $12.1 million. The property contains two separate buildings. 165 Township Line #2 was sold on December 23, 2025, and the Company used a portion of the sale proceeds to pay down approximately $2.0 million of debt associated with the property. As of September 30, 2025, 165 Township Line Road #1, the 73,032 square foot property, was 56% leased. The largest tenant is National Philanthropic Trust ("NPT"), which occupies 34% of the property and has a lease that expires in 2028. Other tenants include Raymond James and Oppenheimer. The property is adjacent to the Jenkintown/Wyncote SEPTA train stop (30 minutes outside of Center City, Philadelphia) which offers a convenient commute from the Philadelphia area. Upside opportunities include renewing tenants at higher market rates and expanding and renewing NPT's leases.

***1401-1485 1*<sup>*st*</sup>**  ***Street, Napa, CA ("Napa Square")***

We, along with two other investors, acquired Napa Square in April 2016 for $39.3 million. We acquired 26.6% of Napa Square as a result of the transaction. As of September 30, 2025, the 65,858 square foot property was 67% leased. The largest tenant is Wells Fargo (S&P Rated: BBB+) and occupies 10% of the property, with their lease expiring in March 2026. In addition to Wells Fargo, the property has a stable roster of investment grade and regional tenants including Charles Schwab, UBS, a prominent law firm serving Napa's wine industry and several local high-quality wine and food artisans. The property is located in the center of downtown Napa, a major tourist area known for its high-end food and beverage attractions, and is one of three meaningful mixed-use office and retail properties in downtown Napa. Upside opportunities include continuing to lease the remaining space and maximizing rents on the retail space as downtown Napa continues to flourish.

The following table sets forth the total price to be paid for each property to be acquired, including the value of the OP Units being issued to current investors in those properties:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property** | **OP Units** | **Midpoint Price<br> Per Share** | **Total<br> Value of<br> OP Units Based<br> on Midpoint Price<br> Per Share** | **Cash<br> Payment for<br> Preferred Stock<br> Redemption** | **Amount <br> of Debt to<br> be Assumed (1)**  |
| 55 Walkers Brook | 480000 | $5.00 | $2400000 | $7064659 | $20646853 |
| 165 Township Line Road | 240000 | $5.00 | $1200000 |  | $7671523 |
| Napa Square | 480000 | $5.00 | $2400000 |  | $5931800 |

---

(1) Balance as of September
 30, 2025. In December 2025, we paid an additional $2.0 million in principal with respect to
 the 165 Township Line Road loan.

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***Select Examples of Exited Assets***

***1315 Lincoln Blvd, Santa Monica, CA***

We acquired this fully-leased boutique office asset in April 2015 for $23.7 million. The asset was one of a few Class A buildings in downtown Santa Monica with substantial parking in a highly parking constrained market. Santa Monica is a supply constrained submarket with low vacancy and minimal new construction, a key example of the markets we will seek to invest in. We implemented our hands-on operating approach, including renewing existing tenants, increasing rents, and bringing in a parking operator to improve efficiencies, all resulting in enhanced cash flow. We sold the asset in August 2017 for $30.5 million, resulting in a 17% IRR net of fees and a 1.4x multiple on invested capital ("MOIC").

***229-239 West 28*<sup>*th*</sup>**  ***Street, New York, NY***

We purchased this 153,912 square foot property in May 2007 for $48.4 million. At the time of purchase, the asset was 43% leased. We commenced a comprehensive redevelopment of the property, including converted existing loft space into office, creating 12,500 square foot floor plates with 11-foot open ceilings, adding new entrances, lobbies, elevators, bathrooms and numerous base building improvements. As a result, we were able to increase rental rates from the high teens to high $40s per square foot. We sold the property in March 2014 for $82.5 million, resulting in a 10.1% Net IRR of fees and a 1.85x MOIC. This was despite having to execute the business plan through the Great Financial Crisis of 2008.

***42 South 15<sup>th</sup> Street, Philadelphia, PA***

We purchased this 137,042 square foot, Class C office building in downtown Philadelphia in May 2005 for $13 million. We implemented a comprehensive renovation and repositioning plan, including lobby and common area renovation, new signature and branding, and re-tenanting the street-level retail, turning the property into a Class B+ asset. We sold the property in October 2007 for $16.8 million, resulting in a 41% Net IRR and a 2.18x MOIC.

***1129 20<sup>th</sup> Street, Washington, DC***

We purchased this 127,445 square foot, Class B office building in downtown Washington, D.C. in January 2006 for $45 million. We executed a redevelopment plan, which included adding two floors, which resulted in the building being upgraded to Class A. We sold the building in February 2007 for $61.8 million, resulting in a 59.2% Net IRR and a 1.66x MOIC.

***Competitive Challenges***

While we believe our investment strategy and operating model provide us with certain competitive strengths, our business and operations are subject to significant challenges and weaknesses, including the following:

● Our portfolio is concentrated in certain states and MSAs, and any adverse developments or economic downturns in these geographic markets could materially and adversely affect us. As of September 30, 2025, all of our annual base rent came from properties in Philadelphia, Northern California, and Boston, exposing us to regional risks.

● We face significant risks of tenant default and tenant vacancies, which could materially and adversely affect us. Our success depends on the financial stability of our tenants, and the loss or default of a significant tenant could result in a substantial reduction in rental revenue and property value.

● There is substantial competition for acquiring office properties and for tenants, which could adversely affect our occupancy, rental rates, and results of operations. Many of our competitors may have greater resources or lower costs of capital than we do.

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● Our real estate investments are relatively illiquid, which could materially and adversely affect us, including our financial condition and cash flows, particularly if we are unable to dispose of properties at attractive prices or at all.

● We have not obtained an independent third-party appraisal of the interests or assets being contributed to us, and the consideration to be paid by us in our formation transactions was not negotiated on an arm's-length basis. As a result, the consideration we have agreed to pay may exceed the fair market value of our initial portfolio.

For a more detailed discussion of these and other risks, see "Risk Factors" beginning on page 26 of this prospectus.

***Lease Distribution***

As of September 30, 2025, approximately 31% of our initial portfolio's annualized base rent was generated from leases of 2,501 – 10,000 net rentable square feet. The following charts set forth the percentage of annualized base rent of our initial portfolio under lease as of September 30, 2025.

![](img_a002.jpg)

![](img_a001.jpg)

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***Tenant Diversification***

As of September 30, 2025, our initial portfolio was leased to 33 tenants conducting business in a variety of industries. Our five largest tenants as of September 30, 2025 were Weston & Sampson Engineers, Inc., National Philanthropic Trust, Reading Co-Operative Bank, Eliassen Group, and Cannon Cochran Management Services, Inc. Collectively, as of September 30, 2025, our five largest tenants provided approximately 50% of our initial portfolio's annualized base rent, and our single largest tenant provided approximately 19% of our initial portfolio's annualized base rent.

The following table summarizes the significant lease expirations within our portfolio over the next two years:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Tenant** | **Lease Expiry Date** | **Annual Base<br> Rent (ABR)** | **% of Total<br> REIT ABR** | **Leased Area<br> (SF)** | **% of Total<br> REIT SF** |
| Cannon Cochran Management Services, Inc.<sup>(1)</sup> | 30 November 2025 | $433080 | 5.8% | 12832 | 4.2% |
| Wells Fargo (Napa Square) | 31 March 2026 | $306868 | 4.0% | 6557 | 2.1% |
| District 1199C Training and Upgrading Fund<sup>(2)</sup> | 28 February 2026 | $119768 | 1.6% | 5323 | 1.7% |

---

(1) Our lease with Cannon Cochran Management Services, Inc. was due to expire on November 30, 2025.
 Following the tenant's decision to downsize its leased premises, it entered into a lease amendment dated August 22, 2025 whereby
 the tenant shall remain in and continue to pay rent for the original premises until delivery of the new premises to the tenant with
 landlord's work substantially completed (the "Delivery Date"). The Delivery Date is expected to occur in the first
 quarter of 2026, and accordingly, this replacement lease is not reflected in the calculations below.

(2) In connection with the
 sale of 165 Township #2, we expect this lease to be terminated on or around February 28, 2026.

Collectively, these leases represent approximately 5.6% of our total annual base rent and 5.4% of our total leased square footage. We actively monitor upcoming lease expirations and engage with tenants regarding potential renewals or re-letting strategies to mitigate vacancy risk. There can be no assurance that we renew or replace these leases on terms that are acceptable to us.

We will continue to position our owned assets for optimal marketability to prospective tenants and be proactive in having each asset be a top performer in their respective markets. This is achieved through proactive asset management, including an emphasis on market-leading amenities, and a thoughtful approach on tenant retention and packages to secure new, high-quality tenants.

**Identifying Potential New Tenants**

Our process for securing a suitable replacement tenant is comprehensive and begins as early as the acquisition stage. At this point, we evaluate and select the most qualified third-party brokerage firm for each asset, considering factors such as market knowledge, track record, and alignment with the asset's leasing objectives. If, during our ownership, the incumbent brokerage team does not meet performance expectations, we may re-evaluate and appoint a new brokerage partner.

Once engaged, the selected broker develops and implements a bespoke marketing plan for the asset. We actively support this process, which includes the creation of marketing materials, coordination of property tours, and targeted outreach to prospective tenants. Brokers also provide valuable feedback on potential building improvements or enhancements that may accelerate lease-up and improve leasing economics.

Throughout the marketing and leasing process, we maintain close oversight and collaboration with the brokerage team, holding weekly calls to review pipeline activity, discuss tour feedback, and determine next steps. JOSS remains actively involved from initial property tours through to negotiation of letters of intent (LOIs), lease execution, and tenant occupancy, ensuring a seamless and effective leasing process.

For each property, we engage designated legal counsel to draft leases using a standard template tailored to the specific asset. The lease is then modified to reflect the agreed terms of the LOI and input from tenant counsel. We review every iteration of the LOI and lease drafts, providing guidance and resolving any outstanding issues. Upon finalization, the lease is executed by the tenant and subsequently by ownership. This rigorous process is consistently followed for both new leases and renewals, ensuring a disciplined and efficient approach to tenant replacement.

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Our ability to find new creditworthy tenants can be constrained by an oversupply in the market, leading to downward pressure on rents and increased incentives required to attract tenants. In addition, our process of identifying, negotiating, and securing new tenants can be time-consuming and complex, involving legal, financial, and operational considerations, which may lead to prolonged vacancy periods. For a more detailed discussion of these and other risks, see "Risk Factors" beginning on page 26 of this prospectus.

**Summary Risk Factors**

You should carefully consider the matters discussed in the "Risk Factors" section beginning on page 26 of this prospectus for factors you should consider before investing in our common stock. Some of these risks include:

● Our financial situation creates doubt whether we will continue as a going concern.

● Multi-tenant office properties involve significant risks of tenant default and tenant vacancies, which could materially and adversely affect us.

● We may not be able to achieve growth through acquisitions at a rate that is comparable to our historical results, which could materially and adversely affect us.

● We face increasing competition for acquiring office properties from publicly traded REITs and companies, private institutional investors and business operators that may or may not have greater resources than we do, which could materially and adversely affect us.

● We face significant competition for tenants, which could materially and adversely affect us, including our occupancy, rental rates, and results of operations.

● The departure of any of our key personnel with long-standing business relationships could materially and adversely affect us.

● Our portfolio is concentrated in certain states and MSAs and any adverse developments and/or economic downturns in these geographic markets could materially and adversely affect us.

● We may be unable to renew leases, re-lease multi-tenant office properties as leases expire, or lease vacant spaces on favorable terms or at all, which, in each case, could materially and adversely affect us.

● Our business is subject to significant re-leasing risk, particularly for specialty properties that are suitable for only one use.

● Our business could be harmed if new trade protections are imposed or existing protections become more burdensome.

● Our business is dependent upon our tenants successfully operating their businesses, and their failure to do so could materially and adversely affect us.

● We could face potential adverse effects from tenant defaults, bankruptcies or insolvencies.

● Our reliance on certain significant tenants may have a negative impact on our results of operations or financial condition if such tenants are unable or unwilling to pay rent or decide to vacate the premises.

● Our operating results are affected by economic and regulatory changes that impact the commercial real estate market in general.

● Our real estate investments are illiquid, which could materially and adversely affect us, including our financial condition and cash flows.

● Inflation in the United States is expected to continue at an elevated level in the near- to medium-term, which may have an adverse impact on the valuation of our investments.

● Insurance on our properties may not adequately cover all losses and any uninsured losses could materially and adversely affect us.

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● We have significant indebtedness outstanding, which may expose us to the risk of default under our debt obligations.

● Increases in interest rates could increase the amount of our debt payments and limit our ability to obtain new or replacement financing.

● Market conditions could adversely affect our ability to refinance existing indebtedness or obtain additional financing for growth on acceptable terms or at all, which could materially and adversely affect us.

● Our existing indebtedness contains, and any future indebtedness is likely to contain, covenants that restrict our ability to engage in certain activities.

● Our rights and the rights of our stockholders to take action against our directors and officers are limited.

● Our charter and bylaws contain provisions that may delay, defer or prevent an acquisition of our common stock or a change in control.

● Our board of directors may change our investment and financing policies without stockholder approval, and we may become more highly leveraged, which may increase our risk of default under our debt obligations.

● Upon the completion of this offering and the formation transactions, we will be a holding company with no direct operations and will rely on funds received from our operating partnership to pay liabilities and distributions to our stockholders.

● We have not obtained an independent third-party appraisal of the interests or assets being contributed to us, and the consideration to be paid by us in our formation transactions was not negotiated on an arm's-length basis.

● There has been no public market for our common stock prior to this offering and an active trading market for our common stock may not develop following this offering.

● The market price and trading volume of shares of our common stock may be volatile following this offering.

● Increases in market interest rates may result in a decrease in the value of shares of our common stock.

● This offering is expected to be dilutive to earnings, and there may be future dilution to earnings related to shares of our common stock.

● We will incur significantly increased costs as a result of operating as a public company, and our management will be required to devote substantial time and attention to compliance efforts.

● Failure to qualify as a REIT would cause us to be taxed as a regular C corporation, which would substantially reduce funds available for distributions to stockholders.

● Complying with REIT requirements may cause us to forgo otherwise attractive opportunities or liquidate otherwise attractive investments.

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**Structure and Formation of Our Company**

**Our Operating Partnership**

We are the sole general partner of our Operating Partnership. Substantially all of our assets will be held by, and our operations will be conducted through JOSS REIT Holdings, LP, our Operating Partnership. Following the completion of this offering and the formation transactions, we will have a total 71.9% ownership interest in our Operating Partnership (74.1% if the underwriters exercise their option to purchase additional shares of our common stock in full). Our interest in our Operating Partnership will generally entitle us to share in cash distributions from, and in the profits and losses of, our Operating Partnership in proportion to our percentage ownership. We will generally have the exclusive power under the partnership agreement to manage and conduct the business and affairs of our Operating Partnership, subject to certain approval and voting rights of the limited partners, which are described more fully below in "Limited Partnership Agreement of Our Operating Partnership—General." Our board of directors will manage our business and affairs.

Beginning on and after the date that is 12 months after the issuance of the OP units, each limited partner of our Operating Partnership will have the right to require our Operating Partnership to redeem part or all of its OP units for cash, based upon the value of an equivalent number of shares of our common stock at the time of the redemption, or, at our election, shares of our common stock on a one-for-one basis, subject to certain adjustments and the restrictions on ownership and transfer of our stock set forth in our charter and described under the section entitled "Description of Our Capital Stock—Restrictions on Ownership and Transfer." Each redemption of OP units will increase our percentage ownership interest in our Operating Partnership and our share of its cash distributions and profits and losses. See "Limited Partnership Agreement of Our Operating Partnership — Redemption of OP Units."

**Formation Transactions**

Prior to completion of this offering and the formation transactions, our properties were owned and managed by JOSS Realty Partners B, LLC and its affiliates (collectively, "JOSS Realty"). We were formed as a Maryland corporation on April 15, 2025, and our Operating Partnership was formed as a Delaware limited partnership in , 2026. In connection with our formation, Mr. Botel has invested $1,000 in us for 100 shares of our common stock. Such shares will be repurchased by us at the closing of this offering for $1,000. We expect to effect the following formation transactions in substantially the form described below (the "formation transactions"), prior to, concurrently with or shortly after the completion of this offering.

● We will redeem the preferred equity holder in 55 Walkers Brook Drive Venture LLC (i.e., 55 Walkers Brook Holdco LLC) in full for cash, and the entity 55 Walkers Brook Drive Venture LLC will be dissolved. Pursuant to the terms of the Operating Agreement governing 55 Walkers Brook Drive Venture LLC, the company may optionally redeem the preferred equity holder for cash at any time, for an amount equal to the preferred holder's capital contribution, plus a 15% return, certain management fees, paydown of any amounts loaned by the preferred holder, and a make-whole amount equal to any amounts in excess of 140% of the holder's initial capital contribution divided by the sum of all distributions received prior to the date of redemption. We expect that the aggregate cash payment to the preferred holder will be approximately $7.1 million.

● Each of the property-owning entities 55 Walkers Brook Drive Owner, LLC, 165 Township Line Road Owner LLC, and Napa Square Owner NY LLC will be contributed to the Operating Partnership in exchange for OP units.

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● Investors in 55 Walkers Brook Drive Owner, LLC, 165 Township Line Road Owner LLC, and Napa Square Owner NY LLC will receive in-kind distributions of OP units based on their percentage ownership. In total, investors will receive an aggregate of 1,200,000 OP units in the exchange, or if such investors are not accredited investors at the time of merger, cash based on fair market valuations of the related properties. Following such contribution, each property-owning entity other than Napa Square Owner NY LLC will be dissolved.

● We will sell 3,000,000 shares of our common stock in this offering (or 3,450,000 shares if the underwriters exercise their option to purchase additional shares of our common stock in full).

● We will contribute to our Operating Partnership the net proceeds from this offering and receive 3,000,000 OP units (or 3,450,000 OP units if the underwriters exercise their option to purchase additional shares of our common stock in full), in exchange.

● We will have adopted the 2026 Equity Incentive Plan, under which we will grant cash and equity-based incentive awards to officers and employees in order to attract, motivate and retain talent.

The amount of cash and OP units that we will pay or issue in exchange for the properties in our initial portfolio was determined by management and not through arm's length negotiations with an independent third party. In determining the fair market value of our initial portfolio, management undertook a diligence and underwriting process that took into account, among other factors, market capitalization rates, net operating income, landlord obligations to fund future capital expenditures, lease duration, functionality and ability to release should a tenant not renew its lease, tenant creditworthiness and discount rates based on tenant creditworthiness, property location, property age, comparable sales information and capitalization rates for properties leased to tenants with similar credit profiles and lease durations, tenant operating performance and the fact that brokerage commissions would not be payable in connection with the formation transactions. No single factor was given greater weight than any other in valuing our initial portfolio. The value attributable to our initial portfolio does not necessarily bear any relationship to the value of any particular property within that portfolio. Furthermore, we did not obtain any third-party property appraisals for the properties in our initial portfolio or any other independent third-party valuations or fairness opinions in connection with the formation transactions. As a result, the consideration we have agreed to pay in connection with the formation transactions may exceed the fair market value of our initial portfolio.

The following table sets forth the total price to be paid for each property to be acquired, including the value of the OP Units being issued to current investors in those properties:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property** | **OP Units** | **Midpoint Price<br> Per Share** | **Total<br> Value of<br> OP Units Based<br> on Midpoint Price<br> Per Share** | **Cash<br> Payment for<br> Preferred Stock<br> Redemption** | **Amount** <br> **of Debt to<br> be Assumed (1)**  |
| 55 Walkers Brook | 480000 | $5.00 | $2400000 | $7064659 | $20646853 |
| 165 Township Line Road | 240000 | $5.00 | $1200000 |  | $7675449 |
| Napa Square | 480000 | $5.00 | $2400000 |  | $5931800 |

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(1) Balance as of September
 30, 2025. In December 2025, we paid an additional $2.0 million in principal with respect to
 the 165 Township Line Road loan.

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**Consequences of this Offering and the Formation Transactions**

The following chart sets forth information about our Company, our Operating Partnership, certain related parties and the ownership interests therein on a pro forma basis.

![](img_009.jpg)

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**Distribution Policy**

We will elect to qualify as a REIT for U.S. federal income tax purposes. To qualify as a REIT, we must distribute annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains. To the extent we satisfy the distribution requirement but distribute less than 100% of our REIT taxable income (determined without regard to the dividends paid deduction and including any net capital gains), we will be subject to U.S. federal corporate income tax on our undistributed taxable income. In addition, as a REIT, we will be required to pay a 4% nondeductible excise tax on the amount, if any, by which the distributions we make in a 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 prior years. For more information, see "U.S. Federal Income Tax Considerations." To satisfy the requirements to qualify as a REIT and to avoid paying U.S. federal income tax on our income, we intend to make quarterly distributions of all, or substantially all, of our REIT taxable income (including net capital gains) to our stockholders.

To the extent we are prevented by provisions of our financing arrangements or otherwise from distributing 100% of our net income or otherwise do not distribute 100% of our net income, we will be subject to U.S. federal income tax, and potentially excise tax, on the retained amounts. If our operations do not generate sufficient cash flow to enable us to pay our intended or required distributions, we may be required either to fund distributions from alternative sources, including working capital, borrowings, asset sales or equity capital, or reduce such distributions. Our actual results of operations will be affected by a number of factors, including the revenues we generate, our operating expenses, interest expense and unanticipated expenditures, among others.

**Implications of Being an Emerging Growth Company and a smaller reporting company**

We qualify as an emerging growth company as defined in the Jumpstart Our Business Startups Act ("JOBS Act") enacted in 2012. As an emerging growth company, we expect to take advantage of reduced reporting requirements that are otherwise applicable to public companies. These provisions include, but are not limited to:

● being permitted to present only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure in this prospectus;

● not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended ("Sarbanes-Oxley Act");

● reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statement, including the correlation between executive compensation and performance and comparisons of the chief executive officer's compensation to median employee compensation; and

● exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

We may take advantage of these provisions until the last day of our fiscal year following the fifth anniversary of the completion of this offering. However, if certain events occur prior to the end of such five-year period, including if we become a "large accelerated filer," our annual gross revenues exceed $1.235 billion (subject to adjustment for inflation) or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.

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The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. As an emerging growth company, we intend to take advantage of an extended transition period for complying with new or revised accounting standards as permitted by the JOBS Act. We have elected to take advantage of certain of the reduced disclosure obligations in this prospectus and in the registration statement of which this prospectus is a part and may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information in this prospectus and that we provide to our shareholders in the future may be different than what you might receive from other public reporting companies in which you hold equity interests.

We also qualify as a "smaller reporting company," under Rule 12b-2 of the Securities Exchange Act of 1934, as amended. We may continue to be a smaller reporting company after this offering if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue was less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited consolidated financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

**Restrictions on Ownership and Transfer of Our Common Stock**

Our charter, subject to certain exceptions, authorizes our board of directors to take such actions as are necessary or appropriate to allow us to qualify and to preserve our status as a REIT. Furthermore, our charter prohibits, with certain exceptions, the beneficial or constructive ownership by any person of more than 9.8% in value of the aggregate of the outstanding shares of our capital stock or more than 9.8% (in value or in number of shares, whichever is more restrictive) of the aggregate of the outstanding shares of our common stock. In addition, our charter contains various other restrictions on the ownership and transfer of our common stock and capital stock. Our board of directors, in its sole discretion, may exempt a person, prospectively or retroactively, and subject to such conditions and limitations as our board of directors may deem appropriate, from these ownership limits if certain conditions are satisfied. However, our board of directors may not grant an exemption from these ownership limits if such exemption would cause us to fail to qualify as a REIT. The ownership limits may delay or impede a transaction or a change of control that might be in your best interest. See "Description of Our Capital Stock—Restrictions on Ownership and Transfer."

**Our Tax Status**

We intend to elect to qualify to be taxed as a REIT under the Code, commencing with our taxable year ending December 31, 2026. We believe that as of such date we will have been organized and will have operated in a manner to qualify for taxation as a REIT for U.S. federal income tax purposes. To maintain REIT status, we must meet a number of organizational and operational requirements, including a requirement that we annually distribute to our stockholders at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains. See "U.S. Federal Income Tax Considerations."

**Corporate Information**

We were formed as a Maryland corporation on April 15, 2025. Our principal executive offices are located at 650 5th Avenue, Suite 2700, New York, New York 10019 and our telephone number is (212) 710-8193. Our website is https://www.jrpllc.com. The information found on, or otherwise accessible through, our website is not incorporated into, and does not form a part of, this prospectus or any other report or document we file with or furnish to the SEC.

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**The Offering**

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| | |
|:---|:---|
| Common stock offered by us | 3,000,000 shares (plus up to an additional 450,000 shares of our common stock that we may issue and sell upon the exercise in full of the underwriters' option to purchase additional shares). |
| Common stock to be outstanding after this offering | 3,000,000 shares<sup>(1)</sup> |
| Common stock and OP units to be outstanding after this offering (excluding OP units held directly or indirectly by us) and the formation transactions | 4,200,000 shares of common stock and OP units<sup>(1)(2)</sup> |
| Use of proceeds | We estimate that the net proceeds to us from this offering will be approximately $10.75 million, or $13.00 million if the underwriters exercise in full their option to purchase additional shares, after deducting underwriting discounts and commissions and other estimated expenses, in each case, based on an assumed initial public offering price of $5.00 per share, which is the mid-point of the price range set forth on the front cover of this prospectus. We will contribute the net proceeds from this offering to our operating partnership in exchange for OP units. We expect our operating partnership to use the net proceeds received from us to fund the cash payments in connection with the formation transactions, capital expenditures and the remainder for general corporate purposes. See "Use of Proceeds." |
| Risk factors | Investing in our common stock involves risks. You should carefully read and consider the information set forth under the heading "Risk Factors" beginning on page 26 and other information included in this prospectus before investing in our common stock. |
| Symbol | "JOSS" |

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(1) Includes 3,000,000 shares of our common stock to be issued in this offering.
 Excludes (i) 450,000 shares of our common stock issuable upon the exercise in full of the underwriters' option to purchase
 additional shares and (ii) 325,500 shares of our common stock issuable in the future under the JOSS Realty REIT, Inc. 2026 Equity
 Incentive Plan (the "2026 Equity Incentive Plan") (such number assumes full participation in this offering from existing
 investors and that the underwriters exercise the full over-allotment option), which includes up to 263,655 shares of restricted stock
 issued to certain of our directors and officers in connection with this offering, as more fully described in "Executive and
 Director Compensation—2026 Equity Incentive Plan."

(2) Includes 1,200,000 OP units to be issued in the formation transactions. OP units are redeemable for cash or, at our election, shares of our common stock on a one-for-one basis, subject to adjustment in certain circumstances, beginning twelve months after the original issuance of such units.

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**Summary Historical and Pro Forma Combined Consolidated Financial Data**

The following summary financial data should be read in conjunction with our audited financial statements and the related notes, our unaudited condensed consolidated financial statements and related notes, our unaudited pro forma balance sheet, and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are included elsewhere in this prospectus.

The following tables sets forth summary financial data (i) on a historical combined basis for our predecessor and (ii) the unaudited pro forma balance sheet of JOSS Realty REIT, Inc. as of September 30, 2025. Our predecessor, refers to certain properties controlled by JOSS Realty Partners B, LLC and its affiliates and is comprised of certain entities and their consolidated subsidiaries that own interests in three office properties that we refer to as 55 Walkers Brook, 165 Township Line Road, and Napa Square. We refer to these entities and their subsidiaries as the "initial portfolio." Each of the ownership entities currently owns, directly or indirectly, one office property. Upon completion of this offering and the formation transactions, we will acquire the initial portfolio and assume the ownership and operation of our accounting predecessor's business. Although we have presented historical information for JOSS Realty REIT, Inc. for the period from April 15, 2025 (inception) to September 30, 2025 and as of September 30, 2025, we have not included this information below as we believe that a discussion of the results of JOSS Realty REIT, Inc. would not be meaningful.

The historical unaudited condensed combined consolidated balance sheet information as of September 30, 2025 of our accounting predecessor, the unaudited condensed combined consolidated statements of operations for the nine months ended September 30, 2025 and 2024 of our accounting predecessor, the combined consolidated balance sheet information as of September 30, 2025, December 31, 2024 and December 31, 2023 of our accounting predecessor and the combined consolidated statements of operations for the years ended December 31, 2024 and 2023 of our accounting predecessor have been derived from the historical combined consolidated financial statements and the unaudited condensed combined consolidated financial statements included elsewhere in this prospectus and include all adjustments consisting of normal recurring adjustments, which management considers necessary for a fair presentation of the historical financial statements for such periods in accordance with GAAP.

Our unaudited pro forma balance sheet data as of September 30, 2025 has been derived from the unaudited pro forma balance sheet included elsewhere in this prospectus. Our unaudited pro forma balance sheet data assume the completion of this offering and the formation transactions had occurred on September 30, 2025. Our unaudited pro forma financial information is not necessarily indicative of what our actual financial position would have been as of the date indicated, nor does it purport to represent our future financial position.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | | | **December 31,** | **December 31,** |
|  | **September 30,**<br> **2025** | **Pro Forma<br> as of<br> September 30,**<br> **2025<sup>(1)</sup>** | **2024** | **2023** |
| **Balance Sheet Data:** |  |  |  |  |
| Cash | 782607 | 6561152 | 1204717 | 1889848 |
| Total Assets | $45069277 | $50848036 | $46898635 | $45026149 |
| Total Liabilities | 43165827 | 36127643 | 42960042 | 40931069 |
| Total members' equity | $1903450 | $14720393 | $3938593 | $4095080 |

---

(1) Assumes the full exercise
 of the underwriter's option to purchase up to 450,000 shares of common stock.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the<br> nine months ended<br> September 30,** | **For the<br> nine months ended<br> September 30,** | **For the<br> years ended<br> December 31,** | **For the<br> years ended<br> December 31,** |
|  | **2025** | **2024** | **2024** | **2023** |
| **Income Statement Data** |  |  |  |  |
| Total revenues | $4064899 | 4671263 | 6371871 | 6733419 |
| Total operating expenses | 3875441 | 3776399 | 4970044 | 5583242 |
| Total other expenses | 2224601 | 1880525 | 2746184 | 2032603 |
| Net loss | $(2035143) | $(985661) | $(1344357) | $(882426) |

---

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**RISK FACTORS**

*Investing in our common stock involves risks. Before you invest in our common stock, you should carefully consider the risk factors below together with all of the other information included in this prospectus. If any of the risks discussed in this prospectus were to occur, our business, financial condition, liquidity, results of operations and prospects and our ability to service our debt and make distributions to our stockholders could be materially and adversely affected (which we refer to collectively as "materially and adversely affecting us" or having "a material adverse effect on us" and comparable phrases), the market price of our common stock could decline significantly and you could lose all or part of your investment in our common stock. Some statements in this prospectus, including statements in the following risk factors, constitute forward-looking statements. Please refer to the section in this prospectus entitled "Special Note Regarding Forward-Looking Statements."*

**Risks Related to Our Business and Properties**

***Our financial situation creates doubt whether we will continue as a going concern.***

As described in the Notes to the Financial Statements included in this prospectus, there is a substantial doubt about our ability to continue as a going concern. For the years ended December 31, 2024 and December 31, 2023, the Company had net losses of $1.3 million and $0.9 million, respectively. For the nine months ended September 30, 2025 and September 30, 2024, the Company had net losses of $2.0 million and $1.0 million, respectively. These conditions raise substantial doubt about our ability to continue as a going concern. There can be no assurances that we will be able to achieve a level of revenues adequate to generate sufficient cash flow from operations or additional financing through private placements, public offerings and/or bank financing necessary to support our working capital requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient, we will need to raise additional working capital. No assurance can be given that additional financing will be available, or if available, that we will be able to secure any such financing on acceptable terms. These conditions raise substantial doubt about our ability to continue as a going concern. If adequate working capital is not available, we may be forced to discontinue operations.

***Multi-tenant office properties involve significant risks of tenant default and tenant vacancies, which could materially and adversely affect us.***

Our portfolio consists primarily of multi-tenant leased office properties and we are dependent on our tenants for substantially all of our revenue. As a result, our success depends on the financial stability of our tenants. The ability of our tenants to meet their obligations to us, including their obligations to pay rent, maintain certain insurance coverage, pay real estate taxes, and maintain the properties in a manner so as not to jeopardize their operating licenses or regulatory status depends on the performance of their business and industry, as well as general market and economic conditions, which are outside of our control. At any given time, any tenant may experience a downturn in its business that may weaken its operating results or the overall financial condition of individual properties or its business as whole. As a result, a tenant may fail to make rental payments when due, decline to extend a lease upon its expiration, become insolvent, or declare bankruptcy. The financial failure of, or default in payment by, any tenant under its lease is likely to cause a significant or complete reduction in our rental revenue from that property and a reduction in the value of the property. We may also experience difficulty or a significant delay in re-leasing or selling such property. The occurrence of one or more tenant defaults could materially and adversely affect us.

***The weighted average remaining term of our leases is 4.7 years, excluding renewal options, which will require us to undertake more re-leasing efforts that could materially and adversely affect us.***

The weighted average lease term ("WALT") remaining term of our leases is 4.7 years, excluding renewal options, which is shorter than some other publicly-traded multi-tenant office REITs. Because any of our tenants may not renew their lease, we anticipate our rental revenues may be affected by declines in market rental rates more quickly than if our leases were for longer terms. Additionally, short-term leases may result in the turnover of our tenants sooner than our competitors. Consequently, we may need to undertake re-leasing efforts sooner and at shorter intervals than our competitors. The associated costs with these re-leasing efforts, which may, among other things, include repositioning costs, repair costs and re-tenanting costs, and the time our management team spends on the foregoing, may materially and adversely affect us.

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***We may not be able to achieve growth through acquisitions at a rate that is comparable to our historical results, which could materially and adversely affect us.***

Our growth strategy depends significantly on acquiring new properties. Our ability to continue to grow requires us to identify and complete acquisitions that meet our investment criteria and depends on general market and economic conditions.

Changes in the volume of real estate transactions, the availability of acquisition financing, capitalization rates, interest rates, competition, market conditions or other factors may negatively impact our acquisition opportunities in 2025 and beyond. If we are unable to achieve growth through acquisitions at a rate that is comparable to our historical results, it could materially and adversely affect us. Furthermore, our acquisition volume has not always been consistent, nor can we guarantee it will be consistent in the future. As a result, our acquisition results may not meet investors' expectations and could materially and adversely affect us.

***We may not achieve the total returns we expect from our future acquisitions, which could materially and adversely affect us.***

As we pursue our growth strategy, we may encounter increasingly difficult market conditions that place downward pressure on the total returns we can achieve on our investments. In addition, as part of our strategy, we may pursue investments with lower capitalization rates, which are safer but more expensive investments. Accordingly, our future acquisitions may have lower returns on equity than our previous acquisitions. To the extent that our future growth is achieved through acquisitions that yield lower returns, it could materially and adversely affect us. In addition, if we fund future acquisitions with equity issuances, the dilutive impact could outweigh the benefits of acquisitions that achieve lower returns, which also could materially and adversely affect us.

***We may not be able to obtain acquisition financing or obtain other capital from third-party sources on favorable terms or at all, which could materially and adversely affect our growth prospects and our business.***

In order to qualify as a REIT, we are required under the Code, among other things, to distribute annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, we will be subject to income tax at the corporate rate to the extent that we distribute less than 100% of our REIT taxable income including any net capital gain. Because of these distribution requirements, we may not be able to fund future capital needs, including any necessary acquisition financing, or repay debt obligations from operating cash flow. Consequently, we expect to rely, in part, on third-party sources to fund our capital needs. We may not be able to obtain the financing on favorable terms or at all. Our access to third-party sources of capital depends, in part, on:

● general market conditions, including, but not limited to, credit availability, marketplace liquidity, inflation and increasing and/or fluctuating interest rates;

● the market's perception of our growth potential;

● our current cash and debt levels;

● our current and expected future earnings;

● the composition and performance of our portfolio;

● our cash flow and cash distributions; and

● the market price per share of our common stock.

If we cannot obtain capital from third-party sources, we may not be able to acquire properties when strategic opportunities exist, meet the capital and operating needs of our existing office properties, or satisfy our debt service obligations, any of which could materially and adversely affect us.

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***We face increasing competition for acquiring office properties from publicly traded REITs and companies, private institutional investors and business operators that may or may not have greater resources than we do, which could materially and adversely affect us.***

The market for office properties in the United States is highly competitive. We are facing increasing competition for office properties from a diverse group of other entities engaged in real estate investment activities, including publicly traded and privately held REITs, public companies, private institutional real estate investors, sovereign wealth funds, banks, mortgage bankers, insurance companies, investment banking firms, lenders, specialty finance companies, individuals, family offices and other entities. In addition, we face competition for acquisition opportunities from business operators that prefer to own, rather than lease space. Some of our competitors are larger and may have considerably greater financial, technical, leasing, underwriting, marketing, and other resources than we do. Some competitors may have a lower cost of capital and access to funding sources that may not be available to us. In addition, other competitors may have higher risk tolerances or different risk assessments and may not be subject to the same operating constraints, including maintaining REIT status or maintaining lower yield requirements. This competition may result in fewer acquisitions, higher prices, lower yields, less desirable office properties, and acceptance of greater risk. As a result, we cannot provide any assurance that we will be able to successfully execute our growth strategy. Any failure to grow through acquisitions as a result of the increasing competition we face could materially and adversely affect us.

***We face significant competition for tenants, which could materially and adversely affect us, including our occupancy, rental rates, and results of operations.***

We compete for tenants to occupy our office properties in all of our markets with numerous developers, owners, and operators of office properties, as well as owner occupied businesses, many of which own office properties in the same markets in which our office properties are located. If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose existing or potential tenants or we may be pressured to reduce our rental rates or to offer more substantial rent abatements, tenant improvements, early termination rights, or below-market renewal options to retain tenants when our leases expire. Competition for tenants could decrease the rental rates we achieve and/or negatively impact the occupancy rates of our office properties, which could materially and adversely affect us.

***The departure of any of our key personnel with long-standing business relationships could materially and adversely affect us.***

Our success and our ability to manage anticipated future growth depend, in large part, upon the efforts of our key personnel, particularly Mr. Botel, our Chief Executive Officer, and Mr. McCulley, our Chief Operating Officer. Each has extensive market knowledge and relationships and exercise substantial influence over our operational, financing, acquisition, and disposition activity. If we lost either of their services, our network of external relationships and resources would be materially diminished.

The departure of either of our Chief Executive Officer or Chief Operating Officer, or any other member of our senior management team, or our inability to attract and retain highly qualified personnel, could adversely affect our business, diminish our investment opportunities, and weaken our relationships with lenders, business partners, existing and prospective tenants, and industry personnel, which could materially and adversely affect us.

***No member of our management team has prior experience in operating a public company, which could materially and adversely affect us.***

No member of our management team has prior experience in managing a publicly traded company. As such, our management team may encounter difficulties in successfully managing our business in a public company environment, including, among other things, effectively complying with our reporting and other obligations under federal securities laws and other regulations and in connection with operating as a public company. Our management team's lack of prior experience operating a public company could materially and adversely affect us.

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***Our portfolio is concentrated in certain states and MSAs and any adverse developments and/or economic downturns in these geographic markets could materially and adversely affect us.***

As of September 30, 2025, all of our ABR came from commercial office properties in certain states and MSAs: Philadelphia, Northern California, and Boston. These geographic concentrations could adversely affect our operating performance if conditions become less favorable in any of the states or markets within which we have a concentration of office properties. We can provide no assurance that any of our markets will grow, will not experience adverse developments, or that underlying real estate fundamentals will be favorable to owners and operators of service-oriented businesses that constitute the majority of our tenants. A downturn in the economy in the states or regions in which we have a concentration of commercial office properties, or markets within such states or regions including MSAs, or a slowdown in the demand for our tenants' businesses caused by adverse economic, regulatory, or other conditions could adversely affect our tenants' operating businesses in those states, regions or MSAs and impair their ability to pay rent to us, which, in turn could materially and adversely affect us.

***We may be unable to renew leases, re-lease multi-tenant office properties as leases expire, or lease vacant spaces on favorable terms or at all, which, in each case, could materially and adversely affect us.***

Our results of operations depend on our ability to continue to successfully lease our multi-tenant office properties, including renewing expiring leases, re-leasing office properties as leases expire, leasing vacant space, optimizing our tenant mix, or leasing office properties on more economically favorable terms. As of September 30, 2025, 4 leases representing approximately 1.5% of our ABR are scheduled to expire during 2025 and 6 leases representing approximately 8.1% of our ABR are scheduled to expire during 2026. Current tenants may decline, or may not have the financial resources available, to renew their current leases, and we cannot assure you that leases that are renewed will have terms that are as economically favorable to us as the expiring lease terms. If our tenants do not renew their leases as they expire, we cannot provide any assurance that we will be able to find new tenants at rental rates equal to or above the current average rental rates or that substantial rent abatements, leasing commissions, tenant improvement allowances, early termination rights, or below-market renewal options will not be required to attract new tenants. We may experience significant costs in connection with re-leasing a significant number of our office properties, which could materially and adversely affect us. Any failure to renew leases, re-lease office properties as leases expire, or lease vacant space could materially and adversely affect us.

***Our business is subject to significant re-leasing risk, particularly for specialty properties that are suitable for only one use.***

The loss of a tenant, either through lease expiration or tenant bankruptcy or insolvency, may require us to spend significant amounts of capital to renovate the property before it is suitable for a new tenant and cause us to incur significant costs. In particular, our specialty properties are designed for a particular type of tenant or tenant use. If tenants of specialty properties do not renew or default on their leases, we may not be able to re-lease properties without substantial capital improvements, which may be significant. Alternatively, we may not be able to re-lease or sell the property without such improvements or may be required to reduce the rent or selling price significantly. This potential illiquidity may limit our ability to modify quickly our portfolio in response to changes in economic or other conditions, including tenant demand. Such occurrences could materially and adversely affect us.

***The costs of environmental contamination or other environmental, health or safety liabilities related to environmental laws may materially and adversely affect us.***

There may be known or unknown environmental liabilities associated with properties we previously owned or operated, currently own or operate, or may acquire in the future. Under various federal, state, and local environmental laws and regulations, as a current or former owner or operator of real property, we may be liable for costs and damages resulting from environmental matters, including the presence or release of hazardous or toxic substances, waste, or petroleum products at, on, in, under or migrating from such property, including costs to investigate, monitor, report or clean up such contamination and liability for personal injury, property damage, and/or harm to natural resources. Certain uses of some properties may have a heightened risk of environmental, health and safety liability because of the hazardous materials used in performing services on those properties, such as industrial properties or auto parts and auto service businesses using petroleum products, paint, machine solvents, and other hazardous materials. We typically undertake customary environmental diligence prior to our acquisition of any property, including obtaining Phase I environmental site assessments. The Phase I environmental site assessments evaluate the property condition of such properties using record reviews, visual inspections, and interviews, and therefore are limited in scope and may not reveal all environmental conditions affecting a property. Therefore, there could be undiscovered environmental, health and safety liabilities, including contamination, on the properties we own.

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The known or potential presence of hazardous substances on a property may adversely affect our ability to sell, lease, or improve the property, or to borrow using the property as collateral. In addition, environmental laws may create liens on contaminated properties in favor of the government or private third parties for damages and costs it incurs to address such contamination. Moreover, if contamination is discovered on our properties, environmental laws may impose restrictions on the manner in which they may be used or which businesses may be operated, and these restrictions may require substantial expenditures.

Our environmental, health and safety liabilities may include property and natural resources damage, personal injury (including exposure), investigation, monitoring, reporting, and clean-up costs, among other potential environmental, health and safety liabilities. These costs could be substantial. Although we may obtain insurance for such liabilities for certain properties that are deemed to warrant coverage, our insurance may be insufficient to address any particular environmental or health and safety situation and we may be unable to continue to obtain insurance for these matters, at a reasonable cost or at all, in the future. If our environmental liability insurance is inadequate, we may become subject to material losses for environmental, health and safety liabilities. Our ability to receive the benefits of any environmental liability insurance policy will depend on the financial stability of our insurance company and the position it takes with respect to our insurance policies. If we were to become subject to significant environmental, health or safety liabilities, we could be materially and adversely affected.

Although our leases generally require our tenants to comply with environmental law and provide that the lessee will indemnify us for any loss or expense we incur as a result of the tenant's violation of environmental law or the presence, use or release of hazardous materials on our property attributable to the lessee, we could nevertheless be subject to liability, as a current or previous owner of real estate, including joint and several and strict liability, by virtue of our ownership interest and may be required to remove or remediate hazardous or toxic substances on, under, or in a property. Further, there can be no assurance that our tenants, or the guarantor of a lease, could or would satisfy their indemnification obligations under their leases. We may face liability regardless of our knowledge of the contamination, the timing of the contamination, the cause of the contamination, or the party responsible for the contamination of the property. The cost of compliance or defense against claims from a contaminated property could materially and adversely affect us.

***Difficult conditions in commercial real estate markets, or in related financial markets and the economy generally, including market volatility, inflation, the effects of health epidemics and outbreaks of contagious diseases, and geopolitical tensions, may cause us to experience losses, and there is no assurance that these conditions will improve in the near future.***

Our results of operations are materially affected by conditions in the commercial real estate markets, the financial markets and the economy generally. Difficult market conditions, as well as inflation, energy costs, geopolitical issues, health epidemics and outbreaks of contagious diseases, such as the outbreak of COVID-19, unemployment and the availability and cost of credit, can contribute to increased volatility and diminished expectations for the economy and markets. The U.S. commercial real estate market has been severely affected as employers in all of our markets and submarkets implemented remote work guidelines in response to COVID-19 and many of such companies have been slow to require a return to the office workplace. As a result, many commercial landlords experienced lease defaults, rent abatement requests, tenant vacancies and significant difficulty in locating new tenants, and there is no assurance that these conditions have fully stabilized or that existing conditions will not worsen. Further, disruptions in the mortgage markets and broader financial markets, including the occurrence of unforeseen or catastrophic events such as the effects of COVID-19 or other widespread health emergencies, geopolitical tensions or terrorist attacks, could adversely affect our business and operations. Any such disruption could adversely impact our ability to raise capital, cause increases in lease defaults and decreases in the value of our assets, cause continued interest rate volatility and movements that could make obtaining financing or refinancing our debt obligations more challenging or more expensive, and could lead to operational difficulties that could impair our ability to manage our business.

***Our business could be harmed if new trade protections are imposed or existing protections become more burdensome.***

The United States and other may impose additional quotas, duties, tariffs, or other measures, or may adversely adjust prevailing quota, duty, or tariff levels. Such actions could have an adverse effect on our financial statements for the period or periods for which the applicable final determinations are made. Countries impose, modify, and remove tariffs and other trade measures in response to a diverse array of factors, including global and national economic and political conditions, which make it impossible for us to predict future developments regarding tariffs, customs, and other trade measures. Trade protections, including tariffs, quotas, safeguards, duties, and customs restrictions, could increase the cost of running our business and may require us to modify our current business practices, any of which could harm our business, financial condition, and results of operations.

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***Vacancies in our properties may make it difficult to sell or re-lease.***

Our operating office properties were approximately 72% leased at September 30, 2025. Our 10 largest customers account for a meaningful portion of our revenues. Our operating revenues are dependent upon entering into leases with, and collecting rents from, our tenants. Tenants whose leases are expiring may want to decrease the space they lease and/or may be unwilling to continue their lease. When leases expire or are terminated, replacement tenants may not be available upon acceptable terms and market rental rates may be lower than the previous contractual rental rates. Also, our tenants may approach us for additional concessions in order to remain open and operating. The granting of these concessions may adversely affect our results of operations and cash flows to the extent that they result in reduced rental rates, additional capital improvements, or allowances paid to, or on behalf of, the tenants.

In addition, one or more of our properties may incur a vacancy by the continued default of a tenant under its lease, whether as a result of the recent downturn in certain of our markets and submarkets or economic conditions more generally. Certain of our properties may be specifically suited to the particular needs of a tenant (e.g., a retail bank branch), and major renovations and expenditures may be required in order for us to re-lease vacant space for other uses. We have recently had significant difficulty obtaining new tenants for vacant space we have in our properties. If a vacancy continues for a long period of time, we may suffer reduced revenues, impacting our ability to make distributions to our stockholders. In addition, the resale value of a property could be diminished because the market value of a particular property will depend principally upon the value of the leases of such property.

***Our properties may be subject to impairment charges.***

We will periodically evaluate our properties for impairment indicators. The judgment regarding the existence of impairment indicators is based on factors such as market conditions, tenant performance and legal structure. For example, the early termination of, or default under, a lease by a tenant may lead to an impairment charge. If we determine that an impairment has occurred, we would be required to make an adjustment to the net carrying value of the property, which could have a material adverse effect on our results of operations in the period in which the impairment charge is recorded.

***Our business is dependent upon our tenants successfully operating their businesses, and their failure to do so could materially and adversely affect us.***

To a large extent, the success of our commercial real estate business is dependent upon the performance of each property's respective tenants. The financial performance of any one of our tenants is dependent on the tenant's individual business, its industry and, in many instances, the performance of a larger business network that the tenant may be affiliated with or operate under. The financial performance of any one of our tenants could be adversely affected by poor management, unfavorable economic conditions in general, changes in consumer trends and preferences that decrease demand for a tenant's products or services or other factors, including the impact of a global pandemic such as COVID-19 which affects the United States, over which neither they nor we have control.

At any given time, any tenant may experience a decline in its business that may weaken its operating results or the overall financial condition of individual properties or its business as a whole. Any such decline may result in our tenant failing to make rental payments when due, requesting a rent abatement, declining to extend a lease upon its expiration, delaying occupancy of our property or the commencement of the lease or becoming insolvent or declaring bankruptcy. We depend on our tenants to operate their businesses at the properties we own in a manner which generates revenues sufficient to allow them to meet their obligations to us, including their obligations to pay rent, maintain certain insurance coverage, pay real estate taxes, make repairs and otherwise maintain our properties. The ability of our tenants to fulfill their obligations under our leases may depend, in part, upon the overall profitability of their operations. Cash flow generated by certain tenant businesses may not be sufficient for a tenant to meet its obligations to us pursuant to the applicable lease. We could be materially and adversely affected if a tenant representing a significant portion of our operating results or a number of our tenants were unable to meet their obligations to us.

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***We could face potential adverse effects from tenant defaults, bankruptcies or insolvencies.***

The bankruptcy of our tenants may adversely affect the income generated by our properties. If one of our tenants files for bankruptcy, we generally cannot evict the tenant solely because of such bankruptcy. A bankruptcy court could authorize a bankrupt tenant to reject and terminate its lease with us. In such a case, our claim against the tenant for unpaid and future rent would be subject to a statutory cap that might be substantially less than the remaining rent actually owed under the lease, and it is unlikely that a bankrupt tenant would pay full amounts owed under the lease. Any shortfall resulting from the bankruptcy of one or more of our tenants could adversely affect our cash flow and results of operations.

***Our reliance on certain significant tenants may have a negative impact on our results of operations or financial condition if such tenants are unable or unwilling to pay rent or decide to vacate the premises.***

As of September 30, 2025, our top 10 tenants represented 69% of our annualized base rental revenues with our largest single tenant accounting for 19% of our annualized base rental revenues. The inability or refusal of any of our significant tenants to pay rent or a decision by a significant tenant to vacate their premises prior to, or at the conclusion of, their lease term could have a significant negative impact on our results of operations or financial condition if a suitable replacement tenant is not secured in a timely manner.

For the year ended December 31, 2024 and the nine months ended September 30, 2025, 100% of our net operating income for properties owned was derived from the Northeast Corridor area. Any adverse economic conditions impacting Northeast Corridor could adversely affect our overall results of operations and financial condition.

***Actions of our joint venture partners could reduce the returns on our joint venture investments and decrease your overall return.***

We have entered into joint ventures or similar structures and may enter into additional joint ventures to acquire or improve properties. Such investments may have the potential risk of impasses on decisions, such as a sale, because neither we nor the co-venturer would have full control over such joint venture. In addition, to the extent our participation represents a minority interest, a majority of the participants may be able to take actions which are not in our best interests because of our lack of full control. Disputes between us and co-venturers may result in litigation or arbitration that would increase our expenses and prevent our officers and/or directors from focusing their time and effort on our business. Consequently, actions by or disputes with co-venturers might result in subjecting properties owned by the joint venture to additional risk. In addition, we may in certain circumstances be liable for the actions of our co-venturers.

In particular, we hold a 26.6% undivided interest in the Napa Square property pursuant to a tenancy-in-common agreement, or TIC Agreement. Per the TIC Agreement, all tenants-in-common hold an individual, undivided ownership interest in the property. The remaining tenants-in-common collectively have a controlling interest. However, individually, they are unable to unilaterally direct decisions regarding the management, operation, or disposition of Napa Square. Our limited ability to influence key decisions may adversely affect our investment, including our ability to implement strategic initiatives, respond to market conditions, or resolve disputes. Furthermore, actions taken by the other co-owners, or disagreements among co-owners, could negatively impact the value, performance, or liquidity of our interest in Napa Square. Consequently, there can be no assurance that our objectives with respect to this property will be achieved, and our returns from this investment may be adversely affected.

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**Risks Related to Investments in Real Estate**

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

Our core business is the ownership of commercial real estate that is leased on a long-term basis to businesses in the healthcare, restaurant, service, office, and retail sectors. Accordingly, our performance is subject to risks generally attributable to the ownership of commercial real property, including:

● inability to collect rents from tenants due to financial hardship, including bankruptcy, financial difficulties, or lease defaults by tenants;

● changes in global, national, regional, or local economic, demographic, or real estate market conditions in the markets in which we operate, including the supply and demand for single-tenant space in the healthcare, restaurant, service, office, and retail sectors;

● increased competition for real property investments targeted by our investment strategy;

● changes in consumer trends and preferences that affect the demand for products and services offered by our tenants;

● inability to lease or sell properties upon expiration or termination of existing leases and renewal of leases at lower rental rates;

● the subjectivity of real estate valuations and changes in such valuations over time;

● the illiquid nature of real estate compared to most other financial assets;

● changes in laws, government rules, regulations, and fiscal policies, including changes in tax, real estate, environmental, and zoning laws;

● changes in interest rates and availability of financing, including changes in the terms of available financing such as more conservative loan-to-value requirements and shorter debt maturities;

● unexpected expenditures relating to physical or weather-related damage to properties;

● the potential risk of functional obsolescence of properties over time;

● acts of terrorism and war;

● acts of God and other factors beyond our control; and

● competition from other properties.

The factors described above are out of our control, and we are unable to predict future changes in such factors. Any negative changes in these factors may cause the value of our real estate to decline, which could materially and adversely affect us.

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***Global and U.S. financial markets and economic conditions may materially and adversely affect us.***

Our results of operations are sensitive to changes in the overall economic conditions that impact our tenants' financial condition and leasing practices and a downturn in the economy could cause consumers to reduce their discretionary spending, which could result in tenant bankruptcies or otherwise have an adverse impact on our tenants' ability to successfully manage their businesses and pay us amounts due under our lease agreements, thereby materially and adversely affecting us. Accordingly, adverse economic conditions such as high unemployment levels, an increase in interest rates, a decrease in available financing, high inflation, labor and workforce shortages, supply chain issues, tax rates, and fuel and energy costs may have an impact on the results of operations and financial conditions of our tenants. During periods of economic slowdown or recession, rising interest rates and declining demand for real estate may result in a general decline in rents or an increased incidence of defaults under existing leases. A lack of demand for office properties could adversely affect our ability to maintain our current tenants and gain new tenants, which may affect our growth and results of operations. Accordingly, a decline in economic conditions could materially and adversely affect us.

***Our real estate investments are illiquid, which could materially and adversely affect us, including our financial condition and cash flows.***

Because real estate investments are relatively illiquid, our ability to adjust our portfolio promptly in response to economic, financial, investment, or other conditions may be limited. Return of capital and realization of gains, if any, from an investment generally will occur upon disposition or refinancing of the underlying property. We may be unable to realize our investment objective by sale, other disposition, or refinancing at attractive prices within any given period of time, or we may otherwise be unable to complete any exit strategy. In particular, these risks could arise from weakness in or even the lack of an established market for a property, changes in the financial condition or prospects of prospective purchasers, changes in national or international economic conditions, and changes in laws, regulations, or fiscal policies of the jurisdiction in which the property is located. Further, certain significant expenditures generally do not change in response to economic or other conditions, such as (i) debt service, (ii) real estate taxes, and (iii) operating and maintenance costs. The inability to dispose of a property at an acceptable price or at all, as well as the combination of variable revenue and relatively fixed expenditures may result, under certain market conditions, in reduced earnings and could materially and adversely affect us, including our financial condition and cash flows.

***Inflation in the United States is expected to continue at an elevated level in the near- to medium-term, which may have an adverse impact on the valuation of our investments.***

Heightened competition for workers, supply chain issues, the relocation of foreign production and manufacturing businesses to the U.S., and rising energy and commodity prices have contributed to increasing wages and other economic inputs. Inflation can negatively impact the profitability of real estate assets with long-term leases that do not provide for short-term rent increases or that provide for rent increases with a lower annual percentage increase than inflation. Continued inflation, particularly at higher levels, may have an adverse impact on the performance and value of our properties. During times when inflation is greater than the increases in rent provided by many of our leases, rent increases will not keep up with the rate of inflation. Increased costs may have an adverse impact on our tenants if increases in their operating expenses exceed increases in revenue, which may adversely affect the tenants' ability to pay rent owed to us, which in turn could materially and adversely affect us.

***Natural disasters, terrorist attacks, other acts of violence or war, or other catastrophic events could materially and adversely affect us.***

Natural disasters, terrorist attacks, other acts of violence or war, or other catastrophic events (*e.g.*, hurricanes, floods, earthquakes, or other types of natural disasters or wars or other acts of violence) could cause damage to our properties, materially interrupt our business operations (or those of our tenants), cause consumer confidence and spending to decrease, or result in increased volatility in the U.S. and worldwide financial markets and economy. Such occurrences also could result in or prolong an economic recession in the United States. We own properties in regions that have historically been impacted by natural disasters and it is probable such regions will continue to be impacted by such events. If a disaster occurs, we could suffer a complete loss of capital invested in, and any profits expected from, the affected properties. Any of these occurrences could materially and adversely affect us.

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***Disruptions in the financial and banking sectors may adversely impact our access to capital and our cost of borrowing, which could adversely affect us, our business or our results of operations.***

We finance the acquisition of certain of our commercial properties with credit facilities and other financing arrangements. Disruptions and uncertainty in the financial and banking sectors, including due to recent regional bank failures and decreased consumer confidence in the banking system, may hinder our ability to access capital on reasonable terms or at all. The U.S. and global financial and banking sectors have experienced periods of increased turmoil and volatility in the recent past and may experience similar periods of disruption in the future due to factors beyond our control. Such periods of increased turmoil and volatility may adversely impact liquidity in the financial markets and make financings less attractive or, in some cases, unavailable. If our financing counterparties become capital constrained, tighten their lending standards or become insolvent, they may be unable or unwilling to fulfill their commitments to us. Several of our financing counterparties are smaller regional banks, and a material disruption to the banking system and financial markets could result in liquidity issues disproportionally affecting such lenders, which could adversely impact our access to capital and our cost of borrowing and adversely affect us, our business or our results of operations.

***Recent market conditions may make it more difficult to analyze potential opportunities for our portfolio of properties.***

Our success will depend, in part, on our ability to effectively analyze potential acquisition opportunities in order to assess the level of risk-adjusted returns that we should expect from any particular investment. To estimate the value of a particular property, we may use historical assumptions that may or may not be appropriate during the recent downturn in the real estate market and general economy. To the extent that we use historical assumptions that are inappropriate under current market conditions, we may overpay for a property or acquire an asset that we otherwise might not acquire, which could have a material and adverse effect on our results of operations and our ability to make distributions to our stockholders.

***Risks related to climate change could have a material adverse effect on our results of operations.***

The physical effects of climate change could have a material adverse effect on our properties, operations, and business. To the extent climate change causes changes in weather patterns or severity, our markets could experience increases in storm intensity (including floods, fires, tornadoes, hurricanes, droughts, or ice storms), rising sea levels, and changes in precipitation, temperature, air quality, and quality and availability of water. Over time, these conditions could result in physical damage to, or declining demand for, our properties or our inability to operate the buildings efficiently or at all. Climate change may also indirectly affect our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of required resources, including energy, other fuel sources, water, and waste removal services, and increasing the risk and severity of floods, fires, tornadoes, hurricanes, droughts, ice storms, and earthquakes at our properties. Should the impact of climate change be severe or occur for lengthy periods of time, our financial condition or results of operations could be adversely impacted. In addition, compliance with new or more stringent laws or regulations or stricter interpretations of existing laws may require material expenditure by us. For example, various federal, state, and local laws and regulations have been, or may be, implemented to mitigate the effects of climate change caused by greenhouse gas emissions. Among other things, "green" building codes may seek to reduce emissions through the imposition of standards for design, construction materials, water and energy usage and efficiency, and waste management. Such codes could require us to make improvements to our existing properties, increase the costs of maintaining or improving our existing properties or developing new properties, or increase taxes and fees assessed on us or our properties. Expenditures required for compliance with such codes may affect our cash flow and results of operations. Additionally, although we pursue a sustainability strategy, new approaches and trends regarding building resiliency emerge from time to time in this rapidly evolving focus area. Our approaches and priorities may differ from those of our peers, and the perception of the public or investors of these differences may adversely impact our portfolio attractiveness of our ability to lease space at competitive rates.

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***Our costs of compliance with laws and regulations may require us or our tenants to make unanticipated expenditures that could reduce the investment return of our stockholders.***

All real property and the operations conducted on real property are subject to numerous federal, state, and local laws and regulations. We cannot predict what laws or regulations will be enacted in the future, how future laws or regulations will be administered or interpreted, or how future laws or regulations will affect us or our properties. For example, we may be required to make substantial capital expenditures to comply with applicable fire and safety regulations, building codes, the Americans with Disabilities Act ("ADA"), environmental regulations, and other land use regulations, and may be required to obtain approvals from various authorities with respect to our properties, including prior to acquiring a property or when undertaking improvements of any of our existing properties. Compliance with new laws or regulations, or stricter interpretation of existing laws, may require us or our tenants to incur significant expenditures, impose significant liability, restrict or prohibit business activities, and could materially adversely affect us.

***Compliance or failure to comply with the Americans with Disabilities Act or other federal, state, and local regulatory requirements could result in substantial costs.***

The ADA generally requires that certain buildings, including office buildings, be made accessible to disabled persons. We believe that we are currently in compliance with these requirements. Noncompliance could result in the imposition of fines by the federal government or the award of damages to private litigants. If, under the ADA, we are required to make substantial alterations and capital expenditures in one or more of our properties, including the removal of access barriers or the addition of access enhancements, it could adversely impact our earnings and cash flows, thereby impacting our ability to service debt and make distributions to our stockholders.

In addition, our properties are subject to various federal, state, and local regulatory requirements, such as state and local fire, health, and life safety requirements. We are currently in compliance with these requirements. If we fail to comply with these requirements, we could incur fines or other monetary damages. We do not know whether existing requirements will change or whether compliance with future requirements will require significant unanticipated expenditures that will affect our cash flow and results of operations. While we intend to only acquire properties that we believe are currently in substantial compliance with all regulatory requirements, these requirements may change and new requirements may be imposed which would require significant unanticipated expenditures by us and could materially and adversely affect us.

***Insurance on our properties may not adequately cover all losses and any uninsured losses could materially and adversely affect us.***

Our tenants are generally required to maintain comprehensive insurance coverage for the properties they lease from us. Pursuant to such leases, our tenants are generally required to name us (and any of our lenders that have a mortgage on the property leased by the tenant) as additional insureds on their liability policies and additional named insureds and/or loss payees (or mortgagee, in the case of our lenders) on their property policies. To the extent that our tenants do not name us as additional insureds on their liability policies, this may create a risk for us regarding coverage for any losses or liabilities associated with such properties. Additionally, most tenants are required to maintain casualty coverage and most are required to carry limits at 100% of replacement cost, although some of our leases allow tenants to self-insure their insurance obligations for casualty losses. Depending on the location of the property, losses of a catastrophic nature, such as those caused by casualty, earthquakes and floods, may be covered by insurance policies that are held by our tenant with limitations such as large deductibles or co-payments that a tenant may not be able to meet. In addition, losses of a catastrophic nature, such as those caused by wind/hail, hurricanes, terrorism, or acts of war, may be uninsurable or not economically insurable. In the event there is damage to our properties that is not covered by insurance and such properties are subject to recourse indebtedness, we will continue to be liable for the indebtedness, even if these properties are irreparably damaged. In addition, if uninsured damage to a property occurs or a loss exceeds policy limits and we do not have adequate cash to fund repairs, we may be forced to sell the property at a loss or to borrow capital to fund the repairs.

Inflation, changes in building codes and ordinances, environmental considerations, and other factors, including terrorism or acts of war, may make any insurance proceeds we receive insufficient to repair or replace a property if it is damaged or destroyed. In that situation, the insurance proceeds received may not be adequate to restore our economic position with respect to the affected real property. Also, if we experience a substantial or comprehensive loss of one of our properties, we may not be able to rebuild such property to its existing specifications without significant capital expenditures which may exceed any amounts received pursuant to insurance policies, as reconstruction or improvement of such a property would likely require significant upgrades to meet zoning and building code requirements. The loss of our capital investment in or anticipated future returns from our properties due to material uninsured losses could materially and adversely affect us.

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**Risks Related to Our Indebtedness**

***We have significant indebtedness outstanding, which may expose us to the risk of default under our debt obligations.***

As of September 30, 2025, we had $34.3 million of total consolidated indebtedness outstanding, of which $34.3 million was secured. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Outstanding Indebtedness." Total debt payments for 2026 are $11.8 million. We expect to meet these repayment requirements primarily through financing activity or net cash from operating activities. Our organizational documents contain no limitations regarding the maximum level of indebtedness that we may incur or keep outstanding. Payments of principal and interest on borrowings may leave us with insufficient cash resources to meet our cash needs or make the distributions to our common stockholders currently contemplated or necessary to maintain our status as a REIT. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

● our cash flow may be insufficient to meet our required principal and interest payments;

● cash interest expense and financial covenants relating to our indebtedness may limit or eliminate our ability to make distributions to our common stockholders;

● we may be unable to borrow additional funds as needed or on favorable terms, which could, among other things, adversely affect our ability to capitalize upon investment opportunities or meet operational needs;

● we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

● because a portion of our debt bears interest at variable rates, increases in interest rates could increase our interest expense;

● we may be unable to hedge floating rate debt, counterparties may fail to honor their obligations under any hedge agreements we enter into, such agreements may not effectively hedge interest rate fluctuation risk, and, upon the expiration of any hedge agreements we enter into, we would be exposed to then-existing market rates of interest and future interest rate volatility;

● we may be forced to dispose of properties, possibly on unfavorable terms or in violation of certain covenants to which we may be subject;

● we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure their loans and receive an assignment of rents and leases;

● we may be restricted from accessing some of our excess cash flow after debt service if certain of our customers fail to meet certain financial performance metric thresholds;

● we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

● our default under any loan with cross default provisions could result in a default on other indebtedness.

The occurrence of any of these events could materially and adversely affect us. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, which could hinder our ability to meet the REIT distribution requirements imposed by the Code.

***Increases in interest rates could increase the amount of our debt payments.***

As of September 30, 2025, we had $34.3 million of our outstanding consolidated indebtedness that is fixed-rate debt. Increases in interest rates could increase our interest expense on future fixed rate borrowings. In addition, if we need to repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of our investments in properties at times which may not permit realization of the maximum return on such investments.

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***Market conditions could adversely affect our ability to refinance existing indebtedness or obtain additional financing for growth on acceptable terms or at all, which could materially and adversely affect us.***

Credit markets have experienced over the past several years, and may continue to experience, significant price volatility, displacement and liquidity disruptions, including the bankruptcy, insolvency or restructuring of certain financial institutions. Such circumstances could materially impact liquidity in the financial markets, making financing terms for borrowers less attractive, and potentially result in the unavailability of various types of debt financing. As a result, we may be unable to obtain debt financing on favorable terms or at all or fully refinance maturing indebtedness with new indebtedness. Reductions in our available borrowing capacity or inability to obtain credit when required or when business conditions warrant could materially and adversely affect us.

***Our existing indebtedness contains, and any future indebtedness is likely to contain, covenants that restrict our ability to engage in certain activities.***

The agreements governing our borrowings contain or are likely to contain financial and other covenants with which we are or will be required to comply and that limit or are likely to limit our ability to operate our business. These covenants, as well as any additional covenants to which we may be subject in the future because of additional borrowings, could cause us to have to forego investment opportunities, reduce or eliminate distributions to our common stockholders or obtain financing that is more expensive than financing we could obtain if we were not subject to the covenants. In addition, the agreements governing our borrowing may have cross default provisions, which provide that a default under one of our debt financing agreements would lead to a default on all of our debt financing agreements.

The covenants and other restrictions under our debt agreements may affect, among other things, our ability to:

● incur indebtedness;

● create liens on assets;

● sell or substitute assets;

● modify certain terms of our leases;

● manage our cash flows; and

● make distributions to equity holders, including our common stockholders.

Additionally, these restrictions may adversely affect our operating and financial flexibility and may limit our ability to respond to changes in our business or competitive environment, all of which may materially and adversely affect us.

***Secured indebtedness exposes us to the possibility of foreclosure, which could result in the loss of our investment in certain of our subsidiaries or in a property or group of properties or other assets subject to indebtedness and limits our ability to raise future capital.***

We have granted certain of our lenders security interests in certain of our assets, including equity interests in certain of our subsidiaries and in certain of our real property. Incurring secured indebtedness, including mortgage indebtedness, increases our risk of asset and property losses because defaults on indebtedness secured by our assets, including equity interests in certain of our subsidiaries and in certain of our real property, may result in foreclosure actions initiated by lenders and ultimately our loss of the property or other assets securing any loans for which we are in default. Any foreclosure on a mortgaged property or group of properties could have a material adverse effect on the overall value of our portfolio of properties and more generally on us. For tax purposes, a foreclosure of any of our properties would be treated as a sale of the property for a purchase price equal to the outstanding balance of the indebtedness secured by the mortgage. If the outstanding balance of the indebtedness secured by the mortgage exceeds our tax basis in the property, we would recognize taxable income on foreclosure, but would not receive any cash proceeds, which could materially and adversely affect us, including hindering our ability to meet the REIT distribution requirements imposed by the Code. As a result, our substantial secured indebtedness could have a material adverse effect on us.

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**Risks Related to Our Organizational Structure**

***Our rights and the rights of our stockholders to take action against our directors and officers are limited.***

Maryland law provides that a director has no liability in the capacity as a director if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be in our best interests and with the care that an ordinarily prudent person in a like position would use under similar circumstances. As permitted by the Maryland General Corporation Law (the "MGCL"), our charter limits the liability of our directors and officers to us and our stockholders for money damages, except for liability resulting from:

● actual receipt of an improper benefit or profit in money, property or services; or

● a final judgment based upon a finding of active and deliberate dishonesty by the director or officer that was material to the cause of action adjudicated.

In addition, our charter requires us to indemnify our directors and officers for actions taken by them in those capacities and to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding to the maximum extent permitted by Maryland law as discussed under "Certain Provisions of Maryland Law and of Our Charter and Bylaws—Limitation of Liability and Indemnification of Directors and Officers," and we intend to enter into indemnification agreements with our directors and executive officers. As a result, we and our stockholders may have more limited rights against our directors and officers than might otherwise exist under common law. Accordingly, in the event that any of our directors or officers are exculpated from, or indemnified against, liability but whose actions impede our performance, our stockholders' ability to recover damages from that director or officer will be limited.

***Our charter and bylaws contain provisions that may delay, defer or prevent an acquisition of our common stock or a change in control.***

Our charter and bylaws contain a number of provisions, the exercise or existence of which could delay, defer or prevent a transaction or a change in control that might involve a premium price for our stockholders or otherwise be in their best interests, including the following:

●  ***Our Charter Contains Restrictions on the Ownership and Transfer of Our Stock.*** In order for us to qualify as a REIT, no more than 50% of the value of outstanding shares of our stock may be owned, beneficially or constructively, by five or fewer individuals at any time during the last half of each taxable year other than the first year for which we elect to be taxed as a REIT. Subject to certain exceptions, our charter prohibits any stockholder from owning beneficially or constructively more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of our common stock, 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of any class or series of our preferred stock, or 9.8% in value of the aggregate of the outstanding shares of all classes or series of our stock. We refer to these restrictions collectively as the "ownership limits." The constructive ownership rules under the Code are complex and may cause the outstanding stock owned by a group of related individuals or entities to be deemed to be constructively owned by one individual or entity. As a result, the acquisition of less than 9.8% of our outstanding common stock or the outstanding shares of all classes or series of our stock by an individual or entity could cause that individual or entity or another individual or entity to own constructively in excess of the relevant ownership limits. Our charter also prohibits any person from owning shares of our stock that could result in our being "closely held" under Section 856(h) of the Code or otherwise cause us to fail to qualify as a REIT. Any attempt to own or transfer shares of our stock in violation of these restrictions may result in the shares being automatically transferred to a charitable trust or may be void. These ownership limits may prevent a third party from acquiring control of us if our board of directors does not grant an exemption from the ownership limits, even if our stockholders believe the change in control is in their best interests.

●  ***Our Board of Directors Has the Power to Cause Us to Issue Additional Shares of Our Stock Without Stockholder Approval.*** Our charter authorizes us to issue additional authorized but unissued shares of common or preferred stock. In addition, our board of directors may, without common stockholder approval, amend our charter to increase or decrease the aggregate number of our shares of common stock or the number of shares of stock of any class or series that we have authority to issue and classify or reclassify any unissued shares of common or preferred stock and set the preferences, rights and other terms of the classified or reclassified shares. As a result, our board of directors may establish a class or series of shares of common or preferred stock that could delay or prevent a transaction or a change in control that might involve payment of a premium price for our shares of common stock or that stockholders may otherwise consider to be in their best interests.

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***Certain provisions of Maryland law may limit the ability of a third-party to acquire control of us.***

Certain provisions of the MGCL may have the effect of inhibiting a third party from acquiring us or of impeding a change of control under circumstances that otherwise could provide our common stockholders with the opportunity to realize a premium over the then-prevailing market price of such shares, including:

●  ***"business combination"*** provisions that, subject to limitations, prohibit certain business combinations between an "interested stockholder" (defined generally as any person who beneficially owns, directly or indirectly, 10% or more of the voting power of our outstanding shares of voting stock or an affiliate or associate of the corporation who, at any time within the two-year period immediately prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding stock of the corporation) or an affiliate of any interested stockholder and us for five years after the most recent date on which the stockholder becomes an interested stockholder, and thereafter imposes two super-majority stockholder voting requirements on these combinations; and

●  ***"control share"*** provisions that provide that holders of "control shares" of our Company (defined as voting shares of stock that, if aggregated with all other shares of stock owned or controlled by the acquirer, would entitle the acquirer to exercise one of three increasing ranges of voting power in electing directors) acquired in a "control share acquisition" (defined as the direct or indirect acquisition of issued and outstanding "control shares") have no voting rights except to the extent approved by our stockholders by the affirmative vote of at least two-thirds of all of the votes entitled to be cast on the matter, excluding all interested shares.

Pursuant to the Maryland Business Combination Act, our board of directors has by resolution exempted from the provisions of the Maryland Business Combination Act business combinations between us and any other person, provided that the business combination is first approved by our board of directors (including a majority of our directors who are not affiliates or associates of such person). Our bylaws contain a provision exempting from the Maryland Control Share Acquisition Act any and all acquisitions by any person of shares of our stock. There can be no assurance that these exemptions or resolutions will not be amended or eliminated at any time in the future.

Additionally, Title 3, Subtitle 8 of the MGCL permits our board of directors, without stockholder approval and regardless of what is currently provided in our charter or bylaws, to implement certain corporate governance provisions, some of which we do not have. In accordance with the MGCL, our charter provides that, without the affirmative vote of a majority of the votes cast on the matter by our stockholders entitled to vote generally in the election of directors, we may not elect to be subject to the provision of Subtitle 8 that permits our board of directors to classify itself.

***Our board of directors may change our investment and financing policies without stockholder approval, and we may become more highly leveraged, which may increase our risk of default under our debt obligations.***

Our investment and financing policies are exclusively determined by our board of directors. Accordingly, our stockholders do not control these policies. Further, our organizational documents do not limit the amount or percentage of indebtedness, funded or otherwise, that we may incur. Although we are not required to maintain a particular leverage ratio, we generally intend to target an overall debt-to-gross total assets ratio of 55%–65%, that over time, will decrease to approximately 50%. However, from time to time, our debt-to gross total assets ratio may exceed our targets. Our board of directors may alter or eliminate our current policy on borrowing at any time without stockholder approval. If this policy changed, we could become more highly leveraged, which could result in an increase in our debt service. Higher leverage also increases the risk of default on our obligations. In addition, a change in our investment policies, including the manner in which we allocate our resources across our portfolio or the types of assets in which we seek to invest, may increase our exposure to interest rate risk, real estate market fluctuations and liquidity risk. Changes to our policies with regards to the foregoing could materially and adversely affect us.

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***Upon the completion of this offering and the formation transactions, we will be a holding company with no direct operations and will rely on funds received from our operating partnership to pay liabilities and distributions to our stockholders.***

Upon the completion of this offering and the formation transactions, we will be a holding company and will conduct substantially all of our operations through our operating partnership. We will not have, apart from an interest in our operating partnership, any independent operations. As a result, we will rely on distributions from our operating partnership to pay any distributions we might declare on shares of our common stock. We will also rely on distributions from our operating partnership to meet any of our obligations, including any tax liability on taxable income allocated to us from our operating partnership. In addition, because we will be a holding company, your claims as stockholders will be structurally subordinated to all existing and future liabilities and obligations (whether or not for borrowed money) of our operating partnership and its subsidiaries. Therefore, in the event of our bankruptcy, liquidation or reorganization, our assets and those of our operating partnership and its subsidiaries will be able to satisfy the claims of our stockholders only after all of our and our operating partnership's and its subsidiaries' liabilities and obligations have been paid in full.

In connection with our future acquisition of properties or otherwise, we may issue units of our operating partnership to third parties. Such issuances would reduce our ownership in our operating partnership. Because you will not directly own units of our operating partnership, you will not have any voting rights with respect to any such issuances or other partnership level activities of our operating partnership.

***We have not obtained an independent third-party appraisal of the interests or assets being contributed to us, and the consideration to be paid by us in our formation transactions was not negotiated on an* arm's*-*length *basis.***

The valuation of the initial portfolio was not based on an appraisal conducted by an independent third-party, nor was the transaction the result of an arm's length negotiation. As a result, there can be no assurance that the consideration paid or received reflects the fair market value of the initial portfolio. This could adversely affect our financial condition and results of operations if the properties are later determined to be overvalued or if we are unable to generate expected returns. Additionally, the absence of an independent valuation may raise concerns among investors and regulators regarding the transparency and fairness of the formation transaction, which could negatively impact our reputation and the market price of our common stock.

***Conflicts of interest exist or could arise in the future with our operating partnership or its partners.***

Conflicts of interest exist or could arise in the future as a result of the relationships between us and our affiliates, on the one hand, and our operating partnership or any partner thereof, on the other. Our directors and officers have duties to our Company under applicable Maryland law in connection with their direction of the management of our Company. At the same time, we, as general partner of our operating partnership, have duties to our operating partnership and to the limited partners under Delaware law in connection with the management of our operating partnership. Under Delaware law, the 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. These duties as general partner of our operating partnership to the partnership and its partners may come into conflict with the interests of our Company. Under the partnership agreement of our operating partnership, the limited partners of our operating partnership will expressly agree that the general partner of our operating partnership is acting for the benefit of the operating partnership, the limited partners of our operating partnership and our stockholders, collectively. The general partner is under no obligation to give priority to the separate interests of the limited partners in deciding whether to cause our operating partnership to take or decline to take any actions. If there is a conflict between the interests of us or our stockholders, on the one hand, and the interests of the limited partners of our operating partnership, on the other, the partnership agreement of our operating partnership will provide that any action or failure to act by the general partner that gives priority to the separate interests of us or our stockholders that does not result in a violation of the contractual rights of the limited partners of our operating partnership under the partnership agreement will not violate the duties that the general partner owes to our operating partnership and its partners.

Additionally, the partnership agreement of our operating partnership will expressly limit our liability by providing that we and our directors, officers, agents and employees will not be liable or accountable to our operating partnership or its partners for money damages. In addition, our operating partnership will be required to indemnify us, as general partner, our directors, officers and employees, employees of our operating partnership and any other persons whom we, as general partner, may designate from and against any and all claims arising from operations of our operating partnership in which any indemnitee may be involved, or is threatened to be involved, as a party or otherwise unless it is established by a final judgment that the act or omission of the indemnitee constituted fraud, intentional harm or gross negligence on the part of the indemnitee, the claim is brought by the indemnitee (other than to enforce the indemnitee's rights to indemnification or advance of expenses) or the indemnitee is found to be liable to our operating partnership, and then only with respect to each such claim.

No reported decision of a Maryland appellate court has interpreted provisions that are similar to the provisions of the partnership agreement of our operating partnership that modify the fiduciary duties of the general partner of our operating partnership, and we have not obtained an opinion of counsel regarding the enforceability of the provisions of the partnership agreement that purport to waive or modify the fiduciary duties and obligations of the general partner of our operating partnership.

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***Our management team are involved in the management and/or ownership of other real estate properties and entities, some of which may compete with us for investment opportunities.***

Our management team are involved in the management and/or ownership of other real estate properties and entities, some of which may compete with us for investment opportunities. In addition, certain members of management own interests in the Napa Square property that will not be contributed to the company. As a result, their time and attention may be divided between our operations and those of the other entities and interests. This may result in conflicts of interest, particularly with respect to the allocation of investment opportunities, resources, and management focus. There can be no assurance that our management will always act in our best interests or that such conflicts will be resolved in our favor. Any failure by our management to appropriately allocate their time or to resolve conflicts of interest in our favor could have a material adverse effect on our business, financial condition, and results of operations.

***We currently invest, and in the future may invest in joint ventures and face risks stemming from our partial ownership interests in such properties, which could materially and adversely affect the value of any such joint venture investments.***

We currently own a partial ownership in one property, and may in the future invest in additional real estate through joint ventures. Our venture partners may have rights to take actions over which we have no control, or the right to withhold approval of actions that we propose, either of which could adversely affect our interests in the related joint ventures, and in some cases, our overall financial condition and results of operations. A venture partner may have economic and/or other business interests or goals that are incompatible with our business interests or goals and that venture partner may be in a position to take action contrary to our interests. In addition, such venture partners may default on their obligations, including loans secured by property owned by the joint venture that could have an adverse impact on the financial condition and operations of the joint venture. Such defaults may result in our fulfilling the defaulting partners' obligations that may, in some cases, require us to contribute additional capital to the ventures. Furthermore, the success of a project may be dependent upon the expertise, business judgment, diligence, and effectiveness of our venture partners in matters that are outside our control. Thus, the involvement of venture partners could adversely impact the development, operation, ownership, financing, or disposition of the underlying properties.

***Our bylaws designate the Circuit Court for Baltimore City, Maryland, and the United States District Court for the District of Maryland, Northern Division, as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders and provide that claims relating to causes of action under the Securities Act may only be brought in federal district courts, which could limit our stockholders' ability to bring a claim in a judicial forum that the stockholders believe is a more favorable judicial forum for disputes with us or our directors, officers or other employees.***

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**Risks Related to this Offering and Ownership of Shares of Our Common Stock**

***There has been no public market for our common stock prior to this offering and an active trading market for our common stock may not develop following this offering.***

Prior to this offering, there has been no public market for our common stock, and there can be no assurance that an active trading market will develop or be sustained or that shares of our common stock will be resold at or above the initial public offering price. We have applied to have our common stock listed on the NYSE American, subject to official notice of issuance. The initial public offering price of our common stock will be determined by agreement among us and the underwriters, but there can be no assurance that our common stock will not trade below the initial public offering price following the completion of this offering. See "Underwriting." The market value of our common stock could be substantially affected by general market conditions, including the extent to which a secondary market develops for our common stock following the completion of this offering, the extent of institutional investor interest in us, the general reputation of REITs and the attractiveness of their equity securities in comparison to other equity securities (including securities issued by other real estate-based companies), our financial performance and general stock and bond market conditions.

***The market price and trading volume of shares of our common stock may be volatile following this offering.***

The market price of shares of our common stock may fluctuate. In addition, the trading volume in shares of our common stock may fluctuate and cause significant price variations to occur. If the market price of shares of our common stock declines significantly, you may be unable to resell your shares of our common stock at or above the public offering price. We cannot assure you that the market price of shares of our common stock will not fluctuate or decline significantly, including a decline below the public offering price, in the future.

Some of the factors that could negatively affect our share price or result in fluctuations in the market price or trading volume of shares of our common stock include:

● actual or anticipated declines in our quarterly operating results or distributions;

● changes in government regulations;

● changes in laws affecting REITs and related tax matters;

● reductions in our FFO or earnings estimates;

● publication of research reports about us or the real estate industry;

● increases in market interest rates that lead purchasers of shares of our common stock to demand a higher yield;

● future equity issuances, or the perception that they may occur, including issuances of common stock upon exercise or vesting of equity awards or redemption of OP units;

● changes in market valuations of similar companies;

● adverse market reaction to any increased indebtedness we incur in the future;

● additions or departures of key management personnel;

● actions by institutional stockholders;

● differences between our actual financial and operating results and those expected by investors and analysts;

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● changes in analysts' recommendations or projections;

● speculation in the press or investment community; and

● the realization of any of the other risk factors presented in this prospectus.

***There can be no assurance that we will be able to make or maintain cash distributions, and certain agreements relating to our indebtedness may, under certain circumstances, limit or eliminate our ability to make distributions to our common stockholders.***

We intend to make cash distributions to our stockholders in amounts such that all or substantially all of our taxable income in each year, subject to adjustments, is distributed. Our ability to continue to make distributions in the future may be adversely affected by the risk factors described in this prospectus. There can be no assurance that we will be able to make or maintain distributions and certain agreements relating to our indebtedness may, under certain circumstances, limit or eliminate our ability to make distributions to our common stockholders. There can be no assurance that rents from our properties will increase, or that future acquisitions of real properties or other investments will increase our cash available for distributions to stockholders. In addition, any distributions will be authorized at the sole discretion of our board of directors, and their form, timing and amount, if any, will depend upon a number of factors, including our actual and projected results of operations, FFO, EBITDA, liquidity, cash flows and financial condition, the revenue we actually receive from our properties, our operating expenses, our debt service requirements, our capital expenditures, prohibitions and other limitations under our financing arrangements, our REIT taxable income, the annual REIT distribution requirements, applicable law and such other factors as our board of directors deems relevant.

If we do not have sufficient cash available for distributions, we may need to fund the shortage out of working capital or borrow to provide funds for such distributions, which would reduce the amount of proceeds available for real estate investments and increase our future interest costs. Our inability to make distributions, or to make distributions at expected levels, could result in a decrease in the market price of our common stock.

***We may use a portion of the net proceeds from this offering to make distributions to our stockholders, which would, among other things, reduce our cash available to acquire properties and may reduce the returns on your investment in our common stock.***

Prior to the time we have fully invested the net proceeds from this offering, we may fund distributions to our stockholders out of the net proceeds, which would reduce the amount of cash we have available to acquire properties and may reduce the returns on your investment in our common stock. The use of these net proceeds for distributions to stockholders could materially and adversely affect us. In addition, funding distributions from the net proceeds from this offering may constitute a return of capital to our stockholders, which would have the effect of reducing each stockholder's tax basis in our common stock.

***Increases in market interest rates may result in a decrease in the value of shares of our common stock.***

One of the factors that will influence the price of shares of our common stock will be the distribution yield on shares of our common stock (as a percentage of the price of shares of our common stock) relative to market interest rates. An increase in market interest rates may lead prospective purchasers of shares of our common stock to expect a higher distribution yield and higher interest rates would likely increase our borrowing costs and potentially decrease funds available for distribution. Thus, higher market interest rates could cause the market price of our common stock to decrease.

***Broad market fluctuations could negatively impact the market price of shares of our common stock.***

The stock market may experience extreme price and volume fluctuations that have affected the market price of many companies in industries similar or related to ours and that have been unrelated to these companies' operating performances. The changes frequently appear to occur without regard to the operating performance of the affected companies. Hence, the price of our common stock could fluctuate based upon factors that have little or nothing to do with us in particular. These broad market fluctuations could reduce the market price of shares of our common stock. Furthermore, our operating results and prospects may be below the expectations of public market analysts and investors or may be lower than those of companies with comparable market capitalizations. Either of these factors could lead to a material decline in the market price of our common stock.

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***This offering may be dilutive to earnings, and there may be future dilution to earnings related to shares of our common stock.***

This offering may have a dilutive effect on our earnings per share and FFO per share. The market price of shares of our common stock could decline as a result of issuances or sales of a large number of shares of our common stock in the market after this offering or the perception that such issuances or sales could occur. Additionally, future issuances or sales of substantial amounts of shares of our common stock may be at prices below the initial public offering price of the shares of our common stock offered by this prospectus and may result in further dilution in our earnings and FFO per share and/or materially and adversely impact the market price of our common stock. See "Dilution."

***We will incur significantly increased costs as a result of operating as a public company, and our management will be required to devote substantial time and attention to compliance efforts.***

We will incur significant legal, accounting, insurance and other expenses as a result of becoming a public company upon the completion of this offering. As a public company with listed equity securities, we will need to comply with new laws, regulations and requirements, including the requirements of the Exchange Act, certain corporate governance provisions of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, related regulations of the U.S. Securities and Exchange Commission ("SEC") and requirements of the NYSE American, with which we were not required to comply as a private company. The Exchange Act requires that we file annual, quarterly and current reports with respect to our business, operations and financial statements. The Sarbanes-Oxley Act requires, among other things, that we establish and maintain effective internal controls and procedures for financial reporting.

These reporting and other obligations will place significant demands on our management and our administrative, operational and accounting resources and will cause us to incur significant expenses. We may need to upgrade our systems or create new systems, implement additional financial and other controls, reporting systems and procedures. If we are unable to accomplish these objectives in a timely and effective fashion, our ability to comply with the financial reporting requirements and other rules that apply to public companies could be impaired.

***If we fail to implement and maintain an effective system of internal control over financial reporting, we may not be able to accurately determine or disclose our financial results. As a result, our stockholders could lose confidence in our financial results.***

Upon completion of this offering, we will become subject to the informational requirements of the Exchange Act and will be required to file reports and other information with the SEC. As a publicly-traded company, we will be required to maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file with, or submit to, the SEC is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. They include controls and procedures designed to ensure that information required to be disclosed in reports filed with, or submitted to, the SEC is accumulated and communicated to management, including our principal executive and principal financial officers, to allow timely decisions regarding required disclosure. Effective disclosure controls and procedures are necessary for us to provide reliable reports, effectively prevent and detect fraud, and to operate successfully as a public company. Designing and implementing effective disclosure controls and procedures is a continuous effort that requires significant resources and devotion of time. We may discover deficiencies in our disclosure controls and procedures that may be difficult or time consuming to remediate in a timely manner. Any failure to maintain effective disclosure controls and procedures or to timely effect any necessary improvements thereto could cause us to fail to meet our reporting obligations (which could affect the listing of our common stock on the NYSE American). Additionally, ineffective disclosure controls and procedures could also adversely affect our ability to prevent or detect fraud, harm our reputation and cause investors to lose confidence in our reports filed with, or submitted to, the SEC, which would likely have a negative effect on the market price of our common stock.

***We previously identified a material weakness in our internal control over financial reporting and may identify additional material weaknesses in the future, which could materially adversely affect us and our ability to accurately and timely report our financial results.***

As defined in standards established by the PCAOB, a "material weakness" is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. The identified material weakness required adjustments to our financial statements during the audit.

As of and for the years ended December 31, 2024 and 2023, we and our independent registered public accounting firm identified a material weakness in our internal control over financial reporting relating to our predecessor's control activities, which were not designed and implemented effectively with respect to the review and approval of certain journal entries and supporting schedules meant to reconcile income-tax basis financial information to complete and accurate US GAAP compliant financial statements. This material weakness resulted in errors that were identified in connection with the audit of our predecessor's combined consolidated financial statements. The identified material weakness required adjustments to our financial statements.

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The Company has plans to implement measures designed to improve internal controls over financial reporting to remediate the control deficiencies outlined above that led to the material weaknesses, including strengthening reviews by its finance team and expanding its accounting and finance team to add additional qualified accounting and finance resources, which may include expanding the use of third-party consultants that possess the required expertise to assist management with its review.

The Company cannot assure you that the measures it has taken to date, and actions it may take in the future, will be sufficient to remediate the control deficiency that led to the material weakness in its internal controls over financial reporting or that they will prevent or avoid potential future material weaknesses. In addition, neither its management nor an independent registered public accounting firm has performed an evaluation of its internal control over financial reporting in accordance with the provisions of the Sarbanes-Oxley Act because no such evaluation has been required. If the Company is unable to successfully remediate its existing or any future material weaknesses in its internal control over financial reporting, identifies any additional material weaknesses in the future or otherwise fails to maintain an effective system of internal controls, the accuracy and timing of the Company's financial reporting may be adversely affected, the Company may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in the Company's financial reporting, and the market price of the Company's common stock may decline as a result.

***Our business could be adversely impacted if we have deficiencies in our disclosure controls and procedures or internal control over financial reporting, including as a result of the material weakness identified by management and discussed above.***

The design and effectiveness of our disclosure controls and procedures and internal control over financial reporting, including new and revised financial and IT-related controls that we have been designing, implementing and operating, may not prevent all errors, misstatements or misrepresentations. While management will continue to review the effectiveness of our disclosure controls and procedures and internal control over financial reporting, there can be no guarantee that our internal control over financial reporting will be effective in accomplishing all control objectives all of the time. Deficiencies in our internal control over financial reporting, including any material weakness which may occur in the future, could result in misstatements of our results of operations, restatements of our financial statements, a decline in our stock price, or otherwise materially adversely affect our business, reputation, results of operations, financial condition or liquidity.

***Future offerings of debt, which would be senior to shares of our common stock upon liquidation, and/or preferred equity securities that may be senior to shares of our common stock for purposes of distributions or upon liquidation, may materially and adversely affect the market price of shares of our common stock.***

In the future, we may attempt to increase our capital resources by making additional offerings of debt or preferred equity securities (or causing our operating partnership to issue debt securities). Upon liquidation, holders of our debt securities and lenders with respect to other borrowings will receive distributions of our available assets prior to our common stockholders. Additionally, any convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock and may result in dilution to owners of our common stock. Our stockholders are not entitled to preemptive rights or other protections against dilution. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Our stockholders bear the risk of our future offerings reducing the market price of our common stock.

***Future redemption obligations may materially and adversely affect the market price of shares of our common stock and may reduce future distributions.***

Certain continuing investors hold direct or indirect interests in us or our operating partnership with special redemption rights that may allow them to require us or the operating partnership to redeem their shares of our common stock or OP units for cash at the fair market value (based on the value of our common stock), subject to a minimum price for such shares or units, or, to require us or the operating partnership to pay such continuing investor at the option of the continuing investor, any combination of cash, OP units and/or shares of our common stock that equal the excess of the minimum price over the fair market value of the OP units and/or shares of our common stock as of the election date. In the event such continuing investors invoke these special redemption rights, we and/or our operating partnership or its subsidiaries will be obligated to satisfy such redemptions, which will dilute the ownership interest of our common stockholders. Such amounts could be material and could materially and adversely affect the market price of shares of our common stock and reduce future distributions to our stockholders.

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***We are an "emerging growth company" and a "smaller reporting company" and we cannot be certain if the reduced disclosure requirements applicable to "emerging growth companies" and "smaller reporting companies" will make our common stock less attractive to investors.***

We are an "emerging growth company," as defined in Section 2(a)(19) of the Securities Act, and we may take advantage of certain exemptions and relief from various reporting requirements that are applicable to other public companies that are not "emerging growth companies." In particular, while we are an "emerging growth company," among other exemptions:

● we will not be required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act;

● we will be subject to reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

● we will not be required to hold nonbinding advisory votes on executive compensation or stockholder approval of any golden parachute payments not previously approved.

In addition, Section 107 of the Jumpstart Our Business Startups Act ("JOBS Act") provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards, meaning that such company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period, and as a result, our financial statements may not be comparable with similarly situated public companies. We may remain an "emerging growth company" until the fiscal year-end following the fifth anniversary of the completion of this initial public offering, though we may cease to be an "emerging growth company" earlier under certain circumstances, including (1) if our gross revenue exceeds $1.235 billion in any fiscal year, (2) if we become a large accelerated filer, with at least $700 million of equity securities held by non-affiliates, or (3) if we issue more than $1.0 billion in non-convertible notes in any three-year period.

We also qualify as a "smaller reporting company," under Rule 12b-2 of the Securities Exchange Act of 1934, as amended. We may continue to be a smaller reporting company after this offering if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue was less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited consolidated financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

We cannot predict if investors may find our common stock less attractive if we rely on the exemptions and relief granted by the JOBS Act. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may decline and/or become more volatile.

***Sales of substantial amounts of our common stock in the public markets, or the perception that they might occur, could reduce the price of our common stock and may dilute your voting power and your ownership interest in us.***

Sales of substantial amounts of our common stock in the public market following our initial public offering, or the perception that such sales could occur, could adversely affect the market price of our common stock and may make it more difficult for you to sell your common stock at a time and price that you deem appropriate. We expect to have outstanding 3,000,000 shares of our common stock (or 3,450,000 shares of our common stock if the underwriters exercise in full their option to purchase additional shares).

The shares of our common stock that we are selling in this offering may be resold immediately in the public market unless they are held by "affiliates," as that term is defined in Rule 144 of the Securities Act. The OP units to be issued in the formation transactions will be "restricted securities" within the meaning of Rule 144 under the Securities Act and may not be sold in the absence of registration under the Securities Act unless an exemption from registration is available, including the exemptions contained in Rule 144. Our directors, director nominees, officers and certain holders of our common stock have agreed, subject to certain exceptions, not to sell or otherwise dispose of any of their common stock or OP units (which may be exchanged for common stock) from the date of this prospectus continuing through the date 180 days after the date of this prospectus, except with the underwriters' prior written consent. Sales of a substantial number of such shares upon expiration of the lock-up agreements, the perception that such sales may occur, or early release of these agreements, could cause the market price of our common stock to fall or make it more difficult for you to sell your common stock at a time and price that you deem appropriate.

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In addition, upon completion of this offering, our charter will provide that we may issue up to 100,000,000 shares of common stock, $0.01 par value per share. Moreover, under Maryland law and as will be provided in our charter, a majority of our entire board of directors will have the power to amend our charter to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we are authorized to issue without common stockholder approval. Future issuances of shares of our common stock or securities convertible or exchangeable into common stock may dilute the ownership interest of our common stockholders. Because our decision to issue additional equity or convertible or exchangeable securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future issuances. In addition, we are not required to offer any such securities to existing stockholders on a preemptive basis. Therefore, it may not be possible for existing stockholders to participate in such future issuances, which may dilute the existing stockholders' interests in us.

***A lack of research analyst coverage or restrictions on the ability of analysts associated with the co-managers of this offering to publish during certain time periods, including when we report our results of operations, could materially and adversely affect the market price and liquidity of our common stock.***

We cannot assure you that research analysts, including those associated with the underwriters of this offering, will initiate or maintain research coverage of us or our common stock. In addition, regulatory rules prohibit research analysts associated with the co-managers of this offering from publishing or otherwise distributing a research report or from making a public appearance regarding us for 15 days prior to and after the expiration, waiver or termination of any lock-up agreement that we or certain of our stockholders have entered into with the underwriters of this offering. Accordingly, it could be the case that research concerning our results of operations or the possible effects on us of significant news or a significant event will not be published or will be published on a delayed basis. A lack of research or the inability of certain research analysts to publish research relating to our results of operations or significant news or a significant event in a timely manner could materially and adversely affect the market price and liquidity of our common stock.

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**Risks Related to Our REIT Status and Other Tax Risks**

***Failure to qualify as a REIT would cause us to be taxed as a regular C corporation, which would substantially reduce funds available for distributions to stockholders.***

We intend to elect to qualify to be taxed as a REIT under the Code, commencing with our taxable year ending December 31, 2026. We believe that we have been organized and we intend to operate in a manner to qualify for taxation as a REIT for U.S. federal income tax purposes and will continue to enable us to meet the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes. However, we cannot assure you that we will qualify as such. This is because qualification as a REIT involves the application of highly technical and complex provisions of the Code as to which there are only limited judicial and administrative interpretations and involves the determination of facts and circumstances not entirely within our control. The complexity of these provisions and of the applicable regulations (as in effect from time to time) of the United States Department of the Treasury under the Code is greater in the case of a REIT, like us, that holds assets through a partnership. Future legislation, new regulations, administrative interpretations or court decisions may significantly change the tax laws or the application of the tax laws with respect to qualification as a REIT for federal income tax purposes or the federal income tax consequences of such qualification.

In order to qualify as a REIT, we must satisfy a number of requirements, including requirements regarding the ownership of our stock and the composition of our gross income and assets. Also, a REIT must make distributions to stockholders aggregating annually at least 90% of its REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains.

If we fail to qualify as a REIT in any taxable year, and are unable to obtain relief under certain statutory provisions, we will face material tax consequences that will substantially reduce the funds available for distributions to our stockholders because:

● we would be subject to regular United States federal corporate income tax on our net income for the years we did not qualify for taxation as a REIT (and, for such years, would not be allowed a deduction for dividends paid to stockholders in computing our taxable income);

● we could be subject to increased state and local taxes for such periods;

● unless we are entitled to relief under applicable statutory provisions, neither we nor any "successor" company could elect to be taxed as a REIT until the fifth taxable year following the year during which we were disqualified; and

● for five years following re-election of REIT status, upon a taxable disposition of an asset owned as of such re-election, we could be subject to corporate level tax with respect to any built-in gain inherent in such asset at the time of re-election.

As a result of all these factors, our failure to qualify as a REIT could impair our ability to expand our business and raise capital, and it could adversely affect the value of our common stock. If we fail to qualify as a REIT, we would no longer be required to make distributions to our stockholders.

***Even if we qualify as a REIT, we may face other tax liabilities that reduce our cash available for distribution to our stockholders.***

Even if we have qualified and continue to qualify as a REIT for U.S. federal income tax purposes, we may be subject to certain U.S. federal, state and local taxes on our income and assets, including taxes on any undistributed income, tax on income from some activities conducted as a result of a foreclosure, and state or local income, property and transfer taxes. In addition, we may hold some of its assets through one or more taxable REIT subsidiaries ("TRS"). Any TRSs or other taxable corporations in which we own an interest will be subject to U.S. federal, state and local corporate taxes. In addition, REITs are subject to certain excise taxes on transactions with TRSs that do not meet certain requirements, and no assurance can be provided that we would not be subject to these taxes. Any of these taxes would decrease cash available for distributions to stockholders.

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***If our operating partnership or any other subsidiary partnership or limited liability company fails to qualify as a partnership or disregarded entity for U.S. federal income tax purposes, we could fail to qualify as a REIT and would suffer adverse consequences.***

We believe that our operating partnership will be organized and operated in a manner so as to be treated as a partnership, and not an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes. As a partnership, our operating partnership will not be subject to U.S. federal income tax on its income. Instead, each of its partners, including us, will be allocated that partner's share of our operating partnership's income. No assurance can be provided, however, that the Internal Revenue Service, or the IRS, will not challenge the status of our operating partnership or any other subsidiary partnership or limited liability company in which we own an interest as a partnership or disregarded entity for U.S. federal income tax purposes, or that a court would not sustain such a challenge. If the IRS were successful in treating our operating partnership or any such other subsidiary partnership or limited liability company as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, we could fail to meet the gross income tests and certain of the asset tests applicable to REITs and, accordingly, could cease to qualify as a REIT. Also, the failure of our operating partnership or of any such other subsidiary partnership or limited liability company to qualify as a partnership or disregarded entity would cause it to become subject to U.S. federal corporate income tax, which would reduce significantly the amount of its cash available for debt service and for distribution to its partners or members, including us.

***Our operating partnership has a carryover tax basis on certain of its assets as a result of certain transactions, and the amount that we have to distribute to stockholders therefore may be higher.***

Certain of our operating partnership's assets were acquired in tax-deferred transactions and have carryover tax bases that are lower than the fair market values of these assets at the time of the acquisition. As a result of this lower aggregate tax basis, our operating partnership will recognize higher taxable gain upon the sale of these assets and our operating partnership will be entitled to lower depreciation deductions on these assets than if it had purchased these assets in taxable transactions at the time of the acquisition. Such lower depreciation deductions and increased gains on sales allocated to us generally will increase the amount of our required distribution under the REIT rules, and will decrease the portion of any distribution that otherwise would have been treated as a "return of capital" distribution.

***Our property taxes could increase due to property tax rate changes or reassessment, which could impact our cash flow.***

Even if we qualify as a REIT for U.S. federal income tax purposes, we are required to pay state and local property taxes on certain of our assets. The property taxes on our assets may increase as property tax rates change or as our assets are assessed or reassessed by taxing authorities. Therefore, the amount of property taxes we pay in the future may increase substantially from what we have paid in the past. If the property taxes we pay increase, our financial condition, results of operations, cash flow, per share trading price of our common stock, and ability to satisfy our principal and interest obligations and to make distributions to our stockholders could be adversely affected.

***REIT distribution requirements could adversely affect our ability to execute our business plans, including because we may be required to borrow funds to make distributions to stockholders or otherwise depend on external sources of capital to fund such distributions.***

We generally must distribute annually at least 90% of our REIT taxable income (determined without regard to the dividends paid deduction and excluding net capital gain) in order to continue to qualify as a REIT. To the extent that we satisfy the distribution requirement but distribute less than 100% of our REIT taxable income(including any net capital gains), we will be subject to federal corporate income tax on our undistributed taxable income. In addition, we may elect to retain and pay income tax on our net long-term capital gain. In that case, if we so elect, a stockholder would be taxed on its proportionate share of our undistributed long-term gain and would receive a credit or refund for its proportionate share of the tax we paid. A stockholder, including a tax-exempt or non-U.S. stockholder, would have to file a U.S. federal income tax return to claim that credit or refund. Furthermore, we will be subject to a 4% nondeductible excise tax if the actual amount that we distribute to our stockholders in a calendar year is less than a minimum amount specified under federal tax laws.

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We intend to make distributions to our stockholders to comply with the REIT requirements of the Code and to avoid corporate income tax and the 4% excise tax. We may be required to make distributions to our stockholders at times when it would be more advantageous to reinvest cash in our business or when we do not have funds readily available for distribution. Thus, compliance with the REIT requirements may hinder our ability to operate solely on the basis of maximizing profits.

If we do not have other funds available, we could be required to borrow funds on unfavorable terms, sell investments at disadvantageous prices, distribute amounts that would otherwise be invested in future acquisitions or capital expenditures or used for the repayment of debt, pay dividends in the form of "taxable stock dividends" or find another alternative source of funds to make distributions sufficient to enable us to distribute enough of our taxable income to satisfy the REIT distribution requirement and to avoid corporate income tax and the 4% excise tax in a particular year. These alternatives could increase our costs or adversely affect the value of our common stock.

***Complying with REIT requirements may cause us to forgo otherwise attractive opportunities or liquidate otherwise attractive investments.***

To continue to qualify as a REIT for U.S. federal income tax purposes, we must continually satisfy tests concerning, among other things, the sources of our income, the nature and diversification of our assets, the amounts we distribute to stockholders and the ownership of our stock. As discussed above, we may be required to make distributions to you at disadvantageous times or when we do not have funds readily available for distribution. Additionally, we may be unable to pursue investments that would be otherwise attractive to us in order to satisfy the requirements for qualifying 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, U.S. government securities and qualified real estate assets, including certain mortgage loans and mortgage-backed securities. The remainder of our investment in securities (other than U.S. government securities and qualified real estate assets) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our assets can consist of the securities of any one issuer (other than U.S. government securities and qualified real estate assets) and no more than 25% of the value of our gross assets may be represented by securities of one or more TRSs. Finally, no more than 25% of our assets may consist of debt investments that are issued by "publicly offered REITs" and would not otherwise be treated as qualifying real estate assets. If we fail to comply with these requirements at the end of any calendar quarter, we must correct such failure within 30 days after the end of the calendar quarter to avoid losing our REIT status and being subject to adverse tax consequences, unless certain relief provisions apply. As a result, compliance with the REIT requirements may hinder our ability to operate solely on the basis of profit maximization and may require us to liquidate investments from our portfolio, or refrain from making otherwise attractive investments. These actions could have the effect of reducing our income and amounts available for distribution to stockholders.

***The prohibited transactions tax may limit our ability to engage in transactions, including disposition of assets, which would be treated as sales for U.S. federal income tax purposes.***

A REIT's net income from prohibited transactions is subject to a 100% tax. In general, prohibited transactions are sales or other dispositions of dealer property, other than foreclosure property. We may be subject to the prohibited transaction tax upon a disposition of real property. Although a safe-harbor exception to prohibited transaction treatment is available, we cannot assure you that we can comply with such safe harbor or that we will avoid owning property that may be characterized as "dealer property" (i.e., held primarily for sale to customers in the ordinary course of our trade or business). Consequently, we may choose not to engage in certain sales of real property or may conduct such sales through a TRS.

***We may recognize substantial amounts of REIT taxable income, which we would be required to distribute to our stockholders, in a year in which we are not profitable under GAAP or other economic measures.***

We may recognize substantial amounts of REIT taxable income in years in which we are not profitable under GAAP or other economic measures as a result of the differences between GAAP and tax accounting methods. For instance, certain of our assets may be marked-to-market for GAAP purposes but not for tax purposes, which could result in losses for GAAP purposes that are not recognized in computing our REIT taxable income. Additionally, we may deduct our capital losses only to the extent of our capital gains in computing our REIT taxable income for a given taxable year. Consequently, we could recognize substantial amounts of REIT taxable income and would be required to distribute such income to you in a year in which we are not profitable under GAAP or other economic measures.

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***Dividends payable by REITs may be taxed at higher rates.***

Dividends payable by REITs may be taxed at higher rates than dividends of non-REIT corporations. The maximum U.S. federal income tax rate for qualified dividends paid by domestic non-REIT corporations to U.S. stockholders that are individuals, trusts or estates is generally 20%. Dividends paid by REITs to such stockholders are generally not eligible for that rate, but such stockholders may deduct up to 20% of ordinary dividends (i.e., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT. Although this deduction reduces the effective tax rate applicable to certain dividends paid by REITs, such tax rate may still be higher than the tax rate applicable to regular corporate qualified dividends. This may cause investors to view REIT investments as less attractive than investments in non-REIT corporations, which in turn may adversely affect the value of stock of REITs, including our stock. In addition, the relative attractiveness of real estate in general may be adversely affected by the favorable tax treatment given to corporate dividends, which could negatively affect the value of certain of our assets.

***Legislative or regulatory tax changes could adversely affect us or our stockholders.***

At any time, the U.S. federal income tax laws or regulations governing REITs or the administrative interpretations of those laws or regulations may be amended. We cannot predict when or if any new U.S. federal income tax law, regulation or administrative interpretation, or any amendment to any existing U.S. federal income tax law, regulation or administrative interpretation, will be adopted, promulgated or become effective and any such law, regulation or interpretation may take effect retroactively. Any such change could result in an increase in our, or our stockholders', tax liability or require changes in the manner in which we operate in order to minimize increases in our tax liability. A shortfall in tax revenues for states and municipalities in which we operate may lead to an increase in the frequency and size of such changes. If such changes occur, we may be required to pay additional taxes on our assets or income or be subject to additional restrictions. These increased tax costs could, among other things, adversely affect our financial condition, the results of operations, and the amount of cash available for the payment of dividends. We and our stockholders could be adversely affected by any such change in, or any new, U.S. federal income tax law, regulation, or administrative interpretation.

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**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "projects," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of these words or other comparable words. All of the forward-looking statements included in this prospectus are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, those factors described in "Risk Factors" beginning on page 26 of this prospectus. The "Risk Factors" section should not be construed as exhaustive and should be read in conjunction with other cautionary statements included elsewhere in this prospectus.

You are cautioned not to place undue reliance on any forward-looking statements included in this prospectus. All forward-looking statements are made as of the date of this prospectus and the risk that actual results, performance, and achievements will differ materially from the expectations expressed in or referenced by this prospectus will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law. In light of the significant uncertainties inherent in the forward-looking statements included in this prospectus, the inclusion of such forward-looking statements should not be regarded as a representation by us, the underwriters, or any other person that the objectives and strategies set forth in this prospectus will be achieved.

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**USE OF PROCEEDS**

We estimate that the net proceeds to us from this offering will be approximately $10.75 million, or $13.00 million if the underwriters exercise in full their option to purchase additional shares, after deducting underwriting discounts and commissions and other estimated expenses, in each case, based on an assumed initial public offering price of $5.00 per share, which is the mid-point of the price range set forth on the front cover of this prospectus. We will contribute the net proceeds from this offering to our operating partnership in exchange for OP units.

We expect our operating partnership to use the net proceeds received from us to fund the cash payments in connection with the formation transactions, capital expenditures and the remainder for general corporate purposes. We expect to use approximately $7.1 million of the proceeds towards repayment of the preferred equity in 55 Walkers Brook, $3.8 million in connection with capital expenditures for existing properties and the remainder for general corporate purposes, including expenses associated with this offering. Please see page 121 for additional information regarding the terms of the preferred equity in 55 Walkers Brook.

Pending the permanent use of the net proceeds from these offerings, we intend to invest the net proceeds in interest-bearing, short-term investment-grade securities, money-market accounts or other investments that are consistent with our intention to qualify for taxation as a REIT for U.S. federal income tax purposes.

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**DISTRIBUTION POLICY**

We have elected to qualify as a REIT for U.S. federal income tax purposes. To qualify as a REIT, we must distribute annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains. To the extent we satisfy the distribution requirement but distribute less than 100% of our REIT taxable income (determined without regard to the dividends paid deduction and including any net capital gains), we will be subject to U.S. federal corporate income tax on our undistributed taxable income. In addition, as a REIT, we will be required to pay a 4% nondeductible excise tax on the amount, if any, by which the distributions we make in a 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 prior years. For more information, see "U.S. Federal Income Tax Considerations." To satisfy the requirements to qualify as a REIT and to avoid paying U.S. federal income tax on our income, we intend to make quarterly distributions of all, or substantially all, of our REIT taxable income (including net capital gains) to our stockholders.

Although we anticipate initially making quarterly distributions to our stockholders, the timing, form and amount of distributions, if any, to our stockholders will be at the sole discretion of our board of directors, and their form, timing and amount, if any, will depend upon a number of factors, including our actual and projected results of operations, FFO, EBITDA, Adjusted EBITDA, liquidity, cash flows and financial condition, the revenue we actually receive from our properties, our operating expenses, our debt service requirements, our capital expenditures, prohibitions and other limitations under our financing arrangements, our REIT taxable income, the annual REIT distribution requirements, applicable law, including restrictions on distributions under Maryland law, and such other factors as our board of directors deems relevant. In addition, our charter allows us to issue preferred stock that could have a preference on distributions and could limit our ability to make distributions to our common stockholders.

If our operations do not generate sufficient cash flow to enable us to pay our intended or required distributions, we may be required either to fund distributions from alternative sources, including working capital, borrowings, asset sales or equity capital, or reduce such distributions. Our actual results of operations will be affected by a number of factors, including the revenues we generate, our operating expenses, interest expense and unanticipated expenditures, among others. For more information regarding risk factors that could materially and adversely affect us and our ability to make cash distributions. Additionally, under certain circumstances, agreements relating to our indebtedness could limit our ability to make distributions to our stockholders, see "Risk Factors."

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**CAPITALIZATION**

The following table sets forth our historical cash and cash equivalents and capitalization as of September 30, 2025 and our pro forma cash and cash equivalents and capitalization as of September 30, 2025 to give effect to this offering, the formation transactions and the other adjustments described in the below, based on the mid-point of the price range set forth on the front cover of this prospectus. This table should be read in conjunction with the sections entitled "Use of Proceeds," "Summary Historical and Pro Forma Combined Consolidated Financial Data," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical combined consolidated financial statements and related notes included elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
|  | **As of<br> September 30,<br> 2025** | **As of<br> September 30,<br> 2025** |
|  | **Historical** | **Unaudited<br> Pro Forma** |
| **Cash and restricted cash:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $704 | $6561152 |
| Restricted cash | $- | $536963 |
| **Total cash and restricted cash** | $704 | $7098115 |
| **Debt:** |  |  |
| &nbsp;&nbsp;&nbsp; Mortgage notes payable, net | $- | $34129185 |
| **Total debt** | $- | $34129185 |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp; Common stock, $0.01 par value per share; 100,000,000 shares authorized, 100 shares issued and outstanding, actual; 100,000,000 shares authorized and 4,975,500 shares issued and outstanding, pro forma<sup>(1)</sup> | $- | $49755 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital |  | 22298909 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (771) | (7628271 |
| **Total stockholders' equity** | $(771) | $14720393 |
| **Total capitalization** | $(771) | $48849578 |

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(1) Pro forma common stock outstanding includes: (i) 3,000,000 shares of our common stock to be issued in this offering, (ii) 1,200,000 OP
units held by the continuing investors following the formation transactions, (iii) 450,000 shares of our common stock issuable upon the
exercise in full of the underwriters' option to purchase additional shares and (iv) 325,500 shares of our common stock issuable
in the future under the 2026 Equity Incentive Plan (such number assumes full participation in this offering from existing investors and
that the underwriters exercise the full over-allotment option), which includes up to 263,655 shares of restricted stock issued to certain
of our directors and officers in connection with this offering, as more fully described in "Certain Relationships and Related Party
Transactions—Equity Incentive Plan", which represents 7% of the total pro forma common stock and OP units that are expected
to be outstanding upon the consummation of the Company's public offering.

(2) In December 2025, we repaid
 $2.0 million in principal under the loan secured by 165 Township Line Road.

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**DILUTION**

**Dilution After This Offering**

Purchasers of our common stock offered by this prospectus will experience an immediate and substantial dilution of the net tangible book value per share of our common stock from the initial public offering price. Net tangible book value per share represents the amount of total tangible assets less total tangible liabilities, divided by the number of outstanding shares of common stock, assuming the exchange of OP units for shares of our common stock on a one-for-one basis. As of September 30, 2025, we had a net tangible book value of approximately $(771), or $(7.71) per share. After giving effect to the sale of our common stock by us in this offering, the application of the aggregate net proceeds received by us therefrom, completion of the formation transactions and the other adjustments described in the unaudited pro forma consolidated financial statements included elsewhere in this prospectus, our pro forma net tangible book value as of September 30, 2025 would have been $14.7 million, or $2.96 per share of common stock (assuming the exchange of OP units for shares of common stock on a one-for-one basis). This amount represents an immediate increase in net tangible book value of $10.67 per share to our continuing investors and an immediate dilution in pro forma net tangible book value of $2.04 per share from the public offering price of $5.00 per share of common stock to our new investors. The following table illustrates this per share dilution.

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| | | |
|:---|:---|:---|
| Initial public offering price per share |  | $5.00 |
| &nbsp;&nbsp;&nbsp; Net tangible book value per share as of September 30, 2025, before the formation transactions and this offering | $(7.71) |  |
| &nbsp;&nbsp;&nbsp; Net increase in net tangible book value per share attributable to the formation transactions and this offering | $10.67 |  |
| Pro forma net tangible book value per share after the formation transactions and this offering<sup>(1)</sup> |  | $2.96 |
| Dilution in pro forma net tangible book value per share to new investors<sup>(2)</sup> |  | $2.04 |

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(1) The pro forma net tangible book value per share after the formation transactions,
 this offering and other pro forma adjustments was determined by dividing net tangible book value of approximately $14,720,393 by
 pro forma stock outstanding including: (i) 3,000,000 shares of common stock, (ii) 1,200,000 OP units held by the continuing investors
 following the formation transactions, (iii) 450,000 shares of our common stock issuable upon the exercise in full of the underwriters'
 option to purchase additional shares and (iv) 325,500 shares of our common stock issuable in the future under the 2026 Equity Incentive
 Plan (such number assumes full participation in this offering from existing investors and that the underwriters exercise the full
 over-allotment option), which includes up to 263,655 shares of restricted stock issued to certain of our directors and officers in
 connection with this offering, which represents 7% of the total pro forma common stock and OP units that are expected to be outstanding
 upon the consummation of the Company's public offering.

(2) The dilution in pro forma net tangible book value per share to new investors was determined by subtracting pro forma net tangible book value per share after the formation transactions, this offering and other pro forma adjustments from the assumed initial public offering price paid by a new investor for our common stock.

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**Differences Between New Investors and Continuing Investors**

The table below summarizes, as of September 30, 2025, on a pro forma basis after giving effect to the formation transactions and this offering, the differences between the number of shares of common stock (3,000,000) and OP units (including 1,200,000 OP units held by the continuing investors following the formation transactions and the new investors purchasing shares in this offering, the total consideration paid and the average price per share of common stock or OP unit paid by the continuing investors following the formation transactions and paid in cash by the new investors purchasing shares in this offering (based on the net tangible book value attributable to the continuing investors in the formation transactions).

With No Over-Allotment Option Exercise

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common<br> Stock/OP Units<br> Issued** | **Common<br> Stock/OP Units<br> Issued** | **Pro Forma<br> Net Tangible Book<br> Value of<br> Contribution/Cash<sup>(1)</sup>** | **Pro Forma<br> Net Tangible Book<br> Value of<br> Contribution/Cash<sup>(1)</sup>** | **Average<br> Price Per** |
|  | **Number** | **Percentage** | **Amount** | **Percentage** | **Share** |
| Continuing investors<sup>(2)</sup> | 1200000 | 26.70% | $3371934 | 26.70% | $5.00 |
| Restricted share grants<sup>(3)</sup> | 294000 | 6.54% | 826124 | 6.54% | 5.00 |
| New investors | 3000000 | 66.76% | 8429835 | 66.76% | 5.00 |
| Total<sup>(4)</sup> | 4494000 | 100.00% | $12627893 | 100.00% | $2.81 |

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(1) Represents pro forma net tangible book value as of September 30, 2025 after giving effect to the formation transactions and this offering.

(2) Includes 1,200,000 OP units to be issued in connection with the formation transactions, which represents 100% of the previous investors receiving OP units and continuing to be investors subsequent to the formation transactions.

(3) Includes 294,000 shares of our common stock issuable in the future
 under the 2026 Equity Incentive Plan, as more fully described in "Certain Relationships and Related Party
 Transactions—Equity Incentive Plan", which represents 7% of the total pro forma common stock and OP units that are
 expected to be outstanding upon the consummation of the Company's public offering.

(4) Includes (i) 3,000,000 shares of common stock to be sold in this offering (ii) 1,200,000 OP units to be issued in connection with the
formation transactions, and (iii) 294,000 shares of common stock issuable in the future under the 2026 Equity Incentive Plan, which includes
up to 238,140 shares of restricted stock issued to certain of our directors and officers in connection with this offering.

With Full Over-Allotment Option Exercise

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common<br> Stock/OP Units<br> Issued** | **Common<br> Stock/OP Units<br> Issued** | **Pro Forma<br> Net Tangible Book<br> Value of<br> Contribution/Cash<sup>(1)</sup>** | **Pro Forma<br> Net Tangible Book<br> Value of<br> Contribution/Cash<sup>(1)</sup>** | **Average<br> Price Per** |
|  | **Number** | **Percentage** | **Amount** | **Percentage** | **Share** |
| Continuing investors<sup>(2)</sup> | 1200000 | 24.12% | $3550291 | 24.12% | $5.00 |
| Restricted share grants<sup>(3)</sup> | 325500 | 6.54% | 963016 | 6.54% | 5.00 |
| New investors | 3450000 | 69.34% | 10207086 | 69.34% | 5.00 |
| Total<sup>(4)</sup> | 4975500 | 100.00% | $14720393 | 100.00% | $2.96 |

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(1) Represents pro forma net tangible book value as of September 30, 2025 after giving effect to the formation transactions and this offering.

(2) Includes 1,200,000 OP units to be issued in connection with the formation transactions, which represents 100% of the previous investors receiving OP units and continuing to be investors subsequent to the formation transactions.

(3) Includes 325,500 shares of our common stock
 issuable in the future under the 2026 Equity Incentive Plan, as more fully described in "Certain Relationships and Related
 Party Transactions—Equity Incentive Plan", which represents 7% of the total pro forma common stock and OP units that are
 expected to be outstanding upon the consummation of the Company's public offering.

(4) Includes (i) 3,450,000 shares of common stock to be sold in this offering (ii) 1,200,000 OP units to be issued in connection with the
formation transactions, and (iii) 325,500 shares of common stock issuable in the future under the 2026 Equity Incentive Plan, which includes
up to 263,655 shares of restricted stock issued to certain of our directors and officers in connection with this offering.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION**

**AND RESULTS OF OPERATIONS OF JOSS REALTY REIT, INC.**

*You should read the following discussion of our results of operations and financial condition in connection with our condensed combined consolidated financial statements and notes thereto of our predecessor as of December 31, 2024 and 2023 and the unaudited condensed combined consolidated financial statements and notes thereto of our predecessor for the nine months ended September 30, 2025 and 2024. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors. See the "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" sections above.* 

*Management's discussion and analysis of financial condition and results of operations are based upon our unaudited condensed financial statements as of September 30, 2025 and for the period from April 15, 2025 (inception) to September 30, 2025 which have been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). The preparation of these financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate these estimates on a regular basis. These estimates are based on management's historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.*

**Overview**

JOSS Realty REIT, Inc. (the "Company") is a Maryland corporation formed on April 15, 2025 (inception). The Company has not yet commenced operations. Upon the completion of the Formation Transactions, as described below, the Company expects to conduct its business through a traditional UPREIT structure in which substantially all its assets are owned by subsidiaries of JOSS Realty Holdings, LP (the "Operating Partnership"). The Company will be the general partner of the Operating Partnership. Any activity of the Company relates to the Company's formation and preparation for its Initial Public Offering. The Company will not generate any operating revenues until after the completion of the Initial Public Offering and the completion of the Formation Transactions, at the earliest.

Prior to the completion of the proposed Initial Public Offering and the completion of the Formation Transactions, each of the properties that are expected to be contributed to the Operating Partnership are owned by JOSS Realty Partners B, LLC. While JOSS Realty Partners B, LLC owns and controls other certain properties, the properties included in the Formation Transactions, referred to as its initial portfolio, are as follows:

55 Walkers Brook (Reading, Massachusetts)

165 Township Line Road (Jenkintown, Pennsylvania)

The Formation Transactions further include JOSS Realty Partners B, LLC's investment in Napa Square (Napa, California), for which it owns 26.6% of the outstanding equity through a Tenancy in Common Agreement (the "TIC" or the "TIC Agreement").

*The Proposed Initial Public Offering*

The Company is planning to complete an offering (the "Proposed Initial Public Offering") whereby the ownership interests in the properties outlined in the initial portfolio will be contributed to the Operating Partnership in exchange for ownership interests in the Operating Partnership (the "Proposed Exchange").

*The Operating Partnership*

Following the completion of the Proposed Initial Public Offering and the Formation Transactions, as outlined below, substantially all the Company's assets will be held by, and its operations will be conducted through, the Operating Partnership. The Company will be the sole general partner of the Operating Partnership. As of the date of these condensed unaudited interim financial statements, the limited partnership agreement between the Company and the Operating Partnership, which governs the Operating Partnership, has not yet been executed.

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*Formation Transactions*

 

Each property that is controlled by JOSS Realty Partners B, LLC within the initial portfolio will be owned by the Operating Partnership upon the completion of the Offering and the Formation Transactions. These properties are currently owned, directly or indirectly by partnerships, limited liability companies or corporations in which JOSS Realty Partners B, LLC and its affiliates, certain of the Company's other directors and executive officers and their affiliates, and/or other third parties own a direct or indirect interest. The Company refers to these partnerships, limited liability companies and corporations collectively as the "Ownership Entities." The condensed unaudited interim financial statements are prepared under the assumption that prior to or contemporaneously with completing the Offering and related Formation Transactions, the current owners of the following will enter into contribution agreements with the Operating Partnership, pursuant to which they will contribute their interests in the Ownership Entities to the Company or the Operating Partnership in exchange for partnership units of the Operating Partnership:

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook (Reading, Massachusetts)

&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road (Jenkintown, Pennsylvania)

&nbsp;&nbsp;&nbsp;&nbsp;c. Napa Square (Napa, California)

The amount of cash and Operating Partnership Units that prior investors will receive in exchange for the properties was determined by management and not through arm's length negotiations with an independent third-party.

Upon the completion of the Formation Transactions, the Company will indirectly own the equity interests in the initial portfolio.

**Results of Operations and Known Trends or Future Events**

We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities and those necessary to prepare for the Proposed Initial Public Offering. Following the Proposed Initial Public Offering and the execution of the Formation Transactions, all of our assets will be held by, and all of our operations will be conducted through, the Operating Partnership. There has been no significant change in our financial or trading position and no material adverse change has occurred since April 15, 2025, our inception.

**Liquidity and Capital Resources**

Our liquidity needs have been satisfied prior to the completion of the Proposed Initial Public Offering through funding provided by the properties that are currently controlled by JOSS Realty Partners B, LLC within the initial portfolio.

**Going Concern**

As of September 30, 2025, we did not have any operations. Furthermore, we did not have any cash or working capital. These conditions raise substantial doubt about our ability to continue as a going concern. Our plans are to address this uncertainty through a Proposed Initial Public Offering. There is no assurance that our plans to complete the Proposed Initial Public Offering will be successful.

**Recently Issued Accounting Literature** 

See Note 2 of our audited financial statements as of April 15, 2025 (inception) included elsewhere in this prospectus for information about recent accounting pronouncements, the timing of their adoption, and our assessment, if any, of their potential impact on our financial condition and results of operations.

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**Emerging Growth Company and Smaller Reporting Company Status** 

In April 2012, the JOBS Act was enacted. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Upon the closing of the Proposed Exchange, we would become an emerging growth company and could delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We plan to elect the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

In addition, as an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include:

● being permitted to present only two years of audited financial statements in addition to any required unaudited interim financial statements, with correspondingly reduced disclosure in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations";

● an exception from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended;

● reduced disclosure about our executive compensation arrangements in our periodic reports, proxy statements and registration statements;

● exemptions from the requirements of holding non-binding advisory votes on executive compensation or golden parachute arrangements; and

● an exemption from compliance with the requirements of the Public Company Accounting Oversight Board regarding the communication of critical audit matters in the auditor's report on financial statements.

We would cease to qualify as an emerging growth company on the date that is the earliest of: (i) the last day of the fiscal year following the fifth anniversary of the first sale of our common stock pursuant to an effective registration statement, (ii) the last day of the fiscal year in which we have more than $1.235 billion in total annual gross revenues, (iii) the date on which we are deemed to be a "large accelerated filer" under the rules of the SEC, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the prior June 30th, or (iv) the date on which we have issued more than $1.0 billion of non-convertible debt over the prior three-year period. We may choose to take advantage of some but not all of these reduced reporting burdens. We have taken advantage of certain reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different than you might obtain from other public companies in which you hold equity interests.

We have elected to take advantage of certain of the reduced disclosure obligations in this prospectus and may elect to take advantage of other reduced reporting requirements in our future filings with the SEC. As a result, the information that we provide to our stockholders may be different than what you might receive from other public reporting companies in which you hold equity interests.

We have elected to avail ourselves of the provision of the JOBS Act that permits emerging growth companies to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. As a result, we will not be subject to new or revised accounting standards at the same time as other public companies that are not emerging growth companies.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION**

**AND RESULTS OF OPERATIONS OF JOSS REALTY**

*You should read the following discussion and analysis of our financial condition, results of operations and cash flows together with the unaudited condensed combined consolidated financial statements as of and for the nine months ended September 30, 2025 and related notes, and the combined consolidated financial statements as of and for the year ended December 31, 2024 and related notes included elsewhere in this prospectus.*

*Where appropriate, the following discussion includes analysis of the effects of our formation transactions, certain other transactions and this offering. These effects are reflected in the pro forma combined consolidated financial statements located elsewhere in this prospectus.*

*This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors. See the "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" sections above.*

*Management's discussion and analysis of financial condition and results of operations are based upon our unaudited condensed combined consolidated financial statements as of and for the nine months ended September 30, 2025 and 2024 and our combined consolidated financial statements as of and for the years ended December 31, 2024 and 2023, which have been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). The preparation of these financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate these estimates on a regular basis. These estimates are based on management's historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.*

**Overview**

We are a real estate investment company focused on acquiring, improving, owning and managing diverse multi-tenant office properties focusing in diverse, strong economic urban and close suburban nodes in major, top-25 Metropolitan Statistical Areas ("MSAs").

JOSS Realty (the "Company") refers to certain properties owned by JOSS Realty Partners B, LLC ("JOSS B") and its affiliates on a combined consolidated basis. The unaudited condensed combined consolidated financial information as of and for the nine months ended September 30, 2025 and 2024 and combined consolidated financial information as of and for the years ended December 31, 2024 and 2023 herein include the accounts and operations of the following entities and their respective properties, which we consider to be the historical financial performance of the accounting predecessor:

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook, Reading, MA ("55 Walkers Brook")

&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road, Jenkintown, PA ("165 Township Line Road")

The unaudited condensed combined consolidated financial information as of and for the nine months ended September 30, 2025 and 2024 and combined consolidated financial information as of and for the years ended December 31, 2024 and 2023 further include the Company's investment in 1401-1485 1st Street, Napa, CA ("Napa Square"), for which it owns 26.6% of the outstanding equity through a Tenancy in Common Agreement (the "TIC" or the "TIC Agreement").

The Company's primary investment objectives are to increase the cash flow and value of its portfolio of office properties thereby increasing the value of its equity for its limited partners. To accomplish these goals, the Company intends to continue focusing on its investment strategy, which it has been executing since 2005, to acquire and improve under-valued and compelling office properties in the economically diverse MSA's of the Northeast, Mid-Atlantic, Southeast, and the West.

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**The Company**

We own 100% of the interests in two multi-tenant office properties and 26.6% ownership in a multi- tenant office property, all of which we refer to collectively as our "initial portfolio." These properties are as follows:

55 Walkers Brook - We acquired 55 Walkers Brook in December 2018 for $32.25 million.

165 Township Line Road - We acquired 165 Township Line Road in October 2017 for $12.1 million.

Napa Square - We acquired a 26.6% equity interest in Napa Square in April 2016 for $11.0 million, inclusive of $5.0 million in cash and our proportionate share of a term loan agreement for a total of $5.9 million.

On June 20, 2025, 165 Township Line Road entered into an Agreement and Purchase of Sale (the "Agreement") to sell certain building and land assets included within this property to a third-party. The Agreement contains standard provisions associated with the sale of building and land assets and provides a purchase price of $2.5 million. As a result of the closing of the sale, 165 Township Line Road only holds ownership in one building asset. The closing of the sale occurred on December 23, 2025. The Company used $2.0 million in proceeds from the sale to pay down existing indebtedness. As a result of the sale, one of the existing tenants (Wells Fargo) in the sold property is expected to relocate into the remaining asset in 165 Township Line Road and the other tenant (District 1199C Training and Upgrading Fund) is expected to terminate its lease.

As of September 30, 2025, the multi-tenant office properties are comprised of three buildings with an aggregate of approximately 308,000 net rentable square feet and 33 total tenants, and are approximately 72% leased, based on the total rentable square footage of our initial portfolio. Our initial portfolio includes properties located in three markets within major MSAs in the Northeast and on the West Coast: Boston, Philadelphia and the San Francisco Bay Area. We intend to seek additional opportunities in the MSAs where we currently own properties, and other MSAs such as Washington D.C., Los Angeles, Miami/West Palm Beach, and New York. Our tenants come from a variety of industries, including engineering, banking, consulting, consumer retail, and healthcare, and include investment grade tenants such as Wells Fargo, Raymond James, Charles Schwab, UBS and Oppenheimer. These five tenants make up a total of 14% of our total current leased square footage. The weighted average lease term of our properties is 4.7 years.

We believe that current return to office momentum provides an opportunity for a compelling repricing of our existing portfolio at an attractive basis for investors. The current market conditions will also enable us to strategically capitalize on attractive new acquisitions and achieve accretive growth. For new acquisitions, we will target boutique office assets in sustainable, desirable locations. We believe that many of these will be value-add properties where we will strategically invest capital and reposition assets to be best in class in its competitive set, highlighting asset strengths, new amenity programs, and capital available for tenant improvements and leasing commissions.

**The Proposed Exchange**

The Company is planning to complete an exchange (the "Proposed Exchange") whereby the Company's and certain of its limited partners' ownership interests in the properties outlined in its initial portfolio will be contributed to a Delaware limited partnership in exchange for ownership interests in the limited partnership (the "Operating Partnership"). This contribution will be completed through the execution of the formation transactions as further outlined below.

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**The Operating Partnership**

Following the completion of the Proposed Exchange and the formation transactions, as outlined below, substantially all the Company's assets will be held by, and its operations will be conducted through, the Operating Partnership. JOSS Realty REIT, Inc., the company that is completing an initial public offering and for which the Company is a predecessor, will be the sole general partner of the Operating Partnership, a related party.

**Formation Transactions**

Each property owned by the Company will be owned by the Operating Partnership upon the completion of the Proposed Exchange and the formation transactions. These properties are currently owned, directly or indirectly by partnerships, limited liability companies or corporations, in which JOSS B and its affiliates, certain of the Company's other directors and executive officers and their affiliates, and/or other third parties own a direct or indirect interest. The Company refers to these partnerships, limited liability companies and corporations collectively as the "Ownership Entities."

The Company will take steps to contribute its ownership interests in its initial portfolio to the Operating Partnership. The amount of cash and OP units that prior investors will receive in exchange for the properties was determined by management and not through arm's length negotiations with an independent third party. In determining the fair market value of its initial portfolio, management undertook a diligence process that took into account, among other factors, market capitalization rates, net operating income, landlord obligations to fund future capital expenditures, lease duration, functionality and ability to release should a tenant not renew its lease, tenant creditworthiness and discount rates based on tenant creditworthiness, property location, property age, comparable sales information and capitalization rates for properties leased to tenants with similar credit profiles and lease durations, tenant operating performance and the fact that brokerage commissions would not be payable in connection with the formation transactions. No single factor was given greater weight than any other in valuing the Company's initial portfolio. The value attributable to its initial portfolio does not necessarily bear any relationship to the value of any particular property within that portfolio. Furthermore, the Company did not obtain any third-party property appraisals for the properties in the initial portfolio or any other independent third-party valuations or fairness opinions in connection with the formation transactions.

Upon the completion of the formation transactions, JOSS Realty REIT, Inc. will indirectly own the equity interests in the Company's initial portfolio. Furthermore, JOSS Realty REIT, Inc. will operate all the properties within this portfolio through its property managers.

**Investment Strategy**

Our investment strategy is to acquire and improve undervalued and compelling office properties in the economically diverse MSAs of the Northeast, Mid-Atlantic, Southeast, and West Coast.

We believe the current commercial real estate market conditions will enable us to strategically capitalize on attractive new acquisitions and achieve accretive growth. For new acquisitions, we will target boutique office assets in sustainable, desirable locations. We believe that many of these will be value-add properties where we will strategically invest capital and reposition assets to be best in class in its competitive set, highlighting asset strengths, new amenity programs, and capital available for tenant improvements and leasing commissions. These have been key elements of our strategy, success and track record since our inception in 2005. We cannot assure you that we will achieve our investment objectives.

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Our initial portfolio includes properties located in three markets within major MSAs in the Northeast, Mid-Atlantic, and West Coast. We intend to seek additional opportunities in the MSAs where we currently own properties, and other MSAs such as Los Angeles, Miami/West Palm Beach, and New York. We believe that the top 25 MSAs are attractive areas for investment in office properties for the following reasons.

● Diverse economic hubs: The MSAs in which we invest are home to large international, national and regional employers across a wide range of industries including technology, media, and finance. This diversity helps buffer against economic downturns. The tenant base of our initial portfolio features diverse industries such as engineering, banking, fitness and healthcare.

● Desirability of living: There is a trend towards establishing offices in vibrant neighborhoods where tenants have access to amenities. Commercial properties located in walkable areas with strong access to public transportation are increasingly desirable. Studies show a strong correlation between walkable features – like mixed-use development, density, and efficient public transit access – and an increase in property values, rents, retail sales, occupancy, absorption and price resilience in downturns, resulting in increased commercial demand. Preference for urban and walkable workspaces are not limited to millennials and driven across generations.

● Population growth: Many MSAs are experiencing population and economic growth with above average employment growth forecasts, leading to increased demand for high quality office space while supply continues to decline due to the slowdown in new construction and obsolete buildings being taken offline for conversions or teardown. According to the Census Bureau, in 2024 the top 25 MSAs have made up more than 50% of total GDP in the United States. A growing workforce often correlates with a demand for office environments nearby. Because of this population and economic growth, the opportunities in such MSAs, as well as the demand for Class A office space, will continue to grow.

● Sales Volume: The volume of office building sales increased to $63.6 billion in 2024, up 20% from 2023, according to data firm MSCI, the first increase since 2021. For example, in December 2024 Norges Bank Investment Management, a giant Norwegian sovereign-wealth fund, purchased the 50.1% stake it did not own in eight office properties in Boston, San Francisco, and Washington, D.C., in a deal that valued the properties at $1.9 billion, which are areas in which we currently own properties. In the second quarter of 2025, single-asset office transaction volume reached $12.0 billion.

**Factors that May Impact Our Operating Results**

***Rental Revenue***

We derive revenues primarily from rents, expense reimbursements and other income received from tenants under existing leases at each of our properties. Tenant reimbursements consist of payments made by tenants to us under contractual lease obligations to reimburse a portion of the property operating expenses and real estate taxes incurred at each property. The amount of net rental revenue and reimbursements that we receive depends principally on our ability to lease available space, re-lease space to new tenants upon the scheduled or unscheduled termination of leases, renew expiring leases and maintain or increase our rental rates. Factors that could affect our rental revenue in the future include, but are not limited to: local, regional or national economic conditions; an oversupply of, or a reduction in demand for, suburban office space; changes in market rental rates; our ability to provide adequate services and maintenance at our properties; and fluctuations in interest rates that could adversely affect our rental revenue in future periods. Future economic or regional downturns affecting our submarkets or downturns in our tenants' industries could impair our ability to lease vacant space and renew or re-lease space as well as the ability of our tenants to fulfill their lease commitments and could adversely affect our ability to maintain or increase the occupancy at our properties.

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***Leasing***

Our operating office properties were 72% leased at September 30, 2025. Our operating revenues are dependent upon entering into leases with, and collecting rents from, our tenants. Tenants whose leases are expiring may want to decrease the space they lease and/or may be unwilling to continue their lease. When leases expire or are terminated, replacement tenants may not be available upon acceptable terms and market rental rates may be lower than the previous contractual rental rates. Also, our tenants may approach us for additional concessions in order to remain open and operating. The granting of these concessions may adversely affect our results of operations and cash flows to the extent that they result in reduced rental rates, additional capital improvements, or allowances paid to, or on behalf of, the tenants.

***Tenant Credit Risk***

The economic condition of our tenants may deteriorate, which could negatively impact their ability to fulfill their lease commitments and in turn adversely affect our ability to maintain or increase the occupancy level and/or rental rates of our properties. Existing and/or potential tenants also may shift to a more cautionary mode with respect to leasing and look to consolidate space, reduce overhead and preserve operating capital, while others may defer strategic decisions, including entering into new, long-term leases at properties.

We consistently monitor the credit quality of our portfolio by seeking to lease space to creditworthy tenants that meet our underwriting and operating guidelines and we actively monitor tenant creditworthiness following the initiation of a lease. When we assess tenant credit quality, we (i) review relevant financial information, including financial ratios, net worth, revenue, cash flows, leverage and liquidity; (ii) evaluate the depth and experience of the tenant's management team; and (iii) assess the strength/growth of the tenant's industry. This evaluation assists us in determining whether to lease to such potential tenant and, if so, the initial tenant security deposit. The factors considered in determining the credit risk of our tenants include, but are not limited to: payment history; credit status and change in status (credit ratings for public companies are used as a primary metric); change in tenant space needs (i.e., expansion/downsize); tenant financial performance; economic conditions in a specific geographic region; and industry specific credit considerations. We believe the credit risk of our portfolio is mitigated by the high quality of our existing tenant base, reviews of prospective tenants' risk profiles prior to lease execution and consistent monitoring of our portfolio to identify and address potential problem tenants.

***Market Conditions***

As of September 30, 2025, all of our annual base rent came from commercial office properties in certain states and MSAs. These geographic concentrations could affect our operating performance. See "Risks Related to Our Business and Properties" included elsewhere within this registration statement.

***Operating Expenses***

Operating expenses generally consist of repairs and maintenance, insurance, real estate taxes, security, utilities, and property-related payroll. Factors that may affect our ability to control these operating costs include: increases in insurance premiums, changes in tax rates, the cost of periodic repair, renovation costs and the cost of re-leasing space, the cost of compliance with governmental regulation, including zoning and tax laws, and the potential for liability under applicable laws. As noted above, we generally lease our properties to tenants pursuant to long-term leases that require the tenant to pay all property operating expenses. Recoveries from tenants are recognized as revenue on an accrual basis over the periods in which the related expenditures are incurred. Tenant reimbursements and operating expenses are recognized on a gross basis because we (i) control the goods and services, the purchase of which, gives rise to the reimbursement obligation, (ii) have discretion in selecting the vendors and suppliers and (iii) bear the credit risk in the event the tenants do not reimburse us.

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The expenses of owning and operating a property are not necessarily reduced when circumstances, such as market factors and competition, cause a reduction in income from the property. If revenues drop, we may not be able to reduce our expenses accordingly. Costs associated with real estate investments, such as real estate taxes and maintenance, generally will not be materially reduced even if a property is not fully occupied or other circumstances cause our revenues to decrease. As a result, if revenues decrease in the future, static operating costs may adversely affect our future cash flow and results of operations. If similar economic conditions exist in the future, we may experience future losses.

As a public company, our annual general and administrative expenses are anticipated to be meaningfully higher than those incurred since our inception due to, among other costs, board of directors' fees and expenses, directors and officers insurance, legal compliance cost, reporting costs in accordance with the standards of the Securities and Exchange Commission (the "SEC"), incremental audit and tax fees and other costs of operating a public company. Increases in costs from any of the foregoing factors may adversely affect our future results and cash flows.

***Interest Rates***

We expect that the interest rates associated with our debt will be generally fixed. As such, we do not expect that future changes in interest rates will impact our overall performance. While we may seek to manage our exposure to future changes in rates through refinancings which could include variable rates, we would look to enter into interest rate swap agreements or interest rate caps to mitigate risk.

***Lease Expirations***

Our ability to re-lease space subject to expiring leases will impact our results of operations and is affected by economic and competitive conditions in our markets as well as the desirability of our individual properties. As of September 30, 2025, in addition to approximately 86,607 rentable square feet of currently available space in our office buildings, four leases (other than month-to-month leases) representing 3,009 rentable square feet, or 1.0% of our total rentable square feet and 1.5% of our total annualized rent, were scheduled to expire during the quarter ending December 31, 2025. Three of these leases representing 1,714 rentable square feet, or 0.6% of our total rentable square feet and 0.8% of our total annualized rent were extended for a one-year period, and one lease representing 1,295 rentable square feet, or 0.4% of our total rentable square feet and 0.7% of our total annualized rent terminated during the quarter ended December 31, 2025.

We expect to renew leases scheduled to expire during the year ending December 31, 2026 consistent with our historical renewal rate. We calculate our "renewal rate" as the total square footage under renewal and expansion leases (without giving effect to incremental square footage under expansion leases or new leases) executed during the applicable period divided by the total square footage under renewable leases scheduled to expire during such period. We define "renewable leases" as all leases scheduled to expire during the applicable period, excluding terminated/defaulted leases, short-term/swing space leases and leases associated with known vacates at the time of acquisition.

The following table sets forth certain historical information regarding our renewal rates during the periods set forth below.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine months ended**<br>**September 30,**<br>**2025** | **Nine months ended**<br>**September 30,**<br>**2024** | **Year ended**<br>**December 31,**<br>**2024** | **Year ended**<br>**December 31,**<br>**2023** |
| Total scheduled lease expirations | 2 | 9 | 13 | 8 |
| Terminated/defaulted leases | 1 |  |  | 1 |
| Short-term/swing space leases |  | 1 | 1 | 1 |
| Known vacates | 1 | 2 | 5 | 3 |
| &nbsp;&nbsp;&nbsp;Renewable leases | 1 | 8 | 12 | 6 |
| Lease renewals | 0 | 7 | 8 | 4 |
| &nbsp;&nbsp;&nbsp;Renewal rate | 0% | 88% | 67% | 67% |

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**Critical Accounting Estimates**

Our discussion and analysis of the historical financial condition and results of operations are based upon the Company's unaudited condensed combined consolidated financial statements as of and for the nine months ended September 30, 2025 and 2024 and the combined consolidated financial statements as of and for the years ended December 31, 2024 and 2023, which have been prepared in accordance with US GAAP. The preparation of these financial statements in conformity with US GAAP requires management to make estimates and assumptions in certain circumstances that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses in the reporting period. Actual amounts may differ from these estimates and assumptions. We have provided a robust summary of the significant accounting policies in the notes to the combined consolidated financial statements of the Company as of and for the years ended December 31, 2024 and 2023 beginning on page F-12 of this prospectus.

We have summarized below those critical accounting estimates that require material subjective or complex judgments and that have either had the most significant impact on our financial condition and results of operations or are reasonably likely to have a significant impact on our financial condition and results of operations. We evaluate these estimates each reporting period, based upon information currently available and on various assumptions that we believe are reasonable as of the date hereof. Other companies in similar businesses may use different estimation assumptions and methodologies, which may impact the comparability of our results of operations and financial conditions to those of other companies.

*Purchase Price Allocation of Acquired Properties*

For acquisitions that are determined to be an asset acquisition, the purchase price (including related acquisition costs) is capitalized as part of the cost basis. We allocate the purchase price between land, buildings and improvements, site improvements, and identifiable intangible assets and liabilities such as amounts related to in-place leases and origination costs acquired, above- and below-market leases, based upon their fair values. The allocation of the purchase price requires judgment and significant estimates. The fair value of the land and building assets is determined on an as-if-vacant basis. Above- and below-market leases are based upon a comparison between existing leases upon acquisition and current market rents for similar real estate. The fair value of above- and below-market leases is equal to the aggregate present value of the spread between the contract and the market rate of each of the in-place leases over their remaining term. The fair values of in-place leases and origination costs are determined based on the estimates of carrying costs during the expected lease-up periods and costs that would be incurred to put the existing leases in place under the same market terms and conditions.

We use multiple sources to estimate fair value, including information obtained about each property as a result of our pre-acquisition due diligence and marketing and leasing activities. We also consider information and other factors that impact the determination of fair value such as market conditions, industry conditions that the tenant operates in, and characteristics of the real estate (e.g., location, size, value of comparative rental rates).

*Impairment of Long-Lived Assets*

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If such impairment is present, an impairment loss is recognized based on the excess of the carrying amount of the asset over its fair value. The net recoverable amount represents the undiscounted estimated future cash flow expected to be earned from the long-lived asset. In the case of real estate, the undiscounted estimated future cash flows are based on expected cash flows from the use and eventual disposition of the property. We estimate fair value using data such as operating income, estimated capitalization rates or multiples, and with regards to assets held for sale, negotiated selling price, less estimated costs of disposal.

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**Results of Operations**

*For the nine months ended September 30, 2025 and 2024*

The following table summarizes the unaudited condensed combined consolidated historical results of operations of the Company for the nine months ended September 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the<br> nine months ended<br> September 30,** | **For the<br> nine months ended<br> September 30,** | | |
|  | **2025** | **2024** | **Change**<br>**($)** | **Change**<br>**(%)** |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues | $4064899 | $4671263 | (606364) | -13% |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property operating expenses | 1521782 | 1636238 | (114457) | -7% |
| &nbsp;&nbsp;&nbsp;Real estate taxes | 473457 | 452937 | 20520 | 5% |
| &nbsp;&nbsp;&nbsp;Repairs and maintenance | 339159 | 337107 | 2052 | 1% |
| &nbsp;&nbsp;&nbsp;Management fees | 91314 | 113102 | (21788) | -19% |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 202433 | 217089 | (14656) | -7% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1247296 | 1019926 | 227370 | 22% |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 3875441 | 3776399 |  |  |
| &nbsp;&nbsp;&nbsp;Income from operations | 189458 | 894864 |  |  |
| &nbsp;&nbsp;&nbsp;Other expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 2208574 | 1788841 | 419733 | 23% |
| &nbsp;&nbsp;&nbsp;Loss on equity method investment | 16027 | 91684 | (75657) | -83% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses | 2224601 | 1880525 |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(2035143) | $(985661) |  |  |

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***Revenues***

The decrease of approximately $0.6 million, or 13%, relates primarily to recoveries from tenants. In the 2025 period, we refunded overcharges from 2024 operating expenses, as actual costs came in lower than the amounts originally estimated and billed. In contrast, in the 2024 period, we charged additional recoveries from tenants because actual 2023 expenses exceeded the budgeted amounts.

***Operating expenses:***

***Property operating expenses***

Property operating expenses were $1.5 million and $1.6 million for the nine months ended September 30, 2025 and 2024. The decrease in Property operating expenses was primarily due to decreased leasing activity and lower occupancy levels at the properties. The lower occupancy has led to decreases in associated costs for maintenance, utilities, and other property-related expenses.

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***Real estate taxes***

Real estate taxes of approximately $0.5 million were comparable for the nine months ended September 30, 2025 and 2024. The Company plans to continue to appeal tax assessments in the future where it believes it can be successful.

***Repairs and maintenance***

Repairs and maintenance were approximately $0.3 million for the nine months ended September 30, 2025 and 2024. The Company plans to continue monitoring the yearly expenses. Increases and decreases in these costs are primarily due to the timing and necessity of repairs and maintenance to keep the properties operating and are not driven by the number of leased units in a property.

***Management fees***

Management fees paid to the property managers for the Company's initial portfolio were comparable for the nine months ended September 30, 2025 and 2024. The Company enters into management agreements with different parties. These agreements automatically renew unless they are cancelled by either party. There were no material changes to any of the management agreements to cause a significant fluctuation in management fees.

***Other operating expenses***

Other operating expenses were approximately $0.2 million for the nine months ended September 30, 2025 and 2024. The Company's other operating expenses remained materially consistent when comparing the two periods.

***Depreciation and amortization***

Depreciation and amortization were $1.2 million and $1.0 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in depreciation and amortization is primarily associated with increased investments in real estate assets throughout 2024, for which, the Company has incurred additional depreciation expense during the nine months ended September 30, 2025.

***Non-operating expenses:***

***Interest expense***

Interest expense was $2.2 million for the nine months ended September 30, 2025 as compared to $1.8 million for the nine months ended September 30, 2024. The increase in interest expense of $0.4 million, or 23%, is primarily due to additional interest incurred by the company on its mandatorily redeemable preferred debt, and additional debt incurred by 55 Walkers Brook.

***Loss on equity method investments***

The Company owns 26.6% of the outstanding equity of Napa Square. The Company's loss from its equity method investment decreased $76 thousand for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 due to less operating expenses during the nine months ended September 30, 2025.

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*For the years ended December 31, 2024 and 2023*

The following table summarizes the combined consolidated historical results of operations of the Company for the years ended December 31, 2024 and 2023:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the<br> years ended<br> December 31,** | **For the<br> years ended<br> December 31,** | | |
|  | **2024** | **2023** | **Change**<br>**($)** | **Change**<br>**(%)** |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues | 6371871 | 6733419 | (361548) | -5% |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property operating expenses | 2194158 | 1864943 | 329215 | 18% |
| &nbsp;&nbsp;&nbsp;Real estate taxes | 588581 | 780297 | (191716) | -25% |
| &nbsp;&nbsp;&nbsp;Repairs and maintenance | 413681 | 427283 | (13602) | -3% |
| &nbsp;&nbsp;&nbsp;Management fees | 141648 | 169094 | (27446) | -16% |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 246917 | 283689 | (36772) | -13% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1385059 | 2057936 | (672877) | -33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 4970044 | 5583242 |  |  |
| &nbsp;&nbsp;&nbsp;Income from operations | 1401827 | 1150177 |  |  |
| &nbsp;&nbsp;&nbsp;Other expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 2640199 | 1916515 | 723684 | 38% |
| &nbsp;&nbsp;&nbsp;Loss on equity method investment | 105985 | 116088 | (10103) | -9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses | 2746184 | 2032603 |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(1344357) | $(882426) |  |  |

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***Revenues***

Revenue was $6.4 million for the year ended December 31, 2024 as compared to $6.7 million for the year ended December 31, 2023. Revenues decreased $0.4 million, or 5%. The decrease is attributable to one lease termination that occurred in 2023 at our 165 Township Line property. Lease terminations impact tenant recoveries as the associated expenses for services such as maintenance, utilities, and property taxes are no longer recouped from the tenants once they vacate. With this lease ending, the property no longer receives recoveries for these costs, leading to a reduction in overall tenant recoveries for the period.

***Operating expenses:***

***Property operating expenses***

Property operating expenses were $2.2 million for the year ended December 31, 2024 as compared to $1.9 million for the year ended December 31, 2023. Property operating expenses increased $0.3 million, or 18%. The increase in Property operating expenses was primarily due to increased leasing activity and higher occupancy levels at the properties, particularly at 55 Walkers Brook. The higher occupancy has led to increases in associated costs for maintenance, utilities, and other property-related expenses.

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***Real estate taxes***

Real estate taxes decreased by 25% to $0.6 million for the year ended December 31, 2024, from $0.8 million for the year ended December 31, 2023. The decrease in real estate taxes was primarily due to portfolio-wide reductions in tax assessments resulting from successful appeals performed by the Company. The Company plans to continue to appeal tax assessments in the future where it believes it can be successful.

***Repairs and maintenance***

Repairs and maintenance remained consistent at $0.4 million for both the years ended December 31, 2024 and 2023. These costs are variable where fluctuations in costs are not primarily driven by the number of leased units in a property.

***Management fees***

Management fees paid to the property managers for the Company's initial portfolio were comparable for the years ended December 31, 2024 and 2023. The Company enters into management agreements with different parties. These agreements automatically renew unless they are cancelled by either party. There were no changes to any of the management agreements to cause a significant fluctuation in management fees.

***Other operating expenses***

Other operating expenses were approximately $0.3 million for the years ended December 31, 2024 and 2023. Management was not aware of any significant transactions which would cause a significant fluctuation in other operating expenses for these periods.

***Depreciation and amortization***

Depreciation and amortization were $1.4 million for the year ended December 31, 2024 as compared to $2.1 million for the year ended December 31, 2023. Depreciation and amortization decreased $0.7 million, or 33%, due to a significant amount of property being fully depreciated during the year ended December 31, 2023.

***Non-operating expenses:***

***Interest expense***

Interest expense was $2.6 million for the year ended December 31, 2024 as compared to $1.9 million for the year ended December 31, 2023. There were no new significant debt instruments issued nor were there any significant refinancings that occurred during those periods then ended. However, interest expense increased due to interest accrued on the Company's mandatorily redeemable preferred equity and the issuance of a preferred dividend that was accrued of approximately $0.6 million relating to the Company's 55 Walkers Brook property.

***Loss on equity method investments***

The Company owns 26.6% of the outstanding equity of Napa Square. The Company's loss from its equity method investment of $0.1 million was comparable for the years ended December 31, 2024 and 2023.

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**Non-GAAP Financial Measures**

*Net Operating Income*

NOI is a metric we use to measure the operating performance of our initial portfolio, and consists of property-related revenue (which includes rental revenue and tenant reimbursement revenue) less operating expenses (which includes property operating expenses, real estate taxes, repairs and maintenance, and other operating expenses), excluding non-cash amounts recorded for straight-line rents including related provision for doubtful accounts. Net Operating Income should not be considered as alternatives to net loss determined in accordance with GAAP. We use this metric internally as a performance measure and believe it provides useful information to investors regarding our results of operations because it reflects only those income and expense items that are incurred at the property level, excluding general and administrative expenses. Therefore, we believe this metric is a useful measure for evaluating the operating performance of our real estate assets. Further, we believe this metric is useful to investors as a performance measure because, when compared across periods, it reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net loss. In addition, NOI is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. NOI excludes certain components from net loss to provide results that are more closely related to a property's results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates may distort operating performance at the property level. Other real estate companies may use different methodologies for calculating NOI, and accordingly, our presentation of NOI may not be comparable to other real estate companies' presentations of this metric.

The following tables present a reconciliation of our net loss to NOI for the periods presented:

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| | | |
|:---|:---|:---|
|  | **Nine months ended<br> September 30,<br> 2025** | **Nine months ended<br> September 30,<br> 2024** |
| Net loss | $(2035143) | $(985661) |
| Add: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1247296 | 1019926 |
| &nbsp;&nbsp;&nbsp;Operating expenses | 2536831 | 2643371 |
| &nbsp;&nbsp;&nbsp;Interest expense | 2208574 | 1788841 |
| Add/subtract: |  |  |
| &nbsp;&nbsp;&nbsp;Straight line rents | (298180) | 59949 |
| &nbsp;&nbsp;&nbsp;Recovery (provision) for credit losses | - | - |
| **NOI** | $3659378 | $4526425 |

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*EBITDA and Adjusted EBITDA*

EBITDA and Adjusted EBITDA are metrics we use to measure our operating performance. Adjusted EBITDA represents EBITDA, as further adjusted to eliminate the impact of transaction related costs and non-cash compensation expense. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income or loss determined in accordance with GAAP. Other real estate companies may use different methodologies for calculating EBITDA and Adjusted EBITDA or similar metrics, and accordingly, our presentation of EBITDA and Adjusted EBITDA may not be comparable to other real estate companies. EBITDA and Adjusted EBITDA may be useful because they help investors and lenders meaningfully evaluate and compare our operating performance from period to period by removing from our operating results the impact of our capital structure (primarily interest charges from our consolidated outstanding debt and, in the case of Adjusted EBITDA, the impact of transaction-related costs), certain non-cash expenses (primarily depreciation and amortization on our assets and non-cash compensation expense) that may vary from period to period based on our acquisition activities. These supplemental measures may help investors and lenders understand our ability to incur and service debt and to make capital expenditures. Neither EBITDA nor Adjusted EBITDA should be considered an alternative to net cash flow from operating activities, as determined by GAAP, as a measure of liquidity, and neither EBITDA nor Adjusted EBITDA is necessarily indicative of cash available to fund cash needs. In future periods, we also may exclude other items from Adjusted EBITDA that we believe may help investors compare our results. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA for the periods presented:

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| | | |
|:---|:---|:---|
|  | **Nine months ended<br> September 30,<br> 2025** | **Nine months ended<br> September 30,<br> 2024** |
| Net loss | $(2035143) | $(985661) |
| Add: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1247296 | 1019926 |
| &nbsp;&nbsp;&nbsp;Interest expense | 2208574 | 1788841 |
| **EBITDA** |  |  |
| Add/subtract: |  |  |
| &nbsp;&nbsp;&nbsp;Transaction related costs | - | - |
| **Adjusted EBITDA** | $1420727 | $1823106 |

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*Funds From Operations ("FFO")*

FFO is a supplemental measure of our performance. We present FFO calculated in accordance with the current definition of FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. FFO is a supplemental performance measure that is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies.

NAREIT defines FFO as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) and after adjustment for unconsolidated partnerships and joint ventures.

Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions (in contrast to the systematic decline reflected in depreciation charges required under GAAP), many investors consider FFO to be a useful alternative view of our operating performance, particularly with respect to our rental properties.

FFO is presented as supplemental financial measures and does not fully represent our operating performance. Other REITs may use different methodologies for calculating FFO or use other definitions of FFO and, accordingly, our presentation of these measures may not be comparable to other real estate companies. FFO should be considered an alternative to net cash flow from operating activities, as determined by GAAP, as a measure of liquidity, and FFO is not necessarily indicative of cash available to fund cash needs. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

The following tables present a reconciliation of our net loss to FFO for the periods presented:

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| | | |
|:---|:---|:---|
|  | **Nine months ended<br> September 30,<br> 2025** | **Nine months ended<br> September 30,<br> 2024** |
| Net loss | $(2035143) | $(985661) |
| Add: |  |  |
| &nbsp;&nbsp;&nbsp;Real estate depreciation and amortization | 1052257 | 852792 |
| &nbsp;&nbsp;&nbsp;Loss from equity method investments | 16027 | 91684 |
| **FFO available to Members** | $(966859) | $(41185) |

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**Liquidity and Capital Resources**

Liquidity is a measure of our ability to meet potential cash requirements, including our ongoing commitments to repay debt, fund our operations, acquire properties, make distributions to our stockholders, and other general business needs.

We currently expect that our principal sources of funds to meet short-term and long-term liquidity requirements for working capital, acquisitions, developments or redevelopment of properties, tenant improvements, maintenance and other capital expenditures, leasing costs, and repayment of outstanding debt will include:

● Cash flow from operations;

● Cash on hand;

● Borrowings under our new credit facilities we intend to enter into in connection with this offering and the formation transactions;

● Other forms of unsecured and secured financing;

● Net proceeds from the sale of properties; and

● Proceeds from common or preferred equity and/or debt offerings (including this offering).

Cash flow from operations is primarily dependent upon the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent, recoveries from our tenants and the level of our operating and other costs.

To date, the Company has funded its operations primarily through its normal operations, the issuance of preferred equity, and further contributions from its limited partners. For further information regarding the terms of the Company's preferred equity issued, please see the Company's unaudited combined consolidated financial statements and audited combined consolidated financial statements presented elsewhere within this prospectus.

The Company has further financed the purchase of certain real estate investment assets by issuing mortgage notes. The terms of the Company's mortgage notes outstanding are outlined within Note 5 within our unaudited condensed combined consolidated financial statements as of and for the nine months ended September 30, 2025 and 2024 and Note 6 within the combined consolidated audited financial statements as of and for the years ended December 31, 2024 and 2023, presented elsewhere within this prospectus.

The Company relies on its cash generated from operations and further contributions from its investors to fund its operations. As of September 30, 2025, the Company had cash of $782,607. The Company's cash from its operations are expected to meet its capital requirements in the near future. For the next twelve months, the Company will be required to make repayments on its outstanding mortgage notes of $13,869,633, which is inclusive of interest payments on 55 Walkers Brooks Road, the repayment of the principal of the 165 Township Loan and Security Agreement, and the repayment of the Company's 26.6% equity portion of the principal associated with the Napa Loan. The significant terms of the Company's outstanding mortgage notes are further outlined below:

 *55 Walkers Brooks*

On October 26, 2018, the Company entered into a loan agreement (the "55 Walkers Initial Loan Agreement") with East Boston Savings Bank for a total principal of $20,962,500. The 55 Walkers Initial Loan Agreement accrued interest annually with a fixed interest rate of 4.70% for the fixed term of the loan. On April 19, 2024, the Company entered into an amendment to the 55 Walkers Initial Loan Agreement (the "Amended Loan Agreement") with Rockland Trust Company, the successor to East Boston Savings Bank. This amendment extended the maturity date of the loan held by this property to April 19, 2027. It further increased the fixed interest rate to 7.12%. Payments of principal and interest relating to the Amended Loan Agreement are due on a monthly basis in arrears on the 20<sup>th</sup> day of each calendar month.

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In connection with the amendment to the loan agreement on April 19, 2024, as discussed above, the Company further entered into a secondary loan commitment with Rockland Trust Company (the "Secondary Loan Agreement") for a total of $1,000,000 in proceeds. The proceeds of the Secondary Loan Agreement are to be provided to the Company from time to time following the satisfaction of certain conditions, including permits and approvals regarding tenant improvements to the property. Subject to the satisfaction of receiving these permits and approvals, Rockland Trust Company would disburse funds relating to these tenant improvements to the Company. Future requests of advances can be made by the Company, which are subject to the same terms and conditions. As of September 30, 2025, the Company has been provided proceeds of 755,655.

 *165 Township Line Road*

On October 20, 2017, the Company entered into a loan and security agreement (the "Security Agreement") with Beneficial Bank for a total principal of $9,225,000. The Security Agreement accrues interest annually at a rate of 4.50% per year. $8,558,000 of the Security Agreement was advanced to the Company for the acquisition of 165 Township Line Road. The balance of the Security Agreement, or $667,000 was to be used for tenant improvements and leasing commissions that would be advanced subject to the satisfaction of certain administrative requirements.

Monthly principal and interest payments relating to the Security Agreement are due in monthly installments in arrears. The Security Agreement can be prepaid at any time. If the Security Agreement is prepaid before its maturity date, the Company would incur a prepayment premium equal to 1.0% of the total prepayment. The Security Agreement was initially due April 1, 2025. The Company amended the Security Agreement on April 8, 2025 to further extend the maturity date of the Security Agreement to July 1, 2025. The Company further amended the Security Agreement on July 21, 2025 to further extend the maturity date of the Security agreement to October 1, 2025. The Company further amended the Security Agreement on October 15, 2025, and deposited $60,758 additional Debt Service Reserve (as defined), to further extend the maturity date of the Security agreement to November 1, 2025. The Company further amended the Security Agreement on November 20, 2025, and deposited $78,704 additional Debt Service Reserve (as defined), to extend the maturity date of the Security Agreement to January 1, 2026. On December 23, 2025, the Company completed the sale of Building Two and an adjacent parcel at 165 Township Line Road and used the sales proceeds to pay down approximately $2.0 million of debt associated with the property. The Company is in active discussions with the lender to further extend the maturity date of the Security Agreement and expects to enter into an amendment to the Security Agreement prior to the effectiveness of the registration statement. The Security Agreement is subject to customary covenants.

The Company evaluated whether there are any conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern over the next twelve months after the financial statements are issued. The Company's cash requirements include, but are not limited to, working capital requirements and the repayment of the Company's outstanding mortgage notes outlined above. The Company has concluded that there is substantial doubt about its ability to continue without being able to refinance its current outstanding mortgage notes, or the completion of the transactions as outlined herein.

The Company is searching for additional lenders to refinance its mortgage notes outstanding and currently does not have any restrictions or limitations on obtaining any additional lenders for such a refinancing. The Company plans on using the proceeds of this offering to repay portions of its outstanding debt but plans on relying on its operations to fund its working capital needs.

**Cash Flows**

*For the nine months ended September 30, 2025 and 2024*

Our cash and restricted cash balance was $1,319,570 at September 30, 2025 and $2,139,935 as of September 30, 2024. The following summary discussion of our cash flows is based on our unaudited condensed combined consolidated statements of cash flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the<br> three months ended<br> September 30,** | **For the<br> three months ended<br> September 30,** | | |
|  | **2025** | **2024** | **Change**<br>**($)** | **Change**<br>**(%)** |
| Cash proceeds provided by (used in): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | $(543700) | $(274680) | $(269020) | 98% |
| &nbsp;&nbsp;&nbsp;Investing activities | (193730) | (1321971) | 1128241 | -85% |
| &nbsp;&nbsp;&nbsp;Financing activities | (82935) | 1833266 | (1916201) | -105% |

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*Net cash used in operating activities*

Net cash used in operating activities was approximately $0.5 million for the nine months ended September 30, 2025 as compared to $0.3 million for the nine months ended September 30, 2024.

For the nine months ended September 30, 2025, cash used in operating activities was primarily comprised of a net loss of $2.0 million and approximately $0.4 million of cash used for the Company's working capital, partially offset by noncash depreciation and amortization expense of $1.2 million and noncash accrued interest associated with the Company's preferred equity instruments of $0.7 million.

As it relates to the Company' working capital, the Company's cash used in operating activities for the nine months ended September 30, 2025 was primarily due to timing of payments made to external parties related to its prepaid expenses and other current assets and accounts payable and accrued liabilities, partially offset by cash provided by deferred rent receivables.

For the nine months ended September 30, 2024, cash used in operating activities was primarily comprised of a net loss of $1.0 million and approximately $0.6 million of cash used for the Company's working capital, partially offset by noncash depreciation and amortization expense of $1.0 million, and noncash accrued interest associated with the Company's preferred equity instruments of $0.2 million

As it relates to the Company's working capital, the Company's cash used in operating activities for the nine months ended September 30, 2024 was primarily due to timing of payments made to external parties related to its prepaid expenses and other current assets and accounts payable and accrued liabilities, partially offset by cash provided by deferred rent receivables.

The Company's total cash flows from operations primarily fluctuate due to the net income or loss recognized, depreciation of the Company's investments in its real estate, and if there are any noncash dividends associated with its mandatorily redeemable preferred equity for its 55 Walkers Brook property.

● The Company's net income or loss can fluctuate due to the execution of new tenant lease agreements or rent escalation clauses included within its current tenant lease agreements. The Company's operating expenses tend to be fixed and do not fluctuate significantly with revenue.

● The Company's depreciation on its investments in real estate can decrease significantly as those investments in real estate reach the end of their useful life. If the Company replaces these investments in real estate, depreciation on these investments in real estate can significantly increase.

The Company's noncash dividends associated with its mandatorily redeemable preferred equity are based upon the contractual requirements surrounding its preferred equity agreements. The mandatorily redeemable preferred equity accrues preferred dividends of 11% per year. We expect to redeem the preferred equity in full in connection with this offering and the formation transactions, resulting in an expected cash outflow of $7.1 million.

*Net cash used in investing activities*

There was $0.2 million cash used in investing activities for the nine months ended September 30, 2025 as compared to $1.3 million for the nine months ended September 30, 2024. The decrease in cash used in investing activities for the nine months ended September 30, 2025 as compared to the prior year period is due less investments in real estate assets during the nine months ended September 30, 2025.

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*Net cash provided by financing activities*

Net cash used in financing activities was $0.1 million for the nine months ended September 30, 2025 as compared to $1.8 million of cash provided by financing activities for the nine months ended September 30, 2024.

For the nine months ended September 30, 2025, cash used in financing activities consisted of repayments of the Company's various debt instruments of approximately $0.4 million, and payments of interest on the Company's mandatorily redeemable preferred equity of approximately $0.5 million. This was offset by issuances of mortgage notes under the Secondary Loan Agreement at 55 Walkers Brook of approximately $0.8 million.

For the nine months ended September 30, 2024, cash provided by financing activities consisted of contributions from the members of the Company in the amount of approximately $1.2 million and the issuance of mandatorily redeemable preferred equity of $1.0 million. This was partially offset by repayments of the Company's different debt instruments of $0.4 million.

*For the years ended December 31, 2024 and 2023*

Our cash and restricted cash balance was $2,139,935 at December 31, 2024 and $2,727,857 as of December 31, 2023. The following summary discussion of our cash flows is based on our combined consolidated statements of cash flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended<br> December 31,** | **For the years ended<br> December 31,** | | |
|  | **2024** | **2023** | **Change**<br>**($)** | **Change**<br>**(%)** |
| Cash proceeds provided by (used in): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | $743723 | $1843641 | $(1099918) | (60)% |
| &nbsp;&nbsp;&nbsp;Investing activities | (2773678) | (354493) | (2419185) | 682% |
| &nbsp;&nbsp;&nbsp;Financing activities | $1442033 | $(613810) | $2055843 | (335)% |

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*Net cash provided by operating activities*

Net cash provided by operating activities was approximately $0.7 million for the year ended December 31, 2024 as compared to $1.8 million for the year ended December 31, 2023.

For the year ended December 31, 2024, cash provided by operating activities was primarily comprised of a net loss of $1.3 million, offset by noncash depreciation and amortization expense of $1.4 million, noncash accrued interest associated with the Company's preferred equity instruments of $0.6 million, and the amortization of deferred financing costs of $0.3 million. It also included approximately $0.3 million of cash used in operating activities relating to the Company's working capital.

The Company's cash provided by operating activities for the year ended December 31, 2024 was driven by cash used within deferred rent receivables of $0.3 million and cash used within prepaid expenses of $0.8 million, which was offset by cash provided by accounts payable and accrued liabilities of $0.9 million. As the Company's long term leases with its tenants age, the deferred rent receivable decreases. As the Company enters into new long term leases with new tenants – or renews its leases with its existing tenants, that include future rent escalation clauses, the deferred rent receivable balance will increase, and will decline over the term of the lease. The Company further incurred an increased amount of leasing commissions during the year ended December 31, 2024, which increased its overall prepaid expenses for the same period ended. As the Company enters into new leases with its tenants, if the leases greater than twelve months, the Company capitalizes the respective leasing commissions and amortizes them over the lease term. Lastly, cash was provided by the Company's accounts payable and accrued expenses, which was driven primarily by the timing of payments. The Company expects this change to fluctuate as the Company remits payment for its outstanding current liabilities and the timing of the remittance of payment.

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For the year ended December 31, 2023, cash used in operating activities was comprised of a net loss of $4.3 million, offset by noncash depreciation and amortization expense of $2.1 million and other noncash items of $0.1 million. It also included approximately $0.5 million of cash provided by operating activities relating to the Company's working capital.

The Company's cash provided by operating activities for the year ended December 31, 2023 was driven by cash used for prepaid expenses of $0.3 million, offset by cash provided by accounts payable and accrued liabilities of $0.8 million. The Company incurred an increased amount of leasing commissions during the year ended December 31, 2023, which increased its overall prepaid expenses for the same period ended. As the Company enters into new leases with its tenants, if the leases are greater than twelve months, the Company capitalizes the respective leasing commissions and amortizes them over the lease term. Cash was provided by the Company's accounts payable and accrued expenses, which was driven primarily by the timing of payments. The Company expects this change to fluctuate as the Company remits payment for its outstanding current liabilities and the timing of the remittance of payment. Additionally, this cash provided by the Company's accounts payable and accrued expenses increased further due to rent that was prepaid by the Company's tenants, which is recorded as a liability until the rental period for which the payment is attributed, begins.

The Company's total cash flows from operations primarily fluctuate due to the net loss recognized, depreciation of the Company's investments in its real estate, and if there are any noncash dividends associated with its mandatorily redeemable preferred equity for its 55 Walkers Brook property.

● The Company's net income or loss can fluctuate due to the execution of new tenant lease agreements or rent escalation clauses included within its current tenant lease agreements. The Company's operating expenses tend to be fixed and do not fluctuate significantly with revenue.

● The Company's depreciation on its investments in real estate can decrease significantly as those investments in real estate reach the end of their useful life. If the Company replaces these investments in real estate, depreciation on these investments in real estate can significantly increase.

The Company's noncash dividends associated with its mandatorily redeemable preferred equity are based upon the contractual requirements surrounding its preferred equity agreements. The mandatorily redeemable preferred equity accrues preferred dividends of 11% per year. We expect to redeem the preferred equity in full in connection with this offering and the formation transactions, resulting in an expected cash outflow of $6.9 million.

*Net cash used in investing activities*

Cash used in investing activities was approximately $2.8 million for the year ended December 31, 2024 as compared to approximately $0.4 million for the year ended December 31, 2023. The increase in cash used in investing activities is due to additions to investments in real estate assets during the year ended December 31, 2024. There were no significant investments in real estate assets that were completed during the year ended December 31, 2023.

*Net cash provided by (used in) financing activities*

Net cash provided by financing activities was approximately $1.4 million for the year ended December 31, 2024 as compared to cash used in financing activities of $0.6 million for the year ended December 31, 2023.

For the year ended December 31, 2024, cash provided by financing activities consisted of repayments of the Company's various debt instruments of $0.7 million. This was offset by issuances of incremental preferred equity investments of $1.0 million as it relates to the Company's 55 Walkers Brook property, and incremental capital contributions of properties in the amount of $1.2 million made by members of the Company.

For the year ended December 31, 2023, cash used in financing activities consisted of repayments of the Company's different debt instruments of $0.6 million.

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**Quantitative and Qualitative Disclosures about Market Risk**

*Interest Rate Risk*

All of the Company's outstanding debt utilizes simple fixed interest rates and are not subject to significant increases or declines in market rates. However, continued increases in interest rates could increase the cost of new indebtedness, and could materially and adversely affect our results of operations, financial condition, liquidity, and cash flows.

*Concentration of Credit Risk*

The Company deposits its cash with financial institutions, and, at times, such balances may exceed federally insured limits. Management believes the financial institutions that hold the Company's cash are financially sound and, accordingly, minimal credit risk exists with respect to cash.

**Recently Issued Accounting Literature**

See Note 3 of our audited combined consolidated financial statements included elsewhere in this prospectus for information about recent accounting pronouncements, the timing of their adoption, and our assessment, if any, of their potential impact on our financial condition and results of operations.

**Emerging Growth Company and Smaller Reporting Company Status**

In April 2012, the JOBS Act was enacted. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Upon the closing of the exchange, we would become an emerging growth company and could delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We plan to elect the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

In addition, as an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include:

● being permitted to present only two years of audited financial statements in addition to any required unaudited interim financial statements, with correspondingly reduced disclosure in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations";

● an exception from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended;

● reduced disclosure about our executive compensation arrangements in our periodic reports, proxy statements and registration statements;

● exemptions from the requirements of holding non-binding advisory votes on executive compensation or golden parachute arrangements; and

● an exemption from compliance with the requirements of the Public Company Accounting Oversight Board regarding the communication of critical audit matters in the auditor's report on financial statements.

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We would cease to qualify as an emerging growth company on the date that is the earliest of: (i) the last day of the fiscal year following the fifth anniversary of the first sale of our common stock pursuant to an effective registration statement, (ii) the last day of the fiscal year in which we have more than $1.235 billion in total annual gross revenues, (iii) the date on which we are deemed to be a "large accelerated filer" under the rules of the SEC, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the prior June 30th, or (iv) the date on which we have issued more than $1.0 billion of non-convertible debt over the prior three-year period. We may choose to take advantage of some but not all of these reduced reporting burdens. We have taken advantage of certain reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different than you might obtain from other public companies in which you hold equity interests.

We have elected to take advantage of certain of the reduced disclosure obligations in this prospectus and may elect to take advantage of other reduced reporting requirements in our future filings with the SEC. As a result, the information that we provide to our stockholders may be different than what you might receive from other public reporting companies in which you hold equity interests.

We have elected to avail ourselves of the provision of the JOBS Act that permits emerging growth companies to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. As a result, we will not be subject to new or revised accounting standards at the same time as other public companies that are not emerging growth companies.

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**PRIOR PERFORMANCE SUMMARY**

 *The information presented in this section represents the historical experience of real estate programs, which we refer to as "prior real estate programs," sponsored by JOSS Realty REIT, Inc., JOSS Realty Partners B, LLC or their affiliates. Investors in our shares should not assume that they will experience returns, if any, comparable to those experienced by investors in the prior real estate programs. Investors who purchase our shares will not thereby acquire any ownership interest in any of the entities to which the following information relates. See also Appendix A for further information regarding prior performance of JOSS.* 

**Experience and Background of JOSS Realty Partners B, LLC** 

JOSS Realty Partners was founded in 2005 by Larry Botel, our founder and Chief Executive Officer. Since 2005, Mr. Botel has been responsible for the acquisition, financing, operating, leasing and disposition of approximately 31 office properties valued at approximately $1.2 billion. Mr. Botel possesses a track record of more than 35 years of commercial real estate experience along with tremendous relationships within the real estate industry and an intimate knowledge of multiple commercial real estate cycles. As a result, Mr. Botel has deep and broad experience in identifying and capitalizing on opportunities in the commercial office space. Additionally, our Chief Operating Officer, Larry McCulley, has over 40 years of real estate experience and oversees our asset and property management. We intend to leverage the extensive and long-standing relationships and knowledge of Mr. Botel and Mr. McCulley in maintaining and growing our portfolio both in our initial selected markets and additional markets.

From 2005 to 2019, JOSS Realty Partners internally managed its assets. As we achieve scale in target markets, we will look to internalize the property management function in order to be advantageous to our investment management business plans. Our initial portfolio is currently externally managed, and the table below provides the compensation arrangements for each party currently managing the properties in our initial portfolio:

---

| | | | |
|:---|:---|:---|:---|
| **Agreement/Property** | **Management Fee** | **Capital/Tenant Improvement Fees** | **Payroll/Expense Reimbursement** |
| 55 Walkers Brook | 2.5% of gross collections or $4,000/month | 5% up to $100,000, 3% over $100,000 | On-site payroll (approved budget); expenses |
| 165 Township Line Road | 3% of Gross Income or $3,500/month | By separate written agreement only | On-site payroll (approved budget); expenses |
| Napa Square | 3% of gross revenue or $2,500/month + $1,350/month for manager | 3% (capital), 5% (tenant improvements) | On-site payroll (approved budget); expenses |

---

**Prior Performance of JOSS Realty Partners B, LLC**

JOSS Realty – Program and Portfolio Overview (Past 10 Years)

---

| | |
|:---|:---|
| **Metric** | **Value** |
| Number of Programs Sponsored | 15 |
| Total Capital Raised | $93.96 million |
| Number of Investors | 599 |
| Total Properties Acquired | 12 |
| Total Properties Sold | 3 |
| Aggregate Purchase Price | $421.84 million |
| Properties by Region | 12 (North East), 2 (North West), 1 (South West) |
| Commercial Property Breakdown (by %) | 84.8% Shopping Centers/Office, 9.3% Mixed Use Office & Retail, 5.5% Residential & Retail, 0.4% Retail |
| Property Age/Status (by %) | 37.0% New, 61.1% Previously Owned, 1.9% Development |
| Property Type (by %) | 100% Commercial |

---

**Material Adverse Developments on Prior Vehicles** 

Certain of the prior JOSS real estate programs have been affected from time to time by general economic conditions, capital market trends and other external factors during their respective operating periods. However, there have been no major adverse business developments or conditions experienced by any prior JOSS real estate programs that would be material to investors.

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**BUSINESS AND PROPERTIES**

**Our Company**

We are a real estate investment company focused on acquiring, improving, owning and managing diverse multi-tenant office properties focusing in diverse, strong economic urban and close suburban nodes in major, top-25 MSAs.

We own 100% of the interests in two multi-tenant office properties and a 26.6% interest in one multi-tenant office property, all three of which we refer to collectively as our "initial portfolio." The multi-tenant office properties are comprised of three buildings with an aggregate of approximately 308,000 net rentable square feet and 33 total tenants, and are approximately 72% leased, based on the total rentable square footage of our initial portfolio. Our total annualized base rent from our initial portfolio as of the quarter ended September 30, 2025 is $7.6 million. Our initial portfolio includes properties located in three markets within major MSAs in the Northeast and on the West Coast: Boston, Philadelphia and the San Francisco Bay Area. We intend to seek additional opportunities in the MSAs where we currently own properties, and other MSAs such as Washington, D.C., Los Angeles, Miami/West Palm Beach, and New York. Our tenants come from a variety of industries, including engineering, banking, consulting, consumer retail, and healthcare, and include investment grade tenants such as Wells Fargo, Raymond James, Charles Schwab, UBS and Oppenheimer. These five tenants make up a total of 14% of our total current leased square footage. The WALT of our properties is 4.7 years.

JOSS Realty Partners was founded in 2005 by Larry Botel, our founder and Chief Executive Officer. Since 2005, Mr. Botel has been responsible for the acquisition, financing, operating, leasing and disposition of approximately 31 office properties valued at approximately $1.2 billion. Mr. Botel possesses a track record of more than 35 years of commercial real estate experience along with tremendous relationships within the real estate industry and an intimate knowledge of multiple commercial real estate cycles. As a result, Mr. Botel has deep and broad experience in identifying and capitalizing on opportunities in the commercial office space. Additionally, our Chief Operating Officer, Larry McCulley, has over 40 years of real estate experience and oversees our asset and property management. We intend to leverage the extensive and long-standing relationships and knowledge of Mr. Botel and Mr. McCulley in maintaining and growing our portfolio both in our initial selected markets and additional markets.

We were organized as a Maryland corporation on April 15, 2025 and intend to elect to be taxed and to operate in a manner that will allow us to qualify as a REIT for U.S. federal income tax purposes commencing with our taxable year ending December 31, 2026.

**Investment Strategy and Market Opportunity**

Our investment strategy, which we have been executing since 2005, is to acquire and improve under-valued and compelling office properties in the economically diverse MSAs of the Northeast, Southeast, and Western United States.

We believe the current commercial real estate market conditions will enable us to strategically capitalize on attractive new acquisitions and achieve accretive growth. For new acquisitions, we will target boutique office assets in sustainable, desirable locations. We believe that many of these will be value-add properties where we will strategically invest capital and reposition assets to be best in class in its competitive set, highlighting asset strengths, new amenity programs, and capital available for tenant improvements and leasing commissions. These have been key elements of our strategy, success and track record since our inception in 2005.

Our initial portfolio includes properties located in three markets within major MSAs in the Northeast and on the West Coast: Boston, Philadelphia and the San Francisco Bay Area. We intend to seek additional opportunities in the MSAs where we currently own properties, and other MSAs such as Washington, D.C., Los Angeles, Miami/West Palm Beach, and New York. We believe that the top-25 MSAs are attractive areas for investment in office properties for the following reasons.

● Diverse economic hubs: The MSAs in which we invest are home to large international, national and regional employers across a wide range of industries including technology and finance as well as federal, state and local government offices. This diversity helps buffer against economic downturns. The tenant base of our initial portfolio features diverse industries such as engineering, banking, fitness and healthcare.

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● Desirability of living: There is a trend towards establishing offices in vibrant neighborhoods where tenants have access to amenities. Commercial properties located in walkable areas with strong access to public transportation are increasingly desirable. Studies show a strong correlation between walkable features – like mixed-use development, density, and efficient public transit access – and an increase in property values, rents, retail sales, occupancy, absorption and price resilience in downturns, resulting in increased commercial demand. Preference for urban and walkable workspaces are not limited to millennials and driven across generations

● Population growth: Many MSAs are experiencing population and economic growth with above average employment growth forecasts, leading to increased demand for high quality office space while supply continues to decline due to the slowdown in new construction and obsolete buildings being taken offline for conversions or teardown. According to the Census Bureau, the top-25 MSAs have made up more than 50% of total GDP in the United States. A growing workforce often correlates with a demand for office environments nearby. Because of this population and economic growth, the opportunities in such MSAs, as well as the demand for Class A office space, will continue to grow.

● Sales Volume: The volume of office building sales increased to $63.6 billion in 2024, up 20% from 2023, according to data firm MSCI, the first increase since 2021. For example, in December 2024 Norges Bank Investment Management, a giant Norwegian sovereign-wealth fund, purchased the 50.1% stake it did not own in eight office properties in Boston, San Francisco, and Washington, D.C., (MSAs in which we own properties) in a deal that valued the properties at $1.9 billion. In the third quarter of 2025, office transaction volume increased 38% year-over-year to $19.4 billion.

The table below presents the top MSAs in the United States ranked by total highest gross domestic product ("GDP"). Our initial portfolio is located within the top ten MSAs by GDP.

![](img_010.jpg)

*Source: U.S. Census Bureau*

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*Office Asset Class Opportunity*

The investment market for commercial office properties is at an inflection point, with assets starting to trade, creating attractive metrics for the repricing of assets and positive momentum in leasing and operating fundamentals.

● Market Pricing **:** We believe there are Class A office properties available in major MSAs which are priced at attractive entry points and at significant discounts to replacement cost. Furthermore, Green Street Advisors, LLC has estimated that office building values are down 37% from peak in 2022. We believe the current commercial real estate market conditions will enable us to strategically capitalize on attractive new acquisitions and achieve accretive growth.

● Pockets of Distress **:** MSCI Inc. estimates upwards of $100 billion of distressed office opportunities coming to market in 2025, more than any other real estate asset class. This provides investors with operating experience, capital and focus, such as ourselves, an opportunity to obtain attractive assets at a substantial discount and well below replacement cost.

● Sales Volume: The volume of office building sales increased to $63.6 billion in 2024, up 20% from 2023, according to data firm MSCI. This is the first increase since 2021. According to Globe Street, in the third quarter of 2025, office transaction volume increased 38% year-over-year to $19.4 billion.

● Return of Positive Fundamentals: Office-based job growth is outpacing available office inventory and as office demand continues to recover, occupied office inventory is projected to return to 2019 levels by 2030 according to CBRE. Office space construction in the United States is down to 13.4 million square feet delivered year-to-date, according to Cushman & Wakefield ("C&W"), for the first three quarters of a year since 2012. The construction pipeline is not being replenished with new office starts, as it declined by 14.1% quarter-over-quarter. The 22.5 million square feet of space under construction is the lowest total in the 21<sup>st</sup> century and represents 0.4% of total office inventory. This sharp slowdown in the construction pipeline will help insulate the higher quality existing assets in the coming years as new deliveries shrink, further driving future scarcity and value of Class A office space.

![](img_011.jpg)

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● Lower Productivity Driving Return-to-Office: Declining productivity and lack of innovation under remote work models are pushing businesses to mandate in-office work, increasing demand for office space. According to Jones Lang LaSalle ("JLL"), workforce productivity is lagging behind prior economic recoveries which correlates to the increase in hybrid and remote work.

![](img_012.jpg)

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● Return to office: Post-pandemic recovery and adjustments in remote work policies are expected to drive office space demand in major MSAs, as many companies are instituting return-to-office mandates. Most recently Samsung and TD Bank have joined Amazon.com, Walt Disney, JPMorgan Chase, and countless other major employers who are mandating at least four days a week in the office. In addition to these mandates, a significant shift has taken place across the private sector: the majority of Fortune 100 employees are now subject to full five-day in-office attendance policies. Over the past year, the share of employees required to be in the office full time has increased nearly five-fold, and the average in-office requirement has grown by 25% (JLL, U.S. Office Market Dynamics, Q2 2025). As a result, office attendance has reached its highest post-pandemic level, hitting 71% of pre-pandemic figures in recent months, according to cell phone tracking data from Placer.AI. These rising attendance levels have coincided with a rebound in office-using job growth.

![](img_013.jpg)

*Source: Jones Lang LaSalle*

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![](img_014.jpg)

*Source: Cushman & Wakefield*

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We believe that net absorption has materially improved in the top-25 MSAs, and that office sector performance will improve as a result. According to C&W, long-term office employment is expected to rise from 34.7 million to 36.7 million by 2030 with office space net absorption becoming positive in 2026. Notably, 46 of the 92 U.S. markets tracked by Cushman & Wakefield Research posted positive absorption in the third quarter of 2025, a 50% increase from the 31 markets two quarters earlier. Excluding the five weakest markets, national absorption was marginally positive (+289,000 square feet) in the third quarter of 2025.

![](img_015.jpg)

*Source: Cushman & Wakefield*

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C&W highlights several key trends in the office real estate sector:

Economic Resilience: The U.S. real GDP expanded at an annualized rate of 3.0% in the second quarter of 2025.

Office Space Reduction with Positive Indicators: While national office absorption remained negative in the third quarter of 2025—continuing a thirteen-quarter streak—there are growing signs of stabilization. Approximately 52% of U.S. markets experienced positive absorption quarter-over-quarter, and half of U.S. markets have recorded positive absorption over the past four quarters.

Stabilization of Sublease Space: Available sublease space has declined 14.5% since the beginning of 2024 with 55 U.S. markets having experienced year-over-year declines, as tenants have found sublessors or taken the space back for their own use.

Preference for High-Quality Office Spaces: Demand continues to concentrate in high-performing, well-located office assets. While gateway markets such as New York, Boston, Washington, D.C., San Francisco, and Los Angeles continue to exhibit elevated vacancy rates overall, Class A and trophy buildings in prime submarkets are capturing a disproportionate share of leasing activity and sustaining stronger occupancy. As of the third quarter of 2025, this performance gap is increasingly driven by tenant flight to quality, limited new supply, and differentiated building performance across the Class A spectrum.

Net Absorption Trends: Overall net absorption declined by 4.3 million square feet in the third quarter of 2025, with year-to-date absorption nearing a reduction of 15.7 million square feet. This is a 69% improvement from the first three quarters of 2024 which experienced a decline in net absorption of 50.4 million square feet.

We believe that this recovery provides an opportunity for a compelling repricing of our existing portfolio at an attractive basis for investors. The current market conditions will also enable us to strategically capitalize on attractive new acquisitions and achieve accretive growth. For new acquisitions, we will target boutique office assets in sustainable, desirable locations. We believe that many of these will be value-add properties where we will strategically invest capital and reposition assets to be best in class in its competitive set, highlighting asset strengths, new amenity programs, and capital available for tenant improvements and leasing commissions. These have been key elements of our strategy, success and track record since our inception in 2005.

**Our Competitive Strengths**

We believe that our investment strategy and operating model distinguish us from other owners, operators and investors of commercial real estate in several important ways, including the following:

*Experienced and Aligned Management Team*

Our senior management team has extensive experience acquiring, owning and operating office properties across markets and cycles, including our founders' experience at institutional commercial real estate and private equity investment firms. Our founder, Mr. Botel, possesses a track record of more than 35 years of commercial real estate experience, tremendous relationships within the commercial office sector as well as an intimate knowledge of multiple commercial real estate cycles. Since 2005, Mr. Botel has been responsible for the acquisition, financing, operating, leasing and disposition of approximately 31 office properties valued at approximately $1.2 billion. Additionally, our Chief Operating Officer, Mr. McCulley, has over 40 years of real estate experience and oversees our asset and property management.

Our senior management team has extensive experience managing operating expenses through continued implementation of cost control initiatives and implementing repositioning and development of properties. We believe our senior management team also provides us with a significant advantage over competing buyers when pursuing acquisition opportunities given its extensive relationships with property owners, brokers and tenants within our target markets, and will facilitate our ability to execute our growth plan. We believe our extensive industry network, coupled with our history of successful acquisitions, improves our ability to source and execute attractive transactions.

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*Well-Positioned Initial Portfolio*

We own 100% of the interests in two multi-tenant office properties and a 26.6% interest in one multi-tenant office property, all three of which we refer to collectively as our "initial portfolio." These multi-tenant office properties are comprised of three buildings with an aggregate of approximately 308,000 net rentable square feet. As of September 30, 2025, our initial portfolio was approximately 72% leased. Our initial properties are located in vibrant communities with diverse economies, prominent universities, and local governments that are supportive of attracting business and are expected to attract entrepreneurs and large employers alike. We believe a large portion of the workforce is increasingly remaining in these markets to seek employment. The MSAs in which our initial properties are located share a number of important common attributes that are particularly attractive, such as numerous housing options, well-regarded schools and a desirable work-life balance, evidenced by short commutes and proximity to restaurants, coffee shops, bars, gyms and other retail conveniences.

None of the three buildings in our initial portfolio require extensive capital expenditures and each provides opportunities for discretionary, value-add improvements. Through our hands-on strategy, we invest in features attractive to tenants, including modern technology and amenities, and our all-in investment remains substantially below estimated replacement cost. We believe that the location of the office properties in our initial portfolio, their high occupancy levels and low capital expenditure requirements lead to our initial portfolio being well-positioned to carry out our investment strategy.

*Early Identification of and Investment in Attractive Markets*

Our founder, Mr. Botel, identified the potential for economic growth in our target markets and has invested in many of our initial selected markets throughout his career. We believe that economic growth in our initial selected markets will continue as employee talent continues to migrate to vibrant top MSAs and employers locate or relocate their offices to attract a younger, well-educated workforce that is increasingly residing nearby. We believe that the announcements made by Amazon, Uber, Meta and the incoming administration to shift federal government employees back into offices in our target markets validate our views of this demographic shift. We also believe that target markets will continue to be considered for corporate relocations, as well as initial locations for start-ups, and that these relocations and new businesses will further raise the profile of our target markets. Additionally, we are confident that our early and consistent presence in many target markets and our proven ability to identify desirable submarkets and locations will lead to continued execution on such opportunities.

*Active and Robust Pipeline to Discounted Acquisitions*

We expect that our extensive "high-touch" relationships with property owners, brokers, national and regional lenders, diverse tenants and other market participants in our initial selected markets and our reputation as a reliable counterparty will continue to provide us access to both widely marketed and off-market acquisition opportunities as well as portfolio sales. Our positive reputation with market participants distinguishes us from many competing property buyers and owners, who often do not have the same localized relationships and knowledge. Brokers reach out to us directly as our reputation and ability to execute has established us as a reliable and sophisticated counterparty. Our active and robust acquisition pipeline includes approximately 3.3 million square feet in 2024, and our 2025 pipeline includes 1.7 million square feet of multi-tenant office properties in our initial selected markets, which we have generated from these relationships and our deep knowledge of our initial selected markets.

*Proactive Asset Management*

Our asset management team focuses on improving each asset we acquire. Often, these improvements include lobby renovations, base building system upgrades, creation of additional shared amenities such as common area WiFi and security systems, tenant-facing technology to enable access and communication with property management, cafes, gyms, and conference centers. Our experience in implementing these improvements drives tenant satisfaction and retention along with attracting new tenants in the competitive leasing markets.

Our asset management team regularly evaluates each of our properties, including its historical and projected financial performance, tenant mix, market fundamentals, market position, and other factors, to assess whether its expected future returns justify our continued ownership, or if one or more properties should be sold in order to redeploy the proceeds into other investment opportunities.

In addition, we have demonstrated an ability to effectively identify opportune times to sell properties after executing our value-add repositioning strategy, which has in the past resulted in, and in the future is expected to result in, enhanced liquidity and the ability to fund new acquisitions from time to time.

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**Our Business and Growth Strategies**

Our principal investment objectives are to provide our stockholders with current income in the form of dividends and to increase the cash flow and the value of our office portfolio which will ultimately increase cash flow and dividends. We intend to meet these objectives through execution of the following strategies:

*Disciplined Acquisition of Office Properties*

We will continue to grow in markets that meet our investment criteria through strategic and accretive acquisitions that we believe will generate substantial growth. We target specific institutional-quality properties that have an existing diverse tenant mix and robust occupancy trends which we believe would benefit from our value-add repositioning strategy, with a particular focus on the addition of amenities.

We believe there are many opportunities to acquire non-core assets at attractive price points from investors and lenders that are seeking to exit the office space or need liquidity. We believe attractive assets can be acquired at a very low basis, substantially discounted from peak valuations, and well below replacement cost. These assets tend to be under-managed and underfunded, representing an opportunity for a new investor – with operating expertise, capital, and focus – to create significant upside through active management and improvement.

*Maintain a Prudent Financing Strategy*

We will seek to efficiently use debt and equity financing sources to pursue new growth opportunities. We intend to target an overall debt-to-gross total assets ratio of 55%–65%, which we believe is appropriate for a real estate investment company that seeks to grow and ultimately de-lever. Over time, we expect our overall debt-to-gross total assets ratio will decrease to approximately 50%. In addition, we believe our ability to issue OP units as tax-advantaged consideration for property acquisitions will provide us a significant competitive advantage in acquiring properties.

*Strong Operating Focus*

We will have a hands-on approach to asset management. We currently use third parties to manage our initial portfolio. Given our intimate knowledge of property management, we are proactive in our daily engagement with our property managers. This includes careful selection of our quality third party managers.

We enter into management agreements with these third parties. Under these agreements, the property manager is responsible for operating and managing the property and for maximizing the income derived from it. The property manager also collects all rents associated with any tenants within the properties we own.

We retain the authority to make all major policy and operational decisions related to the operations of each property. The property managers are required to prepare and submit annual operating budgets, capital budgets, maintenance plans, and plans for repair, maintenance, and leasing. We review and approve these budgets before they are implemented.

The agreements are structured with an initial term of one year and automatically renew for successive one-year periods unless terminated earlier. Termination may occur:

● By either party with 30 days' prior written notice;

● Immediately by the owner for cause, including material breach, gross negligence, or fraud; or

● Upon the sale of the property.

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The table below provides the compensation arrangements for each party currently managing the properties in our initial portfolio.

---

| | | | |
|:---|:---|:---|:---|
| **Agreement/Property** | **Management Fee** | **Capital/Tenant Improvement Fees** | **Payroll/Expense Reimbursement** |
| 55 Walkers Brook | 2.5% of gross collections or $4,000/month | 5% up to $100,000, 3% over $100,000 | On-site payroll (approved budget); expenses |
| 165 Township Line Road | 3% of Gross Income or $3,500/month | By separate written agreement only | On-site payroll (approved budget); expenses |
| Napa Square | 3% of gross revenue or $2,500/month + $1,350/month for manager | 3% (capital), 5% (tenant improvements) | On-site payroll (approved budget); expenses |

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From 2005 to 2019, JOSS internally managed its assets. As we achieve scale in target markets, we will look to internalize the property management function in order to be advantageous to our investment management business plans.

*Pursue Opportunities to Recycle Capital Efficiently*

We are committed to prudent growth and expect to create value by assembling a larger portfolio of multi-tenant office properties that will benefit from positive economic and demographic trends that we believe will drive future stockholder value. However, we intend to regularly evaluate our portfolio and opportunistically and selectively sell office properties when we believe the proceeds can be efficiently redeployed into new investment opportunities that may present greater overall return prospects.

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**Our Initial Portfolio**

![](img_016.jpg)

**As of September 30, 2025:**

○ **Properties = 3** 

○ **Net Rentable Square footage = 307,820** 

○ **Total Tenants = 33** 

○ **ABR = $7.6M** 

○ **Top Ten Tenants (% of ABR) = 69%** 

○ **Occupancy = 72%** 

○ **WALT = 4.7 Years** 

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The following table sets forth an overview of our initial portfolio as of September 30, 2025.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **% Equity<br> Interests<br> Owned** | **Number of<br> Tenants** | **Location** | **Year<br> Acquired** | **Net<br> Rentable<br> Square Feet** | **%<br> Leased** | **Annualized<br> Base Rent** | **Annualized<br> Base Rent<br> per Leased<br> Square Foot** |
| 55 Walkers Brook | 100% | 8 | Reading, MA | 2018 | 139249 | 92% | $4126943 | $32.07 |
| 165 Township Line Road | 100% | 6 | Jenkintown, PA | 2017 | 102713 | 47% | $1369095 | $28.24 |
| Napa Square | 26.6% | 19 | Napa, CA | 2016 | 65858 | 67% | $2140550 | $48.58 |
| **Total/Weighted Average** |  | 33 |  |  | 307820 | 72% | $7636588 | $34.52 |

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The following table provides a detailed financial and leasing analysis of the initial portfolio across different years (2019-2035).

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| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **55 WBD** | **Total / Avg** |
| **Years** | **2019** | **2020** | **2021** | **2022** | **2023** | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033** | **2034** | **2035** |  |
| SF Leased | 139356 | 114563 | 114563 | 107663 | 107663 | 128666 |  |  |  |  |  |  |  |  |  |  |  |  |
| SF Vacant | 0 | 24793 | 24793 | 31693 | 31693 | 10583 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total SF | 139356 | 139356 | 139356 | 139356 | 139356 | 139249 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Occupancy Rate** | **100.00%** | **82.21%** | **82.21%** | **77.26%** | **77.26%** | **92.40%** |  |  |  |  |  |  |  |  |  |  |  | **85.22%** |
| Total Effective Rent | $4013305 | $3770783 | $3399854 | $3218911 | $3306342 | $3526931 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Escalation Income | $49370 | $39303 | $24477 | $50813 | $449724 | $156884 |  |  |  |  |  |  |  |  |  |  |  |  |
| Rent Concessions | $-946442 | $-211156 | $0 | $-27564 | $-25163 | $-408609 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Tenant Revenue | $3116233 | $3598930 | $3424331 | $3242159 | $3730903 | $3275206 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Average Effective Annual Rent/SF** | $**22.36** | $**25.83** | $**24.57** | $**23.27** | $**26.77** | $**23.52** |  |  |  |  |  |  |  |  |  |  |  | $**24.39** |
| Number of Tenants Expiring |  |  |  |  |  |  | - | - | - | 1 | 2 | - | 1 | 2 | - | 2 | - | **8** |
| SF of Tenants Expiring |  |  |  |  |  |  | 5469 | - | - | 20130 | 12148 | - | 44278 | 25363 | - | 21278 | - | **128666** |
| Annual Rent of Tenants Expiring |  |  |  |  |  |  | $208509 | $0 | $0 | $644160 | $386298 | $0 | $1421324 | $755572 | $0 | $711080 | $0 | $**4126943** |
| Percentage of Gross Annual Rent Expiring |  |  |  |  |  |  | 5.1% | 0.0% | 0.0% | 15.6% | 9.4% | 0.0% | 34.4% | 18.3% | 0.0% | 17.2% | 0.0% | **100.0%** |

---

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| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **NAPA** | **Total / Avg** |
| **Years** | **2019** | **2020** | **2021** | **2022** | **2023** | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033** | **2034** | **2035** |  |
| SF Leased | 58776 | 57485 | 56621 | 40894 | 37754 | 40890 |  |  |  |  |  |  |  |  |  |  |  |  |
| SF Vacant | 7082 | 8373 | 9237 | 24501 | 27641 | 24968 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total SF | 65858 | 65858 | 65858 | 65395 | 65395 | 65858 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Occupancy Rate** | **89.25%** | **87.29%** | **85.97%** | **62.53%** | **57.73%** | **62.09%** |  |  |  |  |  |  |  |  |  |  |  | **74.14%** |
| Total Effective Rent | $2486897 | $2414068 | $2704596 | $2202543 | $1828023 | $1948951 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Escalation Income | $660995 | $663701 | $884055 | $744216 | $523861 | $546349 |  |  |  |  |  |  |  |  |  |  |  |  |
| Rent Concessions | $-28673 | $-31605 | $-78615 | $-22030 | $-106688 | $-24529 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Tenant Revenue | $3119219 | $3046164 | $3510036 | $2924728 | $2245196 | $2470771 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Average Effective Annual Rent/SF** | $**47.36** | $**46.25** | $**53.30** | $**44.72** | $**34.33** | $**37.52** |  |  |  |  |  |  |  |  |  |  |  | $**43.91** |
| Number of Tenants Expiring |  |  |  |  |  |  | 4 | 5 | 1 | 5 | 1 | 1 | - | 1 | - | - | 1 | 19 |
| SF of Tenants Expiring |  |  |  |  |  |  | 3009 | 11238 | 3447 | 12840 | 3739 | 4080 | - | 1799 | - | - | 3906 | 44058 |
| Annual Rent of Tenants Expiring |  |  |  |  |  |  | $116043 | $498789 | $230171 | $578369 | $223368 | $226685 | $0 | $91356 | $0 | $0 | $175770 | $2140550 |
| Percentage of Gross Annual Rent Expiring |  |  |  |  |  |  | 5.4% | 23.3% | 10.8% | 27.0% | 10.4% | 10.6% | 0.0% | 4.3% | 0.0% | 0.0% | 8.2% | 100.0% |

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[**Table of Contents**](#toc)

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| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **165 Township** | **Total / Avg** |
| **Years** | **2019** | **2020** | **2021** | **2022** | **2023** | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033** | **2034** | **2035** |  |
| SF Leased | 102713 | 97117 | 97117 | 97117 | 97117 | 52431 |  |  |  |  |  |  |  |  |  |  |  |  |
| SF Vacant | 0 | 5596 | 5596 | 5596 | 5596 | 50282 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total SF | 102713 | 102713 | 102713 | 102713 | 102713 | 102713 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Occupancy Rate** | **100.00%** | **94.55%** | **94.55%** | **94.55%** | **94.55%** | **51.05%** |  |  |  |  |  |  |  |  |  |  |  | **88.21%** |
| Total Effective Rent | $2654604 | $2496604 | $2495543 | $2593358 | $2640864 | $2324238 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Escalation Income | $96797 | $38050 | $-5703 | $190674 | $133297 | $91513 |  |  |  |  |  |  |  |  |  |  |  |  |
| Rent Concessions | $-21074 | $-203449 | $-81833 | $-30918 | $-55150 | $-35581 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Tenant Revenue | $2730328 | $2331205 | $2408006 | $2753114 | $2719011 | $2380170 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Average Effective Annual Rent/SF** | $**26.58** | $**22.70** | $**23.44** | $**26.80** | $**26.47** | $**23.17** |  |  |  |  |  |  |  |  |  |  |  | $**24.86** |
| Number of Tenants Expiring |  |  |  |  |  |  | - | 1 | 1 | 1 | 2 | 1 | - | - | - | - | - | 6 |
| SF of Tenants Expiring |  |  |  |  |  |  | - | 5323 | 2199 | 25074 | 9104 | 6789 | - | - | - | - | - | 48489 |
| Annual Rent of Tenants Expiring |  |  |  |  |  |  | $0 | $119768 | $56075 | $752220 | $259464 | $181569 | $0 | $0 | $0 | $0 | $0 | $1369095 |
| Percentage of Gross Annual Rent Expiring |  |  |  |  |  |  | 0.0% | 8.7% | 4.1% | 54.9% | 19.0% | 13.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 100.0% |

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| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **REIT** | **Total / Avg** |
| **Years** | **2019** | **2020** | **2021** | **2022** | **2023** | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033** | **2034** | **2035** |  |
| SF Leased | 300845 | 269165 | 268301 | 245674 | 242534 | 221987 |  |  |  |  |  |  |  |  |  |  |  |  |
| SF Vacant | 7082 | 38762 | 39626 | 61790 | 64930 | 85833 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total SF | 307927 | 307927 | 307927 | 307464 | 307464 | 307820 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Occupancy Rate** | **97.70%** | **87.41%** | **87.13%** | **79.90%** | **78.88%** | **72.12%** |  |  |  |  |  |  |  |  |  |  |  | **83.86%** |
| Total Effective Rent | $9154806 | $8681454 | $8599992 | $8014811 | $7775229 | $7800120 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Escalation Income | $807163 | $741054 | $902828 | $985703 | $1106881 | $794746 |  |  |  |  |  |  |  |  |  |  |  |  |
| Rent Concessions | $-996189 | $-446209 | $-160448 | $-80512 | $-187001 | $-468719 |  |  |  |  |  |  |  |  |  |  |  |  |
| Total Tenant Revenue | $8965780 | $8976299 | $9342372 | $8920001 | $8695109 | $8126147 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Average Effective Annual Rent/SF** | $**29.12** | $**29.15** | $**30.34** | $**29.01** | $**28.28** | $**26.40** |  |  |  |  |  |  |  |  |  |  |  | $**28.72** |
| Number of Tenants Expiring |  |  |  |  |  |  | 4 | 6 | 2 | 7 | 5 | 2 | 1 | 3 | - | 2 | 1 | 33 |
| SF of Tenants Expiring |  |  |  |  |  |  | 8478 | 16561 | 5646 | 58044 | 24991 | 10869 | 44278 | 27162 | - | 21278 | 3906 | 221213 |
| Annual Rent of Tenants Expiring |  |  |  |  |  |  | $324551 | $618557 | $286245 | $1974749 | $869130 | $408254 | $1421324 | $846927 | $0 | $711080 | $175770 | $7636588 |
| Percentage of Gross Annual Rent Expiring |  |  |  |  |  |  | 4.2% | 8.1% | 3.7% | 25.9% | 11.4% | 5.3% | 18.6% | 11.1% | 0.0% | 9.3% | 2.3% | 100.0% |

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***55 Walkers Brook, Reading, MA ("55 Walkers Brook")***

We acquired 55 Walkers Brook in December 2018 for $32.25 million. As of September 30, 2025, the 139,249 square foot property was 92% leased to eight professional services firms across the engineering, insurance, banking and consulting industries. The largest tenant is Weston & Sampson, a leading engineering firm who occupies 32% of the property. Since acquisition, JOSS has completed 119,226 square feet of leasing activity and 100% of the property's rent was collected throughout COVID. Upside opportunities include the ability to lease-up vacant spaces, which have seen meaningful leasing activity. The property is located in the North 128 Submarket, which is a prime, well performing, submarket of the greater Boston area and is considered a boutique property with a robust and high-quality tenant base and amenities, including a cafe and gym.

***165 Township Line Road, Jenkintown, PA ("165 Township Line Road")***

We acquired 165 Township Line Road #1 and #2 in October 2017 for $12.1 million. The property contains two separate buildings. 165 Township Line #2 was sold on December 23, 2025, and the Company used a portion of the sale proceeds to pay down approximately $2.0 million of debt associated with the property. As of September 30, 2025, Township Line Road #1 the 73,032 square foot property was 56% leased. The largest tenant is National Philanthropic Trust ("NPT"), which occupies 34% of the property and has a lease that expires in 2028. Other tenants include Raymond James and Oppenheimer. The property is adjacent to the Jenkintown/Wyncote SEPTA train stop (30 minutes outside of Center City, Philadelphia) which offers a convenient commute from the Philadelphia area. Upside opportunities include renewing tenants at higher market rates and expanding and renewing NPT's leases.

***1401-1485 1*<sup>*st*</sup>**  ***Street, Napa, CA ("Napa Square")***

We, along with two other investors, acquired Napa Square in April 2016 for $39.3 million. We acquired 26.6% of Napa Square as a result of the transaction. As of September 30, 2025, the 65,858 square foot property was 67% leased. The largest tenant is Wells Fargo (S&P Rated: BBB+) and occupies 10% of the property, with their lease expiring in March 2026. In addition to Wells Fargo, the property has a stable roster of investment grade and regional tenants including Charles Schwab, UBS, a prominent law firm serving Napa's wine industry and several local high-quality wine and food artisans. The property is located in the center of downtown Napa, a major tourist area known for its high-end food and beverage attractions, and is one of three meaningful mixed-use office and retail properties in downtown Napa. Upside opportunities include continuing to lease the remaining space and maximizing rents on the retail space as downtown Napa continues to flourish.

**Initial Portfolio Classifications**

Each asset has been categorized in accordance with industry conventions, including Building Owners and Managers Association standards, brokerage commentary, and a review of key building characteristics such as age, infrastructure, finishes, location, and tenant profile. The classifications are as follows:

● **55 Walkers Brook, Reading, MA – Class A:** 

A modern, 139,249 SF suburban office property located in the high-performing North 128 corridor of Boston. The building features contemporary finishes, ample parking, and a strong tenant roster, including Weston & Sampson. The property demonstrated leasing durability during the COVID-19 pandemic and maintains a high occupancy rate.

● **165 Township Line Road, Jenkintown, PA – Class B+:** 

This 102,713 SF asset comprises two buildings in a transit-oriented suburban Philadelphia location. The primary building is approximately 56% leased to tenants such as National Philanthropic Trust, while the secondary building, which may be sold for redevelopment, currently has limited leasing activity. The asset offers repositioning potential and lease-up upside.

On June 20, 2025, 165 Township Line Road entered into an Agreement and Purchase of Sale to sell certain building and land assets included within this property to a third-party. As a result of the closing of the sale, 165 Township Line Road only holds ownership in one building asset. The closing of the sale occurred on December 23, 2025.

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● **Napa Square, Napa, CA – Class A:** 

A 65,858 SF mixed-use property located in downtown Napa, one of the region's most desirable locations. The property features a strong mix of office and retail tenants, including UBS, Wells Fargo, Charles Schwab, and U.S. Bank, and benefits from limited competition as one of only three mixed-use assets in Napa. The asset is considered institutional quality, supported by its tenancy, location, and build quality.

Building classification has historically influenced leasing dynamics within our portfolio. Class A buildings, such as Walkers Brook and Napa Square, have demonstrated strong tenant retention and leasing velocity, attracting higher-credit tenants and achieving higher base rents with fewer concessions. In contrast, Class B+ assets, such as Township Line, often require more intensive leasing efforts and tenant improvements, but present significant value creation opportunities through repositioning and lease-up.

For example, in a prior JOSS investment at 229 West 28th Street, a Class C loft was transformed into a boutique Class B+ creative office through comprehensive redevelopment, resulting in occupancy increasing from 43% to 100% and a substantial uplift in rental rates, supporting a profitable sale. Similarly, at 1315 Lincoln Blvd in Santa Monica, Class A quality and market positioning enabled JOSS to command above-market rents, retain tenants, and achieve a strong net IRR.

The following table sets forth the total price to be paid for each property to be acquired, including the value of the OP Units being issued to current investors in those properties:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property** | **OP Units** | **Midpoint Price<br> Per Share** | **Total<br> Value of<br> OP Units Based<br> on Midpoint Price<br> Per Share** | **Cash<br> Payment for<br> Preferred Stock<br> Redemption** | **Amount <br> of Debt to<br> be Assumed (1)**  |
| 55 Walkers Brook | 480000 | $5.00 | $2400000 | $7064659 | $20646853 |
| 165 Township Line Road | 240000 | $5.00 | $1200000 |  | $5671523 |
| Napa Square | 480000 | $5.00 | $2400000 |  | $5931800 |

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(1) Balance as of September
 30, 2025. In December 2025, we paid an additional $2.0 million in principal with respect to
 the 165 Township Line Road loan.

***Select Examples of Exited Assets***

***1315 Lincoln Blvd, Santa Monica, CA***

We acquired this fully-leased boutique office asset in April 2015 for $23.7 million. The asset was one of a few Class A buildings in downtown Santa Monica with substantial parking in a highly parking constrained market. Santa Monica is a supply constrained submarket with low vacancy and minimal new construction, a key example of the markets we will seek to invest in. We implemented our hands-on operating approach, including renewing existing tenants, increasing rents, and bringing in a parking operator to improve efficiencies, all resulting in enhanced cash flow. We sold the asset in August 2017 for $30.5 million, resulting in a 17% IRR net of fees and a 1.4x multiple on invested capital ("MOIC").

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***229-239 West 28*<sup>*th*</sup>**  ***Street, New York, NY***

We purchased this 153,912 square foot property in May 2007 for $48.4 million. At the time of purchase, the asset was 43% leased. We commenced a comprehensive redevelopment of the property, including converted existing loft space into office, creating 12,500 square foot floor plates with 11-foot open ceilings, adding new entrances, lobbies, elevators, bathrooms and numerous base building improvements. As a result, we were able to increase rental rates from the high teens to high $40s per square foot. We sold the property in March 2014 for $82.5 million, resulting in a 10.1% Net IRR of fees and a 1.85x MOIC. This was despite having to execute the business plan through the Great Financial Crisis of 2008.

***42 South 15th Street, Philadelphia, PA***

We purchased this 137,042 square foot, Class C office building in downtown Philadelphia in May 2005 for $13 million. We implemented a comprehensive renovation and repositioning plan, including lobby and common area renovation, new signature and branding, and re-tenanting the street-level retail, turning the property into a Class B+ asset. We sold the property in October 2007 for $16.8 million, resulting in a 41% Net IRR and a 2.18x MOIC.

***1129 20th Street, Washington, DC***

We purchased this 127,445 square foot, Class B office building in downtown Washington, D.C. in January 2006 for $45 million. We executed a redevelopment plan, which included adding two floors, which resulted in the building being upgraded to Class A. We sold the building in February 2007 for $61.8 million, resulting in a 59.2% Net IRR and a 1.66x MOIC.

***Competitive Challenges***

While we believe our investment strategy and operating model provide us with certain competitive strengths, our business and operations are subject to significant challenges and weaknesses, including the following:

● Our portfolio is concentrated in certain states and MSAs, and any adverse developments or economic downturns in these geographic markets could materially and adversely affect us. As of September 30, 2025, all of our annual base rent came from properties in Philadelphia, Northern California, and Boston, exposing us to regional risks.

● We face significant risks of tenant default and tenant vacancies, which could materially and adversely affect us. Our success depends on the financial stability of our tenants, and the loss or default of a significant tenant could result in a substantial reduction in rental revenue and property value.

● There is substantial competition for acquiring office properties and for tenants, which could adversely affect our occupancy, rental rates, and results of operations. Many of our competitors may have greater resources or lower costs of capital than we do.

● Our real estate investments are relatively illiquid, which could materially and adversely affect us, including our financial condition and cash flows, particularly if we are unable to dispose of properties at attractive prices or at all.

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● We have not obtained an independent third-party appraisal of the interests or assets being contributed to us, and the consideration to be paid by us in our formation transactions was not negotiated on an arm's-length basis. As a result, the consideration we have agreed to pay may exceed the fair market value of our initial portfolio.

For a more detailed discussion of these and other risks, see "Risk Factors" beginning on page 26 of this prospectus.

***Lease Distribution***

As of September 30, 2025, approximately 31% of our initial portfolio's annualized base rent was generated from leases of 2,501 – 10,000 net rentable square feet. The following charts set forth the percentage of annualized base rent of our initial portfolio under lease as of September 30, 2025.

![](img_017.jpg)

![](img_017a.jpg)

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***Tenant Diversification***

As of September 30, 2025, our initial portfolio was leased to 33 tenants conducting business in a variety of industries. Our five largest tenants as of September 30, 2025 were Weston & Sampson Engineers, Inc., National Philanthropic Trust, Reading Co-Operative Bank, Eliassen Group, and Cannon Cochran Management Services, Inc. Collectively, as of September 30, 2025, our five largest tenants provided approximately 50% of our initial portfolio's annualized base rent, and our single largest tenant provided approximately 19% of our initial portfolio's annualized base rent.

The following table summarizes the significant lease expirations within our portfolio over the next two years:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Tenant** | **Lease Expiry Date** | **Annual Base<br> Rent (ABR)** | **% of Total<br> REIT ABR** | **Leased Area<br> (SF)** | **% of Total<br> REIT SF** |
| Cannon Cochran Management Services, Inc.<sup>(1)</sup> | 30 November 2025 | $433080 | 5.8% | 12832 | 4.2% |
| Wells Fargo (Napa Square) | 31 March 2026 | $306868 | 4.0% | 6557 | 2.1% |
| District 1199C Training and Upgrading Fund<sup>(2)</sup> | 28 February 2026 | $119768 | 1.6% | 5323 | 1.7% |

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(1) Our lease with Cannon Cochran Management Services, Inc. was due to expire on November 30, 2025. Following the tenant's decision
to downsize its leased premises, it entered into a lease amendment dated August 22, 2025 whereby the tenant shall remain in and continue
to pay rent for the original premises until delivery of the new premises to the tenant with landlord's work substantially completed
(the "Delivery Date"). The Delivery Date is expected to occur in the first quarter of 2026, and accordingly, this replacement
lease is not reflected in the calculations below.

(2) In connection with the
 sale of 165 Township #2, we expect this lease to be terminated on or around February 28, 2026.

Collectively, these leases represent approximately 5.6% of our total annual base rent and 5.4% of our total leased square footage. We actively monitor upcoming lease expirations and engage with tenants regarding potential renewals or re-letting strategies to mitigate vacancy risk.

We will continue to position our owned assets for optimal marketability to prospective tenants and be proactive in having each asset be a top performer in their respective markets. This is achieved through proactive asset management, including an emphasis on market-leading amenities, and a thoughtful approach on tenant retention and packages to secure new, high-quality tenants.

**Identifying Potential New Tenants**

Our process for securing a suitable replacement tenant is comprehensive and begins as early as the acquisition stage. At this point, we evaluate and select the most qualified third-party brokerage firm for each asset, considering factors such as market knowledge, track record, and alignment with the asset's leasing objectives. If, during our ownership, the incumbent brokerage team does not meet performance expectations, we may re-evaluate and appoint a new brokerage partner.

Once engaged, the selected broker develops and implements a bespoke marketing plan for the asset. We actively support this process, which includes the creation of marketing materials, coordination of property tours, and targeted outreach to prospective tenants. Brokers also provide valuable feedback on potential building improvements or enhancements that may accelerate lease-up and improve leasing economics.

Throughout the marketing and leasing process, we maintain close oversight and collaboration with the brokerage team, holding weekly calls to review pipeline activity, discuss tour feedback, and determine next steps. JOSS remains actively involved from initial property tours through to negotiation of letters of intent (LOIs), lease execution, and tenant occupancy, ensuring a seamless and effective leasing process.

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For each property, we engage designated legal counsel to draft leases using a standard template tailored to the specific asset. The lease is then modified to reflect the agreed terms of the LOI and input from tenant counsel. We review every iteration of the LOI and lease drafts, providing guidance and resolving any outstanding issues. Upon finalization, the lease is executed by the tenant and subsequently by ownership. This rigorous process is consistently followed for both new leases and renewals, ensuring a disciplined and efficient approach to tenant replacement. Our ability to find new creditworthy tenants can be constrained by an oversupply in the market, leading to downward pressure on rents and increased incentives required to attract tenants. In addition, our process of identifying, negotiating, and securing new tenants can be time-consuming and complex, involving legal, financial, and operational considerations, which may lead to prolonged vacancy periods. For a more detailed discussion of these and other risks, see "Risk Factors" beginning on page 26 of this prospectus.

**Description of Certain Debt**

The following is a summary of the material provisions of the loan agreements evidencing our material debt to be outstanding upon the completion of this offering and the completion of the formation transactions (based on pro forma balances as of September 30, 2025). The following is only a summary and it does not include all of the provisions of such agreements, copies of which are filed as exhibits to the registration statement of which this prospectus is a part. See "Where You Can Find More Information."

*Napa Square*

The Napa Square property currently has an outstanding loan in the amount of $22,300,000, based on the balance as of September 30, 2025. This loan has a fixed interest rate at 10 Year Treasury + 2.05% or (4.04%) and is scheduled to mature on April 1, 2026, subject to no extensions. The loan agreement contains a debt service coverage ratio requirement that is tested quarterly, as well as a debt service coverage ratio requirement and a loan-to-value ratio requirement that are tested each time we exercise an option to extend the maturity date of the loan. In addition, pursuant to the terms of the Napa Square loan, we must also meet certain liquidity and net worth requirements that are tested annually and the loan agreement contains cross-default provisions with respect to certain of our other indebtedness.

We hold a 26.6% undivided interest in the Napa Square property pursuant to the TIC Agreement. Per the TIC Agreement, all tenants-in-common hold an individual, undivided ownership interest in the property. Each TIC interest is pledged as collateral under the Napa Square mortgage and may be foreclosed on in case of default. While we do not anticipate any immediate issues, it is important to note that if another borrower under the mortgage were to default, such default could trigger a cross-default or enforcement action by the lender that may adversely affect our interest in the property, subject to the lender's remedies as set forth in the loan documents.

 *55 Walkers Brook*

On October 26, 2018, the Company entered into a loan agreement (the "55 Walkers Brook Initial Loan Agreement") with East Boston Savings Bank for a total principal of $20,962,500. The 55 Walkers Brook Initial Loan Agreement accrued interest annually with a fixed interest rate of 4.70% for the fixed term of the loan. On April 19, 2024, the Company entered into an amendment to the 55 Walkers Brook Initial Loan Agreement (the "Amended Loan Agreement") with Rockland Trust Company, the successor to East Boston Savings Bank. This amendment extended the maturity date of the loan held by this property to April 19, 2027. It further increased the fixed interest rate to 7.12%. Payments of principal and interest relating to the Amended Loan Agreement are due on a monthly basis in arrears on the 20th day of each calendar month.

In connection with the amendment to the loan agreement on April 19, 2024, as discussed above, the Company further entered into a secondary loan commitment with Rockland Trust Company (the "Secondary Loan Agreement") for a total of $1,000,000 in proceeds. The proceeds of the Secondary Loan Agreement are to be provided to the Company from time to time following the satisfaction of certain conditions, including permits and approvals regarding tenant improvements to the property. Subject to the satisfaction of receiving these permits and approvals, Rockland Trust Company would disburse funds relating to these tenant improvements to the Company. Future requests of advances can be made by the Company, which are subject to the same terms and conditions.

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 *165 Township Line Road*

On October 20, 2017, the Company entered into a loan and security agreement (the "Security Agreement") with Beneficial Bank for a total principal of $9,225,000. The Security Agreement accrues interest annually at a rate of 4.50% per year. $8,558,000 of the Security Agreement was advanced to the Company for the acquisition of 165 Township Line Road. The balance of the Security Agreement, or $667,000 was to be used for tenant improvements and leasing commissions that would be advanced subject to the satisfaction of certain administrative requirements.

Monthly principal and interest payments relating to the Security Agreement are due in monthly installments in arrears. The Security Agreement can be prepaid at any time. If the Security Agreement is prepaid before its maturity date, the Company would incur a prepayment premium equal to 1.0% of the total prepayment. The Security Agreement was initially due April 1, 2025. The Company amended the Security Agreement on April 8, 2025 to further extend the maturity date of the Security Agreement to July 1, 2025. The Company further amended the Security Agreement on July 21, 2025 to further extend the maturity date of the Security Agreement to October 1, 2025. The Company further amended the Security Agreement on October 15, 2025, and deposited $60,758 additional Debt Service Reserve (as defined), to further extend the maturity date of the Security agreement to November 1, 2025. The Company further amended the Security Agreement on November 20, 2025, and deposited $78,704 additional Debt Service Reserve (as defined), to extend the maturity date of the Security Agreement to January 1, 2026. On December 23, 2025, the Company completed the sale of Building Two and an adjacent parcel at 165 Township Line Road and used the sales proceeds to pay down approximately $2.0 million of debt associated with the property. The Company is in active discussions with the lender to further extend the maturity date of the Security Agreement and expects to enter into an amendment to the Security Agreement prior to the effectiveness of the registration statement. The Security Agreement is subject to customary covenants.

The Company evaluated whether there are any conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern over the next twelve months after the financial statements are issued. The Company's cash requirements include, but are not limited to, working capital requirements and the repayment of the Company's outstanding mortgage notes outlined above. The Company has concluded that there is substantial doubt about its ability to continue without being able to refinance its current outstanding mortgage notes.

The Company is searching for additional lenders to refinance its mortgage notes outstanding and currently does not have any restrictions or limitations on obtaining any additional lenders for such a refinancing. The Company plans on using the proceeds of this offering to repay portions of its outstanding debt but plans on relying on its operations to fund its working capital needs.

**Regulatory Matters**

***General***

Many laws and governmental regulations are applicable to our properties and changes in these laws and regulations, or interpretation of such laws and regulations by agencies and the courts, occur frequently.

***Environmental, Health and Safety Matters***

Federal, state and local environmental laws and regulations regulate, and impose liability for, among other things, releases of hazardous or toxic substances into the environment. Under certain of these laws and regulations, a current or previous owner, operator or tenant of real estate may be required to investigate and clean up hazardous or toxic substances, hazardous wastes or petroleum product releases or threats of releases at the property, and may be held jointly and severally and strictly liable to a government entity or to third parties for property damage and for investigation, clean-up, monitoring, and reporting costs incurred by those parties in connection with the actual or threatened contamination. These laws may impose clean-up responsibility and liability without regard to fault, legality of conduct, or whether the current or previous owner, operator or tenant knew of, or caused, the presence of the contamination. The liability under these laws may be joint and several for the full amount of the investigation, clean-up and monitoring costs incurred or to be incurred or actions to be undertaken, although a party held jointly and severally liable may seek to obtain contributions from other identified, solvent, responsible parties of their fair share toward these costs. These costs may be substantial and can exceed the value of the property. In addition, some environmental laws may create a lien on the contaminated site in favor of the government for damages and costs it incurs in connection with the contamination. As the owner or operator of real estate, we also may be liable under common law to third parties for damages and injuries resulting from environmental contamination emanating from the real estate. The presence of contamination, or the failure to properly remediate contamination, on a property may adversely affect the ability of the owner, operator or tenant to sell or rent that property or to borrow using the property as collateral and may adversely impact our investment in that property.

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Some of our properties contain, have contained, or are adjacent to or near other properties that have contained or currently contain, storage tanks for the storage of petroleum products or other hazardous or toxic substances. Similarly, some of our properties were used in the past for commercial or industrial purposes, or are currently used for commercial purposes, that involve or involved the use of petroleum products or other hazardous or toxic substances or are adjacent to or near properties that have been or are used for similar commercial or industrial purposes. These operations create a potential for the release of petroleum products or other hazardous or toxic substances, and we could potentially be required to pay to clean up any related contamination. In addition, environmental laws regulate a variety of activities that can occur on a property, including the storage of petroleum products or other hazardous or toxic substances, air emissions, water discharges and exposure to lead-based paint or other hazardous or toxic building materials. Such laws may impose fines or penalties for violations and may require permits or other governmental approvals to be obtained for the operation of a business involving such activities. As a result of the foregoing, we could be materially and adversely affected.

Environmental, health and safety laws also govern the presence, maintenance and removal of asbestos-containing materials ("ACM"). Federal regulations require building owners and those exercising control over a building's management to identify and warn, through signs and labels, of potential hazards posed by workplace exposure to ACM in their building. The regulations also include employee training, record keeping and due diligence requirements pertaining to ACM. Significant fines can be assessed for violation of these regulations. As a result of these regulations, building owners and those exercising control over a building's management may be subject to an increased risk of litigation, including for personal injury, from workers, residents and others exposed to ACM. The presence of ACM and governing regulations may affect the value of a building in which we have invested. Federal, state and local laws and regulations also govern the removal, encapsulation, disturbance, handling and/or disposal of ACM when those materials are in poor condition or in the event of construction, remodeling, renovation or demolition of a building. These laws may impose liability for improper handling or a release into the environment of ACM and may provide for fines to be assessed on, and for third parties to seek recovery from, owners or operators of real properties for personal injury or improper exposure associated with ACM.

When excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Indoor air quality issues can also stem from inadequate ventilation, chemical contamination from indoor or outdoor sources and other biological contaminants such as pollen, viruses and bacteria. Indoor exposure to airborne toxins or irritants above certain levels has been alleged to cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, the presence of significant mold or other airborne contaminants at any of our properties could require us to undertake a costly remediation program to contain or remove the mold or other airborne contaminants from the affected property or increase indoor ventilation. In addition, the presence of significant mold or other airborne contaminants could expose us to liability from our tenants, employees of our tenants or others if property damage or personal injury occurs.

With respect to each of the properties in our initial portfolio, JOSS Realty has obtained Phase I environmental site assessments. We typically obtain Phase I environmental assessments on all properties we acquire and expect that practice to continue after the completion of this offering. Phase I environmental site assessments evaluate the property condition of such properties using record reviews, visual inspections, and interviews, and therefore are limited in scope and may not reveal all environmental conditions affecting a property. However, to the extent necessary and recommended in the Phase I environmental site assessments, we may undertake additional site assessments such as soil and/or groundwater sampling or other limited subsurface investigations and ACM or mold surveys to test for substances of concern. A prior owner or operator of a property or historic operations at our properties may have created a material environmental condition that is not known to us or the independent consultants preparing the site assessments. Material environmental conditions may have arisen after existing assessments were completed or may arise in the future, and future laws, ordinances or regulations may impose requirements that result in material additional environmental liability. If environmental concerns are not satisfactorily resolved in any initial or additional assessments, we may obtain environmental insurance policies to insure against potential environmental risk or loss depending on the type of property, the availability and cost of the insurance and various other factors we deem relevant. Our ultimate liability for environmental conditions may exceed the policy limits on any environmental insurance policies we obtain, if any.

Generally, our leases require the lessee to comply with environmental law and provide that the lessee will indemnify us for any loss or expense we incur as a result of the lessee's violation of environmental law or the presence, use or release of hazardous materials on our property attributable to the lessee. If our lessees do not comply with environmental law, or we are unable to enforce the indemnification obligations of our lessees, our results of operations would be adversely affected.

We cannot predict what other environmental, health or safety legislation or regulations will be enacted in the future, how existing or future laws or regulations will be administered or interpreted or what environmental or health or safety conditions may be found to exist on our properties in the future. Compliance with existing and new laws and regulations may require us or our tenants to spend funds to remedy environmental, health or safety problems. If we or our tenants were to become subject to significant environmental, health and safety liabilities, we could be materially and adversely affected.

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***Other Regulations***

Our properties are also subject to various federal, state and local regulatory requirements, such as fire and safety requirements. Failure to comply with these requirements could result in the imposition of fines by governmental authorities or awards of damages to private litigants. We believe that our properties are currently in substantial compliance with all such regulatory requirements. However, there can be no assurance that these requirements will not be changed, or that new requirements will not be imposed, which would require significant unanticipated expenditures by us, which expenditures could have an adverse effect on our business, financial condition, liquidity, results of operations and prospects.

**Insurance**

We carry insurance for the risks arising out of our business and operations, including coverage on all of our properties in an amount that we believe adequately covers any potential casualty losses. However, there are certain losses that we are not generally insured against or that we are not generally fully insured against because it is not deemed economically feasible or prudent to do so. In addition, changes in the cost or availability of insurance could expose us to uninsured casualty losses. In the event that any of our properties incurs a casualty loss that is not covered by insurance (in part or at all), the value of our assets will be reduced by the amount of any such uninsured loss, and we could experience a significant loss of capital invested and potential revenues in these properties. Any such losses could materially and adversely affect us. In addition, we may have no source of funding to repair or reconstruct the damaged property, and we cannot assure you that any such sources of funding will be available to us for such purposes in the future on favorable terms or at all.

**Legal Proceedings**

From time to time, we may be party to a variety of legal proceedings arising in the ordinary course of our business. We are not a party to, nor is any of our property a subject of, any material litigation or legal proceedings or, to the best of our knowledge, any threatened litigation or legal proceedings which, in the opinion of management, individually or in the aggregate, would have a material impact on our business, financial condition, liquidity, results of operations and prospects.

**Competition**

We compete against other real estate owners with similar properties located in our markets and distinguish ourselves to tenants and buyers primarily on the basis of location; rental rates and sales prices; services provided; proximity to public transit; reputation; design, condition, and resiliency of our facilities; operational efficiencies; and availability of amenities. We also compete against other real estate companies, financial institutions, pension funds, partnerships, individual investors, and others when attempting to acquire, redevelop, or sell properties.

**Human Capital Resources**

We are committed to creating a work environment that supports the growth and success of our team members. We currently employ 5 people.

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*Culture and Inclusion*

The diversity of our team members' experiences and backgrounds is core to our innovative culture. We are committed to providing a working environment in which all team members, customers and community partners should know they are respected. It is our policy to recruit talent based on skill, knowledge and experience, without discrimination. We are an equal opportunity employer, with all qualified applicants receiving consideration for employment without regard to race, color, national origin, ancestry, religion, genetic information, physical or mental disability, marital status, age, sexual orientation or identification, gender, veteran status, political affiliation, physical appearance, or any other characteristic protected by federal, state or local law. We evaluate compensation equity regularly and address pay disparities as appropriate. We are committed to developing and implementing programs and practices that create a supportive learning environment and encompasses the inclusion of diverse perspectives and experiences. We are committed to team member development and training. Our team members are offered regular opportunities to participate in formal and informal personal growth and professional development programs and opportunities.

*Business Conduct and Ethics*

We believe that a strong culture is the foundation of a strong company. At JOSS, our values define who we are and connect us to one another and to our work. We are striving to be the standard for honest, ethical and responsible business in our industry. To support this commitment, we recently adopted a Code of Conduct addressing the need for employees to act respectfully and responsibly in the workplace; work ethically with customers and stakeholders; and supporting our surrounding communities and protecting our planet. We also maintain an anti-discrimination and anti-harassment policy that includes mandatory harassment training for team members. We do not tolerate any form of racism, sexism or injustice within our facilities or across our organization.

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**MANAGEMENT**

**Our Directors, Director Nominees and Executive Officers**

The following table sets forth certain information concerning the individuals who will be our directors and executive officers upon the completion of this offering:

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Larry Botel | 59 | Chief Executive Officer, President, and Director |
| Larry McCulley | 72 | Chief Operating Officer, Secretary, and Director Nominee |
| Barry Regenstein | 68 | Interim Chief Financial Officer |
| Matthew Cypher | 48 | Director Nominee |
| Marc Pfeffer | 59 | Director Nominee |
| Linda Lewis | 57 | Director Nominee |

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**Biographical Summaries of Director Nominees and Executive Officers**

***Executive Officers***

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***Larry Botel***, our founder, has served as the Managing Partner of JOSS Realty Partners since 2005. Throughout the course of his 35-year career in real estate and private equity, Mr. Botel's work has included all facets of acquisitions and sales, complex financing structures and asset debt securitizations. He has underwritten, negotiated and closed over $4 billion in property, company and real estate debt and recapitalizations, over $2.5 billion in real estate financings, and over $1.5 billion in real estate securitizations. Prior to founding JOSS Realty Partners, Mr. Botel served in various roles with Solomon Partners and became a Senior Advisor from 2023 to 2024. He also served as the Chief Operating Officer of Broadway Real Estate Partners LLC from 2000 to 2004. Prior to joining Broadway Real Estate Partners LLC, Mr. Botel was the Vice President of Fortress Investment Group from 1997 to 2000. Additionally, he was an Associate at Mutual of New York Real Estate from 1993 to 1996 and an Analyst at Prudential Realty Commercial from 1988 to 1991. Mr. Botel holds a Bachelor of Science in Business Administration (BSBA) from Georgetown University and a Master of Business Administration (MBA) from the University of Chicago Booth School of Business. He is also an Executive in Residence at the Steers Center for Global Real Estate at Georgetown University. We believe Mr. Botel's experience in the industry and extensive business knowledge qualifies him to serve on our board of directors.

***Larry McCulley*** is a veteran commercial real estate executive with over 40 years of experience managing institutional-grade properties across the Washington, D.C. region and beyond. He has served as Chief Operating Officer at JOSS Realty Partners since April 1, 2024, where he oversees all operational aspects of the firm's portfolio, bringing decades of hands-on leadership to support investment and asset strategies. Mr. McCulley began his career in 1982 at Jones Lang Wooten Management Services, where he spent over 17 years directing property management services for approximately 4–5 million square feet of commercial real estate in the Washington, D.C. area. He then held senior executive roles at several national real estate firms, including Crescent Real Estate from 1999–2001, Shorenstein Properties from 2001–2003, and Broadway Real Estate Partners from 2003–2005, managing Class A office assets across Washington, D.C., Miami, and other major markets. In 2005, Mr. McCulley founded BMS Realty Services ("BMS"), where he served as President until its acquisition by Avison Young in 2020. At BMS, he oversaw management of over 3 million square feet of office space across the United States. He built and led cross-functional teams responsible for operations, engineering, maintenance, accounting, and financial reporting, overseeing high-profile assets and tenant relationships including JOSS Realty Partners, the NFL Players Association and Washington Harbour. Following the acquisition, he remained with Avison Young as Executive Vice President of Real Estate Services, where he managed over 1.5 million square feet of property until 2023. We believe Mr. McCulley's experience in the industry and extensive business knowledge qualifies him to serve on our board of directors.

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***Barry Regenstein***, our Chief Financial Officer, joined us in 2025. Mr. Regenstein is currently employed as an independent consultant by DLA, LLC, a professional accounting consulting services firm. He has over 30 years of business leadership experience in financial management, capital markets, and real estate development for multi-location private and public companies. Mr. Regenstein has served as President and Co-Founder of SIRE Group LLC, a global development platform specializing in 3D-printed construction and conventional real estate projects, since 2022. He also serves as President and Co-Founder of Sperry RE Capital LLC, a commercial real estate capital markets platform focused on debt and equity solutions for investors and developers nationwide, since 2021. From 2016 to 2024, Mr. Regenstein was Managing Director and Chief Financial Officer of SC Property Development, LLC, where he led financing and development operations for ground-up real estate projects. Previously, he served as Interim Chief Financial Officer of Tumbleweed Holdings from 2015 to 2018, where he was recruited by private equity to establish and manage the finance organization for a development stage company. Mr. Regenstein is a Certified Public Accountant and a licensed real estate broker in the State of New York. He received a Bachelor of Science in Accounting from the University of Maryland and a Master of Science in Taxation from Long Island University.

***Director Nominees***

***Matthew L. Cypher, Ph.D*.** is the director of the Steers Center for Global Real Assets at Georgetown University's McDonough School of Business. Dr. Cypher serves as the Atara Kaufman Professor of Real Estate and tailors coursework to teach the Four Quadrants of the real assets capital markets - public, private, debt and equity. He currently serves on the board of directors for Global Medical REIT (NYSE: GMRE) where he chairs the nominating and governance committee. From 2005 to 2012, Dr. Cypher served as a director at Invesco Real Estate ("Invesco") where he was responsible for oversight of the underwriting group, which acquired $10.2 billion worth of institutional real estate during his leadership tenure. He also oversaw the valuations group, which marked to market Invesco's North American portfolio and served as a member of the firm's investment committee and investment strategy group. He has held positions as an Adjunct Professor at Southern Methodist University and a Visiting Professor at University of Texas at Arlington. Dr. Cypher holds a B.S. from the Pennsylvania State University and a M.S. and a Ph.D. from Texas A&M University. We believe Dr. Cypher's experience in the industry and extensive business knowledge qualifies him to serve on our board of directors.

***Marc Pfeffer*** was a Co-Founding Partner, and the President and Chief Operating Officer of Warlander Asset Management, LP, an alternative investment manager focused on corporate and structured credit markets**.** Before Warlander, Mr. Pfeffer was a Managing Director at Benefit Street Partners where he served as the Chief Business Officer and an Investment Committee Member of their commercial real estate finance business. In this capacity, he was responsible for investor relations, risk management, finance and operations as well as leading the origination and securitization teams. Before Benefit Street Partners, Mr. Pfeffer spent 11 years at Deutsche Bank serving in several senior positions as the bank grew its presence in the United States and global capital markets. He was the President and a member of the Board of Directors of Deutsche Bank Securities Inc., the firm's U.S. broker dealer entity. In that role, Mr. Pfeffer oversaw finance, regulatory reporting, compliance, legal and operations functions. During the financial crisis, he was the Global Head of Commercial Real Estate Restructuring and Workouts, leading a team managing over $30 billion of distressed mortgage, syndicated loan, warehouse line and derivative exposures. Before the commercial real estate group, he served as Chief Operating Officer of Deutsche Bank's Corporate & Investment Bank – Americas and, prior to that role, as Chief Operating Officer of Deutsche Bank's Global Credit Trading business. Prior to Deutsche Bank, he was Global Head of the Collateralized Debt Obligations group at Merrill Lynch. Mr. Pfeffer began his career as an investment banker at Merrill Lynch and Hambros Resource Development. Mr. Pfeffer received a B.A. with Highest Honors from Rutgers College and an M.S. in Management from the MIT Sloan School of Management. We believe Mr. Pfeffer's experience in the industry and extensive business knowledge qualifies him to serve on our board of directors.

***Linda Lewis*** has over 25 years of experience in real estate and capital markets. She is a Managing Director of Dominion Financial Services, LLC, a leading national lender that has provided over $4 billion in mortgage financing for residential real estate investment property. Prior thereto, Ms. Lewis was CFO & Chief Structuring Officer for Waypoint Residential, a national multifamily investment firm with over 28,000 units. She was also COO & Chief Compliance Officer of a national broker dealer where she conducted more than 100 private equity offerings that raised over $2 billion for multifamily and office investments. Previously, she held senior positions including CFO & Head of IR and Portfolio Manager at various real estate private equity funds. Ms. Lewis is a graduate of the University of Pennsylvania and has an MBA from the Kellogg Business School. We believe Ms. Lewis' experience in the industry and extensive business knowledge qualifies her to serve on our board of directors.

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***Family Relationships***

There are no family relationships among any of our directors or executive officers.

**Corporate Governance Profile**

We have structured our corporate governance in a manner we believe closely aligns our interests with those of our stockholders. Notable features of our corporate governance structure include the following:

● our board of directors will not be classified and each of our directors will be subject to election annually, and our charter will provide that we may not elect to be subject to the provision of the MGCL that would permit us to classify our Board, unless we receive prior approval from stockholders;

● we will have a lead independent director;

● we will have a fully independent audit committee and independent director representation on our compensation and nominating and corporate governance committees immediately at the time of the offering, and our independent directors will meet regularly in executive sessions without the presence of our corporate officers or non-independent directors;

● at least one of our directors qualifies as an "audit committee financial expert" by applicable SEC regulations and all members of the audit committee are financially literate in accordance with the NYSE American listing standards;

● we have opted out of the control share acquisition statute in the MGCL and exempted from the Maryland Business Combination Act any business combination involving us and any person, provided such business combination is first approved by our board of directors, including a majority of our directors who are not affiliates or associates of the acquirer;

● we will not have a stockholder rights plan, and we will not adopt a stockholder rights plan in the future without (i) the approval of our stockholders or (ii) seeking ratification from our stockholders within 12 months of adoption of the plan if our board of directors determines, in the exercise of its duties under applicable law, that it is in our best interest to adopt a rights plan without the delay of seeking prior stockholder approval; and

● our bylaws will provide that our stockholders may alter or repeal any provision of our bylaws and adopt new bylaws if any such alteration, repeal or adoption is approved by the affirmative vote of a majority of the votes entitled to be cast on the matter.

Our directors will stay informed about our business by attending meetings of our board of directors and the committees on which they serve and through supplemental reports and communications.

**Director Independence**

We expect our board of directors to determine that each of Mr. Cypher, Mr. Pfeffer and Ms. Lewis is an "independent director" as such term is defined by the applicable rules and regulations of the NYSE American.

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**Board Committees**

Upon the completion of this offering, our board of directors will have three standing committees: an audit committee, a compensation committee and a nominating and corporate governance committee. The principal functions of each committee are briefly described below. Additionally, our board of directors may from time to time establish other committees to facilitate the board's oversight of management of the business and affairs of our Company. The charter of each committee will be available on our website at www.jrpllc.com upon the completion of this offering. The information on, or otherwise accessible through, our website does not constitute part of this prospectus.

***Audit Committee***

In connection with this offering, our board of directors will adopt an audit committee charter, which will define the audit committee's principal functions, including oversight related to:

● our accounting and financial reporting processes;

● the integrity of our consolidated financial statements and financial reporting process;

● our systems of disclosure controls and procedures and internal control over financial reporting;

● our compliance with financial, legal and regulatory requirements;

● the evaluation of the qualifications, independence and performance of our independent registered public accounting firm;

● the performance of our internal audit functions; and

● our overall risk exposure and management.

The audit committee will also be responsible for engaging, evaluating, compensating, and overseeing an independent registered public accounting firm, reviewing with the independent registered public accounting firm the plans for and results of the audit engagement, approving services that may be provided by the independent registered public accounting firm, including audit and non-audit services, reviewing the independence of the independent registered public accounting firm, considering the range of audit and non-audit fees and reviewing the adequacy of our internal accounting controls. The audit committee also will prepare the audit committee report required by SEC regulations to be included in our annual report.

Upon the completion of this offering, our audit committee will be composed of Mr. Cypher, Mr. Pfeffer and Ms. Lewis. Ms. Lewis will serve as chair of our audit committee. Our board of directors is expected to determine affirmatively that (i) Ms. Lewis qualifies as an "audit committee financial expert" as such term has been defined by the SEC in Item 407(d)(5) of Regulation S-K and (ii) each member of our audit committee is "financially literate" as that term is defined by NYSE American listing standards and meets the definition of "independence" for the purposes of serving on our audit committee under NYSE American listing standards and Rule 10A-3 under the Exchange Act.

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***Compensation Committee***

In connection with this offering, our board of directors will adopt a compensation committee charter, which will define the compensation committee's principal functions to include:

● assisting the board of directors in developing and evaluating potential candidates for executive officer positions and overseeing the development of executive succession plans;

● annually reviewing and approving our corporate goals and objectives with respect to compensation for executive officers and, at least annually, evaluating each executive officer's performance in light of such goals and objectives to set his or her annual compensation, including salary, bonus and equity and non-equity incentive compensation, subject to approval by the board of directors;

● providing oversight of management's decisions regarding the performance, evaluation and compensation of other officers;

● reviewing our incentive compensation arrangements to confirm that incentive pay does not encourage unnecessary risk taking and to review and discuss, at least annually, the relationship between risk management policies and practices, business strategy and our executive officers' compensation;

● reviewing and discussing with management our compensation discussion and analysis required by SEC regulations and recommending to the board of directors that such compensation discussion and analysis be included in our annual report; and

● preparing the compensation committee report to be included in our annual report.

The compensation committee shall have the authority, in its sole discretion, to retain or obtain the advice of a compensation consultant, legal counsel or other adviser as it deems appropriate. The committee may form and delegate authority to subcommittees consisting of one or more members when it deems appropriate. Upon the completion of this offering, our compensation committee will be composed of Mr. Cypher, Mr. Pfeffer and Ms. Lewis. Mr. Cypher will serve as chair of our compensation committee. Our board of directors is expected to determine affirmatively that each member of our compensation committee meets (i) the definition of "independence" for the purpose of serving on our compensation committee under applicable rules of the NYSE American and (ii) the definition of a "non-employee director" for the purpose of serving on our compensation committee under Rule 16b-3 of the Exchange Act.

***Nominating and Corporate Governance Committee***

In connection with this offering, our board of directors will adopt a nominating and corporate governance committee charter, which will define the nominating and corporate governance committee's principal functions, to include:

● identifying individuals qualified to become members of our board of directors and ensuring that our board of directors has the requisite expertise and its membership consists of persons with sufficiently diverse and independent backgrounds;

● developing, and recommending to the board of directors for its approval, qualifications for director candidates and periodically reviewing these qualifications with the board of directors;

● reviewing the committee structure of the board of directors and recommending directors to serve as members or chairs of each committee of the board of directors;

● reviewing and recommending committee slates annually and recommending additional committee members to fill vacancies as needed;

● developing and recommending to the board of directors a set of corporate governance guidelines applicable to us and, at least annually, reviewing such guidelines and recommending changes to the board of directors for approval as necessary;

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● overseeing the annual self-evaluations of the board of directors and management; and

● reviewing and approving or ratifying any transaction between us and a related person that is required to be disclosed under the rules of the SEC.

Upon the completion of this offering, we will establish a nominating and corporate governance committee comprised of Mr. Cypher, Mr. Pfeffer and Ms. Lewis. Mr. Cypher will serve as chair of our nominating and corporate governance committee. Our board of directors is expected to determine affirmatively that each member of our nominating and corporate governance committee meets the definition of "independence" under NYSE American listing standards.

**Compensation Committee Interlocks and Insider Participation**

None of our executive officers serves, or in the past has served, as a member of the board of directors or compensation committee, or other committee serving an equivalent function, of any entity that has one or more executive officers who serve as members of our board of directors or our compensation committee. None of the members of our compensation committee is, or has ever been, an officer or employee of our Company.

**Offer Letters**

Effective upon completion of this offering, we will enter into offer letters with each of Mr. Botel and Mr. McCulley. For a description of the terms of these agreements, see "Executive and Director Compensation—Executive Compensation—Narrative to Summary Compensation Table—Named Executive Officer Agreements."

**Director Compensation**

Upon the consummation of this offering, we intend to approve and implement a compensation program for our non-employee directors that consists of annual cash fees and long-term equity awards.

**Code of Conduct**

Our board of directors has adopted a code of conduct that applies to our directors, officers and employees. Among other matters, our code of conduct is designed to deter wrongdoing and to promote:

● honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

● full, fair, accurate, timely and understandable disclosure in our SEC reports and other public communications;

● compliance with applicable governmental laws, rules and regulations;

● prompt internal reporting of violations of the code to appropriate persons identified in the code;

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● accountability for adherence to the code of conduct;

● the protection of the company's legitimate business interests, including its assets and corporate opportunities; and

● confidentiality of information entrusted to directors, officers and employees by our Company and our customers.

Any waiver of the code of conduct for our directors or executive officers must be approved by a majority of our independent directors, and any such waiver shall be promptly disclosed as required by law and NYSE American regulations.

**Indemnification**

We intend to enter into indemnification agreements with each of our directors and executive officers that will obligate us to indemnify them to the maximum extent permitted by Maryland law as discussed under "Certain Provisions of Maryland Law and of Our Charter and Bylaws—Limitation of Liability and Indemnification of Directors and Officers." The indemnification agreements will provide that, if a director or executive officer is a party to, or witness in, or is threatened to be made a party to, or witness in, any proceeding by reason of his or her service as a director, officer, employee or agent of our Company or any individual who, while a director or officer of our Company and at our request, serves or has served as a director, officer, trustee, member, manager or partner of another corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or any other enterprise and who is made or threatened to be made a party to, or witness in, the proceeding by reason of such person's service in that capacity, we must indemnify the director or executive officer for all expenses and liabilities actually and reasonably incurred by him or her, or on his or her behalf, to the maximum extent permitted under Maryland law, including in any proceeding brought by the director or executive officer to enforce his or her rights under the indemnification agreement, to the extent provided by the agreement. The indemnification agreements will also require us to advance reasonable expenses incurred by the indemnitee within ten days of the receipt by us of a statement from the indemnitee requesting the advance, provided the statement evidences the expenses and is accompanied or preceded by:

● a written affirmation of the indemnitee's good faith belief that he or she has met the standard of conduct necessary for indemnification; and

● a written undertaking by the indemnitee or on his or her behalf to repay the amount paid if it shall ultimately be established that the standard of conduct has not been met.

The indemnification agreements will also provide for procedures for the determination of entitlement to indemnification, including requiring such determination be made by independent counsel after a change of control of us.

Our charter obligates us, to the maximum extent permitted by Maryland law, to indemnify and to pay or reimburse reasonable expenses in advance of final disposition of a proceeding to (i) any present or former director or officer who is made or threatened to be made a party to, or witness in, a proceeding by reason of his or her service in that capacity or (ii) any individual who, while a director or officer of our Company and at our request, serves or has served as a director, officer, partner, trustee, member or manager of another corporation, real estate investment trust, limited liability company, partnership, joint venture, trust, employee benefit plan or any other enterprise and who is made or threatened to be made a party to, or witness in, the proceeding by reason of his or her service in that capacity, as discussed under "Certain Provisions of Maryland Law and of Our Charter and Bylaws—Limitation of Liability and Indemnification of Directors and Officers." Our charter will also permit us, with the approval of our board of directors, to indemnify and advance expenses to any person who served a predecessor of ours in any of the capacities described above and to any employee or agent of our Company or a predecessor of our Company.

In addition, our directors and officers may be entitled to indemnification pursuant to the terms of the partnership agreement of our operating partnership.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our Company pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

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**EXECUTIVE AND DIRECTOR COMPENSATION**

 **Executive Compensation**

 ***Summary Compensation Table***

The following table sets forth information concerning the compensation of our named executive officers ("NEOs") for the years ended December 31, 2025, and 2024.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br> ($)** | **Bonus<br> ($)** | **Stock<br> Awards<br> ($)** | **Option<br> Awards<br> ($)** | **Non-Equity<br> Incentive Plan<br> Compensation<br> ($)** | **Nonqualified<br> Deferred<br> Compensation<br> Earnings<br> ($)** | **All Other<br> Compensation<br> ($)** | **Total<br> ($)** |
| Larry Botel | 2025 | 50000 | – |  | – |  | – |  | 50000 |
| (Chief Executive Officer and President | 2024 | 50000 | – |  | – |  | – |  | 50000 |
| Larry McCulley | 2025 | 62400 | – |  | – |  | – |  | 62400 |
| (Chief Operating Officer) | 2024 | 62400 | – |  | – |  | – |  | 62400 |

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***Narrative to Summary Compensation Table***

*Named Executive Officer Agreements*

We intend to enter into offer letters with each of Mr. Botel and Mr. McCulley, our Chief Executive Officer and Chief Operating Officer, respectively, to be co-employed by the Company and a professional employer organization. Under the offer letters, Mr. Botel and Mr. McCulley are entitled to an annual base salary of $175,000 and $125,000, respectively, and a target annual bonus equal to 100% of base salary, which can be paid in cash or grants. If the executive's employment is terminated by the Company without "cause" or he resigns for "good reason", the executive will be entitled to a severance payment equal to the sum of base salary and a bonus equal to 100% of his base salary, payable over twelve (12) months following their separation from service to the Company. Under the offer letters, Mr. Botel and Mr. McCulley are at-will employees and will be subject to the terms and conditions of all Company policies. We intend to enter into these offer letters upon the completion of this offering.

Our named executive officers did not have any equity awards outstanding in 2025.

Barry Regenstein, our interim chief financial officer, is not a named executive officer and he will be compensated at a rate of $360 per hour.

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 **2026 Equity Incentive Plan**

Prior to the consummation of this offering, our board of directors will adopt and our stockholders will approve, the JOSS Realty REIT, Inc. 2026 Equity Incentive Plan (the "2026 Equity Incentive Plan"). Any awards granted under the 2026 Equity Incentive Plan will remain subject to the terms of the 2026 Equity Incentive Plan and any applicable award agreements. The following is a summary of the material terms of the 2026 Equity Incentive Plan. This summary is qualified in its entirety by reference to the full text of the 2026 Equity Incentive Plan, which will be filed as an exhibit to the registration statement of which this prospectus is a part.

 *Purpose*. The purpose of the 2026 Equity Incentive Plan is to provide a means through which to attract and retain key personnel and to provide a means whereby our directors, officers, employees, consultants and advisors can acquire and maintain an equity interest in us, and/or equity interest in our operating partnership, or be paid incentive compensation, including incentive compensation measured by reference to the value of our common stock. This equity interest will strengthen our participants' commitment to our welfare and will align their interests with those of our stockholders.

 *Administration*. The 2026 Equity Incentive Plan will be administered by the compensation committee of our board of directors or another committee of our board of directors to which it has properly delegated power, or if no such committee or subcommittee exists, our board of directors, or the Committee (as defined in the 2026 Equity Incentive Plan). The Committee is authorized to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the 2026 Equity Incentive Plan and any instrument or agreement relating to, or any award granted under, the 2026 Equity Incentive Plan; establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Committee deems appropriate for the proper administration of the 2026 Equity Incentive Plan; adopt sub-plans; and to make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the 2026 Equity Incentive Plan. Except to the extent prohibited by applicable law or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which our securities are listed or traded, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it in accordance with the terms of the 2026 Equity Incentive Plan. Unless otherwise expressly provided in the 2026 Equity Incentive Plan, all designations, determinations, interpretations, and other decisions under or with respect to the 2026 Equity Incentive Plan or any award or any documents evidencing awards granted pursuant to the 2026 Equity Incentive Plan are within the sole discretion of the Committee, may be made at any time and are final, conclusive and binding upon all persons or entities, including, without limitation, us, any participant, any holder or beneficiary of any award, and any of our stockholders. The Committee may make grants of awards to eligible persons pursuant to terms and conditions set forth in the applicable award agreement, including subjecting such awards to performance criteria listed in the 2026 Equity Incentive Plan.

 *Awards Subject to 2026 Equity Incentive Plan*. The 2026 Equity Incentive Plan provides that no award may, at the time of its grant, cause the total number of shares of common stock subject to all outstanding awards under the 2026 Equity Incentive Plan to exceed seven percent (7%) of the issued and outstanding shares of common stock on a fully diluted basis (assuming, if applicable, the exercise of all outstanding stock options and the conversion of all warrants and convertible securities into shares of common stock, including, for the avoidance of doubt, the conversion of all operating partnership units and LTIP units granted under the 2026 Equity Incentive Plan into shares of common stock) (the "Absolute Share Limit"). No more than 325,500 shares of common stock may be issued in the aggregate pursuant to the exercise of incentive stock options. The maximum number of shares of common stock granted during a single fiscal year to any non-employee director, taken together with any cash fees paid to such non-employee director for services rendered as a non-employee director during the fiscal year, may not exceed $750,000 in total value in respect of any fiscal year occurring after the first year of any non-employee director's service on the Board and $1,500,000 in respect of the first fiscal year of such non-employee. Except for substitute awards (as described below), in the event any award expires or is settled in cash, cancelled, forfeited, terminated or accelerated without issuance to the participant of the full number of shares to which the award related, the unissued shares of common stock may be granted again under the 2026 Equity Incentive Plan. Awards may, in the sole discretion of the Committee, be granted in assumption of, or in substitution for, outstanding awards previously granted by an entity directly or indirectly acquired by us or with which we combine (referred to as "substitute awards"), and such substitute awards will not be counted against the Absolute Share Limit, except that substitute awards intended to qualify as "incentive stock options" will count against the limit on incentive stock options described above. No award may be granted under the 2026 Equity Incentive Plan after the tenth anniversary of the effective date of the 2026 Equity Incentive Plan, but awards granted before then may extend beyond that date.

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 *Options.* The Committee may grant non-qualified stock options and incentive stock options, under the 2026 Equity Incentive Plan, with terms and conditions determined by the Committee that are not inconsistent with the 2026 Equity Incentive Plan. All stock options granted under the 2026 Equity Incentive Plan are required to have a per share exercise price that is not less than 100% of the fair market value of our common stock underlying such stock options on the date such stock options are granted (other than in the case of options that are substitute awards). All stock options that are intended to qualify as incentive stock options need to be granted pursuant to an award agreement expressly stating that the options are intended to qualify as incentive stock options and will be subject to the terms and conditions that comply with the rules as may be prescribed by Section 422 of the Code. The maximum term for stock options granted under the 2026 Equity Incentive Plan will be ten years from the initial date of grant, or with respect to any stock options intended to qualify as incentive stock options, such shorter period as prescribed by Section 422 of the Code. However, if a non-qualified stock option would expire at a time when trading of shares of our common stock is prohibited by our insider trading policy (or "blackout period" imposed by us), the term will automatically be extended to the 30th day following the end of such period. The purchase price for the shares as to which a stock option is exercised may be paid to us, to the extent permitted by law, (1) in cash or its equivalent at the time the stock option is exercised; (2) in shares having a fair market value equal to the aggregate exercise price for the shares being purchased and satisfying any requirements that may be imposed by the Committee (so long as such shares have been held by the participant for at least six months or such other period established by the Committee to avoid adverse accounting treatment); or (3) by such other method as the Committee may permit in its sole discretion, including, without limitation, (A) in other property having a fair market value on the date of exercise equal to the purchase price, (B) if there is a public market for the shares at such time, through the delivery of irrevocable instructions to a broker to sell the shares being acquired upon the exercise of the stock option and to deliver to us the amount of the proceeds of such sale equal to the aggregate exercise price for the shares being purchased or (C) through a "net exercise" procedure effected by withholding the minimum number of shares needed to pay the exercise price. Any fractional shares of common stock will be settled in cash.

 *Stock Appreciation Rights*. The Committee may grant stock appreciation rights under the 2026 Equity Incentive Plan, with terms and conditions determined by the Committee that are consistent with the 2026 Equity Incentive Plan. The Committee may award stock appreciation rights in tandem with options or independent of any option. Generally, each stock appreciation right will entitle the participant upon exercise to an amount (in cash, shares or a combination of cash and shares, as determined by the Committee) equal to the product of (1) the excess of (A) the fair market value on the exercise date of one share of common stock, over (B) the strike price per share, times (2) the number of shares of common stock covered by the stock appreciation right. The strike price per share of a stock appreciation right will be determined by the Committee at the time of grant, but in no event may such amount be less than 100% of the fair market value of a share of common stock on the date the stock appreciation right is granted (except for stock appreciation rights granted in substitution of previously granted awards).

 *Restricted Shares and Restricted Stock Units*. The Committee may grant restricted shares of our common stock or restricted stock units, representing the right to receive, upon vesting and the expiration of any applicable restricted period, one share of common stock for each restricted stock unit, or, in the sole discretion of the Committee, the cash value thereof (or any combination thereof). As to restricted shares of our common stock, subject to the other provisions of the 2026 Equity Incentive Plan, the holder will generally have the rights and privileges of a stockholder as to such restricted shares of common stock, including, without limitation, the right to vote such restricted shares of common stock. Participants have no rights or privileges as a stockholder with respect to restricted stock units.

*Phantom Shares*. Phantom share represents a right to receive the fair market value of a share of common stock, or, if provided by the Committee, the right to receive the fair market value of a share of common stock in excess of a base value established by the Committee at the time of grant. Phantom shares may generally be settled in cash or by transfer of shares of common stock (as may be elected by the participant or the Committee or as may be provided by the Committee at grant). The Committee may, in its discretion and under certain circumstances (taking into account, without limitation, Section 409A of the Internal Revenue Code), permit a participant to receive as settlement of the phantom shares installment payments over a period not to exceed 10 years.

 *Restricted Limited Partnership Units*. The 2026 Equity Incentive Plan lets us grant restricted limited partnership units that are issued by our operating partnership. A restricted limited partnership unit may be a full operating partnership unit or may include LTIP units. LTIP units are structured as profits interests in our operating partnership and provide distributions to the holder of the award based on the achievement of specified levels of profitability by the operating partnership or the achievement of certain goals or events. Initially, LTIP units will not have full parity with OP units with respect to liquidating distributions. Under the terms of the LTIP units, the operating partnership will revalue its assets upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of LTIP units to equalize the capital accounts of such holders with the capital accounts of operating partnership unit holders. When the capital accounts of the holders of LTIP units equalize with the capital accounts of other operating partnership unit holders, the LTIP units will achieve full parity with OP units of the operating partnership for all purposes, including with respect to liquidating distributions. If such parity is reached, vested LTIP units may be converted into an equal number of OP units, and thereafter enjoy all the rights of OP units. The Committee will establish all other limitations and conditions of awards of restricted OP units as it deems appropriate.

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*Dividends and Dividend Equivalents*. The Committee in its sole discretion may provide part of an award (other than an option or SAR) with dividends or dividend equivalents, on such terms and conditions as may be determined by the Committee in its sole discretion. Unless otherwise provided in the award agreement, any dividend or dividend equivalent payable in respect of any share of restricted stock that remains subject to vesting conditions at the time of payment of such dividend will be retained by the Company and remain subject to the same vesting conditions and risks of forfeiture as the underlying award to which the dividend or dividend equivalent relates.

 *Long-Term Incentive Plan Units*. LTIP units are a special class of partnership interest in our operating partnership. Each LTIP unit awarded will be deemed equivalent to an award of one share of common stock under the 2026 Equity Incentive Plan, reducing the availability for other equity awards on a one-for-one basis. The vesting period for LTIP units, if any, will be determined at the time of issuance. Initially, LTIP units will not have full parity with OP units with respect to liquidating distributions. Under the terms of the LTIP units, our operating partnership will revalue its assets upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of LTIP units to equalize the capital accounts of such holders with the capital accounts of OP unit holders. Upon equalization of the capital accounts of the holders of LTIP units with other holders of OP units, the LTIP units will achieve full parity with OP units of our operating partnership for all purposes, including with respect to liquidating distributions. Subject to the terms of any applicable award agreement, upon reaching parity, holders of LTIP units will be entitled to receive distributions from our operating partnership equal to those made on our shares of common stock whether or not such LTIP units are vested. If such parity is reached, vested LTIP units may be converted into an equal number of OP units, and thereafter enjoy all the rights of OP units. However, there are circumstances under which such parity would not be reached. Until and unless such parity is reached, the value that will be realized for a given number of vested LTIP units will be less than the value of an equal number of shares of common stock.

 *Other Equity-Based Awards and Cash-Based Awards.* The Committee may grant other equity-based or cash-based awards under the 2026 Equity Incentive Plan, with terms and conditions determined by the Committee that are consistent with the 2026 Equity Incentive Plan.

 *Effect of Certain Events on 2026 Equity Incentive Plan and Awards*. In the event of (1) any dividend (other than regular cash dividends) or other distribution (whether in the form of cash, shares of common stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of common stock or other securities, issuance of warrants or other rights to acquire shares of common stock or other securities, or other similar corporate transaction or event that affects the shares of common stock (including a change in control, as defined in the 2026 Equity Incentive Plan), or (2) unusual or nonrecurring events affecting the Company, including changes in applicable rules, rulings, regulations or other requirements, that the Committee determines, in its sole discretion, could result in substantial dilution or enlargement of the rights intended to be granted to, or available for, participants (any event in (1) or (2), an "Adjustment Event"), the Committee will, in respect of any such Adjustment Event, make such proportionate substitution or adjustment, if any, as it deems equitable, to any or all of: (A) the Absolute Share Limit, or any other limit applicable under the 2026 Equity Incentive Plan with respect to the number of awards which may be granted under the 2026 Equity Incentive Plan, (B) the number of shares of common stock or other securities of the Company (or number and kind of other securities or other property) which may be issued in respect of awards or with respect to which awards may be granted under the 2026 Equity Incentive Plan or any sub-plan and (C) the terms of any outstanding award, including, without limitation, (i) the number of shares of common stock or other securities of the Company (or number and kind of other securities or other property) subject to outstanding awards or to which outstanding awards relate, (ii) the exercise price or strike price with respect to any award, or (iii) any applicable performance measures; it being understood that, in the case of any "equity restructuring," the Committee will make an equitable or proportionate adjustment to outstanding awards to reflect such equity restructuring.

In connection with any change in control, the Committee may, in its sole discretion, provide for any one or more of the following, unless provided otherwise in an award agreement: (1) a substitution or assumption of awards, or to the extent the surviving entity does not substitute or assume the awards, the acceleration of vesting of, the exercisability of, or lapse of restrictions on awards and (2) cancellation of any one or more outstanding awards and payment to the holders of such awards that are vested as of such cancellation (including any awards that would vest as a result of the occurrence of such event but for such cancellation) the value of such awards, if any, as determined by the Committee (which value, if applicable, may be based upon the price per share of common stock received or to be received by other holders of our common stock in such event), including, in the case of stock options and stock appreciation rights, a cash payment equal to the excess, if any, of the fair market value of the shares of common stock subject to the option or stock appreciation right over the aggregate exercise price or strike price thereof.

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*Nontransferability of Awards*. Each award will not be transferable or assignable by a participant other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance will be void and unenforceable against us or any of our subsidiaries. However, the Committee may, in its sole discretion, permit awards (other than incentive stock options) to be transferred, including transfers to a participant's family members, any trust established solely for the benefit of a participant or such participant's family members, any partnership or limited liability company of which a participant, or such participant and such participant's family members, are the sole member(s), and a beneficiary to whom donations are eligible to be treated as "charitable contributions" for tax purposes.

 *Amendment and Termination*. Our board of directors may amend, alter, suspend, discontinue, or terminate the 2026 Equity Incentive Plan or any portion thereof at any time; but no such amendment, alteration, suspension, discontinuance or termination may be made without stockholder approval if (1) such approval is necessary to comply with any regulatory requirement applicable to the 2026 Equity Incentive Plan or for changes in U.S. GAAP to new accounting standards; (2) it would materially increase the number of securities which may be issued under the 2026 Equity Incentive Plan (except for adjustments in connection with certain corporate events); or (3) it would materially modify the requirements for participation in the 2026 Equity Incentive Plan; and any such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any participant or any holder or beneficiary of any award will not to that extent be effective without such individual's consent.

The Committee may, to the extent consistent with the terms of any applicable award agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel, terminate or accelerate, any award granted or the associated award agreement, prospectively or retroactively (including after a participant's termination). However, except as otherwise permitted in the 2026 Equity Incentive Plan, any such waiver, amendment, alteration, suspension, discontinuance, cancellation, termination or acceleration that would materially and adversely affect the rights of any participant with respect to such award will not to that extent be effective without such individual's consent. In addition, without stockholder approval, except as otherwise permitted in the 2026 Equity Incentive Plan, (1) no amendment or modification may reduce the exercise price of any option or the strike price of any stock appreciation right; (2) the Committee may not cancel any outstanding option or stock appreciation right and replace it with a new option or stock appreciation right (with a lower exercise price or strike price, as the case may be) or other award or cash payment that is greater than the value of the canceled option or stock appreciation right; and (3) the Committee may not take any other action which is considered a "repricing" for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which our securities are listed or quoted.

*Clawback/Repayment.* All awards are subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (1) any clawback, forfeiture or other similar policy adopted by our board of directors or the Committee and as in effect from time to time and (2) applicable law. To the extent that a participant receives any amount in excess of the amount that the participant should otherwise have received under the terms of the award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), the participant will be required to repay any such excess amount to the Company.

In connection with offering, we intend to grant our Chief Executive Officer and Chief Operating Officer 154,500 and 27,300 shares of restricted stock, respectively (and such restrictions will lapse based on continued service and a portion will lapse based on achievement of performance).

 **2025 Director Compensation**

None of the members of the board of directors of JOSS Realty REIT, Inc. received compensation from the company for their services on our board of directors in 2025. See "Certain Relationships and Related Party Transactions." Messrs. Botel and McCulley did not receive any distributions from JOSS Realty Partners B, LLC and/or our affiliates in 2025. Mr. Botel holds a 5.93% equity ownership interest in 165 Township Line Road, a 2.19% equity ownership interest in 55 Walkers Brook, and a 5.00% equity ownership interest in the 26.6% ownership stake held by the company in Napa Square. Mr. McCulley does not own any equity ownership in these entities.

In connection with this initial public offering, we intend to approve and implement a compensation program that consists of annual retainer fees and long-term equity awards for our non-employee directors. It is anticipated that each non-employee directors will receive an annual cash retainer of $10,000 and will receive an upfront equity award in connection with this offering of 8,820 shares of restricted stock (such number of shares of restricted stock determined assuming full participation in this offering by existing investors and that the underwriters do not fully exercise their over-allotment option), which shall vest over three years subject to such director's continued service. The compensation under the program will be subject to the annual limits on non-employee director compensation set forth in the Equity Incentive Plan.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

Related party transactions are transactions in which we are a participant where the amount involved exceeds the lesser of $120,000 or 1% of our total assets, and a member of our board of directors or a director nominee, an executive officer or a holder of more than 5% of our voting securities (or an immediate family member of any of the foregoing) has a direct or indirect material interest. The following is a summary of related party transactions since January 1, 2022, other than compensation arrangements that are described under the sections of this prospectus entitled "Management—Director Compensation" and "Executive and Director Compensation."

**Partnership Agreement**

Concurrently with the completion of this offering, we will enter into the partnership agreement for JOSS REIT Holdings, LP, See "Limited Partnership Agreement of Our Operating Partnership"

Pursuant to the partnership agreement, members of our operating partnership will have rights beginning twelve months after the issuance of the OP units to require our operating partnership to redeem all or part of their OP units for cash equal to the then-current market value of an equal number of shares of our common stock (determined in accordance with and subject to adjustment under the partnership agreement) or, at our election, to exchange their OP units for shares of our common stock on a one-for-one basis subject to certain adjustments and the restrictions on ownership and transfer of our stock set forth in our charter and described under "Description of Our Capital Stock—Restrictions on Ownership and Transfer."

**Indemnification Agreements**

We intend to enter into indemnification agreements with our directors and executive officers. These agreements will require us to indemnify these individuals to the maximum extent permitted under Maryland law and our charter against liabilities that may arise by reason of their service to us, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified upon our receipt of certain affirmations and undertakings. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors or executive officers, we have been informed that in the opinion of the SEC, such indemnification is against public policy and is therefore unenforceable.

There is currently no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought.

**Employment Agreements**

Effective upon completion of this offering, we will enter into offer letters with each of Mr. Botel and Mr. McCulley. For a description of the terms of these agreements, see "Executive and Director Compensation—Executive Compensation—Narrative to Summary Compensation Table—Named Executive Officer Agreements."

**Equity Incentive Plan**

Before the completion of this offering, we intend to adopt the 2026 Equity Incentive Plan, under which we may grant cash and equity incentive awards to eligible service providers in order to attract, motivate and retain the talent for which we compete.

**Statement of Policy Regarding Transactions with Related Persons**

Upon completion of this offering, we will adopt a written statement of policy regarding transactions with related persons, which we refer to as our "related person policy." Our related person policy requires that a "related person" (as defined as in paragraph (a) of Item 404 of Regulation S-K) must promptly disclose to us any "related person transaction" (defined as any transaction that is anticipated would be reportable by us under Item 404(a) of Regulation S-K in which we were or are to be a participant and the amount involved exceeds the lesser of $120,000 or 1% of our total assets, and in which any related person had or will have a direct or indirect material interest) and all material facts with respect thereto. We will then promptly communicate that information to our board of directors. No related person transaction will be executed without the approval or ratification of our board of directors or a duly authorized committee of our board of directors. It is our policy that directors interested in a related person transaction will recuse themselves from any vote on a related person transaction in which they have an interest.

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**STRUCTURE AND FORMATION OF OUR COMPANY**

**Our Operating Partnership**

We are the sole general partner of our Operating Partnership. Substantially all of our assets will be held by, and our operations will be conducted through JOSS REIT Holdings, LP, our Operating Partnership. Following the completion of this offering and the formation transactions, we will have a total 71.9% ownership interest in our Operating Partnership (74.1% if the underwriters exercise their option to purchase additional shares of our common stock in full). Our interest in our Operating Partnership will generally entitle us to share in cash distributions from, and in the profits and losses of, our Operating Partnership in proportion to our percentage ownership. We will generally have the exclusive power under the partnership agreement to manage and conduct the business and affairs of our Operating Partnership, subject to certain approval and voting rights of the limited partners, which are described more fully below in "Limited Partnership Agreement of Our Operating Partnership" Our board of directors will manage our business and affairs.

Beginning on and after the date that is twelve months after the issuance of the OP units, each limited partner of our Operating Partnership will have the right to require our Operating Partnership to redeem part or all of its OP units for cash, based upon the value of an equivalent number of shares of our common stock at the time of the redemption, or, at our election, shares of our common stock on a one-for-one basis, subject to certain adjustments and the restrictions on ownership and transfer of our stock set forth in our charter and described under the section entitled "Description of Our Capital Stock—Restrictions on Ownership and Transfer." Each redemption of OP units will increase our percentage ownership interest in our Operating Partnership and our share of its cash distributions and profits and losses. See "Limited Partnership Agreement of Our Operating Partnership"

**Formation Transactions**

Prior to completion of this offering and the formation transactions, our properties were owned and managed by JOSS Realty Partners B, LLC and its affiliates (collectively, "JOSS Realty"). We were formed as a Maryland corporation on April 15, 2025, and our Operating Partnership was formed as a Delaware limited partnership in , 2026. In connection with our formation, Mr. Botel has invested $1,000 in us for 100 shares of our common stock. Such shares will be repurchased by us at the closing of this offering for $1,000. We expect to effect the following transactions in substantially the form described below (the "formation transactions"), prior to, concurrently with or shortly after the completion of this offering.

● We will redeem the preferred equity holder in 55 Walkers Brook Drive Venture LLC (i.e., 55 Walkers Brook Holdco LLC) in full for cash, and the entity 55 Walkers Brook Drive Venture LLC will be dissolved. Pursuant to the terms of the Operating Agreement governing 55 Walkers Brook Drive Venture LLC, the company may optionally redeem the preferred equity holder for cash at any time, for an amount equal to the preferred holder's capital contribution, plus a 15% return, certain management fees, paydown of any amounts loaned by the preferred holder, and a make-whole amount equal to any amounts in excess of 140% of the holder's initial capital contribution divided by the sum of all distributions received prior to the date of redemption. We expect that the aggregate cash payment to the preferred holder will be approximately $7.1 million.

● Each of the property-owning entities 55 Walkers Brook Drive Owner, LLC, 165 Township Line Road Owner LLC, and Napa Square Owner NY LLC will be contributed to the Operating Partnership in exchange for OP units.

● Investors in 55 Walkers Brook Drive Owner, LLC, 165 Township Line Road Owner LLC, and Napa Square Owner NY LLC will receive in-kind distributions of OP units based on their percentage ownership. In total, investors will receive an aggregate of 1,200,000 OP units in the exchange, or if such investors are not accredited investors at the time of merger, cash based on fair market valuations of the related properties. Following such contribution, each property-owning entity other than Napa Square Owner NY LLC will be dissolved.

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● We will sell 3,000,000 shares of our common stock in this offering (or 3,450,000 shares if the underwriters exercise their option to purchase additional shares of our common stock in full).

● We will contribute to our Operating Partnership the net proceeds from this offering and receive 3,000,000 OP units (or 3,450,000 OP units if the underwriters exercise their option to purchase additional shares of our common stock in full), in exchange.

● We will have adopted the 2026 Equity Incentive Plan, under which we will grant cash and equity-based incentive awards to officers and employees in order to attract, motivate and retain talent.

The amount of cash and OP units that we will pay or issue in exchange for the properties in our initial portfolio was determined by management and not through arm's length negotiations with an independent third party. In determining the fair market value of our initial portfolio, management undertook a diligence and underwriting process that took into account, among other factors, market capitalization rates, net operating income, landlord obligations to fund future capital expenditures, lease duration, functionality and ability to release should a tenant not renew its lease, tenant creditworthiness and discount rates based on tenant creditworthiness, property location, property age, comparable sales information and capitalization rates for properties leased to tenants with similar credit profiles and lease durations, tenant operating performance and the fact that brokerage commissions would not be payable in connection with the formation transactions. No single factor was given greater weight than any other in valuing our initial portfolio. The value attributable to our initial portfolio does not necessarily bear any relationship to the value of any particular property within that portfolio. Furthermore, we did not obtain any third-party property appraisals for the properties in our initial portfolio or any other independent third-party valuations or fairness opinions in connection with the formation transactions. As a result, the consideration we have agreed to pay in connection with the formation transactions may exceed the fair market value of our initial portfolio.

The following table sets forth the total price to be paid for each property to be acquired, including the value of the OP Units being issued to current investors in those properties:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property** | **OP Units** | **Midpoint Price<br> Per Share** | **Total<br> Value of<br> OP Units Based<br> on Midpoint Price<br> Per Share** | **Cash<br> Payment for<br> Preferred Stock<br> Redemption** | **Amount** <br> **of Debt to<br> be Assumed (1)**  |
| 55 Walkers Brook | 480000 | $5.00 | $2400000 | $7064659 | $20646853 |
| 165 Township Line Road | 240000 | $5.00 | $1200000 |  | $7675449 |
| Napa Square | 480000 | $5.00 | $2400000 |  | $5931800 |

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(1) Balance as of September
 30, 2025. In December 2025, we paid an additional $2.0 million in principal with respect to
 the 165 Township Line Road loan.

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**Consequences of this Offering and the Formation Transactions**

The following chart sets forth information about our Company, our Operating Partnership, certain related parties and the ownership interests therein on a pro forma basis. Ownership percentages in our Company and our Operating Partnership are presented assuming that the underwriters' option to purchase additional shares of our common stock is not exercised.

![](img_018.jpg)

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**Benefits to Related Parties**

Upon completion of this offering and the formation transactions, our directors and executive officers will receive material benefits, including the following:

● We will have entered into indemnification agreements with each of our directors and executive officers providing for the indemnification by us for certain liabilities and expenses incurred as a result of actions brought, or threatened to be brought, against our directors and executive officers in their capacities as such.

● We will have entered into new offer letters with each of Mr. Botel and Mr. McCulley. For a description of the terms of these offer letters, see "Executive and Director Compensation—Executive Compensation—Narrative to Summary Compensation Table and Grants of Plan-Based Awards Table—Named Executive Officer Agreements."

● We will have adopted the 2026 Equity Incentive Plan, under which we may grant cash and equity incentive awards to eligible service providers in order to attract, motivate and retain the talent for which we compete. See "Executive and Director Compensation—2026 Equity Incentive Plan" for further details.

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**POLICIES WITH RESPECT TO CERTAIN ACTIVITIES**

The following is a discussion of certain of our investment, financing and other policies. These policies have been determined by our board of directors and, in general, may be amended or revised from time to time by our board of directors without a vote of our stockholders.

**Investment Policies**

***Investments in Real Estate or Interests in Real Estate***

We conduct substantially all of our investment activities through our operating partnership and its subsidiaries. Our objective is to maximize stockholder value by generating attractive risk-adjusted returns through owning, managing and growing a diversified portfolio of commercially desirable properties. For a discussion of our properties and our acquisition and other strategic objectives, see "Business and Properties."

We expect to pursue our objective primarily through the ownership by our operating partnership of our existing properties and other acquired properties and assets. We seek to invest primarily in industrial real estate in the form of multi-tenant office properties. Our future investment and development activities are not currently limited to any geographic area or property type or to a specified percentage of our assets. While we may diversify in terms of property locations, size and market, we do not have any limit on the amount or percentage of our assets that may be invested in any one property or any one geographic area. We intend to engage in future investment activities in a manner that is consistent with the maintenance of our status as a REIT for federal income tax purposes. In addition, we may purchase assets for long-term investment, expand and improve the properties we presently own or other acquired properties, or sell such properties, in whole or in part, when circumstances warrant.

We may also participate with third parties in property ownership, through joint ventures or other types of co-ownership. These types of investments may permit us to own interests in larger assets without unduly reducing our diversification and, therefore, provide us with flexibility in structuring our portfolio. We will not, however, enter into a joint venture or other partnership arrangement to make an investment that would not otherwise meet our investment policies.

Equity investments in acquired properties may be subject to existing mortgage financing and other indebtedness or to new indebtedness that may be incurred in connection with acquiring or refinancing these properties. Debt service on such financing or indebtedness will have a priority over any distributions with respect to our common stock. Investments are also subject to our policy not to be treated as an "investment company" under the Investment Company Act of 1940, as amended (the "1940 Act").

***Securities of or Interests in Persons Primarily Engaged in Real Estate Activities and Other Issuers***

Subject to the percentage of ownership limitations and the income and asset tests necessary for REIT qualification, we may invest in securities of other REITs, other entities engaged in real estate activities or securities of other issuers, including for the purpose of exercising control over such entities. We do not intend that our investments in securities will require us to register as an investment company under the 1940 Act, and we would intend to divest such securities before any such registration would be required.

***Investments in Other Securities***

Other than as described above, we do not intend to invest in any additional securities such as bonds, preferred stocks or common stock.

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**Dispositions**

In order to maximize the performance and manage the risks within our portfolio, we intend to selectively dispose of any of our properties that we determine are not suitable for long-term investment purposes based upon management's review of our portfolio. We will ensure that such action would be in our best interest and consistent with our intention to continue to qualify for taxation as a REIT for U.S. federal income tax purposes.

**Financings and Leverage Policy**

We anticipate using a number of different sources to finance our acquisitions and operations, including cash flows from operations, asset sales, seller financing, issuance of debt securities, private financings (such as additional bank credit facilities, which may or may not be secured by our assets), property-level mortgage debt, common or preferred equity issuances or any combination of these sources, to the extent available to us, or other sources that may become available from time to time. Any debt that we incur may be recourse or non-recourse and may be secured or unsecured. We also may take advantage of joint venture or other partnering opportunities as such opportunities arise in order to acquire properties that would otherwise be unavailable to us. We may use the proceeds of our borrowings to acquire assets, to refinance existing debt or for general corporate purposes.

Although we are not required to maintain any particular leverage ratio, we intend, when appropriate, to employ prudent amounts of leverage and to use debt as a means of providing additional funds for the acquisition of assets, to refinance existing debt or for general corporate purposes. Our charter and bylaws do not limit the amount of debt that we may incur. Our board of directors has not adopted a policy limiting the total amount of debt that we may incur. We intend to target an overall debt-to-gross total assets ratio of 55%–65%, which we believe is appropriate for a real estate investment company that seeks to grow and ultimately de-lever. Over time, we expect our overall debt-to-gross total assets ratio will decrease to approximately 50%.

Our board of directors will consider a number of factors in evaluating the amount of debt that we may incur. Our board of directors may from time to time modify its views regarding the appropriate amount of debt financing in light of then-current economic conditions, relative costs of debt and equity capital, market values of our properties, general conditions in the market for debt and equity securities, fluctuations in the market price of our common stock, growth and investment opportunities and other factors. Our decision to use leverage in the future to finance our assets will be at our discretion and will not be subject to the approval of our stockholders.

**Equity Capital Policies**

To the extent that our board of directors determines to obtain additional capital, we may issue debt or equity securities, including senior securities, retain earnings (subject to provisions in the Code requiring distributions of income to maintain REIT qualification) or pursue a combination of these methods.

Existing stockholders will have no preemptive right to common or preferred stock or units issued in any securities offering by us, and any such offering might cause a dilution of a stockholder's investment in us. Although we have no current plans to do so, we may in the future issue shares of our common stock or units in our operating partnership in connection with acquisitions of property.

We may, under certain circumstances, purchase shares of our common stock or other securities in the open market or in private transactions with our stockholders, provided that those purchases are approved by our board of directors. Our board of directors has no present intention of causing us to repurchase any shares of our common stock or other securities, and any such action would only be taken in conformity with applicable federal and state laws and the applicable requirements for qualification as a REIT.

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**Code of Conduct**

We have adopted a code of conduct that seeks to identify and mitigate conflicts of interest between our employees, directors and officers and our Company. However, we cannot assure you that these policies or provisions of law will always be successful in eliminating or minimizing the influence of such conflicts, and if they are not successful, decisions could be made that might fail to reflect fully the interests of stockholders.

**Interested Director Transactions**

Pursuant to the MGCL, a contract or other transaction between us and a director or between us and any other corporation or other entity in which any of our directors is a director or has a material financial interest is not void or voidable solely because of such common directorship or interest, the presence of such director at the meeting at which the contract or transaction is authorized, approved or ratified or the counting of the director's vote in favor thereof, if:

● the fact of the common directorship or interest is disclosed or known to our board of directors or a committee of our board, and our board or such committee authorizes, approves or ratifies the contract or transaction by the affirmative vote of a majority of disinterested directors, even if the disinterested directors constitute less than a quorum;

● the fact of the common directorship or interest is disclosed or known to our stockholders entitled to vote thereon, and the contract or transaction is authorized, approved or ratified by a majority of the votes cast by the stockholders entitled to vote other than the votes of shares owned of record or beneficially by the interested director or corporation, firm or other entity; or

● the contract or transaction is fair and reasonable to us.

Upon completion of this offering, we will adopt a policy regarding transactions between us, our operating partnership or any of our subsidiaries, on the one hand, and any related persons on the other hand, which we refer to as our "related person policy." Our related person policy requires that a "related person" (as defined as in paragraph (a) of Item 404 of Regulation S-K) must promptly disclose to us any "related person transaction" (defined as any transaction that is anticipated to be reportable by us under Item 404(a) of Regulation S-K in which we were or are to be a participant and the amount involved exceeds the lesser of $120,000 or 1% of our total assets, and in which any related person had or will have a direct or indirect material interest) and all material facts with respect thereto. We will then promptly communicate that information to our board of directors. No related person transaction will be executed without the approval or ratification of our board of directors or a duly authorized committee of our board of directors. Such transaction must be approved by the affirmative vote of a majority of the disinterested directors even if less than a quorum. Where appropriate in the judgment of the disinterested directors, our board of directors may obtain a fairness opinion or engage independent counsel to represent the interests of nonaffiliated securityholders, although our board of directors will have no obligation to do so.

**Reporting Policies**

We intend to make available to our stockholders our annual reports, including our audited consolidated financial statements. After this offering, we will become subject to the information reporting requirements of the Exchange Act. Pursuant to those requirements, we will be required to file annual and periodic reports, proxy statements and other information, including audited consolidated financial statements, with the SEC.

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**LIMITED PARTNERSHIP AGREEMENT OF OUR OPERATING PARTNERSHIP**

*A summary of the material terms and provisions of the Agreement of Limited Partnership of JOSS REIT Holdings, LP, which we refer to as the "partnership agreement," is set forth below. This summary is not complete and is subject to and qualified in its entirety by reference to the applicable provisions of Delaware law and the partnership agreement. For more detail, please refer to the partnership agreement itself, a copy of which is filed as an exhibit to the registration statement of which this prospectus is a part. For purposes of this section, references to "we," "our," "us," "our Company" and the "general partner" refer to JOSS Realty REIT, Inc., in our capacity as the general partner of our operating partnership.*

**General**

Our operating partnership's partnership interests are currently classified as OP units. JOSS Realty REIT, Inc. is currently the general partner of our operating partnership and is authorized to cause our operating partnership to issue additional partnership interests, including OP units, at such prices and on such other terms as we determine in our sole discretion.

Our operating partnership is structured to permit each OP unit holder (other than the general partner in its capacity as a limited partner), through the exercise of its redemption rights, to redeem its OP units in our operating partnership for cash in an amount equal to the product of the per share market value of our shares of our common stock multiplied by the number of OP units in our operating partnership to be redeemed by such holder, subject to certain adjustments, as described in our partnership agreement. However, we may determine, in our sole and absolute discretion, to satisfy any such redemption request by acquiring some or all of the number of OP units in our partnership to be redeemed in exchange for shares of our common stock, subject to certain adjustments as described in our operating partnership agreement, in lieu of cash. For further detail on redemption and exchange, see "—Redemption of OP Units."

The general partner of our operating partnership is under no obligation to give priority to the separate interests of the limited partners in deciding whether to cause our operating partnership to take or decline to take any actions. The general partner has full, exclusive and complete responsibility and discretion in the management and control of our operating partnership; provided, however, that the approval of the holders of a majority of the OP units may be required for certain actions, including amendments to our partnership agreement (except as discussed below and in our partnership agreement) and any action in contravention of an express prohibition or limitation of our partnership agreement. The general partner may not perform any act that would subject a limited partner to liability as a general partner in any jurisdiction or any other liability except as provided in our partnership agreement or under the Delaware Revised Uniform Limited Partnership Act.

Amendments to our partnership agreement may only be proposed by the general partner of our operating partnership. Under certain circumstances, our partnership agreement expressly provides that the general partner may amend our partnership agreement in its sole discretion, without the consent of the other partners, such as to (1) reflect sales, exchanges, conversions, transfers, redemptions, capital contributions, the issuance of additional partnership units or similar events having an effect on a partner's ownership of partnership units, (2) reflect the admission of additional partners to our operating partnership and (3) reflect the exchange of interests in one or more of our subsidiaries for OP units.

**Regulatory Requirements**

Our partnership agreement provides that our operating partnership is to be operated in a manner that will (i) allow our company to satisfy the requirements for qualification and taxation as a REIT under the Code and avoid any U.S. federal income or excise tax liability and (ii) ensure that our operating partnership will not be classified as a "publicly traded partnership" taxable as a corporation for purposes of Section 7704 of the Code.

**Distributions**

We are entitled to cause our operating partnership to make distributions to our OP unit holders in our operating partnership from time to time in our sole discretion. We may, in our sole and absolute discretion, distribute the cash available for distribution on a more or less frequent basis. We shall make such reasonable efforts, as determined in our sole and absolute discretion and consistent with our qualification as a REIT, to cause our operating partnership to distribute sufficient amounts to enable us to pay shareholder dividends that will (a) satisfy the requirements for our qualification as a REIT under the Code and Regulations and (b) except to the extent otherwise determined by us, in our sole and absolute discretion, avoid any federal income or excise tax liability.

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**Allocations of Net Income and Net Loss**

Net income and net loss of our operating partnership are determined and allocated with respect to each fiscal year of our operating partnership as of the end of the year. Except as otherwise provided in the operating partnership agreement, an allocation of a share of net income or net loss is treated as an allocation of the same share of each item of income, gain, loss or deduction that is taken into account in computing net income or net loss. Except as otherwise provided in the operating partnership agreement, net income and net loss are allocated to the holders of OP units or LTIP units holding the same class or series of OP units or LTIP units in accordance with their respective percentage interests in the class or series at the end of each fiscal year. In particular, upon the occurrence of certain specified events, our operating partnership will revalue its assets and any net increase in valuation will be allocated first to the holders of LTIP units to equalize the capital accounts of such holders with the capital accounts of operating partnership unit or LTIP units holders. The operating partnership agreement contains provisions for special allocations intended to comply with certain regulatory requirements, including the requirements of Treasury Regulations Sections 1.704-1(b) and 1.704-2. Except as otherwise required by the operating partnership agreement or the Code and the Treasury Regulations, each operating partnership item of income, gain, loss and deduction is allocated among the limited partners of our operating partnership for U.S. federal income tax purposes in the same manner as its correlative item of book income, gain, loss or deduction is allocated pursuant to the operating partnership agreement. In addition, under Section 704(c) of the Code, items of income, gain, loss and deduction with respect to appreciated or depreciated property which is contributed to a partnership, such as our operating partnership, in a tax-free transaction must be specially allocated among the partners in such a manner so as to take into account such variation between tax basis and fair market value. The operating partnership will allocate tax items to the holders of OP units or LTIP units taking into consideration the requirements of Section 704(c). See "U.S. Federal Income Tax Considerations."

We, as the general partner of the operating partnership, have sole discretion to ensure that allocations of income, gain, loss and deduction of the operating partnership are in accordance with the interests of the partners as determined under the Code and all matters concerning allocations of tax items not expressly provided for in the operating partnership agreement may be determined by us in our sole discretion. In addition, we, as general partner of the operating partnership, may adopt such conventions and methods of accounting for determining asset values, basis and identities of partners for proper administration of the operating partnership and to preserve the uniformity of each series of OP units that will be traded on the NYSE American.

**Allocation of Capital Contributions**

We, as the general partner of our operating partnership, in our discretion, have the right to increase or decrease, as appropriate, the amount of capital contributions allocated to our operating partnership in general to reflect capital expenditures made by our operating partnership in respect of each portfolio, the sale or refinancing of all or a portion of the properties comprising the portfolio, the distribution of capital transaction proceeds by our operating partnership, the retention by our operating partnership of cash for working capital purposes and other events impacting the amount of capital contributions allocated to the holders. In addition, to avoid conflicts of interests, any decision by us to increase or decrease allocations of capital contributions must also be approved by a majority of our independent directors.

**Additional Distribution Considerations**

Notwithstanding the foregoing, we, as the general partner of our operating partnership, shall make such reasonable efforts, as determined by us in our sole and absolute discretion and consistent with our qualification as a REIT to cause our operating partnership to distribute sufficient amounts to enable us to pay stockholder dividends that will (i) satisfy the requirements for our qualification as a REIT and (ii) except to the extent otherwise determined by us, as the general partner, in our sole and absolute discretion, avoid any U.S. federal income or excise tax liability.

**Redemption of OP Units**

Subject to certain limitations and exceptions as described in our partnership agreement, each existing holder of OP units at the time of completion of this offering (other than the general partner in its capacity as a limited partner) will have the right to cause our operating partnership to redeem all or a portion of his, her or its OP units for cash in an amount equal to the product of the per share market value of shares of our common stock multiplied by the number of OP units in our operating partnership to be redeemed by such holder, subject to certain adjustments, as described in our partnership agreement. The market value of a share of common stock for this purpose will be equal to the average of the closing trading price of a share of common stock on a U.S. national securities exchange for the ten trading days before the day on which the redemption notice is given to us. If a holder of OP units has tendered its OP units for redemption, we, in our sole and absolute discretion, may elect to assume and satisfy our operating partnership's obligation and acquire some or all of the tendered OP units in exchange for shares of our common stock, on a one-for-one basis, subject to certain adjustments, in lieu of our operating partnership paying cash for such tendered OP units. A tendering OP unit holder may elect to withdraw its redemption request at any time prior to the acceptance of cash from the operating partnership or shares of our common stock from our company. Redemption rights of OP unit holders may not be exercised, however, if and to the extent that the delivery of shares upon such exercise would result in any person owning shares in excess of the ownership limit or any other restriction on ownership and transfer of our shares set forth in our charter.

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**LTIP Units**

Upon completion of this offering, we may cause our operating partnership to issue LTIP units to our independent directors, executive officers and certain other employees. These LTIP units will be subject to certain vesting requirements. In general, LTIP units are a class of partnership units in our operating partnership and will receive the same quarterly per unit profit distributions as the other outstanding units in our operating partnership. The rights, privileges, and obligations related to each series of LTIP units will be established at the time the LTIP units are issued. As profits interests, LTIP units initially will not have full parity, on a per unit basis, with our OP units with respect to liquidating distributions. Upon the occurrence of specified events, LTIP units can over time achieve full parity with OP units and therefore accrete to an economic value for the holder equivalent to OP units. If such parity is achieved, vested LTIP units may be converted on a one-for-one basis into OP units.

**Transferability of Limited Partner Interests**

The limited partners of our operating partnership will not be able to transfer their OP units, in whole or in part, without the general partner's written consent; provided, that a limited partner may transfer all or any portion of its OP units for bona fide estate planning purposes to an immediate family member or the legal representative, estate, trustee or other successor in interest, as applicable, of such limited partner.

**Transferability of the General Partner Interest in our Operating Partnership; Extraordinary Transactions**

We, as general partner of our operating partnership, will not be able to (i) voluntarily withdraw from our operating partnership, or (ii) transfer or assign our general partner interest in our operating partnership, including our limited partner interest, without the consent of more than 50% of the OP unit holders. In addition, subject to certain limited exceptions, we, as the general partner, will not engage in any merger, consolidation or other combination, or sale of substantially all of our assets, in a transaction which results in a change of control of our operating partnership unless:

● we receive the consent of OP unit holders holding more than 50% of the OP units (other than those held by our company or its subsidiaries), or as a result of such transaction all OP unit holders receive for each OP unit an amount of cash, securities or other property equal in value to the greatest amount of cash, securities or other property paid in the transaction to a holder of shares of our common stock, provided that if, in connection with the transaction, a purchase, tender or exchange offer shall have been made to and accepted by the holders of more than 50% of our outstanding shares of common stock, each holder of OP units shall be given the option to exchange its OP units for the greatest amount of cash, securities or other property that an OP unit holder would have received had it (1) exercised its redemption right (described above) and (2) sold, tendered or exchanged pursuant to the offer, the shares of our common stock received upon exercise of the redemption right immediately prior to the expiration of the offer.

We also may transfer all or any portion of our directly or indirectly held general partnership interest to a wholly-owned subsidiary, and following such transfer may withdraw as the general partner.

**Dissolution of our Operating Partnership**

Our operating partnership will continue in full force perpetually or until sooner dissolved in accordance with its terms or as otherwise provided by law.

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**PRINCIPAL STOCKHOLDERS**

The following table sets forth certain information regarding the beneficial ownership of shares of our common stock, including shares of our common stock into which OP units are exchangeable, immediately following the completion of this offering and the formation transactions, and after giving effect to the issuance of 3,000,000 shares of common stock issued in this offering and the share awards to be made in connection with this offering and the formation transactions, for (1) each person who is expected to be the beneficial owner of 5% or more of our outstanding common stock, (2) each of our directors, director nominees and named executive officers and (3) all of our directors, director nominees and executive officers as a group. Each person named in the table has sole voting and investment power with respect to all of the shares of our common stock shown as beneficially owned by such person, except as otherwise set forth in the notes to the table.

The SEC has defined "beneficial ownership" of a security to mean the possession, directly or indirectly, of voting power and/or investment power over such security. A stockholder is also deemed to be, as of any date, the beneficial owner of all securities that such stockholder has the right to acquire within 60 days after that date through (1) the exercise of any restricted stock unit or other right to acquire shares of common stock and (2) the exchange of OP units for shares of our common stock upon redemption of outstanding OP units.

Unless otherwise indicated, the address of each named person is c/o JOSS Realty REIT, Inc., 650 5<sup>th</sup> Avenue, Suite 2700, New York, New York 10019. No shares beneficially owned by any executive officer, director or director nominee have been pledged as security.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Beneficial Owner** | **Number of<br> Shares<br> Beneficially<br> Owned** | **Percentage of<br> Common<br> Stock<sup>(1)</sup>** | **Number of<br> Shares and<br> OP Units<br> Beneficially<br> Owned** | **Percentage of<br> Common<br> Stock and<br> OP Units<sup>(2)</sup>** |
| **Greater than 5% Stockholders** |  |  |  |  |
| **Director, Director Nominees and Named Executive Officers<sup>(3)</sup>** |  |  |  |  |
| Larry Botel |  |  | 77242 | 1.84% |
| Barry Regenstein |  |  |  |  |
| Larry McCulley |  |  |  |  |
| Matthew Cypher |  |  |  |  |
| Marc Pfeffer |  |  |  |  |
| Linda Lewis |  |  |  |  |
| **All Director, Director Nominees and Executive Officers as a Group (6 persons)** |  |  | 77242 | 1.84% |

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\* Represents less than 1.0%.

(1) Assumes 3,000,000 shares of our common stock are outstanding immediately following this offering. Does not include rights to acquire shares of our common stock, such as OP units.

(2) Includes 3,000,000 shares of common stock issued in this offering and 1,200,000 OP units issued in connection with the Formation Transactions.

(3) Does not include 238,140 restricted shares anticipated to be granted to certain officers and directors in connection with this offering, which are subject to certain vesting conditions.

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**DESCRIPTION OF OUR CAPITAL STOCK**

*The following summary of the terms of our stock does not purport to be complete and is subject to and qualified in its entirety by reference to our charter and bylaws, copies of which are filed as exhibits to the registration statement of which this prospectus is a part, and to the Maryland General Corporation Law, or MGCL. See "Where You Can Find More Information."*

**General**

Our charter authorizes us to issue up to 100,000,000 shares of common stock, $0.01 par value per share, and shares of preferred stock, $0.01 par value per share. Our charter authorizes our board of directors, with the approval of a majority of the entire board and without any action on the part of our common stockholders, to amend our charter to increase or decrease the aggregate number of shares of stock that we are authorized to issue or the number of authorized shares of any class or series of stock. Immediately after completion of this offering, 3,000,000 shares of common stock will be issued and outstanding and no shares of preferred stock will be issued and outstanding. Under Maryland law, a stockholder generally is not liable for a corporation's debts or obligations solely as a result of the stockholder's status as a stockholder.

**Common Stock**

All of the shares of common stock offered by this prospectus will, upon issuance, be duly authorized, fully paid and nonassessable. Subject to the preferential rights, if any, of holders of any other class or series of stock and to the provisions of our charter regarding restrictions on ownership and transfer of our shares of stock, holders of our common stock:

● have the right to receive ratably any distributions from funds legally available therefor, when, as and if authorized by our board of directors and declared by us; and

● are entitled to share ratably in the assets of our Company legally available for distribution to the holders of our common stock in the event of our liquidation, dissolution or winding up of our affairs.

There are generally no redemption, sinking fund, conversion, preemptive or, unless our board of directors determines otherwise, appraisal rights with respect to our common stock.

Subject to the provisions of our charter regarding the restrictions on ownership and transfer of our stock and except as may otherwise be specified in our charter, each outstanding share of common stock entitles the holder to one vote on all matters on which the stockholders are entitled to vote, including the election of directors. There is no cumulative voting in the election of directors. Directors are elected by a plurality of the votes cast. This means that the holders of a majority of the outstanding shares of our common stock can effectively elect all of the directors then standing for election, and the vote of the holders of the remaining shares will not be sufficient to elect any directors.

Under the MGCL and our charter, we generally cannot amend our charter, consolidate, convert, merge, sell all or substantially all of its assets, engage in a statutory share exchange or dissolve unless the action is advised by our board of directors and approved by the affirmative vote of stockholders entitled to cast a majority of the votes entitled to be cast on the matter. Maryland law also permits a Maryland corporation to transfer all or substantially all of its assets without the approval of its stockholders to an entity owned, directly or indirectly, by the corporation. Because our operating assets may be held by our operating partnership and wholly owned subsidiaries of our operating partnership, these subsidiaries may be able to merge or transfer all or substantially all of their assets without the approval of our stockholders.

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**Power to Issue Additional Shares of Common Stock and Preferred Stock**

Our board of directors may, without common stockholder approval, classify any unissued shares of our preferred stock and reclassify any unissued shares of our common stock or shares of our preferred stock into other classes or series of stock. Prior to the issuance of classified or reclassified shares of any new class or series, our board of directors must set, subject to the provisions of our charter relating to the restrictions on ownership and transfer of our stock, the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms or conditions of redemption for each class or series of stock. In addition, our charter authorizes our board of directors, with the approval of a majority of the entire board and without stockholder approval, to amend our charter to increase or decrease the aggregate number of shares of stock, or the number of shares of any class or series of stock, that we are authorized to issue. These actions can be taken without stockholder approval, unless stockholder approval is required by applicable law, the terms of any other class or series of our stock or the rules of any stock exchange on which our securities may be listed or traded. Although our board of directors does not currently intend to do so, it could authorize us to issue a class or series of stock that could, depending upon the terms of the particular class or series, delay, defer or prevent a transaction or a change in control of our Company that might involve a premium price for our stockholders or otherwise be in their best interests.

**Restrictions on Ownership and Transfer**

In order for us to qualify as a REIT under the Code, our stock must be beneficially owned by 100 or more persons during at least 335 days of a taxable year of 12 months (other than the first year for which an election to be a REIT has been made) or during a proportionate part of a shorter taxable year. Also, not more than 50% of the value of the outstanding shares of our stock may be owned, directly or indirectly, by five or fewer individuals (as defined in the Code to include certain entities such as qualified pension plans) during the last half of a taxable year (other than the first year for which an election to be a REIT has been made). To qualify as a REIT, we must satisfy other requirements as well. See "U.S. Federal Income Tax Considerations—Taxation of Our Company."

Our charter contains certain restrictions on the ownership and transfer of our stock. Subject to the exceptions described below, no person or entity may beneficially own, or be deemed to own by virtue of the applicable constructive ownership provisions of the Code, more than 9.8% (in value or in number of shares, whichever is more restrictive) of our outstanding common stock, 9.8% (in value or in number of shares, whichever is more restrictive) of any outstanding series or class of our preferred stock or 9.8% (in value) of the aggregate of all classes and series of our outstanding stock. We refer to these restrictions, collectively, as the "ownership limits."

The constructive ownership rules under the Code are complex and may cause stock owned actually or constructively by a group of related individuals and/or entities to be owned constructively by one individual or entity. As a result, the acquisition of less than 9.8% of our outstanding common stock or 9.8% of the aggregate of all classes and series of our outstanding stock, or the acquisition of an interest in an entity that owns our stock could, nevertheless, cause the acquiror or another individual or entity to own our stock in excess of the ownership limits.

Our board of directors may, in its sole discretion, subject to such conditions as it may determine and the receipt of certain representations and undertakings, prospectively or retroactively, waive the ownership limit or establish a different limit on ownership, or excepted holder limit, for a particular person if the person's ownership in excess of the ownership limit would not result in our being "closely held" within the meaning of Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year) or otherwise would result in our failing to qualify as a REIT. As a condition of its waiver or grant of excepted holder limit, our board of directors may, but is not required to, require an opinion of counsel or ruling from the IRS, satisfactory to our board of directors in order to determine or ensure our qualification as a REIT and may impose such other conditions and limitations as our board of directors may determine.

Our board of directors may, at any time, increase or decrease any or all of the ownership limits for one or more persons unless, after giving effect to any increased or decreased ownership limit, five or fewer individuals (as defined in the Code to include certain entities such as qualified pension plans) would beneficially own, in the aggregate, more than 49% in value of the aggregate outstanding shares of our stock, cause us to be "closely held" under Section 856(h) of the Code (without regard to whether the interest is held during the last half of a taxable year) or cause us to otherwise fail to qualify as a REIT. A decreased ownership limit will not apply to any person whose ownership of our stock at the time the ownership limit is decreased exceeds the decreased ownership limit until the person's ownership of our stock equals or falls below the decreased ownership limit, but any further acquisition of our stock (or increased beneficial ownership or constructive ownership of shares of our stock) by such a person after the decrease in the ownership limit will violate the decreased ownership limit.

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In addition to the ownership limits, our charter prohibits:

● any person from beneficially or constructively owning shares of our stock that could result in our being "closely held" under Section 856(h) of the Code (without regard to whether the stockholder's interest is held during the last half of a taxable year) or otherwise cause us to fail to qualify as a REIT; and

● any person from transferring shares of our stock if the transfer would result in shares of our stock being beneficially owned by fewer than 100 persons.

Any person who acquires, attempts or intends to acquire beneficial or constructive ownership of our stock in a manner that will or may violate any of the foregoing restrictions on transfer and ownership, or any person who would have owned shares of our stock transferred to a charitable trust as described below, must give written notice immediately to us or, in the case of a proposed or attempted transaction, give us at least 15 days prior written notice, and provide us with such other information as we may request in order to determine the effect, if any, of such transfer on our status as a REIT.

Any attempted transfer of shares of our stock that, if effective, would result in our stock being beneficially owned by fewer than 100 persons will be void and the intended transferee will acquire no rights in the shares. Any attempted transfer of our stock that, if effective, would result in a violation of the ownership limits, our being "closely held" under Section 856(h) of the Code (without regard to whether the stockholder's interest is held during the last half of a taxable year) or our otherwise failing to qualify as a REIT, will cause the number of shares causing the violation (rounded up to the nearest whole share) to be transferred automatically to one or more trusts for the exclusive benefit of one or more charitable beneficiaries, and the proposed transferee will not acquire any rights in the shares. The automatic transfer will be effective as of the close of business on the business day before the date of the attempted transfer or other event that resulted in the transfer to the trust. If the transfer to the trust as described above does not occur or is not automatically effective, for any reason, to prevent a violation of the applicable restrictions on ownership and transfer of our stock, then the attempted transfer which, if effective, would have resulted in a violation of the restrictions on ownership and transfer of our stock will be void.

Shares of our stock held in the trust will be issued and outstanding shares. The proposed transferee will not benefit economically from ownership of any shares of our stock held in the trust and will have no rights to dividends or other distributions and no rights to vote or other rights attributable to the shares of our stock held in the trust. The proposed transferee will have no claim, cause of action, or any other recourse whatsoever against the purported transferor of such shares of our stock. The trustee of the trust will exercise all voting rights and receive all dividends and other distributions with respect to shares held in the trust for the exclusive benefit of the charitable beneficiary of the trust. Any dividend or other distribution paid before we discover that the shares have been transferred to a trust as described above must be repaid by the recipient to the trustee upon demand. Subject to Maryland law, effective as of the date that the shares have been transferred to the trust, the trustee will have the authority to rescind as void any vote cast by a proposed transferee before our discovery that the shares have been transferred to the trust and to recast the vote in accordance with the desires of the trustee (acting for the benefit of the charitable beneficiary). However, if we have already taken irreversible corporate action, then the trustee may not rescind and recast the vote.

Within 20 days of receiving notice from us of a transfer of shares to the trust, the trustee must sell the shares to a person, designated by the trustee, that could own the shares without violating the ownership limits or the other restrictions on ownership and transfer of our stock contained in our charter. After the sale of the shares, the interest of the charitable beneficiary in the shares transferred to the trust will terminate and the trustee must distribute to the proposed transferee an amount equal to the lesser of:

● the price paid by the proposed transferee for the shares (or, if the proposed transferee did not pay market price in connection with the event that resulted in the transfer to the trust (e.g., a gift, devise or other such transaction), the market price of the shares on the day of the event that resulted in the transfer of such shares to the trust); and

● the price per share received by the trustee (net of any commissions and other expenses) from the sale or other disposition of the shares.

The trustee may reduce the amount payable to the proposed transferee by the amount of any dividends or other distributions that we paid to the proposed transferee and that is owed by the proposed transferee to the trustee as described above. The trustee must distribute any remaining funds held by the trust with respect to the shares to the charitable beneficiary. If the shares are sold by the proposed transferee before we discover that they have been transferred to the trust, the shares will be deemed to have been sold on behalf of the trust and the proposed transferee must pay to the trustee, upon demand, if any, the amount that the proposed transferee received in excess of the amount that the proposed transferee would have received had the shares been sold by the trustee.

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Shares of our stock held in the trust will be deemed to be offered for sale to us, or our designee, at a price per share equal to the lesser of:

● the price per share in the transaction that resulted in the transfer to the trust (or, if the event that resulted in the shares being transferred to the trust did not involve a purchase of such shares at market price, the market price of the shares on the day of the event causing the shares to be held in the trust); and

● the market price on the date we, or our designee, accept the offer.

We may reduce the amount so payable by the amount of any dividends or other distributions that we paid to the proposed transferee and that is owed by the proposed transferee to the trustee as described above, and we may pay such amount to the trustee for distribution to the charitable beneficiary of the trust. We have the right to accept the offer until the trustee has otherwise sold the shares of our stock held in the trust. Upon a sale to us, the interest of the charitable beneficiary in the shares sold will terminate and the trustee must distribute the net proceeds of the sale and any remaining funds held by the charitable trust with respect to the shares to the proposed transferee.

Every owner of at least five percent (or such lower percentage as required by the Code or the regulations promulgated thereunder) of the outstanding shares of any class or series of our stock, within 30 days after the end of each taxable year, must give us written notice stating the person's name and address, the number of shares of each class and series of our stock that the person beneficially owns and a description of the manner in which the shares are held. Each such owner also must provide us with any additional information that we request in order to determine the effect, if any, of the person's beneficial ownership on our status as a REIT and to ensure compliance with the ownership limits. In addition, any person or entity that is a beneficial owner or constructive owner of shares of our stock and any person or entity (including the stockholder of record) who is holding shares of our stock for a beneficial owner or constructive owner must, on request, disclose to us in writing such information as we may request in order to determine our status as a REIT or to comply, or determine our compliance, with the requirements of any governmental or taxing authority and to ensure compliance with the ownership limits.

Any certificates representing shares of our stock will bear a legend referring to the restrictions described above.

These restrictions on ownership and transfer of our stock will not apply if our board of directors determines that it is no longer in our best interests to attempt to qualify, or to continue to qualify, as a REIT or that compliance with any or all of these restrictions is no longer required in order for us to qualify as a REIT.

These restrictions on ownership and transfer of our stock could delay, defer or prevent a transaction or a change of control of us that might involve a premium price for our common stock or otherwise be in the best interests of our stockholders.

**Transfer Agent and Registrar**

The transfer agent and registrar for shares of our common stock will be Broadridge Corporate Issuer Solutions, LLC. The transfer agent and registrar's address is 51 Mercedes Way, Edgewood, New York 11717.

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**CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS**

*The following summary of certain provisions of Maryland law and of our charter and bylaws does not purport to be complete and is subject to and qualified in its entirety by reference to Maryland law, including the MGCL, and our charter and bylaws. Copies of our charter and bylaws are filed as exhibits to the registration statement of which this prospectus is a part. See "Where You Can Find More Information."*

**Our Board of Directors**

Our charter and bylaws provide that the number of our directors may be established only by our board of directors but may not be fewer than the minimum number required under the MGCL, which is one, nor, unless our bylaws are amended, more than fifteen. Our charter provides that, at such time as we become eligible to elect to be subject to Title 3, Subtitle 8 of the MGCL and subject to the rights of holders of one or more classes or series of preferred stock, any vacancy on our board of directors may be filled only by a majority of the remaining directors, even if the remaining directors do not constitute a quorum, and any individual elected to fill a vacancy will serve for the remainder of the full term of the directorship in which such vacancy occurred and until his or her successor is duly elected and qualifies.

Pursuant to our charter and bylaws, each member of our board of directors is elected by our stockholders to serve until the next annual meeting of stockholders and until his or her successor is duly elected and qualifies. Holders of our common stock have no right to cumulative voting in the election of directors. Directors are elected by a plurality of the votes cast. This means that the holders of a majority of the outstanding shares of our common stock can effectively elect all of the directors then standing for election, and the vote of the holders of the remaining shares will not be sufficient to elect any directors.

**Removal of Directors**

**Business Combinations**

Under the MGCL, certain "business combinations" (including a merger, consolidation, statutory share exchange or, in certain circumstances, an asset transfer or issuance or reclassification of equity securities) between a Maryland corporation and an interested stockholder (defined generally as any person who beneficially owns, directly or indirectly, 10% or more of the voting power of the corporation's outstanding voting stock or an affiliate or associate of the corporation who, at any time during the two-year period immediately prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then-outstanding stock of the corporation) or an affiliate of such an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. Thereafter, any such business combination must generally be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:

● 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

● two-thirds of the votes entitled to be cast by holders of voting stock of the corporation, other than shares of stock 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,

unless, among other conditions, the corporation's common stockholders receive a minimum price (as defined in the MGCL) for their shares and the consideration is received in cash or in the same form as previously paid by the interested stockholder for its shares. A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which the person otherwise would have become an interested stockholder. A corporation's board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board of directors.

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Pursuant to the MGCL, our board of directors has by resolution exempted business combinations between us and any other person, provided that the business combination is first approved by our board of directors (including a majority of our directors who are not affiliates or associates of such person). Consequently, the five-year prohibition and the supermajority vote requirements will not apply to a business combination approved by our board of directors, including a majority of our directors who are not affiliates or associates of the person party to the business combination. As a result, any such persons may be able to enter into business combinations with us that may not be in the best interests of our stockholders, without compliance with the supermajority vote requirements and the other provisions of the statute. We cannot assure you that our board of directors will not amend or repeal this resolution in the future.

**Control Share Acquisitions**

The MGCL provides that holders of "control shares" of a Maryland corporation acquired in a "control share acquisition" have no voting rights with respect to such shares except to the extent approved by the affirmative vote of at least two-thirds of the votes entitled to be cast on the matter. Shares of stock owned by the acquiror, an officer of the corporation or an employee of the corporation who is also a director of the corporation are excluded from shares of stock entitled to vote on the matter.

"Control shares" are voting shares of stock that, if aggregated with all other such shares of stock owned by the acquiror, or in respect of which the acquiror is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting power:

● one-tenth or more but less than one-third;

● one-third or more but less than a majority; or

● a majority or more of all voting power.

Control shares do not include shares of stock that the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval or shares acquired directly from the corporation. A "control share acquisition" means the acquisition of issued and outstanding control shares, subject to certain exceptions.

A person who has made or proposes to make a control share acquisition, upon satisfaction of certain conditions (including an undertaking to pay expenses and making an "acquiring person statement" as described in the MGCL), may compel the board of directors to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares of stock. If no request for a meeting is made, the corporation may itself present the question at any stockholders meeting.

If voting rights are not approved at the meeting or if the acquiring person does not deliver an "acquiring person statement" as required by the statute, then, subject to certain conditions and limitations, the corporation may redeem for fair value any or all of the control shares (except those for which voting rights have previously been approved). Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date of the last control share acquisition by the acquiror or, if a meeting of stockholders is held at which the voting rights of such shares of stock are considered and not approved, as of the date of such meeting. If voting rights for control shares are approved at a stockholders' meeting and the acquiror becomes entitled to vote a majority of the shares of stock entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares of stock as determined for purposes of such appraisal rights may not be less than the highest price per share paid by the acquiror in the control share acquisition.

The control share acquisition statute does not apply to (i) shares acquired in a merger, consolidation or statutory share exchange if the corporation is a party to the transaction or (ii) acquisitions approved or exempted by the charter or bylaws of the corporation.

Our bylaws contain a provision exempting from the control share acquisition statute any and all acquisitions by any person of shares of our stock. This provision may be amended or eliminated at any time in the future by our board of directors.

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**Subtitle 8**

Subtitle 8 of Title 3 of the MGCL permits a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors to elect to be subject, by provision in its charter or bylaws or a resolution of its board of directors and notwithstanding any contrary provision in the charter or bylaws, to any or all of five provisions of the MGCL that provide, respectively, for:

● a classified board;

● a two-thirds vote requirement for removing a director;

● a requirement that the number of directors be fixed only by vote of the board of directors;

● a requirement that a vacancy on the board of directors be filled only by a vote 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 until a successor is elected and qualifies; and

● a majority requirement for the calling of a stockholder-requested special meeting of stockholders.

Our charter provides that, at such time as we become eligible to make a Subtitle 8 election, we elect to be subject to the provisions of Subtitle 8 relating to the filling of vacancies on our board of directors. Through provisions in our charter and bylaws unrelated to Subtitle 8, we will also (i) vest in our board the exclusive power to fix the number of directorships and (ii) require, unless called by our Chairman, Chief Executive Officer, President or our board of directors, the written request of stockholders entitled to cast a majority of all the votes entitled to be cast at such meeting to call a special meeting. We have not elected to be subject to any of the other provision of Subtitle 8, including the provisions that would permit us to classify our board of directors without stockholder approval. Moreover, our charter provides that, without the affirmative vote of a majority of the votes cast on the matter by our stockholders entitled to vote generally in the election of directors, we may not elect to be subject to the provision of Subtitle 8 that permits our board of directors to classify itself.

**Anti-takeover Effect of Certain Provisions of Maryland Law and of Our Charter and Bylaws**

If the applicable exemption in our bylaws is repealed and the applicable resolution of our board of directors is repealed, the control share acquisition provisions and the business combination provisions of the MGCL, respectively, as well as the provisions in our charter and bylaws, as applicable, on removal of directors and the filling of director vacancies under Subtitle 8 and the restrictions on ownership and transfer of shares of stock, together with the advance notice and stockholder-requested special meeting provisions of our bylaws, alone or in combination, could serve to delay, deter or prevent a transaction or a change in our control that might involve a premium price for holders of our common stock or otherwise be in their best interests.

**Amendments to Our Charter and Bylaws**

Under the MGCL and our charter, amendments to our charter generally must be declared advisable by a majority of our board of directors and approved by the affirmative vote of stockholders entitled to cast a majority of the votes entitled to be cast on the matter.

Our board of directors has the power to adopt, alter or repeal any provision of our bylaws and to make new bylaws. In addition, the stockholders may alter or repeal any provision of our bylaws and adopt new bylaws with the approval by a majority of the votes entitled to be cast on the matter.

**Meetings of Stockholders**

Pursuant to our bylaws, an annual meeting of our stockholders for the purpose of the election of directors and the transaction of any business will be held on a date and at the time and place set by our board of directors. In addition, our Chairman, Chief Executive Officer, President or our board of directors may call a special meeting of our stockholders. A special meeting of our stockholders to act on any matter that may properly be considered at a meeting of our stockholders must also be called by our secretary upon the written request of stockholders entitled to cast a majority of all the votes entitled to be cast on such matter at the meeting and containing the information and other materials required by our bylaws.

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**Advance Notice of Director Nominations and New Business**

Our bylaws provide that nominations of individuals for election to our board of directors and proposals of other business to be considered by stockholders at any annual meeting of our stockholders may be made only (i) pursuant to our notice of the meeting, (ii) by or at the direction of our board of directors or (iii) by a stockholder who was a stockholder of record at the record date set by the board of directors for the purpose of determining stockholders entitled to vote at the meeting, at the time of giving of notice by the stockholder as provided for in our bylaws and at the time of the meeting (and any postponement or adjustment thereof), who is entitled to vote at the meeting in the election of each individual so nominated or on such other business and who has complied with the advance notice procedures set forth in and provided the information and other materials required by our bylaws. Stockholders generally must provide notice to our secretary not before the 150th day or after 5:00 p.m., Eastern Time, on the 120th day before the first anniversary of the date of our proxy statement for the solicitation of proxies for the election of directors at the preceding year's annual meeting except that notice of any nomination or other business to be properly brought before the first annual meeting of our stockholders convened after the closing of this offering or if the date of the annual meeting is advanced or delayed by more than 30 days from the first anniversary of the date of the preceding year's annual meeting, to be timely, a stockholder's notice must be delivered not earlier than the 150th day prior to the date of such annual meeting and not later than 5:00 p.m., Eastern time, on the later of the 120th day prior to the date of such annual meeting, as originally convened, or the tenth day following the day on which public announcement of the date of such meeting is first made.

Only the business specified in our notice of the meeting may be brought before a special meeting of our stockholders. Nominations of individuals for election to our board of directors at a special meeting of stockholders may be made only (i) by or at the direction of our board of directors or (ii) provided that the meeting has been called in accordance with our bylaws for the purpose of electing directors, by a stockholder who is a stockholder of record at the record date set by the board of directors for the purpose of determining stockholders entitled to vote at the meeting, at the time of giving of the notice required by our bylaws and at the time of the meeting (and any postponement or adjustment thereof), who is entitled to vote at the meeting in the election of each individual so nominated and who has complied with the advance notice provisions set forth in and provided the information and other materials required by our bylaws. Stockholders generally must provide notice to our secretary not before the 120th day before such special meeting and not later than 5:00 p.m., Eastern Time, on the later of the 90th day before the special meeting or the tenth day after public announcement of the date of the special meeting.

**No Stockholder Rights Plan**

We do not have a stockholder rights plan, and we will not adopt a stockholder rights plan in the future without (a) the approval of our stockholders or (b) seeking ratification from our stockholders within 12 months of adoption of the plan if the board of directors determines, in the exercise of its duties under applicable law, that it is in our best interests to adopt a rights plan without the delay of seeking prior stockholder approval.

**Exclusive Forum**

Although we believe these provisions will benefit us by limiting costly and time-consuming litigation in multiple forums and by providing increased consistency in the application of applicable law, these exclusive forum provisions may limit the ability of our stockholders to bring a claim in a judicial forum that such stockholders find favorable for disputes with us or our directors, officers or employees, which may discourage such lawsuits against us and our directors, officers and other employees.

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**Limitation of Liability and Indemnification of Directors and Officers**

Maryland law permits a Maryland corporation to include in its charter a provision eliminating the liability of its directors and officers to the corporation and its stockholders for money damages, except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty that is established by a final judgment and that is material to the cause of action. Our charter contains a provision that eliminates the liability of our directors and officers to the maximum extent permitted by Maryland law.

The MGCL requires us (unless our 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 a party by reason of his or her service in that capacity. The MGCL permits us to indemnify our present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made unless it is established that:

● the act or omission of the director or officer was material to the matter giving rise to the proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty;

● the director or officer actually received an improper personal benefit in money, property or services; or

● in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful.

Under the MGCL, we may not indemnify a director or officer in a suit by us or on our behalf in which the director or officer was adjudged liable to us or in a suit in which the director or officer was adjudged liable on the basis that personal benefit was improperly received. 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 us or on our behalf, or for a judgment of liability on the basis that personal benefit was improperly received, is limited to expenses.

In addition, the MGCL permits us to advance reasonable expenses to a director or officer upon our 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 by us; and

● a written undertaking by or on behalf of the director or officer to repay the amount paid or reimbursed by us if it is ultimately determined that the director or officer did not meet the standard of conduct.

Our charter requires us, to the maximum extent permitted by Maryland law in effect from time to time, to indemnify and, without requiring a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse reasonable expenses in advance of final disposition of a proceeding to:

● any present or former director or officer who is made or threatened to be made a party to, or witness in, a proceeding by reason of his or her service in that capacity; or

● any individual who, while a director or officer of our Company and at our request, serves or has served as a director, officer, partner, trustee, member or manager of another corporation, real estate investment trust, limited liability company, partnership, joint venture, trust, employee benefit plan or any other enterprise and who is made or threatened to be made a party to, or witness in, the proceeding by reason of his or her service in that capacity.

Our charter also permits us, with the approval of our board of directors, to indemnify and advance expenses to any person who served a predecessor of ours in any of the capacities described above and to any employee or agent of our Company or a predecessor of our Company.

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In addition, our directors and officers may be entitled to indemnification pursuant to the terms of the partnership agreement of our operating partnership. See "Limited Partnership Agreement of Our Operating Partnership."

Insofar as the foregoing provisions permit indemnification of directors, officers or persons controlling us for liability arising under the Securities Act, we have been informed that, in the opinion of the SEC, this indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**Indemnification Agreements**

We intend to enter into indemnification agreements with each of our directors and executive officers as described in "Management—Indemnification Agreements."

**REIT Qualification**

Our charter provides that our board of directors may revoke or otherwise terminate our REIT election, without approval of our stockholders, if the board of directors determines that it is no longer in our best interests to attempt to, or continue to, qualify as a REIT.

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**SHARES ELIGIBLE FOR FUTURE SALE**

**General**

Upon the completion of this offering, we expect to have outstanding 3,000,000 shares of our common stock (3,450,000 shares if the underwriters' option to purchase additional shares is exercised in full). In addition, a total of 1,200,000 shares of our common stock are issuable upon exchange of OP units that we expect to be outstanding upon completion of this offering.

Of these shares, the 3,000,000 shares of our common stock sold in this offering (3,450,000 shares of our common stock if the underwriters' option to purchase additional shares is exercised in full) will be freely transferable without restriction or further registration under the Securities Act, subject to the restrictions on ownership and transfer of our stock set forth in our charter.

There is currently no public market for our common stock. Trading of our common stock on the NYSE American is expected to commence following the pricing of this offering. No assurance can be given as to (1) the likelihood that an active market for common stock will develop, (2) the liquidity of any such market, (3) the ability of the stockholders to sell their shares or (4) the prices that stockholders may obtain for any of their shares. No prediction can be made as to the effect, if any, that future sales of shares, or the availability of shares for future sale, will have on the market price prevailing from time to time. Sales of substantial amounts of our common stock (including shares of our common stock issued upon the exchange of OP units), or the perception that such sales could occur, may adversely affect prevailing market prices of our common stock. See "Risk Factors—Risks Related to this Offering and Ownership of Shares of Our Common Stock."

For a description of certain restrictions on ownership and transfer of shares of our common stock held by certain of our stockholders, see "Description of Our Capital Stock—Restrictions on Ownership and Transfer."

**Rule 144**

After giving effect to this offering, we expect that no shares of our outstanding common stock and 1,200,000 OP units will be "restricted" securities under the meaning of Rule 144 under the Securities Act and may not be sold in the absence of registration under the Securities Act unless an exemption from registration is available, including the exemption provided by Rule 144.

In general, under Rule 144 as currently in effect, beginning 90 days after the date of this prospectus, a person who is not deemed to have been an affiliate of ours at any time during the three months preceding a sale and who has beneficially owned shares considered to be restricted securities under Rule 144 for at least six months would be entitled to sell those shares, subject only to the availability of current public information about us. A non-affiliated person who has beneficially owned shares considered to be restricted securities under Rule 144 for at least one year would be entitled to sell those shares without regard to the provisions of Rule 144.

An affiliate of ours who has beneficially owned shares of our common stock for at least six months would be entitled to sell, within any three-month period, a number of shares that does not exceed the greater of:

● 1% of the shares of our common stock then outstanding, which we expect will equal approximately 30,000 shares immediately after this offering (34,500 shares if the underwriters exercise in full their option to purchase additional shares); or

● the average weekly trading volume of our common stock on the NYSE American during the four calendar weeks preceding the date on which notice of the sale is filed with the SEC;

provided, in each case, that we are subject to the Exchange Act periodic reporting requirements for at least 90 days before the sale and have filed all required reports during that time period. Such sales by affiliates must also comply with the manner of sale, current public information and notice provisions of Rule 144.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to manner of sale provisions, notice requirements and the availability of current public information about us.

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**Rule 701**

Generally, an employee, officer, director or qualified consultant of ours who purchased shares of our common stock before the effective date of the registration statement relating to this prospectus, or who holds options as of that date, pursuant to a written compensatory plan or contract may rely on the resale provisions of Rule 701 under the Securities Act. Under Rule 701, these persons who are not our affiliates may generally sell those securities, commencing 90 days after the effective date of the registration statement, without having to comply with the current public information and minimum holding period requirements of Rule 144. These persons who are our affiliates may generally sell those securities under Rule 701, commencing 90 days after the effective date of the registration statement, without having to comply with Rule 144's minimum holding period restriction.

**Lock-Up Agreements**

In addition to the limits placed on the sale of our common stock by operation of Rule 144, Rule 701 and other provisions of the Securities Act, we, our directors, director nominees and executive officers and certain of our shareholders (including each holder who holds 5% or more of our outstanding shares of common stock on a fully diluted basis immediately prior to the consummation of the offering) have agreed not to sell or otherwise transfer or encumber, or enter into any transaction that transfers, in whole or in part, directly or indirectly, any shares of our common stock or securities convertible or exchangeable into shares of our common stock (including OP units) owned by them at the completion of this offering and the formation transactions or thereafter acquired by them for a period of 180 days after the date of this prospectus, subject to specified exceptions, without the prior consent of the representative of the underwriters in this offering. See "Underwriting."

The representative of the underwriters in this offering has advised us that they have no present intent or arrangement to release any shares subject to a lock-up and will consider the release of any shares subject to a lock-up on a case-by-case basis. Upon a request to release any shares subject to a lock-up, the representative on behalf of the underwriters in this offering will consider the particular circumstances surrounding the request, including, but not limited to, the length of time before the lock-up expires, the number of shares requested to be released, the reasons for the request, the possible impact on the market for our common stock and whether the holder of our shares requesting the release is an officer, director or other affiliate of ours.

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**ERISA CONSIDERATIONS**

A fiduciary of a pension, profit sharing, retirement or other employee benefit plan, or plan, subject to Employee Retirement Income Security Act of 1974, as amended, ("ERISA"), should consider the fiduciary standards under ERISA in the context of the plan's particular circumstances before authorizing an investment of a portion of such plan's assets in the shares of our common stock. Accordingly, such fiduciary should consider, among other factors, (i) whether the investment satisfies the diversification requirements of Section 404(a)(1)(C) of ERISA, (ii) whether the investment is in accordance with the documents and instruments governing the plan as required by Section 404(a)(1)(D) of ERISA, and (iii) whether the investment is prudent under ERISA. In addition to the imposition of general fiduciary standards of investment prudence and diversification, ERISA and the corresponding provisions of the Code prohibit a wide range of transactions involving the assets of the plan and persons who have certain specified relationships to the plan ("parties in interest" within the meaning of ERISA, "disqualified persons" within the meaning of Code). Thus, a plan fiduciary considering an investment in the shares of our common stock should also consider whether the acquisition or the continued holding of the shares of our common stock might constitute or give rise to a direct or indirect prohibited transaction that is not subject to an exemption issued under ERISA, the Code or the guidance related thereto.

The Department of Labor (the "DOL"), has issued final regulations, or the DOL Regulations, as to what constitutes assets of an employee benefit plan under ERISA. Under the DOL Regulations, if a plan acquires an equity interest in an entity, which interest is neither a "publicly offered security" nor a security issued by an investment company registered under the 1940 Act as amended, the plan's assets would include, for purposes of the fiduciary responsibility provision of ERISA, both the equity interest and an undivided interest in each of the entity's underlying assets unless certain specified exceptions apply. The DOL Regulations define a publicly offered security as a security that is "widely held," "freely transferable," and either part of a class of securities registered under the Exchange Act, or sold pursuant to an effective registration statement under the Securities Act (provided the securities are registered under the Exchange Act within 120 days after the end of the fiscal year of the issuer during which the public offering occurred). The shares of our common stock are being sold in an offering registered under the Securities Act and will be registered under the Exchange Act.

The DOL Regulations provide that a security is "widely held" only if it is part of a class of securities that is owned by 100 or more investors independent of the issuer and of one another. A security will not fail to be "widely held" because the number of independent investors falls below 100 subsequent to the initial public offering as a result of events beyond the issuer's control. We expect our common stock to be "widely held" upon completion of this offering.

The DOL Regulations provide that whether a security is "freely transferable" is a factual question to be determined on the basis of all relevant facts and circumstances. The DOL Regulations further provide that when a security is part of an offering in which the minimum investment is $10,000 or less, as is the case with this offering, certain restrictions ordinarily will not, alone or in combination, affect the finding that such securities are "freely transferable." We believe the restrictions imposed under our charter on the transfer of our common stock are limited to the restrictions on transfer generally permitted under the DOL Regulations and are not likely to result in the failure of common stock to be "freely transferable." The DOL Regulations only establish a presumption in favor of the finding of free transferability, and, therefore, no assurance can be given that the DOL will not reach a contrary conclusion.

We believe our common stock will be "widely held" and "freely transferable," and therefore that our common stock should be publicly offered securities for purposes of the DOL Regulations and that our assets should not be deemed to be "plan assets" of any plan that invests in our common stock. However, no assurance can be given that this will be the case. OP units may not be sold to or held by any "benefit plan investor" as defined under Section 3(42) of ERISA.

Each holder of our common stock will be deemed to have represented and agreed that either it is not subject to ERISA or Section 4975 of the Code, or its purchase and holding of such common stock (or any interest therein) will not constitute or result in a non-exempt prohibited transaction under ERISA or Section 4975 of the Code.

Each fiduciary of an employee benefit plan subject to ERISA or plan subject to the Code should consult with its legal counsel or other advisor concerning the potential consequences to such a plan under ERISA and the Code of an investment in our common stock.

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**U.S. FEDERAL INCOME TAX CONSIDERATIONS**

*The following is a summary of certain U.S. federal income tax consequences relating to our qualification and taxation as a REIT and the acquisition, ownership, and disposition of our common stock. For purposes of this section under the heading* "*U.S. Federal Income Tax Considerations,*" *references to* "*the company,*" "*we,*" "*our*" *and* "*us*" *mean only JOSS Realty REIT, Inc., and not its subsidiaries or other lower-tier entities, except as otherwise indicated and references to a REIT are to an entity treated as a real estate investment trust for U.S. federal income tax purposes. You are urged to both review the following discussion and to consult your tax advisor to determine the effects of ownership and disposition of our shares on your individual tax situation, including any state, local or non-U.S. tax consequences.*

This summary is based upon the Code, the regulations promulgated by the U.S. Treasury Department (the "Treasury Regulations"), current administrative interpretations and practices of the IRS (including administrative interpretations and practices expressed in private letter rulings which are binding on the IRS only with respect to the particular taxpayers who requested and received those rulings) and judicial decisions, all as currently in effect, and all of which are subject to differing interpretations or to change, possibly with retroactive effect. No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the tax consequences described below. No advance ruling has been or will be sought from the IRS regarding any matter discussed in this summary. This summary is also based upon the assumption that the operation of the company, and of its subsidiaries and other lower-tier and affiliated entities, will in each case be in accordance with its applicable organizational documents or partnership agreements. This summary does not address any U.S. federal estate or gift tax consequences, the alternative minimum tax, or any state, local, or non-U.S. tax consequences. This summary is for general information only, and does not purport to discuss all aspects of U.S. federal income taxation that may be important to a particular stockholder in light of its investment or tax circumstances, or to stockholders subject to special tax rules, such as:

● U.S. expatriates;

● persons who mark-to-market our common stock;

● subchapter S corporations;

● U.S. stockholders (as defined below) whose functional currency is not the U.S. dollar;

● financial institutions;

● insurance companies;

● broker-dealers;

● RICs;

● REITs;

● holders who receive our common stock through the exercise of employee share options or otherwise as compensation;

● persons holding our common stock as part of a "straddle," "hedge," "conversion transaction," "synthetic security" or other integrated investment;

● persons subject to the alternative minimum tax provisions of the Code;

● persons holding their interest through a partnership or similar pass-through entity;

● persons holding a 10% or more (by vote or value) beneficial interest in us;

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and, except to the extent discussed below:

● tax-exempt organizations; and

● non-U.S. stockholders (as defined below).

This summary assumes that stockholders hold our common stock as capital assets for U.S. federal income tax purposes, which generally means as property held for investment.

**THE U.S. FEDERAL INCOME TAX TREATMENT OF US AND HOLDERS OF OUR COMMON STOCK DEPENDS IN SOME INSTANCES ON DETERMINATIONS OF FACT AND INTERPRETATIONS OF COMPLEX PROVISIONS OF U.S. FEDERAL INCOME TAX LAW FOR WHICH NO CLEAR PRECEDENT OR AUTHORITY MAY BE AVAILABLE. IN ADDITION, THE TAX CONSEQUENCES OF HOLDING OUR COMMON STOCK TO ANY PARTICULAR STOCKHOLDER WILL DEPEND ON THE STOCKHOLDER'S PARTICULAR TAX CIRCUMSTANCES. YOU ARE URGED TO CONSULT YOUR TAX ADVISOR REGARDING THE U.S. FEDERAL, STATE, LOCAL, AND FOREIGN INCOME AND OTHER TAX CONSEQUENCES TO YOU, IN LIGHT OF YOUR PARTICULAR INVESTMENT OR TAX CIRCUMSTANCES, OF ACQUIRING, HOLDING, AND DISPOSING OF OUR COMMON STOCK.**

**Taxation of Our Company**

We will elect to be taxed as a REIT under Sections 856 through 860 of the Code, commencing with our taxable year ending December 31, 2026. We believe that we have been organized and operated and intend to continue to be organized and to operate in a manner that will allow us to qualify for taxation as a REIT under the Code commencing with our taxable year ending December 31, 2026.

The law firm of Clifford Chance US LLP has acted as our counsel in connection with this offering. We will receive an opinion of Clifford Chance US LLP to the effect that, commencing with our taxable year ending December 31, 2026, we have been organized and operated in conformity with the requirements for qualification and taxation as a REIT, and that our proposed method of operation will enable us to continue to meet the requirements for qualification and taxation as a REIT. It must be emphasized that the opinion of Clifford Chance US LLP is based on various assumptions and limitations relating to our organization and operation, including that all factual representations and statements set forth in all relevant documents, records and instruments are true and correct, all actions described in this registration statement are completed in a timely fashion and that we will at all times operate in accordance with the method of operation described in our organizational documents and this registration statement. Additionally, the opinion of Clifford Chance US LLP will be conditioned upon factual representations and covenants made by our management and affiliated entities regarding our organization, assets, present and future conduct of our business operations and other items regarding our ability to meet the various requirements for qualification as a REIT, and will assume that such representations and covenants are accurate and complete and that we will take no action inconsistent with such representations and covenants. While we believe that we have been organized and operated and intend to continue to be organized and to operate so that we will continue to qualify as a REIT, given the highly complex nature of the rules governing REITs, the ongoing importance of factual determinations and the possibility of future changes in our circumstances or applicable law, no assurance can be given by Clifford Chance US LLP or us that we have in fact qualified or will so qualify for any particular year. Clifford Chance US LLP will have no obligation to advise us or the holders of our common stock of any subsequent change in the matters stated, represented or assumed or of any subsequent change in the applicable law. You should be aware that opinions of counsel are not binding on the IRS, and no assurance can be given that the IRS will not challenge the conclusions set forth in such opinions or that a court will not sustain such a challenge. In addition, Clifford Chance US LLP's opinion does not foreclose the possibility that we may have to utilize one or more REIT savings provisions discussed below, which could require the payment of an excise or penalty tax (which could be significant in amount) in order to maintain our REIT qualification.

Our qualification and taxation as a REIT depends on our ability to meet, on a continuing basis, through actual operating results, distribution levels, and diversity of stock ownership, various qualification requirements imposed upon REITs by the Code, the compliance with which will not be reviewed by Clifford Chance US LLP. In addition, our ability to qualify as a REIT may depend in part upon the operating results, organizational structure and entity classification for U.S. federal income tax purposes of certain entities in which we invest. Our ability to qualify as a REIT for a particular year also requires that we satisfy certain asset and income tests during such year, some of which depend upon the fair market values of assets directly or indirectly owned by us. Such values may not be susceptible to a precise determination. Accordingly, no assurance can be given that the actual results of our operations for any taxable year have satisfied or will satisfy such requirements for qualification and taxation as a REIT.

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**Taxation of REITs in General**

As indicated above, our qualification and taxation as a REIT for a particular year depend upon our ability to meet, on a continuing basis during such year, through actual results of operations, distribution levels, diversity of share ownership and various qualification requirements imposed upon REITs by the Code. The material qualification requirements are summarized below under "—Requirements for Qualification— General." While we intend to be organized and to operate so that we qualify as a REIT, no assurance can be given that the IRS will not challenge our qualification as a REIT, or that we will be able to operate in accordance with the REIT requirements in the future. See "—Failure to Qualify."

Provided that we qualify as a REIT, we will generally be entitled to a deduction for dividends that we pay and therefore will not be subject to U.S. federal corporate income tax on our net taxable income that we currently distribute to our stockholders. This treatment substantially eliminates the "double taxation" at the corporate and stockholder levels that generally results from investment in a C corporation. A "C corporation" is a corporation that generally is required to pay tax at the corporate level. Double taxation means taxation once at the corporate level when income is earned and once again at the stockholder level when the income is distributed. Income generated by a REIT generally is taxed only at the stockholder level upon a distribution of dividends by the REIT.

U.S. stockholders (as defined below) who are individuals, trusts and estates are generally taxed on corporate dividends at a maximum rate of 20% (the same as long-term capital gains), thereby substantially reducing, though not completely eliminating, the double taxation that has historically applied to corporate dividends. With limited exceptions, however, ordinary dividends received by non-corporate U.S. stockholders from us or from other entities that are taxed as REITs are not eligible for the reduced rate, and will continue to be taxed at rates applicable to ordinary income, which are as high as 37%; however, individuals, trusts, and estates that own stock in REITs are generally permitted to deduct up to 20% of dividends received on such stock, subject to certain limitations, generally resulting in an effective maximum U.S. federal income tax rate of 29.6% on such dividends. Net operating losses, foreign tax credits and other tax attributes of a REIT generally do not pass through to the stockholders of the REIT, subject to special rules for certain items such as capital gains recognized by REITs. See "—Taxation of Stockholders."

Even if we qualify to be taxed as a REIT, we will nonetheless be subject to U.S. federal income tax as follows:

● We will be taxed at regular corporate rates on any undistributed income, including undistributed net capital gains.

● Net income from prohibited transactions, which are, in general, sales or other dispositions of property held primarily for sale to customers in the ordinary course of business, other than foreclosure property, as described below, is subject to a 100% tax. See "—Requirements for Qualification—General—Prohibited Transactions," and "—Requirements for Qualification—General—Foreclosure Property," below.

● If we elect to treat property that we acquire in connection with a foreclosure of a mortgage loan or leasehold as "foreclosure property," we may thereby avoid (1) the 100% tax on gain from a resale of that property (if the sale would otherwise constitute a prohibited transaction), and (2) the inclusion of any income from such property not qualifying for purposes of the REIT gross income tests discussed below, but the income from the sale or operation of the property may be subject to corporate income tax at the highest applicable rate (currently 21%).

● If we fail to satisfy the 75% gross income test or the 95% gross income test, as discussed below, but nonetheless maintain our qualification as a REIT because other requirements are met, we will be subject to a 100% tax on an amount equal to (1) the greater of (A) the amount by which we fail the 75% gross income test or (B) the amount by which we fail the 95% gross income test, as the case may be, multiplied by (2) a fraction intended to reflect our profitability.

● If we fail to satisfy any of the REIT asset tests, as described below, other than a failure of the 5% or 10% REIT asset tests that does not exceed a statutory de minimis amount as described more fully below, but our failure is due to reasonable cause and not due to willful neglect and we nonetheless maintain our REIT qualification because of specified cure provisions, we will be required to pay a tax equal to the greater of $50,000 or the highest corporate tax rate (currently 21%) of the net income generated by the nonqualifying assets during the period in which we failed to satisfy the asset tests.

● If we fail to satisfy any provision of the Code that would result in our failure to qualify as a REIT (other than a gross income or asset test requirement) and that violation is due to reasonable cause and not willful neglect, we may retain our REIT qualification, but we will be required to pay a penalty of $50,000 for each such failure.

● If we fail to distribute during each calendar year at least the sum of (1) 85% of our REIT ordinary income for such year, (2) 95% of our REIT capital gain net income for such year and (3) any undistributed taxable income from prior periods ("required distribution"), we will be subject to a 4% non-deductible excise tax on the excess of the required distribution over the sum of (A) the amounts actually distributed (taking into account excess distributions from prior years), plus (B) retained amounts on which U.S. federal income tax is paid at the corporate level.

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● We may be required to pay monetary penalties to the IRS in certain circumstances, including if we fail to meet record-keeping requirements intended to monitor our compliance with rules relating to the composition of its stockholders, as described below in "—Requirements for Qualification—General."

● A 100% excise tax may be imposed on some items of income and expense that are directly or constructively paid between us, our tenants and/or any TRSs, if and to the extent that the IRS successfully adjusts the reported amounts of these items.

● If we acquire any asset from a corporation that is not a REIT, a RIC or a corporation taxable under subchapter S of the Code (i.e *.*, a corporation taxable under subchapter C of the Code) in a transaction in which the adjusted tax basis of the asset in our hands is less than the fair market value of the asset, determined as of the date on which we acquired the asset, or we hold any asset currently and held it at a time when we were not treated as a REIT, and in each case we subsequently recognize gain on the disposition of the asset during the 5-year period (or with respect to certain prior years the 10-year period) beginning on the date on which we acquired the asset, then we will be required to pay tax at the highest regular corporate tax rate on this gain to the extent of the excess of (1) the fair market value of the asset over (2) our adjusted tax basis in the asset, in each case determined as of the date on which we acquired the asset. The results described in the preceding sentence could occur if we failed to qualify as a REIT (and, thus, were treated as a subchapter C corporation) or were otherwise treated as a C corporation for a prior year and then re-qualified as a REIT in a later year, in which case the appreciation would be measured as of the beginning of the year in which we first re-qualified as a REIT. Any gain from the sale of property acquired by us in an exchange under Section 1031 (a like kind exchange) or 1033 (an involuntary conversion) of the Code is excluded from the application of this built-in gains tax.

● We may elect to retain and pay income tax on our net long-term capital gain. In that case, each stockholder would include its proportionate share of our undistributed long-term capital gain (to the extent we make a timely designation of such gain to the stockholder) in its income, would be deemed to have paid the tax that we paid on such gain, and would be allowed a credit for its proportionate share of the tax deemed to have been paid, and an adjustment would be made to increase the stockholder's basis in shares of our common stock. Stockholders that are U.S. corporations will also appropriately adjust their earnings and profits for the retained capital gain in accordance with Treasury Regulations to be promulgated.

● We may have subsidiaries or own interests in other lower-tier entities that are subchapter C corporations, including any taxable REIT subsidiaries, or TRSs, the earnings of which could be subject to U.S. federal corporate income tax

In addition, we and our subsidiaries may be subject to a variety of taxes other than U.S. federal income tax, including state, local, and foreign income, transfer, franchise, property, excise and other taxes. We could also be subject to tax in situations and on transactions not presently contemplated.

**Requirements for Qualification—General**

The Code defines a REIT as a corporation, trust or association:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) that is managed by one or more trustees or directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the beneficial ownership of which is evidenced by transferable shares, or by transferable certificates of beneficial interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) that would be taxable as a domestic corporation but for the special Code provisions applicable to REITs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) that is neither a financial institution nor an insurance company subject to specific provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the beneficial ownership of which is held by 100 or more persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) in which, during the last half of each taxable year, not more than 50% in value of the outstanding shares are owned, directly or indirectly, by five or fewer "individuals" (as defined in the Code to include specified entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) that meets other tests described below, including with respect to the nature of its income and assets and the amount of its distributions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) that makes an election to be a REIT for the current taxable year or has made such an election for a previous taxable year that has not been terminated or revoked.

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The Code provides that conditions (1) through (4) must be met during the entire taxable year, and that condition (5) must be met during at least 335 days of a taxable year of 12 months, or during a proportionate part of a shorter taxable year. Conditions (5) and (6) do not need to be satisfied for the first taxable year for which an election to become a REIT has been made. Our charter provides restrictions regarding the ownership and transfer of our shares, which are intended, among other purposes, to assist us in satisfying the share ownership requirements described in conditions (5) and (6) above. For purposes of condition (6), an "individual" generally includes a supplemental unemployment compensation benefit plan, a private foundation or a portion of a trust permanently set aside or used exclusively for charitable purposes but does not include a qualified pension plan or profit sharing trust.

To monitor compliance with the share ownership requirements, we are required to maintain records regarding the actual ownership of our shares. To do so, we must demand written statements each year from the record holders of significant percentages of our shares in which the record holders are to disclose the actual owners of the shares (i.e*.*, the persons required to include in gross income the dividends paid by us). A list of those persons failing or refusing to comply with this demand must be maintained as part of our records. Failure by us to comply with these record- keeping requirements could subject us to monetary penalties. If we satisfy these requirements and after exercising reasonable diligence would not have known that condition (6) is not satisfied, we will be deemed to have satisfied such condition. A stockholder that fails or refuses to comply with the demand is required by Treasury Regulations to submit a statement with its tax return disclosing the actual ownership of the shares and other information.

In addition, a corporation generally may not elect to become a REIT unless its taxable year is the calendar year. We satisfy this requirement. Furthermore, a corporation does not qualify as a REIT for a given taxable year if, as of the final day of the taxable year, the corporation has any undistributed earnings and profits that accumulated during a period that the corporation was not treated as a REIT for U.S. federal income tax purposes or that the corporation inherited in the tax-deferred acquisition of another corporation and that were attributable to a period when such other corporation did not qualify as a REIT. We do not believe that we have any significant earnings and profits attributable to any C corporation.

**Effect of Subsidiary Entities**

*Ownership of Partnership Interests.* In the case of a REIT that is a partner in a partnership, Treasury Regulations provide that the REIT is deemed to own its proportionate share of the partnership's assets and to earn its proportionate share of the partnership's gross income based on its pro rata share of capital interests in the partnership for purposes of the asset and gross income tests applicable to REITs, as described below. However, solely for purposes of the 10% value test, described below, the determination of a REIT's interest in partnership assets will be based on the REIT's proportionate interest in any securities issued by the partnership, excluding, for these purposes, certain excluded securities as described in the Code. In addition, the assets and gross income of the partnership generally are deemed to retain the same character in the hands of the REIT. Thus, our proportionate share of the assets and items of income of partnerships in which we own an equity interest (including our interest in our operating partnership and its equity interests in any lower-tier partnerships), is treated as our assets and items of income for purposes of applying the REIT requirements described below. Consequently, to the extent that we directly or indirectly hold a preferred or other equity interest in a partnership, the partnership's assets and operations may affect our ability to qualify as a REIT, even though we may have no control, or only limited influence, over the partnership. A summary of certain rules governing the U.S. federal income taxation of partnerships and their partners is provided below in "—Tax Aspects of Investments in Partnerships."

*Disregarded Subsidiaries*. If a REIT owns a corporate subsidiary that is a "qualified REIT subsidiary," that subsidiary is disregarded as a separate entity for U.S. federal income tax purposes, and all assets, liabilities and items of income, deduction and credit of the subsidiary are treated as assets, liabilities and items of income, deduction and credit of the REIT, including for purposes of the gross income and asset tests applicable to REITs as summarized below. A qualified REIT subsidiary is any corporation, other than a TRS, as described below under "—Taxable REIT Subsidiaries," that is wholly owned by a REIT, or by other disregarded subsidiaries, or by a combination of the two. Single member limited liability companies that are wholly owned by a REIT are also generally disregarded as separate entities for U.S. federal income tax purposes, including for purposes of the REIT gross income and asset tests. Disregarded subsidiaries, along with partnerships in which we hold an equity interest, are sometimes referred to herein as "pass-through subsidiaries."

In the event that a disregarded subsidiary ceases to be wholly owned by us—for example, if any equity interest in the subsidiary is acquired by a person other than us or another disregarded subsidiary of ours—the subsidiary's separate existence would no longer be disregarded for U.S. federal income tax purposes. Instead, it would have multiple owners and would be treated as either a partnership or a taxable corporation. Such an event could, depending on the circumstances, adversely affect our ability to satisfy the various asset and gross income tests applicable to REITs, including the requirement that REITs generally may not own, directly or indirectly, more than 10% of the value or voting power of the outstanding securities of another corporation. See "—Asset Tests" and "—Gross Income Tests."

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*Taxable REIT Subsidiaries*. A REIT generally may jointly elect with a subsidiary corporation, whether or not wholly owned, to treat the subsidiary corporation as a TRS. The separate existence of a TRS or other taxable corporation, unlike a disregarded subsidiary as discussed above, is not ignored for U.S. federal income tax purposes. Accordingly, such an entity would generally be subject to corporate U.S. federal, state and local income or franchise taxes on its earnings, which may reduce the cash flow generated by us and our subsidiaries in the aggregate, and our ability to make distributions to our stockholders.

We may jointly elect to treat a subsidiary corporation as a TRS. This would allow the TRS to invest in assets and engage in activities that could not be held or conducted directly by us without jeopardizing our qualification as a REIT. A REIT is not treated as holding the assets of a TRS or other taxable subsidiary corporation or as receiving any income that the subsidiary earns. Rather, the stock issued by the subsidiary is an asset in the hands of the REIT, and the REIT recognizes as income the dividends, if any, that it receives from the subsidiary. This treatment can affect the gross income and asset test calculations that apply to the REIT, as described below. Because a REIT does not include the assets and income of such subsidiary corporations in determining the REIT's compliance with the REIT requirements, such entities may be used by the parent REIT to undertake indirectly activities that the REIT rules might otherwise preclude it from doing directly or through pass-through subsidiaries or render commercially unfeasible (for example, activities that give rise to certain categories of income such as management fees or fees for certain non-customary services to tenants of the REIT). If dividends are paid to us by any TRS that we may own, then a portion of the dividends that we distribute to stockholders who are taxed at individual rates may be eligible for taxation at the preferential tax rates applicable to qualified dividend income rather than at ordinary income rates. See "Taxation of Stockholders—Taxation of Taxable U.S. Stockholders" and "—Annual Distribution Requirements."

Certain restrictions imposed on TRSs are intended to ensure that such entities will be subject to appropriate levels of U.S. federal income taxation. If amounts are paid to a REIT or deducted by a TRS due to transactions between a REIT, its tenants and/or a TRS, that exceed the amount that would be paid to or deducted by a party in an arm's-length transaction, the REIT generally will be subject to an excise tax equal to 100% of such excess.

Rents received by us that include amounts for services furnished by a TRS to any of our tenants will not be subject to the excise tax if such amounts qualify for the safe harbor provisions contained in the Code. Safe harbor provisions are provided where (1) amounts are excluded from the definition of impermissible tenant service income as a result of satisfying a 1% de minimis exception; (2) a TRS renders a significant amount of similar services to unrelated parties and the charges for such services are substantially comparable; (3) rents paid to us by tenants that are not receiving services from the TRS are substantially comparable to the rents by our tenants leasing comparable space that are receiving such services from the TRS and the charge for the services is separately stated; or (4) the TRS's gross income from the service is not less than 150% of the TRS's direct cost of furnishing the service.

***Gross Income Tests***

In order to maintain our qualification as a REIT, we annually must satisfy two gross income tests. First, at least 75% of our gross income for each taxable year, excluding gross income from sales of inventory or dealer property in "prohibited transactions" and certain hedging and foreign currency transactions, must be derived from investments relating to real property or mortgages on real property, including "rents from real property," dividends received from and gain from the disposition of shares of other REITs, interest income derived from mortgage loans secured by real property (including certain types of mortgage-backed securities), and gains from the sale of real estate assets (other than income or gains with regard to debt instruments issued by public REITs that are not otherwise secured by real property), as well as income from certain kinds of temporary investments. *Second*, at least 95% of our gross income in each taxable year, excluding gross income from prohibited transactions and certain hedging and foreign currency transactions, must be derived from some combination of income that qualifies under the 75% income test described above, as well as other dividends, interest, and gain from the sale or disposition of stock or securities, which need not have any relation to real property.

For purposes of the 75% and 95% gross income tests, a REIT is deemed to have earned a proportionate share of the income earned by any partnership, including any limited liability company treated as a partnership for U.S. federal income tax purposes, in which it owns an interest, which share is determined by reference to its capital interest in such entity, and is deemed to have earned the income earned by any qualified REIT subsidiary.

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Rents received by us will qualify as "rents from real property" in satisfying the 75% gross income test described above only if several conditions are met, including the following. The rent must not be based in whole or in part on the income or profits of any person. However, an amount will not be excluded from rents from real property solely by being based on a fixed percentage or percentages of receipts or sales, or being based on the net income or profits of a tenant which derives substantially all of its income with respect to such property from the subleasing of substantially all of such property, to the extent that the rents paid by the sublessees would qualify as rents from real property if earned directly by us. If rent is partly attributable to personal property leased in connection with a lease of real property, the portion of the total rent that is attributable to the personal property will not qualify as rents from real property unless it constitutes 15% or less of the total rent received under the lease for the taxable year. Moreover, for rents received to qualify as rents from real property, we generally must not operate or manage the property or furnish or render certain services to the tenants of such property, other than through an "independent contractor" who is adequately compensated and from which we derive no income, or through a TRS, as discussed below. We are permitted, however, to perform services that are "usually or customarily rendered" in connection with the rental of space for occupancy only and are not otherwise considered rendered to the occupant of the property. In addition, we may directly or indirectly provide non-customary services to tenants of our properties if the gross income from such services does not exceed 1% of the total gross income from the property for the relevant taxable year. In such a case, only the amounts for non-customary services are not treated as rents from real property and the provision of the services does not disqualify the rents from treatment as rents from real property. If, however, the gross income from such non-customary services exceeds the 1% threshold, none of the gross income from the property for the relevant taxable year is treated as rents from real property. For purposes of this test, the gross income received from such non-customary services is deemed to be at least 150% of the direct cost of providing the services. Moreover, we are permitted to provide services to tenants through a TRS without disqualifying the rental income received from tenants as rents from real property. Also, rental income will qualify as rents from real property only to the extent that we do not directly or indirectly (through application of certain constructive ownership rules) own, (1) in the case of any tenant which is a corporation, stock possessing 10% or more of the total combined voting power of all classes of stock entitled to vote, or 10% or more of the total value of shares of all classes of stock of such tenant, or (2) in the case of any tenant which is not a corporation, an interest of 10% or more in the assets or net profits of such tenant. However, rental payments from a TRS will qualify as rents from real property even if we own more than 10% of the total value or combined voting power of the TRS if at least 90% of the property is leased to unrelated tenants and the rent paid by the TRS is substantially comparable to the rent paid by the unrelated tenants for comparable space.

Unless we determine that the resulting nonqualifying income under any of the following situations, taken together with all other nonqualifying income earned by us in the taxable year, will not jeopardize our qualification as a REIT, we do not intend to:

● charge rent for any property that is based in whole or in part on the income or profits of any person, except by reason of being based on a fixed percentage or percentages of receipts or sales, as described above;

● rent any property to a related party tenant, including a TRS, unless the rent from the lease to the TRS would qualify for the special exception from the related party tenant rule applicable to certain leases with a TRS;

● derive rental income attributable to personal property other than personal property leased in connection with the lease of real property, the amount of which is less than 15% of the total rent received under the lease; or

● directly perform services considered to be noncustomary or rendered to the occupant of the property.

We may directly or indirectly receive distributions from any TRSs or other corporations that are not REITs or qualified REIT subsidiaries. These distributions will be classified as dividend income to the extent of the earnings and profits of the distributing corporation. Such distributions will generally constitute qualifying income for purposes of the 95% gross income test, but not for purposes of the 75% gross income test. Any dividends received by us from a REIT, however, will be qualifying income for purposes of both the 95% and 75% gross income tests.

To the extent we acquire any real-estate related debt investment, interest income on such debt will constitute qualifying mortgage interest for purposes of the 75% gross income test (as described above) to the extent that the obligation is secured by a mortgage on real property. If we receive interest income with respect to a mortgage loan that is secured by both real property and other property, and the highest principal amount of the loan outstanding during a taxable year exceeds the fair market value of the real property on the date that we acquired or originated the mortgage loan, then, subject to the exception described below, the interest income will be apportioned between the real property and the other property, and our income from the loan will qualify for purposes of the 75% gross income test only to the extent that the interest is allocable to the real property. If a loan is secured by both real property and personal property and the fair market value of the personal property does not exceed 15% of the fair market value of all real and personal property securing the loan, interest on the loan is treated as interest paid on a loan secured solely by real property for purposes of these rules. Even if a loan is not secured by real property or is undersecured, the income that it generates may nonetheless qualify for purposes of the 95% gross income test.

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***Hedging Transactions***

We may enter into hedging transactions with respect to one or more of our assets or liabilities. Hedging transactions could take a variety of forms, including interest rate swap agreements, interest rate cap agreements, options, futures contracts, forward rate agreements or similar financial instruments. Except to the extent provided by Treasury Regulations, any income from a hedging transaction we enter into (1) in the normal course of our business primarily to manage risk of interest rate or price changes or currency fluctuations with respect to borrowings made or to be made, or ordinary obligations incurred or to be incurred, to acquire or carry real estate assets, which we clearly identify as specified in Treasury Regulations before the close of the day on which it was acquired, originated, or entered into, including gain from the sale or disposition of such a transaction, (2) primarily to manage risk of currency fluctuations with respect to any item of income or gain that would be qualifying income under the 75% or 95% income tests which is clearly identified as such before the close of the day on which it was acquired, originated, or entered into, or (3) primarily to manage risk with respect to a hedging transaction described in clause (1) or (2) after the extinguishment of such borrowings or disposal of the asset producing such income that is hedged by the hedging transaction, provided, in each case, that the hedging transaction is clearly identified as such before the close of the day on which it was acquired, originated or entered into, will not constitute gross income for purposes of the 75% or 95% gross income test. To the extent that we enter into other types of hedging transactions, the income from those transactions is likely to be treated as non-qualifying income for purposes of both of the 75% and 95% gross income tests. We intend to structure any hedging transactions in a manner that does not jeopardize our qualification as a REIT.

***Failure to Satisfy the Gross Income Tests***

We intend to monitor our sources of income, including any non-qualifying income received by us, so as to ensure compliance with the gross income tests. If we fail to satisfy one or both of the 75% or 95% gross income tests for any taxable year, we may still qualify as a REIT for the year if we are entitled to relief under applicable provisions of the Code. These relief provisions will generally be available if the failure of our company to meet these tests was due to reasonable cause and not due to willful neglect and, following the identification of such failure, we set forth a description of each item of our gross income that satisfies the applicable gross income tests in a schedule for the taxable year filed in accordance with the Treasury Regulations. It is not possible to state whether we would be entitled to the benefit of these relief provisions in all circumstances. If we fail to satisfy one or both of the gross income tests and these relief provisions are inapplicable to a particular set of circumstances, we will not qualify as a REIT. As discussed above under "—Taxation of Our Company" and "—Taxation of REITs in General," even where these relief provisions apply, a tax would be imposed upon the profit attributable to the amount by which we fail to satisfy the particular gross income test, which could be significant in amount.

***Asset Tests***

At the close of each calendar quarter we must also satisfy five tests relating to the nature of our assets. First, at least 75% of the value of our total assets must be represented by some combination of "real estate assets," cash, cash items, U.S. government securities, and, under some circumstances, stock or debt instruments purchased with new capital. For this purpose, real estate assets include interests in real property, such as land, buildings, leasehold interests in real property, stock of other REITs, interests in mortgages secured by real property or by interests in real property, certain kinds of mortgage-backed securities and mortgage loans, and debt instruments issued by publicly offered REITs, interests in obligations secured by both real property and personal property if the fair market value of the personal property does not exceed 15% of the total fair market value securing such mortgage, and personal property to the extent income from such personal property is treated as "rents from real property" because the personal property is rented in connection with a rental of real property and constitutes less than 15% of the aggregate property rented. Assets that do not qualify for purposes of the 75% test are subject to the additional asset tests described below.

Second, the value of any one issuer's securities owned by us may not exceed 5% of the value of our total assets. Third, we may not own more than 10% of any one issuer's outstanding securities, as measured by either voting power or value. Fourth, the aggregate value of all securities of any TRSs held by us may not exceed 25% of the value of our total assets. Fifth, the aggregate value of debt instruments issued by publicly offered REITs held by us that are not otherwise secured by real property may not exceed 25% of the value of our total assets.

The 5% and 10% asset tests described above do not apply to securities of TRSs, qualified REIT subsidiaries or securities that are "real estate assets" for purposes of the 75% gross asset test described above. The 10% value test does not apply to certain "straight debt" and other excluded securities, as described in the Code including, but not limited to, any loan to an individual or estate, any obligation to pay rents from real property and any security issued by a REIT. In addition, for purposes of applying the 10% value test, (1) a REIT's interest as a partner in a partnership is not considered a security issued by the partnership; (2) any debt instrument issued by a partnership (other than straight debt or another excluded security) will not be considered a security issued by the partnership if at least 75% of the partnership's gross income (excluding gross income from prohibited transactions) is derived from sources that would qualify for the 75% REIT gross income test; and (3) any debt instrument issued by a partnership (other than straight debt or another excluded security) will not be considered a security issued by the partnership to the extent of the REIT's interest as a partner in the partnership. For purposes of the 10% value test, "straight debt" means a written unconditional promise to pay on demand or on a specified date a sum certain in money if (i) debt is not convertible, directly or indirectly, into stock, (ii) the interest rate and interest payment dates are not contingent on profits, the borrower's discretion, or similar factors other than certain contingencies relating to the timing and amount of principal and interest payments, as described in the Code and (iii) in the case of an issuer that is a corporation or a partnership, securities that otherwise would be considered straight debt will not be so considered if we, and any of our "controlled taxable REIT subsidiaries," as defined in the Code, hold any securities of the corporate or partnership issuer which (a) are not straight debt or other excluded securities (prior to the application of this rule), and (b) have an aggregate value greater than 1% of the issuer's outstanding securities (including, for the purposes of a partnership issuer, its interest as a partner in the partners).

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To the extent we make real estate-related debt investments, a real estate mortgage loan that we own generally will be treated as a real estate asset for purposes of the 75% gross asset test if, on the date that we acquire or originate the mortgage loan, the value of the real property securing the loan is equal to or greater than the principal amount of the loan or the value of the real property and personal property securing the loan is equal to or greater than the principal amount of the loan and the value of the personal property securing the loan does not exceed 15% of the total value of all of the property securing the loan. Furthermore, unlike the rules described above that are applicable to the gross income tests, we would not be required to treat any portion of a mortgage loan as non-qualifying for the 75% asset test if at the time that we acquire the loan our acquisition price for the loan (that is, the fair market value of the loan at the time that we acquired it) does not exceed the fair market value of the real property securing the loan or the value of the real property and personal property securing the loan is equal to or greater than the acquisition price of the loan and the value of the personal property securing the loan does not exceed 15% of the total value of all of the property securing the loan. Furthermore, although modifications of a loan held by us generally may be treated as an acquisition of a new loan for U.S. federal income tax purposes, a modification would not be treated as an acquisition of a new loan for these purposes provided that the modification is occasioned by a default or a significant risk of default.

The asset tests must be satisfied at the close of each calendar quarter of our taxable year in which we acquire securities in the applicable issuer, and also at the close of each calendar quarter in which we increase our ownership of securities of such issuer. If we fail to satisfy an asset test because we acquire securities or other property during a quarter, we may cure this failure by disposing of sufficient nonqualifying assets within 30 days after the close of that quarter. If we fail to cure any noncompliance with the asset tests within the 30 day cure period, we would cease to qualify as a REIT unless we are eligible for certain relief provisions discussed below. We believe that our holdings assets will comply with the foregoing REIT asset requirements, and we intend to monitor compliance with such tests on an ongoing basis. There can be no assurance, however, that we will be successful in this effort.

Moreover, the values of some of our assets, including the securities of any TRSs or other non-publicly traded investments, may not be susceptible to a precise determination and are subject to change in the future. Furthermore, the proper classification of an instrument as debt or equity for U.S. federal income tax purposes may be uncertain in some circumstances, which could affect the application of the REIT asset tests. Accordingly, there can be no assurance that the IRS will not successfully contend that our assets do not meet the requirements of the REIT asset tests.

Certain relief provisions may be available to us if we discover a failure to satisfy the asset tests described above after the 30-day cure period. Under these provisions, we will be deemed to have met the 5% and 10% asset tests if the value of our nonqualifying assets (i) does not exceed the lesser of (a) 1% of the total value of our assets at the end of the applicable quarter or (b) $10 million and (ii) we dispose of the nonqualifying assets or otherwise satisfy such tests within (a) six months after the last day of the quarter in which the failure to satisfy the asset tests is discovered or (b) the period of time prescribed by Treasury Regulations to be issued. For violations of any of the asset tests due to reasonable cause and not due to willful neglect and that are, in the case of the 5% and 10% asset tests, in excess of the de minimis exception described above, we may avoid disqualification as a REIT after the 30 day cure period by taking steps including (i) the disposition of sufficient nonqualifying assets, or the taking of other actions, which allow us to meet the asset tests within (a) six months after the last day of the quarter in which the failure to satisfy the asset tests is discovered or (b) the period of time prescribed by Treasury Regulations to be issued, (ii) paying a tax equal to the greater of (a) $50,000 or (b) the highest corporate tax rate (currently 21%) multiplied by the net income generated by the nonqualifying assets, and (iii) disclosing certain information to the IRS.

If we fail to cure any noncompliance with the asset tests in a timely manner, and the relief provisions described above are not available, we would cease to qualify as a REIT.

***Annual Distribution Requirements***

In order to qualify as a REIT, we are required to distribute dividends, other than capital gain dividends, to our stockholders in an amount at least equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sum of:

● 90% of our "REIT taxable income" for the taxable year (computed without regard to our deduction for dividends paid and by excluding our net capital gains), and

● 90% of the net income, if any (after tax), from foreclosure property, as described below, and recognized built-in gain, as discussed above, minus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sum of specified items of non-cash income that exceeds a percentage of our net taxable income.

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These distributions must be paid in the taxable year to which they relate, or in the following taxable year if such distributions are declared in October, November or December of the taxable year, are payable to stockholders of record on a specified date in any such month, and are actually paid before the end of January of the following year. Such distributions are treated as both paid by us and received by each stockholder on December 31 of the year in which they are declared. In addition, at our election, a distribution for a taxable year may be declared before we timely file our tax return for the year, provided we pay such distribution with or before our first regular dividend payment after such declaration, provided that such payment is made during the 12-month period following the close of such taxable year. These distributions are taxable to our stockholders in the year in which paid, even though the distributions relate to our prior taxable year for purposes of the 90% distribution requirement. In order to be taken into account for purposes of our distribution requirement, the amount distributed must not be preferential—i.e., every stockholder of the class of stock to which a distribution is made must be treated the same as every other stockholder of that class. However, these preferential dividend limitations do not apply to us during any period that we are treated as a publicly offered REIT, which generally includes a REIT required to file annual and periodic reports with the SEC. Since we will be a publicly offered REIT following this offering, we do not expect to be subject to these preferential dividend rules.

To the extent that we distribute at least 90%, but less than 100%, of our net taxable income, as adjusted, we will be subject to tax at ordinary corporate tax rates on the retained portion. In addition, we may elect to retain, rather than distribute, our net long-term capital gains and pay tax on such gains. In this case, we would elect to have our stockholders include their proportionate share of such undistributed long-term capital gains in their income and receive a corresponding credit for their proportionate share of the tax paid by us. Our stockholders would then increase their adjusted basis in our shares by the difference between the designated amounts included in their long-term capital gains and the tax deemed paid with respect to their proportionate shares.

If we fail to distribute during each calendar year at least the sum of (1) 85% of our REIT ordinary income for such year, (2) 95% of our REIT capital gain net income for such year and (3) any undistributed taxable income from prior periods, we will be subject to a 4% non-deductible excise tax on the excess of such amount over the sum of (A) the amounts actually distributed (taking into account excess distributions from prior periods) and (B) the amounts of income retained on which we have paid corporate income tax. We intend to make timely distributions so that we are not subject to the 4% excise tax. In addition, certain amounts can generate mismatches between net taxable income and available cash, such as rental real estate financed through debt, which requires some or all of available cash flow to service borrowings. In certain circumstances, our deductions of interest on such borrowings could be limited for tax purposes absent our election out of such limitation.

It is possible that we, from time to time, may not have sufficient cash to meet the REIT distribution requirements due to timing differences between (1) the actual receipt of cash, including the receipt of distributions from any partnership subsidiaries and (2) the inclusion of items in income by us for U.S. federal income tax purposes. Additional potential sources of non-cash taxable income include loans held by us as assets that are issued at a discount and require the accrual of taxable interest income in advance of our receipt in cash, loans on which the borrower is permitted to defer cash payments of interest and distressed loans on which we may be required to accrue taxable interest income even though the borrower is unable to make current interest payments in cash. In addition, we are required to recognize certain categories of income for U.S. federal income tax purposes no later than such items are reported on our financial statements, which could result in the acceleration of income in some cases. In the event that such timing differences occur, in order to meet the distribution requirements, it might be necessary to arrange for short-term, or possibly long-term, borrowings, or to pay dividends in the form of taxable in-kind distributions of property, including taxable share dividends. In the case of a taxable share dividend, stockholders would be required to include the dividend as income and would be required to satisfy the tax liability associated with the distribution with cash from other sources including sales of our shares. Both a taxable share distribution and sale of shares resulting from such distribution could adversely affect the price of our shares.

We may be able to rectify a failure to meet the distribution requirements for a year by paying "deficiency dividends" to stockholders in a later year, which may be included in our deduction for dividends paid for the earlier year. In this case, we may be able to avoid losing our REIT qualification or being taxed on amounts distributed as deficiency dividends, subject to the 4% excise tax described above. However, we will be required to pay interest and a penalty based on the amount of any deduction taken for deficiency dividends.

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***Tax on Built-In Gains***

If we acquire appreciated assets from a subchapter C corporation in a transaction in which the adjusted tax basis of the assets in our hands is less than the fair market value of the assets, determined at the time we acquired such assets, and if we subsequently dispose of any such assets during the 5-year period following the acquisition of the assets from the C corporation, we will be subject to tax at the highest corporate tax rates on any gain from such assets to the extent of the excess of the fair market value of the assets on the date that they were contributed to us over the basis of such assets on such date, which we refer to as built-in gains. In addition, if we were treated as a C corporation that is not a RIC or a REIT for any period of time, any asset that we held during such period of time generally would be subject to this tax on built-in-gains. Similarly, to the extent that any C corporation holds an interest in an entity treated as a partnership for U.S. federal income tax purposes (either directly or through one or more other entities treated as partnerships for U.S. federal income tax purposes) and we acquire appreciated assets from such partnership in a transaction in which the adjusted tax basis of the assets in our hands is less than the fair market value determined at the time we acquired such assets, determined by reference to the adjusted tax basis of the assets in the hands of the partnership, the underlying C corporation's proportionate share of such assets will be treated as contributed by a C corporation and therefore will be subject to the tax on built-in gains. However, the built-in gains tax will not apply if the C corporation elects to be subject to an immediate tax upon the transfer. Any gain from the sale of property acquired by us in an exchange under Section 1031 (a like kind exchange) or 1033 (an involuntary conversion) of the Code is excluded from the application of this built-in gains tax.

***Recordkeeping Requirements***

We are required to maintain records and request on an annual basis information from specified stockholders. These requirements are designed to assist us in determining the actual ownership of our outstanding shares and maintaining our qualification as a REIT.

***Prohibited Transactions***

Net income that we derive from a prohibited transaction is subject to a 100% tax. The term "prohibited transaction" generally includes a sale or other disposition of property (other than foreclosure property as described below) that is held as inventory or primarily for sale to customers in the ordinary course of a trade or business by a REIT, by a lower-tier partnership in which the REIT holds an equity interest or by a borrower that has issued a shared appreciation mortgage or similar debt instrument to the REIT. We intend to conduct our operations so that the real properties owned by us or our pass-through subsidiaries will not be treated as held as inventory or primarily for sale to customers, and that a sale of any properties by us or our pass-through subsidiaries will not be treated as in the ordinary course of business. However, whether property is held as inventory or "primarily for sale to customers in the ordinary course of a trade or business" depends on the particular facts and circumstances. No assurance can be given that any particular property in which we hold a direct or indirect interest will not be treated as property held as inventory or primarily for sale to customers, or that certain safe-harbor provisions of the Code discussed below that prevent such treatment will apply. The 100% tax will not apply to gains from the sale of property that is held through a TRS or other taxable corporation, although such income will be subject to tax in the hands of the corporation at regular corporate income tax rates.

The Code provides a safe harbor that, if met, allows us to avoid being treated as engaged in a prohibited transaction. In order to meet the safe harbor, among other things, (i) we must have held the property for at least two years (and, in the case of property which consists of land or improvements not acquired through foreclosure, we must have held the property for two years for the production of rental income) and (ii) during the taxable year the property is disposed of, we must not have made more than seven property sales or, alternatively, the aggregate adjusted basis or fair market value of all of the properties sold by us during the taxable year must not exceed 10% of the aggregate adjusted basis or 10% of the fair market value, respectively (or 20% of the aggregate adjusted basis or 20% of the fair market value, in each case where the three-year average adjusted percentage for the taxable year does not exceed 10%), of all of our assets as of the beginning of the taxable year.

***Foreclosure Property***

Foreclosure property is real property (including interests in real property) and any personal property incident to such real property (1) that is acquired by a REIT as a result of the REIT having bid on such property at foreclosure, or having otherwise reduced the property to ownership or possession by agreement or process of law, after there was a default (or default was imminent) on a lease of such property or a mortgage loan held by the REIT and secured by such property, (2) for which the related loan or lease was made, entered into or acquired by the REIT at a time when default was not imminent or anticipated, and (3) for which such REIT makes a proper election to treat the property as foreclosure property. REITs generally are subject to tax at the maximum corporate rate (currently 21%) on any net income from foreclosure property, including any gain from the disposition of the foreclosure property, other than income that would otherwise be qualifying income for purposes of the 75% gross income test. Any gain from the sale of property for which a foreclosure property election has been made will not be subject to the 100% tax on gains from prohibited transactions described above, even if the property would otherwise constitute inventory or dealer property in the hands of the selling REIT.

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**Tax Aspects of Investments in Partnerships**

***General***

We will hold investments through entities that are classified as partnerships for U.S. federal income tax purposes, including our interest in our operating partnership and equity interests in lower-tier partnerships. In general, partnerships are "pass-through" entities that are not subject to U.S. federal income tax. Rather, partners are allocated their proportionate shares of the items of income, gain, loss, deduction and credit of a partnership, and are subject to tax on these items without regard to whether the partners receive a distribution from the partnership. We include in our income our proportionate share of these partnership items for purposes of the various REIT income tests, based on our capital interest in such partnership, and in the computation of our REIT taxable income. Moreover, for purposes of the REIT asset tests, we include our proportionate share of assets held by subsidiary partnerships, based on our capital interest in such partnerships (other than for purposes of the 10% value test, for which the determination of our interest in partnership assets will be based on our proportionate interest in any securities issued by the partnership excluding, for these purposes, certain excluded securities as described in the Code). Consequently, to the extent that we hold an equity interest in a partnership, the partnership's assets and operations may affect our ability to qualify as a REIT, even though we may have no control, or only limited influence, over the partnership.

***Entity Classification***

The investment by us in partnerships involves special tax considerations, including the possibility of a challenge by the IRS of the status of any of our subsidiary partnerships as a partnership, as opposed to an association taxable as a corporation, for U.S. federal income tax purposes. If any of these entities were treated as an association for U.S. federal income tax purposes, it would be taxable as a corporation and, therefore, could be subject to an entity-level tax on its income.

Pursuant to Section 7704 of the Internal Revenue Code, a partnership that does not elect to be treated as a corporation nevertheless will be treated as a corporation for U.S. federal income tax purposes if it is a "publicly traded partnership" and it does not receive at least 90% of its gross income from certain specified sources of "qualifying income" within the meaning of that section. A "publicly traded partnership" is any partnership (i) the interests in which are traded on an established securities market or (ii) the interests in which are readily tradable on a "secondary market or the substantial equivalent thereof." Although our OP units, as defined below, are not traded on an established securities market, there is a significant risk that the right of a holder of such OP units to redeem the OP units for cash or, at our option, our common stock, could cause the units to be considered readily tradable on the substantial equivalent of a secondary market. Under the relevant Treasury Regulations, interests in a partnership will not be considered readily tradable on a secondary market or on the substantial equivalent of a secondary market if the partnership qualifies for specified "safe harbors," which are based on the specific facts and circumstances relating to the partnership. We believe that our operating partnership currently satisfies one or more of the applicable safe harbors. However, we cannot provide any assurance that our operating partnership will, in each of its taxable years, qualify for one of these safe harbors. If our operating partnership were a publicly traded partnership, it would be taxed as a corporation unless at least 90% of its gross income consisted of "qualifying income" under Section 7704 of the Internal Revenue Code. Qualifying income is generally real property rents and other types of passive income. We believe that our operating partnership has sufficient qualifying income so that it would be taxed as a partnership even if it were a publicly traded partnership. The income requirements applicable to us to qualify as a REIT under the Internal Revenue Code and the definition of qualifying income under the publicly traded partnership rules are very similar. Although differences exist between these two income tests, we do not believe that these differences would cause our operating partnership not to satisfy the 90% gross income test applicable to publicly traded partnerships.

If our operating partnership were taxable as a corporation, the character of our assets and items of our gross income would change and could preclude us from satisfying the REIT asset tests (particularly the tests generally preventing a REIT from owning more than 10% of the voting securities, or more than 10% of the value of the securities, of a corporation) or the gross income tests as discussed in "—Requirements for Qualification—General—Asset Tests" and "—Gross Income Tests" above, and in turn could prevent us from qualifying as a REIT. See "—Failure to Qualify," below, for a discussion of the effect of our failure to meet these tests for a taxable year. In addition, any change in the status of any of our subsidiary partnerships for tax purposes might be treated as a taxable event, in which case we could have taxable income that is subject to the REIT distribution requirements without receiving any cash.

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***Tax Allocations With Respect to Partnership Properties***

A partnership is not a taxable entity for U.S. federal income tax purposes. Rather, we are required to take into account our allocable share of each partnership item of income, gains, losses, deductions, and credits for any taxable year of such partnership ending with our taxable year, without regard to whether we have received or will receive any distribution from the partnership. However, the tax liability for adjustments to a partnership's tax returns made as a result of an audit by the IRS will be imposed on the partnership itself in certain circumstances absent an election to the contrary.

The partnership agreement of our operating partnership generally provides that items of operating income and loss will be allocated to the holders of OP units in proportion to the number of OP units held by each holder. If an allocation of partnership income or loss does not comply with the requirements of Section 704(b) of the Code and the Treasury Regulations thereunder, the item subject to the allocation will be reallocated in accordance with the partners' interests in the partnership. This reallocation will be determined by taking into account all of the facts and circumstances relating to the economic arrangement of the partners with respect to such item. Our operating partnership's allocations of income and loss are intended to comply with the requirements of Section 704(b) of the Code and the Treasury Regulations promulgated under this section of the Code.

Under Section 704(c) of the Code, income, gain, loss and deduction attributable to appreciated or depreciated property that is contributed to a partnership in exchange for an interest in the partnership must be allocated for tax purposes in a manner such that the contributing partner is charged with, or benefits from, the unrealized gain or unrealized loss associated with the property at the time of the contribution. The amount of the unrealized gain or unrealized loss is generally equal to the difference between the fair market value, or book value, of the contributed property and the adjusted tax basis of such property at the time of the contribution, or a book-tax difference. Such allocations are solely for U.S. federal income tax purposes and do not affect partnership capital accounts or other economic or legal arrangements among the partners.

Our operating partnership has issued partnership units in exchange for contributions of certain properties. The partnership agreement of our operating partnership requires that allocations with respect to such properties, and any other properties that our operating partnership acquires in exchange for interests in our operating partnership, be made in a manner consistent with Section 704(c) of the Code. In addition, we and our operating partnership have agreed to use the "traditional method" with respect to such appreciated properties. Under the traditional method, which is the least favorable method from our perspective, the carryover basis of the acquired properties in the hands of our operating partnership (1) may cause us to be allocated lower amounts of depreciation and other deductions for tax purposes than would be allocated to us if all of the acquired properties were to have a tax basis equal to their fair market value at the time of acquisition and (2) in the event of a sale of such properties, could cause us to be allocated gain in excess of our corresponding economic or book gain (or taxable loss that is less than our economic or book loss), with a corresponding benefit to the partners transferring such properties to our operating partnership for interests in our operating partnership. Therefore, the use of the traditional method could result in our having taxable income that is in excess of our economic or book income as well as our cash distributions from our operating partnership, which might adversely affect our ability to comply with the REIT distribution requirements or result in our stockholders recognizing additional dividend income without an increase in distributions.

**Failure to Qualify**

In the event that we violate a provision of the Code that would result in a failure to qualify as a REIT, such REIT may nevertheless continue to qualify as a REIT if (1) the violation is due to reasonable cause and not due to willful neglect, (2) the REIT pays a penalty of $50,000 for each failure to satisfy a requirement for qualification as a REIT and (3) the violation does not include a violation under the gross income or asset tests described above. This cure provision reduces the instances that could lead to our disqualification as a REIT for violations due to reasonable cause. Relief provisions are also available for failures of the income and asset tests, as described above in "—Requirements for Qualification—General—Failure to Satisfy the Gross Income Tests" and "—Requirements for Qualification—General—Asset Tests." If we fail to qualify for taxation as a REIT in any taxable year and none of the relief provisions of the Code apply, we will be subject to tax on our taxable income at regular corporate rates. Distributions to our stockholders in any year in which such entity is not a REIT will not be deductible by us, nor will we be required to make any distributions. In this situation, to the extent of current and accumulated earnings and profits, and, subject to limitations of the Code, distributions to our stockholders will generally be taxable as regular corporate dividends. In the case of U.S. stockholders (as defined below) who are individuals, trusts or estates, such dividends may be eligible for the preferential income tax rates applicable to qualified dividend income (at a maximum rate of 20%), and dividends in the hands of corporate U.S. stockholders may be eligible for the dividends received deduction. Unless we are entitled to relief under the specific statutory provisions, we will also be disqualified from re-electing to be taxed as a REIT for four taxable years following the year during which qualification was lost. It is not possible to state whether, in all circumstances, we will be entitled to statutory relief.

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**Taxation of Stockholders**

***Taxation of Taxable U.S. Stockholders***

This section summarizes the taxation of U.S. stockholders that are not tax-exempt organizations. For these purposes, a U.S. stockholder is a beneficial owner of our common stock who for U.S. federal income tax purposes is:

● an individual who is a citizen or resident of the United States;

● a corporation (including an entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any state thereof or the District of Columbia;

● an estate whose income is subject to U.S. federal income taxation regardless of its source; or

● any trust if (1) a U.S. court is able to exercise primary supervision over the administration of such trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) it has in place a valid election in place to be treated as a U.S. person.

If an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds our common stock, the U.S. federal income tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. A partner of a partnership holding our common stock should consult its own tax advisor regarding the U.S. federal income tax consequences to the partner of the acquisition, ownership and disposition of our common stock by the partnership.

*Distributions.* Provided that we qualify as a REIT, distributions made to our taxable U.S. stockholders out of our current or accumulated earnings and profits, and not designated as capital gain dividends, will generally be taken into account by them as ordinary dividend income and generally will not be eligible for the dividends received deduction for corporations. In determining the extent to which a distribution with respect to our common stock constitutes a dividend for U.S. federal income tax purposes, our earnings and profits will be allocated first to distributions with respect to our preferred stock, if any, and then to our common stock. Dividends received from REITs are generally not eligible to be taxed at the preferential income tax rates applicable to non-corporate U.S. stockholders who receive qualified dividend income from taxable subchapter C corporations. However, non-corporate taxpayers may deduct up to 20% of certain qualified business income, including "qualified REIT dividends" (generally, dividends received by a REIT stockholder that are not designated as capital gain dividends or qualified dividend income), subject to certain limitations, generally resulting in an effective maximum U.S. federal income tax rate of 29.6% on such income.

In addition, distributions from us that are designated as capital gain dividends will be taxed to U.S. stockholders as long-term capital gains, to the extent that they do not exceed our actual net capital gain for the taxable year, without regard to the period for which the U.S. stockholder has held its shares. To the extent that we elect under the applicable provisions of the Code to retain our net capital gains, U.S. stockholders will be treated as having received, for U.S. federal income tax purposes, our undistributed capital gains as well as a corresponding credit for taxes paid by us on such retained capital gains.

U.S. stockholders will increase their adjusted tax basis in our common stock by the difference between their allocable share of such retained capital gain and their share of the tax paid by us. Corporate U.S. stockholders may be required to treat up to 20% of some capital gain dividends as ordinary income. Long-term capital gains are generally taxable at maximum U.S. federal rates of 20% in the case of U.S. stockholders who are individuals, trusts and estates and 21% in the case of U.S. stockholders that are corporations. Capital gain dividends attributable to the sale of depreciable real property held for more than 12 months are subject to a 25% maximum U.S. federal income tax rate for non-corporate U.S. stockholders, to the extent of previously claimed depreciation deductions.

Distributions in excess of our current and accumulated earnings and profits will not be taxable to a U.S. stockholder to the extent that they do not exceed the adjusted tax basis of the U.S. stockholder's common stock in respect of which the distributions were made, but rather will reduce the adjusted tax basis of these shares. To the extent that such distributions exceed the adjusted tax basis of an individual U.S. stockholder's shares, they will be included in income as long-term capital gain, or short-term capital gain if the shares have been held for one year or less. In addition, any dividend declared by us in October, November or December of any year and payable to a U.S. stockholder of record on a specified date in any such month will be treated as both paid by us and received by the U.S. stockholder on December 31 of such year, provided that the dividend is actually paid by us on or before January 31 of the following calendar year.

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With respect to U.S. stockholders who are taxed at the rates applicable to individuals, estates or trusts, we may elect to designate a portion of our distributions paid to such U.S. stockholders as "qualified dividend income." A portion of a distribution that is properly designated as qualified dividend income is taxable to non-corporate U.S. stockholders at the rates applicable to long-term capital gains, provided that the U.S. stockholder has held our common stock with respect to which the distribution is made for more than 60 days during the 121-day period beginning on the date that is 60 days before the date on which such common stock became ex-dividend with respect to the relevant distribution. The maximum amount of our distributions eligible to be designated as qualified dividend income for a taxable year is equal to the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the qualified dividend income received by us during such taxable year from non-REIT and non-RIC C corporations (including any TRS in which we may own an interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the excess of any "undistributed" net taxable income recognized during the immediately preceding year over our U.S. federal income tax with respect to such undistributed net taxable income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the excess of any income recognized during the immediately preceding year attributable to the sale of a built-in gain asset that was acquired in a carry-over basis transaction from a non-REIT C corporation over the U.S. federal income tax paid by us with respect to such built-in gain; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any earnings and profits that accumulated during a period that we were not treated as a REIT or a RIC for U.S. federal income tax purposes or that were inherited from a C corporation in a tax-deferred reorganization or similar transaction;

provided that, in no case may the amount we designate as qualified dividend income exceed the amount we distribute to our stockholders as dividends with respect to the taxable year.

To the extent that we have available net operating losses and capital losses carried forward from prior tax years, such losses may reduce the amount of distributions that must be made in order to comply with the REIT distribution requirements. See "—Effect of Subsidiary Entities—Annual Distribution Requirements." Such losses, however, are not passed through to U.S. stockholders and do not offset income of U.S. stockholders from other sources, nor do they affect the character of any distributions that are actually made by us, which are generally subject to tax in the hands of U.S. stockholders to the extent that we have current or accumulated earnings and profits.

*Dispositions of Our Common Stock*. In general, a U.S. stockholder will realize gain or loss upon the sale, redemption or other taxable disposition of our common stock in an amount equal to the difference between the sum of the fair market value of any property and the amount of cash received in such disposition and the U.S. stockholder's adjusted tax basis in the common stock at the time of the disposition. In general, a U.S. stockholder's adjusted tax basis will equal the U.S. stockholder's acquisition cost, increased by the excess of net capital gains deemed distributed to the U.S. stockholder discussed above less tax deemed paid on it and reduced by returns of capital. In general, capital gains recognized by individuals and other non-corporate U.S. stockholders upon the sale or disposition of shares of our common stock will be subject to a maximum U.S. federal income tax rate of 20%, if such shares were held for more than 12 months, and will be taxed at ordinary income rates of up to 37% if such shares were held for 12 months or less. Gains recognized by U.S. stockholders that are corporations are subject to U.S. federal income tax at a maximum rate of 21%, whether or not classified as long-term capital gains. The IRS has the authority to prescribe, but has not yet prescribed, regulations that would apply a capital gain tax rate of 25% (which is generally higher than the long-term capital gain tax rates for non-corporate holders) to a portion of capital gain realized by a non-corporate holder on the sale of REIT stock that would correspond to the REIT's "unrecaptured Section 1250 gain."

U.S. stockholders are advised to consult their tax advisors with respect to their capital gain tax liability. Capital losses recognized by a U.S. stockholder upon the disposition of our common stock held for more than one year at the time of disposition will be considered long-term capital losses, and are generally available only to offset capital gain income of the U.S. stockholder but not ordinary income (except in the case of individuals and certain noncorporate taxpayers, who may offset up to $3,000 of ordinary income each year). In addition, any loss upon a sale or exchange of shares of our common stock by a U.S. stockholder who has held the shares for six months or less, after applying holding period rules, will be treated as a long-term capital loss to the extent of distributions received from us that were required to be treated by the U.S. stockholder as long-term capital gain.

If a U.S. stockholder recognizes a loss upon a subsequent disposition of our common stock in an amount that exceeds a prescribed threshold, it is possible that the provisions of Treasury Regulations involving "reportable transactions" could apply, with a resulting requirement to separately disclose the loss generating transactions to the IRS. While these regulations are directed towards "tax shelters," they are written quite broadly, and apply to transactions that would not typically be considered tax shelters. Significant penalties apply for failure to comply with these requirements. You should consult your tax advisors concerning any possible disclosure obligation with respect to the receipt or disposition of our common stock, or transactions that might be undertaken directly or indirectly by us. Moreover, you should be aware that we and other participants in transactions involving us (including our advisors) might be subject to disclosure or other requirements pursuant to these regulations.

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***Passive Activity Losses and Investment Interest Limitations***

Distributions made by us and gain arising from the sale or exchange by a U.S. stockholder of our common stock will not be treated as passive activity income. As a result, U.S. stockholders will not be able to apply any "passive activity losses" against income or gain relating to our common stock. Distributions made by us, to the extent they do not constitute a return of capital, generally will be treated as investment income for purposes of computing the investment interest limitation. A U.S. stockholder that elects to treat capital gain dividends, qualified dividend income or capital gains from the disposition of common stock as investment income for purposes of the investment interest limitation will be taxed at ordinary income rates on such amounts.

***Medicare Tax on Unearned Income***

Certain U.S. stockholders that are individuals, estates or trusts are required to pay an additional 3.8% tax on "net investment income," which includes, among other things, dividends on and capital gains from the sale or other disposition of common stock. Non-corporate U.S. stockholders should consult their tax advisors regarding the effect, if any, of this additional tax on their ownership and disposition of our common stock.

***Foreign Accounts***

Dividends paid to "foreign financial institutions" in respect of accounts of U.S. stockholders at such financial institutions may be subject to withholding at a rate of 30%. U.S. stockholders should consult their tax advisors regarding the effect, if any, of these withholding rules on their ownership and disposition of our common stock.

***Taxation of Tax-Exempt U.S. Stockholders***

U.S. tax-exempt entities, including qualified employee pension and profit sharing trusts and individual retirement accounts, generally are exempt from U.S. federal income taxation. However, they are subject to taxation on their unrelated business taxable income ("UBTI"). While many investments in real estate may generate UBTI, dividend distributions from a REIT to a tax-exempt entity do not constitute UBTI. Provided that a tax-exempt U.S. stockholder has not held our common stock as "debt financed property" within the meaning of the Code (i.e*.*, where the acquisition or ownership of the property is financed through a borrowing by the tax-exempt stockholder), and our stock is not used in an unrelated trade or business, distributions from us and income from the sale of our common stock generally should not give rise to UBTI to a tax-exempt U.S. stockholder.

Tax-exempt U.S. stockholders that are social clubs, voluntary employee benefit associations, supplemental unemployment benefit trusts, and qualified group legal services plans exempt from U.S. federal income taxation under Sections 501(c)(7), (c)(9), (c)(17) and (c)(20) of the Code, respectively, are subject to different UBTI rules, which generally will require them to characterize distributions from us as UBTI unless they are able to properly claim a deduction for amounts set aside or placed in reserve for specific purposes so as to offset the income generated by their investment in our common stock. These prospective investors should consult their tax advisors concerning these "set aside" and reserve requirements.

In certain circumstances, a pension trust that (1) is described in Section 401(a) of the Code, and (2) is tax exempt under Section 501(a) of the Code (a "qualified pension trust") that owns more than 10% of our stock could be required to treat a percentage of the dividends from us as UBTI if we are a "pension-held REIT." We will not be a pension-held REIT unless (1) either (A) at least one qualified pension trust owns more than 25% of the value of our stock, or (B) one or more qualified pension trusts, each individually holding more than 10% of the value of our stock, collectively owns more than 50% of the value of such stock and (2) we would not have qualified as a REIT but for the fact that Section 856(h)(3) of the Code provides that stock owned by such trusts shall be treated, for purposes of the requirement that not more than 50% of the value of the outstanding stock of a REIT is owned, directly or indirectly, by five or fewer "individuals" (as defined in the Code to include certain entities), as owned by the beneficiaries of such trusts. Although we do not believe that we are or will be treated as a pension-held REIT, there can be no assurance that this will be the case. Prospective stockholders who are tax-exempt organizations should consult with their tax advisors regarding the tax consequences of investing in our common stock. The ownership limits contained in our charter generally prevent a tax-exempt entity from directly owning more than 10% of the value of our common stock. However, no assurance can be provided that such ownership limits will prevent us from being treated as a pension-held REIT.

**Tax-exempt U.S. stockholders are urged to consult their tax advisors regarding the U.S. federal, state, local and non-U.S. tax consequences of the acquisition, ownership and disposition of our common stock.**

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***Taxation of Non-U.S. Stockholders***

The following is a summary of certain U.S. federal income tax consequences of the acquisition, ownership and disposition of our common stock applicable to non-U.S. stockholders. For these purposes, a non-U.S. stockholder is a beneficial owner of our common stock who is neither a U.S. stockholder nor an entity that is treated as a partnership for U.S. federal income tax purposes. The discussion is based on current law and is for general information only. It addresses only selective and not all aspects of U.S. federal income taxation. Non-U.S. stockholders are urged to consult their tax advisors to determine the impact of federal, state, local and non-U.S. income tax laws and any applicable tax treaty on the exchange of your notes for shares of our common stock and the ownership and disposition of shares of our common stock, including any reporting requirements.

*Ordinary Dividends.* The portion of dividends received by non-U.S. stockholders payable out of our earnings and profits that are not attributable to gains from sales or exchanges of U.S. real property interests and which are not effectively connected with a U.S. trade or business of the non-U.S. stockholder generally will be treated as ordinary income and will be subject to U.S. federal withholding tax at the rate of 30%, unless reduced or eliminated by an applicable income tax treaty. Under some treaties, however, lower rates generally applicable to dividends do not apply to dividends from REITs.

In general, non-U.S. stockholders will not be considered to be engaged in a U.S. trade or business solely as a result of their ownership of our common stock. In cases where the dividend income from a non-U.S. stockholder's investment in our common stock is, or is treated as, effectively connected with the non-U.S. stockholder's conduct of a U.S. trade or business, the non-U.S. stockholder generally will not be subject to the 30% withholding described above and will be subject to U.S. federal income tax at graduated rates in the same manner as U.S. stockholders are taxed with respect to such dividends, and may also be subject to the 30% branch profits tax (unless reduced or eliminated by a treaty) on the income after the application of the income tax in the case of a non-U.S. stockholder that is a corporation.

*Non-Dividend Distributions.* Unless (1) our common stock constitutes a U.S. real property interest (a "USRPI"), or (2) either (A) if the non-U.S. stockholder's investment in our common stock is effectively connected with a U.S. trade or business conducted by such non-U.S. stockholder (in which case the non-U.S. stockholder will be subject to the same treatment as U.S. stockholders with respect to such gain unless otherwise provided in an applicable tax treaty) or (B) if the non-U.S. stockholder is a nonresident alien individual who was present in the United States for 183 days or more during the taxable year and certain other conditions are met (in which case the non-U.S. stockholder will be subject to a 30% tax on the individual's net capital gain from U.S. sources for the year as reduced or eliminated by an applicable income tax treaty), distributions by us which are not out of our earnings and profits will not be subject to U.S. federal income tax. If it cannot be determined at the time at which a distribution is made whether or not the distribution will exceed current and accumulated earnings and profits, the distribution will be subject to withholding at the rate applicable to dividends. However, the non-U.S. stockholder may seek a refund from the IRS of any amounts withheld if it is subsequently determined that the distribution was, in fact, in excess of our current and accumulated earnings and profits. If our common stock constitutes a USRPI, as described below, distributions by us in excess of the sum of our earnings and profits plus the non-U.S. stockholder's adjusted tax basis in our common stock will be taxed under the Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA"), at the rate of tax, including any applicable capital gains rates, that would apply to a U.S. stockholder of the same type (e.g*.*, an individual or a corporation, as the case may be), and the collection of the tax will be enforced by a refundable withholding tax at a rate of 15% of the amount by which a distribution exceeds the stockholder's share of our earnings and profits unless an appropriate exemption certificate is provided. Non-U.S. stockholders that are treated as "qualified foreign pension funds" are exempt from U.S. federal income and applicable withholding taxes under FIRPTA on such distributions by us.

*Capital Gain Dividends.* Under FIRPTA, a distribution made by us to a non-U.S. stockholder, to the extent attributable to gains from dispositions of USRPIs held by us directly or through pass-through subsidiaries ("USRPI capital gains"), will be considered effectively connected with a U.S. trade or business of the non-U.S. stockholder and will be subject to U.S. federal income tax at the rates applicable to U.S. stockholders, without regard to whether the distribution is designated as a capital gain dividend. In addition, we will be required to withhold tax equal to 21% of the amount of capital gain dividends to the extent the dividends constitute USRPI capital gains. Distributions to a non-U.S. corporate shareholder subject to FIRPTA may also be subject to a 30% branch profits tax (unless reduced or eliminated by an applicable income tax treaty). However, the 21% withholding tax will not apply to any capital gain dividend (i) with respect to any class of our common stock which is regularly traded on an established securities market located in the United States as defined by applicable Treasury regulations if the non-U.S. stockholder did not own more than 10% of such class of common stock at any time during the one-year period ending on the date of such dividend or (ii) received by certain non-U.S. publicly traded investment vehicles meeting certain requirements. Instead, any such capital gain dividend received by such a stockholder will be treated as a distribution subject to the rules discussed above under "—Taxation of Stockholders—Taxation of Non-U.S. Stockholders—Ordinary Dividends." Also, the branch profits tax will not apply to such a distribution. In addition, non-U.S. stockholders that are treated as "qualified foreign pension funds" are exempt from income and withholding taxes applicable under FIRPTA on distributions from us to the extent attributable to USRPI capital gains.

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A distribution is not a USRPI capital gain if we held the underlying asset solely as a creditor, although the holding of a shared appreciation mortgage loan would not be solely as a creditor. Capital gain dividends received by a non-U.S. stockholder from a REIT that are not USRPI capital gains are generally not subject to U.S. federal income or withholding tax, unless either (1) the non-U.S. stockholder's investment in our common stock is effectively connected with a U.S. trade or business conducted by such non-U.S. stockholder (in which case the non-U.S. stockholder will be subject to the same treatment as U.S. stockholders with respect to such gain unless otherwise provided in an applicable tax treaty) or (2) the non-U.S. stockholder is a nonresident alien individual who was present in the United States for 183 days or more during the taxable year and certain other conditions are met (in which case the non-U.S. stockholder will be subject to a 30% tax on the individual's net capital gain from U.S. sources for the year, unless reduced or eliminated by an applicable income tax treaty).

*Dispositions of Our Shares.* Unless our common stock constitutes a USRPI, a sale of the common stock by a non-U.S. stockholder generally will not be subject to U.S. federal income taxation under FIRPTA. The common stock will not be treated as a USRPI if less than 50% of our assets throughout a prescribed testing period, and taking account certain look-through rules with respect to subsidiary entities, consist of interests in real property located within the United States, excluding, for this purpose, interests in real property solely in a capacity as a creditor. It is expected that more than 50% of our assets will consist of interests in real property located in the United States.

However, our common stock nonetheless will not constitute a USRPI if we are a "domestically controlled REIT." A domestically controlled REIT is a REIT in which, at all times during a specified testing period (generally the lesser of the five-year period ending on the date of disposition of or a distribution on its shares or the period of existence), less than 50% in value of its outstanding stock is held directly or indirectly by non-U.S. stockholders. For this purpose, a REIT may generally presume that any class of the REIT's share that are "regularly traded," as defined by the applicable Treasury Regulations, on an established securities market located in the United States is held by U.S. persons, except in the case of holders of 5% or more of such class of shares, and except to the extent that the REIT has actual knowledge that such shares are held by non-U.S. persons. In addition, certain look-through and presumption rules apply for this purposes to any shares of a REIT that are held by a RIC or another REIT. Because our common stock will be publicly traded, however, no assurance can be given that we are, or that if we are, that we will remain, a domestically controlled REIT.

In the event that we do not constitute a domestically controlled REIT, a non-U.S. stockholder's sale of our common stock nonetheless will generally not be subject to tax under FIRPTA as a sale of a USRPI, provided that (1) our common stock is regularly traded on an established securities market located in the United States, and (2) the selling non-U.S. stockholder owned, actually or constructively, 10% or less of our outstanding shares at all times during a specified testing period. In addition, even if we do not qualify as a domestically controlled REIT and our common stock is not regularly traded on an established securities market located in the United States, non-U.S. stockholders that are treated as "qualified foreign pension funds" are exempt from tax under FIRPTA on the sale of our common stock.

Specific "wash sales" rules applicable to sales of stock in a domestically-controlled REIT could result in gain recognition, taxable under FIRPTA, upon the sale of our common stock even if we are a domestically-controlled REIT. These rules would apply if a non-U.S. stockholder (a) disposes of our common stock within a 30-day period preceding the ex-dividend date of a distribution, any portion of which, but for the disposition, would have been taxable to such non-U.S. stockholder as gain from the sale or exchange of a USRPI, and (b) acquires, or enters into a contract or option to acquire, other shares of our common stock during the 61-day period that begins 30 days prior to such ex-dividend date.

If gain on the sale of our common stock were subject to taxation under FIRPTA, the non-U.S. stockholder would be required to file a U.S. federal income tax return and would be subject to the same treatment as a U.S. stockholder with respect to such gain, subject to applicable alternative minimum tax and a special alternative minimum tax in the case of non-resident alien individuals, and the purchaser of the common stock, in certain cases, could be required to withhold 15% of the purchase price and remit such amount to the IRS.

Gain from the sale of our common stock that would not otherwise be subject to FIRPTA will nonetheless be taxable in the United States to a non-U.S. stockholder in two cases: (1) if the non-U.S. stockholder's investment in our common stock is effectively connected with a U.S. trade or business conducted by such non-U.S. stockholder, the non-U.S. stockholder will be subject to the same treatment as a U.S. stockholder with respect to such gain unless otherwise provided in an applicable tax treaty, or (2) if the non-U.S. stockholder is a nonresident alien individual who was present in the United States for 183 days or more during the taxable year and certain other conditions are met, the nonresident alien individual will be subject to a 30% tax on the individual's capital gain.

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***Backup Withholding and Information Reporting***

We will report to our U.S. stockholders and the IRS the amount of dividends paid during each calendar year and the amount of any tax withheld. Under the backup withholding rules, a U.S. stockholder may be subject to backup withholding, with respect to dividends paid, unless the holder (1) is a corporation or comes within other exempt categories and, when required, demonstrates this fact or (2) provides a taxpayer identification number or social security number, certifies under penalties of perjury that such number is correct and that such holder is not subject to backup withholding and otherwise complies with applicable requirements of the backup withholding rules. A U.S. stockholder that does not provide his or her correct taxpayer identification number or social security number may also be subject to penalties imposed by the IRS. In addition, we may be required to withhold a portion of capital gain distribution to any U.S. stockholder who fails to certify their non-foreign status.

We must report annually to the IRS and to each non-U.S. stockholder the amount of dividends paid to such holder and the tax withheld with respect to such dividends, regardless of whether withholding was required. Copies of the information returns reporting such dividends and withholding may also be made available to the tax authorities in the country in which the non-U.S. stockholder resides under the provisions of an applicable income tax treaty. A non-U.S. stockholder may be subject to backup withholding unless applicable certification requirements are met.

Payment of the proceeds of a sale of our common stock within the United States is subject to both backup withholding and information reporting requirements unless the beneficial owner certifies under penalties of perjury that it is a non-U.S. stockholder (and the payor does not have actual knowledge or reason to know that the beneficial owner is a United States person) or the holder otherwise establishes an exemption. Payment of the proceeds of a sale of our common stock conducted through certain United States related financial intermediaries is subject to information reporting requirements (but not backup withholding) unless the financial intermediary has documentary evidence in its records that the beneficial owner is a non-U.S. stockholder and specified conditions are met or an exemption is otherwise established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against such stockholder's U.S. federal income tax liability, provided the required information is furnished to the IRS in a timely manner.

***Foreign Accounts***

Pursuant to rules generally referred to as FATCA, withholding taxes may be imposed (at a 30% rate) on U.S. source payments made to "foreign financial institutions". Under these withholding rules, the failure to comply with additional certification, information reporting and other specified requirements could result in withholding tax being imposed on payments of dividends and sales proceeds to U.S. stockholders (as defined above) who own shares of our common stock through foreign accounts or foreign intermediaries and certain non-U.S. stockholders. The withholding tax may be imposed on dividends on our common stock paid to a foreign financial institution or to a foreign entity other than a financial institution, unless (i) the foreign financial institution undertakes certain diligence and reporting obligations or (ii) the foreign entity that is not a financial institution either certifies it does not have any substantial United States owners or furnishes identifying information regarding each substantial United States owner. If the payee is a foreign financial institution (that is not otherwise exempt), it must enter into an agreement with the United States Treasury requiring, among other things, that it undertake to identify accounts held by certain United States persons or United States-owned foreign entities, annually report certain information about such accounts, and withhold 30% on payments to account holders whose actions prevent it from complying with these reporting and other requirements. Alternatively, if the foreign financial institution is a resident in a jurisdiction that has entered into an intergovernmental agreement to implement FATCA, it must comply with the revised diligence and reporting obligations of such intergovernmental agreement. Prospective investors should consult their tax advisors regarding these withholding rules. Non-U.S. stockholders should consult their tax advisors to determine the applicability of FATCA in light of their individual circumstances.

***State, Local and Foreign Taxes***

We and our subsidiaries and stockholders may be subject to state, local and foreign taxation in various jurisdictions, including those in which they or we transact business, own property or reside. We will likely own interests in properties located in a number of jurisdictions, and we may be required to file tax returns and pay taxes in certain of those jurisdictions. The state, local or foreign tax treatment of our company and our stockholders may not conform to the U.S. federal income tax treatment discussed above. Any foreign taxes incurred by us would not pass through to stockholders as a credit against their U.S. federal income tax liability. Prospective stockholders should consult their tax advisor regarding the application and effect of state, local and foreign income and other tax laws on an investment in our common stock.

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**Other Tax Considerations**

***Legislative or Other Actions Affecting REITs***

The rules dealing with U.S. federal income taxation are constantly under review by Congress and persons involved in the legislative process and by the IRS and the U.S. Treasury Department and may be changed at any time possibly with retroactive effects. No assurance can be given as to whether, when, or in what form, the U.S. federal income tax laws applicable to us and our stockholders may be enacted. Changes to the U.S. federal income tax laws and interpretations of U.S. federal tax laws could adversely affect an investment in our common stock.

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**UNDERWRITING**

We are offering our shares of common stock described in this prospectus through the underwriters named below. D. Boral Capital LLC, or D. Boral, is acting as representative of the underwriters (the "Representative"). The Representative may retain other brokers or dealers to act as sub-agents on its behalf in connection with this offering and may pay any sub-agent a solicitation fee with respect to any securities placed by it. We will enter into an underwriting agreement with the Representative. Subject to the terms and conditions of the underwriting agreement, the underwriters have agreed to purchase, and we have agreed to issue and sell to the underwriters the number of shares of common stock listed in the following table.

---

| | |
|:---|:---|
| **Underwriters** | **Number of <br>Shares** |
| D. Boral Capital LLC | 3000000 |
| Total | 3000000 |

---

The underwriting agreement provides that the underwriters must purchase all of the shares of common stock being sold in this offering if they purchase any of them. However, the underwriters are not required to take or pay for the shares of common stock covered by the underwriters' option to purchase additional shares of common stock as described below.

JOSS's shares of common stock are offered subject to a number of conditions, including:

● receipt and acceptance of JOSS's shares of common stock by the underwriters; and

● the underwriters' right to reject orders in whole or in part.

JOSS has been advised by the Representative that the underwriters intend to make a market in JOSS's shares of common stock but that they are not obligated to do so and may discontinue making a market at any time without notice.

In connection with this offering, the underwriters may distribute prospectuses electronically.

We agreed to indemnify the underwriters and certain of their controlling persons against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters may be required to make in respect of those liabilities.

The underwriters will offer the shares of common stock to the public at the initial public offering price set forth on the cover of this prospectus and to selected dealers at the initial public offering price less a selling concession not in excess of $ per share of common stock. After this offering, the initial public offering price, concession, and reallowance to dealers may be reduced by the underwriters. No change in those terms will change the amount of proceeds to be received by us as set forth on the cover page of this prospectus. The securities are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part.

**Over-Allotment Option**

We have granted the underwriters an option, exercisable during the 45-day period after the closing of this offering, to purchase up to 450,000 shares of common stock, or 15% additional shares of common stock to be issued by JOSS at the initial public offering price listed on the cover page of this prospectus, less underwriting discounts. If any shares of common stock are purchased with this option, the underwriters will purchase shares in approximately the same proportion as shown in the table above. The underwriters may exercise this option solely for the purpose of covering over-allotments, if any, made in connection with the offering contemplated by this prospectus.

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**Fees, Commissions and Expense Reimbursement**

Shares of common stock sold by the underwriters to the public will initially be offered at the initial offering price set forth on the cover of this prospectus. The underwriters may offer the shares of common stock through one or more of their affiliates or selling agents. If all the shares are not sold at the initial public offering price, the Representative may change the offering price and the other selling terms. Upon execution of the underwriting agreement, the underwriters will be obligated to purchase the shares of common stock at the prices and upon the terms stated therein.

The following table shows the per share and total underwriting discount we will pay to the underwriters assuming both no exercise and full exercise of the underwriters' option to purchase up to 450,000 shares of common stock, or 15% additional shares of common stock. Amounts are presented in US$.

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total Without <br>Exercise of <br>Over-Allotment <br>Option** | **Total With <br>Exercise of <br>Over-Allotment <br>Option** |
| Public Offering Price | $5.00 | $15000000 | $17250000 |
| Underwriting discount<sup>(1)</sup> | $0.35 | $1050000 | $1207500 |
| Proceeds to Us, Before Expenses | $4.65 | $13950000 | $16042500 |

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(1) Represents underwriting discounts equal to 7.00% of the common stock offering price.

We have agreed to pay the Representative reasonable out-of-pocket expenses including but not limited to, (i) all fees, expenses and disbursements relating to the registration or qualification of the securities under the "blue sky" securities laws of such states and other jurisdictions as the Representative may reasonably designate (including, without limitation, all filing and registration fees, and the reasonable fees and disbursements of JOSS's "blue sky" counsel, which will be the Representative's counsel, provided that such fees will not exceed $1,000 unless consented to in writing by JOSS) unless such filings are not required in connection with JOSS's proposed listing on a national exchange, if applicable; (ii) all fees, expenses and disbursements relating to the registration, qualification or exemption of the securities under the securities laws of such foreign jurisdictions as the Representative may reasonably designate; (iii) the costs of all mailing and printing of the offering documents; (iv) transfer and/or stamp taxes, if any, payable upon the transfer of securities from JOSS to the Representative; (v) all filing fees and communication expenses associated with the review of the offering by FINRA; (vi) up to $20,000 of the Representative's actual accountable road show expenses and due diligence expenses for the offering; (vii) the cost in the amount of $29,500 associated with the Representative's use of Ipreo's book building, prospectus tracking and compliance software for the offering and (viii) the fees for the Representative's legal counsel, such total legal fees in an amount not to exceed $125,000. For the avoidance of doubt, the Representative's total out-of-pocket reimbursable expenses will be limited to $125,000.

JOSS shall be responsible for the Representative's external counsel legal costs detailed above, any background check costs incurred by the Representative and any due diligence costs, irrespective of whether the offering is consummated or not, limited to $50,000 if this offering is not consummated. We have agreed to pay an advance of $50,000 to the Representative for its anticipated out-of-pocket expenses; any advance will be returned to us to the extent the Representative's out-of-pocket accountable expenses are not actually incurred in accordance with FINRA Rule 5110(g)(4)(A). Upon the earlier of the termination of the Representative's engagement letter or completion of this offering, JOSS agrees to pay promptly in cash any unreimbursed expenses that the Representative actually incurred as of such date.

**Tail Financing**

We have also agreed to pay the Representative a tail fee equal to 7.00% of the total gross proceeds received by us from the sale of any equity and/or equity derivative instruments to any investor who was contacted by the Representative during the term of its engagement, if such investor provides us with capital in any public or private offering or other financing or capital raising transaction within 8 months after final closing of this offering.

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**Right of First Refusal**

The underwriting agreement will provide that for a period of 8 months from the closing of the offering, we will grant the Representative an irrevocable right of first refusal to act as sole investment banker, sole book-runner, sole financial advisor, sole underwriter and/or sole placement agent, at the representative's sole discretion, for each and every future public equity offering, including all equity linked financings, during such 8-month period for us, or any successor to or any subsidiary of us, on terms customary to the Representative. The Representative has the sole right to determine whether or not any other broker dealer shall have the right to participate in any such offering and the economic terms of any such participation.

**Advisory Services**

We have also engaged the Representative to provide advisory services from time to time. As part of the advisory services, the Representative may introduce us to third parties which may be interested in financing or entering into a merger, acquisition or such similar transaction (each an "M&A transaction"). We have agreed that if during the twelve months following the final closing of this offering we or any party the Representative to whom we were introduced, proposes and then consummates a financing or M&A transaction, we shall pay the Representative an agreed upon fee, payable upon closing of such transaction.

**Indemnification**

We have agreed to indemnify the Representative against liabilities relating to the offering arising under the Securities Act and the Exchange Act and to contribute to payments that the Representative may be required to make for these liabilities.

**Application for NYSE American Market Listing**

We have applied to have our shares of common stock approved for listing/quotation on the NYSE American under the symbol "JOSS". We will not consummate and close this offering without a listing approval letter from the NYSE American.

**Foreign Regulatory Restrictions on Purchase of our Shares**

We have not taken any action to permit a public offering of our shares outside the United States or to permit the possession or distribution of this prospectus outside the United States. People outside the United States who come into possession of this prospectus must inform themselves about and observe any restrictions relating to this offering of our shares and the distribution of this prospectus outside the United States.

**Electronic Offer, Sale and Distribution of Shares of Common Stock**

A prospectus in electronic format may be made available on the websites maintained by the Representative. In addition, the shares of common stock may be sold by the Representative to securities dealers who resell the shares of common stock to online brokerage account holders. Other than the prospectus in electronic format, the information on the Representative's website and any information contained in any other website maintained by the Representative is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the Representative in its capacity as Representative and should not be relied upon by investors.

**Price Stabilization, Short Positions**

In connection with this offering, the underwriters may engage in activities that stabilize, maintain or otherwise affect the price of our shares of common stock during and after this offering, including:

● stabilizing transactions;

● short sales;

● imposition of penalty bids; and

● syndicate covering transactions.

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The underwriters may close out any covered short position by either exercising the underwriters' option, in whole or in part, or by purchasing shares in the open market. In making this determination, the underwriters will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which the underwriters may purchase shares through the over-allotment option.

Naked short sales are short sales made in excess of the over-allotment option. The underwriters must close out any naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the shares of common stock in the open market that could adversely affect investors who purchased in this offering.

The underwriters also may impose a penalty bid. This permits a particular underwriter to reclaim a selling concession from a syndicate member when the shares of common stock originally sold by the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.

**Determination of Offering Price**

Prior to this offering, there was no public market for JOSS's shares of common stock. The initial public offering price will be determined by negotiation between JOSS and the Representative. The principal factors to be considered in determining the initial public offering price include, but are not limited to:

● the information set forth in this prospectus and otherwise available to the Representative;

● our history and prospects and the history and prospects for the industry in which we compete;

● our past and present financial performance;

● our prospects for future earnings and the present state of our development;

● the general condition of the securities market at the time of this offering;

● the recent market prices of, and demand for, publicly traded shares of generally comparable companies; and

● other factors deemed relevant by the Representative and us.

The estimated public offering price range set forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither we nor the underwriters can assure investors that an active trading market will develop for JOSS's shares of common stock or that the shares of common stock will trade in the public market at or above the initial public offering price.

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**Affiliations**

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. The underwriters and their affiliates may from time to time in the future engage with us and perform services for us or in the ordinary course of their business for which they will receive customary fees and expenses. In the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investment and securities activities may involve securities and/or instruments of us. The underwriters and their respective affiliates may also make investment recommendations and/or publish or express independent research views in respect of these securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in these securities and instruments.

**Lock-up Agreements**

We have agreed that, without the prior written consent of the Representative, for a period of 180 days after the closing of this offering (the "Lock-Up Period"), not to:

● offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, change the terms of or grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, or file with the SEC a registration statement under the Securities Act relating to, our common stock or any securities convertible into or exercisable or exchangeable for our common stock, except to the Representative; or

● enter into any swap or other agreement that transfers to another, in whole or in part, any of the economic consequences of ownership of our shares of common stock or any such other securities convertible into or exercisable or exchangeable for our shares of common stock or any such other securities, except to the Representative,

The lock-up restrictions for JOSS do not apply to: (A) the securities being offered in this offering, (B) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of JOSS, provided that such securities are issued as "restricted securities" (as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection therewith during the lock-up period and provided that any such issuance shall only be to a person (or to the equity holders of a person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of JOSS, but shall not include a transaction in which JOSS is issuing securities primarily for the purpose of raising capital.

Each of our directors and officers and certain holders of our outstanding shares of common stock (including each holder who holds 5% or more of our outstanding shares of common stock on a fully diluted basis immediately prior to the consummation of the offering) have agreed or are otherwise contractually restricted for a period of 180 days after the closing of this offering, without the prior written consent of the Representative not to directly or indirectly:

● offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any securities of JOSS (including the issuance of shares of common stock upon the exercise of options) (collectively, the "Lock-Up Securities"), whether now owned or hereafter acquired by such shareholder, directors and/or officers or with respect to which such shareholder, director or officer has or hereafter acquires the power of disposition, or file, or cause to be filed, any registration statement under the Securities Act of 1933, as amended, with respect to any of the foregoing; or

● enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Lock-Up Securities;

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The shareholders, directors and officers subject to the lock-up restrictions may transfer the Lock-Up Securities without the prior consent of the Representative provided that (1) the Representative receives a signed lock-up agreement for the balance of the lock-up period from each donee, trustee or transferee, as the case may be, (2) any such transfer shall not involve a disposition for value, (3) such transfers are not required to be reported in any public report or filing with the SEC, or otherwise and (4) such shareholder, directors and/or officers subject to the lock-up restriction does not otherwise voluntarily effect any public filing or report regarding such transfers. In addition, the above restrictions will not apply to Lock-Up Securities transferred:

&nbsp;&nbsp;&nbsp;&nbsp;(i) as a bona fide gift or gifts (including but not limited to charitable gifts); or

&nbsp;&nbsp;&nbsp;&nbsp;(ii) by will, other testamentary document or intestate succession; or

&nbsp;&nbsp;&nbsp;&nbsp;(iii) to any member of the immediate family of shareholder, directors and/or officers subject to the lock-up restriction or to a trust or other entity for the direct or indirect benefit of, or wholly-owned by, such shareholder, directors and/or officers or the immediate family of such shareholder, directors and/or officers (for purposes of this lock-up agreement, "immediate family" shall mean any relationship by blood, marriage or adoption, not more remote than first cousin); or

&nbsp;&nbsp;&nbsp;&nbsp;(iv) pursuant to an order of a court or regulatory agency having jurisdiction over the undersigned; or

&nbsp;&nbsp;&nbsp;&nbsp;(v) to any corporation, partnership, limited liability company or other entity of which the undersigned or the immediate family of the undersigned are the legal and beneficial owner of all of the outstanding equity securities or similar interests; or

&nbsp;&nbsp;&nbsp;&nbsp;(vi) to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (i) through (v) above; or

&nbsp;&nbsp;&nbsp;&nbsp;(vii) if the shareholder, directors and/or officers subject to the lock-up restriction is a corporation, partnership, limited liability company, trust or other business entity (1) transfers to another corporation, partnership, limited liability company, trust or other business entity that is a direct or indirect affiliate (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of such shareholder, directors and/or officers or (2) distributions of shares of common stock or any security convertible into or exercisable for shares of common stock to limited partners, limited liability company members or stockholders of such shareholder, directors and/or officers; or

&nbsp;&nbsp;&nbsp;&nbsp;(viii) if the shareholder, directors and/or officers subject to the lock-up restriction is a trust, transfers to the beneficiary of such trust; or

&nbsp;&nbsp;&nbsp;&nbsp;(ix) by operation of law pursuant to a qualified domestic order or in connection with a divorce settlement;

&nbsp;&nbsp;&nbsp;&nbsp;(x) pursuant to any employee benefit plan, qualified stock option plan or other employee compensation plan of JOSS or our operating partnership;

&nbsp;&nbsp;&nbsp;&nbsp;(xi) in connection with the formation transactions; or

&nbsp;&nbsp;&nbsp;&nbsp;(xii) pursuant to a trading plan established pursuant to Rule 10b5-1 of the Exchange Act.

There are no existing agreements between the Representative and any person who will execute a lock-up agreement in connection with this offering providing consent to the sale of shares prior to the expiration of the lock-up period. The lock up does not apply to the issuance of shares upon the exercise of rights to acquire shares of common stock pursuant to any existing stock option or the conversion of any of our preferred convertible stock.

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**LEGAL MATTERS**

Certain legal matters, including certain tax matters, will be passed upon for us by Clifford Chance US LLP, New York, NY. Winston & Strawn LLP, Houston, TX, will act as counsel to D. Boral Capital LLC.

**EXPERTS**

The financial statements of JOSS Realty REIT, Inc. as of April 15, 2025, have been included herein in reliance upon the report of CohnReznick LLP, independent registered public accounting firm, appearing elsewhere herein, given on the authority of said firm as experts in accounting and auditing.

The combined consolidated financial statements of JOSS Realty as of December 31, 2024 and 2023, and for the years then ended have been included herein in reliance upon the report of CohnReznick LLP, independent registered public accounting firm, appearing elsewhere herein, given on the authority of said firm as experts in accounting and auditing. The report of CohnReznick LLP contains an explanatory paragraph about the ability of JOSS Realty to continue as a going concern.

The financial statements of the property located at 1401-1485 1st Street, Napa, CA ("Napa Square") as of December 31, 2024 and 2023, and for the years then ended have been included herein in reliance upon the report of CohnReznick LLP, independent registered public accounting firm, appearing elsewhere herein, given on the authority of said firm as experts in accounting and auditing. The report of CohnReznick LLP contains an explanatory paragraph about the ability of Napa Square to continue as a going concern.

**WHERE YOU CAN FIND MORE INFORMATION**

We maintain a web site at www.jrpllc.com. Information contained on our web site is not incorporated by reference into this prospectus, and you should not consider information contained on our web site to be part of this prospectus.

We have filed a registration statement on Form S-11, of which this prospectus constitutes a part, with the SEC under the Securities Act with respect to this offering of our common stock. This prospectus does not contain all of the information set forth in the registration statement, which also includes numerous exhibits and schedules. For further information with respect to our Company and the shares of common stock offered hereby, reference is made to the registration statement, including the exhibits and schedules thereto. Statements contained in this prospectus as to the contents of any contract or other document are not necessarily complete, and where such document has been filed as an exhibit to the registration statement, each statement is qualified in all respects by reference to the contents of the full document. Our SEC filings, including our registration statement, are available to you, free of charge, on the SEC's web site, www.sec.gov.

As a result of this offering, we will become subject to the information and periodic reporting requirements of the Exchange Act, and we will file periodic reports and other information with the SEC. These periodic reports and other information will be available for inspection and copying at the SEC's public reference facilities and through the SEC's web site referred to above.

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**JOSS REALTY REIT, INC.**

**Pro Forma Condensed Consolidated Balance Sheet**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of<br> September 30,<br> 2025** | **As of<br> September 30,<br> 2025** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma<br> As of<br> September 30,<br> 2025** |
|  | **JOSS REALTY REIT, INC.** | **JOSS REALTY PARTNERS** | **AJE #1** | **AJE #2** | **AJE #3** | **AJE #4** | **AJE #5** | **AJE #6** | **AJE #7** | **AJE #8** | **AJE #9** | **COMBINED ENTITY INCLUDING OVER-ALLOTMENT OPTION** |
|  | **(Historical)** | **(Historical)** | **Elimination of Due to/From Between Entities** | **Elimination of Historical Equity of Joss Realty Partners** | **Issuance of Common Stock Upon IPO** | **Recognition of Transaction Expenses** | **Payoff of Preferred Equity** | **Issuance of OP Units Upon Formation** | **Full Exercise of Over-Allotment Option** | **Additional Transaction Expenses in Connection with Full Exercise of Over-Allotment Option** | **Issuance of 325,500 shares of restricted stock** | **Recalculated** |
| **ASSETS** | | | | | | | | | | | | |
| Investments in real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Land and improvements | $- | $5277196 |  |  |  |  |  |  |  |  |  | $5277196 |
| &nbsp;&nbsp;&nbsp;&nbsp; Buildings and improvements |  | 31447168 |  |  |  |  |  |  |  |  |  | 31447168 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tenant improvements | - | 7107888 |  |  |  |  |  |  |  |  |  | 7107888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investments in real estate |  | 43832252 |  |  |  |  |  |  |  |  |  | 43832252 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Accumulated depreciation | - | (12976389) |  |  |  |  |  |  |  |  |  | (12976389) |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in real estate, net |  | 30855863 |  |  |  |  |  |  |  |  |  | 30855863 |
| Cash | 704 | 782607 |  |  | 15000000 | (4250000) | (7064659) |  | 2250000 | (157500) |  | 6561152 |
| Restricted cash |  | 536963 |  |  |  |  |  |  |  |  |  | 536963 |
| Tenant receivables |  | 127624 |  |  |  |  |  |  |  |  |  | 127624 |
| Due from Joss Realty REIT |  | 24786 | (24786) |  |  |  |  |  |  |  |  |  |
| Deferred rent receivables |  | 2233733 |  |  |  |  |  |  |  |  |  | 2233733 |
| Prepaid expenses and other assets | 25000 | 1412811 |  |  |  |  |  |  |  |  |  | 1437811 |
| Deferred transaction costs | 1823232 |  | (24786) |  |  | (1798446) |  |  |  |  |  |  |
| Equity method investment |  | 9094890 |  |  |  |  |  |  |  |  |  | 9094890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | $1848936 | $45069277 | $(49572) | $- | $15000000 | $(6048446) | $(7064659) | $- | $2250000 | $(157500) |  | $50848036 |
| **LIABILITIES, PREFERRED EQUITY AND MEMBERS' EQUITY (STOCKHOLDERS' EQUITY)** |  |  |  |  |  |  |  |  |  |  |  |  |
| Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage notes payable, net | $- | $34129185 |  |  |  |  |  |  |  |  |  | $34129185 |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to Joss Realty Partners | 24786 |  | (24786) |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 1824921 | 1909808 |  |  |  | (1798446) |  |  |  |  |  | 1936283 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued interest |  | 62175 |  |  |  |  |  |  |  |  |  | 62175 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mandatorily redeemable preferred equity | - | 7064659 |  |  |  |  | (7064659) |  |  |  |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 1849707 | 43165827 | (24786) | - | - | (1798446) | (7064659) | - | - |  |  | 36127643 |
| Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |  |
| Members' equity (Stockholders' Equity) |  |  |  |  |  |  |  |  |  |  |  |  |
| Common stock (Par Value $0.01) |  |  |  |  | 30000 |  |  | 12000 | 4500 |  | 3255 | 49755 |
| Additional paid-in capital |  |  |  | 1878664 | 14970000 | (4250000) |  | 5988000 | 2245500 | (157500) | 1624245 | 22298909 |
| Retained earnings | (771) | 1903450 | (24786) | (1878664) |  |  |  | (6000000) |  |  | (1627500) | (7628271) |
| Total members' equity (stockholders' equity) | (771) | 1903450 | (24786) | - | 15000000 | (4250000) | - | - | 2250000 | (157500) | - | 14720393 |
| Noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |
| Total liabilities, preferred equity, and members' equity (stockholders' equity) | $1848936 | $45069277 | $(49572) | $- | $15000000 | $(6048446) | $(7064659) | $- | $2250000 | $(157500) | $- | $50848036 |

---

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**JOSS REALTY REIT, INC.**

**Financial Statements**

**As of April 15, 2025 (inception)**

[**Table of Contents**](#toc)

**JOSS REALTY REIT, INC.**

**Table of Contents**

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm:](#b_001) | F-4 |
| [Balance Sheet (inception)](#b_002) | F-5 |
| [Statement of Operations (inception)](#b_003) | F-6 |
| [Changes in Stockholder's Deficit (inception)](#b_004) | F-7 |
| [Statement of Cash Flows (inception)](#b_005) | F-8 |
| [Notes to Financial Statements](#b_006) | F-9 – F-11 |

---

[**Table of Contents**](#toc)

**Report of Independent Registered Public Accounting Firm**

To the Shareholder

JOSS Realty REIT, Inc.

***Opinion on the Financial Statements***

We have audited the accompanying balance sheet of JOSS Realty REIT, Inc. (the "Company") as of April 15, 2025 (date of inception), and the related statements of operations, changes in stockholder's deficit, and cash flows as of April 15, 2025 (date of inception), and 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 April 15, 2025 (date of inception), and the results of its operations and its cash flows as of April 15, 2025 (date of inception) in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the entity's management. Our responsibility is to express an opinion on these financial statements based on our audit. 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 audit 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 audit 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 audit 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 entity's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit 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 audit 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 audit provides a reasonable basis for our opinion.

/s/ CohnReznick LLP

We have served as auditor of an affiliate of the Company since 2024.

New York, New York

May 12, 2025

[**Table of Contents**](#toc)

**JOSS REALTY REIT, INC.**

**BALANCE SHEET**

---

| | |
|:---|:---|
|  | **April 15,<br> 2025<br> (inception)** |
| **Assets** |  |
| **Total Assets** | $- |
| **Liabilities and stockholder's equity** |  |
| &nbsp;&nbsp;&nbsp;Accrued formation costs | 771 |
| Total liabilities | 771 |
| **Commitments and Contingencies (Note 4)** |  |
| **Stockholder's deficit** |  |
| Common stock, $0.01 par value; 100,000,000 shares authorized; 100 shares issued and outstanding as of inception |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 10 |
| &nbsp;&nbsp;&nbsp;Stock subscription receivable | (10) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (771) |
| **Total stockholder's deficit** | (771) |
| **Total liabilities and stockholder's deficit** | $- |

---

*The accompanying notes are an integral part of these financial statements.*

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**JOSS REALTY REIT, INC.**

**STATEMENT OF OPERATIONS**

---

| | |
|:---|:---|
|  | **April 15,<br> 2025**<br>**(inception)** |
| Formation costs | $771 |
| **Net loss** | $**(771)** |
| Weighted average shares outstanding, basic and diluted | 100 |
| **Basic and diluted net loss per share** | $(7.71) |

---

*The accompanying notes are an integral part of these financial statements.*

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**JOSS REALTY REIT, INC.**

**STATEMENT OF CHANGES IN STOCKHOLDER'S DEFICIT**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid in**<br>**Capital** | **Stock<br> Subscription**<br>**Receivable** | **Accumulated**<br>**Deficit** | **Stockholder's**<br>**Deficit** |
| April 15, 2025 (inception) |  | $- | $- | $- | $- | $- |
| Net loss |  |  |  |  | (771) | (771) |
| Issuance of common stock | 100 | - | 10 | (10) | - | - |
| **Inception** | 100 | $- | $10 | $(10) | $(771) | $(771) |

---

*The accompanying notes are an integral part of these financial statements.*

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**JOSS REALTY REIT, INC.**

**STATEMENT OF CASH FLOWS**

---

| | |
|:---|:---|
|  | **April 15,<br> 2025<br> (inception)** |
| **Cash Flows from Operating Activities** |  |
| Net loss | $(771) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |
| &nbsp;&nbsp;&nbsp;Accrued formation costs | 771 |
| &nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | **-** |
| **Net Change in Cash** |  |
| Cash - beginning of period | - |
| **Cash - end of period** | $- |

---

*The accompanying notes are an integral part of these financial statements.*

[**Table of Contents**](#toc)

**JOSS REALTY REIT, INC.**

**NOTES TO FINANCIAL STATEMENTS**

**Note 1 — Organization, Business Operation and Going Concern**

JOSS Realty REIT, Inc. (the "Company") is a Maryland corporation formed on April 15, 2025 (inception). The Company has not yet commenced operations. Upon the completion of the Formation Transactions, as described below, the Company expects to conduct its business through a traditional UPREIT structure in which substantially all its assets are owned by subsidiaries of JOSS Realty Holdings, LP (the "Operating Partnership"). The Company will be the general partner of the Operating Partnership. Any activity of the Company relates to the Company's formation. The Company will not generate any operating revenues until after the completion of the initial public offering and the completion of the Formation Transactions, at the earliest.

Prior to the completion of the proposed initial public offering and the completion of the Formation Transactions, each of the properties that are expected to be contributed to the Operating Partnership are owned by JOSS Realty Partners B, LLC. While JOSS Realty Partners B, LLC owns and controls other certain properties, the properties included in the Formation Transactions, referred to as its initial portfolio, are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook Road (Reading, Massachusetts)

&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road (Jenkintown, Pennsylvania)

The Formation Transactions further include JOSS Realty Partners B, LLC's investment in Napa Square (Napa, California), for which it owns 26.6% of the outstanding equity through a Tenancy in Common Agreement (the "TIC" or the "TIC Agreement").

*The Proposed Initial Public Offering*

The Company is planning to complete an offering (the "Proposed Initial Public Offering") whereby the ownership interests in the properties outlined in the initial portfolio will be contributed to the Operating Partnership in exchange for ownership interests in the Operating Partnership.

*The Operating Partnership*

Following the completion of the Proposed Initial Public Offering and the Formation Transactions, as outlined below, substantially all the Company's assets will be held by, and its operations will be conducted through, the Operating Partnership. The Company will be the sole general partner of the Operating Partnership. As of the date of these financial statements, the limited partnership agreement between the Company and the Operating Partnership, which governs the Operating Partnership, has not yet been executed.

*Formation Transactions*

Each property that is controlled by JOSS Realty Partners B, LLC within the initial portfolio will be owned by the Operating Partnership upon the completion of the Offering and the Formation Transactions. These properties are currently owned, directly or indirectly by partnerships, limited liability companies or corporations in which JOSS Realty Partners B, LLC and its affiliates, certain of the Company's other directors and executive officers and their affiliates, and/or other third parties own a direct or indirect interest. The Company refers to these partnerships, limited liability companies and corporations collectively as the "Ownership Entities." The financial statements are prepared under the assumption that prior to or contemporaneously with completing the Offering and related Formation Transactions, the current owners of the following will enter into contribution agreements with the Operating Partnership, pursuant to which they will contribute their interests in the Ownership Entities to the Company or the Operating Partnership in exchange for partnership units of the Operating Partnership:

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook Road (Reading, Massachusetts)

&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road (Jenkintown, Pennsylvania)

&nbsp;&nbsp;&nbsp;&nbsp;c. Napa Square (Napa, California)

The amount of cash and Operating Partnership Units that prior investors will receive in exchange for the properties was determined by management and not through arm's length negotiations with an independent third party.

Upon the completion of the Formation Transactions, the Company will indirectly own the equity interests in the initial portfolio.

[**Table of Contents**](#toc)

*Going Concern Consideration*

As of inception, the Company did not have any operations. Furthermore, the Company did not have any cash or working capital. These conditions raise substantial doubt about the Company's ability to continue as a going concern one year from the issuance date of the financial statements. Management plans to address this uncertainty through a Proposed Initial Public Offering. There is no assurance that the Company's plans to complete the Proposed Initial Public Offering will be successful. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Note 2 — Summary of Significant Accounting Policies**

*Basis of Presentation*

The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America ("US GAAP") and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC").

*Emerging Growth Company*

The Company intends to be an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012 (the "JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

*Use of Estimates*

The preparation of the financial statements in conformity with U.S. GAAP requires the Company's 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 expenses during the reporting periods. Actual results may differ materially and adversely from these estimates. The Company is not aware of any significant estimates that required management to exercise significant judgment.

*Concentration of Credit Risk*

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not incurred any loss due to this concentration risk since inception.

*Segments*

The Company's chief operating decision maker ("CODM"), the Chief Executive Officer, manages the Company's business activities as a single operating and reportable segment. Accordingly, the Company's CODM uses net income/loss to measure the Company's single segment's performance and allocate resources. Further, the CODM reviews and utilizes functional expenses to manage the Company's operations. The Company has no operations as of the date of inception.

[**Table of Contents**](#toc)

*Income Taxes*

The Company intends to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the "Code") under the Internal Revenue Code of 1986, as amended (the "Code") beginning with its taxable year ending December 31, 2025. As a REIT, the Company generally will not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income for each tax year to its stockholders. REITs are subject to a number of organizational and operational requirements.

If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal income tax on its taxable income at regular corporate rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property and to federal income and excise taxes on its undistributed income.

*Recently Issued Accounting Standards*

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*. This standard improves the disclosures about a public business entity's expenses and addresses requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for public entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact of adopting this standard on its financial statements and related disclosures.

Management does not believe that any additional recently issued, but not yet effective, accounting standards, if currently adopted, would have a material impact on the Company's financial statements.

**Note 3 — Commitments and Contingencies**

The Company is not a party to any material legal proceedings and is not aware of any pending or threatened claims. The Company does not have any commitments as of inception.

**Note 4 — Related Party Transactions**

In April 2025, the Company issued 100 shares of the Company's common stock for an aggregate purchase price of $10 per share to Larry Botel, the Company's Chief Executive Officer. Such shares on the date of issuance were duly and validly authorized and issued. Each outstanding share of stock has voting power equal to one vote on each matter submitted at any stockholder's meeting. As of the date of these financial statements, no consideration has been received from Mr. Botel for the issuance of these shares. Accordingly, the Company has recorded a "Stock subscription receivable" within the stockholder's equity section on its balance sheet as of inception.

**Note 5 — Subsequent Events**

The Company evaluated subsequent events and transactions that occurred after inception to May 12, 2025, the date that the financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

[**Table of Contents**](#toc)

**JOSS REALTY**

**Combined Consolidated Financial Statements**

**As of and for the years ended December 31, 2024 and 2023**

[**Table of Contents**](#toc)

**JOSS REALTY**

**Table of Contents**

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm](#c_001a) | F-14 |
| [Combined Consolidated Balance Sheets](#c_001) | F-15 |
| [Combined Consolidated Statements of Operations](#c_002) | F-16 |
| [Combined Consolidated Statements of Changes in Members' Equity](#c_003) | F-17 |
| [Combined Consolidated Statements of Cash Flows](#c_004) | F-18 |
| [Notes to Combined Consolidated Financial Statements](#c_005) | F-19 – F-31 |

---

[**Table of Contents**](#toc)

*Report of Independent Registered Public Accounting Firm*

To the Managing Member

JOSS Realty

***Opinion on the Financial Statements***

We have audited the accompanying combined consolidated balance sheets of JOSS Realty (the "Predecessor") as of December 31, 2024 and 2023, and the related combined consolidated statements of operations, changes in members' equity, and cash flows for years then ended, and the related notes and financial statement schedule III Real Estate and Accumulated Depreciation (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Predecessor as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

***Substantial Doubt About the Predecessor's Ability to Continue as a Going Concern***

The accompanying financial statements have been prepared assuming that the Predecessor will continue as a going concern. As discussed in Note 1 to the financial statements, the Predecessor has suffered recurring losses from operations. In addition, certain of the Predecessor's debt matures in less than 12 months from the date the financial statements are available to be issued. Accordingly, substantial doubt exists about the Predecessor's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

***Basis for Opinion***

These financial statements are the responsibility of the entity's management. Our responsibility is to express an opinion on these 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 Predecessor 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 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Predecessor 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 entity'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/ CohnReznick LLP

We have served as the Predecessor's auditor since 2024.

New York, New York

July 14, 2025

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**JOSS REALTY**

**COMBINED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **ASSETS** |  |  |
| Investments in real estate: |  |  |
| &nbsp;&nbsp;&nbsp;Land and improvements | $5277196 | $5277196 |
| &nbsp;&nbsp;&nbsp;Buildings and improvements | 31476294 | 31015870 |
| &nbsp;&nbsp;&nbsp;Tenant improvements | 6931410 | 4618155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments in real estate | 43684900 | 40911221 |
| &nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | (11970507) | (10783723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in real estate, net | 31714393 | 30127498 |
| Cash | 1204717 | 1889848 |
| Restricted cash | 935218 | 838009 |
| Tenant receivables | 134225 | 106427 |
| Deferred rent receivables | 2468577 | 2125174 |
| Prepaid expenses and other assets | 1330588 | 722290 |
| Equity method investment | 9110917 | 9216903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $46898635 | $45026149 |
| **LIABILITIES, PREFERRED EQUITY AND MEMBERS' EQUITY** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Mortgage notes payable, net | $33693123 | $34166234 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 2386131 | 1471200 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 78440 | 73635 |
| &nbsp;&nbsp;&nbsp;Mandatorily redeemable preferred equity | 6802348 | 5220000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 42960042 | 40931069 |
| Commitments and contingencies (Note 8) |  |  |
| Members' equity |  |  |
| Total members' equity | 3938593 | 4095080 |
| Total liabilities, preferred equity, and members' equity | $46898635 | $45026149 |

---

*The accompanying notes are an integral part of these combined consolidated financial statements.*

[**Table of Contents**](#toc)

**JOSS REALTY**

**COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **For the <br> years ended <br> December 31,** | **For the <br> years ended <br> December 31,** |
|  | **2024** | **2023** |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues | $6371871 | $6733419 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Property operating expenses | 2194158 | 1864943 |
| &nbsp;&nbsp;&nbsp;Real estate taxes | 588581 | 780297 |
| &nbsp;&nbsp;&nbsp;Repairs and maintenance | 413681 | 427283 |
| &nbsp;&nbsp;&nbsp;Management fees | 141648 | 169094 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 246917 | 283689 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1385059 | 2057936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 4970044 | 5583242 |
| &nbsp;&nbsp;&nbsp;Income from operations | 1401827 | 1150177 |
| &nbsp;&nbsp;&nbsp;Other expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 2640199 | 1916515 |
| &nbsp;&nbsp;&nbsp;Loss on equity method investment | 105985 | 116088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses | 2746184 | 2032603 |
| &nbsp;&nbsp;&nbsp;Net loss | $(1344357) | $(882426) |

---

*The accompanying notes are an integral part of these combined consolidated financial statements.*

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**JOSS REALTY**

**COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' EQUITY**

---

| | |
|:---|:---|
|  | **Members' Equity** |
| **Balance as of December 31, 2022** | $4977506 |
| &nbsp;&nbsp;&nbsp;Net loss | (882426) |
| **Balance as of December 31, 2023** | 4095080 |
| &nbsp;&nbsp;&nbsp;Net loss | (1344357) |
| &nbsp;&nbsp;&nbsp;Contributions | 1187870 |
| **Balance as of December 31, 2024** | $3938593 |

---

*The accompanying notes are an integral part of these combined consolidated financial statements.*

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**JOSS REALTY**

**COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the <br> years ended <br> December 31,** | **For the <br> years ended <br> December 31,** |
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(1344357) | $(882426) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1385059 | 2057936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on equity method investments | 105984 | 116088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncash interest on mandatorily redeemable preferred equity | 582348 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 272727 | 16250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in current assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant receivables | (27798) | (4404) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred rent receivables | (343403) | 93688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (806573) | (347466) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 914931 | 811992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 4805 | (18017) |
| Net cash provided by operating activities | 743723 | 1843641 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Investments in real estate | (2773677) | (354493) |
| Net cash used in investing activities | (2773677) | (354493) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Repayment of mortgage notes payable | (745838) | (613810) |
| &nbsp;&nbsp;&nbsp;Issuance of mandatorily redeemable preferred equity | 1000000 |  |
| &nbsp;&nbsp;&nbsp;Contributions of capital | 1187870 | - |
| Net cash provided by (used in) financing activities | 1442032 | (613810) |
| Increase (decrease) in cash and restricted cash | (587922) | 875338 |
| Cash and restricted cash, beginning of year | 2727857 | 1852519 |
| Cash and restricted cash, end of year | $2139935 | $2727857 |
| **Supplemental disclosures of cash flow information:** |  |  |
| Cash paid for interest | $1844454 | $1334340 |
| Cash paid for taxes | $- | $- |

---

*The accompanying notes are an integral part of these combined consolidated financial statements.*

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**JOSS REALTY**

**NOTES TO COMBINED CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1: Organization and Basis of Presentation, Combination, and Consolidation**

As used herein, Joss Realty (the "Company") refers to certain properties controlled by JOSS Realty Partners B, LLC and its affiliates. While JOSS Realty Partners B, LLC owns and controls other certain properties, the properties included within these financial statements are presented on a combined consolidated basis. The combined consolidated financial statements include the accounts and operations of the following entities and their respective properties:

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook Road (Reading, Massachusetts)

&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road (Jenkintown, Pennsylvania)

The combined consolidated financial statements further include the Company's investment in Napa Square (Napa, California), for which it owns 26.6% of the outstanding equity through a Tenancy in Common Agreement (the "TIC" or the "TIC Agreement").

The Company's primary investment objectives are to increase the cash flow and value of its portfolio of office properties thereby increasing the value of its equity for its Members. To accomplish these goals, the Company intends to focus on its investment strategy. The Company's investment strategy, which it has been executing since 2005, is to acquire and improve under-valued and compelling office properties in the economically diverse Metropolitan Statistical Areas ("MSA's") of the Northeast, Mid-Atlantic, Southeast, and the West Coast.

The properties and equity method investment included within the definition of the Company, as discussed above, has been identified as the Predecessor to JOSS Realty REIT, Inc. in accordance with the requirements set forth by the Securities and Exchange Commission (the "SEC"). JOSS Realty REIT, Inc. plans to complete an initial public offering (the "Offering"). In connection with this Offering, certain formation transactions (the "Formation Transactions") will be executed (see Note 2). Upon completion of the Formation Transactions and the Offering, the existing property investors' ownership interests in each property will be contributed to JOSS Realty Holdings, LP (the "Operating Partnership") in exchange for limited partner interests in the Operating Partnership. JOSS Realty REIT, Inc. will be the sole general partner of the Operating Partnership. Substantially all of JOSS Realty REIT, Inc.'s operations will be conducted through its Operating Partnership. As a result, the new offering investors and the original investors collectively will own the Operating Partnership. See additional disclosure regarding the offering and formation transactions in Note 3 of these combined consolidated financial statements.

The Company prepared the combined consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the requirements of the SEC.

The combined consolidated financial statements have been prepared from each company's respective historical accounting records and are presented to include the historical financial position, results of operations, and cash flows applicable to the Company under U.S. GAAP. All material balances and transactions between the combined and consolidated entities of the Company have been eliminated.

*Liquidity and Operations*

The Company's combined consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business.

The Company incurred net losses of $1,344,357 and $882,426 for the years ended December 31, 2024 and 2023, respectively. Additionally, under its current debt agreements, it is expected that the Company will have to make payments of $8,121,496 through July 2026. The Company's ability to fund its operations is dependent upon management's plans, which include raising capital through issuances of debt and equity securities and extending existing debt agreements. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. A failure to raise sufficient financing and/or extend existing debt agreements, among other factors, will adversely impact the Company's ability to meet its financial obligations as they become due and payable and to achieve its intended business objectives. Furthermore, there can be no assurance that JOSS Realty B, LLC will contribute incremental capital to the Company to fund its operations. Accordingly, based on the considerations discussed above, management has concluded there is substantial doubt as to the Company's ability to continue as a going concern within one year after the date the consolidated financial statements are issued.

The combined consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities should the Company be unable to continue as a going concern.

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**Note 2: Structure of the Company**

*The Company's Initial Portfolio*

The Company owns 100% of the interests in two multi-tenant office properties and a 26.6% ownership in one multi-tenant office property, all three of which are referred to collectively as its "initial portfolio." These properties are as follows:

55 Walkers Brook, Reading, MA ("55 Walkers Brook")- The Company acquired 55 Walkers Brook in December 2018 for $32.25 million.

165 Township Line Road, Jenkintown, PA ("165 Township Line Road")- The Company acquired 165 Township Line Road in October 2017 for $12.1 million.

1401-1485 1<sup>st</sup> Street, Napa, CA ("Napa Square")- The Company acquired a 26.6% equity interest in Napa Square in April 2016 for $11.0 million, inclusive of $5.0 million in cash and the Company's proportionate share of a term loan agreement for $6.0 million. See Note 6 for further information.

*The Proposed Offering*

The Company is planning to complete an offering (the "Proposed Offering") whereby the Company's ownership interests in the properties outlined in its initial portfolio will be contributed to a Delaware limited partnership in exchange for ownership interests in the limited partnership (the "Operating Partnership").

*The Operating Partnership*

Following the completion of the proposed Offering and the Formation Transactions, as outlined below, substantially all the Company's assets will be held by, and its operations will be conducted through, the Operating Partnership. Joss Realty REIT, Inc., a related party, will be the sole general partner of the Operating Partnership.

*Formation Transactions*

Each property that is owned by the Company will be owned by the Operating Partnership upon the completion of the Offering and the Formation Transactions. These properties are currently owned, directly or indirectly by partnerships, limited liability companies or corporations in which JOSS Realty Partners B, LLP and its affiliates, certain of the Company's other directors and executive officers and their affiliates, and/or other third parties own a direct or indirect interest. The Company refers to these partnerships, limited liability companies and corporations collectively as the "Ownership Entities." The combined consolidated financial statements are prepared under the assumption that prior to or contemporaneously with completing the Offering and related Formation Transactions described in Note 3 to the combined consolidated financial statements, the current owners of the following will enter into contribution agreements with the Operating Partnership, pursuant to which they will contribute their interests in the Ownership Entities to the Company or the Operating Partnership in exchange for partnership units of the Operating Partnership:

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook Road (Reading, Massachusetts)

&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road (Jenkintown, Pennsylvania)

&nbsp;&nbsp;&nbsp;&nbsp;c. Napa Square (Napa, California)

The amount of cash and Operating Partnership Units that prior investors will receive in exchange for the properties was determined by management and not through arm's length negotiations with an independent third party. In determining the fair market value of its initial portfolio, management undertook a diligence and underwriting process that took into account, among other factors, market capitalization rates, net operating income, landlord obligations to fund future capital expenditures, lease duration, functionality and ability to release should a tenant not renew its lease, tenant creditworthiness and discount rates based on tenant creditworthiness, property location, property age, comparable sales information and capitalization rates for properties leased to tenants with similar credit profiles and lease durations, tenant operating performance and the fact that brokerage commissions would not be payable in connection with the formation transactions. No single factor was given greater weight than any other in valuing the Company's initial portfolio. The value attributable to its initial portfolio does not necessarily bear any relationship to the value of any particular property within that portfolio. Furthermore, the Company did not obtain any third-party property appraisals for the properties in the initial portfolio or any other independent third-party valuations or fairness opinions in connection with the formation transactions.

Upon the completion of the Formation Transactions, JOSS Realty REIT, Inc. will indirectly own the equity interests in the Company's initial portfolio.

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**Note 3: Summary of Significant Accounting Policies**

*Use of Estimates*

Management is required to make estimates and assumptions in the preparation of the combined consolidated financial statements in conformity with U.S. GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the combined consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from management's estimates. Significant estimates include revenue recognition, the various useful lives of depreciable and amortizable assets, the evaluation of the Company's equity method investment for impairment, the evaluation of the Company's investment properties for impairment, and the purchase price allocation relating to acquisitions of investment properties.

*Investment Properties*

The Company records investment properties and related intangibles at cost less accumulated depreciation and amortization. Investment properties include both acquired and constructed assets. Improvements and major repairs and maintenance are capitalized when the repair and maintenance substantially extend the useful life, increases capacity, or improves the efficiency of the asset. All other repair and maintenance costs are expensed as incurred. The Company capitalizes interest on projects during periods of construction until the projects reach the completion point that corresponds with their intended purpose. The Company did not capitalize any interest during the years ended December 31, 2024 and 2023.

The Company accounts for investment properties that it has acquired using the asset acquisition method. The Company allocates the purchase price of acquisitions to the various components of the acquisition based upon the fair value of each component which may be derived from various observable or unobservable inputs and assumptions. Also, the Company may utilize third-party valuation specialists. These components typically include buildings, land, and any intangible assets related to in-place leases the Company determines to exist.

The Company records depreciation on buildings and building improvements utilizing the straight-line method over the estimated useful life of the asset. The Company reviews depreciable lives of investment properties periodically and makes adjustments to reflect a shorter economic life, when necessary. Tenant improvements are amortized utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. The useful lives of the Company's assets ranges based upon the type of asset, as outlined below:

---

| | |
|:---|:---|
|  | **Useful life** |
| Buildings | 23 to 40 years |
| Building improvements | 1 to 35 years |
| Tenant improvements | &nbsp;&nbsp;Shorter of lease term or occupancy term of tenant |

---

The Company reviews investment properties for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of investment properties may not be recoverable. These circumstances include, but are not limited to, declines in the property's cash flows, occupancy, and fair market value. The Company measures any impairment of investment property when the estimated undiscounted operating income before depreciation and amortization, plus its residual value, is less than the carrying value of the property. To the extent impairment has occurred, the Company charges to income the excess of carrying value of the property over its estimated fair value. The Company estimates fair value using unobservable data such as operating income, estimated capitalization rates, or multiples, leasing prospects, and local market information. The Company may decide to sell properties that are held for use and the sale prices of these properties may differ from their carrying values. No properties were sold and no impairments were recognized during the years ended December 31, 2024 and 2023.

Depreciation expense for the years ended December 31, 2024 and 2023 was $1,385,059 and $2,057,936, respectively.

*Cash*

The Company maintains its cash in bank deposit accounts. Cash is held by financial institutions and are federally insured up to certain limits. At times, the Company's cash balance exceeds the federally insured limits. The Company's management believes that the Company is not exposed to significant credit risk due to the financial position of the financial institutions in which the Company's cash is held.

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*Restricted Cash*

Restricted cash primarily consists of amounts held by mortgage lenders and the Company to provide for real estate tax expenditures, tenant improvements, capital expenditures and security deposits, as well as escrow accounts related to principal and interest payments on bonds.

*Equity-Method Investments*

The Company holds a 26.6% undivided interest in the Napa Square property pursuant to the TIC Agreement. Per the TIC Agreement, all tenants-in-common hold an individual, undivided ownership interest in the property. Undivided ownership interests are arrangements in which two or more parties jointly own the property and the title is held individually to the extent of each party's interest. Pursuant to Accounting Standards Codification ("ASC") Topic 810, *Consolidation,* ("ASC 810") a variable interest entity is a legal entity subject to consolidation according to the provisions of ASC 810. Management concluded that the TIC itself is not a legal entity and the Company's undivided interest represents an interest in the Napa Square property itself, not in an entity that owns the Property. Based upon the nature of such interests, the Company concluded that consolidation guidance is not appropriate, as consolidation guidance applies to the consolidation of separate legal entities. Rather, the Company determined that the equity method of accounting is the appropriate method of accounting for its tenant-in-common interests based on the guidance in ASC Topic 970, *Real Estate.*

Pursuant to the TIC agreement, the Company has the ability to exercise significant influence, but not control the property related to the TIC. Accordingly, the Company's pro rata share of the applicable entity's earnings or losses is included in its combined consolidated statements of operations within the caption "Loss on equity method investment."

The Company initially records its investments based on either the carrying value for properties contributed or the cash invested.

For the purposes of presentation in its combined consolidated statements of cash flows, the Company follows the "cumulative earnings" approach for classification of distributions from joint ventures. Under the cumulative earnings approach, all distributions received by the investor are deemed to be returns on the investment (and thus classified as operating cash flows), unless the cumulative distributions exceed the cumulative equity in earnings recognized by the investor. The excess distributions are deemed to be returns of the investment and are classified as investing cash flows.

The Company evaluates its equity-method investments for impairment whenever events or changes in circumstances indicate that the carrying value of its investments may exceed the fair value. If it is determined that a decline in the fair value of its investments is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. Determining fair value involves significant judgment. The Company's estimates consider available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions, and other relevant factors. The Company did not record any impairments related to its equity-method investments for the years ended December 31, 2024 and 2023.

*Leasing Commissions*

Leasing commissions represent payments made to third parties for services directly relating to securing lease agreements. Initial incremental costs that would not have been incurred if the lease had not been obtained are capitalized and amortized. These leasing commissions are recorded as a component of Prepaid expenses and other current assets within the Company's combined consolidated balance sheets. Total amortization expense for leasing commission for the years ended December 31, 2024 and 2023 were $25,885 and $105,670, respectively.

*Revenue Recognition*

As a lessor, the Company's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. Under ASC 842, the lease of space is considered a lease component while the common area maintenance, property taxes and other recoverable costs billings are considered non lease components, which fall under revenue recognition guidance in accordance with ASC Topic 606, *Revenue Recognition* ("ASC 606"). However, the Company determined that its tenant leases met the criteria to apply the practical expedient provided by ASC 842 to recognize the lease and non-lease components together as one single component. This conclusion was based on the consideration that (1) the timing and pattern of transfer of the non-lease components and associated lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease. As the lease of properties is the predominant component of the Company's leasing arrangements, it accounted for all lease and non-lease components as one-single component under ASC 842.

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The Company recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. Recognizing income on a straight-line basis requires the Company to calculate the total non-contingent rent containing specified rental increases over the life of the lease and to recognize the revenue evenly over that life. This method results in rental income in the early years of a lease being higher than actual cash received, creating a straight-line rent receivable asset included in the combined consolidated balance sheets within the caption "Deferred rent receivables". At some point during the lease, depending on its terms, the cash rent payments eventually exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. The Company assesses the collectability of straight-line rent in accordance with the applicable accounting standards and reserve policy. If the lessee becomes delinquent in rent owed under the terms of the lease, the Company may provide a reserve against the recognized straight-line rent receivable asset for a portion, up to its full value, that the Company estimates may not be recoverable.

The tenant is considered to have taken physical possession or have control of the physical use of the leased asset when the tenant obtains access to the leased property. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to:

● whether the lease stipulates how a tenant improvement allowance may be spent;

● whether the amount of a tenant improvement allowance is in excess of market rates;

● whether the tenant or landlord retains legal title to the improvements at the end of the lease term;

● whether the tenant improvements are unique to the tenant or general-purpose in nature; and

● whether the tenant improvements are expected to have any residual value at the end of the lease.

Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Company is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion and control in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions.

*Mandatorily Redeemable Preferred Equity*

The Company has classified the mandatorily redeemable preferred equity as a liability in accordance with ASC Topic 480 "Distinguishing Liabilities from Equity." This is because under the terms of the agreements, neither the issuer nor the holder can have the unilateral discretion to avoid redemption except by both parties' consent (i.e., they mutually agree to modify the terms). While the redeemable instruments are redeemable at the option of the issuer, there is a specific date that would require redemption by the holder. Furthermore, the amount that is to be redeemed to each holder is based upon a formula and varies. As such, these instruments are carried at the amount of cash that would be paid under the conditions specified within each contract if the mandatorily redeemable preferred equity were repurchased or redeemed as of the reporting date. Additionally, the related dividend payments made by the Company associated with these mandatorily redeemable preferred instruments are treated as a component of interest expense in the accompanying consolidated statements of operations.

*Debt Issuance Costs*

Debt issuance costs related to debt instruments, excluding line of credit arrangements, are deferred, recorded as a reduction of the related debt liability, and amortized to interest expense over the remaining term of the related debt liability utilizing the interest method.

Refinancings of convertible and promissory notes previously issued by the Company are evaluated under ASC 470-50, *Modifications and Extinguishments*. A refinancing is accounted for as an extinguishment if the present value of cash flows under the new terms differs by at least 10% from the original terms or if a substantive conversion option is added or eliminated. When an extinguishment occurs, the original debt is derecognized and the new debt is recorded at fair value, recognizing any gain or loss in earnings. If not extinguished, a refinancing is treated as a modification with no gain or loss recognition. If the Company were to experience multiple changes to the same debt within a one-year period, and the first of those changes were determined to be a modification, the Company would then evaluate the changes within the one-year period on a cumulative basis.

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*Segment Reporting*

We currently operate as one segment, which is also our sole reportable segment. Our chief operating decision maker ("CODM") is the Chief Executive Officer of JOSS Realty Partners B, LLC. We generate our revenue primarily from the leasing of the Company's properties to tenants. The CODM evaluates performance and allocates resources based on combined consolidated net income (loss), which is also reported as combined consolidated net income (loss) on our combined consolidated statements of operations. Our combined consolidated net income (loss) is primarily derived through the difference in rental revenue, property operating expenses, real estate taxes, repairs and maintenance, management fees, depreciation and amortization, and interest expense. Accordingly, property operating expenses, real estate taxes, repairs and maintenance, management fees, depreciation and amortization, and interest expense, as reported on our combined consolidated statements of operations, represent the Company's most significant segment expenses. Additionally, the measure of segment assets is reflected on the combined consolidated balance sheets as total assets.

The CODM uses combined consolidated net income (loss) to make key operating decisions, such as identifying attractive real estate investment opportunities, evaluating the performance of the Company's real estate assets, and deciding on the sources of financing.

*Fair Value Measurement*

In connection with the acquisition of an investment property, the Company measures and discloses the fair value of nonfinancial and financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy:

● Level 1—quoted prices for identical instruments in active markets;

● Level 2—quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

● Level 3—fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The Company measures fair value using a set of standardized procedures that are outlined herein for all assets and liabilities which are required to be measured at fair value. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1. In instances where a market price is available, but the instrument is in an inactive or over-the-counter market, the Company consistently applies the dealer (market maker) pricing estimate and classifies the asset or liability in Level 2. If quoted market prices or inputs are not available, fair value measurements are based upon valuation models that utilize current market or independently sourced market inputs, such as interest rates, option volatilities, credit spreads and/or market capitalization rates. Items valued using such internally generated valuation techniques are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified in either Level 2 or Level 3 even though there may be some significant inputs that are readily observable. Internal fair value models and techniques used by the Company include discounted cash flow valuation models.

*Income Taxes*

The entities included within these combined consolidated financial statements are taxed as partnerships for United States income tax purposes for the years ended December 31, 2024 and 2023, thus the income or loss of the Company flows to the members. As partnerships, these legal entities are not subject to tax and any tax liability is the responsibility of the members of the Company. Accordingly, no provision for federal and state income taxes is included in the combined consolidated financial statements for the years ended December 31, 2024 and 2023.

The Company follows ASC Subtopic 740-10, *Accounting for Uncertainty in Income Taxes*, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. As of December 31, 2024, the Company had no material uncertain tax positions to be accounted for in the financial statements. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. The Company's income tax returns for three years will be subject to examination by tax authorities and may change upon examination.

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*Earnings (Loss) Per Share*

Basic and diluted earnings per share would be computed by dividing net income (loss) attributable to the Members for the years ended December 31, 2024 and 2023 by the weighted-average number of shares of common stock or potential common stock outstanding for those periods. There were no shares of common stock or potential common stock outstanding for the years ended December 31, 2024 and 2023 for the combined consolidated entity. Therefore, no earnings (loss) per share information has been presented for any periods.

*Recently Issued Accounting Pronouncements*

In August 2023, the FASB issued ASU 2023-05, *Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement*. The standard addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The amendments in this update are effective to all joint venture formations with a formation date on or after January 1, 2025. The Company is evaluating the impact of adopting this standard on its financial statements and related disclosures.

In December 2023, the FASB issued Accounting Standards Update 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The standard requires entities to disclose additional categories about federal, state and foreign income taxes in the effective tax rate reconciliation as well as provide annual income taxes paid disaggregated by federal, state and foreign taxes. The standard is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the impact of adopting this standard on its financial statements and related disclosures.

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*. This standard improves the disclosures about a public business entity's expenses and addresses requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for public entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact of adopting this standard on its financial statements and related disclosures.

*Recently Adopted Accounting Pronouncements*

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, *Measurement of Credit Losses on Financial Instruments* ("ASU 2016-13"). ASU 2016-13 is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments held by financial institutions and other organizations. The amendments in ASU 2016-13 eliminate the "probable" initial threshold for recognition of credit losses in current accounting guidance and, instead, reflect an entity's current estimate of all expected credit losses. Previously, when credit losses were measured under current accounting guidance, an entity generally only considered past events and current conditions in measuring the incurred loss. The amendments in ASU 2016-13 broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss. A reporting entity is required to apply the amendments in ASU 2016-13 using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Adoption of ASU 2016-13 on January 1, 2023, was not material to the Company's combined consolidated financial position and results of operations.

In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure*. The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments. The Company adopted ASU No. 2023-07 beginning in 2024. Upon adoption, the guidance was applied retrospectively to all prior periods presented in the financial statements.

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**Note 4: Cash and Restricted Cash**

The following table presents the Company's cash and restricted cash:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Cash | $1204717 | $1889848 |
| Restricted cash | 935218 | 838009 |
| &nbsp;&nbsp;&nbsp;Total | $2139935 | $2727857 |

---

**Note 5: Leases as a Lessor** 

As of December 31, 2024, the Company had leased 78 properties to tenant/operators at each of its properties. As of December 31, 2023 the company leased 74 properties.

As of December 31, 2024, total future minimum rental revenues for the Company's tenants are as follows:

---

| | |
|:---|:---|
| **Year ending December 31,** | |
| &nbsp;&nbsp;&nbsp;2025 | $5678691 |
| &nbsp;&nbsp;&nbsp;2026 | 5156937 |
| &nbsp;&nbsp;&nbsp;2027 | 4951947 |
| &nbsp;&nbsp;&nbsp;2028 | 4118546 |
| &nbsp;&nbsp;&nbsp;2029 | 3269274 |
| Thereafter | 8335152 |
| Total | $31510547 |

---

**Note 6: Mortgage Notes Payable, Net**

Mortgage notes payable, net consists of:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Mortgage notes payable | $33870679 | $34343790 |
| Deferred financing costs | (177556) | (177556) |
| &nbsp;&nbsp;&nbsp;Mortgage notes payable, net | $33693123 | $34166234 |

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The mortgage notes payable at each of the Company's properties is further outlined below:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| 55 Walkers Brook Road (Reading, Massachusetts) | $20075088 | $20301647 |
| 165 Township Line Road (Jenkintown, Pennsylvania) | 7863791 | 8110343 |
| Napa Square (Napa, California) | 5931800 | 5931800 |
|  | $33870679 | $34343790 |

---

---

| | |
|:---|:---|
| **Year ending December 31,** | |
| &nbsp;&nbsp;&nbsp;2025 | 8112387 |
| &nbsp;&nbsp;&nbsp;2026 | 6198948 |
| &nbsp;&nbsp;&nbsp;2027 | 19559344 |
|  | $33870679 |

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The Company's mortgage notes payable terms, by property, are outlined below:

*55 Walkers Brooks Road*

On October 26, 2018, the Company entered into a loan agreement (the "55 Walkers Initial Loan Agreement") with East Boston Savings Bank for a total principal of $20,962,500. The 55 Walkers Initial Loan Agreement accrued interest annually with a fixed interest rate of 4.70% for the fixed term of the loan. On April 19, 2024, the Company entered into an amendment to the 55 Walkers Initial Loan Agreement (the "Amended Loan Agreement") with Rockland Trust Company, the successor to East Boston Savings Bank. This amendment extended the maturity date of the loan held by this property to April 19, 2027. It further increased the fixed interest rate to 7.12%. Payments of principal and interest relating to the Amended Loan Agreement are due on a monthly basis in arrears on the 20<sup>th</sup> day of each calendar month. As a condition to the Amended Loan Agreement, the Company paid $53,254 to the lender which was capitalized as a deferred offering cost.

In connection with the amendment to the loan agreement on April 19, 2024, as discussed above, the Company further entered into a secondary loan commitment with Rockland Trust Company (the "Secondary Loan Agreement") for a total of $1,000,000 in proceeds. The proceeds of the Secondary Loan Agreement are to be provided to the Company from time to time following the satisfaction of certain conditions, including permits and approvals regarding tenant improvements to the property. Subject to the satisfaction of receiving these permits and approvals, Rockland Trust Company would disburse funds relating to these tenant improvements to the Company. Future requests of advances can be made by the Company, which are subject to the same terms and conditions.

The Company assessed the treatment of the Amended Loan Agreement with Rockland Trust Company in accordance with ASC 470-50, *Modifications and Extinguishments.* From this, it was concluded that the terms of the Amended Loan Agreement were not substantially different from the 55 Walkers Brooks Road Initial Loan Agreement. As such, the amendment was accounted for as a modification of the 55 Walkers Brooks Road Initial Loan Agreement.

The Amended Loan Agreement and the Secondary Loan Agreement are subject to customary covenants. As of December 31, 2024 and 2023, the Company was not in violation of any of these covenants. The total outstanding borrowings relating to the Amended Loan Agreement and the Secondary Loan Agreement as of December 31, 2024 and 2023 were $20,075,088 and $20,301,647, respectively. The total interest accrued as of December 31, 2024 and 2023 was $32,375 and $42,207, respectively.

*165 Township Road*

On October 20, 2017, the Company entered into a loan and security agreement (the "Security Agreement") with Beneficial Bank for a total principal of $9,225,000. The Security Agreement accrues interest annually at a rate of 4.50% per year. $8,558,000 of the Security Agreement was advanced to the Company for the acquisition of 165 Township Road. The balance of the Security Agreement, or $667,000 was to be used for tenant improvements and leasing commissions that would be advanced subject to the satisfaction of certain administrative requirements.

Monthly principal and interest payments relating to the Security Agreement are due in monthly installments in arrears. The Security Agreement can be prepaid at any time. If the Security Agreement is prepaid before its maturity date, the Company would incur a prepayment premium equal to 1.0% of the total prepayment. The Security Agreement is due April 1, 2025. The Company amended the Security Agreement on April 8, 2025 to further extend the maturity date of the Security Agreement to July 1, 2025.

The Security Agreement is subject to customary covenants. As of December 31, 2024 and 2023, the Company was not in violation of any of these covenants. The total outstanding borrowings as of December 31, 2024 and 2023 were $7,863,791 and $8,110,343, respectively. The total interest accrued as of December 31, 2024 and 2023 was $46,065 and $31,428, respectively.

*Napa Square*

On March 4, 2016, the Company, along with three other investors into this property, executed a promissory note (the "Napa Square Promissory Note") with JP Morgan Chase for a total principal of $22,300,000. The Napa Square Promissory Note accrues interest annually at a fixed rate of 4.04% per year. Payment of interest is payable monthly until the maturity date, April 1, 2026, on which date the principal and any outstanding interest is due. The Company owns 26.6% of the outstanding equity of this property. As such, the Company is liable for its share of the mortgage payable, or a total of $5,931,800, as of December 31, 2024 and 2023.

The Napa Square Promissory Note is subject to customary covenants. As of December 31, 2024 and 2023, the property was not in violation of any of these covenants.

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**Note 7: Mandatorily Redeemable Preferred Equity**

The legal entities that hold ownership interests in 55 Walker's Brook Drive have issued mandatorily redeemable preferred equity to specific investors.

On December 20, 2018, a third-party investor contributed $5,220,000 in cash to the Company. In consideration of this capital contribution, the third-party investor received that value in preferred equity of 55 Walkers Brook Drive Venture, LLC, a wholly owned subsidiary of the Company. The mandatorily redeemable preferred equity accrues preferred dividends of 11% per year. Upon the occurrence of a default, such as if the Company were to default on its outstanding debt for this property, not make minimum dividend payments, not redeem the preferred interests on the mandatory redemption date, or sell substantially all the assets or transfer more than fifty percent of the equity interests to a separate company, the dividend percentage will be increased to the lesser of 13% or the highest per year interest rate permitted under the law.

In April 2024, the investors contributed an additional $1,000,000 in cash to the Company. In consideration of this additional capital contribution, the third-party investor received that value in preferred equity of 55 Walkers Brook Drive Venture, LLC under the same terms and conditions as the initial investment.

On an annual basis, regardless of whether the Company has available positive cash flow, one twelfth of a minimum dividend is payable in each twelve-month period from the date of the issuance of the contribution. This minimum dividend is defined as the total amount of contributed capital made by the investor multiplied by the annual preferred dividend interest rate of 11% per year.

Prior to the dissolution of the Company and the commencement of the liquidation of its assets, the operating cash flow of the legal entity that owns this property would be distributed first to the preferred equity holder until all capital contributions and accrued preferred dividend interest are repaid. Any remaining amounts would be distributed to the common members.

Given that the mandatorily redeemable preferred equity was outstanding on December 20, 2023, the fifth anniversary of the date of issuance, the Company is required to pay the total sum of the initial investment made by the third-party investor, plus any accrued but unpaid dividends, plus an amount equal to the excess of 140% of the initial capital contribution over the sum of all distributions made to the third-party investor, plus any amounts outstanding relating to any additional loans made by the third-party investor on the date of redemption. On August 30, 2021, the Company entered into an amendment to the original agreement, allowing for three additional extension terms through August 30, 2026. As of December 31, 2024 and 2023, the total amount due to the third-party investors were $6,802,348 and $5,220,000, respectively.

**Note 8: Commitments and Contingencies**

*Litigation*

The Company, from time to time, is subject to legal proceedings and claims that arise in the ordinary course of business. Resolution of any such matter could have a material adverse effect on the results of operations and financial condition. The Company considers all claims on a periodic basis and based on known facts assesses whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, the Company then evaluates disclosure requirements and whether to accrue for such claims in its combined consolidated financial statements.

The Company records a provision for a contingent liability when it is both probable that a loss has been incurred, and the amount of the loss can be reasonably estimated. In the opinion of the Company, there are no legal proceedings pending against or involving the Company whose outcome is likely to have a material adverse effect upon the Company's financial position or results of operations.

*Environmental Matters*

The Company is not aware of any environmental claims existing as of December 31, 2024 and 2023, that have not been provided for or would otherwise have a material impact on its financial position, results of operations, or liquidity. There can be no assurance, however, that current regulatory requirements will not change or past non-compliance with environmental laws will not be discovered on the Company's properties.

*Commitments*

The Company guarantees from time-to-time obligations of its wholly-owned subsidiaries.

*Contingencies*

The Company's operating results and financial condition are dependent on the ability of its tenants to meet their lease obligations. Although the amount of rent that the Company receives from its tenants is not dependent on the tenants' operating results, the tenants' ability to fulfill their lease obligations, including the payment of rent, could be adversely affected if the Company's tenants encountered significant financial difficulties.

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**Note 9: Concentrations of Risk**

As of December 31, 2024, the Company owned one property in each Massachusetts, and Pennsylvania, not including its ownership in its equity-method investment. Accordingly, there is a geographic concentration of risk subject to economic conditions in certain states.

For the year ended December 31, 2024, there were two tenants that made up more than 10% of total combined consolidated revenue. For the year ended December 31, 2024, tenant A represented 10% of total revenue while tenant B represented 11% of total revenue. For the year ended December 31, 2023, tenant A did not represent greater than 10% of total combined consolidated revenue while tenant B represented 10% of total combined consolidated revenue.

Rental revenue, as a percentage of the total recognized for the years ended December 31, 2024 and 2023 were the following by property:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| 55 Walkers Brook Road (Reading, Massachusetts) | 64% | 56% |
| 165 Township Line Road (Jenkintown, Pennsylvania) | 36% | 44% |

---

**Note 10: Equity-Method Investments**

Pursuant to the TIC Agreement, each TIC interest holder is responsible for its pro-rata share of contributions which may be required thereunder in connection with the ownership, operation, management, and maintenance of the commonly held property, and each TIC interest holder is entitled to receive its pro-rata share of applicable revenues and proceeds derived from the commonly held property in accordance with the terms thereof. Furthermore, all tenants-in-common hold an individual, undivided ownership interest in the property. Undivided ownership interests are arrangements in which two or more parties jointly own the property and the title is held individually to the extent of each party's interest.

The Company accounts for its 26.6% ownership interest in Napa Square under the equity method of accounting. The value of its equity method investment was $9,110,917 and $9,216,903 as of December 31, 2024 and 2023 respectively. The Company recognized a loss on its equity method investment during the years ended December 31, 2024 and 2023 of $105,985 and $116,088, respectively. The Company received no distributions of capital from its equity method investment during the years ended December 31, 2024 and 2023.

Summarized financial information as of and for the years ended December 31, 2024 and 2023 for the Company's equity method investment was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, <br> 2023** |
| Current assets | $2810831 | $2841773 |
| Noncurrent assets | 29899031 | 30302047 |
| Noncurrent liabilities | 22300000 | 22300000 |
| Current liabilities | 324090 | 359607 |
| Gross revenues | 2802961 | 2588717 |
| Loss from continuing operations | 535103 | 489623 |
| Net loss | 398441 | 436421 |
| Net loss attributable to Joss Realty | 105985 | 116088 |

---

**Note 11: Property Management Agreements**

The Company enters into property management agreements with independent third parties. Under these property management agreements, the property manager is to operate and manage the property and to maximize the income derived from the property. Furthermore, the property manager is to collect all rents associated with any tenants within the properties owned by the Company. The Company continues to have the authority to make all major policy and operational decisions relating to the operations of the property. The property managers are required to prepare and submit operating budgets, capital budgets, maintenance plans, repair, maintenance, and leasing of the property for each annual period. The Company is required to approve the budgets prior to execution. As compensation under this agreement, the Company pays a monthly fee, normally calculated as a minimum of monthly gross collections from tenants of the property and further sometimes includes a minimum required monthly fee.

Total costs associated with the Company's property management agreements for the years ended December 31, 2024 and 2023 were $141,648 and $169,094, respectively, included within management fees in the combined consolidated statements of operations.

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**Note 12: Subsequent Events**

The Company has completed an evaluation of all subsequent events through July 14, 2025 to ensure that these combined consolidated financial statements include appropriate disclosure of events both recognized in the combined consolidated financial statements and events which occurred but were not recognized in the combined consolidated financial statements. The following events were identified:

*Agreement of Sale*

On June 20, 2025, the Company entered into an Agreement of Purchase and Sale (the "Agreement of Sale") by and between 165 Township Road Owner, LLC (the "Seller"), a wholly owned subsidiary of the Company, and 165 Township Holdings, LLC (the "Buyer"), an unrelated party. In accordance with the Agreement of Sale, the Company is to sell the second building within the location, along with all real property, to the Buyer, by December 31, 2025 for a total purchase price of $2,500,000. The closing of this transaction is subject to standard closing conditions.

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**JOSS REALTY REIT, INC. AND SUBSIDIARIES**

**SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION**

**December 31, 2024**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description of Property** | **Encumbrances** | **Initial Cost to Company** | **Initial Cost to Company** | **Cost Capitalized<br> Subsequent to Acquisition** | **Cost Capitalized<br> Subsequent to Acquisition** | **Gross Amount of<br> Which Carried at Close of Period** | **Gross Amount of<br> Which Carried at Close of Period** | **Gross Amount of<br> Which Carried at Close of Period** | **Accumulated Depreciation** | **Date of Construction** | **Date Acquired** | **Life on Which Depreciation<br> is Computed** |
| | | **Land** | **Buildings and Improvements** | **Improvements** | **Carrying Costs** | **Land** | **Buildings and Improvements** | **Total** | | | | |
| 165 Township Road | $7863791 | $1174450 | $8770895 | $714319 | $- | $1174450 | $9485214.00 | $10659664 | $3449377 | 1985 | October 20,<br> 2017 | Building - 23 years Improvements - 1 to 9 years, depending on nature of improvement |
| 55 Walker | $20075088 | $4102746 | $25952202 | $2970288 | $- | $4102746 | $28922490.27 | $33025236 | $8521130 | 1986 | December 20,<br> 2018 | Building - 35 years Improvements - 1 to 35 years, depending on nature of improvement |
|  | $27938879 | $5277196 | $34723097 | $3684607 | $- | $5277196 | $38407704 | $43684900 | $11970507 |  |  |  |

---

(1) The changes in investment in real estate and accumulated depreciation are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the <br> years ended <br> December 31,** | **For the <br> years ended <br> December 31,** |
|  | **2024** | **2023** |
| **<u>Cost</u>** |  |  |
| Balance at the beginning of the year | $40911221 | $40556727 |
| Acquisitions | 2773679 | 354494 |
| Disposals | - | - |
| Balance at the end of the year | $43684900 | $40911221 |
| **<u>Accumulated Depreciation</u>** |  |  |
| Balance at the beginning of the year | $10783723 | $9132683 |
| Depreciation | 1186784 | 1651040 |
| Dispositions | - | - |
| Balance at the end of the year | $11970507 | $10783723 |
| Net Investments in real estate | $31714393 | $30127498 |

---

(2) The Company records depreciation on buildings and building improvements utilizing the straight-line method over the estimated useful life of the asset, as outlined below. The Company records depreciation on buildings and building improvements utilizing the straight-line method over the estimated useful life of the asset. For further information, please see Note 3 to the audited combined consolidated financial statements.

---

| | |
|:---|:---|
|  | **Useful Life** |
| Buildings | 23 to 40 years |
| Building improvements | 1 to 35 years |
| Tenant improvements | Shorter of lease term or occupancy term of tenant |

---

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**JOSS REALTY REIT, INC.**

**Unaudited Condensed Interim Financial Statements**

**As of September 30, 2025 and for the period from April 15, 2025 (Inception) through September 30, 2025**

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**JOSS REALTY REIT, INC.**

**Table of Contents**

---

| | |
|:---|:---|
| Unaudited Condensed Interim Financial Statements: |  |
| &nbsp;&nbsp;&nbsp;[Balance Sheet](#f_002) | F-34 |
| &nbsp;&nbsp;&nbsp;[Statement of Operations](#f_003) | F-35 |
| &nbsp;&nbsp;&nbsp;[Changes in Stockholder's Deficit](#f_004) | F-36 |
| &nbsp;&nbsp;&nbsp;[Statement of Cash Flows](#f_005) | F-37 |
| [Notes to Unaudited Condensed Interim Financial Statements](#f_006) | F-38 – F-41 |

---

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**JOSS REALTY REIT, INC.**

**BALANCE SHEET**

**AS OF SEPTEMBER 30, 2025**

**(Unaudited)**

---

| | |
|:---|:---|
| Assets |  |
| Currents assets: |  |
| &nbsp;&nbsp;&nbsp;Cash | $704 |
| &nbsp;&nbsp;&nbsp;Deferred transaction costs | 1823232 |
| &nbsp;&nbsp;&nbsp;Other current assets | 25000 |
| Total Assets | $1848936 |
| Liabilities and stockholder's deficit |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $1271519 |
| &nbsp;&nbsp;&nbsp;Due to JOSS Realty Partners | 24786 |
| &nbsp;&nbsp;&nbsp;Due to JOSS Realty Partners B | 24785 |
| &nbsp;&nbsp;&nbsp;Due to Napa Square | 527846 |
| &nbsp;&nbsp;&nbsp;Accrued formation costs | 771 |
| Total liabilities | 1849707 |
| Commitments and Contingencies (Note 3) |  |
| Stockholder's deficit |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value; 100,000,000 shares authorized; 100 shares issued and outstanding as of September 30, 2025 | 1 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 9 |
| &nbsp;&nbsp;&nbsp;Stock subscription receivable | (10) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (771) |
| &nbsp;&nbsp;&nbsp;Total stockholder's deficit | (771) |
| Total liabilities and stockholder's deficit | $1848936 |

---

The accompanying notes are an integral part of these unaudited condensed interim financial statements.

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**JOSS REALTY REIT, INC.**

**STATEMENT OF OPERATIONS**

**FOR THE PERIOD FROM APRIL 15, 2025 (INCEPTION) TO SEPTEMBER 30, 2025**

**(Unaudited)**

---

| | |
|:---|:---|
| Formation costs | $771 |
| Net loss | $(771) |
| Weighted average shares outstanding, basic and diluted | 100 |
| Basic and diluted net loss per share | $(7.71) |

---

 

The accompanying notes are an integral part of these unaudited condensed interim financial statements.

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**JOSS REALTY REIT, INC.**

**STATEMENT OF CHANGES IN STOCKHOLDER'S DEFICIT**

**FOR THE PERIOD FROM APRIL 15, 2025 (INCEPTION) TO SEPTEMBER 30, 2025**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid in**<br>**Capital** | **Stock<br> Subscription**<br>**Receivable** | **Accumulated**<br>**Deficit** | **Stockholder's**<br>**Deficit** |
| April 15, 2025 (inception) |  | $- | $- | $- | $- | $- |
| Net loss |  |  |  |  | (771) | (771) |
| Issuance of common stock | 100 | 1 | 9 | (10) | - | - |
| Balance at September 30, 2025 (unaudited) | 100 | $1 | $9 | $(10) | $(771) | $(771) |

---

The accompanying notes are an integral part of these unaudited condensed interim financial statements.

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**JOSS REALTY REIT, INC.**

**STATEMENT OF CASH FLOWS**

**FOR THE PERIOD FROM APRIL 15, 2025 (INCEPTION) TO SEPTEMBER 30, 2025**

**(Unaudited)**

---

| | |
|:---|:---|
| Cash Flows from Operating Activities: |  |
| Net loss | $(771) |
| Changes in operating assets and liabilities: |  |
| &nbsp;&nbsp;&nbsp;Accrued formation costs | 771 |
| &nbsp;&nbsp;&nbsp;Due to Napa Square | 8000 |
| &nbsp;&nbsp;&nbsp;Net cash provided by operating activities | **8000** |
| Cash Flows from Financing Activities: |  |
| Payment of deferred transaction costs | (7296) |
| Net cash used in financing activities | (7296) |
| Net change in cash | 704 |
| Cash - beginning of period | - |
| Cash - end of period | $704 |
| Summary of noncash investing and financing activities: |  |
| Issuance of common stock | $10 |
| Deferred offering costs included in Accounts payable and accrued expenses | $1278815 |
| Deferred offering costs included in Due to JOSS Realty Partners | $24786 |
| Deferred offering costs included in Due to JOSS Realty Partners B | $24785 |
| Deferred offering costs included in Due to Napa Square | $494846 |

---

The accompanying notes are an integral part of these unaudited condensed interim financial statements.

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**JOSS REALTY REIT, INC.**

**NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS**

**Note 1 — Organization, Business Operation and Going Concern**

JOSS Realty REIT, Inc. (the "Company") is a Maryland corporation formed on April 15, 2025 (inception). The Company has not yet commenced operations. Upon the completion of the formation transactions, as described below (the "Formation Transactions"), the Company expects to conducts its business through a traditional UPREIT structure in which substantially all its assets are owned by subsidiaries of JOSS Realty Holdings, LP (the "Operating Partnership"). The Company will be the general partner of the Operating Partnership. Any activity of the Company relates to the Company's formation and preparation for its initial public offering. The Company will not generate any operating revenues until after the completion of its initial public offering and the completion of the Formation Transactions, at the earliest.

Prior to the completion of the proposed initial public offering and the completion of the Formation Transactions, each of the properties that are expected to be contributed to the Operating Partnership are owned by JOSS Realty Partners B, LLC. While JOSS Realty Partners B, LLC owns and controls other certain properties, the properties included the Formation Transactions, referred to as its "Initial Portfolio," are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook Road (Reading, Massachusetts)

&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road (Jenkintown, Pennsylvania)

The Formation Transactions further include JOSS Realty Partners B, LLC's investment in Napa Square (Napa, California), for which it owns 26.6% of the outstanding equity through a Tenancy in Common Agreement (the "TIC" or the "TIC Agreement").

*The Proposed Initial Public Offering*

The Company is planning to complete an offering (the "Proposed Initial Public Offering") whereby the ownership interests in the properties outlined in the initial portfolio will be contributed to the Operating Partnership in exchange for ownership interests in the Operating Partnership (the "Proposed Exchange").

*The Operating Partnership*

Following the completion of the Proposed Initial Public Offering and the Formation Transactions, as outlined below, substantially all the Company's assets will be held by, and its operations will be conducted through, the Operating Partnership. The Company will be the sole general partner of the Operating Partnership. As of the date of these condensed unaudited interim financial statements, the limited partnership agreement between the Company and the Operating Partnership, which governs the Operating Partnership, has not yet been executed.

*Formation Transactions*

 

Each property that is controlled by JOSS Realty Partners B, LLC within the initial portfolio will be owned by the Operating Partnership upon the completion of the Proposed Initial Public Offering and the Formation Transactions. These properties are currently owned, directly or indirectly by partnerships, limited liability companies or corporations in which JOSS Realty Partners B, LLC and its affiliates, certain of the Company's other directors and executive officers and their affiliates, and/or other third parties own a direct or indirect interest. The Company refers to these partnerships, limited liability companies and corporations collectively as the "Ownership Entities." The condensed unaudited interim financial statements are prepared under the assumption that prior to or contemporaneously with completing the Proposed Initial Public Offering and related Formation Transactions, the current owners of the following will enter into contribution agreements with the Operating Partnership, pursuant to which they will contribute their interests in the Ownership Entities to the Company or the Operating Partnership in exchange for partnership units of the Operating Partnership (the "Operating Partnership Units"):

 

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook Road (Reading, Massachusetts)

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&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road (Jenkintown, Pennsylvania)

&nbsp;&nbsp;&nbsp;&nbsp;c. Napa Square (Napa, California)

The amount of cash and Operating Partnership Units that prior investors will receive in exchange for the properties was determined by management and not through arm's length negotiations with an independent third-party.

Upon the completion of the Formation Transactions, the Company will indirectly own the equity interests in its Initial Portfolio.

 

The accompanying unaudited condensed interim financial statements are presented in conformity with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed interim financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited condensed interim financial statements should be read in conjunction with the Company's audited financial statements and notes thereto as of April 15, 2025 (inception), located elsewhere in this filing. The interim results for the period from April 15, 2025 (inception) to September 30, 2025 are not necessarily indicative of the results to be expected for the period from April 15, 2025 (inception) to December 31, 2025, or for any future periods.

 

*Going Concern Consideration*

As of September 30, 2025, the Company did not have any operations. Furthermore, the Company did not have any cash or working capital. These conditions raise substantial doubt about the Company's ability to continue as a going concern one year from the issuance date of the unaudited condensed interim financial statements. Management plans to address this uncertainty through the Proposed Initial Public Offering. There is no assurance that the Company's plans to complete the Proposed Initial Public Offering will be successful. The unaudited condensed interim financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Note 2 — Summary of Significant Accounting Policies**

There have been no changes to our significant accounting policies described within the Notes to the Company's unaudited condensed interim financial statements as of April 15, 2025 (inception). Certain required disclosures relating to our significant accounting policies are disclosed below.

 

*Basis of Presentation*

The accompanying unaudited condensed interim financial statements are presented in conformity with accounting principles generally accepted in the United States of America ("US GAAP") and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC").

*Segment Reporting*

The Company's chief operating decision maker ("CODM"), the Chief Executive Officer, manages the Company's business activities as a single operating and reportable segment. Accordingly, the Company's CODM uses net income/loss to measure the Company's single segment's performance and allocate resources. Further, the CODM reviews and utilizes functional expenses to manage the Company's operations. The Company has no operations as of the date of inception.

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*Income Taxes*

The Company intends to qualify as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"). As a REIT, the Company generally will not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income for each tax year to its stockholders. REITs are subject to a number of organizational and operational requirements.

If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal income tax on its taxable income at regular corporate rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property and to federal income and excise taxes on its undistributed income.

*Earnings (Loss) Per Share* 

Basic net loss per share is computed by dividing net loss attributable to the stockholder of the Company by the weighted-average number of shares of common stock or potential common stock outstanding for the period from April 15, 2025 (inception) to September 30, 2025. Diluted net loss per share includes the potential dilutive effect of common stock equivalents as if such securities were converted or exercised during the period, when the effect is dilutive. There were no common stock equivalents identified during the period from April 15, 2025 (inception) to September 30, 2025. Further, given the Company is in a net loss position for the period from April 15, 2025 (inception) to September 30, 2025, there is no difference between basic and diluted net loss per share.

*Deferred Offering Costs*

The Company follows the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin ("SAB") Topic 5A — *Expenses of Offering*. ASC 340-10-S99-1 states that, specific incremental costs directly attributable to a proposed or actual offering of equity securities incurred prior to the effective date of the offering, may be deferred, and charged against the gross proceeds of the offering when the offering occurs. In connection with the Company's Proposed Initial Public Offering, any costs that meet the requirements of ASC 340-10-S99-1 are deferred and will be charged against the gross proceeds of the offering when the offering occurs. Currently, those properties that are planned to be contributed to the Operating Partnership in connection with the Formation Transactions are providing funding to the Company for these incremental costs directly attributable to the Proposed Initial Public Offering. As such, the Company has established a liability due to these properties, as reflected within the unaudited condensed balance sheet as of September 30, 2025.

*Recently Issued Accounting Standards*

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*. This standard improves the disclosures about a public business entity's expenses and addresses requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for public entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact of adopting this standard on its financial statements and related disclosures.

Management does not believe that any additional recently issued, but not yet effective, accounting standards, if currently adopted, would have a material impact on the Company's unaudited condensed interim financial statements.

**Note 3 — Commitments and Contingencies**

The Company is not a party to any material legal proceedings and is not aware of any pending or threatened claims. The Company does not have any commitments as of inception.

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**Note 4 — Related Party Transaction With Stockholder**

In April of 2025, the Company issued 100 shares of the Company's common stock for an aggregate purchase price of $10 to Larry Botel, the Company's Chief Executive Officer. Such shares on the date of issuance were duly and validly authorized and issued. Each outstanding share of stock has voting power equal to one vote on each matter submitted at any stockholder's meeting. As of the date of these unaudited condensed interim financial statements, no consideration has been received from Mr. Botel for the issuance of these shares. Accordingly, the Company has recorded a "Stock subscription receivable" within the stockholder's equity section on its balance sheet as of inception.

**Note 5 — Subsequent Events**

The Company has completed an evaluation of all subsequent events to ensure that these unaudited condensed interim financial statements include appropriate disclosure of events both recognized in the unaudited condensed interim financial statements and events which occurred but were not recognized in the unaudited condensed interim financial statements. No subsequent events were identified as of the date that these unaudited condensed interim financial statements were issued.

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**JOSS REALTY**

**Unaudited Condensed Combined Consolidated Financial Statements**

**As of and for the nine months ended September 30, 2025 and 2024**

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**JOSS REALTY**

**Table of Contents**

---

| | |
|:---|:---|
| [Condensed Combined Consolidated Balance Sheets](#e_002) | F-44 |
| [Condensed Combined Consolidated Statements of Operations](#e_003) | F-45 |
| [Condensed Combined Consolidated Statements of Changes in Members' Equity](#e_004) | F-46 |
| [Condensed Combined Consolidated Statements of Cash Flows](#e_005) | F-47 |
| [Notes to Condensed Combined Consolidated Financial Statements](#e_006) | F-48 – F-57 |

---

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**JOSS REALTY**

**CONDENSED COMBINED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
|  | (Unaudited) | |
| **ASSETS** |  |  |
| Investments in real estate: |  |  |
| &nbsp;&nbsp;&nbsp;Land and improvements | $5277196 | $5277196 |
| &nbsp;&nbsp;&nbsp;Buildings and improvements | 31447168 | 31476294 |
| &nbsp;&nbsp;&nbsp;Tenant improvements | 7107888 | 6931410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments in real estate | 43832252 | 43684900 |
| &nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | (12976389) | (11970507) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in real estate, net | 30855863 | 31714393 |
| Cash | 782607 | 1204717 |
| Restricted cash | 536963 | 935218 |
| Tenant receivables | 127624 | 134225 |
| Due from Joss Realty REIT | 24786 |  |
| Deferred rent receivables | 2233733 | 2468577 |
| Prepaid expenses and other assets | 1412811 | 1330588 |
| Equity method investment | 9094890 | 9110917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $45069277 | $46898635 |
| **LIABILITIES, PREFERRED EQUITY AND MEMBERS' EQUITY** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Mortgage notes payable, net | $34129185 | $33693123 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 1909808 | 2386131 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 62175 | 78440 |
| &nbsp;&nbsp;&nbsp;Mandatorily redeemable preferred equity | 7064659 | 6802348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 43165827 | 42960042 |
| Commitments and contingencies (Note 8) |  |  |
| Members' equity |  |  |
| Total members' equity | $1903450 | $3938593 |
| Total liabilities, preferred equity, and members' equity | $45069277 | $46898635 |

---

*The accompanying notes are an integral part of these unaudited condensed combined consolidated financial statements.*

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**JOSS REALTY**

**CONDENSED COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the<br> nine months ended<br> September 30,** | **For the<br> nine months ended<br> September 30,** |
|  | **2025** | **2024** |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;Revenues | $4064899 | $4671263 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Property operating expenses | 1521782 | 1636238 |
| &nbsp;&nbsp;&nbsp;Real estate taxes | 473457 | 452937 |
| &nbsp;&nbsp;&nbsp;Repairs and maintenance | 339159 | 337107 |
| &nbsp;&nbsp;&nbsp;Management fees | 91314 | 113102 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 202433 | 217089 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1247296 | 1019926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 3875441 | 3776399 |
| &nbsp;&nbsp;&nbsp;Income from operations | 189458 | 894864 |
| &nbsp;&nbsp;&nbsp;Other expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 2208574 | 1788841 |
| &nbsp;&nbsp;&nbsp;Loss on equity method investment | 16027 | 91684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses | 2224601 | 1880525 |
| &nbsp;&nbsp;&nbsp;Net loss | $(2035143) | $(985661) |

---

*The accompanying notes are an integral part of these unaudited condensed combined consolidated financial statements.*

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**JOSS REALTY**

**CONDENSED COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' EQUITY**

**(UNAUDITED)**

---

| | |
|:---|:---|
|  | **Members'<br> Equity** |
| **Balance as of December 31, 2023** | $4095080 |
| &nbsp;&nbsp;&nbsp;Net loss | (985661) |
| &nbsp;&nbsp;&nbsp;Contributions | 1187871 |
| **Balance as of September 30, 2024** | $4297290 |
| **Balance as of December 31, 2024** | $3938593 |
| &nbsp;&nbsp;&nbsp;Net loss | (2035143) |
| **Balance as of September 30, 2025** | $1903450 |

---

*The accompanying notes are an integral part of these unaudited condensed combined consolidated financial statements.*

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**JOSS REALTY**

**CONDENSED COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the<br> nine months ended<br> September 30,** | **For the<br> nine months ended<br> September 30,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(2035143) | $(985661) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1247295 | 1019926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on equity method investments | 16027 | 91684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncash interest on mandatorily redeemable preferred equity | 728671 | 219709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in current assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant receivables | 6601 | 27040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from Joss Realty REIT | (24786) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred rent receivables | 234844 | 153737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (224621) | (710500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (476323) | (95812) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | (16265) | 5197 |
| Net cash used in provided by operating activities | (543700) | (274680) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Investments in real estate | (193730) | (1321971) |
| Net cash used in investing activities | (193730) | (1321971) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Repayment of mortgage notes payable | (372232) | (354605) |
| &nbsp;&nbsp;&nbsp;Members' contributions |  | 1187871 |
| &nbsp;&nbsp;&nbsp;Payment of interest on mandatorily redeemable preferred equity | (466358) |  |
| &nbsp;&nbsp;&nbsp;Issuance of mortgage notes payable | 755655 |  |
| &nbsp;&nbsp;&nbsp;Issuance of mandatorily redeemable preferred equity | - | 1000000 |
| Net cash (used in) provided by financing activities | (82935) | 1833266 |
| Decrease in cash and restricted cash | (820365) | 236615 |
| Cash and restricted cash, beginning of period | 2139935 | 2727857 |
| Cash and restricted cash, end of period | $1319570 | $2964472 |
| **Supplemental disclosures of cash flow information:** |  |  |
| Cash paid for interest | $1489803 | $1359543 |

---

*The accompanying notes are an integral part of these unaudited condensed combined consolidated financial statements.*

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**JOSS REALTY**

**NOTES TO CONDENSED COMBINED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**Note 1: Organization and Basis of Presentation, Combination, and Consolidation**

JOSS Realty Partners B, LLC ("JOSS Realty") is engaged in the real estate investment business and owns a portfolio of office properties. The Company's investment strategy, which it has been executing since 2005, is to acquire and improve under-valued and compelling office properties in the economically diverse Metropolitan Statistical Areas ("MSA's") of the Northeast, Mid-Atlantic, Southeast, and the West Coast.

These unaudited condensed combined consolidated financial statements present the accounts and operations of the following legal entities consolidated by JOSS Realty and their respective properties:

&nbsp;&nbsp;&nbsp;&nbsp;a. 55 Walkers Brook Drive Owner, LLC ("55 Walkers Brook")

&nbsp;&nbsp;&nbsp;&nbsp;b. 165 Township Line Road Owner, LLC ("165 Township")

The unaudited condensed combined consolidated financial statements also include JOSS Realty's equity investment in Napa Square Owner NY, LLC ("Napa Square"), for which JOSS Realty owns 26.6% of the outstanding equity through a Tenancy in Common Agreement (the "TIC" or the "TIC Agreement"). All significant intercompany balances and transactions have been eliminated in consolidation.

55 Walkers Brook, 165 Township and the equity method investment in Napa Square together are referred to as the Company.

The Company has been identified as the Predecessor to JOSS Realty REIT, Inc. in accordance with the requirements set forth by the Securities and Exchange Commission (the "SEC"). JOSS Realty REIT, Inc. plans to complete an initial public offering of its common stock (the "Offering"). In connection with this Offering, certain formation transactions (the "Formation Transactions") will be executed (see Note 2). Upon completion of the Formation Transactions and the Offering, the ownership interests in each property will be contributed to JOSS Realty Holdings, LP (the "Operating Partnership") in exchange for limited partner interests in the Operating Partnership. JOSS Realty REIT, Inc. will be the sole general partner of the Operating Partnership and substantially all of JOSS Realty REIT, Inc.'s operations will be conducted through its Operating Partnership. As a result, the new offering investors and the original investors collectively will own the Operating Partnership. See additional disclosure regarding the offering and formation transactions in Note 2 of these unaudited condensed combined consolidated financial statements.

The accompanying unaudited condensed combined consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information and Article 10 of Regulation S-X. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed combined consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited condensed combined consolidated financial statements should be read in conjunction with the Company's audited financial statements and notes thereto as of and for the years ended December 31, 2024 and 2023 located elsewhere in this filing. The interim results for the nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future periods.

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*Going Concern*

The Company incurred net losses of $2,035,143 and $985,661 for the nine months ended September 30, 2025 and 2024, respectively. Additionally, under its current debt agreements, it is expected that the Company will have to make payments of $13,869,633 through September 2026. The Company's ability to fund its operations is dependent upon the success of management's plans, which include raising capital through issuances of debt and equity securities and extending existing debt agreements. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. A failure to raise sufficient financing and/or extend existing debt agreements, among other factors, will adversely impact the Company's ability to meet its financial obligations as they become due and payable and to achieve its intended business objectives. Furthermore, there can be no assurance that JOSS Realty B, LLC will contribute incremental capital to the Company to fund its operations. Accordingly, based on the considerations discussed above, management has concluded there is substantial doubt as to the Company's ability to continue as a going concern within one year after the date the unaudited condensed combined consolidated financial statements are issued.

The unaudited condensed combined consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities should the Company be unable to continue as a going concern.

**Note 2: Structure of the Company, Sale of Certain Real Estate Assets, and the Proposed Offering**

*The Company's Initial Portfolio*

The Company owns 100% of the interests in two multi-tenant office properties and a 26.6% ownership in one multi-tenant office property, all three of which are referred to collectively as its "initial portfolio" (the "Properties"), including:

55 Walkers Brook- The Company acquired 55 Walkers Brook in December 2018 for $32.25 million.

165 Township Line Road- The Company acquired 165 Township Line Road in October 2017 for $12.1 million.

Napa Square- The Company acquired a 26.6% equity interest in Napa Square in April 2016 for $11.0 million, inclusive of $5.0 million in cash and the Company's proportionate share of a term loan agreement for $6.0 million. See Note 6 for further information.

*Sale of Certain Real Estate Assets*

On June 20, 2025, 165 Township Line Road entered into an Agreement and Purchase of Sale (the "Agreement") to sell certain building and land assets to a third-party. The Agreement contains standard provisions associated with the sale of building and land assets and provides a purchase price of $2.5 million. Subsequent to the closing of the sale, 165 Township Line Road will only hold ownership in one building asset. The closing of the sale is to occur no later than 30 days after approvals have been obtained from all parties specified in the Agreement, but no later than December 31, 2025. As of September 30, 2025, the sale had yet to close.

*The Proposed Offering*

The Company is planning to complete the "Proposed Offering" whereby the Company's ownership interests in the Properties are contributed to a real estate investment trust in exchange for ownership interests in the Operating Partnership.

*The Operating Partnership*

Following the completion of the Proposed Offering and the Formation Transactions, as outlined below, the Properties will be held by, and its operations will be conducted through, the Operating Partnership. Joss Realty REIT, Inc., a related party, will be the sole general partner of the Operating Partnership.

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*Formation Transactions*

Each property that is owned by the Company will be owned by the Operating Partnership upon the completion of the Offering and the Formation Transactions. These properties are currently owned, directly or indirectly by partnerships, limited liability companies or corporations in which JOSS Realty Partners B, LLP and its affiliates, certain of the Company's other directors and executive officers and their affiliates, and/or other third parties own a direct or indirect interest. The unaudited condensed combined consolidated financial statements are prepared under the assumption that prior to or contemporaneously with completing the Offering and related Formation Transactions described in Note 3, the current owners of the Properties will enter into contribution agreements with the Operating Partnership, pursuant to which they will contribute their interests in the Ownership Entities to the Company or the Operating Partnership in exchange for partnership units of the Operating Partnership.

The amount of cash and Operating Partnership Units that prior investors will receive in exchange for the properties was determined by management and not through arm's length negotiations with an independent third-party. In determining the fair market value of its initial portfolio, management undertook a diligence and underwriting process that took into account, among other factors, market capitalization rates, net operating income, landlord obligations to fund future capital expenditures, lease duration, functionality and ability to release should a tenant not renew its lease, tenant creditworthiness and discount rates based on tenant creditworthiness, property location, property age, comparable sales information and capitalization rates for properties leased to tenants with similar credit profiles and lease durations, tenant operating performance and the fact that brokerage commissions would not be payable in connection with the Formation Transactions. No single factor was given greater weight than any other in valuing the Company's initial portfolio. The value attributable to its initial portfolio does not necessarily bear any relationship to the value of any particular property within that portfolio. Furthermore, the Company did not obtain any third-party property appraisals for the properties in the initial portfolio or any other independent third-party valuations or fairness opinions in connection with the Formation Transactions.

Upon the completion of the Formation Transactions, JOSS Realty REIT, Inc. will indirectly own the equity interests in the Company's initial portfolio.

**Note 3: Summary of Significant Accounting Policies**

There have been no changes to our significant accounting policies described within the Notes to the Company's combined consolidated financial statements as of and for the years ended December 31, 2024 and 2023. Certain required disclosures relating to our significant accounting policies are disclosed below.

*Investments in Real Estate*

The Company records investment properties and related intangibles at cost less accumulated depreciation and amortization. Investment properties include both acquired and constructed assets. Improvements and major repairs and maintenance are capitalized when the repair and maintenance substantially extend the useful life, increases capacity, or improves the efficiency of the asset. All other repair and maintenance costs are expensed as incurred. The Company capitalizes interest on projects during periods of construction until the projects reach the completion point that corresponds with their intended purpose. The Company did not capitalize any interest during the nine months ended September 30, 2025 and 2024.

The Company accounts for investment properties that it has acquired using the asset acquisition method. The Company allocates the purchase price of acquisitions to the various components of the acquisition based upon the fair value of each component which may be derived from various observable or unobservable inputs and assumptions. Also, the Company may utilize third-party valuation specialists. These components typically include buildings, land, and any intangible assets related to in-place leases the Company determines to exist.

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The Company records depreciation on buildings and building improvements utilizing the straight-line method over the estimated useful life of the asset. The Company reviews depreciable lives of investment properties periodically and makes adjustments to reflect a shorter economic life, when necessary. Tenant improvements are amortized utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. The useful lives of the Company's asset ranges based upon the type of asset, are as outlined below:

---

| | |
|:---|:---|
|  | **Useful life** |
| Buildings | 23 to 40 years |
| Building improvements | 1 to 35 years |
| Tenant improvements | Shorter of lease term or occupancy term of tenant |

---

The Company reviews investment properties for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of investment properties may not be recoverable. These circumstances include, but are not limited to, declines in the property's cash flows, occupancy, and fair market value. The Company measures any impairment of investment property when the estimated undiscounted operating income before depreciation and amortization, plus its residual value, is less than the carrying value of the property. To the extent impairment has occurred, the Company charges to income the excess of carrying value of the property over its estimated fair value. The Company estimates fair value using unobservable data such as operating income, estimated capitalization rates, or multiples, leasing prospects, and local market information. The Company may decide to sell properties that are held for use and the sale prices of these properties may differ from their carrying values. No properties were sold and no impairments were recognized through September 30, 2025.

Depreciation expense for the nine months ended September 30, 2025 and 2024 was $1,052,257 and $852,792, respectively.

*Restricted Cash* 

Restricted cash primarily consists of amounts held by mortgage lenders and the Company to provide for real estate tax expenditures, tenant improvements, capital expenditures and security deposits, as well as escrow accounts related to principal and interest payments on bonds.

*Equity-Method Investments*

The Company holds a 26.6% undivided interest in the Napa Square property pursuant to the TIC Agreement under which all tenants-in-common hold an individual, undivided ownership interest in the property. Management concluded that the TIC itself is not a legal entity and the Company's undivided interest represents an interest in the Napa Square property itself, not in an entity that owns the Property. Based upon the nature of such interests, the Company determined that the equity method of accounting is the appropriate method of accounting for its tenant-in-common interests based on the guidance in Accounting Standards Codification ("ASC") Topic 970, *Real Estate.* The equity investment balance includes the Company's share the Napa Square Promissory Note (see Note 5).

The Company evaluates its equity-method investments for impairment whenever events or changes in circumstances indicate that the carrying value of its investments may exceed the fair value. If it is determined that a decline in the fair value of its investments is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. Determining fair value involves significant judgment. The Company's estimates consider available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions, and other relevant factors. The Company did not record any impairments related to its equity-method investment through September 30, 2025.

*Leasing Commissions*

Leasing commissions represent payments made to third parties for services directly relating to securing lease agreements. Initial incremental costs that would not have been incurred if the lease had not been obtained are capitalized and amortized. These leasing commissions are recorded as a component of Prepaid expenses and other current assets within the Company's unaudited condensed combined consolidated balance sheets. Total amortization expenses for the capitalized leasing commission for the nine months ended September 30, 2025 and 2024 were $195,038 and $167,133, respectively.

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*Segment Reporting*

The Company currently operates as one segment, which is also the sole reportable segment. The Company's chief operating decision maker ("CODM") is the Chief Executive Officer of JOSS Realty Partners B, LLC. The Company generates revenue primarily from the leasing of the Company's properties to tenants. The CODM evaluates performance and allocates resources based on unaudited condensed combined consolidated net income (loss) as reported in the unaudited condensed combined consolidated statements of operations. The unaudited condensed combined consolidated net income (loss) is primarily derived through the difference in rental revenues, property operating expenses, real estate taxes, repairs and maintenance, management fees, depreciation and amortization, and interest expense. Accordingly, property operating expenses, real estate taxes, repairs and maintenance, management fees, depreciation and amortization, and interest expense, as reported on our unaudited condensed combined consolidated statements of operations, represent the Company's most significant segment expenses. Additionally, the measure of segment assets is reflected on the unaudited condensed combined consolidated balance sheets as total assets.

The CODM uses unaudited condensed combined consolidated net income (loss) to make key operating decisions, such as identifying attractive real estate investment opportunities, evaluating the performance of the Company's real estate assets, and deciding on the sources of financing.

*Income Taxes*

The legal entities included within these unaudited condensed combined consolidated financial statements are taxed as partnerships for United States income tax purposes, thus the income or loss of the Company flows to the members. As partnerships, these legal entities are not subject to tax and any tax liability is the responsibility of the members of the Company. Accordingly, no provision for federal and state income taxes is included in the unaudited condensed combined consolidated financial statements for the nine months ended September 30, 2025 and 2024.

The Company follows ASC Subtopic 740-10, *Accounting for Uncertainty in Income Taxes*, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. As of September 30, 2025 and December 31, 2024, the Company had no material uncertain tax positions to be accounted for in the unaudited condensed combined consolidated financial statements. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. The Company's income tax returns for three years, with the latest being the year ended December 31, 2024, are subject to examination by tax authorities and may change upon examination.

*Earnings (Loss) Per Share*

Basic and diluted earnings per share would be computed by dividing net income (loss) attributable to the Members for the nine months ended September 30, 2025 and 2024 by the weighted-average number of shares of common stock or potential common stock outstanding for those periods. There were no shares of common stock or potential common stock outstanding for the nine months ended September 30, 2025 and 2024 for the combined consolidated entity. Therefore, no earnings (loss) per share information is included for any periods presented.

*Recently Issued Accounting Pronouncements Not Yet Adopted*

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*. This standard improves the disclosures about a public business entity's expenses and addresses requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for public entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact of adopting this standard on its financial statements and related disclosures.

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*Recently Adopted Accounting Pronouncements*

In August 2023, the FASB issued ASU 2023-05, *Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement*. The standard addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The amendments in this update are effective to all joint venture formations with a formation date on or after January 1, 2025. The Company adopted this standard effective January 1, 2025, which did not have a material impact on these unaudited condensed combined consolidated financial statements.

In December 2023, the FASB issued Accounting Standards Update 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The standard requires entities to disclose additional categories about federal, state and foreign income taxes in the effective tax rate reconciliation as well as provide annual income taxes paid disaggregated by federal, state and foreign taxes. The standard is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company adopted this standard on January 1, 2025 and determined that the adoption does not have a material impact on these unaudited condensed combined consolidated financial statements.

**Note 4: Leases as a Lessor**

The Company leases its properties to unrelated tenants in order to generate rental revenue. The Company's leases require minimum monthly rental payments that escalate annually. The Company's leases have a provision requiring the tenants to pay their proportionate share of real estate taxes, insurance costs and common area maintenance costs on a gross basis. Any other property-related costs the Company pays are to be reimbursed by the tenant.

Future minimum annual rental payments to the Company by the tenants due under the non-cancellable lease agreements are as follows:

---

| | |
|:---|:---|
| Year ending December 31, 2025 (remaining) | $1350083 |
| &nbsp;&nbsp;&nbsp;2026 | 5255559 |
| &nbsp;&nbsp;&nbsp;2027 | 5094303 |
| &nbsp;&nbsp;&nbsp;2028 | 4351029 |
| &nbsp;&nbsp;&nbsp;2029 | 3509122 |
| Thereafter | 8937895 |
| Total | $28497991 |

---

**Note 5: Mortgage Notes Payable, Net**

Mortgage notes payable, net consists of:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Mortgage notes payable | $34254102 | $33870679 |
| Deferred financing costs | (124917) | (177556) |
| &nbsp;&nbsp;&nbsp;Mortgage notes payable, net | $34129185 | $33693123 |

---

The mortgage notes payable at each of the Company's properties is further outlined below:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| 55 Walkers Brook Road (Reading, Massachusetts) | $20646853 | $20075088 |
| 165 Township Line Road (Jenkintown, Pennsylvania) | 7675449 | 7863791 |
| Napa Square (Napa, California) | 5931800 | 5931800 |
|  | $34254102 | $33870679 |

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The Company is contractual payments are as follows as it relates to the Company's mortgage notes payable:

---

| | |
|:---|:---|
| Year ending December 31, 2025 (remaining) | $7739285 |
| &nbsp;&nbsp;&nbsp;2026 | 6198948 |
| &nbsp;&nbsp;&nbsp;2027 | 20315869 |
|  | $34254102 |

---

The Company's mortgage notes payable terms, by property, are outlined below:

*55 Walkers Brooks Road*

On October 26, 2018, the Company entered into a loan agreement (the "55 Walkers Initial Loan Agreement") with East Boston Savings Bank for a total principal of $20,962,500. The 55 Walkers Initial Loan Agreement accrued interest annually with a fixed interest rate of 4.70% for the fixed term of the loan. On April 19, 2024, the Company entered into an amendment to the 55 Walkers Initial Loan Agreement (the "Amended Loan Agreement") with Rockland Trust Company, the successor to East Boston Savings Bank. This amendment extended the maturity date of the loan held by this property to April 19, 2027. It further increased the fixed interest rate to 7.12%. Payments of principal and interest relating to the Amended Loan Agreement are due on a monthly basis in arrears on the 20<sup>th</sup> day of each calendar month. As a condition to the Amended Loan Agreement, the Company paid $53,254 to the lender which was capitalized as a deferred financing cost.

In connection with the amendment to the loan agreement on April 19, 2024, as discussed above, the Company further entered into a secondary loan commitment with Rockland Trust Company (the "Secondary Loan Agreement") for a total of $1,000,000 in proceeds. The proceeds of the Secondary Loan Agreement are to be provided to the Company from time to time following the satisfaction of certain conditions, including permits and approvals regarding tenant improvements to the property. Subject to the satisfaction of receiving these permits and approvals, Rockland Trust Company would disburse funds relating to these tenant improvements to the Company. Future requests of advances can be made by the Company, which are subject to the same terms and conditions. As of September 30, 2025, the Company has been provided proceeds of $755,655.

The Company assessed the treatment of the Amended Loan Agreement with Rockland Trust Company in accordance with ASC 470-50, *Modifications and Extinguishments* and concluded that the amendment should be accounted for as a modification on a prospective basis.

The Amended Loan Agreement and the Secondary Loan Agreement are subject to customary covenants. As of September 30, 2025, the Company was not in violation of any of these covenants. The total outstanding borrowings relating to the Amended Loan Agreement and the Secondary Loan Agreement as of September 30, 2025 and December 31, 2024 were $20,646,853 and $20,075,088, respectively. The total interest accrued as of September 30, 2025 and December 31, 2024 was $20,407 and $32,375, respectively.

*165 Township Road*

On October 20, 2017, the Company entered into a loan and security agreement (the "Security Agreement") with Beneficial Bank for a total principal of $9,225,000. The Security Agreement accrues interest annually at a rate of 4.50% per year. $8,558,000 of the Security Agreement was advanced to the Company for the acquisition of 165 Township Road. The balance of the Security Agreement, or $667,000 was to be used for tenant improvements and leasing commissions that would be advanced subject to the satisfaction of certain administrative requirements.

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Monthly principal and interest payments relating to the Security Agreement are due in monthly installments in arrears. The Security Agreement can be prepaid at any time. If the Security Agreement is prepaid before its maturity date, the Company would incur a prepayment premium equal to 1.0% of the total prepayment. The Security Agreement was due April 1, 2025. The Company amended the Security Agreement on April 8, 2025 to further extend the maturity date of the Security Agreement to July 1, 2025. The Company further amended the Security Agreement on July 21, 2025 to further extend the maturity date of the Security Agreement to October 1, 2025. The Company further amended the Security Agreement on October 15, 2025, and deposited $60,758 additional Debt Service Reserve (as defined), to further extend the maturity date of the Security Agreement to November 1, 2025. The Company further amended the Security Agreement on November 20, 2025, and deposited $78,704 additional Debt Service Reserve (as defined), to further extend the maturity date of the Security Agreement to January 1, 2026.

The Security Agreement is subject to customary covenants. As of September 30, 2025, the Company was not in violation of any of these covenants. The total outstanding borrowings as of September 30, 2025 and December 31, 2024 were $7,675,449 and $7,863,791, respectively. The total interest accrued as of September 30, 2025 and December 31, 2024 was $41,769 and $46,065, respectively.

*Napa Square*

On March 4, 2016, the Company, along with three other investors into this property, executed a promissory note (the "Napa Square Promissory Note") with JP Morgan Chase for a total principal of $22,300,000. The Napa Square Promissory Note accrues interest annually at a fixed rate of 4.04% per year. Payment of interest is payable monthly until the maturity date, April 1, 2026, on which date the principal and any outstanding interest is due. The Company owns 26.6% of the outstanding equity of this property. As such, the Company is liable for its share of the mortgage payable, or a total of $5,931,800, as of September 30, 2025 and December 31, 2024.

The Napa Square Promissory Note is subject to customary covenants. As of September 30, 2025 and December 31, 2024, the property was not in violation of any of these covenants.

**Note 6: Mandatorily Redeemable Preferred Equity**

On December 20, 2018, the Company received $5,220,000 from a third-party investor in exchange for the preferred equity in 55 Walkers Brook Drive Venture, LLC, a wholly owned subsidiary of the Company. The mandatorily redeemable preferred equity accrues preferred dividends of 11% per year. On April 19, 2024, the Company entered into the First Amendment to the Operating Agreement of 55 Walkers Brook Drive Venture, LLC, which among other terms, increased the preferred dividends accrual percentage to 13%.

Upon the occurrence of an event of default, such as if the Company were to default on its outstanding debt for this property, not make minimum dividend payments, not redeem the preferred interests on the mandatory redemption date, or sell substantially all the assets or transfer more than fifty percent of the equity interests to a separate company, the dividend percentage will be increased to the lesser of 15% or the highest per year interest rate permitted under the law.

On an annual basis, regardless of whether the Company has available positive cash flow, one twelfth of a minimum dividend is payable in each twelve-month period from the date of the issuance of the contribution. This minimum dividend is defined as the total amount of contributed capital made by the investor multiplied by the annual preferred dividend interest rate of 13% per year.

Prior to the dissolution of the 55 Walkers Brook Drive Venture, LLC and the commencement of the liquidation of its assets, the operating cash flow of the legal entity that owns this property are distributed first to the preferred equity holder until all capital contributions and accrued preferred dividend interest are repaid, and any remaining amounts are distributed to the common members.

The preferred equity was redeemable at the option of the holders on the fifth anniversary of the date of issuance, or December 20, 2023, which was amended as part of the First Amendment to the Operating Agreement of 55 Walkers Brook Drive Venture, LLC to be April 19, 2027, and accounted for as a liability on the condensed combined consolidated balance sheets. The preferred equity balances as of September 30, 2025 and December 31, 2024 were equal to the amount due to the investor, including the initial investment, plus any accrued but unpaid dividends, plus an amount equal to the excess of 140% of the initial capital contribution over the sum of all distributions made to the third-party investor, plus any amounts outstanding relating to any additional loans made by the third-party investor on the date of redemption, or a total of $7,064,659 and $6,802,348 as of September 30, 2025 and December 31, 2024, respectively.

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**Note 7: Commitments and Contingencies**

*Litigation*

The Company, from time to time, is subject to legal proceedings and claims that arise in the ordinary course of business. Resolution of any such matter could have a material adverse effect on the results of operations and financial condition. The Company considers all claims on a periodic basis and based on known facts assesses whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, the Company then evaluates disclosure requirements and whether to accrue for such claims in its unaudited condensed combined consolidated financial statements.

The Company records a provision for a contingent liability when it is both probable that a loss has been incurred, and the amount of the loss can be reasonably estimated. In the opinion of the Company, there are no legal proceedings pending against or involving the Company whose outcome is likely to have a material adverse effect upon the Company's financial position or results of operations.

*Environmental Matters*

The Company is not aware of any environmental claims existing as of September 30, 2025, that have not been provided for or would otherwise have a material impact on its financial position, results of operations, or liquidity. There can be no assurance, however, that current regulatory requirements will not change or past non-compliance with environmental laws will not be discovered on the Company's properties.

*Commitments*

The Company guarantees from time-to-time obligations of its wholly-owned subsidiaries.

*Contingencies*

The Company's operating results and financial condition are dependent on the ability of its tenants to meet their lease obligations. Although the amount of rent that the Company receives from its tenants is not dependent on the tenants' operating results, the tenants' ability to fulfill their lease obligations, including the payment of rent, could be adversely affected if the Company's tenants encountered significant financial difficulties.

**Note 8: Concentrations of Risk**

As of September 30, 2025 and December 31, 2024, the Company owned one property in both Massachusetts and Pennsylvania, not including its ownership in its equity-method investment. Accordingly, there is a geographic concentration of risk subject to economic conditions in certain states.

For the nine months ended September 30, 2025, there were four tenants that made up more than 10% of total unaudited condensed combined consolidated revenue. For the nine months ended September 30, 2025, tenant A represented 30.2% of total revenue, tenant B represented 14.3% of total revenue, tenant C represented 14.9% of total revenue, and tenant D represented 10.1% of total revenue. For the nine months ended September 30, 2024, tenant A represented 25.2% of total revenue, tenant B represented 11.7% of total revenue, and tenant C represented 14.0% of total revenue. Tenant D did not represent greater than 10% of total unaudited condensed combined consolidated revenue during the nine months ended September 30, 2024.

Rental revenues, as a percentage of the total recognized for the nine months ended September 30, 2025 and 2024 were the following by property:

---

| | | |
|:---|:---|:---|
|  | **For the<br> nine months ended<br> September 30,** | **For the<br> nine months ended<br> September 30,** |
|  | **2025** | **2024** |
| 55 Walkers Brook Road (Reading, Massachusetts) | 76% | 63% |
| 165 Township Line Road (Jenkintown, Pennsylvania) | 24% | 37% |

---

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**Note 9: Equity-Method Investment**

Pursuant to the TIC Agreement, each TIC interest holder is responsible for its pro-rata share of contributions which may be required thereunder in connection with the ownership, operation, management, and maintenance of the commonly held property, and each TIC interest holder is entitled to receive its pro-rata share of applicable revenues and proceeds derived from the commonly held property in accordance with the terms thereof. Furthermore, all tenants-in-common hold an individual, undivided ownership interest in the property. Undivided ownership interests are arrangements in which two or more parties jointly own the property and the title is held individually to the extent of each party's interest.

The Company accounts for its 26.6% ownership interest in Napa Square under the equity method of accounting. The value of its equity method investment was $9,094,890 and $9,110,917 as of September 30, 2025 and December 31, 2024, respectively. The Company recognized losses on its equity method investment during the nine months ended September 30, 2025 and 2024 of $16,027 and $91,684, respectively. The Company received no distributions of capital from its equity method investment during the nine months ended September 30, 2025 and 2024.

Summarized financial information as of September 30, 2025 and December 31, 2024 and for the nine months ended September 30, 2025 and 2024 for the Company's equity method investment was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the<br> nine months ended<br> September 30,** | **For the<br> nine months ended<br> September 30,** |
|  | **2025** | **2024** |
| Gross revenues | $2223914 | $2117932 |
| Loss (income) from continuing operations | (615438) | (338513) |
| Net loss | 60252 | 344678 |
| Net loss attributable to Joss Realty | $16027 | $91684 |

---

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Current assets | $2956659 | $2810831 |
| Noncurrent assets | 29833116 | 29899031 |
| Current liabilities | $464257 | $324090 |
| Noncurrent liabilities | 22300000 | 22300000 |

---

**Note 10: Property Management Agreements**

The Company enters into property management agreements with independent third parties. Under these property management agreements, the property manager is to operate and manage the property and to maximize the income derived from the property. Furthermore, the property manager is to collect all rents associated with any tenants within the properties owned by the Company. The Company continues to have the authority to make all major policy and operational decisions relating to the operations of the property. The property managers are required to prepare and submit operating budgets, capital budgets, maintenance plans, repair, maintenance, and leasing of the property for each annual period. The Company is required to approve the budgets prior to execution. As compensation under this agreement, the Company pays a monthly fee, normally calculated as a minimum of monthly gross collections from tenants of the property and further sometimes includes a minimum required monthly fee.

Total costs associated with the Company's property management agreements for the nine months ended September 30, 2025 and 2024 were $91,314 and $113,102, respectively, included within management fees in the unaudited condensed combined consolidated statements of operations.

**Note 11: Subsequent Events**

The Company has completed an evaluation of all subsequent events to ensure that these unaudited condensed combined consolidated financial statements include appropriate disclosure of events both recognized in the unaudited condensed combined consolidated financial statements and events which occurred but were not recognized in the unaudited condensed combined consolidated financial statements. No subsequent events were identified other than those disclosed in the above as of the date that these financial statements were issued.

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**NAPA SQUARE**

**For the years ended December 31, 2024 and 2023**

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**NAPA SQUARE**

**Table of Contents**

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| | |
|:---|:---|
| [Independent Auditor's Report](#d_001) | F-60 |
| [Balance Sheets](#d_002) | F-62 |
| [Statements of Operations](#d_003) | F-63 |
| [Statements of Changes in Members' Equity](#d_004) | F-64 |
| [Statements of Cash Flows](#d_005) | F-65 |
| [Notes to Financial Statements](#d_006) | F-66 – F-71 |

---

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*Independent Auditor's Report*

To Management of Napa Square

**Report on the Audit of the Financial Statements**

***Opinion***

We have audited the financial statements of the property located at 1401-1485 1st Street, Napa, CA ("Napa Square" or the "Property"), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, changes in members' equity, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Napa Square as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

We conducted our audits in accordance with auditing standards generally accepted in the United States of America ("GAAS"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Napa Square and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

***Substantial Doubt About the Property's Ability to Continue as a Going Concern***

The accompanying financial statements have been prepared assuming that the Property will continue as a going concern. As discussed in Note 1 to the financial statements, the Property has suffered recurring losses from operations and the Property's debt matures in less than 12 months from the date the financial statements are available to be issued. Accordingly, substantial doubt exists about the Property's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

***Responsibilities of Management for the Financial Statements***

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Napa Square's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.

***Auditor's Responsibilities for the Audit of the Financial Statements***

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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In performing an audit in accordance with GAAS, we:

● Exercise professional judgment and maintain professional skepticism throughout the audit.

● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Napa Square's internal control. Accordingly, no such opinion is expressed.

● Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

● Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Napa Square's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

/s/ CohnReznick LLP

New York, New York

July 14, 2025

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**NAPA SQUARE**

**BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **ASSETS** |  |  |
| Investment in real estate: |  |  |
| &nbsp;&nbsp;&nbsp;Land and improvements | $8037352 | $8037352 |
| &nbsp;&nbsp;&nbsp;Buildings and improvements | 26475552 | 26404927 |
| &nbsp;&nbsp;&nbsp;Tenant improvements | 2989726 | 2916871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments in real estate | 37502630 | 37359150 |
| &nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | (7603599) | (7057103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in real estate, net | 29899031 | 30302047 |
| Cash | 1324535 | 1400994 |
| Restricted cash | 815836 | 803267 |
| Tenant receivables | 14282 | 77644 |
| Deferred rent receivables | 187045 | 156611 |
| Prepaid expenses and other assets | 469133 | 403257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $32709862 | $33143820 |
| **LIABILITIES, PREFERRED EQUITY AND MEMBERS' EQUITY** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Mortgage notes payable, net | $22300000 | $22300000 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 249013 | 284530 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 75077 | 75077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 22624090 | 22659607 |
| Commitments and contingencies (Note 6) |  |  |
| Members' equity |  |  |
| Total members' equity | 10085772 | 10484213 |
| Total liabilities and members' equity | $32709862 | $33143820 |

---

*The accompanying notes are an integral part of these financial statements.*

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**NAPA SQUARE**

**STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **For the<br> years ended<br> December 31,** | **For the<br> years ended<br> December 31,** |
|  | **2024** | **2023** |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;Rental revenues | $2802961 | $2588717 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Property operating expenses | 591141 | 564975 |
| &nbsp;&nbsp;&nbsp;Real estate taxes | 420513 | 444633 |
| &nbsp;&nbsp;&nbsp;Repairs and maintenance | 159362 | 200973 |
| &nbsp;&nbsp;&nbsp;Management fees | 46752 | 46752 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 415422 | 193688 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 634668 | 648073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 2267858 | 2099094 |
| &nbsp;&nbsp;&nbsp;Income from operations | 535103 | 489623 |
| &nbsp;&nbsp;&nbsp;Other expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 933544 | 926044 |
| &nbsp;&nbsp;&nbsp;Net loss | $(398441) | $(436421) |

---

*The accompanying notes are an integral part of these financial statements.*

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**NAPA SQUARE**

**STATEMENTS OF CHANGES IN MEMBERS' EQUITY**

---

| | |
|:---|:---|
|  | **Members' <br> Equity** |
| **Balance as of December 31, 2022** | $10920634 |
| &nbsp;&nbsp;&nbsp;Net loss | (436421) |
| **Balance as of December 31, 2023** | 10484213 |
| &nbsp;&nbsp;&nbsp;Net loss | (398441) |
| **Balance as of December 31, 2024** | $10085772 |

---

*The accompanying notes are an integral part of these financial statements.*

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**NAPA SQUARE**

**STATEMENTS OF CASH FLOWS**

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| | | |
|:---|:---|:---|
|  | **For the <br> years ended <br> December 31,** | **For the <br> years ended <br> December 31,** |
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(398441) | $(436421) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 634668 | 648073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs |  | 150108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in current assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant receivables | 63362 | (41362) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred rent receivables | (30434) | 23721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (154048) | (328690) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (35517) | (104614) |
| Net cash provided by (used in) operating activities | 79590 | (89185) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Investments in real estate | (143480) | (48459) |
| Net cash used in investing activities | (143480) | (48459) |
| Decrease in cash and restricted cash | (63890) | (137644) |
| Cash and restricted cash, beginning of year | 2204261 | 2341905 |
| Cash and restricted cash, end of year | $2140371 | $2204261 |
| **Supplemental disclosures of cash flow information:** |  |  |
| Cash paid for interest | $900920 | $900920 |

---

*The accompanying notes are an integral part of these financial statements.*

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**NAPA SQUARE**

**NOTES TO FINANCIAL STATEMENTS**

**Note 1: Organization and Basis of Presentation**

*Organization*

As used herein, Napa Square (the "Property") refers to the operations of the property located at 1401 – 1485 1<sup>st</sup> Street, Napa, California. The Property was acquired by three separate investors in April of 2016 which operate under a tenancy-in-common arrangement. The Property has three separate tenants in common which have ownership interests in the Property as of December 31, 2024 and 2023:

● Joss Realty Partners B- 26.6%

● One Napa, LLC- 36.7%

● JNK Napa Square, LLC- 36.7%

The Property generates income through leasing space throughout this property.

*Basis of Presentation*

The Property's financial statements are presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). References to the "ASC" hereafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board ("FASB") as the source of authoritative U.S. GAAP.

*Liquidity and Operations*

The Property's financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business.

*Going Concern*

The Property incurred net losses of $398,441 and $436,421 for the years ended December 31, 2024 and 2023, respectively. Additionally, under its current debt agreements, the Property is required to repay its entire mortgage note on April 1, 2026, totaling $22,300,000. The Property's ability to fund its operations is dependent upon management's plans, which include raising capital through issuances of debt and equity securities and extending existing debt agreements. The Property cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. A failure to raise sufficient financing and/or extend existing debt agreements, among other factors, will adversely impact the Property's ability to meet its financial obligations as they become due and payable and to achieve its intended business objectives. Furthermore, there can be no assurance that the investors in the property will contribute incremental capital to the Property to fund its operations. Accordingly, based on the considerations discussed above, management has concluded there is substantial doubt as to the ability to continue as a going concern within one year after the date the financial statements are available to be issued.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities should the property be unable to continue as a going concern.

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**Note 2: Summary of Significant Accounting Policies**

*Use of Estimates*

Management is required to make estimates and assumptions in the preparation of the financial statements in conformity with U.S. GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from management's estimates. Significant estimates include revenue recognition, the various useful lives of depreciable and amortizable assets, and the evaluation of the Property's investment properties for impairment.

*Investment Property*

The Property records investment properties and related intangibles at cost less accumulated depreciation and amortization. Investment properties include both acquired and constructed assets. Improvements and major repairs and maintenance are capitalized when the repair and maintenance substantially extend the useful life, increases capacity, or improves the efficiency of the asset. All other repair and maintenance costs are expensed as incurred. The Property capitalizes interest on projects during periods of construction until the projects reach the completion point that corresponds with their intended purpose. The Property did not capitalize any interest during the years ended December 31, 2024 and 2023.

The Property accounts for investment properties that it has acquired using the asset acquisition method. The Property allocates the purchase price of acquisitions to the various components of the acquisition based upon the fair value of each component which may be derived from various observable or unobservable inputs and assumptions. Also, the Property may utilize third-party valuation specialists. These components typically include buildings, land, and any intangible assets related to in-place leases the Property determines to exist.

The Property records depreciation on buildings and building improvements utilizing the straight-line method over the estimated useful life of the asset. The Property reviews depreciable lives of investment properties periodically and makes adjustments to reflect a shorter economic life, when necessary. Tenant improvements are amortized utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. The useful lives of the Property's assets ranges based upon the type of asset, as outlined below:

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| | |
|:---|:---|
|  | **Useful life** |
| Buildings | 50 years |
| Building improvements | 1 to 14 years |
| Tenant improvements | Shorter of lease term or occupancy term of tenant |

---

The Property is reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of investment properties may not be recoverable. These circumstances include, but are not limited to, declines in the property's cash flows, occupancy, and fair market value. The Property measures any impairment of investment property when the estimated undiscounted operating income before depreciation and amortization, plus its residual value, is less than the carrying value of the property. To the extent impairment has occurred, the Property charges to income the excess of carrying value of the property over its estimated fair value. The Property estimates fair value using unobservable data such as operating income, estimated capitalization rates, or multiples, leasing prospects, and local market information. The Property may decide to sell properties that are held for use and the sale prices of these properties may differ from their carrying values. No properties were sold, and no impairments were recognized during the years ended December 31, 2024 and 2023.

Depreciation expense for the years ended December 31, 2024 and 2023 was $634,668 and $648,073, respectively.

*Cash*

The Property maintains its cash in bank deposit accounts. Cash is held by financial institutions and are federally insured up to certain limits. At times, the Property's cash balance exceeds the federally insured limits. The Property's management believes that the Property is not exposed to significant credit risk due to the financial position of the financial institutions in which the Property's cash is held.

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*Restricted Cash*

Restricted cash primarily consists of amounts held by mortgage lenders and the Property to provide for real estate tax expenditures, tenant improvements, capital expenditures and security deposits, as well as escrow accounts related to principal and interest payments on bonds.

*Leasing Commissions*

Leasing commissions represent payments made to third parties for services directly relating to securing lease agreements. Initial incremental costs that would not have been incurred if the lease had not been obtained are capitalized and amortized. These leasing commissions are recorded as a component of Prepaid expenses and other current assets within the Property's balance sheet. Total amortization expense for leasing commission for the years ended December 31, 2024 and 2023 were $88,172 and $101,426, respectively and are included in Prepaid expenses and other assets within the balance sheets.

*Revenue Recognition*

As a lessor, the Property's leases with tenants generally provide for the lease of real estate properties, as well as common area maintenance, property taxes and other recoverable costs. Under ASC Topic 842, *Leases,* the lease of space is considered a lease component while the common area maintenance, property taxes and other recoverable costs billings are considered non lease components, which fall under revenue recognition guidance in accordance with ASC Topic 606, *Revenue Recognition*. However, the Property determined that its tenant leases met the criteria to apply the practical expedient provided by ASC 842 to recognize the lease and non-lease components together as one single component. This conclusion was based on the consideration that (1) the timing and pattern of transfer of the non-lease components and associated lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease. As the lease of properties is the predominant component of the Property's leasing arrangements, it accounted for all lease and non-lease components as one-single component under ASC 842.

The Property recognizes rental income from tenants under operating leases on a straight-line basis over the noncancelable term of the lease when collectability of such amounts is reasonably assured. Recognition of rental income on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. If the lease provides for tenant improvements, management determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Property. Recognizing income on a straight-line basis requires the Property to calculate the total non-contingent rent containing specified rental increases over the life of the lease and to recognize the revenue evenly over that life. This method results in rental income in the early years of a lease being higher than actual cash received, creating a straight-line rent receivable asset included in the balance sheets within the caption "Deferred rent receivables". At some point during the lease, depending on its terms, the cash rent payments eventually exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. The Property assesses the collectability of straight-line rent in accordance with the applicable accounting standards and reserve policy. If the lessee becomes delinquent in rent owed under the terms of the lease, the Property may provide a reserve against the recognized straight-line rent receivable asset for a portion, up to its full value, that the Property estimates may not be recoverable.

The tenant is considered to have taken physical possession or have control of the physical use of the leased asset when the tenant obtains access to the leased property. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to:

● whether the lease stipulates how a tenant improvement allowance may be spent;

● whether the amount of a tenant improvement allowance is in excess of market rates;

● whether the tenant or landlord retains legal title to the improvements at the end of the lease term;

● whether the tenant improvements are unique to the tenant or general-purpose in nature; and

● whether the tenant improvements are expected to have any residual value at the end of the lease.

Tenant reimbursements of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period the expenses are incurred and presented gross if the Property is the primary obligor and, with respect to purchasing goods and services from third-party suppliers, has discretion and control in selecting the supplier and bears the associated credit risk. In instances where the operating lease agreement has an early termination option, the termination penalty is based on a predetermined termination fee or based on the unamortized tenant improvements and leasing commissions.

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*Debt Issuance Costs*

Debt issuance costs related to debt instruments are deferred, recorded as a reduction of the related debt liability, and amortized to interest expense over the remaining term of the related debt liability utilizing the interest method.

*Segment Reporting*

We currently operate as one segment, which is also our sole reportable segment. Our chief operating decision maker ("CODM") is the Chief Executive Officer of JOSS Realty Partners B, LLC. We generate our revenue primarily from the leasing of the Property's properties to tenants. The CODM evaluates performance and allocates resources based on net income (loss). Our net income (loss) is primarily derived through the difference in rental revenue, property operating expenses, real estate taxes, repairs and maintenance, management fees, depreciation and amortization, and interest expense. Accordingly, property operating expenses, real estate taxes, repairs and maintenance, management fees, depreciation and amortization, and interest expense, as reported on our statements of operations, represent the Property's most significant segment expenses. Additionally, the measure of segment assets is reflected on the balance sheets as total assets.

The CODM uses net income (loss) to make key operating decisions, such as identifying attractive real estate investment opportunities, evaluating the performance of the Property's real estate assets, and deciding on the sources of financing.

*Income Taxes*

The Property is operated in accordance with a tenancy-in-common agreement and is not subject to tax and any tax liability is the responsibility of the members of the Property. Accordingly, no provision for federal and state income taxes is included in the financial statements for the years ended December 31, 2024 and 2023.

The Property follows ASC Subtopic 740-10, *Accounting for Uncertainty in Income Taxes*, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. As of December 31, 2024, the Property had no material uncertain tax positions to be accounted for in the financial statements. In the event that the Property is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense.

*Recently Issued Accounting Pronouncements*

In December 2023, the FASB issued Accounting Standards Update 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The standard requires entities to disclose additional categories about federal, state and foreign income taxes in the effective tax rate reconciliation as well as provide annual income taxes paid disaggregated by federal, state and foreign taxes. The standard is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Property is evaluating the impact of adopting this standard on its financial statements and related disclosures.

*Recently Adopted Accounting Pronouncements*

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, *Measurement of Credit Losses on Financial Instruments* ("ASU 2016-13"). ASU 2016-13 is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments held by financial institutions and other organizations. The amendments in ASU 2016-13 eliminate the "probable" initial threshold for recognition of credit losses in current accounting guidance and, instead, reflect an entity's current estimate of all expected credit losses. Previously, when credit losses were measured under current accounting guidance, an entity generally only considered past events and current conditions in measuring the incurred loss. The amendments in ASU 2016-13 broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss. A reporting entity is required to apply the amendments in ASU 2016-13 using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Adoption of ASU 2016-13 on January 1, 2023, was not material to the Property's financial position and results of operations.

In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure*. The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments. The Property adopted ASU No. 2023-07 beginning in 2024. Upon adoption, the guidance was applied retrospectively to all prior periods presented in the financial statements.

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**Note 3: Cash and Restricted Cash**

The following table presents the Property's cash and restricted cash:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Cash | $1324535 | $1400994 |
| Restricted cash | 815836 | 803267 |
| &nbsp;&nbsp;&nbsp;Total | $2140371 | $2204261 |

---

**Note 4: Leases as a Lessor**

As of December 31, 2024, the Property had leased 16 properties to tenant/operators at each of its properties. As of December 31, 2023 the Property leased 15 properties.

As of December 31, 2024, total future minimum rental revenues for the Property's tenants are as follows:

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| | |
|:---|:---|
| **Year ending December 31,** | |
| &nbsp;&nbsp;&nbsp;2025 | $1817164 |
| &nbsp;&nbsp;&nbsp;2026 | 1463798 |
| &nbsp;&nbsp;&nbsp;2027 | 1332622 |
| &nbsp;&nbsp;&nbsp;2028 | 922977 |
| &nbsp;&nbsp;&nbsp;2029 | 434733 |
| Thereafter | 422151 |
| Total | $6393445 |

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**Note 5: Mortgage Notes Payable, Net**

On March 4, 2016, the Property's three investors executed a promissory note (the "Napa Square Promissory Note") with JP Morgan Chase for a total principal of $22,300,000. The Napa Square Promissory Note accrues interest annually at a fixed rate of 4.04% per year. Payment of interest is payable monthly until the maturity date, April 1, 2026, on which date the principal and any outstanding interest is due. The total amount due as of December 31, 2024 and 2023 relating to the Napa Square Promissory Note was $22,300,000.

Minimum payments relating to the Property's mortgage notes payable consist of:

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| | |
|:---|:---|
| **Year ending December 31,** | |
| &nbsp;&nbsp;&nbsp;2025 | $- |
| &nbsp;&nbsp;&nbsp;2026 | 22300000 |
| Total | $22300000 |

---

**Note 6: Commitments and Contingencies**

*Litigation*

The Property, from time to time, is subject to legal proceedings and claims that arise in the ordinary course of business. Resolution of any such matter could have a material adverse effect on the results of operations and financial condition. The Property considers all claims on a periodic basis and based on known facts assesses whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, the Property then evaluates disclosure requirements and whether to accrue for such claims in its financial statements.

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The Property records a provision for a contingent liability when it is both probable that a loss has been incurred, and the amount of the loss can be reasonably estimated. In the opinion of the Property, there are no legal proceedings pending against or involving the Property whose outcome is likely to have a material adverse effect upon the Property's financial position or results of operations.

*Environmental Matters*

The Property is not aware of any environmental claims existing as of December 31, 2024 and 2023, that have not been provided for or would otherwise have a material impact on its financial position, results of operations, or liquidity. There can be no assurance, however, that current regulatory requirements will not change or past non-compliance with environmental laws will not be discovered on the Property's properties.

*Commitments*

The Property is not aware of any commitments that existed as of December 31, 2024 and 2023 that have not been provided for or would otherwise have a material impact on its financial position, results of operations, or liquidity.

*Contingencies*

The Property's operating results and financial condition are dependent on the ability of its tenants to meet their lease obligations. Although the amount of rent that the Property receives from its tenants is not dependent on the tenants' operating results, the tenants' ability to fulfil their lease obligations, including the payment of rent, could be adversely affected if the Property's tenants encountered significant financial difficulties.

**Note 7: Concentrations of Risk**

As of December 31, 2024, the Property operated one property in Napa, California. Accordingly, there is a geographic concentration of risk subject to economic conditions in that state.

For the year ended December 31, 2024, there were three tenants that made up more than 10% of total revenue. For the year ended December 31, 2024, tenant A represented 13% of total revenue, tenant B represented 12% of total revenue, and tenant C represented 17% of total revenue. For the year ended December 31, 2023, tenant A did not represent greater than 10% of total revenue, tenant B represented 12% of total revenue, tenant C represented 17% of total revenue, and another tenant, tenant D, represented 11% of total revenue.

**Note 8: Property Management Agreements**

The Property enters into property management agreements with independent third parties. Under these property management agreements, the property manager is to operate and manage the property and to maximize the income derived from the property. Furthermore, the property manager is to collect all rents associated with any tenants within the properties owned by the Property. The Property continues to have the authority to make all major policy and operational decisions relating to the operations of the property. The property managers are required to prepare and submit operating budgets, capital budgets, maintenance plans, repair, maintenance, and leasing of the property for each annual period. The Property is required to approve the budgets prior to execution. As compensation under this agreement, the Property pays a monthly fee, normally calculated as a minimum of monthly gross collections from tenants of the property and further sometimes includes a minimum required monthly fee.

Total costs associated with the Property's property management agreements were $46,752 for both the years ended December 31, 2024 and 2023, and are included within management fees in the statements of operations.

**Note 9: Subsequent Events**

The Property has completed an evaluation of all subsequent events through July 14, 2025, the date the financial statements are available to be issued, to ensure that these financial statements include appropriate disclosure of events both recognized in the financial statements and events which occurred but were not recognized in the financial statements. No subsequent events were identified that would have a material impact on the Property's financial statements.

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**APPENDIX A**

**PRIOR PERFORMANCE TABLES**

The following unaudited prior performance tables disclose certain information relating to the performance, operations and investment for certain real estate investment vehicles sponsored or managed by JOSS and its affiliates.

This information should be read together with the summary information included in the "Prior Performance Summary" section of this prospectus.

By purchasing shares in this offering, you will not acquire any ownership interest in any prior JOSS real estate vehicle to which the information in this section relates and you should not assume that you will experience returns, if any, comparable to those experienced by the investors in the prior vehicles discussed. Further, each of the prior JOSS real estate vehicles discussed in this Appendix A was conducted through privately held entities that were subject neither to the up-front commissions, fees and other expenses associated with this offering nor to all of the laws and regulations that will apply to us as a publicly offered REIT. During the past five years, JOSS has managed or continues to manage the following programs:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property Name** | **Location** | **Type** | **Sq. Ft.** | **Year Acquired** | **Purchase Price** | **Year Sold** | **Sale Price** | **Investment Objective** | **# of Investors** | **% of Portfolio** |
| Stable Square | Philadelphia, PA | Mixed Use Residential/Retail | 27760 | 2023 | $11.18M | N/A | N/A | Reposition fully occupied property, convert office to residential, re-lease retail at market for cash flow and long-term value | 31 | 2.6% |
| 1700-04 Frankford | Philadelphia, PA | Mixed Use Residential/Retail | 15903 | 2022 | $2.60M | N/A | N/A | Develop boutique mixed-use in a qualified opportunity zone, 12 apartments, 5,000 square foot retail, leverage tax/neighborhood demand for income and value | 21 | 0.6% |
| 1322 Frankford | Philadelphia, PA | Retail | 2624 | 2021 | $1.70M | N/A | N/A | Acquire a stabilized fully leased retail property with two commercial spaces to generate consistent income and long-term value appreciation | 11 | 0.4% |
| 2002-2004 Frankford | Philadelphia, PA | Mixed Use Residential/Retail | 5805 | 2021 | $1.08M | N/A | N/A | Develop mixed-use, 5 apartments, 2,200 square foot retail, leverage tax benefits, demand for returns and value | 12 | 0.3% |
| 2020 Frankford | Philadelphia, PA | Mixed Use Residential/Retail | 16090 | 2021 | $1.74M | N/A | N/A | Develop mixed-use with 16 apartments, 4,700 square foot retail, leverage opportunity zone, market demand for strong returns and value | 19 | 0.4% |
| Queen Village | Philadelphia, PA | Mixed Use Residential/Retail | 17150 | 2021 | $2.45M | N/A | N/A | Develop mixed-use with 16 apartments and ground-floor retail, leverage scarce land, tax incentives, and strong demand drivers to deliver outsized risk-adjusted returns | 22 | 0.6% |

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**TABLE I**

**EXPERIENCE IN RAISING AND INVESTING FUNDS**

Table I provides a summary of the experience of JOSS in raising and investing funds in real estate vehicles for which the offerings have closed during the past three years. JOSS has no other real estate vehicles with similar investment objectives to ours that have closed within the last three years.

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| | |
|:---|:---|
|  | **Stable<br> Square** |
| Dollar amount offered | $6000000 |
| Dollar amount raised | $6000000 |
| Total acquisition cost | $11175000 |
| Date offering began | 6/28/23 |
| Length of offering (in months) | 3 |
| Months to invest 90% of amount available for investment (measured from beginning of offering) | 1 |

---

**TABLE II**

**COMPENSATION TO SPONSOR**

Table II provides a summary of certain information regarding the compensation paid to JOSS from real estate vehicles for which the offerings have closed during the past three years. JOSS has no other real estate vehicles with similar investment objectives to ours that have closed within the last three years.

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| | | |
|:---|:---|:---|
|  | **Stable<br> Square** | **Other<br> Programs** |
| Date offering commenced | 9/15/23 |  |
| Dollar amount raised | $6000000 |  |
| Aggregate compensation paid or reimbursed to the sponsor or its affiliates | $202386 | $249323<sup>(1)</sup> |

---

(1) Consists of an aggregate of $193,625 in acquisition fees and $55,698 in asset management fees from four programs (Stable Square, 1700-04
Frankford, 1322 Frankford and 2002-2004 Frankford) for the fiscal years ended December 31, 2022, 2023 and 2024.

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**TABLE III**

**OPERATING RESULTS OF PRIOR PROGRAMS**

Table III summarizes the operating results of JOSS' prior five vehicles that have had offerings close during the five-year period. JOSS has no other real estate vehicles with similar investment objectives to ours that have closed within the last five years.

 **JOSS REALTY PARTNERS** 

 **Stable Square** 

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Gross Revenues | 780008 | 195620 |
| Profit on sale of properties |  |  |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Operating expenses | 481906 | 164571 |
| &nbsp;&nbsp;&nbsp; Interest expense | 689951 | 197025 |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization | 911838 | 407763 |
| Net Income (loss): |  |  |
| &nbsp;&nbsp;&nbsp; from operations | (1303687) | (573739) |
| &nbsp;&nbsp;&nbsp; from gain on sale |  |  |
| Cash generated from operations | 1338752 | 539018 |
| Cash generated from sales |  |  |
| Cash generated from refinancing | 386008 | 13100000 |
| Cash generated from operations, sales and refinancing | 1724760 | 13639018 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Cash distributions to investors | (35000) |  |
| &nbsp;&nbsp;&nbsp; from operating cash flow | (1871426) | (1130015) |
| &nbsp;&nbsp;&nbsp; from sales | (404206) | (11762175) |
| &nbsp;&nbsp;&nbsp; from refinancing |  |  |
| Cash generated (deficiency) after cash distributions | (585872) | 746828 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Special items (not including sales and refinancing) |  |  |
| Cash generated (deficiency) after cash distributions and special items | (585872) | 746828 |
| *Tax and Distribution Data Per $1000 Invested* |  |  |
| Federal Income Tax Results: |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from operations | $(1112.85) | $(498.74) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from recapture | $- | $- |
| &nbsp;&nbsp;&nbsp; Capital gain (loss) | $- | $- |
| Cash Distributions to Investors Source (on GAAP basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment income | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return of capital | N/A | N/A |
| &nbsp;&nbsp;&nbsp; Source (on cash basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refinancing | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | $- | $- |
| Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the Table (original total acquisition cost of properties retained divided by original total acquisition cost of all properties in program). | 100% | 100% |

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 **JOSS REALTY PARTNERS** 

 **1700 Frankford** 

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Gross Revenues | 5493 | 404 |
| Profit on sale of properties |  |  |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization |  |  |
| Net Income: |  |  |
| &nbsp;&nbsp;&nbsp; from operations<sup>(1)</sup> | 5493 | 404 |
| &nbsp;&nbsp;&nbsp; from gain on sale |  |  |
| Cash generated from operations | 109408 | 125357 |
| Cash generated from sales |  |  |
| Cash generated from refinancing | 3649179 | 729883 |
| Cash generated from operations, sales and refinancing | 3758587 | 855240 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Cash distributions to investors |  |  |
| &nbsp;&nbsp;&nbsp; from operating cash flow |  | (1810) |
| &nbsp;&nbsp;&nbsp; from sales | (3704023) | (921798) |
| &nbsp;&nbsp;&nbsp; from refinancing |  |  |
| Cash generated (deficiency) after cash distributions | 54564 | (68368) |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Special items (not including sales and refinancing) |  |  |
| Cash generated (deficiency) after cash distributions and special items | 54564 | (68368) |
| *Tax and Distribution Data Per $1000 Invested* |  |  |
| Federal Income Tax Results: |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from operations | $5.49 | $0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from recapture | $- | $- |
| &nbsp;&nbsp;&nbsp; Capital gain (loss) | $- | $- |
| Cash Distributions to Investors Source (on GAAP basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment income | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return of capital | N/A | N/A |
| &nbsp;&nbsp;&nbsp; Source (on cash basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refinancing | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | $- | $- |
| Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the Table (original total acquisition cost of properties retained divided by original total acquisition cost of all properties in program). | 100% | 100% |

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<sup>(1)</sup> - Interest income

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 **JOSS REALTY PARTNERS** 

 **1322 Frankford** 

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Gross Revenues | 193384 | 146574 |
| Profit on sale of properties |  |  |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Operating expenses | 44083 | 37949 |
| &nbsp;&nbsp;&nbsp; Interest expense | 60348 | 54628 |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization | 86760 | 213498 |
| Net Income: |  |  |
| &nbsp;&nbsp;&nbsp; from operations | 2193 | (159501) |
| &nbsp;&nbsp;&nbsp; from gain on sale |  |  |
| Cash generated from operations | 89943 | 396109 |
| Cash generated from sales |  |  |
| Cash generated from refinancing |  |  |
| Cash generated from operations, sales and refinancing | 89943 | 396109 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Cash distributions to investors | (39009) |  |
| &nbsp;&nbsp;&nbsp; from operating cash flow | (213384) | (159501) |
| &nbsp;&nbsp;&nbsp; from sales |  | (72000) |
| &nbsp;&nbsp;&nbsp; from refinancing | (38124) | (189305) |
| Cash generated (deficiency) after cash distributions | (200574) | (24697) |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Special items (not including sales and refinancing) |  |  |
| Cash generated (deficiency) after cash distributions and special items | (200574) | (24697) |
| *Tax and Distribution Data Per $1000 Invested* |  |  |
| Federal Income Tax Results: |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from operations | $2.19 | $(159.54) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from recapture | $- | $- |
| &nbsp;&nbsp;&nbsp; Capital gain (loss) |  |  |
| Cash Distributions to Investors Source (on a GAAP basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment income | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return of capital | N/A | N/A |
| &nbsp;&nbsp;&nbsp; Source (on cash basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refinancing | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations | $41.61 | $170.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | $- | $- |
| Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the Table (original total acquisition cost of properties retained divided by original total acquisition cost of all properties in program). | 100% | 100% |

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 **JOSS REALTY PARTNERS** 

 **2002-2004 Frankford** 

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Gross Revenues | 236992 | 138548 |
| Profit on sale of properties |  |  |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Operating expenses | 86356 | 81537 |
| &nbsp;&nbsp;&nbsp; Interest expense | 71334 | 64403 |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization | 110121 | 69018 |
| Net Income: |  |  |
| &nbsp;&nbsp;&nbsp; from operations | (30819) | (76410) |
| &nbsp;&nbsp;&nbsp; from gain on sale |  |  |
| Cash generated from operations | 115619 | 69018 |
| Cash generated from sales |  |  |
| Cash generated from refinancing |  | 251003 |
| Cash generated from operations, sales and refinancing | 115619 | 320021 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Cash distributions to investors | (61200) |  |
| &nbsp;&nbsp;&nbsp; from operating cash flow | (48288) | (253785) |
| &nbsp;&nbsp;&nbsp; from sales |  | (262473) |
| &nbsp;&nbsp;&nbsp; from refinancing | (45321) |  |
| Cash generated (deficiency) after cash distributions | (39190) | (196237) |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Special items (not including sales and refinancing) |  |  |
| Cash generated (deficiency) after cash distributions and special items | (39190) | (196237) |
| *Tax and Distribution Data Per $1000 Invested* |  |  |
| Federal Income Tax Results: |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from operations | $(30.82) | $(76.41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from recapture | $- | $- |
| &nbsp;&nbsp;&nbsp; Capital gain (loss) |  |  |
| Cash Distributions to Investors Source (on a GAAP basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment income | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return of capital | N/A | N/A |
| &nbsp;&nbsp;&nbsp; Source (on cash basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refinancing | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations | $61.20 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | $- | $- |
| Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the Table (original total acquisition cost of properties retained divided by original total acquisition cost of all properties in program). | 100% | 100% |

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 **JOSS REALTY PARTNERS** 

 **2020 Frankford** 

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Gross Revenues |  | 221 |
| Profit on sale of properties |  |  |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization |  |  |
| Net Income: |  |  |
| &nbsp;&nbsp;&nbsp; from operations<sup>(1)</sup> |  | 221 |
| &nbsp;&nbsp;&nbsp; from gain on sale |  |  |
| Cash generated from operations | 4550 | 287745 |
| Cash generated from sales |  |  |
| Cash generated from refinancing | 2494811 | 1744912 |
| Cash generated from operations, sales and refinancing | 2499361 | 2032657 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Cash distributions to investors | 1250000 |  |
| &nbsp;&nbsp;&nbsp; from operating cash flow | (289447) |  |
| &nbsp;&nbsp;&nbsp; from sales | (2058034) | (1895550) |
| &nbsp;&nbsp;&nbsp; from refinancing | (1250000) |  |
| Cash generated (deficiency) after cash distributions | 151880 | 137107 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp; Special items (not including sales and refinancing) |  |  |
| Cash generated (deficiency) after cash distributions and special items | 151880 | 137107 |
| *Tax and Distribution Data Per $1000 Invested* |  |  |
| Federal Income Tax Results: |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from operations | $- | $0.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from recapture | $- | $- |
| &nbsp;&nbsp;&nbsp; Capital gain (loss) | $- | $- |
| Cash Distributions to Investors Source (on GAAP basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment income | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return of capital | N/A | N/A |
| &nbsp;&nbsp;&nbsp; Source (on cash basis) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refinancing | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | $- | $- |
| Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the Table (original total acquisition cost of properties retained divided by original total acquisition cost of all properties in program). | 100% | 100% |

---

<sup>(1)</sup> - Interest income

[**Table of Contents**](#toc)

 **JOSS REALTY PARTNERS** 

 **Table III Information** 

 **Supplemental Disclosures (Unaudited)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2023** | **2023** | **2023** | **2023** | **2023** |
|  | **1322**<br> **Frankford** | **Stable**<br> **Square** | **1700**<br> **Frankford** | **2020**<br> **Frankford** | **2002-2004**<br> **Frankford** | **1322**<br> **Frankford** | **Stable**<br> **Square** | **1700**<br> **Frankford** | **2020**<br> **Frankford** | **2002-2004**<br> **Frankford** |
| Gross revenues per Table III | 193384 | 780008 | 5493 |  | 236992 | 146574 | 195620 | 404 | 221 | 138548 |
| Straight-line adjustment | 10404 | (9049) | - |  | 5811 | 14040 | 31542 | - | - | 4842 |
| Gross revenues, adjusted | 203788 | 770959 | 5493 |  | 242803 | 160614 | 227162 | 404 | 221 | 143390 |
| Depreciation and amortization per Table III | 86760 | 911838 |  |  | 110121 | 213498 | 407763 |  |  | 69018 |
| Book vs tax adjustment | 20058 | (236222) | - |  | (24543) | (110605) | (209536) | - | - | 92 |
| Depreciation and amortization, adjusted | 106818 | 675616 | - |  | 85578 | 102893 | 198227 | - | - | 69110 |
| Net income (loss) per Table III | 2193 | (1303687) | 5493 |  | (30819) | (159501) | (573739) | 404 | 221 | (76410) |
| Straight-line revenue adjustment | 10404 | (9049) |  |  | 5811 | 14040 | 31542 |  |  | 4842 |
| Book vs tax depreciation and amortization adjustment | (20058) | 236222 | - |  | 24543 | 110605 | 209536 | - | - | (92) |
| Net income (loss), adjusted | (7461) | (1076514) | 5493 |  | (465) | (34856) | (332661) | 404 | 221 | (71660) |

---

[**Table of Contents**](#toc)

**3,000,000 Shares**

![](img_001.jpg)

**JOSS Realty REIT, Inc.**

**PRELIMINARY PROSPECTUS**

**D. Boral Capital**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**, 2026**

Until , 2026 (25 days after the date of this prospectus), all dealers that buy, sell or trade these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

[**Table of Contents**](#toc)

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

***Item 31. Other Expenses of Issuance and Distribution.***

The following table itemizes the expenses incurred by us in connection with the issuance and registration of the securities being registered hereunder. All amounts shown are estimates except for the SEC registration fee and the Financial Industry Regulatory Authority, Inc., or FINRA, filing fee and the NYSE American listing fee.

---

| | |
|:---|:---|
| SEC registration fee | $2858.67 |
| FINRA filing fee | 3105.00 |
| Stock exchange listing fee | 5000.00 |
| Legal fees and expenses | 2000000.00 |
| Printing and engraving expenses | 25000.00 |
| Transfer agent's fees and expenses | 6000.00 |
| Accounting fees and expenses | 1000000.00 |
| Miscellaneous | 20000.00 |
| &nbsp;&nbsp;&nbsp; Total | $3061963.67 |

---

***Item 32. Sales to Special Parties.***

None.

***Item 33. Recent Sales of Unregistered Securities.***

In April 2025, we have issued 100 shares of common stock to Larry Botel in exchange for an intention to invest $1,000 in cash as our initial capitalization. We will repurchase these shares at cost upon completion of this offering. Such issuance was exempt from the requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof.

In connection with the formation transactions, the operating partnership will issue OP units, with an aggregate value equal to approximately $6.0 million (based on the midpoint of the price range set forth on the cover page of the prospectus that forms a part of this registration statement).

In each case, the aforementioned securities issued as consideration in the formation transaction were issued in reliance on the exemption set forth in Section 4(a)(2) of the Securities Act.

***Item 34. Indemnification of Directors and Officers.***

Maryland law permits a Maryland corporation to include in its charter a provision eliminating the liability of its directors and officers to the corporation and its stockholders for money damages, except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty that is established by a final judgment and that is material to the cause of action. The charter of JOSS Realty REIT, Inc. (the "Company," "we," "us" and "our") contains a provision that eliminates the liability of our directors and officers to the maximum extent permitted by Maryland law.

[**Table of Contents**](#toc)

The Maryland General Corporation Law (the "MGCL") requires us (unless our 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 a party by reason of his or her service in that capacity. The MGCL permits us to indemnify our present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding unless it is established that:

● the act or omission of the director or officer was material to the matter giving rise to the proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty;

● the director or officer actually received an improper personal benefit in money, property or services; or

● in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful.

Under the MGCL, we may not indemnify a director or officer in a suit by us or on our behalf in which the director or officer was adjudged liable to us or in a suit in which the director or officer was adjudged liable on the basis that personal benefit was improperly received. 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 us or on our behalf, or for a judgment of liability on the basis that personal benefit was improperly received, is limited to expenses.

In addition, the MGCL permits us to advance reasonable expenses to a director or officer upon our 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 by us; and

● a written undertaking by or on behalf of the director or officer to repay the amount paid or reimbursed by us if it is ultimately determined that the director or officer did not meet the standard of conduct.

Our charter requires us, to the maximum extent permitted by Maryland law in effect from time to time, to indemnify and, without requiring a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse reasonable expenses in advance of final disposition of a proceeding to:

● any present or former director or officer who is made or threatened to be made a party to, or witness in, a proceeding by reason of his or her service in that capacity; or

● any individual who, while a director or officer of our Company and at our request, serves or has served as a director, officer, partner, trustee, member or manager of another corporation, real estate investment trust, limited liability company, partnership, joint venture, trust, employee benefit plan or any other enterprise and who is made or threatened to be made a party to, or witness in, the proceeding by reason of his or her service in that capacity.

Our charter also permits us, with the approval of our board of directors, to indemnify and advance expenses to any person who served a predecessor of ours in any of the capacities described above and to any employee or agent of our Company or a predecessor of our Company.

We intend to enter into indemnification agreements with each of our directors and executive officers that provide for indemnification to the maximum extent permitted by Maryland law.

In addition, our directors and officers may be entitled to indemnification pursuant to the terms of the partnership agreement of JOSS REIT Holdings, LP, our operating partnership.

[**Table of Contents**](#toc)

***Item 35. Treatment of Proceeds from Stock Being Registered.***

The consideration to be received by us from the securities registered hereunder will be credited to the appropriate capital account.

***Item 36. Financial Statements and Exhibits.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Financial Statements: see Index to Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Exhibits: The following exhibits are filed as part of, or incorporated by reference into, this registration statement on Form S-11:

---

| | |
|:---|:---|
| ^1.1 | [Form of Underwriting Agreement](https://www.sec.gov/Archives/edgar/data/2067746/000182912625008827/jossrealtyreit_ex1-1.htm) |
| ^3.1 | [Articles of Incorporation of JOSS Realty REIT, Inc.](https://www.sec.gov/Archives/edgar/data/2067746/000182912625007506/jossrealtyreit_ex3-1.htm) |
| ^3.2 | [Bylaws of JOSS Realty REIT, Inc.](https://www.sec.gov/Archives/edgar/data/2067746/000182912625007506/jossrealtyreit_ex3-2.htm) |
| 3.3 | [Form of Articles of Amendment and Restatement of JOSS Realty REIT, Inc., to be in effect upon the completion of this offering](jossrealtyreit_ex3-3.htm) |
| 3.4 | [Form of Amended and Restated Bylaws of JOSS Realty REIT, Inc., to be in effect upon the completion of this offering](jossrealtyreit_ex3-4.htm) |
| ^4.1 | [Form of Common Stock Certificate of JOSS Realty REIT, Inc.](https://www.sec.gov/Archives/edgar/data/2067746/000182912625008827/jossrealtyreit_ex4-1.htm) |
| ^5.1 | [Opinion of Clifford Chance US LLP](https://www.sec.gov/Archives/edgar/data/2067746/000182912625008827/jossrealtyreit_ex5-1.htm) |
| 8.1 | [Opinion of Clifford Chance US LLP with respect to tax matters](jossrealtyreit_ex8-1.htm) |
| ^10.1 | [Form of Partnership Agreement of JOSS REIT Holdings, LP, to be in effect upon the completion of this offering](https://www.sec.gov/Archives/edgar/data/2067746/000182912625008827/jossrealtyreit_ex10-1.htm) |
| ^10.2 | [Form of Indemnification Agreement between JOSS Realty REIT, Inc. and each of its directors and executive officers](https://www.sec.gov/Archives/edgar/data/2067746/000182912625007506/jossrealtyreit_ex10-2.htm) |
| †10.3 | [Form of Offer Letter between JOSS Realty REIT, Inc. and Larry Botel](jossrealtyreit_ex10-3.htm) |
| †10.4 | [Form of Offer Letter between JOSS Realty REIT, Inc. and Larry McCulley](jossrealtyreit_ex10-4.htm) |
| †10.5 | [JOSS Realty REIT, Inc. 2026 Equity Incentive Plan](jossrealtyreit_ex10-5.htm) |
| †10.6 | [Form of Restricted Stock Grant and Agreement for use under the JOSS Realty REIT, Inc. 2026 Equity Incentive Plan (Director Awards)](jossrealtyreit_ex10-6.htm) |
| †10.7 | [Form of Restricted Stock Grant and Agreement for use under the JOSS Realty REIT, Inc. 2026 Equity Incentive Plan](jossrealtyreit_ex10-7.htm) |
| 10.8 | [Amended and Restated Loan Agreement, dated as of April 19, 2024, between 55 Walkers Brook Drive Owner LLC and Rockland Trust Company](jossrealtyreit_ex10-8.htm) |
| 10.9 | [Construction Loan and Security Agreement, dated as of October 20, 2017, between 165 Township Line Road Owner LLC and Beneficial Bank](jossrealtyreit_ex10-9.htm) |
| 10.10 | [First Amendment to Construction Loan and Security Agreement, dated as of January 31, 2020, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-10.htm) |

---

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| 10.11 | [Second Amendment to Construction Loan and Security Agreement, dated as of October 24, 2024, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-11.htm) |
| 10.12 | [Third Amendment to Construction Loan and Security Agreement, dated as of April 8, 2025, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-12.htm) |
| 10.13 | [Fourth Amendment to Construction Loan and Security Agreement, dated as of July 21, 2025, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-13.htm) |
| 10.14 | [Fifth Amendment to Construction Loan and Security Agreement, dated as of October 15, 2025, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-14.htm) |
| 10.15 | [Sixth Amendment to Construction Loan and Security Agreement, dated as of November 20, 2025, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-15.htm) |
| 10.16 | [Open-End Mortgage and Security Agreement, dated as of October 20, 2017, between 165 Township Line Road Owner LLC and Beneficial Bank](jossrealtyreit_ex10-16.htm) |
| 10.17 | [Mortgage Note, dated as of October 20, 2017, between 165 Township Line Road Owner LLC and Beneficial Bank](jossrealtyreit_ex10-17.htm) |
| 10.18 | [First Amendment to Mortgage Note, dated as of October 24, 2024, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-18.htm) |
| 10.19 | [Second Amendment to Mortgage Note, dated as of April 8, 2025, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-19.htm) |
| 10.20 | [Third Amendment to Mortgage Note, dated as of July 21, 2025, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-20.htm) |
| 10.21 | [Fourth Amendment to Mortgage Note, dated as of October 15, 2025, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-21.htm) |
| 10.22 | [Fifth Amendment to Mortgage Note, dated as of November 20, 2025, between 165 Township Line Road Owner LLC and Wilmington Savings Fund Society, FSB](jossrealtyreit_ex10-22.htm) |
| 10.23 | [Deed of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement, dated as of March 4, 2016, by and between Napa Square Owner NY LLC, One Napa LLC, JNK Napa Square LLC, First American Title Insurance Company, and Insurance Strategy Funding II, LLC](jossrealtyreit_ex10-23.htm) |
| 10.24 | [Promissory Note, dated as of March 4, 2016, between Napa Square Owner NY LLC, One Napa LLC, JNK Napa Square LLC, and Insurance Strategy Funding II, LLC](jossrealtyreit_ex10-24.htm) |
| 10.25 | [Tenancy in Common Agreement, dated as of March 4, 2016, between Napa Square Owner NY LLC, One Napa LLC, and JNK Napa Square LLC](jossrealtyreit_ex10-25.htm) |
| 10.26 | [First Amendment of Tenancy in Common Agreement, dated as of March 4, 2016, between Napa Square Owner NY LLC, One Napa LLC, and JNK Napa Square LLC](jossrealtyreit_ex10-26.htm) |
| ^21.1 | [List of Subsidiaries of JOSS Realty REIT, Inc.](https://www.sec.gov/Archives/edgar/data/2067746/000182912625007506/jossrealtyreit_ex21-1.htm) |

---

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| 23.1 | [Consent of CohnReznick LLP as to the consolidated financial statements of JOSS Realty REIT, Inc.](jossrealtyreit_ex23-1.htm) |
| 23.2 | [Consent of CohnReznick LLP as to the consolidated financial statements of JOSS Realty](jossrealtyreit_ex23-2.htm) |
| 23.3 | [Consent of CohnReznick LLP as to the financial statements of Napa Square](jossrealtyreit_ex23-3.htm) |
| ^23.4 | [Consent of Clifford Chance US LLP (contained in Exhibit 5.1)](https://www.sec.gov/Archives/edgar/data/2067746/000182912625008827/jossrealtyreit_ex5-1.htm) |
| 23.5 | [Consent of Clifford Chance US LLP (contained in Exhibit 8.1)](jossrealtyreit_ex8-1.htm) |
| ^99.1 | [Consent of Matthew Cypher to be named as a Director Nominee](https://www.sec.gov/Archives/edgar/data/2067746/000182912625007506/jossrealtyreit_ex99-1.htm) |
| ^99.2 | [Consent of L. McCulley to be named as a Director Nominee](https://www.sec.gov/Archives/edgar/data/2067746/000182912625007506/jossrealtyreit_ex99-2.htm) |
| ^99.3 | [Consent of Marc Pfeffer to be named as a Director Nominee](https://www.sec.gov/Archives/edgar/data/2067746/000182912625007506/jossrealtyreit_ex99-3.htm) |
| ^99.4 | [Consent of Linda Lewis to be named as a Director Nominee](https://www.sec.gov/Archives/edgar/data/2067746/000182912625007506/jossrealtyreit_ex99-4.htm) |
| ^107 | [Filing Fee Table](http://www.sec.gov/Archives/edgar/data/2067746/000182912625008827/jossrealtyreit_ex107.htm) |

---

---

| | |
|:---|:---|
| \* | To be filed by amendment. |
| ^ | Previously filed. |
| † | Indicates management contract or compensatory plan. |
| + | Pursuant to Item 601(a)(5) of Regulation S-K, the registrant has omitted schedules (or similar attachments) to this exhibit. The registrant agrees to furnish supplementally a copy of the omitted schedules (or similar attachments) to the Securities and Exchange Commission upon request. |

---

[**Table of Contents**](#toc)

***Item 37. Undertakings.***

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

[**Table of Contents**](#toc)

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-11 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, New York, on this 12th day of January, 2026.

**JOSS REALTY REIT, INC.**

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Larry Botel | Chief Executive Officer, President, and Sole Director | January 12, 2026 |
| Larry Botel | *(Principal Executive Officer)* |  |
| \* | Chief Financial Officer | January 12, 2026 |
| Barry Regenstein | *(Principal Financial Officer and Principal Accounting Officer)* |  |

---

---

| | |
|:---|:---|
| \*By: | /s/ Larry Botel |
| Name: | Larry Botel |
| Title: | Attorney-in-fact |

---

## Exhibit 3.3

**Exhibit 3.3**

**<u>JOSS REALTY REIT, INC</u>.**

**ARTICLES OF AMENDMENT AND RESTATEMENT**

<u>FIRST</u>: JOSS Realty REIT, INC., a Maryland corporation (the "Corporation"), desires to amend and restate its charter as currently in effect and as hereinafter amended.

<u>SECOND</u>: The following provisions are all the provisions of the charter currently in effect and as hereinafter amended:

**ARTICLE I**

**INCORPORATOR**

Larry Botel, whose address is c/o JOSS Realty Partners, LLC, 650 5<sup>th</sup> Avenue, Suite 2400, New York, New York 10019, being at least 18 years of age, formed a corporation under the general laws of the State of Maryland on April 15, 2025.

**ARTICLE II**

**NAME**

The name of the corporation (the "Corporation") is:

JOSS Realty REIT, Inc.

**ARTICLE III**

**PURPOSE**

The purposes for which the Corporation is formed are to engage in any lawful act or activity (including, without limitation or obligation, engaging in business as a real estate investment trust under the Internal Revenue Code of 1986, as amended, or any successor statute (the "Code")) for which corporations may be organized under the general laws of the State of Maryland as now or hereafter in force. For purposes of the charter of the Corporation (the "Charter"), "REIT" means a real estate investment trust under Sections 856 through 860 of the Code or any successor provisions.

**ARTICLE IV**

**PRINCIPAL OFFICE IN STATE AND RESIDENT AGENT**

The address of the principal office of the Corporation in the State of Maryland is c/o CSC-Lawyers Incorporating Service Company, 7 Saint Paul Street, Suite 820, Baltimore, Maryland 21202. The name of the resident agent of the Corporation in the State of Maryland is CSC-Lawyers Incorporating Service Company, whose post address is 7 Saint Paul Street, Suite 820, Baltimore, Maryland 21202. The resident agent is a Maryland corporation.

**ARTICLE V**

**PROVISIONS FOR DEFINING, LIMITING**

**AND REGULATING CERTAIN POWERS OF THE**

**CORPORATION AND OF THE STOCKHOLDERS AND DIRECTORS**

Section 5.1 <u>Number of Directors</u>. The business and affairs of the Corporation shall be managed under the direction of the Board of Directors of the Corporation (the "Board of Directors" or the "Board"). The number of directors of the Corporation as of the date of these Articles of Amendment and Restatement is [_______], which number may be increased or decreased only by the Board of Directors pursuant to the Bylaws of the Corporation, as the same may be amended or restated (the "Bylaws"), but shall never be less than the minimum number required by the Maryland General Corporation Law (the "MGCL"). The names of the current directors, who shall serve until the first annual meeting of stockholders and until their successors are duly elected and qualify, are:

Larry Botel

[OTHERS]

Any vacancy on the Board of Directors may be filled in the manner provided in the Bylaws.

The Corporation elects, effective at such time as it becomes eligible under Section 3-802 of the MGCL to make the election provided for under Section 3-804(c) of the MGCL, that, except as may be provided by the Board of Directors in setting the terms of any class or series of stock, any and all vacancies on the Board of Directors may be filled only by the affirmative vote of a majority of the directors remaining in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy shall serve for the remainder of the full term of the directorship in which such vacancy occurred and until a successor is elected and qualifies.

Section 5.2 <u>Extraordinary Actions</u>. Notwithstanding any provision of law permitting or requiring any action to be taken or approved by the affirmative vote of stockholders entitled to cast a greater number of votes, any such action shall be effective and valid if declared advisable by the Board of Directors and taken or approved by the affirmative vote of stockholders entitled to cast a majority of all the votes entitled to be cast on the matter.

Section 5.3 <u>Authorization by Board of Stock Issuance</u>. The Board of Directors may authorize the issuance from time to time of shares of stock of the Corporation of any class or series, whether now or hereafter authorized, or securities or rights convertible into shares of its stock of any class or series, whether now or hereafter authorized, for such consideration as the Board of Directors may deem advisable (or without consideration in the case of a stock split or stock dividend or for the purpose of qualifying as a REIT under the Code), subject to such restrictions or limitations, if any, as may be set forth in the Charter or the Bylaws.

Section 5.4 <u>Preemptive and Appraisal Rights</u>. Except as may be provided by the Board of Directors in setting the terms of classified or reclassified shares of stock pursuant to Section 6.4 or as may otherwise be provided by a contract approved by the Board of Directors, no holder of shares of stock of the Corporation shall, as such holder, have any preemptive right to purchase or subscribe for any additional shares of stock of the Corporation or any other security of the Corporation which it may issue or sell. Holders of shares of stock shall not be entitled to exercise any rights of an objecting stockholder provided for under Title 3, Subtitle 2 of the MGCL or any successor statute unless the Board of Directors upon such terms and conditions as may be specified by the Board of Directors, determines that such rights apply, with respect to all or any shares of all or any classes or series of stock, to one or more transactions occurring after the date of such determination in connection with which holders of such shares would otherwise be entitled to exercise such rights.

Section 5.5 <u>Indemnification</u>. To the maximum extent permitted by Maryland law in effect from time to time, the Corporation shall indemnify and, without requiring a preliminary determination of the ultimate entitlement to indemnification, shall pay or reimburse reasonable expenses in advance of final disposition of a proceeding to (a) any individual who is a present or former director or officer of the Corporation and who is made or threatened to be made a party to, or witness in, the proceeding by reason of his or her service in that capacity and (b) any individual who, while a director or officer of the Corporation and at the request of the Corporation, serves or has served as a director, officer, partner, trustee, member or manager of another corporation, real estate investment trust, limited liability company, partnership, joint venture, trust, employee benefit plan or any other enterprise and who is made or threatened to be made a party to, or witness in, the proceeding by reason of his or her service in that capacity, in either case, from and against any claim or liability to which such person may become subject or which such person may incur by reason of his or her service in such capacity. The rights to indemnification and advance of expenses provided by the Charter shall vest immediately upon election of a director or officer. The Corporation may, with the approval of the Board of Directors, provide such indemnification and advance for expenses to an individual who served a predecessor of the Corporation in any of the capacities described in (a) or (b) above and to any employee or agent of the Corporation or a predecessor of the Corporation. The indemnification and payment or reimbursement of expenses provided in the Charter shall not be deemed exclusive of or limit in any way other rights to which any person seeking indemnification or payment or reimbursement of expenses may be or may become entitled under any bylaw, resolution, insurance, agreement or otherwise.

Neither the amendment nor repeal of this Section, nor the adoption or amendment of any other provision of the Charter or the Bylaws inconsistent with this Section, shall apply to or affect in any respect the applicability of the preceding paragraph with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption.

Section 5.6 <u>Determinations by Board</u>. The determination as to any of the following matters, made by or pursuant to the direction of the Board of Directors, shall be final and conclusive and shall be binding upon the Corporation and every holder of shares of its stock: the amount of the net income of the Corporation for any period and the amount of assets at any time legally available for the payment of dividends, acquisition of its stock or the payment of other distributions on its stock; the amount of paid-in surplus, net assets, other surplus, annual or other cash flow, funds from operations, adjusted funds from operations, net profit, net assets in excess of capital, undivided profits or excess of profits over losses on sales of assets; the amount, purpose, time of creation, increase or decrease, alteration or cancellation of any reserves or charges and the propriety thereof (whether or not any obligation or liability for which such reserves or charges shall have been created shall have been set aside, paid or discharged); any interpretation or resolution of any ambiguity with respect to any provision of the Charter (including any of the terms, preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of any shares of any class or series of stock of the Corporation) or of the Bylaws; the number of authorized or outstanding shares of stock of any class or series of the Corporation; the value, fair value, or any sale, bid or asked price to be applied in determining the value, or fair value, of any asset owned or held by the Corporation or of any shares of stock of the Corporation; any matter relating to the acquisition, holding and disposition of any assets by the Corporation; any interpretation of the terms and conditions of one or more agreements with any person, corporation, association, company, trust, partnership (limited or general) or other entity; the compensation of directors, officers, employees or agents of the Corporation; or any other matter relating to the business and affairs of the Corporation or required or permitted by applicable law, the Charter or Bylaws or otherwise to be determined by the Board of Directors.

Section 5.7 <u>REIT Qualification</u>. If the Corporation elects to qualify for federal income tax treatment as a REIT, the Board of Directors shall use its reasonable best efforts to take such actions as are necessary or appropriate to preserve the qualification of the Corporation as a REIT; however, if the Board of Directors determines that it is no longer in the best interests of the Corporation to attempt to, or continue to, qualify as a REIT, the Board of Directors may terminate the Corporation's qualification as a REIT pursuant to Section 856(g) of the Code. The Board of Directors, in its sole and absolute discretion, also may (a) determine that compliance with any restriction or limitation on stock ownership and transfers set forth in Article VII is no longer required for the Corporation to qualify as a REIT and (b) make any other determination or take any other action pursuant to Article VII.

Section 5.8 <u>Removal of Directors</u>. Subject to the rights of holders of shares of one or more classes or series of Preferred Stock (as defined below) to elect or remove one or more directors, any director, or the entire Board of Directors, may be removed from office at any time, with or without cause, but only by the affirmative vote of stockholders entitled to cast at least a majority of all the votes entitled to be cast generally in the election of directors.

Section 5.9 <u>Corporate Opportunities</u>. The Corporation shall have the power, by resolution of the Board of Directors, to renounce any interest or expectancy of the Corporation in, or in being offered an opportunity to participate in, business opportunities or classes or categories of business opportunities that are presented to the Corporation or developed by or presented to one or more directors or officers of the Corporation.

Section 5.10. <u>Subtitle 8</u>. In accordance with Section 3-802(c) of the MGCL, the Corporation is prohibited from electing to be subject to the provisions of Section 3-803 of the MGCL, unless such election is approved by the affirmative vote of a majority of the votes cast on the matter by stockholders entitled to vote generally in the election of directors.

**ARTICLE VI**

**STOCK**

Section 6.1 <u>Authorized Shares</u>. The Corporation has authority to issue 100,000,000 shares of stock, consisting of 100,000,000 shares of common stock, $0.01 par value per share ("Common Stock"). The aggregate par value of all authorized shares of stock having par value is $1,000,000. If shares of one class of stock are classified or reclassified into shares of another class of stock pursuant to Section 6.2, 6.3 or 6.4 of this Article VI, the number of authorized shares of the former class shall be automatically decreased and the number of shares of the latter class shall be automatically increased, in each case by the number of shares so classified or reclassified, so that the aggregate number of shares of stock of all classes that the Corporation has authority to issue shall not be more than the total number of shares of stock set forth in the first sentence of this paragraph. The Board of Directors, with the approval of a majority of the entire Board and without any action by the stockholders of the Corporation, may amend the Charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Corporation has authority to issue.

Section 6.2 <u>Common Stock</u>. Subject to the provisions of Article VII and except as may otherwise be specified in the Charter, each share of Common Stock shall entitle the holder thereof to one vote on each matter upon which holders of shares of Common Stock are entitled to vote. The Board of Directors may reclassify any unissued shares of Common Stock from time to time into one or more classes or series of stock.

Section 6.3 <u>Preferred Stock</u>. The Board of Directors may classify any unissued shares of Common Stock into shares of preferred stock, par value $0.01 per share ("Preferred Stock"), and reclassify any previously classified but unissued shares of Common Stock or Preferred Stock of any class or series from time to time into shares of one or more classes or series of stock.

Section 6.4 <u>Classified or Reclassified Shares</u>. Prior to the issuance of classified or reclassified shares of any class or series of stock, the Board of Directors by resolution shall: (a) designate that class or series to distinguish it from all other classes and series of stock of the Corporation; (b) specify the number of shares to be included in the class or series; (c) set or change, subject to the provisions of Article VII and subject to the express terms of any class or series of stock of the Corporation outstanding at the time, the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms and conditions of redemption for each class or series; and (d) cause the Corporation to file articles supplementary with the State Department of Assessments and Taxation of Maryland. Any of the terms of any class or series of stock set or changed pursuant to clause (c) of this Section 6.4 may be made dependent upon facts or events ascertainable outside the Charter (including determinations by the Board of Directors or other facts or events within the control of the Corporation) and may vary among holders thereof, <u>provided</u> that the manner in which such facts, events or variations shall operate upon the terms of such class or series of stock is clearly and expressly set forth in the articles supplementary or other Charter document.

Section 6.5 <u>Charter and Bylaws</u>. The rights of all stockholders and the terms of all stock of the Corporation are subject to the provisions of the Charter and the Bylaws.

Section 6.6 <u>Distributions</u>. Except as may otherwise be provided in the terms of any class or series of Preferred Stock, in determining whether a distribution (other than upon liquidation, dissolution or winding up) is permitted under Maryland law, amounts that would be needed, if the Corporation were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of stockholders whose preferential rights upon dissolution are superior to those receiving the distribution, shall not be added to the Corporation's total liabilities.

**ARTICLE VII**

**RESTRICTION ON TRANSFER AND OWNERSHIP OF SHARES**

Section 7.1 <u>Definitions</u>. For the purpose of this Article VII, the following terms shall have the following meanings:

<u>Aggregate Stock Ownership Limit</u>. The term "Aggregate Stock Ownership Limit" shall mean 9.8% in value of the aggregate of the outstanding shares of Capital Stock, or such other percentage determined by the Board of Directors in accordance with Section 7.2.8 of the Charter.

<u>Beneficial Ownership</u>. The term "Beneficial Ownership" shall mean ownership of Capital Stock by a Person, whether the interest in the shares of Capital Stock is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 544 of the Code, as modified by Section 856(h)(1)(B) of the Code. The terms "Beneficial Owner," "Beneficially Owns" and "Beneficially Owned" shall have the correlative meanings.

<u>Business Day</u>. The term "Business Day" shall mean any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in New York City are authorized or required by law, regulation or executive order to close.

<u>Capital Stock</u>. The term "Capital Stock" shall mean all classes or series of stock of the Corporation, including, without limitation, Common Stock and Preferred Stock.

<u>Charitable Beneficiary</u>. The term "Charitable Beneficiary" shall mean one or more beneficiaries of the Trust as determined pursuant to Section 7.3.6, <u>provided</u> that each such organization must be described in Section 501(c)(3) of the Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

<u>Common Stock Ownership Limit</u>. The term "Common Stock Ownership Limit" shall mean 9.8% (in value or in number of shares, whichever is more restrictive) of the aggregate of the outstanding shares of Common Stock, or such other percentage determined by the Board of Directors in accordance with Section 7.2.8 of the Charter.

<u>Constructive Ownership</u>. The term "Constructive Ownership" shall mean ownership of Capital Stock by a Person, whether the interest in the shares of Capital Stock is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 318(a) of the Code, as modified by Section 856(d)(5) of the Code. The terms "Constructive Owner," "Constructively Owns" and "Constructively Owned" shall have the correlative meanings.

<u>Excepted Holder Limit</u>. The term "Excepted Holder Limit" shall mean, <u>provided</u> that the affected Excepted Holder agrees to comply with the requirements established by the Board of Directors pursuant to Section 7.2.7 and subject to adjustment pursuant to Section 7.2.7, the percentage limit established by the Board of Directors for a specified Excepted Holder pursuant to Section 7.2.7.

<u>Initial Date</u>. The term "Initial Date" shall mean the date of the closing of the issuance of shares of Common Stock pursuant to the initial underwritten public offering of the Corporation.

<u>Market Price</u>. The term "Market Price" on any date shall mean, with respect to any class or series of outstanding shares of Capital Stock, the Closing Price for such Capital Stock on such date. The "Closing Price" on any date shall mean the last sale price for such Capital Stock, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, for such Capital Stock, in either case as reported on the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which such Capital Stock is listed or admitted to trading or, if such Capital Stock is not listed or admitted to trading on any national securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the principal other automated quotation system that may then be in use or, if such Capital Stock is not quoted by any such system, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such Capital Stock selected by the Board of Directors or, in the event that no trading price is available for such Capital Stock, the fair market value of the Capital Stock, as determined by the Board of Directors.

<u>Person</u>. The term "Person" shall mean an individual, corporation, partnership, limited liability company, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and a group to which an Excepted Holder Limit applies.

<u>Preferred Stock Ownership Limit</u>. The term "Preferred Stock Ownership Limit" shall mean not more than 9.8% (in value or in number of shares, whichever is more restrictive) of the aggregate of the outstanding shares of any class or series of Preferred Stock, or such other percentage determined by the Board of Directors in accordance with Section 7.2.8 of the Charter.

<u>Prohibited Owner</u>. The term "Prohibited Owner" shall mean, with respect to any purported Transfer, any Person who, but for the provisions of this Article VII, would Beneficially Own or Constructively Own shares of Capital Stock in violation of Section 7.2.1, and if appropriate in the context, shall also mean any Person who would have been the record owner of the shares of Capital Stock that the Prohibited Owner would have so owned.

<u>Restriction Termination Date</u>. The term "Restriction Termination Date" shall mean the first day after the Initial Date on or as of which the Board of Directors determines pursuant to Section 5.7 of the Charter that it is no longer in the best interests of the Corporation to attempt to, or continue to, qualify as a REIT or that compliance with the applicable restriction or limitation on Beneficial Ownership, Constructive Ownership and Transfers of shares of Capital Stock set forth herein is no longer required in order for the Corporation to qualify as a REIT.

<u>Transfer</u>. The term "Transfer" shall mean any issuance, sale, transfer, gift, assignment, devise or other disposition, as well as any other event that causes any Person to acquire or change its Beneficial Ownership or Constructive Ownership, or any agreement to take any such action or cause any such event, of Capital Stock or the right to vote (other than solely pursuant to a revocable proxy) or receive dividends on Capital Stock, including (a) the granting or exercise of any option (or any disposition of any option), (b) any disposition of any securities or rights convertible into or exchangeable for Capital Stock or any interest in Capital Stock or any exercise of any such conversion or exchange right and (c) Transfers of interests in other entities that result in changes in Beneficial Ownership or Constructive Ownership of Capital Stock; in each case, whether voluntary or involuntary, whether owned of record, Constructively Owned or Beneficially Owned and whether by operation of law or otherwise. The term "Transferred" shall have the correlative meaning.

<u>Trust</u>. The term "Trust" shall mean any trust provided for in Section 7.3.1.

<u>Trustee</u>. The term "Trustee" shall mean the Person unaffiliated with the Corporation and a Prohibited Owner that is appointed by the Corporation to serve as trustee of the Trust.

Section 7.2 <u>Capital Stock</u>.

Section 7.2.1 <u>Ownership Limitations</u>. During the period commencing on the Initial Date and prior to the Restriction Termination Date, but subject to Section 7.4:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Basic Restrictions</u>. Except as provided in Section 7.2.7,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) (1) No Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own shares of Capital Stock in excess of the Aggregate Stock Ownership Limit, (2) no Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own shares of Common Stock in excess of the Common Stock Ownership Limit, (3) no Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own shares of Preferred Stock in excess of the Preferred Stock Ownership Limit and (4) no Excepted Holder shall Beneficially Own or Constructively Own shares of Capital Stock in excess of the Excepted Holder Limit for such Excepted Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Person shall Beneficially Own or Constructively Own shares of Capital Stock to the extent that such Beneficial Ownership or Constructive Ownership of Capital Stock would result in the Corporation being "closely held" within the meaning of Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year), or otherwise failing to qualify as a REIT (including, without limitation, Beneficial Ownership or Constructive Ownership that would result in the Corporation owning (actually or Constructively) an interest in a tenant that is described in Section 856(d)(2)(B) of the Code if the income derived by the Corporation from such tenant would cause the Corporation to fail to satisfy any of the gross income requirements of Section 856(c) of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Transfer of shares of Capital Stock that, if effective, would result in the Capital Stock being beneficially owned by less than 100 Persons (determined under the principles of Section 856(a)(5) of the Code) shall be void <u>ab initio</u>, and the intended transferee shall acquire no rights in such shares of Capital Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Transfer in Trust</u>. If any Transfer of shares of Capital Stock occurs which, if effective, would result in any Person Beneficially Owning or Constructively Owning shares of Capital Stock in violation of Section 7.2.1(a)(i) or (ii),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) then that number of shares of Capital Stock the Beneficial Ownership or Constructive Ownership of which otherwise would cause such Person to violate Section 7.2.1(a)(i) or (ii) (rounded up to the nearest whole share) shall be automatically transferred to a Trust for the benefit of a Charitable Beneficiary, as described in Section 7.3, effective as of the close of business on the Business Day prior to the date of such Transfer, and such Person shall acquire no rights in such shares; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the transfer to the Trust described in clause (i) of this sentence would not be effective for any reason to prevent the violation of Section 7.2.1(a)(i) or (ii), then the Transfer of that number of shares of Capital Stock that otherwise would cause any Person to violate Section 7.2.1(a)(i) or (ii) shall be void <u>ab initio</u>, and the intended transferee shall acquire no rights in such shares of Capital Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To the extent that, upon a transfer of shares of Capital Stock pursuant to this Section 7.2.1(b), a violation of any provision of this Article VII would nonetheless be continuing (for example where the ownership of shares of Capital Stock by a single Trust would violate the 100 stockholder requirement applicable to REITs), then shares of Capital Stock shall be transferred to that number of Trusts, each having a distinct Trustee and a Charitable Beneficiary or Charitable Beneficiaries that are distinct from those of each other Trust, such that there is no violation of any provision of this Article VII.

Section 7.2.2 <u>Remedies for Breach</u>. If the Board of Directors shall at any time determine that a Transfer or other event has taken place that results in a violation of Section 7.2.1 or that a Person intends to acquire or has attempted to acquire Beneficial Ownership or Constructive Ownership of any shares of Capital Stock in violation of Section 7.2.1 (whether or not such violation is intended), the Board of Directors may take such action as it deems advisable to refuse to give effect to or to prevent such Transfer or other event, including, without limitation, causing the Corporation to redeem shares, refusing to give effect to such Transfer on the books of the Corporation or instituting proceedings to enjoin such Transfer or other event; <u>provided</u>, <u>however</u>, that any Transfer or attempted Transfer or other event in violation of Section 7.2.1 shall automatically result in the transfer to the Trust described above, and, where applicable, such Transfer (or other event) shall be void <u>ab initio</u> as provided above irrespective of any action (or non-action) by the Board of Directors.

Section 7.2.3 <u>Notice of Restricted Transfer</u>. Any Person who acquires or attempts or intends to acquire Beneficial Ownership or Constructive Ownership of shares of Capital Stock that will or may violate Section 7.2.1(a) or any Person who would have owned shares of Capital Stock that resulted in a transfer to the Trust pursuant to the provisions of Section 7.2.1(b) shall immediately give written notice to the Corporation of such event or, in the case of such a proposed or attempted transaction, give at least 15 days prior written notice, and shall provide to the Corporation such other information as the Corporation may request in order to determine the effect, if any, of such Transfer on the Corporation's qualification as a REIT.

Section 7.2.4 <u>Owners Required To Provide Information</u>. From the Initial Date and prior to the Restriction Termination Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) every owner of five percent or more (or such lower percentage as required by the Code or the Treasury Regulations promulgated thereunder) of the outstanding shares of Capital Stock, within 30 days after the end of each taxable year, shall give written notice to the Corporation stating the name and address of such owner, the number of shares of Capital Stock of each class or series Beneficially Owned and a description of the manner in which such shares are held. Each such owner shall promptly provide to the Corporation in writing such additional information as the Corporation may request in order to determine the effect, if any, of such Beneficial Ownership on the Corporation's qualification as a REIT and to ensure compliance with the Aggregate Stock Ownership Limit, the Common Stock Ownership Limit, the Preferred Stock Ownership Limit and any Excepted Holder Limit; 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Person who is a Beneficial Owner or Constructive Owner of Capital Stock and each Person (including the stockholder of record) who is holding Capital Stock for a Beneficial Owner or Constructive Owner shall promptly provide to the Corporation in writing such information as the Corporation may request, in order to determine the Corporation's qualification as a REIT and to comply with the requirements of any taxing authority or governmental authority or to determine such compliance.

Section 7.2.5 <u>Remedies Not Limited</u>. Subject to Section 5.7 of the Charter, nothing contained in this Section 7.2 shall limit the authority of the Board of Directors to take such other action as it deems necessary or advisable to protect the Corporation in preserving the Corporation's qualification as a REIT.

Section 7.2.6 <u>Ambiguity</u>. In the case of an ambiguity in the application of any of the provisions of this Section 7.2, Section 7.3 or any definition contained in Section 7.1, the Board of Directors may determine the application of the provisions of this Section 7.2 or Section 7.3 or any such definition with respect to any situation based on the facts known to it. In the event Section 7.2 or Section 7.3 requires an action by the Board of Directors and the Charter fails to provide specific guidance with respect to such action, the Board of Directors may determine the action to be taken so long as such action is not contrary to the provisions of Section 7.1, Section 7.2 or Section 7.3. Absent a decision to the contrary by the Board of Directors, if a Person would have (but for the remedies set forth in Section 7.2.2) acquired Beneficial Ownership or Constructive Ownership of Capital Stock in violation of Section 7.2.1, such remedies (as applicable) shall apply first to the shares of Capital Stock which, but for such remedies, would have been Beneficially Owned or Constructively Owned (but not actually owned) by such Person, pro rata among the Persons who actually own such shares of Capital Stock based upon the relative number of the shares of Capital Stock held by each such Person.

Section 7.2.7 <u>Exceptions</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 7.2.1(a)(ii), upon receipt of such representations and undertakings as the Board of Directors may require, the Board of Directors, may exempt (prospectively or retroactively) a Person from the Aggregate Stock Ownership Limit, the Common Stock Ownership Limit and/or the Preferred Stock Ownership Limit, as the case may be, and may establish or increase an Excepted Holder Limit for such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Prior to granting any exception or creating or increasing an Excepted Holder Limit pursuant to Section 7.2.7(a), the Board of Directors may require a ruling from the Internal Revenue Service, or an opinion of counsel, in either case in form and substance satisfactory to the Board of Directors, as it may deem necessary or advisable in order to determine or ensure the Corporation's qualification as a REIT. Notwithstanding the receipt of any ruling or opinion, the Board of Directors may impose such conditions or restrictions as it deems appropriate in connection with granting such exception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Subject to Section 7.2.1(a)(ii), an underwriter, placement agent or initial purchaser which participates in a public offering, forward sale or a private placement of Capital Stock (or securities convertible into or exchangeable for Capital Stock) may Beneficially Own or Constructively Own shares of Capital Stock (or securities convertible into or exchangeable for Capital Stock) in excess of the Aggregate Stock Ownership Limit, the Common Stock Ownership Limit, the Preferred Stock Ownership Limit, or any such limits, but only to the extent necessary to facilitate such public offering, forward sale or private placement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Board of Directors may only reduce the Excepted Holder Limit for an Excepted Holder: (1) with the written consent of such Excepted Holder at any time, (2) unless the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder provide otherwise, at any time after the Excepted Holder no longer Beneficially Owns or Constructively Owns shares of Capital Stock in excess of the Common Stock Ownership Limit, the Preferred Stock Ownership Limit or the Aggregate Stock Ownership Limit or (3) pursuant to the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder Limit shall be reduced to a percentage that is less than the Aggregate Stock Ownership Limit, the Common Stock Ownership Limit and/or the Preferred Stock Ownership Limit, as the case may be.

Section 7.2.8 <u>Increase or Decrease in Common Stock Ownership Limit, Aggregate Stock Ownership Limit or Preferred Stock Ownership Limit</u>. Subject to Section 7.2.1(a)(ii) and this Section 7.2.8, the Board of Directors may from time to time increase or decrease the Common Stock Ownership Limit, the Preferred Stock Ownership Limit and/or the Aggregate Stock Ownership Limit for one or more Persons and increase or decrease the Common Stock Ownership Limit, the Preferred Stock Ownership Limit and/or the Aggregate Stock Ownership Limit for all other Persons. No decreased Common Stock Ownership Limit, Preferred Stock Ownership Limit or Aggregate Stock Ownership Limit will be effective for any Person whose percentage of ownership of Capital Stock is in excess of such decreased Common Stock Ownership Limit, Preferred Stock Ownership Limit or Aggregate Stock Ownership Limit, as applicable, until such time as such Person's percentage of ownership of Capital Stock equals or falls below the decreased Common Stock Ownership Limit, Preferred Stock Ownership Limit or Aggregate Stock Ownership Limit, as applicable; <u>provided</u>, <u>however</u>, any further acquisition of Capital Stock by any such Person (other than a Person for whom an exemption has been granted pursuant to Section 7.2.7(a) or an Excepted Holder) in excess of the Capital Stock owned by such person on the date the decreased Common Stock Ownership Limit, Preferred Stock Ownership Limit or Aggregate Stock Ownership Limit, as applicable, became effective will be in violation of the Common Stock Ownership Limit, the Preferred Stock Ownership Limit or the Aggregate Stock Ownership Limit, as applicable. No increase to the Common Stock Ownership Limit, the Preferred Stock Ownership Limit or the Aggregate Stock Ownership Limit may be approved if the new Common Stock Ownership Limit, Preferred Stock Ownership Limit or Aggregate Stock Ownership Limit, as the case may be, would allow five or fewer Persons to Beneficially Own, in the aggregate, more than 49% in value of the outstanding Capital Stock.

Section 7.2.9 <u>Legend</u>. Each certificate, if any, or any notice in lieu of any certificate, for shares of Capital Stock shall bear a legend summarizing the restrictions on ownership and transfer contained herein. Instead of a legend, the certificate, if any, may state that the Corporation will furnish a full statement about certain restrictions on transferability to a stockholder on request and without charge.

Section 7.3 <u>Transfer of Capital Stock in Trust</u>.

Section 7.3.1 <u>Ownership in Trust</u>. Upon any purported Transfer or other event described in Section 7.2.1(b) that would result in a transfer of shares of Capital Stock to a Trust, such shares of Capital Stock shall be deemed to have been transferred to the Trustee as trustee of a Trust for the exclusive benefit of one or more Charitable Beneficiaries. Such transfer to the Trustee shall be effective as of the close of business on the Business Day prior to the purported Transfer or other event that results in the transfer to the Trust pursuant to Section 7.2.1(b). The Trustee shall be appointed by the Corporation and shall be a Person unaffiliated with the Corporation and any Prohibited Owner. Each Charitable Beneficiary shall be designated by the Corporation as provided in Section 7.3.6.

Section 7.3.2 <u>Status of Shares Held by the Trustee</u>. Shares of Capital Stock held by the Trustee shall be issued and outstanding shares of Capital Stock of the Corporation. The Prohibited Owner shall have no rights in the shares held by the Trustee. The Prohibited Owner shall not benefit economically from ownership of any shares held in trust by the Trustee, shall have no rights to dividends or other distributions and shall not possess any rights to vote or other rights attributable to the shares held in the Trust.

Section 7.3.3 <u>Dividend and Voting Rights</u>. The Trustee shall have all voting rights and rights to dividends or other distributions with respect to shares of Capital Stock held in the Trust, which rights shall be exercised for the exclusive benefit of the Charitable Beneficiary. Any dividend or other distribution paid prior to the discovery by the Corporation that the shares of Capital Stock have been transferred to the Trustee shall be paid by the recipient of such dividend or other distribution to the Trustee upon demand and any dividend or other distribution authorized but unpaid shall be paid when due to the Trustee. Any dividend or other distribution so paid to the Trustee shall be held in trust for the Charitable Beneficiary. The Prohibited Owner shall have no voting rights with respect to shares of Capital Stock held in the Trust and, subject to Maryland law, effective as of the date that the shares of Capital Stock have been transferred to the Trust, the Trustee shall have the authority (at the Trustee's sole and absolute discretion) (i) to rescind as void any vote cast by a Prohibited Owner prior to the discovery by the Corporation that the shares of Capital Stock have been transferred to the Trust and (ii) to recast such vote; <u>provided</u>, <u>however</u>, that if the Corporation has already taken irreversible corporate action, then the Trustee shall not have the authority to rescind and recast such vote. Notwithstanding the provisions of this Article VII, until the Corporation has received notification that shares of Capital Stock have been transferred into a Trust, the Corporation shall be entitled to rely on its stock transfer and other stockholder records for purposes of preparing lists of stockholders entitled to vote at meetings, determining the validity and authority of proxies and otherwise conducting votes and determining the other rights of stockholders.

Section 7.3.4 <u>Sale of Shares by Trustee</u>. Within 20 days of receiving notice from the Corporation that shares of Capital Stock have been transferred to the Trust, the Trustee of the Trust shall sell the shares held in the Trust to a person, designated by the Trustee, whose ownership of the shares will not violate the ownership limitations set forth in Section 7.2.1(a). Upon such sale, the interest of the Charitable Beneficiary in the shares sold shall terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and to the Charitable Beneficiary as provided in this Section 7.3.4. The Prohibited Owner shall receive the lesser of (1) the price paid by the Prohibited Owner for the shares or, if the event causing the shares to be held in the Trust did not involve a purchase of such shares at Market Price, the Market Price of the shares on the day of the event causing the shares to be held in the Trust and (2) the price per share received by the Trustee (net of any commissions and other expenses of sale) from the sale or other disposition of the shares held in the Trust. The Trustee may reduce the amount payable to the Prohibited Owner by the amount of dividends and distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Section 7.3.3 of this Article VII. Any net sales proceeds in excess of the amount payable to the Prohibited Owner and any other amounts held by the Trustee with respect to such shares shall be immediately paid to the Charitable Beneficiary. If, prior to the discovery by the Corporation that shares of Capital Stock have been transferred to the Trustee, such shares are sold by a Prohibited Owner, then (i) such shares shall be deemed to have been sold on behalf of the Trust and (ii) to the extent that the Prohibited Owner received an amount for such shares that exceeds the amount that such Prohibited Owner was entitled to receive pursuant to this Section 7.3.4, such excess shall be paid to the Trustee upon demand.

Section 7.3.5 <u>Purchase Right in Stock Transferred to the Trustee</u>. Shares of Capital Stock transferred to the Trustee shall be deemed to have been offered for sale to the Corporation, or its designee, at a price per share equal to the lesser of (i) the price paid by the Prohibited Owners for the shares (or, if the event causing the shares to be held in Trust did not involve a purchase of such shares at Market Price, the Market Price of the shares on the day of the event causing the shares to be held in the Trust) and (ii) the Market Price on the date the Corporation, or its designee, accepts such offer. The Corporation may reduce the amount payable to the Prohibited Owner by the amount of dividends and distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Section 7.3.3 of this Article VII. The Corporation may pay the amount of such reduction to the Trustee for the benefit of the Charitable Beneficiary. The Corporation shall have the right to accept such offer until the Trustee has sold the shares held in the Trust pursuant to Section 7.3.4. Upon such a sale to the Corporation, the interest of the Charitable Beneficiary in the shares sold shall terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and any dividends or other amounts held by the Trustee with respect to the shares to the Charitable Beneficiary.

Section 7.3.6 <u>Designation of Charitable Beneficiaries</u>. By written notice to the Trustee, the Corporation shall designate one or more nonprofit organizations to be the Charitable Beneficiary or Charitable Beneficiaries of the interest in the Trust such that (i) the shares of Capital Stock held in the Trust would not violate the restrictions set forth in Section 7.2.1(a) in the hands of such Charitable Beneficiary or Charitable Beneficiaries. Neither the failure of the Corporation to make such designation nor the failure of the Corporation to appoint the Trustee before the automatic transfer provided in Section 7.2.1(b) shall make such transfer ineffective, <u>provided</u> that the Corporation thereafter makes such designation and appointment.

Section 7.4 <u>Exchange Transactions</u>. Nothing in this Article VII shall preclude the settlement of any transaction entered into through the facilities of the national securities exchange or any other national securities exchange or automated inter-dealer quotation system. The fact that the settlement of any transaction occurs shall not negate the effect of any other provision of this Article VII and any transferee in such a transaction shall be subject to all of the provisions and limitations set forth in this Article VII.

Section 7.5 <u>Enforcement</u>. The Corporation is authorized specifically to seek equitable relief, including injunctive relief, to enforce the provisions of this Article VII.

Section 7.6 <u>Non-Waiver</u>. No delay or failure on the part of the Corporation or the Board of Directors in exercising any right hereunder shall operate as a waiver of any right of the Corporation or the Board of Directors, as the case may be, except to the extent specifically waived in writing.

**ARTICLE VIII**

**AMENDMENTS**

The Corporation reserves the right from time to time to make any amendment to the Charter, now or hereafter authorized by law, including any amendment altering the terms or contract rights, as expressly set forth in the Charter, of any shares of outstanding stock. All rights and powers conferred by the Charter on stockholders, directors and officers are granted subject to this reservation. Except for those amendments permitted to be made without stockholder approval under Maryland law or by specific provision in the Charter, any amendment to the Charter shall be valid only if declared advisable by the Board of Directors and approved by the affirmative vote of stockholders entitled to cast a majority of all the votes entitled to be cast on the matter.

**ARTICLE IX**

**LIMITATION OF LIABILITY**

To the maximum extent that Maryland law in effect from time to time permits limitation of the liability of directors and officers of a corporation, no present or former director or officer of the Corporation shall be liable to the Corporation or its stockholders for money damages. Neither the amendment nor repeal of this Article IX, nor the adoption or amendment of any other provision of the Charter or Bylaws inconsistent with this Article IX, shall apply to or affect in any respect the applicability of the preceding sentence with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption.

<u>THIRD</u>: The amendment to and restatement of the charter as hereinabove set forth have been duly advised by the Board of Directors and approved by the stockholders of the Corporation as required by law.

<u>FOURTH</u>: The current address of the principal office of the Corporation is as set forth in Article IV of the foregoing amendment and restatement of the charter.

<u>FIFTH</u>: The name and address of the Corporation's current resident agent are as set forth in Article IV of the foregoing amendment and restatement of the charter.

<u>SIXTH</u>: The number of directors of the Corporation and the names of those currently in office are as set forth in Article V of the foregoing amendment and restatement of the charter.

<u>SEVENTH</u>**:** The undersigned acknowledges these Articles of Amendment and Restatement to be the corporate act of the Corporation and as to all matters or facts required to be verified under oath, the undersigned acknowledges that, to the best of such officer's knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment and Restatement to be signed in its name and on its behalf by its President and attested to by its Secretary on this _____ day of ____________, 2026.

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| | | |
|:---|:---|:---|
| ATTEST: | JOSS REALTY REIT, INC. | JOSS REALTY REIT, INC. |
|  | By: | (SEAL) |
| Secretary |  | President |

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*Signature Page – JOSS Realty REIT, Inc. Articles of Amendment and Restatement*

## Exhibit 3.4

**Exhibit 3.4**

**<u>JOSS REALTY REIT, INC</u>.**

**BYLAWS**

**ARTICLE I**

**OFFICES**

Section 1. <u>PRINCIPAL OFFICE</u>. The principal office of JOSS Realty REIT, Inc. (the "Corporation") in the State of Maryland shall be located at such place as the Board of Directors may from time to time designate.

Section 2. <u>ADDITIONAL OFFICES</u>. The Corporation may have additional offices, including a principal executive office, at such places as the Board of Directors may from time to time determine or the business of the Corporation may require.

**ARTICLE II**

**MEETINGS OF STOCKHOLDERS**

Section 1. <u>PLACE</u>. All meetings of stockholders shall be held at the principal executive office of the Corporation or at such other place as shall be set in accordance with these Bylaws and stated in the notice of the meeting. The Board of Directors is authorized to determine that a meeting not be held at any place, but instead may be held partially or solely by means of remote communication. In accordance with these Bylaws and subject to any guidelines and procedures adopted by the Board of Directors, stockholders and proxy holders may participate in any meeting of stockholders held by means of remote communication and may vote at such meeting as permitted by Maryland law. Participation in a meeting by these means constitutes presence in person at the meeting.

Section 2. <u>ANNUAL MEETING</u>. An annual meeting of stockholders for the election of directors and the transaction of any business within the powers of the Corporation shall be held on the date and at the time and place set by the Board of Directors.

Section 3. <u>SPECIAL MEETINGS</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;(a) <u>General</u>. Each of the chair of the board, chief executive officer, president and Board of Directors may call a special meeting of stockholders. Except as provided in subsection (b)(4) of this Section 3, a special meeting of stockholders shall be held on the date and at the time and place set by the chair of the board, chief executive officer, president or Board of Directors, whoever has called the meeting. Subject to subsection (b) of this Section 3, a special meeting of stockholders shall also be called by the secretary of the Corporation to act on any matter that may properly be considered at a meeting of stockholders upon the written request of stockholders entitled to cast a majority of all the votes entitled to be cast on such matter at such meeting (the "Special Meeting Percentage").

&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>Stockholder-Requested Special Meetings</u>. (1) Any stockholder of record seeking to have stockholders request a special meeting shall, by sending written notice to the secretary (the "Record Date Request Notice") by registered mail, return receipt requested, request the Board of Directors to fix a record date to determine the stockholders entitled to request a special meeting (the "Request Record Date"). The Record Date Request Notice shall set forth the purpose of the meeting and the matters proposed to be acted on at it, shall be signed by one or more stockholders of record as of the date of signature (or their agents duly authorized in a writing accompanying the Record Date Request Notice), shall bear the date of signature of each such stockholder (or such agent) and shall set forth all information relating to each such stockholder and each matter proposed to be acted on at the meeting that would be required to be disclosed in connection with the solicitation of proxies for the election of directors in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such a solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the "Exchange Act"). Upon receiving the Record Date Request Notice, the Board of Directors may fix a Request Record Date. The Request Record Date shall not precede and shall not be more than ten days after the close of business on the date on which the resolution fixing the Request Record Date is adopted by the Board of Directors. If the Board of Directors, within ten days after the date on which a valid Record Date Request Notice is received, fails to adopt a resolution fixing the Request Record Date, the Request Record Date shall be the close of business on the tenth day after the first date on which a Record Date Request Notice is received by the secretary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In order for any stockholder to request a special meeting to act on any matter that may properly be considered at a meeting of stockholders, one or more written requests for a special meeting (collectively, the "Special Meeting Request") signed by stockholders of record (or their agents duly authorized in a writing accompanying the request) as of the Request Record Date entitled to cast not less than the Special Meeting Percentage shall be delivered to the secretary. In addition, the Special Meeting Request shall (i) set forth the purpose of the meeting and the matters proposed to be acted on at it (which shall be limited to those lawful matters set forth in the Record Date Request Notice received by the secretary), (ii) bear the date of signature of each such stockholder (or such agent) signing the Special Meeting Request, (iii) set forth (A) the name and address, as they appear in the Corporation's books, of each stockholder signing such request (or on whose behalf the Special Meeting Request is signed), (B) the class, series and number of all shares of stock of the Corporation which are owned (beneficially or of record) by each such stockholder and (C) the nominee holder for, and number of, shares of stock of the Corporation owned beneficially but not of record by such stockholder, (iv) be sent to the secretary by registered mail, return receipt requested, and (v) be received by the secretary within 60 days after the Request Record Date. Any requesting stockholder (or agent duly authorized in a writing accompanying the revocation of the Special Meeting Request) may revoke such stockholder's request for a special meeting at any time by written revocation delivered to the secretary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The secretary shall inform the requesting stockholders of the reasonably estimated cost of preparing and mailing or delivering the notice of the meeting (including the Corporation's proxy materials). The secretary shall not be required to call a special meeting upon stockholder request and such meeting shall not be held unless, in addition to the documents required by paragraph (2) of this Section 3(b), the secretary receives on behalf of the Corporation payment of such reasonably estimated cost prior to the preparation and mailing or delivery of such notice of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the case of any special meeting called by the secretary upon the request of stockholders (a "Stockholder-Requested Meeting"), such meeting shall be held at such place, date and time as may be designated by the Board of Directors; *provided*, however, that the date of any Stockholder-Requested Meeting shall be not more than 90 days after the record date for such meeting (the "Meeting Record Date"); and *provided further* that if the Board of Directors fails to designate, within ten days after the date that a valid Special Meeting Request is actually received by the secretary (the "Delivery Date"), a date and time for a Stockholder-Requested Meeting, then such meeting shall be held at 2:00 p.m., local time, on the 90<sup>th</sup> day after the Meeting Record Date or, if such 90<sup>th</sup> day is not a Business Day (as defined below), on the first preceding Business Day; and *provided further* that if the Board of Directors fails to designate a place for a Stockholder-Requested Meeting within ten days after the Delivery Date, then such meeting shall be held at the principal executive office of the Corporation. In fixing a date for a Stockholder-Requested Meeting, the Board of Directors may consider such factors as it deems relevant, including, without limitation, the nature of the matters to be considered, the facts and circumstances surrounding any request for the meeting and any plan of the Board of Directors to call an annual meeting or a special meeting. In the case of any Stockholder-Requested Meeting, if the Board of Directors fails to fix a Meeting Record Date that is a date within 30 days after the Delivery Date, then the close of business on the 30<sup>th</sup> day after the Delivery Date shall be the Meeting Record Date. The Board of Directors may revoke the notice for any Stockholder-Requested Meeting in the event that the requesting stockholders fail to comply with the provisions of paragraph (3) of this Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If written revocations of the Special Meeting Request have been delivered to the secretary and the result is that stockholders of record (or their agents duly authorized in writing), as of the Request Record Date, entitled to cast less than the Special Meeting Percentage have delivered, and not revoked, requests for a special meeting on the matter to the secretary: (i) if the notice of meeting has not already been delivered, the secretary shall refrain from delivering the notice of the meeting and send to all requesting stockholders who have not revoked such requests written notice of any revocation of a request for a special meeting on the matter, or (ii) if the notice of meeting has been delivered and if the secretary first sends to all requesting stockholders who have not revoked requests for a special meeting on the matter written notice of any revocation of a request for the special meeting and written notice of the Corporation's intention to revoke the notice of the meeting or for the chair of the meeting to adjourn the meeting without action on the matter, (A) the secretary may revoke the notice of the meeting at any time before ten days before the commencement of the meeting or (B) the chair of the meeting may call the meeting to order and adjourn the meeting from time to time without acting on the matter. Any request for a special meeting received after a revocation by the secretary of a notice of a meeting shall be considered a request for a new special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The chair of the board, chief executive officer, president or Board of Directors may appoint regionally or nationally recognized independent inspectors of elections to act as the agent of the Corporation for the purpose of promptly performing a ministerial review of the validity of any purported Special Meeting Request received by the secretary. For the purpose of permitting the inspectors to perform such review, no such purported Special Meeting Request shall be deemed to have been received by the secretary until the earlier of (i) five Business Days after actual receipt by the secretary of such purported request and (ii) such date as the independent inspectors certify to the Corporation that the valid requests received by the secretary represent, as of the Request Record Date, stockholders of record entitled to cast not less than the Special Meeting Percentage. Nothing contained in this paragraph (6) shall in any way be construed to suggest or imply that the Corporation or any stockholder shall not be entitled to contest the validity of any request, whether during or after such five Business Day period, or to take any other action (including, without limitation, the commencement, prosecution or defense of any litigation with respect thereto, and the seeking of injunctive relief in such litigation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) In the case of any Stockholder-Requested Meeting, if information submitted pursuant to any of the provisions of this Section 3(b) by any stockholder proposing business to be conducted at a special meeting of stockholders is inaccurate in any material respect, such information may be deemed not to have been provided in accordance with this Section 3(b). Each requesting stockholder shall notify the Corporation of any inaccuracy or change (within two Business Days of becoming aware of such inaccuracy or change) in any information provided in accordance with this Section 3(b). Upon written request by the secretary of the Corporation or the Board of Directors, any such stockholder shall provide, within five Business Days of delivery of such request (or such other period as may be specified in such request), (i) written verification, satisfactory, in the discretion of the Board of Directors or any authorized officer of the Corporation, to demonstrate the accuracy of any information submitted by the stockholder pursuant to the provisions of this Section 3(b), and (ii) a written update of any information (including, if requested by the Corporation, written confirmation by such stockholder that it continues to intend to bring such business proposal before the special meeting). If a stockholder fails to provide such written verification or written update within such period, the information as to which written verification or a written update was requested may be deemed not to have been provided in accordance with this Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) For purposes of these Bylaws, "Business Day" shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of New York are authorized or obligated by law or executive order to close.

Section 4. <u>NOTICE</u>. Not less than ten nor more than 90 days before each meeting of stockholders, the secretary shall give to each stockholder entitled to vote at such meeting and to each stockholder not entitled to vote who is entitled to notice of the meeting notice in writing or by electronic transmission stating the time and place of the meeting and, in the case of a special meeting or as otherwise may be required by any statute, the purpose for which the meeting is called, by mail, by presenting it to such stockholder personally, by leaving it at the stockholder's residence or usual place of business, by electronic transmission or by any other means permitted by Maryland law. If mailed, such notice shall be deemed to be given when deposited in the United States mail addressed to the stockholder at the stockholder's address as it appears on the records of the Corporation, with postage thereon prepaid. If transmitted electronically, such notice shall be deemed to be given when transmitted to the stockholder by an electronic transmission to any address or number of the stockholder at which the stockholder receives electronic transmissions. The Corporation may give a single notice to all stockholders who share an address, which single notice shall be effective as to any stockholder at such address, unless such stockholder objects to receiving such single notice or revokes a prior consent to receiving such single notice. Failure to give notice of any meeting to one or more stockholders, or any irregularity in such notice, shall not affect the validity of any meeting fixed in accordance with this Article II or the validity of any proceedings at any such meeting.

Subject to Section 11(a) of this Article II, any business of the Corporation may be transacted at an annual meeting of stockholders without being specifically designated in the notice, except such business as is required by any statute to be stated in such notice. No business shall be transacted at a special meeting of stockholders except as specifically designated in the notice. The Corporation may postpone or cancel a meeting of stockholders by making a public announcement (as defined in Section 11(c)(4) of this Article II) of such postponement or cancellation prior to the meeting. Notice of the date, time and place to which the meeting is postponed shall be given not less than ten days prior to such date and otherwise in the manner set forth in this Section 4.

Section 5. <u>ORGANIZATION AND CONDUCT</u>. Every meeting of stockholders shall be conducted by an individual appointed by the Board of Directors to be chair of the meeting or, in the absence of such appointment or appointed individual, by the chair of the board or, in the case of a vacancy in the office or absence of the chair of the board, by one of the following individuals present at the meeting in the following order: the lead independent director, if there is one, the chief executive officer, the president, the vice presidents in their order of rank and, within each rank, in their order of seniority, the secretary, or, in the absence of such officers, a chair chosen by the stockholders by the vote of a majority of the votes cast by stockholders present in person or by proxy. The secretary or, in the case of a vacancy in the office or absence of the secretary, an assistant secretary or an individual appointed by the Board of Directors or the chair of the meeting shall act as secretary. In the event that the secretary presides at a meeting of stockholders, an assistant secretary, or, in the absence of all assistant secretaries, an individual appointed by the Board of Directors or the chair of the meeting, shall record the minutes of the meeting. Even if present at the meeting, the person holding the office named herein may delegate to another person the power to act as chair or secretary of the meeting. The order of business and all other matters of procedure at any meeting of stockholders shall be determined by the chair of the meeting. The chair of the meeting may prescribe such rules, regulations and procedures and take such action as, in the discretion of the chair and without any action by the stockholders, are appropriate for the proper conduct of the meeting, including, without limitation, (a) restricting admission to the time set for the commencement of the meeting; (b) limiting attendance or participation at the meeting to stockholders of record of the Corporation, their duly authorized proxies and such other individuals as the chair of the meeting may determine; (c) recognizing speakers at the meeting and determining when and for how long speakers and any individual speaker may address the meeting; (d) determining when and for how long the polls should be opened and when the polls should be closed and when announcement of the results should be made; (e) maintaining order and security at the meeting; (f) removing any stockholder or any other individual who refuses to comply with meeting procedures, rules or guidelines as set forth by the chair of the meeting; (g) concluding a meeting or recessing or adjourning the meeting, whether or not a quorum is present, to a later date and time and at a place either (i) announced at the meeting or (ii) provided at a future time through means announced at the meeting; (h) complying with any state and local laws and regulations concerning safety and security and (i) restricting the use of audio or video recording devices at the meeting. Unless otherwise determined by the chair of the meeting, meetings of stockholders shall not be required to be held in accordance with any rules of parliamentary procedure.

Section 6. <u>QUORUM</u>. At any meeting of stockholders, the presence in person or by proxy of stockholders entitled to cast a majority of all the votes entitled to be cast at such meeting on any matter shall constitute a quorum; but this section shall not affect any requirement under any statute or the charter of the Corporation (the "Charter") for the vote necessary for the approval of any matter. If such quorum is not established at any meeting of the stockholders, the chair of the meeting may adjourn the meeting from time to time to a date not more than 120 days after the original record date without notice other than announcement at the meeting. The date, time and place of the meeting, as reconvened, shall be either (a) announced at the meeting or (b) provided at a future time through means announced at the meeting.

The stockholders present either in person or by proxy, at a meeting which has been duly called and at which a quorum has been established, may continue to transact business until adjournment, notwithstanding the withdrawal from the meeting of enough stockholders to leave fewer than would be required to establish a quorum.

Section 7. <u>VOTING</u>. A plurality of all the votes cast at a meeting of stockholders duly called and at which a quorum is present shall be sufficient to elect a director. Each share entitles the holder thereof to vote for as many individuals as there are directors to be elected and for whose election the holder is entitled to vote. A majority of the votes cast at a meeting of stockholders duly called and at which a quorum is present shall be sufficient to approve any other matter which may properly come before the meeting, unless more than a majority of the votes cast is required by statute, by the Charter or by these Bylaws. Unless otherwise provided by statute or by the Charter, each outstanding share of stock, regardless of class, entitles the holder thereof to cast one vote on each matter submitted to a vote at a meeting of stockholders. Voting on any question or in any election may be *viva voce* unless the chair of the meeting shall order that voting be by ballot or otherwise.

Section 8. <u>PROXIES</u>. A holder of record of shares of stock of the Corporation may cast votes in person or by proxy that is (a) executed by the stockholder or by the stockholder's duly authorized agent in any manner permitted by applicable law, (b) compliant with Maryland law and these Bylaws and (c) filed in accordance with the procedures established by the Corporation. Such proxy or evidence of authorization of such proxy shall be filed with the record of the proceedings of the meeting. No proxy shall be valid more than eleven months after its date unless otherwise provided in the proxy.

Any stockholder directly or indirectly soliciting proxies from other stockholders must use a proxy card color other than white, which shall be reserved for the exclusive use by the Board of Directors.

Section 9. <u>VOTING OF STOCK BY CERTAIN HOLDERS</u>. Stock of the Corporation registered in the name of a corporation, limited liability company, partnership, joint venture, trust or other entity, if entitled to be voted, may be voted by the president or a vice president, managing member, manager, general partner or trustee thereof, as the case may be, or a proxy appointed by any of the foregoing individuals, unless some other person who has been appointed to vote such stock pursuant to a bylaw or a resolution of the governing body of such corporation or other entity or agreement of the partners of a partnership presents a certified copy of such bylaw, resolution or agreement, in which case such person may vote such stock. Any trustee or fiduciary, in such capacity, may vote stock registered in such trustee's or fiduciary's name, either in person or by proxy.

Shares of stock of the Corporation directly or indirectly owned by it shall not be voted at any meeting and shall not be counted in determining the total number of outstanding shares entitled to be voted at any given time, unless they are held by it in a fiduciary capacity, in which case they may be voted and shall be counted in determining the total number of outstanding shares at any given time.

The Board of Directors may adopt by resolution a procedure by which a stockholder may certify in writing to the Corporation that any shares of stock registered in the name of the stockholder are held for the account of a specified person other than the stockholder. The resolution shall set forth the class of stockholders who may make the certification, the purpose for which the certification may be made, the form of certification and the information to be contained in it; if the certification is with respect to a record date, the time after the record date within which the certification must be received by the Corporation; and any other provisions with respect to the procedure which the Board of Directors considers necessary or appropriate. On receipt by the secretary of the Corporation of such certification, the person specified in the certification shall be regarded as, for the purposes set forth in the certification, the holder of record of the specified stock in place of the stockholder who makes the certification.

Section 10. <u>INSPECTORS</u>. The Board of Directors or the chair of the meeting may appoint, before or at the meeting, one or more inspectors for the meeting and any successor to the inspector. Except as otherwise provided by the chair of the meeting, the inspectors, if any, shall (a) determine the number of shares of stock represented at the meeting, in person or by proxy, and the validity and effect of proxies, (b) receive and tabulate all votes, ballots or consents, (c) report such tabulation to the chair of the meeting, (d) hear and determine all challenges and questions arising in connection with the right to vote, and (e) do such acts as are proper to fairly conduct the election or vote. Each such report shall be in writing and signed by the inspector or by a majority of them if there is more than one inspector acting at such meeting. If there is more than one inspector, the report of a majority shall be the report of the inspectors. The report of the inspector or inspectors on the number of shares represented at the meeting and the results of the voting shall be *prima facie* evidence thereof.

Section 11. <u>ADVANCE NOTICE OF STOCKHOLDER NOMINEES FOR DIRECTOR AND OTHER STOCKHOLDER PROPOSALS</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;(a) <u>Annual Meetings of Stockholders</u>. (1) Nominations of individuals for election to the Board of Directors and proposals of other business to be considered at an annual meeting of stockholders by the stockholders may only be made (i) pursuant to the Corporation's notice of meeting, (ii) by or at the direction of the Board of Directors or (iii) by any stockholder of the Corporation who was a stockholder of record at the record date set by the Board of Directors for the purpose of determining stockholders entitled to vote at the annual meeting, at the time of giving of notice by the stockholder as provided for in this Section 11(a) and at the time of the annual meeting (and any postponement or adjournment thereof), who is entitled to vote at the meeting in the election of each individual so nominated or on any such other business and who has complied with this Section 11(a). The foregoing clause (iii) shall be the exclusive means for a stockholder to make nominations or propose other business at an annual meeting of stockholders (other than a proposal included in the Corporation's proxy statement pursuant to and in compliance with Rule 14a-8 under the Exchange Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) For any nomination or other business to be properly brought before an annual meeting by a stockholder pursuant to clause (iii) of paragraph (a)(1) of this Section 11, the stockholder must have given timely notice thereof in writing to the secretary of the Corporation and any such other business must otherwise be a proper matter for action by the stockholders. To be timely, a stockholder's notice shall set forth all information and representations required under this Section 11 and shall be delivered to the secretary at the principal executive office of the Corporation not earlier than the 150<sup>th</sup> day nor later than 5:00 p.m., Eastern Time, on the 120<sup>th</sup> day prior to the first anniversary of the date of the proxy statement (as defined in Section 11(c)(4) of this Article II) for the preceding year's annual meeting; provided, however, that in connection with the Corporation's first annual meeting or in the event that the date of the annual meeting is advanced or delayed by more than 30 days from the first anniversary of the date of the preceding year's annual meeting, in order for notice by the stockholder to be timely, such notice must be so delivered not earlier than the 150<sup>th</sup> day prior to the date of such annual meeting and not later than 5:00 p.m., Eastern Time, on the later of the 120<sup>th</sup> day prior to the date of such annual meeting, as originally convened, or the tenth day following the day on which public announcement of the date of such meeting is first made. The postponement or adjournment of an annual meeting (or the public announcement thereof) shall not commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Such stockholder's notice shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) as to each individual whom the stockholder proposes to nominate for election or reelection as a director (each, a "Proposed Nominee"), the stockholder giving the notice and each Stockholder Associated Person, all information relating to the Proposed Nominee that would be required to be disclosed in connection with the solicitation of proxies for the election of the Proposed Nominee as a director in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the Exchange Act, or would be required pursuant to the rules of any national securities exchange on which any securities of the Corporation are listed or over-the-counter market on which any securities of the Corporation are traded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) as to any other business that the stockholder proposes to bring before the meeting, (A) a description of such business, the text of any proposal (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend these Bylaws, the language of the proposed amendment), the stockholder's reasons for proposing such business at the meeting and any material interest in such business of such stockholder or any Stockholder Associated Person (as defined below), individually or in the aggregate, including any anticipated benefit to the stockholder or the Stockholder Associated Person therefrom and (B) any other information relating to such item of business that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies in support of the business proposed to be brought before the meeting pursuant to Regulation 14A (or any successor provision) of the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) as to the stockholder giving the notice, any Proposed Nominee and any Stockholder Associated Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 class, series and number of all shares of stock or other securities of the Corporation or any affiliate thereof (collectively, the "Company Securities"), if any, which are owned (beneficially or of record) by such stockholder, Proposed Nominee or Stockholder Associated Person, the date on which each such Company Security was acquired and the investment intent of such acquisition, and any short interest (including any opportunity to profit or share in any benefit from any decrease in the price of such stock or other security) in any Company Securities of any such person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 nominee holder for, and number of, any Company Securities owned beneficially but not of record by such stockholder, Proposed Nominee or Stockholder Associated Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) whether and the extent to which such stockholder, Proposed Nominee or Stockholder Associated Person, directly or indirectly (through brokers, nominees or otherwise), is subject to or during the previous six months has engaged in any hedging, derivative or other transaction or series of transactions or entered into any other agreement, arrangement or understanding (including any short interest, any borrowing or lending of securities or any proxy or voting agreement), the effect or intent of which is to (I) manage risk or benefit of changes in the price of Company Securities for such stockholder, Proposed Nominee or Stockholder Associated Person or (II) increase or decrease the voting power of such stockholder, Proposed Nominee or Stockholder Associated Person in the Corporation disproportionately to such person's economic interest in the Company Securities; 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;&nbsp;&nbsp;&nbsp;&nbsp;(D) any substantial financial interest, direct or indirect (including, without limitation, any existing or prospective commercial, business or contractual relationship with the Corporation), by security holdings or otherwise, of such stockholder, Proposed Nominee or Stockholder Associated Person, in the Corporation, other than an interest arising from the ownership of Company Securities where such stockholder, Proposed Nominee or Stockholder Associated Person receives no extra or special benefit not shared on a *pro rata* basis by all other holders of the same class or series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) as to the stockholder giving the notice, any Stockholder Associated Person with an interest or ownership referred to in clauses (ii) or (iii) of this paragraph (3) of this Section 11(a) and any Proposed Nominee,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 name and address of such stockholder, as they appear on the Corporation's stock ledger, and the current name and address, if different, of each such Stockholder Associated Person and any Proposed Nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 investment strategy or objective, if any, of such stockholder and each such Stockholder Associated Person that is not an individual and a copy of the prospectus, offering memorandum or similar document, if any, provided to investors or potential investors in such stockholder and each such Stockholder Associated Person; 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;&nbsp;&nbsp;&nbsp;&nbsp;(C) a description of (I) any plans or proposals which such stockholder or Stockholder Associated Person may have with respect to any Company Securities that would be required to be disclosed pursuant to Item 4 of the Exchange Act Schedule 13D and (II) any agreement, arrangement or understanding with respect to the nomination or other business between or among such stockholder and Stockholder Associated Person and any other person, including, without limitation, any agreements that would be required to be disclosed pursuant to Item 5 or Item 6 of Exchange Act Schedule 13D, regardless of whether the requirement to file a Schedule 13D is 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the name and address of any person who contacted or was contacted by the stockholder giving the notice or any Stockholder Associated Person about the Proposed Nominee or other business proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to the extent known by the stockholder giving the notice, the name and address of any other person financially supporting the nominee for election or reelection as a director or the proposal of other business; 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;(vii) if the stockholder is proposing one or more Proposed Nominees, a representation that such stockholder, Proposed Nominee or Stockholder Associated Person intends or is part of a group which intends to solicit the holders of shares representing at least 67% of the voting power of shares entitled to vote on the election of directors in support of Proposed Nominees in accordance with Rule 14a-19 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all other information regarding the stockholder giving the notice and each Stockholder Associated Person that would be required to be disclosed by the stockholder in connection with the solicitation of proxies for the election of directors in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such a solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Such stockholder's notice shall, with respect to any Proposed Nominee, be accompanied by a:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) written representation executed by the Proposed Nominee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) that such Proposed Nominee (I) is not, and will not become, a party to any agreement, arrangement or understanding with any person or entity other than the Corporation in connection with service or action as a director that has not been disclosed to the Corporation, (II) consents to be named in a proxy statement as a nominee, (III) consents to serve as a director of the Corporation if elected, (IV) will notify the Corporation simultaneously with the notification to the stockholder of the Proposed Nominee's actual or potential unwillingness or inability to serve as a director and (V) does not need any permission or consent from any third party to serve as a director of the Corporation, if elected, that has not been obtained, including any employer or any other board or governing body on which such Proposed Nominee serves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) attaching copies of any and all requisite permissions or consents; 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;&nbsp;&nbsp;&nbsp;&nbsp;(C) attaching a completed Proposed Nominee questionnaire (which questionnaire shall be provided by the Corporation, upon request, to the stockholder providing the notice) and shall include all information relating to the Proposed Nominee that would be required to be disclosed in connection with the solicitation of proxies for the election of the Proposed Nominee as a director in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such solicitation, in each case pursuant to Regulation 14A (or any successor provision under the Exchange Act, or would be required pursuant to the rules of any national securities exchange on which any securities of the Corporation are listed or over-the-counter market on which any securities of the Corporation are traded); 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;(ii) written representation executed by the stockholder that such stockholder will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) comply with Rule 14a-19 promulgated under the Exchange Act in connection with such stockholder's solicitation of proxies in support of any Proposed Nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) notify the Corporation as promptly as practicable of any determination by the stockholder to no longer solicit proxies for the election of any Proposed Nominee as a director at the annual meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) furnish such other or additional information as the Corporation may request for the purpose of determining whether the requirements of this Section 11 have been complied with and of evaluating any nomination or other business described in the stockholder's notice; 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;&nbsp;&nbsp;&nbsp;&nbsp;(D) appear in person or by proxy at the meeting to nominate any Proposed Nominees or to bring such business before the meeting, as applicable, and acknowledges that if the stockholder does not so appear in person or by proxy at the meeting to nominate such Proposed Nominees or bring such business before the meeting, as applicable, the Corporation need not bring such Proposed Nominee or such business for a vote at such meeting and any proxies or votes cast in favor of the election of any such Proposed Nominee or of any proposal related to such other business need not be counted or considered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) For purposes of this Section 11, "Stockholder Associated Person" of any stockholder shall mean (i) any person who is a member, with such stockholder, of any "group," as that term is used for purposes of Section 13(d)(3) of the Exchange Act or who is otherwise a participant (as defined in Instruction 3 to Item 4 of Schedule 14A under the Exchange Act) in the solicitation, (ii) any beneficial owner of shares of stock of the Corporation owned of record or beneficially by such stockholder (other than a stockholder that is a depositary) and (iii) any person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such stockholder or such Stockholder Associated Person.

&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>Special Meetings of Stockholders</u>. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the Corporation's notice of meeting. No stockholder may make a proposal of other business to be considered at a special meeting or, except as contemplated by and in accordance with the next two sentences of this Section 11(b), nominate an individual for election to the Board of Directors at a special meeting. Nominations of individuals for election to the Board of Directors may be made at a special meeting of stockholders at which directors are to be elected only (1) by or at the direction of the Board of Directors or (2) provided that the special meeting has been called in accordance with Section 3(a) of this Article II for the purpose of electing directors, by any stockholder of the Corporation who is a stockholder of record at the record date set by the Board of Directors for the purpose of determining stockholders entitled to vote at the special meeting, at the time of giving of notice provided for in this Section 11 and at the time of the special meeting (and any postponement or adjournment thereof), who is entitled to vote at the meeting in the election of each individual so nominated and who has complied with the notice procedures set forth in this Section 11. In the event the Corporation calls a special meeting of stockholders for the purpose of electing one or more individuals to the Board of Directors, any stockholder may nominate an individual or individuals (as the case may be) for election as a director as specified in the Corporation's notice of meeting, if the stockholder's notice, containing the information and representations required by paragraphs (a)(3) and (4) of this Section 11, is delivered to the secretary at the principal executive office of the Corporation not earlier than the 120<sup>th</sup> day prior to such special meeting and not later than 5:00 p.m., Eastern Time**,** on the later of the 90<sup>th</sup> day prior to such special meeting or the tenth day following the day on which public announcement is first made of the date of the special meeting. The postponement or adjournment of a special meeting (or public announcement thereof) shall not commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

&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>General</u>. (1) If any information or representation submitted pursuant to this Section 11 by any stockholder proposing a nominee for election as a director or any proposal for other business at a meeting of stockholders, including any information or representation from a Proposed Nominee, shall be inaccurate in any material respect, such information or representation may be deemed not to have been provided in accordance with this Section 11. Any such stockholder shall notify the Corporation of any inaccuracy or change (within two Business Days of becoming aware of such inaccuracy or change) in any such information or representation. Upon written request by the secretary or the Board of Directors, any such stockholder or Proposed Nominee shall provide, within five Business Days of delivery of such request (or such other period as may be specified in such request), (i) written verification, satisfactory, in the discretion of the Board of Directors or any authorized officer of the Corporation, to demonstrate the accuracy of any information submitted by the stockholder pursuant to this Section 11, (ii) a written update of any information (including, if requested by the Corporation, written confirmation by such stockholder that it continues to intend to bring such nomination or other business proposal before the meeting and, if applicable, satisfy the requirements of Rule 14a-19(a)(3)) submitted by the stockholder pursuant to this Section 11 as of an earlier date and (iii) an updated representation by each Proposed Nominee that such individual will serve as a director of the Corporation if elected. If a stockholder or Proposed Nominee fails to provide such written verification, update or representation within such period, the information as to which such written verification, update or representation was requested may be deemed not to have been provided in accordance with this Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Only such individuals who are nominated in accordance with this Section 11 shall be eligible for election by stockholders as directors, and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with this Section 11. A stockholder proposing a Proposed Nominee shall have no right to (i) nominate a number of Proposed Nominees that exceed the number of directors to be elected at the meeting or (ii) substitute or replace any Proposed Nominee unless such substitute or replacement is nominated in accordance with this Section 11 (including the timely provision of all information and representations with respect to such substitute or replacement Proposed Nominee in accordance with the deadlines set forth in this Section 11). If the Corporation provides notice to a stockholder that the number of Proposed Nominees proposed by such stockholder exceeds the number of directors to be elected at a meeting, the stockholder must provide written notice to the Corporation within five Business Days stating the names of the Proposed Nominees that have been withdrawn so that the number of Proposed Nominees proposed by such stockholder no longer exceeds the number of directors to be elected at a meeting. If any individual who is nominated in accordance with this Section 11 becomes unwilling or unable to serve on the Board of Directors, then the nomination with respect to such individual shall no longer be valid and no votes may validly be cast for such individual. The chair of the meeting shall have the power to determine whether a nomination or any other business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with this Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding the foregoing provisions of this Section 11, the Corporation shall disregard any proxy authority granted in favor of, or votes for, director nominees other than the Corporation's nominees if the stockholder or Stockholder Associated Person (each, a "Soliciting Stockholder") soliciting proxies in support of such director nominees abandons the solicitation or does not (i) comply with Rule 14a-19 promulgated under the Exchange Act, including any failure by the Soliciting Stockholder to (A) provide the Corporation with any notices required thereunder in a timely manner or (B) comply with the requirements of Rule 14a-19(a)(2) and Rule 14a-19(a)(3) promulgated under the Exchange Act or (ii) timely provide sufficient evidence in the determination of the Board of Directors sufficient to satisfy the Corporation that such Soliciting Stockholder has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act in accordance with the following sentence. Upon request by the Corporation, if any Soliciting Stockholder provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act (or is not required to provide notice because the information required by Rule 14a-19(b) has been provided in a preliminary or definitive proxy statement previously filed by such Soliciting Stockholder), such Soliciting Stockholder shall deliver to the Corporation, no later than five Business Days prior to the applicable meeting, sufficient evidence in the judgment of the Board of Directors that it has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) For purposes of this Section 11, "the date of the proxy statement" shall have the same meaning as "the date of the company's proxy statement released to shareholders" as used in Rule 14a-8(e) promulgated under the Exchange Act, as interpreted by the Securities and Exchange Commission from time to time. "Public announcement" shall mean disclosure (i) in a press release reported by the Dow Jones News Service, Associated Press, Business Wire, PR Newswire or other widely circulated news or wire service or (ii) in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding the foregoing provisions of this Section 11, a stockholder shall also comply with all applicable requirements of state law and of the Exchange Act with respect to the matters set forth in this Section 11. Nothing in this Section 11 shall be deemed to affect any right of a stockholder to request inclusion of a proposal in, or the right of the Corporation to omit a proposal from, any proxy statement filed by the Corporation with the Securities and Exchange Commission pursuant to Rule 14a-8 (or any successor provision) under the Exchange Act. Nothing in this Section 11 shall require disclosure of revocable proxies received by, or routine solicitation contacts made by or on behalf of, the stockholder or Stockholder Associated Person pursuant to a solicitation of proxies after the filing of a definitive proxy statement on Schedule 14A by such stockholder or Stockholder Associated Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything in these Bylaws to the contrary, except as otherwise determined by the chair of the meeting, if the stockholder giving notice as provided for in this Section 11 does not appear in person or by proxy at such annual or special meeting to present each nominee for election as a director or the proposed business, as applicable, such matter shall not be considered at the meeting.

Section 12. <u>CONTROL SHARE ACQUISITION ACT</u>. Notwithstanding any other provision of the Charter or these Bylaws, Title 3, Subtitle 7 of the Maryland General Corporation Law, or any successor statute (the "MGCL"), shall not apply to any acquisition by any person of shares of stock of the Corporation.

**ARTICLE III**

**DIRECTORS**

Section 1. <u>GENERAL POWERS</u>. The business and affairs of the Corporation shall be managed under the direction of the Board of Directors.

Section 2. <u>NUMBER, QUALIFICATIONS AND RESIGNATION</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;(a) <u>Number</u>. A majority of the entire Board of Directors may establish, increase or decrease the number of directors, provided that the number thereof shall never be less than the minimum number required by the MGCL, nor more than 15, and further provided that the tenure of office of a director shall not be affected by any decrease in the number of directors.

&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>Resignation</u>. Any director of the Corporation may resign at any time by delivering his or her resignation to the Board of Directors, the chair of the board or the secretary. Any resignation shall take effect immediately upon its receipt or at such later time specified in the resignation. The acceptance of a resignation shall not be necessary to make it effective unless otherwise stated in the resignation.

Section 3. <u>ANNUAL AND REGULAR MEETINGS</u>. The Board of Directors may provide, by resolution, the time and place of annual or regular meetings of the Board of Directors without other notice than such resolution.

Section 4. <u>SPECIAL MEETINGS</u>. Special meetings of the Board of Directors may be called by or at the request of the chair of the board, the chief executive officer, the president or a majority of the directors then in office. The person or persons authorized to call special meetings of the Board of Directors may fix the time and place of any special meeting of the Board of Directors called by them. The Board of Directors may provide, by resolution, the time and place of special meetings of the Board of Directors without other notice than such resolution.

Section 5. <u>NOTICE</u>. Notice of any special meeting of the Board of Directors shall be delivered personally or by telephone, electronic mail, facsimile transmission, courier or United States mail to each director at such director's business or residence address. Notice by personal delivery, telephone, electronic mail or facsimile transmission shall be given at least 24 hours prior to the meeting. Notice by United States mail shall be given at least three days prior to the meeting. Notice by courier shall be given at least two days prior to the meeting. Telephone notice shall be deemed to be given when the director or such director's agent is personally given such notice in a telephone call to which the director or such director's agent is a party. Electronic mail notice shall be deemed to be given upon transmission of the message to the electronic mail address given to the Corporation by the director. Facsimile transmission notice shall be deemed to be given upon completion of the transmission of the message to the number given to the Corporation by the director and receipt of a completed answer-back indicating receipt. Notice by United States mail shall be deemed to be given when deposited in the United States mail properly addressed, with postage thereon prepaid. Notice by courier shall be deemed to be given when deposited with or delivered to a courier properly addressed. Neither the business to be transacted at, nor the purpose of, any annual, regular or special meeting of the Board of Directors need be stated in the notice, unless specifically required by statute or these Bylaws.

Section 6. <u>QUORUM</u>. A majority of the directors then serving shall constitute a quorum for the transaction of business at any meeting of the Board of Directors, provided that, if less than a majority of such directors is present at such meeting, a majority of the directors present may adjourn the meeting from time to time without further notice, and provided further that if, pursuant to applicable law, the Charter or these Bylaws, the vote of a majority or other percentage of a specified group of directors is required for action, a quorum must also include a majority or such other percentage of such group.

The directors present at a meeting which has been duly called and at which a quorum has been established may continue to transact business until adjournment, notwithstanding the withdrawal from the meeting of enough directors to leave fewer than required to establish a quorum.

Section 7. <u>VOTING</u>. The action of a majority of the directors present at a meeting at which a quorum is present shall be the action of the Board of Directors, unless the concurrence of a greater proportion is required for such action by applicable law, the Charter or these Bylaws. If enough directors have withdrawn from a meeting to leave fewer than required to establish a quorum, but the meeting is not adjourned, the action of the majority of that number of directors necessary to constitute a quorum at such meeting shall be the action of the Board of Directors, unless the concurrence of a greater proportion is required for such action by applicable law, the Charter or these Bylaws.

Section 8. <u>ORGANIZATION</u>. At each meeting of the Board of Directors, the chair of the board or, in the absence of the chair, the vice chair of the board, if any, shall act as chair of the meeting. Even if present at the meeting, such director may designate another director to act as chair of the meeting. In the absence of both the chair of the board and the vice chair of the board, the chief executive officer or, in the absence of the chief executive officer or if the chief executive officer is not a director, the president or, in the absence of the president or if neither the chief executive officer nor the president is a director, a director chosen by a majority of the directors present, shall act as chair of the meeting. The secretary or, in the secretary's absence, an assistant secretary of the Corporation, or, in the absence of the secretary and all assistant secretaries, an individual appointed by the chair of the meeting, shall act as secretary of the meeting.

Section 9. <u>MEETINGS BY REMOTE COMMUNICATION</u>. Directors may participate in a meeting by means of a conference telephone or other communications equipment if all persons participating in the meeting can hear each other at the same time. Participation in a meeting by these means shall constitute presence in person at the meeting.

Section 10. <u>CONSENT BY DIRECTORS WITHOUT A MEETING</u>. Any action required or permitted to be taken at any meeting of the Board of Directors may be taken without a meeting, if a consent in writing or by electronic transmission to such action is given by each director and is filed with the minutes of proceedings of the Board of Directors.

Section 11. <u>VACANCIES</u>*.* If for any reason any or all of the directors cease to be directors, such event shall not terminate the Corporation or affect these Bylaws or the powers of the remaining directors hereunder. Except as may be provided by the Board of Directors in setting the terms of any class or series of preferred stock, any vacancy on the Board of Directors may be filled only by a majority of the remaining directors, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy shall serve for the remainder of the full term of the directorship in which the vacancy occurred and until a successor is elected and qualifies.

Section 12. <u>COMPENSATION</u>. Directors shall not receive any stated salary for their services as directors but, by resolution of the Board of Directors, may receive compensation per year and/or per meeting and/or per visit to real property or other facilities owned or leased by the Corporation and for any service or activity they performed or engaged in as directors. Directors may be reimbursed for expenses of attendance, if any, at each annual, regular or special meeting of the Board of Directors or of any committee thereof and for their expenses, if any, in connection with each property visit and any other service or activity they perform or engage in as directors; but nothing herein contained shall be construed to preclude any directors from serving the Corporation in any other capacity and receiving compensation therefor.

Section 13. <u>RELIANCE</u>. Each director and officer of the Corporation shall, in the performance of such director's or officer's duties with respect to the Corporation, be entitled to rely on any information, opinion, report or statement, including any financial statement or other financial data, prepared or presented by an officer or employee of the Corporation whom the director or officer reasonably believes to be reliable and competent in the matters presented, by a lawyer, certified public accountant or other person, as to a matter which the director or officer reasonably believes to be within the person's professional or expert competence, or, with respect to a director, by a committee of the Board of Directors on which the director does not serve, as to a matter within its designated authority, if the director reasonably believes the committee to merit confidence.

Section 14. <u>RATIFICATION</u>. The Board of Directors or the stockholders may ratify any act, omission, failure to act or determination made not to act (an "Act") by the Corporation or its officers to the extent that the Board of Directors or the stockholders could have originally authorized the Act and, if so ratified, such Act shall have the same force and effect as if originally duly authorized, and such ratification shall be binding upon the Corporation and its stockholders. Any Act questioned in any proceeding on the ground of lack of authority, defective or irregular execution, adverse interest of a director, officer or stockholder, non-disclosure, miscomputation, the application of improper principles or practices of accounting or otherwise, may be ratified, before or after judgment, by the Board of Directors or by the stockholders, and such ratification shall constitute a bar to any claim or execution of any judgment in respect of such questioned Act.

Section 15. <u>EMERGENCY PROVISIONS</u>. Notwithstanding any other provision in the Charter or these Bylaws, this Section 15 shall apply during the existence of any catastrophe, or other similar emergency condition, as a result of which a quorum of the Board of Directors under Article III of these Bylaws cannot readily be obtained (an "Emergency"). During any Emergency, unless otherwise provided by the Board of Directors, (a) a meeting of the Board of Directors or a committee thereof may be called by any director or officer by any means feasible under the circumstances; (b) notice of any meeting of the Board of Directors during such an Emergency may be given less than 24 hours prior to the meeting to as many directors and by such means as may be feasible at the time, including publication, television or radio; and (c) the number of directors necessary to constitute a quorum shall be one-third of the entire Board of Directors.

**ARTICLE IV**

**COMMITTEES**

Section 1. <u>NUMBER, TENURE AND QUALIFICATIONS</u>. The Board of Directors may appoint from among its members one or more committees, composed of one or more directors, to serve at the pleasure of the Board of Directors. In the absence of any member of any such committee, the members thereof present at any meeting, whether or not they constitute a quorum, may appoint another director to act in the place of such absent member.

Section 2. <u>POWERS</u>. The Board of Directors may delegate to any committee appointed under Section 1 of this Article any of the powers of the Board of Directors, except as prohibited by law. Except as may be otherwise provided by the Board of Directors, any committee may delegate some or all of its power and authority to one or more subcommittees, composed of one or more directors, as the committee deems appropriate.

Section 3. <u>MEETINGS</u>. Notice of committee meetings shall be given in the same manner as notice for special meetings of the Board of Directors. A majority of the members of the committee shall constitute a quorum for the transaction of business at any meeting of the committee. The act of a majority of the committee members present at a meeting shall be the act of such committee. The Board of Directors, or in the absence of such designation, the applicable committee, may designate a chair of any committee, and such chair or, in the absence of a chair, any two members of any committee (if there are at least two members of the committee) may fix the time and place of its meeting unless the Board shall otherwise provide.

Section 4. <u>MEETINGS BY REMOTE COMMUNICATION</u>. Members of a committee of the Board of Directors may participate in a meeting by means of a conference telephone or other communications equipment if all persons participating in the meeting can hear each other at the same time. Participation in a meeting by these means shall constitute presence in person at the meeting.

Section 5. <u>CONSENT BY COMMITTEES WITHOUT A MEETING</u>. Any action required or permitted to be taken at any meeting of a committee of the Board of Directors may be taken without a meeting, if a consent in writing or by electronic transmission to such action is given by each member of the committee and is filed with the minutes of proceedings of such committee.

Section 6. <u>CHANGES</u>. Subject to the provisions hereof, the Board of Directors shall have the power at any time to change the membership of any committee, to appoint the chair of any committee, to fill any vacancy, to designate an alternate member to replace any absent or disqualified member, to dissolve any such committee or to withdraw or add to any powers previously delegated to a committee.

**ARTICLE V**

**OFFICERS**

Section 1. <u>GENERAL PROVISIONS</u>. The officers of the Corporation shall include a president, a secretary and a treasurer and may include a chair of the board, a vice chair of the board, a chief executive officer, one or more vice presidents, a chief operating officer, a chief financial officer, one or more assistant secretaries and one or more assistant treasurers. In addition, the Board of Directors may from time to time elect such other officers with such powers and duties as it shall deem necessary or appropriate. The officers of the Corporation shall be elected by the Board of Directors, except that the chief executive officer or president may from time to time appoint one or more vice presidents, assistant secretaries and assistant treasurers or other officers. Each officer shall serve until such officer's successor is elected and qualifies or until such officer's death, resignation or removal in the manner hereinafter provided. Any two or more offices except president and vice president may be held by the same person. Election of an officer or agent shall not of itself create contract rights between the Corporation and such officer or agent.

Section 2. <u>REMOVAL AND RESIGNATION</u>. Any officer or agent of the Corporation may be removed, with or without cause, by the Board of Directors, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Any officer of the Corporation may resign at any time by delivering his or her resignation to the Board of Directors, the chair of the board, the chief executive officer, the president or the secretary. Any resignation shall take effect immediately upon its receipt or at such later time specified in the resignation. The acceptance of a resignation shall not be necessary to make it effective unless otherwise stated in the resignation. Such resignation shall be without prejudice to the contract rights, if any, of the Corporation.

Section 3. <u>VACANCIES</u>. A vacancy in any office may be filled by the Board of Directors for the balance of the term.

Section 4. <u>CHAIR OF THE BOARD</u>. The Board of Directors may designate from among its members a chair of the board, who shall not, solely by reason of these Bylaws, be an officer of the Corporation. The Board of Directors may designate the chair of the board as an executive or non-executive chair. The chair of the board shall preside over the meetings of the Board of Directors. The chair of the board shall perform such other duties as may be assigned to him or her by these Bylaws or the Board of Directors.

Section 5. <u>CHIEF EXECUTIVE OFFICER</u>. The Board of Directors may designate a chief executive officer. In the absence of such designation, the chair of the board shall be the chief executive officer of the Corporation. The chief executive officer shall have general responsibility for implementation of the policies of the Corporation, as determined by the Board of Directors, and for the management of the business and affairs of the Corporation. The chief executive officer may execute any deed, mortgage, bond, contract or other instrument, except in cases where the execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent of the Corporation or shall be required by law to be otherwise executed; and in general shall perform all duties incident to the office of chief executive officer and such other duties as may be prescribed by the Board of Directors from time to time.

Section 6. <u>CHIEF OPERATING OFFICER</u>. The Board of Directors may designate a chief operating officer. The chief operating officer shall have the responsibilities and duties as determined by the Board of Directors or the chief executive officer.

Section 7. <u>CHIEF FINANCIAL OFFICER</u>. The Board of Directors may designate a chief financial officer. The chief financial officer shall have the responsibilities and duties as determined by the Board of Directors or the chief executive officer.

Section 8. <u>PRESIDENT</u>. In the absence of a chief executive officer, the president shall in general supervise and control all of the business and affairs of the Corporation. In the absence of a designation of a chief operating officer by the Board of Directors, the president shall be the chief operating officer. The president may execute any deed, mortgage, bond, contract or other instrument, except in cases where the execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent of the Corporation or shall be required by law to be otherwise executed; and in general shall perform all duties incident to the office of president and such other duties as may be prescribed by the Board of Directors from time to time.

Section 9. <u>VICE PRESIDENTS</u>. In the absence of the president or in the event of a vacancy in such office, the vice president (or in the event there be more than one vice president, the vice presidents in the order designated at the time of their election or, in the absence of any designation, then in the order of their election) shall perform the duties of the president and when so acting shall have all the powers of and be subject to all the restrictions upon the president; and shall perform such other duties as from time to time may be assigned to such vice president by the chief executive officer, the president or the Board of Directors. The Board of Directors may designate one or more vice presidents as executive vice president, senior vice president, or vice president for particular areas of responsibility.

Section 10. <u>SECRETARY</u>. The secretary shall (a) keep the minutes of the proceedings of the stockholders, the Board of Directors and committees of the Board of Directors in one or more books provided for that purpose; (b) see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law; (c) be custodian of the corporate records and of the seal of the Corporation; (d) keep a register of the post office address of each stockholder which shall be furnished to the secretary by such stockholder; (e) have general charge of the stock transfer books of the Corporation; and (f) in general perform such other duties as from time to time may be assigned to the secretary by the chief executive officer, the president or the Board of Directors.

Section 11. <u>TREASURER</u>. The treasurer shall have the custody of the funds and securities of the Corporation, shall keep full and accurate accounts of receipts and disbursements in books belonging to the Corporation, shall deposit all moneys and other valuable effects in the name and to the credit of the Corporation in such depositories as may be designated by the Board of Directors and in general perform such other duties as from time to time may be assigned to the treasurer by the chief executive officer, the president or the Board of Directors. In the absence of a designation of a chief financial officer by the Board of Directors, the treasurer shall be the chief financial officer of the Corporation.

Section 12. <u>ASSISTANT SECRETARIES AND ASSISTANT TREASURERS</u>. The assistant secretaries and assistant treasurers, in general, shall perform such duties as shall be assigned to them by the secretary or treasurer, respectively, or by the chief executive officer, the president or the Board of Directors.

Section 13. <u>COMPENSATION</u>. The compensation of the officers shall be fixed from time to time by or under the authority of the Board of Directors and no officer shall be prevented from receiving such compensation by reason of the fact that such officer is also a director.

**ARTICLE VI**

**CONTRACTS, CHECKS AND DEPOSITS**

Section 1. <u>CONTRACTS</u>. The Board of Directors may authorize any officer or agent to enter into any contract or to execute and deliver any instrument in the name of and on behalf of the Corporation and such authority may be general or confined to specific instances. Any agreement, deed, mortgage, lease or other document shall be valid and binding upon the Corporation when duly authorized or ratified by action of the Board of Directors and executed by the chief executive officer, the president or any other person authorized by the Board of Directors.

Section 2. <u>CHECKS AND DRAFTS</u>. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Corporation shall be signed by the chief executive officer, the president, the chief financial officer, the treasurer or such other officer or agent of the Corporation as shall from time to time be determined by the Board of Directors.

Section 3. <u>DEPOSITS</u>. All funds of the Corporation not otherwise employed shall be deposited or invested from time to time to the credit of the Corporation as the Board of Directors, the chief executive officer, the president, the chief financial officer, the treasurer or any other officer designated by the Board of Directors may determine.

**ARTICLE VII**

**STOCK**

Section 1. <u>CERTIFICATES</u>. Except as may be otherwise provided by the Board of Directors or any officer of the Corporation, stockholders of the Corporation are not entitled to certificates representing the shares of stock held by them. In the event that the Corporation issues shares of stock represented by certificates, such certificates shall be in such form as prescribed by the Board of Directors or a duly authorized officer, shall contain the statements and information required by the MGCL and shall be signed by the officers of the Corporation in any manner permitted by the MGCL. In the event that the Corporation issues shares of stock without certificates, to the extent then required by the MGCL the Corporation shall provide to the record holders of such shares a written statement of the information required by the MGCL to be included on stock certificates. There shall be no difference in the rights and obligations of stockholders based on whether or not their shares are represented by certificates.

Section 2. <u>TRANSFERS</u>. All transfers of shares of stock shall be made on the books of the Corporation in such manner as the Board of Directors or any officer of the Corporation may prescribe and, if such shares are certificated, upon surrender of certificates duly endorsed. The issuance of a new certificate upon the transfer of certificated shares is subject to the determination of the Board of Directors or an officer of the Corporation that such shares shall no longer be represented by certificates. Upon the transfer of any uncertificated shares, the Corporation shall provide to the record holders of such shares, to the extent then required by the MGCL, a written statement of the information required by the MGCL to be included on stock certificates.

The Corporation shall be entitled to treat the holder of record of any share of stock as the holder in fact thereof and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such share or on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise expressly provided by the laws of the State of Maryland.

Notwithstanding the foregoing, transfers of shares of any class or series of stock will be subject in all respects to the Charter and all of the terms and conditions contained therein.

Section 3. <u>REPLACEMENT CERTIFICATE</u>. Any officer of the Corporation may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the Corporation alleged to have been lost, destroyed, stolen or mutilated, upon the making of an affidavit of that fact by the person claiming the certificate to be lost, destroyed, stolen or mutilated; provided, however, if such shares have ceased to be certificated, no new certificate shall be issued unless requested in writing by such stockholder and the Board of Directors or an officer of the Corporation has determined that such certificates may be issued. Unless otherwise determined by an officer of the Corporation, the owner of such lost, destroyed, stolen or mutilated certificate or certificates, or such owner's legal representative, shall be required, as a condition precedent to the issuance of a new certificate or certificates, to give the Corporation a bond in such sums as it may direct as indemnity against any claim that may be made against the Corporation.

Section 4. <u>FIXING OF RECORD DATE</u>. The Board of Directors may set, in advance, a record date for the purpose of determining stockholders entitled to notice of or to vote at any meeting of stockholders or determining stockholders entitled to receive payment of any dividend or the allotment of any other rights, or in order to make a determination of stockholders for any other proper purpose. Such record date, in any case, shall not be prior to the close of business on the day the record date is fixed and shall be not more than 90 days and, in the case of a meeting of stockholders, not less than ten days, before the date on which the meeting or particular action requiring such determination of stockholders of record is to be held or taken.

When a record date for the determination of stockholders entitled to notice of or to vote at any meeting of stockholders has been set as provided in this section, such record date shall continue to apply to the meeting if postponed or adjourned, except if the meeting is postponed or adjourned to a date more than 120 days after the record date originally fixed for the meeting, in which case a new record date for such meeting shall be determined as set forth herein.

Section 5. <u>STOCK LEDGER</u>. The Corporation shall maintain at its principal office or at the office of its counsel, accountants or transfer agent, an original or duplicate stock ledger containing the name and address of each stockholder and the number of shares of each class held by such stockholder.

Section 6. <u>FRACTIONAL STOCK; ISSUANCE OF UNITS</u>. The Board of Directors may authorize the Corporation to issue fractional shares of stock or authorize the issuance of scrip, all on such terms and under such conditions as it may determine. Notwithstanding any other provision of the Charter or these Bylaws, the Board of Directors may authorize the issuance of units consisting of different securities of the Corporation.

**ARTICLE VIII**

**ACCOUNTING YEAR**

The Board of Directors shall have the power, from time to time, to fix the fiscal year of the Corporation by a duly adopted resolution.

**ARTICLE IX**

**DISTRIBUTIONS**

Section 1. <u>AUTHORIZATION</u>. Dividends and other distributions upon the stock of the Corporation may be authorized by the Board of Directors, subject to the provisions of law and the Charter. Dividends and other distributions may be paid in cash, property or stock of the Corporation, subject to the provisions of law and the Charter.

Section 2. <u>CONTINGENCIES</u>. Before payment of any dividend or other distribution, there may be set aside out of any assets of the Corporation available for dividends or other distributions such sum or sums as the Board of Directors may from time to time, in its sole discretion, think proper as a reserve fund for contingencies, for equalizing dividends, for repairing or maintaining any property of the Corporation or for such other purpose as the Board of Directors shall determine, and the Board of Directors may modify or abolish any such reserve.

**ARTICLE X**

**SEAL**

Section 1. <u>SEAL</u>. The Board of Directors may authorize the adoption of a seal by the Corporation. The seal shall contain the name of the Corporation and the year of its incorporation and the words "Incorporated Maryland" or such other language as may be approved by the Board of Directors. The Board of Directors may authorize one or more duplicate seals and provide for the custody thereof.

Section 2. <u>AFFIXING SEAL</u>. Whenever the Corporation is permitted or required to affix its seal to a document, it shall be sufficient to meet the requirements of any law, rule or regulation relating to a seal to place the word "(SEAL)" adjacent to the signature of the person authorized to execute the document on behalf of the Corporation.

**ARTICLE XI**

**WAIVER OF NOTICE**

Whenever any notice of a meeting is required to be given pursuant to the Charter or these Bylaws or pursuant to applicable law, a waiver thereof in writing or by electronic transmission, given by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Neither the business to be transacted at nor the purpose of any meeting need be set forth in the waiver of notice of such meeting, unless specifically required by statute. The attendance of any person at any meeting shall constitute a waiver of notice of such meeting, except where such person attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting has not been lawfully called or convened.

**ARTICLE XII**

**EXCLUSIVE FORUM FOR CERTAIN LITIGATION**

Section 1. <u>CERTAIN STATE LAW CLAIMS</u>. Unless the Corporation consents 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, Northern Division, shall be the sole and exclusive forum for (a) any Internal Corporate Claim, as such term is defined in the MGCL, including, without limitation, (i) any derivative action or proceeding brought on behalf of the Corporation, other than any action asserting solely claims arising solely under federal securities laws, (ii) any action asserting a claim of breach of any duty owed by any director or officer or other employee of the Corporation to the Corporation or to the stockholders of the Corporation or (iii) any action asserting a claim against the Corporation or any director or officer or other employee of the Corporation arising pursuant to any provision of the MGCL, the Charter or these Bylaws, or (b) any other action asserting a claim against the Corporation or any director or officer or other employee of the Corporation that is governed by the internal affairs doctrine. None of the foregoing actions, claims or proceedings may be brought in any court sitting outside the State of Maryland unless the Corporation consents in writing to such court. This Article XII, Section 1 does not apply to claims arising under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction.

Section 2. <u>SECURITIES ACT CLAIMS</u>. Unless the Corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. This Article XII, Section 2 does not apply to claims arising under the Exchange Act.

**ARTICLE XIII**

**AMENDMENT OF BYLAWS**

These Bylaws may be amended, altered, repealed or replaced, and new Bylaws may be adopted, either (a) by the vote of the stockholders entitled to cast at least a majority of the votes entitled to be cast thereon at any duly organized annual or special meeting of stockholders or, (b) with respect to those matters which are not by statute reserved exclusively to the stockholders, by vote of a majority of the Board of Directors.

Amended and Restated as of [_________], 2026

## Exhibit 8.1

**Exhibit 8.1**

**CLIFFORD CHANCE US LLP**<br>Two Manhattan West<br> 375 9th Avenue<br> New York, NY 10001<br>Tel +1 212 878 8000<br> Fax +1 212 878 8375<br>www.cliffordchance.com<br>

January 12, 2026

JOSS Realty REIT, Inc.<br> 650 5th Avenue, Suite 2700<br> New York, New York 10019

Re: REIT Qualification of JOSS Realty REIT, Inc.

Ladies and Gentlemen:

We have acted as counsel to JOSS Realty REIT, Inc., a Maryland corporation (the "<u>Company</u>"), in connection with its filing of a Registration Statement on Form S-11 (together with any amendments thereto, the "<u>Registration Statement</u>") with the Securities and Exchange Commission (the "<u>SEC</u>") on the date hereof, relating to the offer and sale from time to time of up to 3,450,000 shares of the Company's common stock, par value $0.01 per share.

In rendering the opinions expressed herein, we have examined and, with your permission, relied on the following items:

&nbsp;&nbsp;&nbsp;&nbsp;1. the
Articles of Amendment and Restatement of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;2. the
Limited Partnership Agreement of JOSS Realty Holdings, LP, a Delaware limited partnership (the " <u>Operating Partnership</u> ");

&nbsp;&nbsp;&nbsp;&nbsp;3. a
Certificate of Representations (the " <u>Certificate of Representations</u> ") dated as of the date hereof, provided to us
by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;4. the
Registration Statement; and

&nbsp;&nbsp;&nbsp;&nbsp;5. such
other documents, records and instruments as we have deemed necessary in order to enable us to render the opinion referred to in this
letter.

In our examination of the foregoing documents, we have assumed, with your consent, that (i) all documents reviewed by us are original documents, or true and accurate copies of original documents and have not been subsequently amended, (ii) the signatures of each original document are genuine, (iii) all representations and statements set forth in such documents are true and correct, (iv) all obligations imposed by any such documents on the parties thereto have been or will be performed or satisfied in accordance with their terms, and (v) the Company and the Operating Partnership at all times have been and will continue to be organized and operated in accordance with the method of operation described in their organizational documents, the Registration Statement and the Certificate of Representations.

For purposes of rendering the opinions stated below, we have also assumed, with your consent, the accuracy of the representations contained in the Certificate of Representations provided to us by the Company, and that each representation contained in such Certificate of Representations that is qualified as to the best of the Company's knowledge or belief is accurate and complete without regard to such qualification as to the best of such entity's knowledge or belief. These representations generally relate to the organization and method of operation of the Company as a real estate investment trust (a "<u>REIT</u>") and the Operating Partnership as a partnership under the Internal Revenue Code of 1986, as amended (the "<u>Code</u>").

Based upon, subject to, and limited by the assumptions and qualifications set forth herein and in the Registration Statement, we are of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;1. Commencing
with its taxable year ending December 31, 2026, the Company has been organized and operated in conformity with the requirements for qualification
and taxation as a REIT under the Code, and its proposed method of operation as described in the Registration Statement and as set forth
in the Certificate of Representations will enable the Company to continue to meet the requirements for qualification and taxation as
a REIT under the Code.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
statements included under the caption "U.S. Federal Income Tax Considerations" in the Registration Statement, to the extent
they describe applicable U.S. federal income tax law, are correct in all material respects.

The opinions set forth in this letter are based on relevant provisions of the Code, Treasury Regulations promulgated thereunder, interpretations of the foregoing as expressed in court decisions, legislative history, and existing administrative rulings and practices of the Internal Revenue Service ("<u>IRS</u>") (including its practices and policies in issuing private letter rulings, which are not binding on the IRS except with respect to a taxpayer that receives such a ruling), all as of the date hereof. These provisions and interpretations are subject to change, which may or may not be retroactive in effect, and which may result in modifications of our opinions. Our opinions do not foreclose the possibility of a contrary determination by the IRS or a court of competent jurisdiction, or of a contrary determination by the IRS or the Treasury Department in regulations or rulings issued in the future. In this regard, an opinion of counsel with respect to an issue represents counsel's best professional judgment with respect to the outcome on the merits with respect to such issue, if such issue were to be litigated, but an opinion is not binding on the IRS or the courts and is not a guarantee that the IRS will not assert a contrary position with respect to such issue or that a court will not sustain such a position asserted by the IRS.

The opinions set forth above represent our conclusions based upon the documents, facts, representations and assumptions referred to above. Any material amendments to such documents, changes in any significant facts or inaccuracy of such representations or assumptions could affect the opinions referred to herein. Moreover, the Company's qualification as a REIT depends upon the ability of the Company to meet, for each taxable year, through actual annual operating results, requirements under the Code regarding gross income, assets, distributions and diversity of stock ownership. We have not undertaken, and will not undertake, to review the Company's compliance with these requirements on a continuing basis. Accordingly, no assurance can be given that the actual results of the Company's operations for any single taxable year have satisfied or will satisfy the tests necessary to qualify as a REIT under the Code. In addition, the opinion set forth above does not foreclose the possibility that the Company may have to pay a deficiency dividend, or an excise or penalty tax, which could be significant in amount, in order to maintain its REIT qualification. Although we have made such inquiries and performed such investigations as we have deemed necessary to fulfill our professional responsibilities as counsel, we have not undertaken an independent investigation of all of the facts referred to in this letter or the Certificate of Representations.

The opinions set forth in this letter are: (i) limited to those matters expressly covered and no opinion is expressed in respect of any other matter; (ii) as of the date hereof; and (iii) rendered by us at the request of the Company. We hereby consent to the filing of this opinion with the SEC as an exhibit to a Current Report on Form 8-K that shall be incorporated by reference into the Registration Statement and to the references therein to us. In giving such consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the SEC promulgated thereunder.

Very truly yours,

/s/ Clifford Chance US LLP

## Exhibit 10.3

**Exhibit 10.3**

[DATE], 2026

Dear Larry Botel:

On behalf of JOSS Realty REIT, Inc. (the "Company" or "JOSS"), I am pleased to extend an offer of employment for the position of Chief Executive Officer of JOSS reporting to the Board of Directors of JOSS on the terms herein (the "Letter"). You will be co-employed by JOSS and its professional employer organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Compensation</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **<u>Base Pay</u>.** In this regular full-time position, you will receive annual base pay in the amount of $175,000 USD ("Base Pay"). Your Base Pay will be payable pursuant to the Company's regular payroll policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **<u>Bonus</u>.** You will be eligible to receive an annual bonus equal to one hundred percent (100%) of your Base Pay ("Bonus") subject to the achievement of performance targets. The Bonus, to the extent earned, may be paid in cash, through the issuance of equity or equity-based compensation under the Equity Plan (as defined below), or a combination of both, as determined by the Board of Directors of JOSS (or subcommittee thereof) in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **<u>Equity Awards</u>.** You will be eligible for awards under the JOSS Realty REIT, Inc. 2026 Equity Incentive Plan (the "Equity Plan"), as determined by the Board of Directors of JOSS (or subcommittee thereof) in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Employee Benefits</u>.** The Company will provide you with the opportunity to participate in the standard benefits plans available to other similarly situated employees of the Company, subject to the terms, conditions, limitations and any eligibility requirements imposed by such plans, as such plans may be amended, modified or terminated by the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Severance</u>.** Upon your resignation for "Good Reason" or the termination of your employment by the Company other than for "Cause" (both as defined in the Equity Plan or in an award agreement issued to you thereunder), you shall be eligible to receive the Severance Amount (as defined below). The Severance Amount shall be paid in substantially equal installments over the twelve (12) month period immediately following your separation from service from the Company (including, its subsidiaries and affiliates) pursuant to the Company's regular payroll policy and subject to your execution and nonrevocation of a release of claims on the Company's standard form on or prior to the thirtieth (30<sup>th</sup>) calendar day following the date of your separation from service. The installment payments pursuant to this paragraph 3 (Severance) shall commence on the first payroll period following the effective date of such release of claims, and the initial installment shall include a lump-sum payment of all amounts accrued under this paragraph 3 (Severance) from the date of your separation from service through the date of such initial payment. The "Severance Amount" shall be equal to the sum of (i) your Base Pay and (ii) a bonus equal to one hundred percent (100%) of such Base Pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>No Conflicting Obligations</u>.** You understand and agree that by accepting this offer of employment, you represent to the Company that your performance will not breach any other agreement to which you are a party and that you have not, and will not during the term of your employment with the Company, enter into any agreement in conflict with any of the provisions of this Letter or the Company's policies. You agree that upon request by the Board, you will serve as an officer or director of the Company or any of its subsidiaries and affiliates without additional compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>General Obligations</u>.** As an employee, you will be required to adhere to the Company's policies and procedures, which are established from time to time, including, but not limited to, confidential information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>At-Will Employment</u>.** Employment with the Company is for no specific period of time. Your employment with the Company will be on an "at will" basis, meaning that either you or the Company may terminate your employment at any time, with or without advance notice, and for any reason or no particular reason or cause. This Letter will become effective immediately prior to the initial public offering of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Cooperation</u>.** You agree that upon termination of employment for any reason, you will reasonably cooperate in assuring an orderly transition of all matters being handled by you and will assist in any litigation proceedings if reasonably requested by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Withholdings</u>.** All forms of compensation paid to you as an employee of the Company may be reduced by all applicable taxes and withholdings. Section 15(u) (Section 409A of the Code) of the Equity Plan shall be incorporated by reference in its entirety in this Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Section 409A</u>.** The intent of the parties is that the payments and benefits under this Letter comply with or be exempt from Section 409A of the Internal Revenue Code of 1986 (the "Code") and the regulations and guidance promulgated thereunder (collectively, "Section 409A") and, accordingly, to the maximum extent permitted, this Letter will be interpreted to be in compliance therewith. You agree that you will be solely responsible and liable for the satisfaction of all taxes, interest and penalties that may be imposed on you or for your account in connection with any payment or benefit under this Letter (including any taxes, interest and penalties under Section 409A), and the Company will not have an obligation to indemnify or otherwise hold you (or any beneficiary successor or assign) harmless from any or all such taxes, interest or penalties.

Notwithstanding any other provision of this Letter, if any payment or benefit provided to you in connection with your termination of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and you are determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the date of your termination of employment or, if earlier, on your death (the "Specified Employee Payment Date"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to you in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Definitions</u>.** All references in this Letter to the "Company" or "JOSS" shall refer to JOSS Realty REIT, Inc. and/or any of its direct or indirect subsidiaries or affiliates, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Governing Law</u>.** This Letter shall be governed by the laws of the State of Maryland without regard to the conflict of laws.

[*Remainder of Page Intentionally Left Blank – Signature Page Follows*]

---

| | | |
|:---|:---|:---|
|  | Very truly yours, | Very truly yours, |
|  | JOSS Realty REIT, Inc. | JOSS Realty REIT, Inc. |
|  | /s/ | /s/ |
|  | By: | Larry McCulley |
|  | Title: | Chief Operating Officer |
| ACCEPTED AND AGREED: |  |  |
| Larry Botel |  |  |
| /s/ |  |  |
| Signature |  |  |
| Date: [DATE] |  |  |

---

*[Signature Page to Botel Offer Letter]*

## Exhibit 10.4

**Exhibit 10.4**

[DATE], 2026

Dear Larry McCulley:

On behalf of JOSS Realty REIT, Inc. (the "Company" or "JOSS"), I am pleased to extend an offer of employment for the position of Chief Operating Officer of JOSS reporting to the Chief Executive Officer of JOSS on the terms herein (the "Letter"). You will be co-employed by JOSS and its professional employer organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Compensation</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **<u>Base Pay</u>.** In this regular full-time position, you will receive annual base pay in the amount of $125,000 USD ("Base Pay"). Your Base Pay will be payable pursuant to the Company's regular payroll policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **<u>Bonus</u>.** You will be eligible to receive an annual bonus equal to one hundred percent (100%) of your Base Pay ("Bonus") subject to the achievement of performance targets. The Bonus, to the extent earned, may be paid in cash, through the issuance of equity or equity-based compensation under the Equity Plan (as defined below), or a combination of both, as determined by the Board of Directors of JOSS (or subcommittee thereof) in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **<u>Equity Awards</u>.** You will be eligible for awards under the JOSS Realty REIT, Inc. 2026 Equity Incentive Plan (the "Equity Plan"), as determined by the Board of Directors of JOSS (or subcommittee thereof) in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Employee Benefits</u>.** The Company will provide you with the opportunity to participate in the standard benefits plans available to other similarly situated employees of the Company subject to the terms, conditions, limitations and any eligibility requirements imposed by such plans, as such plans may be amended, modified or terminated by the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Severance</u>.** Upon your resignation for "Good Reason" or the termination of your employment by the Company other than for "Cause" (both as defined in the Equity Plan or in an award agreement issued to you thereunder), you shall be eligible to receive the Severance Amount (as defined below). The Severance Amount shall be paid in substantially equal installments over the twelve (12) month period immediately following your separation from service from the Company (including, its subsidiaries and affiliates) pursuant to the Company's regular payroll policy and subject to your execution and nonrevocation of a release of claims on the Company's standard form on or prior to the thirtieth (30<sup>th</sup>) calendar day following the date of your separation from service. The installment payments pursuant to this paragraph 3 (Severance) shall commence on the first payroll period following the effective date of such release of claims, and the initial installment shall include a lump-sum payment of all amounts accrued under this paragraph 3 (Severance) from the date of your separation from service through the date of such initial payment. The "Severance Amount" shall be equal to the sum of (i) your Base Pay and (ii) a bonus equal to one hundred percent (100%) of such Base Pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>No Conflicting Obligations</u>.** You understand and agree that by accepting this offer of employment, you represent to the Company that your performance will not breach any other agreement to which you are a party and that you have not, and will not during the term of your employment with the Company, enter into any agreement in conflict with any of the provisions of this Letter or the Company's policies. You agree that upon request by the Board, you will serve as an officer or director of the Company or any of its subsidiaries and affiliates without additional compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>General Obligations</u>.** As an employee, you will be required to adhere to the Company's policies and procedures, which are established from time to time, including, but not limited to, confidential information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>At-Will Employment</u>.** Employment with the Company is for no specific period of time. Your employment with the Company will be on an "at will" basis, meaning that either you or the Company may terminate your employment at any time, with or without advance notice, and for any reason or no particular reason or cause. This Letter will become effective immediately prior to the initial public offering of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Cooperation</u>.** You agree that upon termination of employment for any reason, you will reasonably cooperate in assuring an orderly transition of all matters being handled by you and will assist in any litigation proceedings if reasonably requested by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Withholdings</u>.** All forms of compensation paid to you as an employee of the Company may be reduced by all applicable taxes and withholdings. Section 15(u) (Section 409A of the Code) of the Equity Plan shall be incorporated by reference in its entirety in this Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Section 409A</u>.** The intent of the parties is that the payments and benefits under this Letter comply with or be exempt from Section 409A of the Internal Revenue Code of 1986 (the "Code") and the regulations and guidance promulgated thereunder (collectively, "Section 409A") and, accordingly, to the maximum extent permitted, this Letter will be interpreted to be in compliance therewith. You agree that you will be solely responsible and liable for the satisfaction of all taxes, interest and penalties that may be imposed on you or for your account in connection with any payment or benefit under this Letter (including any taxes, interest and penalties under Section 409A), and the Company will not have an obligation to indemnify or otherwise hold you (or any beneficiary successor or assign) harmless from any or all such taxes, interest or penalties.

Notwithstanding any other provision of this Letter, if any payment or benefit provided to you in connection with your termination of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and you are determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the date of your termination of employment or, if earlier, on your death (the "Specified Employee Payment Date"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to you in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Definitions</u>.** All references in this Letter to the "Company" or "JOSS" shall refer to JOSS Realty REIT, Inc. and/or any of its direct or indirect subsidiaries or affiliates, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Governing Law</u>.** This Letter shall be governed by the laws of the State of Maryland without regard to the conflict of laws.

[*Remainder of Page Intentionally Left Blank – Signature Page Follows*]

---

| | | |
|:---|:---|:---|
|  | Very truly yours, | Very truly yours, |
|  | JOSS Realty REIT, Inc. | JOSS Realty REIT, Inc. |
|  | /s/ | /s/ |
|  | By: | Larry Botel |
|  | Title: | Chief Executive Officer |
| ACCEPTED AND AGREED: |  |  |
| Larry McCulley |  |  |
| /s/ |  |  |
| Signature |  |  |
| Date: [DATE] |  |  |

---

*[Signature Page to McCulley Offer Letter]*

## Exhibit 10.5

**Exhibit 10.5**

**JOSS REALTY REIT, INC.**

**2026 EQUITY INCENTIVE PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Purpose**. The purpose of the JOSS Realty REIT, Inc. 2026 Equity Incentive Plan is to provide a means through which the Company and the other members of the Company Group may attract and retain key personnel and to provide a means whereby directors, officers, employees, consultants and advisors of the Company and the other members of the Company Group can acquire and maintain an equity interest in the Company, or be paid incentive compensation, including incentive compensation measured by reference to the value of Common Stock, thereby strengthening their commitment to the welfare of the Company Group and aligning their interests with those of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Definitions**. The following definitions shall be applicable throughout the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Absolute Share Limit**" has the meaning given to such term in Section 5(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Adjustment Event**" has the meaning given to such term in Section 13(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Affiliate** "
 means, as to any specified Person, (i) any Person directly or indirectly owning, controlling or holding, with power to vote,
 ten percent (10%) or more of the outstanding voting securities of such other Person, (ii) any Person, ten percent (10%) or
 more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with power to vote, by
 such other Person, (iii) any Person directly or indirectly controlling, controlled by or under common control with such other
 Person, (iv) any executive officer, director, trustee or general partner of such Person and (v) any legal entity for which
 such Person acts as an executive officer, director, trustee or general partner. An indirect relationship shall include circumstances
 in which a Person's spouse, children, parents, siblings or mother, father, sister- or brother-in-law is or has been associated
 with a Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Award** "
 means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation Right, Restricted
 Stock, Restricted Stock Unit, OP Unit, LTIP Unit, Other Equity-Based Award and Cash-Based Incentive Award granted under the
 Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Award Agreement**" means the document or documents by which each Award (other than a Cash-Based Incentive Award) is evidenced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Board** "
 means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Cash-Based Incentive Award**" means an Award denominated in cash that is granted under Section 12 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Cause** "
 means, as to any Participant, unless the applicable Award Agreement states otherwise, (i) "Cause," as defined in any
 employment or consulting agreement between the Participant and the Service Recipient in effect at the time of the Participant's
 Termination; or (ii) in the absence of any such employment or consulting agreement (or the absence of any definition
 of "Cause" contained therein), the Participant's (A) willful neglect in the performance of the Participant's duties
 for the Service Recipient or willful or repeated failure or refusal to perform such duties; (B) engagement in conduct
 in connection with the Participant's employment or service with the Service Recipient, which results in, or could reasonably
 be expected to result in, material harm to the business or reputation of the Company or any other member of the Company Group;
 (C) conviction of, or plea of guilty or no contest to, (I) any felony; or (II) any other crime that results
 in, or could reasonably be expected to result in, material harm to the business or reputation of the Company or any other
 member of the Company Group; (D) material violation of the written policies of the Service Recipient, including, but
 not limited to, those relating to sexual harassment or the disclosure or misuse of confidential information, or those set
 forth in the manuals or statements of policy of the Service Recipient; (E) fraud or misappropriation, embezzlement or
 misuse of funds or property belonging to the Company or any other member of the Company Group; or (F) act of personal
 dishonesty that involves personal profit in connection with the Participant's employment or service to the Service Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Change in Control**" means a change in control of the Company as defined in in an applicable Award Agreement, if so defined, and
 otherwise means a change in control of the Company occurring after the Effective Date of a nature that would be required
 to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any
 similar schedule or form) promulgated under the Exchange Act, whether or not the Company is then subject to such reporting
 requirement; **provided**, **however**, **that**, without limitation, such a Change in Control shall be deemed to
 have occurred if, after the Effective Date, any of the following occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 Person, other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation
 owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership
 of stock of the Company, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
 or indirectly, of securities of the Company representing thirty-five percent (35%) or more of the total voting power represented
 by the Company's then outstanding voting securities, disregarding any securities held by the Person at the time of the Initial
 Public Offering, without the prior approval of at least two-thirds (2/3) of the members of the Board in office immediately
 prior to such Person's attaining such percentage interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during
 any period of two consecutive years, individuals who at the beginning of the two year period constitute the Board and any
 new director whose election by the Board or nomination for election by the Company's stockholders was approved by a
 vote of more than fifty percent (50%) of the directors then still in office who either were directors at the beginning of
 the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a
 majority of the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there
 occurs a proxy contest, or the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other
 reorganization not approved by at least two-thirds (2/3) of the members of the Board then in office, as a consequence of
 which members of the Board in office immediately prior to such transaction or event constitute less than a majority of the
 Board thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding
 the foregoing, a "Change in Control" shall not be deemed to have occurred if immediately after the occurrence
 of any of the events described in clauses (i) – (iii) above, a Designated Holder is the Beneficial Owner, directly or
 indirectly, of fifty percent (50%) or more of the combined voting power of the Company or any successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Code** "
 means the Internal Revenue Code of 1986, as amended, and any successor thereto. Reference in the Plan to any section of the
 Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or
 successor provisions to such section, regulations or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Committee** "
 means the Compensation Committee of the Board or any properly delegated subcommittee thereof or, if no such Compensation
 Committee or subcommittee thereof exists, the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Common Stock**" means the common stock of the Company, par value $0.01 per share (and any stock or other securities into which
 such Common Stock may be converted or into which it may be exchanged).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Company** "
 means JOSS Realty REIT, Inc., a Maryland corporation, and any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Company Group**" means, collectively, the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Date of Grant**" means the date on which the granting of an Award is authorized, or such other date as may be specified in such
 authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Designated Foreign Subsidiaries**" means all members of the Company Group that are organized under the laws of any jurisdiction or
 country other than the United States of America that may be designated by the Board or the Committee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Designated Holder**" means Larry Botel and any of his Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Disability** "
 means, as to any Participant, unless the applicable Award Agreement states otherwise, (i) "Disability," as defined in
 any employment or consulting agreement between the Participant and the Service Recipient in effect at the time of the Participant's
 Termination; or (ii) in the absence of any such employment or consulting agreement (or the absence of any definition
 of "Disability" contained therein), a condition entitling the Participant to receive benefits under a long-term disability
 plan of the Service Recipient or other member of the Company Group in which such Participant is eligible to participate,
 or, (iii) in the absence of such a plan, the Participant's becoming disabled within the meaning of Section 22(e)(3)
 of the Code. Any determination of whether Disability exists in the absence of a long-term disability plan shall be made by
 the Company (or its designee) in its sole and absolute discretion.

(s) "**Effective Date**" means [●], 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Eligible Person**" means any (i) individual employed by any member of the Company Group; **provided**, **that** no such
 employee covered by a collective bargaining agreement shall be an Eligible Person unless and to the extent that such eligibility
 is set forth in such collective bargaining agreement or in an agreement or instrument relating thereto; (ii) director
 or officer of any member of the Company Group; or (iii) consultant or advisor to any member of the Company Group who
 may be offered securities registrable pursuant to a registration statement on Form S-8 under the Securities Act, who, in
 the case of each of clauses (i) through (iii) above has entered into an Award Agreement or who has received written
 notification from the Committee or its designee that they have been selected to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and any successor thereto. Reference in the Plan to any section
 of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative
 guidance under such section or rule, and any amendments or successor provisions to such section, rules, regulations or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Exercise Price**" has the meaning given to such term in Section 7(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Fair Market Value**" means, on a given date, (i) if the Common Stock is listed on a national securities exchange, the closing
 sales price of the Common Stock reported on the primary exchange on which the Common Stock is listed and traded on such date,
 or, if there are no such sales on that date, then on the last preceding date on which such sales were reported; (ii) if
 the Common Stock is not listed on any national securities exchange but is quoted in an inter-dealer quotation system on a
 last sale basis, the average between the closing bid price and ask price reported on such date, or, if there is no such sale
 on that date, then on the last preceding date on which a sale was reported; or (iii) if the Common Stock is not listed
 on a national securities exchange or quoted in an inter-dealer quotation system on a last sale basis, the amount determined
 by the Committee in good faith to be the fair market value of the Common Stock; **provided**, **that**, as to any Awards
 granted on or with a Date of Grant of the date of the pricing an initial public offering of the Company's Common Stock, "Fair
 Market Value" shall be equal to the per share price at which the Common Stock is offered to the public in connection with
 such initial public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**GAAP** "
 has the meaning given to such term in Section 7(d) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **"Good Reason"** has the meaning assigned to such term in any written employment, severance or similar agreement or Award Agreement
 between a Participant and the Company or an Affiliate, solely if and to the extent that such term is defined in such an agreement.
 If a Participant does not have such an agreement with the Company or an Affiliate, or if such agreement does not define "Good
 Reason" (or a term of similar import) this term shall not apply to such Participant for purposes of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Immediate Family Members**" has the meaning given to such term in Section 15(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Incentive Stock Option**" means an Option which is designated by the Committee as an incentive stock option as described in Section 422
 of the Code and otherwise meets the requirements set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Indemnifiable Person**" has the meaning given to such term in Section 4(e) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Initial Public Offering**" means the initial declaration of effectiveness by the Securities and Exchange Commission of a registration
 statement relating to the Company's Common Stock and the Common Stock being listed for trading on a National Securities Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**LTIP Unit**" means a restricted limited partner profits interest in a partnership or an entity taxed as a partnership, including
 without limitation the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**National Securities Exchange**" means the New York Stock Exchange, the NYSE American, the Nasdaq Stock Market or any similar national
 securities exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**Nonqualified Stock Option**" means an Option which is not designated by the Committee as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Non-Employee Director**" means a member of the Board who is not an employee of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**OP Unit**" means a unit representing a limited partnership interest in a partnership or an entity taxed as a partnership,
 including without limitation the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Option** "
 means an Award granted under Section 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**Option Period**" has the meaning given to such term in Section 7(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**Other Equity-Based Award**" means an Award that is not an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
 Unit, LTIP Unit or OP Unit that is granted under Section 10 of the Plan and is (i) payable by delivery of Common
 Stock, (ii) measured by reference to the value of Common Stock or (iii) is payable as dividends on Common Stock or is
 paid as dividend equivalents in respect of dividends paid on Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**Participant** "
 means an Eligible Person who has been selected by the Committee to participate in the Plan and to receive an Award pursuant
 to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**Partnership** "
 means JOSS REIT Holdings, L.P., a Delaware limited partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**Performance Criteria**" means specific levels of performance of the Company (and/or one or more of the Company's Affiliates, divisions
 or operational and/or business units, business segments, administrative departments, or any combination of the foregoing)
 or any Participant, which may be determined in accordance with GAAP or on a non-GAAP basis including, but not limited to,
 one or more of the following measures: (i) terms relative to a peer group or index; (ii) basic, diluted, or adjusted
 earnings per share; (iii) sales or revenue; (iv) earnings before interest, taxes, and other adjustments (in total
 or on a per share basis); (v) cash available for distribution; (vi) basic or adjusted net income; (vii) returns
 on equity, assets, capital, revenue or similar measure; (viii) level and growth of dividends; (ix) the price or
 increase in price of Common Stock; (x) total shareholder return; (xi) total assets; (xii) growth in assets, new
 originations of assets, or financing of assets; (xiii) equity market capitalization; (xiv) reduction or other quantifiable
 goal with respect to general and/or specific expenses; (xv) equity capital raised; (xvi) mergers, acquisitions,
 increase in enterprise value of Affiliates, Subsidiaries, divisions or business units or sales of assets of Affiliates, Subsidiaries,
 divisions or business units or sales of assets; and (xvii) any combination of the foregoing. Any one or more of the
 Performance Criteria may be stated as a percentage of another Performance Criteria, or used on an absolute or relative basis
 to measure the performance of the Company and/or one or more Affiliates as a whole or any divisions or operational and/or
 business units, business segments, administrative departments of the Company and/or one or more Affiliates or any combination
 thereof, as the Committee may deem appropriate, or any of the above Performance Criteria may be compared to the performance
 of a selected group of comparison companies, or a published or special index that the Committee, in its sole discretion,
 deems appropriate, or as compared to various stock market indices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**Permitted Transferee**" has the meaning given to such term in Section 15(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "**Person** "
 means any individual, partnership, corporation, limited liability company, trust, unincorporated organization, government
 or agency or political subdivision thereof, or any other legal entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "**Plan** "
 means this JOSS Realty REIT, Inc. 2026 Equity Incentive Plan, as it may be amended and/or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "**Qualifying Director**" means a person who is, with respect to actions intended to obtain an exemption from Section 16(b) of the
 Exchange Act pursuant to Rule 16b-3 under the Exchange Act, a "non-employee director" within the meaning of Rule 16b-3
 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "**Restricted Period**" means the period of time determined by the Committee during which an Award is subject to restrictions, including
 vesting conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "**Restricted Stock**" means Common Stock, subject to certain specified restrictions (which may include, without limitation, a requirement
 that the Participant remain continuously employed or provide continuous services for a specified period of time), granted
 under Section 9 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "**Restricted Stock Unit**" means an unfunded and unsecured promise to deliver shares of Common Stock, cash, other securities or other
 property, subject to certain restrictions (which may include, without limitation, a requirement that the Participant remain
 continuously employed or provide continuous services for a specified period of time), granted under Section 9 of the
 Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "**SAR Period**" has the meaning given to such term in Section 8(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "**Securities Act**" means the Securities Act of 1933, as amended, and any successor thereto. Reference in the Plan to any section of
 (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations or other interpretative
 guidance under such section or rule, and any amendments or successor provisions to such section, rules, regulations or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "**Service Recipient**" means, with respect to a Participant holding a given Award, the member of the Company Group by which the original
 recipient of such Award is, or following a Termination was most recently, principally employed or to which such original
 recipient provides, or following a Termination was most recently providing, services, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) "**Stock Appreciation Right**" or "**SAR**" means an Award granted under Section 8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) "**Strike Price**" has the meaning given to such term in Section 8(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) "**Subsidiary** "
 means, with respect to any specified Person, and unless otherwise set forth in an Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 corporation, association or other business entity of which more than fifty percent (50%) of the total voting power of shares
 of such entity's voting securities (without regard to the occurrence of any contingency and after giving effect to any voting
 agreement or stockholders' agreement that effectively transfers voting power) is at the time owned or controlled, directly
 or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 partnership (or any comparable foreign entity) (A) the sole general partner (or functional equivalent thereof) or the
 managing general partner of which is such Person or Subsidiary of such Person or (B) the only general partners (or functional
 equivalents thereof) of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) "**Substitute Awards**" has the meaning given to such term in Section 5(e) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) "**Sub-Plans** "
 means any sub-plan to the Plan that has been adopted by the Board or the Committee for the purpose of permitting the offering
 of Awards to employees of certain Designated Foreign Subsidiaries or otherwise outside the United States of America, with
 each such sub-plan designed to comply with local laws applicable to offerings in such foreign jurisdictions. Although any
 Sub-Plan may be designated a separate and independent plan from the Plan in order to comply with applicable local laws, the
 Absolute Share Limit and the other limits specified in Section 5(b) shall apply in the aggregate to the Plan and any
 Sub-Plan adopted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) "**Termination** "
 means the termination of a Participant's employment or service, as applicable, with the Service Recipient for any reason
 (including death).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Effective Date; Duration**. The Plan shall be effective as of the Effective Date. The expiration date of the Plan, on and after which date no Awards may be granted hereunder, shall be the tenth (10th) anniversary of the Effective Date; **provided**, **that** such expiration shall not affect Awards then outstanding, and the terms and conditions of the Plan shall continue to apply to such Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Administration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. The Committee shall administer the Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated under the Exchange Act (if the Board is not acting as the Committee under the Plan), it is intended that each member of the Committee shall, at the time such member takes any action with respect to an Award under the Plan that is intended to qualify for the exemptions provided by Rule 16b-3 promulgated under the Exchange Act, be a Qualifying Director. However, the fact that a Committee member shall fail to qualify as a Qualifying Director shall not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Committee Authority**. Subject to the provisions of the Plan and applicable law, the Committee shall have the sole and plenary authority, in addition to other express powers and authorizations conferred on the Committee by the Plan, to (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of shares of Common Stock to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled in, or exercised for, cash, shares of Common Stock, LTIP Units or OP Units, other securities, other Awards or other property, or cancelled, forfeited, suspended or accelerated and the method or

methods by which Awards may be settled, exercised, cancelled, forfeited, suspended or accelerated; (vi) determine whether, to what extent, and under what circumstances the delivery of cash, shares of Common Stock, other securities, other Awards or other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the Participant or of the Committee; (vii) interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Committee shall deem appropriate for the proper administration of the Plan; (ix) adopt Sub-Plans; and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Delegation**. Except to the extent prohibited by applicable law or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any Person or Persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time. Without limiting the generality of the foregoing, the Committee may delegate to one or more officers of any member of the Company Group, the authority to act on behalf of the Committee with respect to any matter, right, obligation, or election which is the responsibility of, or which is allocated to, the Committee herein, and which may be so delegated as a matter of law, except with respect to grants of Awards to persons (i) who are Non-Employee Directors, or (ii) who are subject to Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Finality of Decisions**. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan, any Award or any Award Agreement shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all Persons, including, without limitation, any member of the Company Group, any Participant, any holder or beneficiary of any Award, and any stockholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Indemnification**. No member of the Board, the Committee or any employee or agent of any member of the Company Group (each such Person, an "**Indemnifiable Person**") shall be liable for any action taken or omitted to be taken or any determination made with respect to the Plan or any Award hereunder (unless constituting fraud or a willful criminal act or omission). Each Indemnifiable Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including attorneys' fees) that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person may be a party or in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken or determination made with respect to the Plan or any Award hereunder and against and from any and all amounts paid by such Indemnifiable Person with the Company's approval, in settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit or proceeding against such Indemnifiable Person, and the Company shall advance to such Indemnifiable Person any such expenses promptly upon written request (which request shall include an undertaking by the Indemnifiable Person to repay the amount of such advance if it shall ultimately be determined, as provided below, that the Indemnifiable Person is not entitled to be indemnified); **provided**, **that** the Company shall have the right, at its own expense, to assume and defend any such action, suit

or proceeding and once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable Person determines that the acts, omissions or determinations of such Indemnifiable Person giving rise to the indemnification claim resulted from such Indemnifiable Person's fraud or willful criminal act or omission or that such right of indemnification is otherwise prohibited by law or by the organizational documents of any member of the Company Group. The foregoing right of indemnification shall not be exclusive of or otherwise supersede any other rights of indemnification to which such Indemnifiable Persons may be entitled under the organizational documents of any member of the Company Group, as a matter of law, under an individual indemnification agreement or contract or otherwise, or any other power that the Company may have to indemnify such Indemnifiable Persons or hold such Indemnifiable Persons harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Board Authority**. Notwithstanding anything to the contrary contained in the Plan, the Board may, in its sole discretion, at any time and from time to time, grant Awards and administer the Plan with respect to any Awards. Any such actions by the Board shall be subject to the applicable rules of the securities exchange or inter-dealer quotation system on which the Common Stock is listed or quoted. In any such case, the Board shall have all the authority granted to the Committee under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Grant of Awards; Shares Subject to the Plan; Limitations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Grants**. The Committee may, from time to time, grant Awards to one or more Eligible Persons. All Awards granted under the Plan shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, attainment of Performance Criteria. Awards may be granted in respect of shares of Common Stock, as well as shares, OP Units and/or LTIP Units issued by any of the Company, its Subsidiaries and its Affiliates, including the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Share Reserve and Limits**. Awards granted under the Plan shall be subject to the following limitations: (i) subject to Section 13 of the Plan, no Award may, at the time of its grant, cause the total number of shares of Common Stock subject to all outstanding Awards to exceed seven percent (7%) of the issued and outstanding shares of Common Stock on a fully diluted basis (assuming, if applicable, the exercise of all outstanding Options and the conversion of all warrants and convertible securities into shares of Common Stock, including, for the avoidance of doubt, the conversion of all OP Units and LTIP Units granted hereunder into shares of Common Stock) (the "**Absolute Share Limit**"); (ii) subject to Section 13 of the Plan, no more than 325,500 shares of Common Stock may be issued in the aggregate pursuant to the exercise of Incentive Stock Options granted under the Plan; and (iii) the maximum number of shares of Common Stock subject to Awards granted during a single fiscal year to any Non-Employee Director, for services rendered as a Non-Employee Director, taken together with any cash fees paid to such Non-Employee Director during the fiscal year, shall not exceed $750,000 in total value in respect of any fiscal year occurring after the first year of the Non-Employee Director's service on the Board and $1,500,000 in respect of the first fiscal year of the Non-Employee Director's service on the Board (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes). For purposes of the preceding sentence, any Awards granted to and any cash fees paid to a Non-Employee Director shall be taken into account in the fiscal year in which such Awards and/or fees are granted and/or are earned, rather than settled or paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Share Counting**. If any shares of Common Stock subject to an Award are forfeited, an Award expires or otherwise terminates without issuance of shares of Common Stock, or an Award is settled for cash (in whole or in part) or otherwise does not result in the issuance of all or a portion of the shares of Common Stock subject to such Award (including on payment in shares of Common Stock on exercise of a Stock Appreciation Right), such shares of Common Stock shall, to the extent of such forfeiture, expiration, termination, cash settlement or non-issuance, be added to the shares of Common Stock available for grant under the Plan on a one-for-one basis. In the event that (i) any Option or other Award granted hereunder is exercised through the tendering of shares of Common Stock (either actually or by attestation) or by the withholding of shares of Common Stock by the Company, or (ii) withholding tax liabilities arising from such Option or other Award are satisfied by the tendering of shares of Common Stock (either actually or by attestation) or by the withholding of Shares by the Company, then in each such case the shares of Common Stock so tendered or withheld shall be added to the shares of Common Stock available for grant under the Plan on a one-for-one basis. No shares shall be deemed to have been issued in settlement of a SAR or Restricted Stock Unit that provides for settlement only in cash and settles only in cash or in respect of any Cash-Based Incentive Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Source of Shares**. Shares of Common Stock issued by the Company in settlement of Awards may be authorized and unissued shares, shares held in the treasury of the Company, shares purchased on the open market or by private purchase or a combination of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Substitute Awards**. Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity directly or indirectly acquired by the Company or with which the Company combines ("**Substitute Awards**"). Substitute Awards shall not be counted against the Absolute Share Limit; **provided**, **that** Substitute Awards issued in connection with the assumption of, or in substitution for, outstanding options intended to qualify as "incentive stock options" within the meaning of Section 422 of the Code shall be counted against the aggregate number of shares of Common Stock available for Awards of Incentive Stock Options under the Plan. Subject to applicable stock exchange requirements, available shares under a stockholder-approved plan of an entity directly or indirectly acquired by the Company or with which the Company combines (as appropriately adjusted to reflect the acquisition or combination transaction) may be used for Awards under the Plan and shall not reduce the number of shares of Common Stock available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Eligibility**. Participation in the Plan shall be limited to Eligible Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Options**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. Each Option granted under the Plan shall be evidenced by an Award Agreement, which agreement need not be the same for each Participant. Each Option so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options granted under the Plan shall be Nonqualified Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option. Incentive Stock Options shall be granted only to Eligible Persons who are employees of a member of the Company Group, and no Incentive Stock Option shall be granted to any Eligible Person who is ineligible to receive an Incentive Stock Option under the Code. No Option shall be treated as an Incentive Stock Option unless the Plan has been approved by the stockholders of the Company in a manner intended to comply with the stockholder approval requirements of Section 422(b)(1) of the Code; **provided**, **that** any Option intended to be an Incentive Stock Option shall not fail to be effective solely on account of a failure to obtain such approval, but rather such Option shall be treated as a Nonqualified Stock Option unless and until such approval is obtained. In the case of an Incentive Stock Option, the terms and conditions of such grant shall be subject to, and comply with, such rules as may be prescribed by Section 422 of the Code. If for any reason an Option intended to be an Incentive Stock Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Option or portion thereof shall be regarded as a Nonqualified Stock Option appropriately granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Exercise Price**. Except as otherwise provided by the Committee in the case of Substitute Awards, the exercise price ("**Exercise Price**") per share of Common Stock for each Option shall not be less than one hundred percent (100%) of the Fair Market Value of such share (determined as of the Date of Grant); **provided**, **that**, in the case of an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of any member of the Company Group, the Exercise Price per share shall be no less than one hundred ten percent (110%) of the Fair Market Value per share on the Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Vesting and Expiration**.

&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) Options shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee.

&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) Options shall expire upon a date determined by the Committee, not to exceed ten (10) years from the Date of Grant (the "**Option Period**"); **provided**, **that**, if the Option Period (other than in the case of an Incentive Stock Option) would expire at a time when trading in the shares of Common Stock is prohibited by the Company's insider trading policy (or Company-imposed "blackout period"), then the Option Period shall be automatically extended until the thirtieth (30th) day following the expiration of such prohibition. Notwithstanding the foregoing, in no event shall the Option Period exceed five (5) years from the Date of Grant in the case of an Incentive Stock Option granted to a Participant who on the Date of Grant owns stock representing more than ten percent (10%) of the voting power of all classes of stock of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Method of Exercise and Form of Payment**. No shares of Common Stock shall be issued pursuant to any exercise of an Option until payment in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company an amount equal to any Federal, state, local and non-U.S. income, employment and any other applicable taxes required to be withheld. Options which have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company (or telephonic instructions to the extent provided by the Committee) in accordance with the terms of the Option accompanied by payment of the Exercise Price. The Exercise Price shall be payable: (i) in cash, check, cash equivalent and/or shares of Common Stock valued at the Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares of Common Stock in lieu of actual issuance of such shares to the Company); **provided**, **that** such shares of Common Stock are not subject to any pledge or other security interest and have been held by the Participant for at least six (6) months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment applying generally accepted accounting principles ("**GAAP**")); or (ii) by such other method as the Committee may permit, in its sole discretion, including, without limitation (A) in other property having a fair market value on the date of exercise equal to the Exercise Price; (B) if there is a public market for the shares of Common Stock at such time, by means of a broker-assisted "cashless exercise" pursuant to which the Company is delivered (including telephonically to the extent permitted by the Committee) a copy of irrevocable instructions to a stockbroker to sell the shares of Common Stock otherwise issuable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price; or (C) a "net exercise" procedure effected by withholding the minimum number of shares of Common Stock otherwise issuable in respect of an Option that are needed to pay the Exercise Price. Any fractional shares of Common Stock shall be settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Notification upon Disqualifying Disposition of an Incentive Stock Option**. Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company in writing immediately after the date the Participant makes a disqualifying disposition of any Common Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including, without limitation, any sale) of such Common Stock before the later of (i) the date that is two (2) years after the Date of Grant of the Incentive Stock Option, or (ii) the date that is one (1) year after the date of exercise of the Incentive Stock Option. The Company may, if determined by the Committee and in accordance with procedures established by the Committee, retain possession, as agent for the applicable Participant, of any Common Stock acquired pursuant to the exercise of an Incentive Stock Option until the end of the period described in the preceding sentence, subject to complying with any instructions from such Participant as to the sale of such Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Compliance With Laws, etc**. Notwithstanding the foregoing, in no event shall a Participant be permitted to exercise an Option in a manner which the Committee determines would violate the Sarbanes-Oxley Act of 2002, as it may be amended from time to time, or any other applicable law or the applicable rules and regulations of the Securities and Exchange Commission or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Stock Appreciation Rights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. Each SAR granted under the Plan shall be evidenced by an Award Agreement. Each SAR so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. Any Option granted under the Plan may include tandem SARs. The Committee also may award SARs to Eligible Persons independent of any Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Strike Price**. Except as otherwise provided by the Committee in the case of Substitute Awards, the strike price ("**Strike Price**") per share of Common Stock for each SAR shall not be less than one hundred percent (100%) of the Fair Market Value of such share (determined as of the Date of Grant). Notwithstanding the foregoing, a SAR granted in tandem with (or in substitution for) an Option previously granted shall have a Strike Price equal to the Exercise Price of the corresponding Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Vesting and Expiration**.

&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 SAR granted in connection with an Option shall become exercisable and shall expire according to the same vesting schedule and expiration provisions as the corresponding Option. A SAR granted independent of an Option shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee.

&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) SARs shall expire upon a date determined by the Committee, not to exceed ten (10) years from the Date of Grant (the "**SAR Period**"); **provided**, **that**, if the SAR Period would expire at a time when trading in the shares of Common Stock is prohibited by the Company's insider trading policy (or a Company-imposed "blackout period"), then the SAR Period shall be automatically extended until the thirtieth (30th) day following the expiration of such prohibition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Method of Exercise**. SARs which have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with the terms of the Award, specifying the number of SARs to be exercised and the date on which such SARs were awarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Payment**. Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number of shares subject to the SAR that is being exercised multiplied by the excess of the Fair Market Value of one (1) share of Common Stock on the exercise date over the Strike Price, less an amount equal to any Federal, state, local and non-U.S. income, employment and any other applicable taxes required to be withheld. The Company shall pay such amount in cash, in shares of Common Stock valued at Fair Market Value, or any combination thereof, as determined by the Committee. Any fractional shares of Common Stock shall be settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Restricted Stock and Restricted Stock Units**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement. Each Restricted Stock and Restricted Stock Unit so granted shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Stock Certificates and Book-Entry; Escrow or Similar Arrangement**. Upon the grant of Restricted Stock, the Committee shall cause a stock certificate registered in the name of the Participant to be issued or shall cause share(s) of Common Stock to be registered in the name of the Participant and held in book-entry form subject to the Company's directions and, if the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than issued to the Participant pending the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (i) an escrow agreement satisfactory to the Committee, if applicable; and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock covered by such agreement. If a Participant shall fail to execute and deliver (in a manner permitted under Section 15(a) of the Plan or as otherwise determined by the Committee) an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and blank stock power within the amount of time specified by the Committee, the Award shall be null and void. Subject to the restrictions set forth in this Section 9, Section 15(c) of the Plan and the applicable Award Agreement, a Participant generally shall have the rights and privileges of a stockholder as to shares of Restricted Stock, including, without limitation, the right to vote such Restricted Stock. To the extent shares of Restricted Stock are forfeited, any stock certificates issued to the Participant evidencing such shares shall be returned to the Company, and all rights of the Participant to such shares and as a stockholder with respect thereto shall terminate without further obligation on the part of the Company. A Participant shall have no rights or privileges as a stockholder as to Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Vesting**. Restricted Stock and Restricted Stock Units shall vest, and any applicable Restricted Period shall lapse, in such manner and on such date or dates or upon such event or events as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Issuance of Restricted Stock and Settlement of Restricted Stock Units**.

&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) Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall issue to the Participant, or the Participant's beneficiary, without charge, the stock certificate (or, if applicable, a notice evidencing a book-entry notation) evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted Period has expired (rounded down to the nearest full share). Except as otherwise provided in an Award Agreement, dividends, if any, that may have been withheld by the Committee and attributable to any particular share of Restricted Stock shall be distributed to the Participant in cash or, in the sole discretion of the Committee, in shares of Common Stock having a Fair Market Value (on the date of distribution) equal to the amount of such dividends, upon the release of restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends.

&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) Unless otherwise provided by the Committee in an Award Agreement or otherwise, upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, the Company shall issue to the Participant or the Participant's beneficiary, without charge, one (1) share of Common Stock (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit; **provided***,* **that** the Committee may, in its sole discretion, elect to (A) pay cash or part cash and part shares of Common Stock in lieu of issuing only shares of Common Stock in respect of such Restricted Stock Units; or (B) defer the issuance of shares of Common Stock (or cash or part cash and part shares of Common Stock, as the case may be) beyond the expiration of the Restricted Period if such extension would not cause adverse tax consequences under Section 409A of the Code. If a cash payment is made in lieu of issuing shares of Common Stock in respect of such Restricted Stock Units, the amount of such payment shall be equal to the Fair Market Value per share of the Common Stock as of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Legends on Restricted Stock**. Each certificate, if any, or book entry representing Restricted Stock awarded under the Plan, if any, shall bear a legend or book entry notation substantially in the form of the following, in addition to any other information the Company deems appropriate, until the lapse of all restrictions with respect to such shares of Common Stock:

TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE JOSS Realty REIT, Inc. 2026 Equity Incentive Plan AND A RESTRICTED STOCK AWARD AGREEMENT BETWEEN JOSS Realty REIT, Inc. AND PARTICIPANT. A COPY OF SUCH PLAN AND AWARD AGREEMENT IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF JOSS Realty REIT, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Other Equity-Based Awards**. The Committee may grant Other Equity-Based Awards under the Plan to Eligible Persons, alone or in tandem with other Awards, in such amounts and dependent on such conditions as the Committee shall from time to time in its sole discretion determine. Each Other Equity-Based Award granted under the Plan shall be evidenced by an Award Agreement and shall be subject to such conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **OP Unit Awards and LTIP Unit Awards**. The Committee may grant OP Unit Awards and LTIP Unit Awards. Any OP Units or LTIP Units granted hereunder shall be fully subject to the terms of any applicable partnership or limited liability company agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Cash-Based Incentive Awards**. The Committee may grant Cash-Based Incentive Awards under the Plan to any Eligible Person. Each Cash-Based Incentive Award granted under the Plan shall be evidenced in such form as the Committee may determine from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Changes in Capital Structure and Similar Events**. Notwithstanding any other provision in the Plan to the contrary, the following provisions shall apply to all Awards granted hereunder (other than Cash-Based Incentive Awards):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. In the event of (i) any dividend (other than regular cash dividends) or other distribution (whether in the form of cash, shares of Common Stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of Common Stock or other securities of the Company, issuance of warrants or other rights to acquire shares of Common Stock or other securities of the Company, or other similar corporate transaction or event that affects the shares of Common Stock (including a Change in Control); or (ii) unusual or nonrecurring events affecting the Company, including changes in applicable rules, rulings, regulations or other requirements, that the Committee determines, in its sole discretion, could result in substantial dilution or enlargement of the rights intended to be granted to, or available for, Participants (any event in (i) or (ii), an "**Adjustment Event**"), the Committee shall, in respect of any such Adjustment Event, make such proportionate substitution or adjustment, if any, as it deems equitable, to any or all of (A) the Absolute Share Limit, or any other limit applicable under the Plan with respect to the number of Awards which may be granted hereunder; (B) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) which may be issued in respect of Awards or with respect to which Awards may be granted under the Plan or any Sub-Plan; and (C) the terms of any outstanding Award, including, without limitation, (I) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) subject to outstanding Awards or to which outstanding Awards relate; (II) the Exercise Price or Strike Price with respect to any Award; or (III) any applicable performance measures (including, without limitation, Performance Criteria); **provided**, **that**, in the case of any "equity restructuring" (within the meaning of the Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor pronouncement thereto)), the Committee shall make an equitable or proportionate adjustment to outstanding Awards to reflect such equity restructuring.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Change in Control**. Without limiting the foregoing, and unless provided otherwise in an Award Agreement, in connection with any Change in Control, the Committee may, in its sole discretion, provide for any one or more of the following:

&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) substitution or assumption of Awards, or to the extent that the surviving entity (or Affiliate thereof) of such Change in Control does not substitute or assume the Awards, full acceleration of vesting of, exercisability of, or lapse of restrictions on, as applicable, any Awards; **provided**, **that**, with respect to any performance-vested Awards, any such acceleration of vesting, exercisability, or lapse of restrictions may be based on actual performance through the date of such Change in Control; 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;(ii) cancellation of any one or more outstanding Awards and payment to the holders of such Awards that are vested as of such cancellation (including, without limitation, any Awards that would vest as a result of the occurrence of such event but for such cancellation or for which vesting is accelerated by the Committee in connection with such event pursuant to clause (i) above), the value of such Awards, if any, as determined by the Committee (which value, if applicable, may be based upon the price per share of Common Stock received or to be received by other stockholders of the Company in such event), including, without limitation, in the case of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the shares of Common Stock subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR (it being understood that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in excess of, the Fair Market Value of a share of Common Stock subject thereto may be cancelled and terminated without any payment or consideration therefor).

For purposes of clause (i) above, an award will be considered granted in substitution of an Award if it has an equivalent value (as determined consistent with clause (ii) above) with the original Award, whether designated in securities of the acquiror in such Change in Control transaction (or an Affiliate thereof), or in cash or other property (including in the same consideration that other stockholders of the Company receive in connection with such Change in Control transaction), and retains the vesting schedule applicable to the original Award.

Payments to holders pursuant to clause (ii) above shall be made in cash or, in the sole discretion of the Committee, in the form of such other consideration necessary for a Participant to receive property, cash, or securities (or combination thereof) as such Participant would have been entitled to receive upon the occurrence of the transaction if the Participant had been, immediately prior to such transaction, the holder of the number of shares of Common Stock covered by the Award at such time (less any applicable Exercise Price or Strike Price).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Other Requirements**. Prior to any payment or adjustment contemplated under this Section 13, the Committee may require a Participant to (i) represent and warrant as to the unencumbered title to the Participant's Awards; (ii) bear such Participant's pro rata share of any post-closing indemnity obligations, and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Common Stock, subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code; and (iii) deliver customary transfer documentation as reasonably determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Fractional Shares**. Any adjustment provided under this Section 13 may provide for the elimination of any fractional share that might otherwise become subject to an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Binding Effect**. Any adjustment, substitution, determination of value or other action taken by the Committee under this Section 13 shall be conclusive and binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Amendments and Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Amendment and Termination of the Plan**. The Board or Committee may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; **provided**, **that** no such amendment, alteration, suspension, discontinuance or termination shall be made without stockholder approval if (i) such approval is necessary to comply with any regulatory requirement applicable to the Plan (including, without limitation, as necessary to comply with any rules or regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company may be listed or quoted) or for changes in GAAP to new accounting standards; (ii) it would materially increase the number of securities which may be issued under the Plan (except for increases pursuant to Sections 5 or 13 of the Plan); or (iii) it would materially modify the requirements for participation in the Plan; **provided***,* **further**, **that** any such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant, holder or beneficiary. Notwithstanding the foregoing, no amendment shall be made to Section 14(c) of the Plan without stockholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Amendment of Award Agreements**. The Committee may, to the extent consistent with the terms of the Plan and any applicable Award Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award theretofore granted or the associated Award Agreement, prospectively or retroactively (including after a Participant's Termination); **provided**, **that**, other than pursuant to Section 13, any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **No Repricing**. Notwithstanding anything in the Plan to the contrary, without stockholder approval, except as otherwise permitted under Section 13 of the Plan, (i) no amendment or modification may reduce the Exercise Price of any Option or the Strike Price of any SAR; (ii) the Committee may not cancel any outstanding Option or SAR and replace it with a new Option or SAR (with a lower Exercise Price or Strike Price, as the case may be) or other Award or cash payment that is greater than the intrinsic value (if any) of the cancelled Option or SAR; and (iii) the Committee may not take any other action which is considered a "repricing" for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **General**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Award Agreements**. Each Award (other than a Cash-Based Incentive Award) under the Plan shall be evidenced by an Award Agreement, which shall be delivered to the Participant to whom such Award was granted and shall specify the terms and conditions of the Award and any rules applicable thereto, including, without limitation, the effect on such Award of the death, Disability or Termination of a Participant, or of such other events as may be determined by the Committee. For purposes of the Plan, an Award Agreement may be in any such form (written or electronic) as determined by the Committee (including, without limitation, a Board or Committee resolution, an employment agreement, a notice, a certificate or a letter) evidencing the Award. The Committee need not require an Award Agreement to be signed by the Participant or a duly authorized representative of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Nontransferability**.

&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) Each Award shall be exercisable only by such Participant to whom such Award was granted during the Participant's lifetime, or, if permissible under applicable law, by the Participant's legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant (unless such transfer is specifically required pursuant to a domestic relations order or by applicable law) other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against any member of the Company Group; **provided**, **that** the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

&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) Notwithstanding the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options) to be transferred by a Participant, without consideration, subject to such rules as the Committee may adopt consistent with any applicable Award Agreement to preserve the purposes of the Plan, to (A) any person who is a "family member" of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act or any successor form of registration statement promulgated by the Securities and Exchange Commission (collectively, the "**Immediate Family Members**"); (B) a trust solely for the benefit of the Participant and the Participant's Immediate Family Members; (C) a partnership or limited liability company whose only partners or stockholders are the Participant and the Participant's Immediate Family Members; or (D) a beneficiary to whom donations are eligible to be treated as "charitable contributions" for federal income tax purposes (each transferee described in clauses (A), (B), (C) and (D) above is hereinafter referred to as a "**Permitted Transferee**"); **provided**, **that** the Participant gives the Committee advance written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing that such a transfer would comply with the requirements of the Plan.

&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 terms of any Award transferred in accordance with clause (ii) above shall apply to the Permitted Transferee and any reference in the Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect a registration statement on an appropriate form covering the shares of Common Stock to be acquired pursuant to the exercise of such Option if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement is necessary or appropriate; (C) neither the Committee nor the Company shall be required to provide any notice to a Permitted Transferee, whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise; and (D) the consequences of a Participant's Termination under the terms of the Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including, without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified in the Plan and the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Dividends and Dividend Equivalents**. The Committee may, in its sole discretion, provide a Participant as part of an Award (other than an Option or SAR) with dividends, dividend equivalents, or similar payments in respect of Awards, payable in cash, shares of Common Stock, other securities, other Awards or other property, on such terms and conditions as may be determined by the Committee in its sole discretion, including, without limitation, on a deferred basis, payment directly to the Participant when vested, withholding of such amounts by the Company subject to vesting of the Award or reinvestment in additional shares of Common Stock, Restricted Stock or other Awards. Any dividend or dividend equivalent otherwise payable in respect of any share of Restricted Stock or other Award that remains subject to vesting conditions at the time of payment of such dividend or dividend equivalent shall be retained by the Company and remain subject to the same vesting conditions and risks of forfeiture as the underlying Award to which the dividend or dividend equivalent relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Tax Withholding**.

&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 Participant shall be required to pay to the Company or one or more of its Subsidiaries, as applicable, an amount in cash (by check or wire transfer) equal to the aggregate amount of any income, employment and/or other applicable taxes that are statutorily required to be withheld in respect of an Award. Alternatively, the Company or any of its Subsidiaries may elect, in its sole discretion, to satisfy this requirement by withholding such amount from any cash compensation or other cash amounts owing to a Participant.

&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) Without limiting the foregoing, the Committee may (but is not obligated to), in its sole discretion, permit or require a Participant to satisfy, all or any portion of the income, employment and/or other applicable taxes that are statutorily required to be withheld with respect to an Award by (A) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest) that have been both held by the Participant and vested for at least six (6) months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment under applicable accounting standards) having an aggregate Fair Market Value equal to such required withholding liability (or portion thereof); or (B) having the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, the Participant upon the grant, exercise, vesting or settlement of the Award, as applicable, a number of shares of Common Stock with an aggregate Fair Market Value equal to an amount, subject to clause (iii) below, but in each case of (A) or (B) not in excess of the maximum individual statutorily required withholding liability (or portion thereof). In addition, subject to any requirements of applicable law, the Participant may also satisfy the tax withholding obligations by other methods, including selling shares of Common Stock that would otherwise be available for delivery, so long as the Committee has specifically approved such payment method in advance.

&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 Committee has full discretion to allow Participants to satisfy, in whole or in part, any additional income, employment and/or other applicable taxes payable by them with respect to an Award by electing to have the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, a Participant upon the grant, exercise, vesting or settlement of the Award, as applicable, shares of Common Stock having an aggregate Fair Market Value that is greater than the applicable minimum required statutory withholding liability (but such withholding may in no event be in excess of the maximum individual statutory withholding amount(s) in a Participant's relevant tax jurisdictions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Data Protection**. By participating in the Plan or accepting any rights granted under it, each Participant consents to the collection and processing of personal data relating to the Participant so that the Company and its Affiliates can fulfill their obligations and exercise their rights under the Plan and generally administer and manage the Plan. This data will include, but may not be limited to, data about participation in the Plan and shares offered or received, purchased, or sold under the Plan from time to time and other appropriate financial and other data (such as the date on which the Awards were granted) about the Participant and the Participant's participation in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **No Claim to Awards; No Rights to Continued Employment; Waiver**. No employee of any member of the Company Group, or other Person, shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee's determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants are similarly situated. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or service of the Service Recipient or any other member of the Company Group, nor shall it be construed as giving any Participant any rights to continued service on the Board. The Service Recipient or any other member of the Company Group may at any time dismiss a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or any Award Agreement. By accepting an Award under the Plan, a Participant shall thereby be deemed to have waived any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to non-continuation of the Award beyond the period provided under the Plan or any Award Agreement, except to the extent of any provision to the contrary in any written employment contract or other agreement between the Service Recipient and/or any member of the Company Group and the Participant, whether any such agreement is executed before, on or after the Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **International Participants**. With respect to Participants who reside or work outside of the United States of America, the Committee may, in its sole discretion, amend the terms of the Plan and create or amend Sub-Plans or amend outstanding Awards with respect to such Participants in order to conform such terms with the requirements of local law or to obtain more favorable tax or other treatment for a Participant or any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Designation and Change of Beneficiary**. Each Participant may file with the Committee a written designation of one or more Persons as the beneficiary or beneficiaries, as applicable, who shall be entitled to receive the amounts payable with respect to an Award, if any, due under the Plan upon the Participant's death. A Participant may, from time to time, revoke or change the Participant's beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; **provided**, **that** no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant's death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by a Participant, the beneficiary shall be deemed to be the Participant's spouse or, if the Participant is unmarried at the time of death, the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Termination**. Except as otherwise provided in an Award Agreement, unless determined otherwise by the Committee at any point following such event: (i) neither a temporary absence from employment or service due to illness, vacation or leave of absence (including, without limitation, a call to active duty for military service through a Reserve or National Guard unit) nor a transfer from employment or service with one Service Recipient to employment or service with another Service Recipient (or vice-versa) shall be considered a Termination; and (ii) if a Participant undergoes a Termination of employment, but such Participant continues to provide services to the Company Group in a non-employee capacity, such change in status shall not be considered a Termination for purposes of the Plan. Further, unless otherwise determined by the Committee, in the event that any Service Recipient ceases to be a member of the Company Group (by reason of sale, divestiture, spin-off or other similar transaction), unless a Participant's employment or service is transferred to another entity that would constitute a Service Recipient immediately following such transaction, such Participant shall be deemed to have suffered a Termination hereunder as of the date of the consummation of such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **No Rights as a Stockholder**. Except as otherwise specifically provided in the Plan or any Award Agreement, no Person shall be entitled to the privileges of ownership in respect of shares of Common Stock which are subject to Awards hereunder until such shares have been issued or delivered to such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Government and Other Regulations**.

&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 obligation of the Company to settle Awards in shares of Common Stock or other consideration shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any shares of Common Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel (if the Company has requested such an opinion), satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Common Stock to be offered or sold under the Plan. The Committee shall have the authority to provide that all shares of Common Stock or other securities of any member of the Company Group issued under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award Agreement, the Federal securities laws, or the rules, regulations and other requirements of the Securities and Exchange Commission, any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted and any other applicable Federal, state, local or non-U.S. laws, rules, regulations and other requirements, and, without limiting the generality of Section 9 of the Plan, the Committee may cause a legend or legends to be put on certificates representing shares of Common Stock or other securities of any member of the Company Group issued under the Plan to make appropriate reference to such restrictions or may cause such Common Stock or other securities of any member of the Company Group issued under the Plan in book-entry form to be held subject to the Company's instructions or subject to appropriate stop-transfer orders. Notwithstanding any provision in the Plan to the contrary, the Committee reserves the right to, at any time, add any additional terms or provisions to any Award granted under the Plan that the Committee, in its sole discretion, deems necessary or advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

&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 Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions and/or blockage and/or other market considerations would make the Company's acquisition of shares of Common Stock from the public markets, the Company's issuance of Common Stock to the Participant, the Participant's acquisition of Common Stock from the Company and/or the Participant's sale of Common Stock to the public markets, illegal, impracticable or inadvisable. If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, the Company shall, subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code, (A) pay to the Participant an amount equal to the excess of (I) the aggregate Fair Market Value of the shares of Common Stock subject to such Award or portion thereof cancelled (determined as of the applicable exercise date, or the date that the shares would have been vested or issued, as applicable); over (II) the aggregate Exercise Price or Strike Price (in the case of an Option or SAR, respectively) or any amount payable as a condition of issuance of shares of Common Stock (in the case of any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation of such Award or portion thereof, or (B) in the case of Restricted Stock, Restricted Stock Units or Other Equity-Based Awards, provide the Participant with a cash payment or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such Restricted Stock, Restricted Stock Units or Other Equity-Based Awards, or the underlying shares in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **No Section 83(b) Elections Without Consent of Company**. Except with respect to OP Units and LTIP Units, no election under Section 83(b) of the Code or under a similar provision of law may be made unless expressly permitted by the terms of the applicable Award Agreement or by action of the Company in writing prior to the making of such election. If a Participant, in connection with the acquisition of OP Units, LTIP Units or shares of Common Stock, under the Plan or otherwise, is expressly permitted to make such election and the Participant makes the election, the Participant shall notify the Company of such election within ten (10) days of filing notice of the election with the Internal Revenue Service or other governmental authority, in addition to any filing and notification required pursuant to Section 83(b) of the Code or other applicable provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Payments to Persons Other Than Participants**. If the Committee shall find that any Person to whom any amount is payable under the Plan is unable to care for the Participant's affairs because of illness or accident, or is a minor, or has died, then any payment due to such Person or the Participant's estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to the Participant's spouse, child, relative, an institution maintaining or having custody of such Person, or any other Person deemed by the Committee to be a proper recipient on behalf of such Person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **Nonexclusivity of the Plan**. Neither the adoption of the Plan by the Committee nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Committee or Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of equity-based awards otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **No Trust or Fund Created**. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between any member of the Company Group, on the one hand, and a Participant or other Person, on the other hand. No provision of the Plan or any Award shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company be obligated to maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other service providers under general law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Reliance on Reports**. Each member of the Committee and each member of the Board shall be fully justified in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon any report made by the independent public accountant of any member of the Company Group and/or any other information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other than himself or herself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **Relationship to Other Benefits**. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan or as required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **Governing Law**. The Plan shall be governed by and construed in accordance with the internal laws of the State of Maryland applicable to contracts made and performed wholly within the State of Maryland, without giving effect to the conflict of laws provisions thereof. EACH PARTICIPANT WHO ACCEPTS AN AWARD IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST SUCH PARTICIPANT IN RESPECT OF THE PARTICIPANT'S RIGHTS OR OBLIGATIONS HEREUNDER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **Severability**. If any provision of the Plan or any Award or Award Agreement is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be construed or deemed stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **Obligations Binding on Successors**. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **Section 409A of the Code**.

&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) Notwithstanding any provision of the Plan to the contrary, it is intended that the provisions of the Plan comply with Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect of such Participant in connection with the Plan (including any taxes and penalties under Section 409A of the Code), and neither the Service Recipient nor any other member of the Company Group shall have any obligation to indemnify or otherwise hold such Participant (or any beneficiary) harmless from any or all of such taxes or penalties. With respect to any Award that is considered "deferred compensation" subject to Section 409A of the Code, references in the Plan to "termination of employment" (and substantially similar phrases) shall mean "separation from service" within the meaning of Section 409A of the Code. For purposes of Section 409A of the Code, each of the payments that may be made in respect of any Award granted under the Plan is designated as a separate payment.

&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) Notwithstanding anything in the Plan to the contrary, if a Participant is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, to the extent necessary to avoid the imposition of additional taxes thereunder, no payments in respect of any Awards that are "deferred compensation" subject to Section 409A of the Code and which would otherwise be payable upon the Participant's "separation from service" (as defined in Section 409A of the Code) shall be made to such Participant prior to the date that is six (6) months after the date of such Participant's "separation from service" or, if earlier, the date of the Participant's death. Following any applicable six (6) month delay, all such delayed payments will be paid in a single lump sum on the earliest date permitted under Section 409A of the Code that is also a business day.

&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) Notwithstanding the foregoing, to the extent that any Award constitutes a deferral of compensation subject to Section 409A of the Code, and if that Award provides for payment or a change in the time or form of payment based upon a Change in Control, then, solely for purposes of applying such payment or a change in the time or form of payment provision (and, for the avoidance of doubt, not for purposes of determining whether the Award shall benefit from the vesting acceleration resulting from a Change In Control), a Change in Control shall not be deemed to have occurred upon an event described in this definition unless the event would also constitute a change in ownership or effective control of, or a change in ownership of a substantial portion of the assets of, the Company under Section 409A of the Code, and if the Award is not payable upon or by reference to a Change in Control, the Award shall instead be paid based on the general distribution date or event provided for in the Award Agreement, and in any event in compliance with Section 409A of the Code; and (B) unless otherwise provided by the Committee in an Award Agreement or otherwise, in the event that the timing of payments in respect of any Award (that would otherwise be considered "deferred compensation" subject to Section 409A of the Code) would be accelerated upon the occurrence of a Disability, no such acceleration shall be permitted unless the Disability also satisfies the definition of "Disability" pursuant to Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **Clawback/Repayment**. All Awards shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any clawback, forfeiture or other similar policy adopted by the Board or the Committee and as in effect from time to time; and (ii) applicable law. Further, to the extent that the Participant receives any amount in excess of the amount that the Participant should otherwise have received under the terms of the Award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), the Participant shall be required to repay any such excess amount to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **Right of Offset**. The Company will have the right to offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement any outstanding amounts (including, without limitation, travel and entertainment or advance account balances, loans, repayment obligations under any Awards, or amounts repayable to the Company pursuant to tax equalization, housing, automobile or other employee programs) that the Participant then owes to any member of the Company Group and any amounts the Committee otherwise deems appropriate pursuant to any tax equalization policy or agreement. Notwithstanding the foregoing, if an Award is "deferred compensation" subject to Section 409A of the Code, the Committee will have no right to offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement if such offset could subject the Participant to the additional tax imposed under Section 409A of the Code in respect of an outstanding Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **Lock-Up Agreement**. As a condition to the grant of an Award, if requested by the Company and the lead underwriter of any public offering of shares of Common Stock (the "**Lead Underwriter**"*),* a Participant must irrevocably agree not to sell, contract to sell, grant any option to purchase, transfer the economic risk of ownership in, make any short sale of, pledge or otherwise transfer or dispose of, any interest in any shares of Common Stock or any securities convertible into, derivative of, or exchangeable or exercisable for, or any other rights to purchase or acquire shares of Common Stock (except shares of Common Stock included in such public offering or acquired on the public market after such offering) during such period of time after the effective date of a registration statement of the Company filed under the Securities Act that the Lead Underwriter may specify (the "**Lock-Up Period**"). Each Participant must sign such documents as may be requested by the Lead Underwriter or the Company to effect the foregoing. The Company may impose stop-transfer instructions with respect to shares of Common Stock acquired under an Award until the end of such Lock-Up Period. In addition, the Company may impose additional restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **Expenses; Titles and Headings**. The expenses of administering the Plan shall be borne by the Company Group. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

## Exhibit 10.6

**Exhibit 10.6**

***Form for Director Awards***

**JOSS REALTY REIT, INC.**<br>**RESTRICTED STOCK GRANT AND AGREEMENT**

This Restricted Stock Grant and Agreement (this "**Agreement**"), is made effective as of the date set forth on the Company signature page (the "**Signature Page**") attached hereto, by and between Joss Realty REIT, Inc., a Maryland corporation (together with its successors and assigns, the "**Company**") and the participant identified on the Signature Page ("**Participant**").

**R E C I T A L S:**

WHEREAS, the Company has adopted the Joss Realty REIT, Inc. 2026 Equity Incentive Plan (as it may be amended, the "**Plan**"), the terms of which Plan are incorporated herein by reference and made a part of this Agreement, and capitalized terms not otherwise defined herein shall have the same meaning as in the Plan; and

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the Restricted Stock provided for herein to Participant pursuant to the Plan and the terms set forth herein.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **The Restricted Shares**.

&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) Subject to the terms and conditions of the Plan and the additional terms and conditions set forth in this Agreement, the Company has granted [●] shares of Common Stock ("**Restricted Shares**") to Participant on [***insert date of grant***] (the "**Date of Grant**"), subject to adjustment as set forth in the Plan and this Agreement. Except as otherwise provided in this Agreement and unless otherwise determined by the Committee in its sole discretion, subject to the continued service of Participant with the Company Group through the applicable vesting date, [●] percent ([●]%) of the Restricted Shares granted hereunder shall become vested and nonforfeitable on each [of the first [●] anniversaries]<sup>1</sup> of the Vesting Commencement Date (as set forth on the Signature Page) (the "**Vested Shares**"). The Restricted Shares granted hereunder that have not become Vested Shares are the "**Unvested Restricted Shares.**" For purposes of clarity, the Vested Shares and Unvested Restricted Shares are collectively, the "**Restricted Shares**".

&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 Vested Shares shall not be subject to any forfeiture restrictions. The Unvested Restricted Shares shall vest and become nonforfeitable Vested Shares in accordance with paragraph 1(a) above.

&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) Except as otherwise provided in this Agreement or unless otherwise determined by the Committee in its sole discretion, if Participant's employment or service with the Company Group is terminated at any time, all Unvested Restricted Shares shall automatically and immediately be forfeited and canceled without consideration. If Participant experiences a termination of employment or service with the Company Group due to Participant's death or Disability, then the Restricted Shares shall be deemed to fully vest on the date of such death or Disability, as applicable.

<sup>1</sup> IPO grants will have 3 year annual ratable vesting

&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) Participant may timely (within thirty (30) days following the Date of Grant) file (via certified mail, return receipt requested) an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder using the form of <u>Exhibit A</u> attached hereto. If Participant makes such election, Participant shall certify to the Company that Participant has made such timely filing and furnish a copy of such filing to the Company. Participant should consult Participant's tax advisor regarding the consequences of a Section 83(b) election, as well as the receipt, vesting, holding and sale of the Restricted Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Book Entry; Certificates**. The Company shall recognize Participant's ownership of the Restricted Shares through uncertificated book entry. If elected by the Company, certificates evidencing the Restricted Shares may be issued by the Company and any such certificates shall be registered in Participant's name on the stock transfer books of the Company promptly after the date hereof, but shall remain in the physical custody of the Company or its designee at all times prior to the later of (x) the vesting of Unvested Restricted Shares pursuant to this Agreement and (y) the expiration of any transfer restrictions set forth in this Agreement or otherwise applicable to the Restricted Shares. As soon as practicable following such time, any certificates for the Restricted Shares shall be delivered to Participant or to Participant's legal guardian or representative along with the stock powers relating thereto. However, the Company shall not be liable to Participant for damages relating to any delays in issuing the certificates (if any) to Participant, any loss by Participant of the certificates, or any mistakes or errors in the issuance of the certificates or in the certificates themselves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Rights as a Stockholder**. Participant shall be the record owner of the Restricted Shares until or unless such Restricted Shares are forfeited pursuant to the terms of this Agreement, and as record owner shall be entitled to all rights of a holder of shares of Common Stock, including, without limitation, voting rights with respect to the Restricted Shares, rights to dividends or other distributions payable to holders of shares of record on and after the Date of Grant (although such dividends and other distributions will be treated, to the extent required by applicable law, as additional compensation for tax purposes and under other applicable legal circumstances), and to exercise all other rights, powers and privileges of a holder of shares of Common Stock with respect to the Restricted Shares; provided, that, to the extent the Company issues a dividend or other distributions in the form of shares or other property, such shares or other property shall be subject to the same restrictions that are then applicable to the Restricted Shares under the Plan and this Agreement and such restrictions shall expire at the same time as the restrictions on the Restricted Shares expire. Any cash dividends paid with respect to unvested Restricted Shares shall at all times be subject to the provisions of this Agreement (including the vesting and forfeiture provisions set forth above); any such cash dividends paid with respect to such unvested Restricted Shares shall vest as such Restricted Shares become vested, and shall be paid to Participant on the date the Restricted Shares to which such cash dividends relate become vested. Notwithstanding anything to the contrary herein, the Restricted Shares shall be subject to the limitations on transfer and encumbrance set forth in Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Repayment of Proceeds; Clawback**. The Restricted Shares and all proceeds related to the Restricted Shares are subject to the clawback and repayment terms set forth in Sections 15(v) and 15(w) of the Plan and the Company's clawback policy, as in effect from time to time, to the extent Participant is a director or officer of the Company Group. If Participant's service with the Company Group is terminated by the Company for Cause or the Company Group discovers after Participant's Termination that grounds for a Termination for Cause existed at the time thereof, then Participant shall be required to pay to the Company, within ten (10) business days following the Company's request to Participant therefor, an amount equal to the aggregate after-tax proceeds (taking into account all amounts of tax that would be recoverable upon a claim of loss for payment of such proceeds in the year of repayment) Participant received either in cash in respect of the vesting of Restricted Shares, or upon the sale or other disposition of, or dividends or distributions in respect of, Common Stock acquired upon the vesting of the Restricted Shares. Any reference in this Agreement to grounds existing for a Termination for Cause shall be determined without regard to any notice period, cure period or other procedural delay or event required prior to finding of, or Termination for, Cause. The foregoing remedy shall not be exclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Legend**. To the extent applicable, all book entries (or certificates, if any) representing the Restricted Shares delivered to Participant as contemplated by Section 3 above shall be subject to the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable Federal or state laws, and the Company may cause notations to be made next to the book entries (or a legend or legends put on certificates, if any) to make appropriate reference to such restrictions. Any such book entry notations (or legends on certificates, if any) shall include a description to the effect of the restrictions set forth in Sections 1 and 7 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **No Right to Continued Employment or Engagement**. Neither the Plan nor this Agreement nor Participant's receipt of the Restricted Shares hereunder shall impose any obligation on the Company Group to continue the employment or engagement of Participant. Further, the Company Group may at any time terminate the employment or service of such Participant, free from any liability or claim under the Plan or this Agreement, except as otherwise expressly provided herein. The grant of the Restricted Shares is a one-time benefit and does not create any contractual or other right to receive any other grant of Restricted Shares or other Award under the Plan in the future. The grant of the Restricted Shares hereunder does not form part of Participant's entitlement to compensation or other benefits in terms of Participant's engagement with the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Assignment Restrictions**.

&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 Unvested Restricted Shares may not, at any time prior to becoming vested pursuant to the terms of this Agreement, be Assigned, and any such purported Assignment shall be void and unenforceable against the Company or any Affiliate; **provided**, **that** the designation of a beneficiary shall not constitute an Assignment.

&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) "**Assign**" or "**Assignment**" shall mean (in either the noun or the verb form, including with respect to the verb form, all conjugations thereof within their correlative meanings) with respect to any security, the gift, sale, assignment, transfer, pledge, hypothecation or other disposition (whether for or without consideration, whether directly or indirectly, and whether voluntary, involuntary or by operation of law) of such security or any interest therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Withholding**. Participant shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any interest that accrues thereon, that Participant incurs in connection with the receipt or vesting of any Restricted Shares granted hereunder. Participant may be required to pay to the Company or any Affiliate and the Company shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Restricted Shares, their grant or vesting or any payment or transfer with respect to the Restricted Shares at the minimum applicable statutory rates, and to take such action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. The Committee may (but is not obligated to), in its sole discretion, permit or require Participant to satisfy all or any portion of the minimum income, employment and/or other applicable taxes that are statutorily required to be withheld by (A) the delivery of shares of Common Stock; or (B) having the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, Participant shares of Common Stock with an aggregate Fair Market Value equal to an amount not in excess of such minimum statutorily required withholding liability (or portion thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Securities Laws; Cooperation**. Upon the vesting of any Unvested Restricted Shares, Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws, the Plan or this Agreement. Participant further agrees to cooperate with the Company in taking any action reasonably necessary or advisable to consummate the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Notices**. Any notice necessary under this Agreement shall be addressed to the Company in care of its Corporate Secretary at the principal executive office of the Company and to Participant at the address appearing in the personnel records of the Company for such Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Choice of Law; Jurisdiction; Venue**. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Maryland applicable to contracts made and performed wholly within the State of Maryland, without giving effect to the conflict of laws provisions thereof. Any suit, action or proceeding with respect to this Agreement (or any provision incorporated by reference), or any judgment entered by any court in respect of any thereof, shall be brought in any court of competent jurisdiction in the State of Maryland, and each of Participant, the Company, and any Permitted Transferees who hold Shares pursuant to a valid Assignment, hereby submits to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding, or judgment. Each of Participant, the Company, and any Permitted Transferees who hold Shares pursuant to a valid Assignment hereby irrevocably waives (a) any objections which it may now or hereafter have to the laying of the venue of any suit, action, or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction in the State of Maryland, (b) any claim that any such suit, action, or proceeding brought in any such court has been brought in any inconvenient forum and (c) any right to a jury trial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Shares Subject to Plan; Amendment**. By entering into this Agreement, Participant agrees and acknowledges that Participant has received and read a copy of the Plan. The Restricted Shares granted hereunder are subject to the Plan. The terms and provisions of the Plan, as it may be amended from time to time, are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail. The Committee may waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate this Agreement, but no such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination shall materially adversely affect the rights of Participant hereunder without the consent of Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Section 409A**.

&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) To the extent (i) any dividends or dividend equivalents to which Participant becomes entitled under this Agreement in connection with Participant's termination of employment or service with the Company constitutes deferred compensation subject to Section 409A of the Code; (ii) Participant is at the time of his separation from service a "specified employee" under Section 409A of the Code; and (iii) at the time of Participant's separation from service the Company is publicly traded (as defined in Section 409A of the Code), then such dividends or dividend equivalents (other than payment of dividends or dividend equivalents permitted by Section 409A of the Code to be paid or delivered within six months of Participant's separation from service) shall not be made until the earlier of (x) the first day of the seventh month following Participant's separation from service or (y) the date of Participant's death following such separation from service. Upon the expiration of the applicable deferral period, any dividends or dividend equivalents which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this <u>Section 13</u> (together with, as applicable, accrued interest thereon) shall be delivered to Participant or Participant's beneficiary in one lump sum.

&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 termination of employment or service shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that are deferred compensation subject to (and not exempt from) Section 409A of the Code upon or following a termination of employment or service unless such termination is also a "separation from service" (within the meaning of Section 409A of the Code).

&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) It is intended that this Agreement be exempt from (or if not exempt, comply with) the provisions of Section 409A of the Code so as to not subject Participant to the payment of additional interest and taxes under Section 409A of the Code, and in furtherance of this intent, this Agreement shall be interpreted, operated and administered in a manner consistent with these intentions. To the extent that any provision of this Agreement would fail to comply with applicable requirements of Section 409A of the Code, the Company may, in its sole and absolute discretion and without requiring Participant's consent, make such modifications to this Agreement and/or payments to be made thereunder to the extent it determines necessary or advisable to comply with the requirements of Section 409A of the Code. Nothing in this Agreement shall be construed as a guarantee of any particular tax effect for the Award, and the Company does not guarantee that any compensation or benefits provided under this Agreement will satisfy the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Electronic Signature and Delivery**. This Agreement may be accepted by return signature or by electronic confirmation. By accepting this Agreement, Participant consents to the electronic delivery of prospectuses, annual reports and other information required to be delivered by U.S. Securities and Exchange Commission rules (which consent may be revoked in writing by Participant at any time upon three business days' notice to the Company, in which case subsequent prospectuses, annual reports and other information shall be delivered in hard copy to Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Electronic Participation in Plan**. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

[*Signature Pages Follow*]

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the Date of Grant.

---

| | |
|:---|:---|
| **JOSS REALTY REIT, INC.** | **JOSS REALTY REIT, INC.** |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| Date of Grant: | [______] |
| Number of Restricted Shares Granted: | [______] |
| Vesting Commencement Date: | [______] |

---

Acknowledged and Agreed as of the date first written above:

[**PARTICIPANT NAME**]

  <br> Participant Signature

Signature Page

Restricted Stock Agreement

**EXHIBIT A**

**ELECTION TO INCLUDE SHARES IN GROSS<br>INCOME PURSUANT TO SECTION 83(b) OF THE<br>INTERNAL REVENUE CODE**

The undersigned acquired shares of common stock (the "**Shares**") of JOSS REALTY REIT, INC. (the "**Company**") on [______] (the "**Transfer Date**").

The undersigned desires to make an election to have the Restricted Shares taxed under the provision of Section 83(b) of the Internal Revenue Code of 1986, as amended ("**Code §83(b)**"), at the time the undersigned acquired the Restricted Shares.

Therefore, pursuant to Code §83(b) and Treasury Regulation §1.83-2 promulgated thereunder, the undersigned hereby makes an election, with respect to the Restricted Shares (described below), to report as taxable income for calendar year ____ the excess, if any, of the Restricted Shares' fair market value on the Transfer Date over the acquisition price thereof.

The following information is supplied in accordance with Treasury Regulation §1.83-2(e):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name, address and social security number of the undersigned:

---

| | |
|:---|:---|
| Name: | |
| Address: | |
| SSN: | ________-_____-________ |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A description of the property with respect to which the election is being made: [________] Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The date on which the property was transferred: the Transfer Date. The taxable year for which such election is made: ________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The restrictions to which the property is subject: The Restricted Shares are subject to time-based vesting conditions. If the undersigned ceases to be employed or engaged by the Company and its affiliates under certain circumstances, all or a portion of the Restricted Shares may be subject to forfeiture. The Restricted Shares are also subject to transfer restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The aggregate fair market value on the Transfer Date of the property with respect to which the election is being made, determined without regard to any lapse restrictions: $[________].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The aggregate amount paid for such property: $[________].

A copy of this election has been furnished to the Corporate Secretary of the Company pursuant to Treasury Regulations §1.83-2(e)(7).

Dated: ________ __, 20___

By: <u><br></u> <br> Name: <br> Title:

## Exhibit 10.7

**Exhibit 10.7**

***Form for Employee Awards***

**JOSS REALTY REIT, INC.**<br>**RESTRICTED STOCK GRANT AND AGREEMENT**

This Restricted Stock Grant and Agreement (this "**Agreement**"), is made effective as of the date set forth on the Company signature page (the "**Signature Page**") attached hereto, by and between Joss Realty REIT, Inc., a Maryland corporation (together with its successors and assigns, the "**Company**") and the participant identified on the Signature Page ("**Participant**").

**R E C I T A L S:**

WHEREAS, the Company has adopted the Joss Realty REIT, Inc. 2026 Equity Incentive Plan (as it may be amended, the "**Plan**"), the terms of which Plan are incorporated herein by reference and made a part of this Agreement, and capitalized terms not otherwise defined herein shall have the same meaning as in the Plan; and

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the Restricted Stock provided for herein to Participant pursuant to the Plan and the terms set forth herein.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **The Restricted Shares**.

&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) Subject to the terms and conditions of the Plan and the additional terms and conditions set forth in this Agreement, the Company has granted [●] shares of Common Stock ("**Restricted Shares**") to Participant on [***insert date of grant***] (the "**Date of Grant**"), subject to adjustment as set forth in the Plan and this Agreement. [●]<sup>1</sup> Restricted Shares shall vest as specified in **Annex A** attached hereto (the "**Time Vested Restricted Shares**") and [●]<sup>2</sup> Restricted Shares, representing the number of Restricted Shares that can vest based on performance, shall vest as specified in **Annex B** attached hereto (the "**Performance Vested Restricted Shares**"). Except as otherwise provided in this Agreement and unless otherwise determined by the Committee in its sole discretion, subject to the continued service of Participant with the Company Group through the applicable vesting date, the Restricted Shares granted hereunder shall become vested and nonforfeitable as specified in **Annex A** attached hereto and **Annex B** attached hereto (the "**Vested Shares**"). The Restricted Shares granted hereunder that have not become Vested Shares are the "**Unvested Restricted Shares.**" For purposes of clarity, the Vested Shares and Unvested Restricted Shares are collectively, the "**Restricted Shares**".

&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 Vested Shares shall not be subject to any forfeiture restrictions. The Unvested Restricted Shares shall vest and become nonforfeitable Vested Shares in accordance with paragraph 1(a) above.

<sup>1</sup> For IPO awards 60% of the Restricted Shares granted under the Award will be Time Vested Restricted Shares

<sup>2</sup> For IPO awards 40% of the Restricted Shares granted under the Award will be Performance Vested Restricted Shares

&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) Except as otherwise provided in this Agreement or unless otherwise determined by the Committee in its sole discretion, if Participant's employment or service with the Company Group is terminated at any time, all Unvested Restricted Shares shall automatically and immediately be forfeited and canceled without consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Participant experiences a termination of employment or service with the Company Group due to Participant's death or Disability, then the Time Vested Restricted Shares shall be deemed to fully vest on the date of such death or Disability, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If Participant's employment or service with the Company Group is terminated by the Company Group without Cause or by Participant as a result of a resignation for Good Reason (as defined herein), in either case, on or during the twelve (12) month period immediately following the date of a Change in Control, then Participant shall be deemed to fully vest in the Time Vested Restricted Shares on the date of such Termination. For purposes of this Agreement, "Good Reason" means any termination of Participant's employment or service with the Company Group by Participant that is caused by any one or more of the following events, in each case, without Participant's written consent: (A) assignment to Participant of any duties inconsistent in any material respect with Participant's authority, duties or responsibilities as in effect immediately prior to the change that represent a material diminution of such duties, or any other action by the Company that results in a material diminution in such authority, duties or responsibilities; (B) a material change in the geographic location at which Participant must perform services to a location that is more than 50 miles from Participant's principal place of business immediately preceding the change, provided that such change in location extends the commute of Participant; or (C) a material reduction to Participant's base compensation, as in effect immediately prior to the change. Notwithstanding the foregoing, Participant shall be considered to have Good Reason only if Participant provides written notice to the Company specifying in reasonable detail the events or conditions upon which Participant is basing Good Reason and Participant provides such notice within ninety (90) days after the event that gives rise to Good Reason. Within thirty (30) days after notice has been received, the Company shall have the opportunity, but shall have no obligation, to cure such events or conditions that give rise to Good Reason. If the Company does not cure such events or conditions within the thirty (30) day period, Participant must terminate employment or service with the Company based on Good Reason within thirty (30) days after the expiration of the cure period.

&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) Participant may timely (within thirty (30) days following the Date of Grant) file (via certified mail, return receipt requested) an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder using the form of <u>Exhibit A</u> attached hereto. If Participant makes such election, Participant shall certify to the Company that Participant has made such timely filing and furnish a copy of such filing to the Company. Participant should consult Participant's tax advisor regarding the consequences of a Section 83(b) election, as well as the receipt, vesting, holding and sale of the Restricted Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Book Entry; Certificates**. The Company shall recognize Participant's ownership of the Restricted Shares through uncertificated book entry. If elected by the Company, certificates evidencing the Restricted Shares may be issued by the Company and any such certificates shall be registered in Participant's name on the stock transfer books of the Company promptly after the date hereof, but shall remain in the physical custody of the Company or its designee at all times prior to the later of (x) the vesting of Unvested Restricted Shares pursuant to this Agreement and (y) the expiration of any transfer restrictions set forth in this Agreement or otherwise applicable to the Restricted Shares. As soon as practicable following such time, any certificates for the Restricted Shares shall be delivered to Participant or to Participant's legal guardian or representative along with the stock powers relating thereto. However, the Company shall not be liable to Participant for damages relating to any delays in issuing the certificates (if any) to Participant, any loss by Participant of the certificates, or any mistakes or errors in the issuance of the certificates or in the certificates themselves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Rights as a Stockholder**. Participant shall be the record owner of the Restricted Shares until or unless such Restricted Shares are forfeited pursuant to the terms of this Agreement, and as record owner shall be entitled to all rights of a holder of shares of Common Stock, including, without limitation, voting rights with respect to the Restricted Shares, rights to dividends or other distributions payable to holders of shares of record on and after the Date of Grant (although such dividends and other distributions will be treated, to the extent required by applicable law, as additional compensation for tax purposes and under other applicable legal circumstances), and to exercise all other rights, powers and privileges of a holder of shares of Common Stock with respect to the Restricted Shares; provided, that, to the extent the Company issues a dividend or other distributions in the form of shares or other property, such shares or other property shall be subject to the same restrictions that are then applicable to the Restricted Shares under the Plan and this Agreement and such restrictions shall expire at the same time as the restrictions on the Restricted Shares expire. Any cash dividends paid with respect to unvested Restricted Shares shall at all times be subject to the provisions of this Agreement (including the vesting and forfeiture provisions set forth above); any such cash dividends paid with respect to such unvested Restricted Shares shall vest as such Restricted Shares become vested, and shall be paid to Participant on the date the Restricted Shares to which such cash dividends relate become vested. Notwithstanding anything to the contrary herein, the Restricted Shares shall be subject to the limitations on transfer and encumbrance set forth in Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Repayment of Proceeds; Clawback**. The Restricted Shares and all proceeds related to the Restricted Shares are subject to the clawback and repayment terms set forth in Sections 15(v) and 15(w) of the Plan and the Company's clawback policy, as in effect from time to time, to the extent Participant is a director or officer of the Company Group. If Participant's service with the Company Group is terminated by the Company for Cause or the Company Group discovers after Participant's Termination that grounds for a Termination for Cause existed at the time thereof, then Participant shall be required to pay to the Company, within ten (10) business days following the Company's request to Participant therefor, an amount equal to the aggregate after-tax proceeds (taking into account all amounts of tax that would be recoverable upon a claim of loss for payment of such proceeds in the year of repayment) Participant received either in cash in respect of the vesting of Restricted Shares, or upon the sale or other disposition of, or dividends or distributions in respect of, Common Stock acquired upon the vesting of the Restricted Shares. Any reference in this Agreement to grounds existing for a Termination for Cause shall be determined without regard to any notice period, cure period or other procedural delay or event required prior to finding of, or Termination for, Cause. The foregoing remedy shall not be exclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Legend**. To the extent applicable, all book entries (or certificates, if any) representing the Restricted Shares delivered to Participant as contemplated by Section 3 above shall be subject to the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable Federal or state laws, and the Company may cause notations to be made next to the book entries (or a legend or legends put on certificates, if any) to make appropriate reference to such restrictions. Any such book entry notations (or legends on certificates, if any) shall include a description to the effect of the restrictions set forth in Sections 1 and 7 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **No Right to Continued Employment or Engagement**. Neither the Plan nor this Agreement nor Participant's receipt of the Restricted Shares hereunder shall impose any obligation on the Company Group to continue the employment or engagement of Participant. Further, the Company Group may at any time terminate the employment or service of such Participant, free from any liability or claim under the Plan or this Agreement, except as otherwise expressly provided herein. The grant of the Restricted Shares is a one-time benefit and does not create any contractual or other right to receive any other grant of Restricted Shares or other Award under the Plan in the future. The grant of the Restricted Shares hereunder does not form part of Participant's entitlement to compensation or other benefits in terms of Participant's engagement with the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Assignment Restrictions**.

&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 Unvested Restricted Shares may not, at any time prior to becoming vested pursuant to the terms of this Agreement, be Assigned, and any such purported Assignment shall be void and unenforceable against the Company or any Affiliate; **provided**, **that** the designation of a beneficiary shall not constitute an Assignment.

&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) "**Assign**" or "**Assignment**" shall mean (in either the noun or the verb form, including with respect to the verb form, all conjugations thereof within their correlative meanings) with respect to any security, the gift, sale, assignment, transfer, pledge, hypothecation or other disposition (whether for or without consideration, whether directly or indirectly, and whether voluntary, involuntary or by operation of law) of such security or any interest therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Withholding**. Participant shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any interest that accrues thereon, that Participant incurs in connection with the receipt or vesting of any Restricted Shares granted hereunder. Participant may be required to pay to the Company or any Affiliate and the Company shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Restricted Shares, their grant or vesting or any payment or transfer with respect to the Restricted Shares at the minimum applicable statutory rates, and to take such action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. The Committee may (but is not obligated to), in its sole discretion, permit or require Participant to satisfy all or any portion of the minimum income, employment and/or other applicable taxes that are statutorily required to be withheld by (A) the delivery of shares of Common Stock; or (B) having the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, Participant shares of Common Stock with an aggregate Fair Market Value equal to an amount not in excess of such minimum statutorily required withholding liability (or portion thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Securities Laws; Cooperation**. Upon the vesting of any Unvested Restricted Shares, Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws, the Plan or this Agreement. Participant further agrees to cooperate with the Company in taking any action reasonably necessary or advisable to consummate the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Notices**. Any notice necessary under this Agreement shall be addressed to the Company in care of its Corporate Secretary at the principal executive office of the Company and to Participant at the address appearing in the personnel records of the Company for such Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Choice of Law; Jurisdiction; Venue**. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Maryland applicable to contracts made and performed wholly within the State of Maryland, without giving effect to the conflict of laws provisions thereof. Any suit, action or proceeding with respect to this Agreement (or any provision incorporated by reference), or any judgment entered by any court in respect of any thereof, shall be brought in any court of competent jurisdiction in the State of Maryland, and each of Participant, the Company, and any Permitted Transferees who hold Shares pursuant to a valid Assignment, hereby submits to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding, or judgment. Each of Participant, the Company, and any Permitted Transferees who hold Shares pursuant to a valid Assignment hereby irrevocably waives (a) any objections which it may now or hereafter have to the laying of the venue of any suit, action, or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction in the State of Maryland, (b) any claim that any such suit, action, or proceeding brought in any such court has been brought in any inconvenient forum and (c) any right to a jury trial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Shares Subject to Plan; Amendment**. By entering into this Agreement, Participant agrees and acknowledges that Participant has received and read a copy of the Plan. The Restricted Shares granted hereunder are subject to the Plan. The terms and provisions of the Plan, as it may be amended from time to time, are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail. The Committee may waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate this Agreement, but no such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination shall materially adversely affect the rights of Participant hereunder without the consent of Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Section 409A**.

&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) To the extent (i) any dividends or dividend equivalents to which Participant becomes entitled under this Agreement in connection with Participant's termination of employment or service with the Company constitutes deferred compensation subject to Section 409A of the Code; (ii) Participant is at the time of his separation from service a "specified employee" under Section 409A of the Code; and (iii) at the time of Participant's separation from service the Company is publicly traded (as defined in Section 409A of the Code), then such dividends or dividend equivalents (other than payment of dividends or dividend equivalents permitted by Section 409A of the Code to be paid or delivered within six months of Participant's separation from service) shall not be made until the earlier of (x) the first day of the seventh month following Participant's separation from service or (y) the date of Participant's death following such separation from service. Upon the expiration of the applicable deferral period, any dividends or dividend equivalents which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this <u>Section 13</u> (together with, as applicable, accrued interest thereon) shall be delivered to Participant or Participant's beneficiary in one lump sum.

&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 termination of employment or service shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that are deferred compensation subject to (and not exempt from) Section 409A of the Code upon or following a termination of employment or service unless such termination is also a "separation from service" (within the meaning of Section 409A of the Code).

&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) It is intended that this Agreement be exempt from (or if not exempt, comply with) the provisions of Section 409A of the Code so as to not subject Participant to the payment of additional interest and taxes under Section 409A of the Code, and in furtherance of this intent, this Agreement shall be interpreted, operated and administered in a manner consistent with these intentions. To the extent that any provision of this Agreement would fail to comply with applicable requirements of Section 409A of the Code, the Company may, in its sole and absolute discretion and without requiring Participant's consent, make such modifications to this Agreement and/or payments to be made thereunder to the extent it determines necessary or advisable to comply with the requirements of Section 409A of the Code. Nothing in this Agreement shall be construed as a guarantee of any particular tax effect for the Award, and the Company does not guarantee that any compensation or benefits provided under this Agreement will satisfy the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Electronic Signature and Delivery**. This Agreement may be accepted by return signature or by electronic confirmation. By accepting this Agreement, Participant consents to the electronic delivery of prospectuses, annual reports and other information required to be delivered by U.S. Securities and Exchange Commission rules (which consent may be revoked in writing by Participant at any time upon three business days' notice to the Company, in which case subsequent prospectuses, annual reports and other information shall be delivered in hard copy to Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Electronic Participation in Plan**. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

[*Signature Pages Follow*]

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the Date of Grant.

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| | |
|:---|:---|
| **JOSS REALTY REIT, INC.** | **JOSS REALTY REIT, INC.** |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| Date of Grant: | [______] |
| Number of Restricted Shares Granted: | [______] |
| Vesting Commencement Date: | [______] |

---

Acknowledged and Agreed as of the date first written above:

[**PARTICIPANT NAME**]

  <br> Participant Signature

Signature Page<br> Restricted Stock Agreement

**EXHIBIT A**

**ELECTION TO INCLUDE SHARES IN GROSS<br>INCOME PURSUANT TO SECTION 83(b) OF THE<br>INTERNAL REVENUE CODE**

The undersigned acquired shares of common stock (the "**Shares**") of JOSS REALTY REIT, INC. (the "**Company**") on [______] (the "**Transfer Date**").

The undersigned desires to make an election to have the Restricted Shares taxed under the provision of Section 83(b) of the Internal Revenue Code of 1986, as amended ("**Code §83(b)**"), at the time the undersigned acquired the Restricted Shares.

Therefore, pursuant to Code §83(b) and Treasury Regulation §1.83-2 promulgated thereunder, the undersigned hereby makes an election, with respect to the Restricted Shares (described below), to report as taxable income for calendar year ____ the excess, if any, of the Restricted Shares' fair market value on the Transfer Date over the acquisition price thereof.

The following information is supplied in accordance with Treasury Regulation §1.83-2(e):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name, address and social security number of the undersigned:

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| | |
|:---|:---|
| Name: | |
| Address: | |
| SSN: | ________-_____-________ |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A description of the property with respect to which the election is being made: [________] Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The date on which the property was transferred: the Transfer Date. The taxable year for which such election is made: ________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The restrictions to which the property is subject: The Restricted Shares are subject to time-based and performance-based vesting conditions. If the undersigned ceases to be employed or engaged by the Company and its affiliates under certain circumstances, all or a portion of the Restricted Shares may be subject to forfeiture. The Restricted Shares are also subject to transfer restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The aggregate fair market value on the Transfer Date of the property with respect to which the election is being made, determined without regard to any lapse restrictions: $[________].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The aggregate amount paid for such property: $[________].

A copy of this election has been furnished to the Corporate Secretary of the Company pursuant to Treasury Regulations §1.83-2(e)(7).

Dated: ________ __, 20____

By: <u><br></u> <br> Name: <br> Title:

**<u>Annex A</u>**

**<u>Time Vested Restricted Shares – Vesting Terms</u>**

Except as otherwise provided in this Agreement and unless otherwise determined by the Committee in its sole discretion, subject to the continued service of Participant with the Company Group through the applicable vesting date, the Time Vested Restricted Shares granted hereunder shall become vested and nonforfeitable on each of the first [●]<sup>3</sup> anniversaries of the Vesting Commencement Date (as set forth on the Signature Page).

<sup>3</sup> IPO Grants will be subject to 4 year ratable annual vesting.

Annex A - Restricted Stock Agreement

Annex A-1

**<u>Annex B</u>**

**<u>Performance Vested Restricted Shares – Vesting Terms</u>**

[Except as otherwise provided in this Agreement and unless otherwise determined by the Committee in its sole discretion, subject to the continued service of Participant with the Company Group through the applicable vesting date, the Performance Vested Restricted Shares granted hereunder shall become vested and nonforfeitable based on the achievement of certain specified Performance Criteria (which performance measurement period will not exceed [four] years). The Performance Criteria (which may include, but are not limited to, total shareholder return, funds from operations or net operating income) including the relevant levels of performance attainment shall be selected, established and approved by the Committee following consultation with the Chief Executive Officer of the Company, within the one-year period following the Date of Grant.]<sup>4</sup>

<sup>4</sup> For IPO grants

Annex B - Restricted Stock Agreement

Annex B-1

## Exhibit 10.8

**Exhibit 10.8**

EXECUTION VERSION

**AMENDED AND RESTATED LOAN AGREEMENT**

THIS AMENDED AND RESTATED LOAN AGREEMENT (the "<u>Agreement</u>") is made as of the 19<sup>th</sup> day of April 2024, by and between **55 Walkers Brook Drive Owner LLC**, a Delaware limited liability company, with an address c/o JOSS Realty Partners B LLC, 650 Fifth Avenue, Suite 2400, New York, New York 10019 (the "<u>Borrower</u>"), and **Rockland Trust Company** (successor in interest by merger to East Boston Savings Bank), with an address of 100 Front Street, 7<sup>th</sup> Floor, Worcester, Massachusetts 01608 (the "<u>Lender</u>"). This Agreement amends and restates in its entirety, effective as of the date hereof, that certain Loan Agreement dated as of December 20, 2018 (the "<u>Original Agreement</u>"), by and between Lender and Borrower.

In consideration of the mutual covenants contained herein and benefits to be derived herefrom, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Borrower and the Lender hereby agree to the following terms and conditions:

**ARTICLE I.**

**ESTABLISHMENT OF LOAN ARRANGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Certain Definitions</u>. In addition to other terms defined herein, the following terms shall have the following meanings for the purposes of this Agreement:

"<u>Anti-Terrorism Laws</u>" means any laws related to terrorism or money laundering, including Executive Order 13224 and the USA Patriot Act, and any regulations promulgated under either of them.

"<u>Appraisal</u>" the most recent MAI appraisal which has been prepared by an appraiser selected by Lender for the Mortgaged Premises.

"<u>Assignments of Leases and Rents</u>" shall mean the Amended and Restated Assignment of Leases and Rents by Borrower in favor of the Lender as of the date hereof, pursuant to which the Borrower assigns all leases, now existing or hereafter executed, of all or any portion of the Mortgaged Premises, and the rents, issues, profits and accounts thereunder, as the same may be further, amended, restated or otherwise modified from time to time.

"<u>Assignment of Contracts</u>" shall mean, the Amended and Restated Collateral Assignment of Contracts, Licenses and Permits granted by Borrower to the Lender with respect to the Mortgaged Premises dated of even date herewith, pursuant to which the Borrower assigns all right, title and interest in any and all required permits, plans, licenses, approvals, contracts, agreements, guarantees and warranties relating to the Mortgaged Premises, as the same may be further, amended, restated or otherwise modified from time to time.

"<u>Closing Date</u>" shall mean the date hereof.

"<u>Collateral</u>" shall mean all or any portion of the real and personal property of the Borrower, including without limitation, all accounts, inventory, equipment, general intangibles, rent, income, accounts and profit, and proceeds thereof, now or hereafter given to Lender to secure the Loan and the Liabilities all as more particularly described in the Security Documents.

"<u>Excess Cash Flow</u>" shall mean, for any given month, an amount equal to Net Operating Income for such month, less Permitted Distributions actually made in such month which are permitted pursuant to Section ‎5.8 hereof.

"<u>Guaranty</u>" shall mean, that certain Amended and Restated Nonrecourse Carve-Out Guaranty dated of even date herewith, by Guarantor in favor of Lender, as may be further amended, restated or otherwise modified from time to time.

"<u>Guarantor</u>" shall mean, Lawrence Botel, individually.

"<u>Hazardous Materials Indemnity Agreement</u>" shall mean that certain Amended and Restated Hazardous Materials Indemnity Agreement by the Borrower and Guarantor in favor of the Lender with respect to, <u>inter</u> <u>alia</u>, the unlawful presence of oil or hazardous materials in, at or on the Mortgaged Premises, as may be further amended, restated or otherwise modified from time to time.

"<u>Joss Member</u>" shall mean 55 Walkers Brook Drive Member LLC, a Delaware limited liability company.

"<u>Lender Consent Agreement</u>" shall mean that certain Lender Consent Agreement, dated as of December 20, 2018 by and among Lender, Borrower, Venture, the Joss Member and MSC - 55 Walkers Brook HoldCo, LLC, a Delaware limited liability company ("<u>MSC</u>"), as amended by that certain Lender Acknowledgement executed by Lender on or about the date hereof in connection with an amendment to Venture's operating agreement, as the same may be further amended, restated or otherwise modified from time to time.

"<u>Lender's Title Insurance Policy</u>" shall mean the title insurance policy issued by the Title Insurer insuring the validity and lien priority of the Mortgage as endorsed to and including the date hereof with such other endorsements as may be requested and reasonably acceptable to Lender.

"<u>Liabilities</u>" shall have the same meaning given to such term in the Mortgage.

"<u>Loan Documents</u>" shall mean this Agreement, the Notes and all other documents evidencing and securing the Loan, including, without limitation, the Security Documents, the Lender Consent Agreement and each and every other document now existing or hereafter entered into related to the Loan all as the same may hereafter be amended with the consent of Lender (each a "<u>Loan Document</u>").

"<u>Loan</u>" shall mean, collectively, the loan evidenced the Loan A Note in the principal amount of up to Twenty Million Two Hundred Forty Thousand Six Hundred Twenty-Two and 38/100 Dollars ($20, 240,622.38) ("<u>Loan A</u>") and the loan evidenced by the Loan B Note in the principal amount of up to One Million and 00/100 Dollars ($1,000,000.00) ("<u>Loan B</u>").

"<u>Loan A Note</u>" shall mean the Promissory Note dated December 20, 2018 in the original principal amount of $20,962,500 as amended and restated by the Amended and Restated Promissory Note of even date herewith in the original principal amount of $20,240,622.38 made payable by the Borrower to the Lender, and any extensions, renewals, modifications, amendments or replacements thereof.

"<u>Loan B Note</u>" shall mean the Promissory Note of even date herewith in the original principal amount of up to $1,000,000.00 made payable by the Borrower to the Lender, and any extensions, renewals, modifications, amendments or replacements thereof.

"<u>Material Adverse Change</u>" shall mean (a) a material adverse change in, or a material adverse effect on, the operations, business, properties or financial condition of the Borrower; or (b) a material adverse impairment of or effect upon the legality, validity, binding effect or enforceability against Borrower of any Loan Document to which it is a party.

"<u>Maturity Date</u>" shall mean April 19, 2027.

"<u>Mortgage</u>" shall mean the Amended and Restated Mortgage and Security Agreement by Borrower in favor of Lender affecting the Mortgaged Premises of even date herewith given to secure, <u>inter</u> <u>alia</u>, payment of the Notes and each of the Liabilities, and any extensions, renewals, modifications or replacements thereof with respect to the Premises, with the improvements now or hereafter thereon.

"<u>Net Operating Income</u>" shall mean, the income from tenants occupying space and paying rent at the Mortgaged Premises after deduction of all actual operating expenses of the Mortgaged Premises, calculated on a trailing twelve (12) month basis; including, without limitation, if applicable, real estate taxes, insurance, management and all other costs of operations, maintenance and replacements, and excluding from such calculation non-recurring or non-property specific expenses (each of the foregoing to be determined by Lender in its sole reasonable discretion), depreciation, amortization, interest and the costs of capital improvements.

"<u>Notes</u>" shall mean, together, the Loan A Note and the Loan B Note.

"<u>Permitted Distributions</u>" means cash distributions from Borrower to Venture in amounts necessary to pay the Minimum Dividend and MSC Management Fee, as such terms are defined in Venture's operating agreement in effect as of the date hereof, provided that any such distribution is not made following an Event of Default hereunder.

"<u>Permitted Encumbrances</u>" shall mean, collectively, (i) the liens and encumbrances, if any, listed on Lender's Title Insurance Policy issued by the Title Company, (ii) real estate taxes and assessments with respect to the Mortgaged Premises which are not yet due and payable and not then delinquent or the validity of which is being contested by Borrower in good faith by appropriate proceedings, (iii) liens created or contemplated by the Loan Documents, (iv) the Leases, and (v) subsequent encumbrances reasonably approved by Lender in writing and encroachments and any other matters shown on the Survey.

"<u>Person</u>" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited liability company, unincorporated organization, real estate investment trust, government or any agency or political subdivision thereof, or any other form of entity.

"<u>Pledge Agreements</u>" shall mean, together, that certain Amended and Restated Pledge and Security Agreement — Reserve Account, dated of even date herewith, by Borrower in favor of Lender, governing the funding and maintenance of the Reserve Account, as may be amended, restated or otherwise modified from time to time (the "<u>Pledge Agreement – Reserve Account</u>") and that certain Pledge Agreement – Sweep Account, dated of even date herewith, by Borrower in favor of Lender, governing the funding and maintenance of the Sweep Account, as may be amended, restated or otherwise modified from time to time (the "<u>Pledge Agreement – Sweep Account</u>").

"<u>Premises</u>" or "<u>Mortgaged Premises</u>" shall mean the land with the buildings and improvements now or hereafter thereon located at 55 Walkers Brook Drive, Reading, Massachusetts, all as more particularly described in Exhibit A to the Mortgage.

"<u>Prohibited Person</u>" means (a) a Person subject to the provisions of Executive Order 13224; (b) a Person owned or controlled by, or acting for or on behalf of, another Person that is subject to the provisions of Executive Order 13224; (c) a Person with whom Borrower or any lender is prohibited from dealing by any of the Anti-Terrorism Laws; (d) a Person that commits, threatens or conspires to commit or supports "terrorism" as defined in Executive Order 13224; (e) a Person that is named as a "specially designated national and blocked person" on the most current list published by the U.S. Treasury Department's Office of Foreign Assets Control at its official website or at any replacement website or other replacement publication of such list; or (f) a Person who is an Affiliate of any Person described in clauses (a) through (e) above.

"<u>Project</u>" shall mean the Tenant Improvements associated with the TI/LC Approved Leases.

"<u>Reserve Account</u>" shall mean, Borrower's deposit account with Lender that shall be established on the Closing Date pursuant to Section ‎2.6, funded by the Borrower on the Closing Date in the amount of $2,187,870.39, and to be maintained and disbursed all in accordance with the provisions of the Loan Agreement and the Pledge Agreement – Reserve Account.

"<u>Security Documents</u>" shall mean all those documents now or hereafter existing securing the Loan, and any modifications or replacements thereof, including, without limitation, the following documents: the Mortgage, Assignment of Leases and Rents, Assignment of Contracts, Assignment of Post-Closing Agreement, the Pledge Agreements, Hazardous Materials Indemnity Agreement, UCC-1 Financing Statement, the Guaranty and any other assignments to the Lender of any and all construction, architectural and other contracts, including, without limitation, plans and specifications, surveys, agreements with soil engineers, mechanical and structural engineers, architects and other service contractors, licenses, permits (including, without limitation, requisite building permits) and other governmental approvals associated with the Mortgaged Premises, such assignments to secure the Liabilities and to be operative in the event of any Event of Default hereunder.

"<u>Survey</u>" shall mean that certain survey entitled "Office Building-Reading, 55 Walkers Brook Drive, Reading, Middlesex and Massachusetts" dated December 20, 2018, and prepared by Stephen E. Stapinski, RLS, of Merrimack Engineering Services, in form and content reasonably satisfactory to Lender.

"<u>Sweep Account</u>" shall mean Borrower's deposit account with Lender established pursuant to Section ‎5.13, to be established not later than April 19, 2026 and funded monthly on that date and the same day of each month thereafter with Excess Cash Flow, to be maintained and disbursed in accordance with the provisions of the Loan Agreement and the Pledge Agreement – Sweep Account.

"<u>Tenant Improvement Advance</u>" shall mean an advance of funds out of, as applicable, the Reserve Account, the Sweep Account, or proceeds of Loan B, to be applied towards Tenant Improvements and Leasing Commissions for TI/LC Approved Leases in accordance with the Budget.

"<u>Tenant Improvements and Leasing Commissions</u>" shall mean the preparation or improvement of space in the Premises for occupancy by tenants under the TI/LC Approved Leases consistent with plans and specifications and construction contract(s) approved by Lender in its discretion (the "<u>Tenant Improvements</u>"), together with leasing commissions for the TI/LC Approved Leases (the "<u>Leasing Commissions</u>").

"<u>Term</u>" shall mean, the period commencing upon the date hereof and terminating upon the Maturity Date.

"<u>TI/LC Approved Leases</u>" shall mean the following leases (i) AssuredPartners Northeast, LLC, (ii) Nuvia MSO LLC, (iii) Mediterranean Shipping Company (USA), Inc., and (iv) such other additional leases, not yet in effect as of the date hereof, approved by Lender in its sole discretion.

"<u>Title Insurer</u>" shall mean Stewart Title Insurance Company.

"<u>Venture</u>" shall mean 55 Walkers Brook Drive Venture LLC, a Delaware limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Establishment of Loan Arrangement</u>. Subject to the Borrower's compliance with the terms and conditions hereinafter set forth, the Lender hereby agrees to establish the Loan which shall be advanced by the Lender as herein provided and shall be repaid with interest by the Borrower from time to time in accordance with the Note. This Agreement hereby sets forth the terms and conditions governing Lender's obligation to make the Loan and shall serve as the continuing agreement of the Borrower and the Lender with respect to the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Purpose of and Limitation on Loan</u>. The proceeds of Loan A were used by the Borrower for the acquisition of the Mortgaged Premises and for closing costs and fees related to Loan A. The proceeds of Loan B shall be used by the Borrower to finance a portion of costs of Tenant Improvements and Leasing Commissions. Under no circumstance shall Borrower use any Loan proceeds to pay off any loan facility held by any affiliate of Lender so as to cause Lender or such affiliate to violate any provision of 12 CFR Part 223 (Regulation W).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>The Notes</u>. The Loan and the terms of repayment thereof, including the rate of interest, shall be evidenced by the Notes and also may be evidenced by the books and records of the Lender. All amounts at any time payable in respect of this Agreement or the Notes shall be secured by the Collateral given to secure the Loan regardless of whether the total amount thereof exceeds the face amount of the Notes. In the event either of the Notes are lost, destroyed, or mutilated at any time prior to the payment in full of the obligations thereunder, the Borrower, upon receipt of an affidavit of lost, destroyed or mutilated affidavit and a reasonably acceptable indemnity from the respective payee thereof, shall execute upon demand a new note in the exact form and substance of the Note so lost, destroyed or mutilated. The Notes shall not be necessary to establish the indebtedness of the Borrower to the Lender on account of the Loan. The Notes shall have a maturity date of the Maturity Date.

**ARTICLE II.**

**CLOSING CONDITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Loan Closing</u>. Prior to Closing Date, all requirements of Sections ‎2.2 through ‎2.7, inclusive, shall have been satisfied in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Delivery of Instruments</u>. The Borrower will deliver, or cause to be delivered, to the Lender the following documents, duly executed by the parties thereto, as applicable, and in form and substance satisfactory to the Lender on the Closing Date:

&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 Notes and 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;(b) The Mortgage, the Assignment of Leases and Rents, the Assignment of Contracts, the Hazardous Materials Indemnity Agreement, the Pledge Agreements, the Guaranty, the UCC-1 Financing Statement(s) and any other Security 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;(c) Opinions of counsel for the Borrower addressed to the Lender in form and content reasonably acceptable to Lender's counsel regarding (i) due authority and existence of the Borrower and (ii) enforceability of 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;(d) The Lender's Title Insurance Policy in an amount equal to the Loan (containing coverages and exceptions approved by the Lender and its counsel);

&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) The Survey accompanied by a Survey Affidavit of No Change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Evidence of insurance covering liability, fire and other hazards satisfactory to the Lender, as more fully described in the Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The final plans and specifications for the Project (the "<u>Plans and Specifications</u>") with respect to those TI/LC Approved Leases in existence as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The final itemized budget for the Project attached hereto as <u>Exhibit B</u> (the "<u>Budget</u>") together with a schedule of disbursements of Budget costs (the "<u>Disbursement Schedule</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;(i) All permits, licenses and approvals from all governmental authorities having jurisdiction over the Project or the Premises to the extent required to complete the Project (collectively, the "<u>Permits and Approvals</u>") with respect to those TI/LC Approved Leases in existence as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) AIA construction contracts for the Tenant Improvements for each TI/LC Approved Lease in existence as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) An updated rent roll for the Mortgaged Premises together with true and correct copies of all leases affecting the Mortgaged Premises; 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;(l) Such other agreements, certificates, opinions or instruments as the Lender reasonably may request to satisfy the terms and conditions of the Loan Documents, to effectuate the provisions of this Agreement, and to establish, protect or perfect the interests of the Lender in any Collateral granted to secure the payment and performance of the Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>No Event of Default</u>. No event shall have occurred, or failed to occur, which occurrence or failure is, or which, with the passage of time or the giving of notice (or both), would constitute an Event of Default (as defined herein), whether or not the Lender has exercised any of its rights upon such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Compliance</u>. The Borrower shall have satisfied in all material respects the various terms and conditions of the Lender, performance of which prior to the date hereof is contemplated thereby. To the extent that any requirements of the Lender are not by their terms required to be satisfied on or before the date hereof or to the extent that the performance of any provision thereof is waived as a condition precedent to the consummation of the Loan, all such provisions shall be incorporated herein by reference as if set forth in full in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>No Adverse Change</u>. No Material Adverse Change shall have occurred, from the date the Borrower applied to the Lender for the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Reserve Account</u>. On the Closing Date, Borrower shall establish the Reserve Account and fund the Reserve Account in the amount of $2,187,870.39 in accordance with the terms and conditions of the Pledge Agreement. All amounts in the Reserve Account shall bear interest at the Lender's standard rates for deposit accounts from time to time and shall stand as additional collateral for repayment of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Commitment Fees</u>. Upon execution hereof, the Borrower shall pay the Lender a commitment fee of $53,254.00 together with all such other fees and expenses identified in a loan accounting and disbursement authorization agreement dated as of the date hereof.

**ARTICLE III.**

**DISBURSEMENT PROCEDURES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Loan Proceeds</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;(a) The proceeds of Loan A were advanced on December 20, 2018 pursuant to the terms of the Original 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 proceeds of Loan B will be advanced from time to time by Lender following satisfaction of all conditions of the Initial Loan B Tenant Improvement Advance following requisition pursuant to the conditions for Tenant Improvement Advances.

&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) Under no circumstance shall Borrower use any Loan proceeds to pay off any loan facility held by any affiliate of Lender so as to cause Lender or such affiliate to violate any provision of 12 CFR Part 223 (Regulation W).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Disbursement of Tenant Improvement Advances</u>. As a condition to the Borrower's right to receive Tenant Improvement Advances out of the funds held in the Reserve Account, the funds held in the Sweep Account or the proceeds of Loan B in connection with one or more TI/LC Approved Leases, the Borrower shall have submitted to the Lender, and the Lender shall have approved, one or more Requests for Advances (as hereinafter defined) pursuant to Section ‎3.4, together with evidence reasonably satisfactory to Lender and its construction consultant 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) that the portion of the Tenant Improvement Advance to be allocated to Tenant Improvements completed as of the date of submission of the applicable Request for Advance has been completed in a good and workmanlike manner and without material defects with all materials and fixtures furnished as of the date of such submission having been installed, and all of such work having been conducted, in each case, in material compliance with all applicable legal requirements, along with invoices in reasonable detail showing the actual cost of such completed work and receipt of any required lien waivers,

&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) that the portion of the Tenant Improvement Advance to be allocated to Leasing Commissions has been paid or will be paid using the funds of such Tenant Improvement Advance in connection with a TI/LC Approved Lease; it being acknowledged and agreed that on or prior to Closing Date the Borrower funded certain Tenant Improvements and Leasing Commissions for TI/LC Approved Leases (collectively, the "<u>Pre-Closing TI/LC Funded Amount</u>"), and that upon Borrower's submission of a Request for Advance out of the Reserve Account with respect to the Pre-Closing TI/LC Funded Amount promptly following the Closing Date the Lender shall cause a Tenant Improvement Advance in an amount equal to the sum of such Closing Costs and Pre-Closing TI/LC Funded Amount to Borrower subject to the requisition process described 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;(c) that no default or event of default has occurred under any of the TI/LC Approved Leases,

&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) there are no new matters of record since the date of the Lender's Title Insurance Policy and the entire amount of the Loan advanced to date is insured pursuant thereto, evidenced by a certified title report from the Title Insurer and/or an endorsement to the Lender's Title Insurance Policy, to Lender's reasonable satisfaction,

&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) during periods of construction, evidence that the Borrower carries and maintains, or the general contractor carries and maintains, a full builder's all risk insurance policy coverage, completed value non-reporting form, affording protection against such risks and with such insurance companies as the Lender may require, such builder's risk insurance to be payable in case of loss to Lender as mortgagee (as its interest may appear) and be maintained in such amounts as to equal the full replacement value of the Premises,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all documents delivered pursuant to Section ‎2.2 hereof or in relation to other Requests for Advances remain in full force and effect and not amended or modified except as otherwise approved in writing by Lender, 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;(g) the Request for Advance is consistent with the Plans and Specifications, the Budget, the Disbursement Schedule, Permits and Approvals, and all agreements with the contractor(s) and architect and that the funds available in the Reserve Account and the unadvanced funds of Loan B remain sufficient to complete the Project pursuant to the Budget. In the event the funds available in the Reserve Account and the unadvanced funds of Loan B at and any time or from time to time, in Lender's reasonable determination, not sufficient to complete the Project pursuant to the Budget, Borrower shall deposit, or cause to be deposited, into the Reserve Account a cash equity contribution sufficient to cover any such deficiency.

Lender may deduct from all Requests for Advances amounts of retainage in accordance with the construction contract(s), inspection fees, title fees or other costs and expenses incurred by Lender in the review of the Request for Advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Initial Loan B Tenant Improvement Advance</u>. Prior to the first advance of Loan B proceeds for application to Tenant Improvements and Leasing Commissions (the "<u>Initial Loan B Tenant Improvement Advance</u>") Borrower shall have delivered, or cause to be delivered, the following documents, duly executed by the parties thereto, as applicable, and in form and substance reasonably satisfactory to the Lender, and complied with 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;(a) Tenant estoppel certificates and subordination, non-disturbance and attornment agreements, each in form and content reasonably acceptable to Lender, from the tenants of each of the TI/LC Approved Leases and from Weston & Sampson Engineers, Inc. and all such leases are in full force and effect without the occurrence of default or event of default,

&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) All Permits and Approvals for any portion of the Project relating to TI/LC Approved Leases approved after the Closing Date;

&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) AIA construction contracts for the Tenant Improvements for each TI/LC Approved Lease approved after the Closing Date;

&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 Plans and Specifications for any portion of the Project relating to TI/LC Approved Leases approved after the Closing Date; 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;(e) The Reserve Account shall have been fully funded and fully depleted for application of funds to Tenant Improvements and Leasing Commissions, and the amount of Loan B available for draw shall be sufficient to pay for the balance of the Budget not yet paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Requests for Tenant Improvement Advances</u>. Subject to satisfaction of the terms and conditions of Section ‎3.2, Lender has agreed to disburse to Borrower the funds held in the Reserve Account, the funds held in the Sweep Account or the proceeds of Loan B in connection with each request by Borrower for the disbursement thereof. Borrower shall submit to Lender a notice in substantially the form attached hereto as Exhibit A (together with any required supporting documentation, a "<u>Request for Advance</u>"), which shall be submitted not less than ten (10) business days prior to the date on which Borrower desires disbursement of such funds specifying the aggregate amount of funds to be advanced. Each Request for Advance shall be certified by Borrower and Borrower's submission of a Request for Advance shall constitute Borrower's representation and warranty to Lender that, to the best of Borrower's knowledge, (a) each of the representations and warranties of Borrower and Guarantor contained in this Agreement and the other Loan Documents are true in all material respects as of the date of submission (except as otherwise set forth in the Request for Advance), and (b) as of the date of submission of the Request for Advance, no Event of Default has occurred nor has there occurred any event which, with the passage of time, the giving of notice, or both, would constitute an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Advances as Indebtedness</u>. At the time of any advance made under the Notes or under this Agreement, the Borrower shall immediately become indebted to the Lender for the full amount of such advance as of the date of such advance and such advance shall be deemed a Liability for purposes hereof. All such Liabilities shall be repayable, with interest at the Interest Rate (as defined in the Notes). No payment under this Agreement shall be conclusive evidence of the performance of its terms by the Borrower in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Discretionary Advances</u>. Upon the occurrence of any Event of Default, the Lender may make any payment required to be made hereunder by the Borrower without thereby waiving the right to demand payment of the unpaid principal of and all accrued interest on the Notes, without becoming liable to make any other or further payment, and without affecting the validity of the Notes, the Mortgage or other Loan Documents or the security for the Loan. All sums so expended shall be secured by the Mortgage and all other Security Documents which secure the Note, regardless of whether the total amount thereof, together with all other advances made by the Lender, exceeds the face amount of the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Lender's Obligation to Advance</u>. Without limiting any of the foregoing or any other provisions hereof, the Borrower hereby further agrees that the Lender shall not be required to advance any sums under this Agreement (whether from loan proceeds, out of funds held in the Reserve Account or the Sweep Account, or otherwise) if: (i) at any time the Borrower shall fail to discharge any encumbrances of record which are not Permitted Encumbrances as required by the Lender (or bond over to the satisfaction of the Lender); (ii) at any time the Borrower shall fail to pay sums due or claimed to be due for labor or material furnished (except to the extent advances are to be used to make such payments) or if at any time there shall be any recorded statements of mechanics' or materialmen's liens on the Premises, or any part thereof unless discharged or is being contested in good faith by Borrower and for which Borrower has set aside adequate reserves held by Lender and pledged as additional Collateral (except to the extent advances are to be used to make such payments); (iii) if any material covenants or restrictions on the Premises shall be violated; (iv) if the applicable building or zoning laws shall not be complied; (v) if any attachment shall be made by trustee process or otherwise of the Borrower's (or its affiliates) or Guarantor's funds in the hands of the Lender; (vi) if any materials shall be used in or for the Tenant Improvements which shall be purchased on conditional sale or lease, whether the same be recorded; (vii) if there shall be a substantial, partial, or total loss or damage by fire or other casualty to any portion of the Mortgaged Premises and the insurance proceeds plus the unfunded portion of the Loan are not sufficient to complete the Tenant Improvements and Borrower fails to deposit the shortfall, if any, with Lender; (viii) if an Event of Default has occurred under any Loan Document, (ix) if there are any legal actions or other legal or administrative proceedings pending or threatened in writing which could materially adversely affect Borrower, the Premises; or (x) if representations or warranties made by Borrower prior to any advance are untrue or incorrect in any material respect as reasonably determined by the Lender. The making of any Tenant Improvement Advance, or any part thereof shall not be deemed to be approval or acceptance by Lender of the work theretofore done or of materials or fixtures theretofore furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Condition of Premises</u>. The Lender shall have a reasonable time after its receipt of any Request for Advance (not to exceed ten (10) days) to cause the condition of the Tenant Improvements to be examined by the Lender or its third party designee. The Lender and any of its third party designees shall have full access to the Tenant Improvements, and all reports and analyses related thereto, subject to the rights of tenants under their leases and during normal business hours. Borrower shall have the right to accompany Lender or its third party designee during Lender's access to the Tenant Improvements. Each such inspection shall be subject to a $400 fee together with any costs or expenses incurred by Lender in relation to such inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Other Advances</u>. In addition to the items requisitioned by the Borrower, the Lender at any time and from time to time shall have the option to make payments from the Loan or from funds held in the Reserve Account or the Sweep Account for the following purposes:

&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) To pay, as provided in this Agreement, any reasonable expenses incurred in connection with the examination and inspection and periodic updates of the title pursuant to the terms hereof and the condition of the Premises and any survey, Appraisal or inspection fees and reasonable fees and disbursements of attorneys and engineers, whereupon the Borrower will be given notice of such advance;

&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) To pay any sums not paid when due for taxes, water charges and other municipal charges and assessments and for insurance premiums in respect of the Mortgaged Premises;

&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) Subject to the Borrower's right to contest as set forth elsewhere herein, to discharge or release attachments and other involuntary encumbrances on the Premises not bonded against, or, if not paid when due or if in default, to pay, in whole or in part, any other voluntary liens on the Premises and materials, fixtures or other items stored or to be stored thereon, or any personal property used or to be used thereon or in connection with the operation 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;(d) To pay any and all reasonable expenses incurred by the Lender in connection with the enforcement or exercise of the rights and remedies of the Lender hereunder or under any other Loan Document, including, without limitation, the expenses provided for in Section ‎7.6 hereof;

&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) To pay interest on the Notes as such interest becomes due and payable (to the extent not paid when due beyond any applicable grace periods by the Borrower) without thereby waiving any Event of Default on account 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;(f) To pay any fees payable to or by the Lender or to or in connection with the Loans or any Liability of the Borrower to the Lender, in each case when due, under the provisions of any Loan Document.

**ARTICLE IV.**

**BORROWER'S REPRESENTATIONS AND WARRANTIES**

To induce the Lender to enter into this Agreement and to advance the proceeds of the Loan, in addition to the covenants, warranties and representations made in the Mortgage and elsewhere in this Agreement, the Borrower hereby further represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Legal Existence</u>. The Borrower is a limited liability company duly organized and validly existing under the laws of the State of Delaware and is qualified to do business in the Commonwealth of Massachusetts. The Borrower shall maintain its existence as a limited liability company in good standing with the State of Delaware. The Borrower has adequate power and authority and full legal right to own, sell or to hold under lease its properties and to carry on the business in which it is presently engaged and will be engaged upon consummation of the Loan, and to the extent required by applicable law and as required in order to own and operate the Mortgaged Premises and perform all of its obligations in respect of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Legal Authority</u>. The Borrower has adequate power and authority and has full legal right to enter into each of the Loan Documents to which it is a party, to perform, observe and comply with all of its agreements and obligations under each of such documents, and to make all of the borrowings contemplated by this Agreement. The execution and delivery by the Borrower of each of the Loan Documents to which it is a party, the performance by the Borrower of each and all of its agreements and obligations under each of such documents, and the making by the Borrower of all of the borrowings contemplated by this Agreement, have been duly authorized by all necessary action on the part of the Borrower and do not and will not (i) contravene any provision of its constituent documents (each as from time to time in effect), (ii) conflict with, or result in a breach of any material term, condition or provision of, or constitute a default under or result in the creation of any mortgage, lien, pledge, charge, security interest or other encumbrance upon any of the property of the Borrower under, any agreement, trust deed, indenture, mortgage or other instrument to which it is a party or by which it may be bound or affected (other than mortgages and liens in favor of the Lender), (iii) violate or contravene any provision of any law, regulation, order, ruling or interpretation thereunder or any decree, order or judgment of any court or governmental or regulatory authority, bureau, agency or official (all as from time to time in effect and applicable to the Borrower), (iv) to Borrower's knowledge, require any waivers, consents or approvals by any of the creditors of the Borrower which have not been obtained in writing, or (v) require any approval, consent, order, authorization or license by, or giving notice to, or taking any other action with respect to, any governmental or regulatory authority or agency under any provision of any applicable law, except those actions which have been taken or will be taken prior to the date of the first advance or in connection with future advances under the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Binding Effect</u>. The Borrower has duly executed and delivered each of the Loan Documents to which it is a party and each such document is in full force and effect. The agreements and obligations of the Borrower contained in each of the Loan Documents to which it is a party constitute legal, valid and binding obligations of the Borrower enforceable against it in accordance with their respective terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws, relating to or affecting generally the enforcement of creditors' rights and except to the extent that the availability of the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Title to Property</u>. The Borrower has good and clear, record, marketable and insurable title to the Mortgaged Premises, subject only to the Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Solvency</u>. Borrower is solvent, is able to pay its debts as they become due and has capital sufficient to carry on its business and all businesses in which it is about to engage. Borrower will not be rendered insolvent by the execution and delivery of this Agreement or any of the other Loan Documents or by completion of the transactions contemplated hereunder or thereunder, and Borrower does not intend to hinder, delay or defraud any Person or to incur indebtedness beyond its ability to repay such indebtedness in accordance with the terms thereof. Borrower is not considering the filing of a petition by it under any state or federal bankruptcy or insolvency laws, or the liquidation of all or a major portion of its property; and Borrower has received no notice of any Person contemplating the filing of any such petition against it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Insurance</u>. Borrower has obtained the insurance coverage required pursuant to the Mortgage and has paid all premiums due as of the date hereof with respect to such insurance coverage. Borrower has not received any notices from any insurer or its agents requiring the performance of any work with respect to the Mortgaged Premises or threatening to cancel any policy of insurance, and the Mortgaged Premises complies, and will comply, with the requirements of all insurance carriers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Loans</u>. Except for the Loan and any other indebtedness owed to Lender, Borrower is not obligated on any loans or other indebtedness for borrowed money.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Litigation and Proceedings</u>. No judgments are outstanding against Borrower nor is there now pending or, threatened (in writing), any material litigation, contested claim, or federal, state or municipal governmental proceeding by or against Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Compliance with Laws and Regulations</u>. The execution and delivery by Borrower of this Agreement and all of the other Loan Documents and the performance of Borrower's obligations hereunder and thereunder are not in contravention of any Legal Requirements. Borrower has obtained and shall maintain, through the date hereof, all licenses, authorizations, approvals and permits necessary in connection with the operation of the Mortgaged Premises. Borrower is in compliance with all Laws which the failure to comply with could reasonably be expected to result in a Material Adverse Change. To Borrower's knowledge, the Mortgaged Premises is in material compliance with all applicable Legal Requirements (as defined in the Hazardous Materials Indemnity Agreement), ordinances, regulations, licenses, approvals or other permits required by any governmental authority having jurisdiction over the Mortgaged Premises or the use thereof and Borrower has received no notice of any outstanding notices of any uncorrected material violations of any such Legal Requirements, ordinances, regulations, licenses, approvals or permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Performance of Liabilities</u>. The Borrower shall pay when due, and promptly, punctually, and faithfully perform each and all of the Liabilities, and the obligations, covenants and conditions to be paid, performed or observed by the Borrower under this Agreement and under the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <u>Leases</u>. As of the date of this Agreement, there are no written Leases in effect at the Mortgaged Premises except as set forth on <u>Schedule 4.11</u> (collectively, together with such other leases with bona fide third party Tenants as may be entered into, reviewed and approved by Lender from time to time, only to the extent such approval is required in accordance with the terms of this Agreement and the other Loan Documents, the "<u>Approved Leases</u>"). Borrower represents that it has provided Lender with complete copies of all Approved Leases in effect as of the date of this Agreement (including all exhibits and schedules thereto and amendments thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 <u>Anti</u>**<u>-</u>**<u>Terrorism Laws</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;(a) None of Borrower, Guarantor or any other guarantor of any obligation under any or all of the Loan Documents, or their respective constituent owners or affiliates are or will be in violation of any Anti**-**Terrorism Law.

&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) None of Borrower, Guarantor or any other guarantor of any obligation under any or all of the Loan Documents, or any of their respective constituent owners or affiliates is or will be a Prohibited Person.

&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) None of Borrower, Guarantor or any other guarantor of any obligation under any or all of the Loan Documents, or any of their respective affiliates or any of Borrower's constituent owners is or will (i) conduct any business or engage in any transaction or dealing with any Prohibited Person, including the making or receiving any contribution of funds, goods or services to or for the benefit of any Prohibited Person; (ii) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224; or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose or intent of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti**-**Terrorism Law.

&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) Borrower covenants and agrees to deliver to Lender any certification or other evidence reasonably requested from time to time by Lender confirming Borrower's compliance with this Section.

&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) Borrower has established reasonable and appropriate policies and procedures designed to prevent and detect money laundering, including processes to meet all applicable anti**-**money laundering requirements of the USA Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Borrower has identified and will continue to identify, the Persons with which it does business, and will retain all documentation necessary to identify those Persons and their sources of funds.

Borrower will promptly notify Lender in the event that Borrower has reason to believe that any of the representations and warranties in paragraphs ‎(a) through ‎(f) above are no longer correct.

The representations, covenants, and warranties herein are in addition to others made by the Borrower to or with the Lender in any other Loan Documents.

**ARTICLE V.**

**AFFIRMATIVE COVENANTS**

Borrower covenants and agrees that so long as any Liabilities remain outstanding, unless otherwise consented to in writing by Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Performance of Liabilities</u>. The Borrower shall pay when due, and promptly, punctually, and faithfully perform each and all of the Liabilities, and the obligations, covenants and conditions to be paid, performed or observed by the Borrower under this Agreement and under all other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Compliance with Laws</u>. The Borrower shall use commercially reasonable efforts to comply with all applicable federal, local and state zoning and building laws and regulations, with other applicable rules and requirements of any state, federal, or municipal governmental agency or board of fire underwriters, and with all agreements, easements and restrictions of record, if any, affecting the management, operation, construction on, and use of the Mortgaged Premises and shall pay all taxes, assessments, governmental charges or levies, or claims for labor, supplies, rent and other obligations made against it which, if unpaid, could become a lien or charge against the Borrower or the Mortgaged Premises, except to the extent same are being contested by Borrower in good faith by appropriate proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Maintain Records</u>. The Borrower shall keep and maintain adequate books of account and other documents and records concerning the Mortgaged Premises and the receipt and disbursement of proceeds of the Loan, and shall permit the Lender, upon request, at any time or times during normal business hours of the Borrower, upon at least five (5) day advance notice, to have access to, and to inspect, examine, copy and audit, and shall permit the Lender, at any time or times during usual business hours upon advance notice, subject to rights of tenants under a lease, to enter upon the Mortgaged Premises for the purposes of inspecting the same; and shall furnish the Lender with such other information as the Lender may reasonably request for the purposes of determining compliance by the Borrower with this Agreement, any other Loan Documents and any or all agreements, easements and restrictions of record, if any. The Lender's rights hereunder may be exercised without advance notice and at the cost and expense of Borrower after an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>No Change of Ownership</u>. The Borrower will not cause, permit, or suffer any change in any legal, membership, or beneficial interest ("<u>Ownership Interests</u>") in the Borrower or Borrower's manager without the prior written consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed. Notwithstanding anything herein to the contrary, so long as no Event of Default has occurred, each of the following shall be permitted, without Lender's prior written consent, but with prior notice: (i) Ownership Interests in Borrower or its sole member, Venture, may be assigned or transferred, provided the Joss Member continues to indirectly control the Borrower as the managing member of Venture, (ii) less than twenty-five percent (25%) of the direct or indirect Ownership Interests in Borrower or Venture may be assigned or transferred, and/or (iii) the Joss Member may be removed as managing member of Venture resulting in a change in control of Borrower, provided that such removal is pursuant to the terms of both the operating agreement of the Venture and the Lender Consent Agreement. Upon any change in Borrower's membership or management, Borrower shall submit to Lender a new Beneficial Ownership Certificate on the Lender's form, which includes any updates or changes to the current form on file with the Lender. The Beneficial Ownership Certificate form submitted by the Borrower must be an accurate representation as of such date of all individuals who own at least twenty-five percent (25%) of the ownership interests in the Borrower, and the name of the individual who is then responsible for controlling, managing or directing the Borrower. In addition, Borrower shall provide any other information reasonably required by Lender to comply with "know your customer" or other applicable guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>No Property Transfer</u>. Except for the Permitted Encumbrances or as provided in Section ‎5.4, the Borrower shall not (directly or indirectly, whether voluntarily or involuntarily, by operation of law or otherwise) sell, grant, transfer, assign, alienate, pledge, lease, mortgage or encumber the Premises or the Collateral, or any portion thereof, without the prior written consent of Lender, not be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Conduct of Business</u>. Borrower shall maintain its limited liability company existence, and Borrower shall maintain in full force and effect all licenses, permits, authorizations, bonds, franchises, leases, patents, contracts, and other rights necessary to the profitable conduct of its business, continue in, its present business in the ordinary course and in accordance with all applicable laws, except for such laws the violation of which would not, in the aggregate, result in a Material Adverse Change. Borrower shall not permit to occur any default under any mortgage or other lien that encumbers any real property leased or owned by it. Borrower shall at all times maintain, preserve and protect all trade names, trademarks, copyrights and patents and all other property used or useful in the conduct of its business and keep all tangible property in good repair, working order and condition, ordinary wear and tear excepted. Borrower shall pay and discharge all of Borrower's obligations and liabilities as and when the same may become due and payable, excepting such obligations and liabilities that are contested in good faith and by appropriate proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Leases</u>. The Borrower shall not enter into any written lease for any space over 12,500 square feet ("<u>Major Leases</u>") without Lender's written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Therefore, any lease, including any renewal, termination or amendment thereof, as to tenants occupying under 12,500 square feet shall automatically be deemed an Approved Lease. Except for a default (beyond applicable notice and cure periods) of the tenant thereunder, no Major Lease shall be terminated or amended to reduce rentals or the lease term without Lender's written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Notwithstanding anything herein to the contrary, in the event that Lender fails to respond to a Borrower request for consent to a Major Lease within ten (10) business days of receipt of such request, Lender shall be deemed to have consented to such Major Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Distributions</u>. Except as may otherwise be provided in the Lender Consent Agreement and except for Permitted Distributions, the Borrower may not pay dividends or distributions either in cash or kind on any class of its equity except upon written consent from Lender; provided, however that, Lender's consent shall not be required if there is then no Event of Default and such dividend or distribution will not cause an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Property Maintenance</u>. The Borrower shall keep all properties, including the Mortgage Premises, useful or necessary to Borrower's business in good repair and condition, and from time to time make necessary repairs, renewals and replacements so that such properties will be fully and efficiently preserved and maintained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Insurance</u>. Borrower shall maintain the insurance coverage required pursuant to the Mortgage and pay all premiums when due with respect to such insurance coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Other Actions</u>. Within ten (10) days following the occurrence of an Event of Default, the Borrower agrees to provide to the Lender a written statement of the actions which the Borrower has taken or intends to take to cure such default. The Borrower shall not indirectly do or cause to be done any act which, if done directly by the Borrower, would breach any covenant contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <u>Financial Information</u>. The Borrower shall furnish or cause to be furnished to the Lender, the following:

&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) Due on or before March 31<sup>st</sup> of each year, in a form and substance reasonably satisfactory to Lender, management prepared balance sheet and income and expense statement for Borrower for the prior calendar year;

&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) Borrower shall furnish, within the later of (i) October 15<sup>th</sup> of each year or (ii) fifteen (15) days after filing, but not later than fifteen (15) days after the last day such return may be filed pursuant to lawful extension, copies of Borrower's signed federal tax return and all schedules for the preceding fiscal year (as filed), which must be prepared by a certified public accountant reasonably acceptable to the Lender. Lender hereby approves Anchin, Block & Anchin LLP as an accountant hereunder;

&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) Borrower shall cause Guarantor to furnish to Lender, on or before March 31<sup>st</sup> of each year, a personal financial statement, with a statement of real estate operations in which Guarantor is a manager, owner, director, principal or fiduciary, and signed federal tax return, including all schedules thereto for the preceding fiscal year (as filed), in each case prepared by a certified public accountant reasonably acceptable to the Lender;

&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) Borrower shall furnish, not later than March 31 of each year, a certified rent roll for the Mortgaged Premises, identifying the respective tenants, monthly rent, and other payments required of the respective tenants, the expiration date of the leases, and such other information as Lender may require; 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;(e) Such other information concerning the Borrower or Guarantor as the Lender may reasonably request from time to time.

The failure of the Borrower or Guarantor to timely provide the required materials set forth above shall, after delivery of notice by Lender thereof and Borrower or Guarantor's failure to provide within fifteen (15) days of receipt of such notice, at the election of Lender, constitute an Event of Default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <u>Establishment and Funding of Sweep Account</u>. On or before April 19, 2026, Borrower shall establish with lender a deposit account (the "<u>Sweep Account</u>") to be maintained and disbursed in accordance with the provisions of the Loan Agreement and the Pledge Agreement – Sweep Account. Commencing on April 19, 2026 and on the same day each month thereafter until the Maturity Date, Borrower shall deposit into the Sweep Account all Excess Cash Flow for such month and such funds shall be held in accordance with the Pledge Agreement – Sweep Account and disbursed at Lender's discretion pursuant to the terms hereof and thereof.

**ARTICLE VI.**

**NEGATIVE COVENANTS**

Borrower covenants and agrees that so long as any Liabilities remain outstanding, unless otherwise consented to in writing by Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>No Additional Debt</u>. Borrower will not create, incur, assume or permit to exist any Indebtedness other than this Loan and any Indebtedness incurred in the ordinary course of business. "<u>Indebtedness</u>" means the following, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several: (i) all obligations for borrowed money (including recourse and other obligations to repurchase accounts or chattel paper under factoring, receivables purchase or similar financing arrangement or for the deferred purchase price of property or services); (ii) all obligations in respect of surety bonds and letters of credit; (iii) all obligations evidenced by notes, bonds, debentures or other similar instruments, (iv) all capital lease obligations; (v) all obligations or liabilities of others secured by a lien on any asset of Borrower, whether or not such obligation or liability is assumed; (vi) all obligations to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary course of business and repayable in accordance with customary trade practices); and (vii) all guaranties of the obligations of another Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Liens</u>. The Borrower shall not permit or suffer the recording, or other establishment of (i) any notice of contract or mechanic's lien relating to the Mortgaged Premises; (ii) any federal, state or municipal tax lien, other than for amounts not yet due and payable; or (iii) any other security interest, lien, attachment or encumbrance on the Mortgaged Premises or other Collateral, the membership interests of Borrower, any materials, fixtures or other items stored or to be stored thereon or therein, or any personal property used or to be used in connection with the operation thereof, other than the Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Consolidation, Mergers or Acquisitions</u>. Except as otherwise expressly permitted hereunder or under the Lender Consent Agreement, Borrower shall not cause, without Lender's prior written consent, permit, participate in or suffer to occur, any of the following: (a) merge with or consolidate with any other Person; (b) make any substantial change in the nature of Borrower's business as conducted as of date hereof; (c) make any material change in the existing executive management personnel of Borrower without Lender's written consent, such consent not to be unreasonably withheld, conditioned or delayed; (d) liquidate or dissolve Borrower's business; (e) become a member or partner in a joint venture, partnership or limited liability company; (f) acquire all or substantially all of the assets of any other Person (or any division, business unit or line of business of any other entity), or acquire any assets outside the ordinary course of Borrower's business and as permitted under Section ‎5.6; (g) sell, lease, transfer or otherwise dispose of any of Borrower's assets, except for in the ordinary course of its business, (h) create or acquire any subsidiary; (i) enter into any other transaction outside the ordinary course of business (including any sale and leaseback transaction); (j) liquidate, wind up, or dissolve itself or suspend or cease operation of a substantial portion of its business, or (k) issue or sell or enter into any agreement or arrangement for the issuance or sale of any of Borrower's membership interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Affiliate Transactions</u>. Except for that certain Property Management Agreement of even date herewith, which agreement is hereby approved by Lender, Borrower will not directly or indirectly enter into, or permit to exist, any material transaction with any affiliate of Borrower, except for (a) transactions that are in the ordinary course of Borrower's business, and are on fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm's length transaction with a non-affiliated Person, and (b) so long as it has been approved by Borrower's members and/or managers in accordance with applicable law, the payment of reasonable compensation, severance, or employee benefit arrangements to employees, officers, and directors of Borrower in the ordinary course of business and consistent with industry practice.

**ARTICLE VII.**

**EVENTS OF DEFAULT: RIGHTS UPON DEFAULT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Event of Default</u>. The occurrence of any of the following, beyond any applicable grace or cure period, shall constitute an event of default hereunder (herein, the "<u>Event(s) of Default</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;(a) any warranty, representation or statement made or furnished to the Lender by the Borrower in connection with this Agreement or the indebtedness evidenced by the Notes, proving to have been knowingly incorrect, knowingly misleading or false in any material respect when made or furnished;

&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) failure by the Borrower to make any payment due pursuant to the Notes or the other Loan Documents, within ten (10) days of the date upon which said payment is due;

&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 non**-**monetary default or Event of Default continuing after the expiration of a thirty (30) day grace period under any Loan Document (unless another grace or cure period is provided for therein); provided, however, that if such non-monetary default is susceptible to cure but cannot reasonably be cured within such 30-day period, and Borrower shall have commenced to cure such default within such 30-day period and thereafter diligently proceeds to cure the same, such 30-day period shall be extended for an additional period of time as is reasonably necessary for Borrower to cure such default, provided that such time period shall not to exceed sixty (60) days in the aggregate;

&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) death or legal incapacity of an individual Guarantor; <u>provided</u>, that Borrower may cure such default by providing a substitute or replacement for such individual Guarantor approved by Lender in its sole discretion within sixty (60) days after the occurrence of any such default;

&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) dissolution, merger, consolidation, termination of existence, suspension or discontinuance of business, insolvency, business failure or inability to pay debts as they mature of or by the Borrower or any Guarantor or endorser of the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) issuance of any injunction or restraining order with respect to any material aspect of the business of the Borrower, or levy on or attachment of any funds or other property, real or personal, of the Borrower, if, such injunction, restraining order, levy or attachment would reasonably be expected to have a Material Adverse Change and in each case, the same is not dismissed, discharged, released, satisfied or vacated within a period of sixty (60) days from the date of such occurrence, or if same is not bonded over or cash collateral is not posted for said obligation within sixty (60) days 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;(g) entry of any final judgment or order against the Borrower for the payment of money, and is not satisfied or enforcement proceedings are not stayed within thirty (30) days, or if, within thirty (30) days after the expiration of any such stay, the judgment or order is not bonded, dismissed, discharged, or satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) commencement by the Borrower of a voluntary proceeding, or an involuntary proceeding against the Borrower, which is not dismissed within sixty (60) days of the date of filing thereof, seeking relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law, seeking appointment of a receiver, trustee, custodian or similar official, for the undersigned or any property or assets of the undersigned;

&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 event described in items ‎(f), ‎(g), or ‎(h) above, with respect to any guarantor of the Notes or of the indebtedness evidenced hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) termination, revocation or discontinuance of the Guaranty, other than with the consent of the Lender except following satisfaction 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;(k) the sale, transfer, assignment, or other disposition of any of the legal or beneficial ownership interests of the Borrower except as permitted under Section ‎5.4 or Section ‎5.5 or reasonably approved by Lender in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the sale, transfer, assignment, encumbrance, pledge, junior lien, mortgage or other disposition or grant of any interest in all or any portion of the Collateral, except for the Permitted Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) failure by the Borrower to maintain property and liability insurance coverages as required by the provisions of the Mortgage, for which there shall be no cure period, and failure by Borrower to maintain all other insurance as required by the provisions of the Mortgage which is not cured within ten (10) days of notice from Lender; 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;(n) the occurrence beyond any applicable cure periods of any default or event of default in connection with any other obligations of the Borrower or of any Guarantor to the Lender or under any document executed in connection therewith.

Further, the occurrence of any Event of Default shall also constitute, without further notice or demand, an Event of Default under all other Loan Documents or instruments and agreements between the Lender and the Borrower made or given in connection with the Loan or the Mortgaged Premises, whether now existing or hereafter arising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Suspension of Disbursement Provisions</u>. Upon the occurrence of an Event of Default under Section ‎7.1 hereof, the Lender may, at its option, refuse to disburse any undisbursed proceeds of funds held in the Reserve Account, the Sweep Account or any funds available for advance under the Loan B Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Rights upon Default</u>. Upon the occurrence of any of the aforesaid Events of Default, the Lender, may (i) declare all outstanding indebtedness with respect to the Loan and/or any and all Liabilities to be immediately due and payable, without demand or notice, (ii) exercise the rights of the Lender upon default hereunder, and (iii) exercise the rights of the Lender upon default under any other Loan Documents, including, without limitation, the Notes and the Mortgage. In addition to the foregoing, and not in limitation thereof, whether or not the Lender institutes foreclosure proceedings pursuant to the Mortgage, the Lender shall be entitled to recover all reasonable costs and expenses, including without limitation, reasonable attorneys' fees and disbursements, incurred by the Lender in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Right to Take Possession</u>. In addition to all other rights and remedies available to the Lender hereunder and under applicable law, the Lender may, at any time or times after the occurrence of any Event of Default, take possession of the Mortgaged Premises and all materials, fixtures, tools, appliances and other items thereon or therein belonging to the Borrower, which may be occupied or used by the Lender without payment of any rental or fee therefor. The Borrower will pay to the Lender, within thirty (30) days of demand, all reasonable sums expended by the Lender for such occupation regardless of whether the total amount of the sums so expended, together with all other advances made by the Lender hereunder, exceeds the face amount of the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>No Obligation of Lender to Complete Improvements</u>. In the event that the Lender exercises the right to take possession of the Mortgaged Premises under this Article 7, the Lender shall not be obligated to commence or continue any construction or other work thereon if the same has not been completed and without affecting the validity of the Mortgage and any other security given by the Borrower to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Watchman</u>. Upon an Event of Default the Lender shall have the right, at the Borrower's expense, to employ and pay the wages of a watchman to guard the Mortgaged Premises if deemed appropriate by the Lender to preserve and protect the Mortgaged Premises.

**ARTICLE VIII.**

**RELEASE OF CASUALTY OR TAKING PROCEEDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 The Borrower shall promptly notify the Lender of any loss or damage from casualty at the Mortgaged Premises and of any notices or other written communications received by Borrower with respect to any pending condemnation or eminent domain taking of the Mortgaged Premises, or any part thereof. All such losses with respect to a casualty or condemnation or eminent domain damages or awards, or payments, in lieu thereof, shall be adjusted and paid in accordance with the terms and provisions of the Mortgage.

**ARTICLE IX.**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Waiver or Delay</u>. The rights, remedies, powers, privileges, and discretions of the Lender hereunder shall be cumulative and not exclusive of any rights or remedies which the Lender would otherwise have. No delay or omission by the Lender in exercising or enforcing any of the rights and remedies of the Lender shall constitute a waiver thereof. No waiver by the Lender of any Event of Default or of any default under any other agreement shall operate as a waiver of any other default hereunder or under any other agreement. No single or partial exercise of any of the rights or remedies of the Lender and no other agreement or transaction of whatever nature entered into between the Lender and the Borrower at any time, either express or implied, shall preclude the further exercise of the rights and remedies of the Lender unless such agreement is in writing signed by the Lender and expressly precludes such further exercise. No failure by the Lender to exercise any of the respective rights and remedies of the Lender on any one occasion shall be deemed a waiver on any subsequent occasion. All of the rights and remedies of the Lender hereunder and all of the rights, remedies, powers, privileges, and discretions of the Lender under the other Loan Documents are cumulative, and not alternative or exclusive, and may be exercised by the Lender at such time or times and in such order or preference as the Lender in its sole discretion may determine. With respect to this Loan Agreement and any other Loan Document, Lender is under no obligation to accept a cure of, or waive, any Event of Default under any of the Loan Documents, but in the event the Lender does accept a cure of, or waives, an Event of Default, a written statement from the Lender acknowledging said cure or waiver shall be deemed conclusive as to said Event of Default and Borrower and Lender will be restored to their respective rights and obligations as though said Event of Default had not occurred. Said written statement shall not affect the Lender's rights under the Loan Documents as to any other Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Amendments</u>. No modification, amendment, or waiver of any provision of this Agreement, or of any provisions of any other agreement between the Borrower and the Lender, shall be effective unless executed in writing by the party to be charged with such modification, amendment, or waiver, and if such party be the Lender, then by a duly authorized officer thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Successors to the Borrower</u>. This Agreement shall be binding upon the Borrower and the Borrower's successors and assigns, and shall inure to the benefit of the Lender and its successors and assigns. Except as set forth in Section ‎5.4 of this Agreement, nothing set forth herein or in any other Loan Document shall permit the assignment by the Borrower of this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Approval of Counsel to Lender</u>. All certificates, agreements, instruments, documents or other papers to be furnished by the Borrower to the Lender under this Agreement or relating to or connected with the Loan or any undertaking contemplated hereby, shall, at the request of the Lender, be subject to the reasonable approval as to form and content by counsel for the Lender with respect to all transactions under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Responsibility of Lender</u>. The Lender shall not be liable for any loss sustained by the Borrower resulting from any action, omission, or failure to act by the Lender with respect to the exercise or enforcement of its rights under this Agreement or any other Loan Documents or its relationship with the Borrower unless such loss is caused by the gross negligence, willful misconduct or actual bad faith of the Lender. This Agreement and the exercise by the Lender of its rights hereunder shall not operate to place any responsibility upon the Lender for the construction, control, care, management, or repair of the Mortgaged Premises, nor shall it operate to place any responsibility upon the Lender to complete any construction or other work on the Mortgaged Premises, or make the Lender responsible or liable for any waste committed on the Mortgaged Premises, any damages or defective condition of the Mortgaged Premises, or any negligence in the construction, management, upkeep, repair or control of the Mortgaged Premises unless caused by the gross negligence, willful misconduct or actual bad faith of the Lender. Borrower shall indemnify, defend, and hold the Lender harmless against any claim brought or threatened against the Lender on account of the Lender's relationship with the Borrower or guarantor of Borrower's obligations and shall pay all costs and expenses, including, without limitation, attorneys' reasonable fees and expenses in connection with the protection or enforcement of any of the Lender's rights against the Borrower or guarantor and against any collateral given the Lender to secure the Liabilities or any other liabilities of the Borrower and guarantor to the Lender (whether or not suit is instituted by or against the Lender). Notwithstanding the foregoing, said indemnification shall not apply to claims or losses resulting from the gross negligence, willful misconduct or actual bad faith of the Lender, nor shall it apply to any claim successfully asserted against Lender by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Payment of Costs</u>. The Borrower shall pay within thirty (30) days of written demand all reasonable costs and all expenses of the Lender including title insurance premiums and costs, recording fees, survey and appraisal costs (subject to Section ‎9.16 below), and reasonable attorneys' fees and disbursements, which the Lender may incur in connection with negotiation and consummation of the transactions contemplated hereby, and/or for post-closing disbursements, title updates, title insurance endorsements, or document reviews, any future amendments thereto, the collection of the Liabilities or the protection or enforcement of any of the rights of the Lender against the Borrower, or the performance of any of the obligations of the Borrower hereunder, provided however that Borrower shall not be obligated for any such costs incurred by Lender as a result of the gross negligence, willful misconduct or actual bad faith of the Lender nor to any costs incurred by Lender in connection with any claim successfully asserted against Lender by Borrower. The Borrower authorizes the Lender to pay all such expenses and the Borrower shall reimburse the Lender therefor upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Consent</u>. The Borrower may take any action herein prohibited or may omit to perform any act required to be performed by it, only if the Borrower shall obtain the prior written consent by a duly authorized officer of the Lender for each such action or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Assignment; Participation</u>. The Lender may participate with other lenders and/or may transfer and assign all or a portion of the Loan and its rights under this Agreement and under any other agreements and instruments referred to herein, provided that any assignee or transferee agrees to be bound by the terms and conditions of this Agreement and the other Loan Documents and such assignee or transferee provides notice thereof to Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>Severability</u>. Any determination that any provision of this Agreement or any application thereof is invalid, illegal, or unenforceable in any respect in any instance shall not affect the validity, legality, and enforceability of such provision in any other instance, or the validity, legality, or enforceability of any other provision of this Agreement. The parties hereto agree that they will negotiate in good faith to replace any provision hereof so held invalid, illegal or unenforceable with a valid provision which is as similar as possible in substance to the invalid, illegal or unenforceable provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <u>Notices</u>. All notices, demands and other communications made in respect of this Loan Agreement shall be made and deemed given (i) on the date of hand delivery, if hand delivered, (ii) on the date three (3) business days after mailing by certified or registered mail, return receipt requested or (iii) on the date one (1) business days after sending if delivered by overnight delivery service (for which a delivery receipt is issued), to the following addresses (each of which may be changed upon seven (7) days written notice to all others given in accordance with this Loan Agreement):

---

| | |
|:---|:---|
| If to the Lender: | **Rockland Trust Company** |
|  | 100 Front Street, 7<sup>th</sup> Floor |
|  | Worcester, MA 01608 |
|  | Attention: Shawn Moeller, Vice President |
| With a copy to: | Rockland Trust Company |
|  | 288 Union Street |
|  | Rockland, MA 02370 |
|  | Attention: Senior Commercial Real Estate Lender |
| With a copy to: | Rachel E.D. Churchill, Esquire |
|  | **McCarter & English, LLP** |
|  | 265 Franklin Street |
|  | Boston, Massachusetts 02110 |

---

---

| | |
|:---|:---|
| If to the Borrower: | **55 Walkers Brook Drive Owner LLC** |
|  | c/o JOSS Realty Partners B LLC |
|  | 650 Fifth Avenue, Suite 2400 |
|  | New York, New York 10019 |
| With a copies to: | Kris Ferranti, Esquire |
|  | **Clifford Chance US LLP** |
|  | 31 West 52<sup>nd</sup> Street |
|  | New York, New York 10019-6131 |

---

Effective as of June 1, 2024, the address for Clifford Chance US LLP shall be updated to the following:

---

| |
|:---|
| Kris Ferranti, Esquire |
| **Clifford Chance US LLP** |
| Two Manhattan West, |
| 375 9th Avenue, |
| New York, New York 10001 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 <u>Advances</u>. All amounts which the Lender may advance under this Agreement shall be a Liability. All such Liabilities shall be repayable, with interest at the rate charged the Borrower by the Lender under the Notes. No payment under this Agreement shall be conclusive evidence of the performance of its terms by the Borrower in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 <u>Entire Agreement</u>. This Agreement and the other Loan Documents constitute the entire agreement between the Borrower and the Lender with respect to the Loan, and the Borrower hereby acknowledges and agrees that the Borrower is not relying upon, or executing this Agreement or any of the Loan Documents based on any representations by, or agreement with the Lender (or any of its employees or agents) or any terms or conditions which are not expressly set forth in this Agreement or the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13 <u>Jury Waiver</u>. EACH OF THE BORROWER AND THE LENDER KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION, ACTION OR PROCEEDING WHICH ARISES OUT OF, OR IS IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE NOTES, MORTGAGE OR OTHER SECURITY DOCUMENTS, OR ANY OTHER INSTRUMENT OR DOCUMENT EXECUTED IN CONNECTION WITH THE LOAN OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN. EACH OF THE BORROWER AND THE LENDER HEREBY CERTIFIES THAT NO REPRESENTATIVE, EMPLOYEE, AGENT OR COUNSEL OF THE OTHER PARTY HAS REPRESENTED, WHETHER EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT IN THE EVENT OF SUCH LITIGATION, ACTION OR PROCEEDING, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO A TRIAL BY JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14 <u>Governing Law</u>. This Agreement and all rights and obligations hereunder, including matters of construction, validity and performance, shall be governed by the laws of the Commonwealth of Massachusetts. THE BORROWER AND LENDER SUBMIT TO THE JURISDICTION OF THE COURTS OF SAID COMMONWEALTH (AND THE FEDERAL COURTS SITUATED THEREIN) FOR ALL PURPOSES WITH RESPECT TO THIS AGREEMENT AND THE PARTIES' RELATIONSHIP AS BORROWER AND LENDER AND AGREE THAT ANY LEGAL PROCESS ISSUING FROM SUCH COURT AND DELIVERED TO IT IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH ‎9.10 HEREOF SHALL BE SUFFICIENT TO SUBJECT BORROWER AND LENDER TO THE PERSONAL JURISDICTION OF ANY SUCH COURT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15 <u>Disclaimer of Relationship</u>. The Borrower acknowledges that nothing in this Agreement or in any other Loan Document, nor any act of the Lender, the Borrower or any other person or entity shall be deemed or construed by any person or entity to create any partnership, joint venture or other relationship between or among the Borrower and the Lender other than a debtor-secured creditor relationship. Upon repayment to the Lender of all Liabilities owing thereto, the Lender shall have no further obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.16 <u>Appraisal</u>. The Lender reserves the right to require updated Appraisals at any time; provided, however that, the cost of any updated Appraisal shall only be borne by Borrower upon the occurrence of an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17 <u>Right of Inspection</u>. The Lender shall have the right to enter upon and inspect the Premises at all reasonable times upon reasonable advance notice to the Borrower but no more frequently than annually, absent the occurrence of an Event of Default. Any such inspections by Lender shall be conducted in a manner that does not interfere with the operations at the Mortgaged Premises. Further, promptly upon the reasonable request of the Lender, Borrower shall provide the Lender with an environmental site assessment report or an update of any existing report, all in scope, form and content and performed by such company as may be reasonably satisfactory to the Lender. In the event the Borrower shall fail to timely provide such report, the Lender shall have the right to enter upon the Premises to conduct testing and perform other assessment activities as it reasonably deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18 <u>Confidentiality</u>. The Lender agrees to use commercially reasonable efforts to preserve the confidential nature of financial information obtained pursuant to the requirements of this Agreement or any other Loan Document; provided, that the foregoing shall not apply to (i) disclosures required of Lender pursuant to any applicable law, or order of any governmental authority, (ii) any information delivered pursuant to the reporting requirements of federal or state securities laws and regulations, (iii) disclosures made to any prospective purchaser or participant in the Loan or any affiliate of Lender, provided that Lender obtains an agreement from such party to keep said information confidential, (iv) any disclosures made in connection with the enforcement of any of the Loan Documents or any litigation therewith, or (v) disclosures of information that is publicly available other than as a result of a disclosure by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.19 <u>Amendment and Restatement</u>. This Agreement constitutes an amendment and restatement, but not an extinguishment, of the Original Agreement. Nothing herein shall be construed to constitute satisfaction of the outstanding obligations under the Original Agreement, provided however, upon execution and delivery of this Agreement, such obligations shall be enforceable in accordance with this Agreement dates as of the date hereof and not the Original Agreement.

[*Remainder of Page Intentionally Left Blank; Signature Page Follows*]

WITNESS the execution of this Amended and Restated Loan Agreement under seal the day and year first above written.

---

| | |
|:---|:---|
| <u>BORROWER</u>: | <u>BORROWER</u>: |
| **55 WALKERS BROOK DRIVE OWNER LLC** | **55 WALKERS BROOK DRIVE OWNER LLC** |
| By: | /s/ Lawrence Botel |
| Name: | Lawrence Botel |
| Title: | Authorized Signatory |
| <u>LENDER</u>: | <u>LENDER</u>: |
| **ROCKLAND TRUST COMPANY** | **ROCKLAND TRUST COMPANY** |
| By: | /s/ Michael J. Crawford |
| Name: | Michael J Crawford |
| Title: | Senior Vice President |

---

## Exhibit 10.9

**Exhibit 10.9**

**CONSTRUCTION LOAN AND SECURITY AGREEMENT**

**THIS CONSTRUCTION LOAN AND SECURITY AGREEMENT** (this "<u>Agreement</u>") is made this 20<sup>th</sup> day of October, 2017, by and between **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company ("<u>Borrower</u>"), and **BENEFICIAL BANK**, a Pennsylvania financial institution ("<u>Lender</u>").

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. On or about the date hereof, Borrower has acquired fee title to certain real estate commonly known as 165 Township Line Road, Jenkintown, PA (the "<u>Mortgaged Property</u>"). The Mortgaged Property is improved with two office buildings containing a total of 99,859 rentable square feet (the "<u>Buildings</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Borrower has requested that Lender loan Borrower an amount not to exceed $9,225,000.00 (the "<u>Loan</u>"). $8,558,000.00 of the Loan shall be advanced on the date hereof on account of Borrower's acquisition of the Mortgaged Property. Such advance shall be evidenced by a promissory note from Borrower in favor of Lender in the original principal amount of $8,558,000.00 (the "<u>Acquisition Note</u>"). The balance of the Loan, $667,000.00, shall be advanced for tenant improvements and leasing commissions in connection with new leases for the Buildings or the renewal of existing leases at the Buildings. Such tenant improvements and leasing commissions are hereinafter referred to as the "<u>Tenant Improvements</u>" and "<u>Leasing Commissions</u>", respectively. Loan advances for Tenant Improvements and Leasing Commissions shall be evidenced by a promissory note in the original principal amount of $667,000.000 (the "<u>TI/LC Note</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower and Lender intend by this Agreement, to confirm the terms under which the proceeds of the Loan will be advanced and to set forth certain other terms and conditions with respect to the Loan.

**NOW, THEREFORE,** the parties hereto, intending to be legally bound hereby and incorporating the foregoing recitals by reference, covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Loan Documents; Security</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;1.1 **<u>Loan Documents; Security</u>**. The Loan shall be evidenced by the Acquisition Note and the TI/LC Note (as the same may be hereafter amended, restated, or substituted, collectively, the "<u>Note</u>"). As security for the Note and the performance by Borrower of all its obligations hereunder and thereunder, the following documents are being executed and delivered to Lender simultaneously herewith (except as specifically noted below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) an Open-End Mortgage and Security Agreement (the "<u>Mortgage</u>") encumbering the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an Assignment of Rents and Leases (the "<u>Assignment of Leases</u>") encumbering the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a General Collateral Assignment (the "<u>General Collateral Assignment</u>") pursuant to which Borrower assigns all of Borrower's right, title and interest in and to all contracts, management agreements, licenses, permits, guarantees, and similar items with respect to the ownership, construction, leasing, licensing and operation of the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an Environmental Indemnity Agreement (the "<u>Environmental Indemnity</u>") executed by Borrower and Larry Botel (the "<u>Guarantor</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;(e) UCC-1 Financing statements (the "<u>Financing Statements</u>"); 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;(f) a Limited Guaranty Agreement (the "<u>Limited Guaranty</u>") executed by Guarantor.

The Note, Mortgage, Assignment of Leases, General Collateral Assignment, Environmental Indemnity, Financing Statements, Limited Guaranty, and all other documents evidencing and/or securing the Loan (collectively with this Agreement, the "<u>Loan Documents</u>"), shall be in form and substance satisfactory to Lender, and all necessary filing and recording fees with respect thereto shall be paid by Borrower. The Loan Documents are incorporated herein by reference. To the extent of any conflict between the terms of the other Loan Documents and the terms of this Agreement, the terms of this Agreement shall govern and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **<u>Lender's Costs</u>**. Borrower shall pay or reimburse Lender for all costs and expenses, including but not limited to, the reasonable fees and expenses of Lender's attorneys and inspecting engineers and/or architects, incurred by Lender in connection with the preparation, review, modification and enforcement of the Loan Documents, and the disbursement, administration and collection of the Loan. Without limiting the generality of the foregoing, Borrower shall reimburse Lender for the costs of Lender's Consultant (as hereinafter defined) in connection with inspection of construction of the Tenant Improvements by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Representation and Warranties</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;2.1 **<u>Relating to Borrower</u>**. Borrower specifically represents and warrants to Lender as of the date hereof 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;(a) Borrower is a limited liability company duly organized, validly existing and subsisting under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Borrower has all requisite power and authority to: (i) own and operate its properties and to carry on its business as now conducted and as presently planned to be conducted; (ii) engage in all of the transactions contemplated by this Agreement, and (iii) execute and deliver, and to comply with the provisions of this Agreement and the other Loan Documents to which Borrower is a party, which Loan Documents constitute the legally binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditor's rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) There is no suit, action, investigation or proceeding pending or threatened against or affecting Borrower, Guarantor or the Mortgaged Property before or by any court, administrative agency or other governmental authority which if adversely decided would have a material adverse effect on the business, operations or condition (financial or otherwise) of Borrower, any of its members, or Guarantor or which brings into question the validity of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) No consent, approval or other authorization of or by any court, administrative agency or other governmental authority is required in connection with the execution or delivery by Borrower or Guarantor of any 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;(e) Neither the execution nor delivery of this Agreement or any other Loan Document executed by Borrower or Guarantor will conflict with or result in a breach of any applicable law, judgment, order, writ, injunction, decree, rule or regulation of any court, administrative agency or other governmental authority, or of any agreement or other instrument to which Borrower or Guarantor is a party or by which they are bound, or constitute a default under any thereof, or, except as expressly contemplated herein, result in the creation or imposition of any lien, charge or encumbrance upon any property of Borrower or Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Borrower and Guarantor have filed all federal, state, county and municipal tax returns required to have been filed by Borrower and/or Guarantor, respectively, or have obtained extensions for such filings from the applicable governmental authority, and have paid all taxes which have become due pursuant to such returns or pursuant to any tax assessments received by Borrower or Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Loan is being obtained solely for commercial business or investment purposes and will not be used for personal, family, household or agricultural purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Borrower conducts its business solely under the name set forth in the caption to this Agreement and makes use of no trade names in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 financial statements previously delivered by Borrower and Guarantor to Lender are true and correct in all material respects, have been prepared on a consistent basis from the prior year and fairly present the respective financial conditions of the subjects thereof as of the respective dates 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;(j) No material adverse change has occurred in the financial conditions reflected in the financial statements of Borrower or Guarantor since the respective dates of such statements, and no material additional liabilities have been incurred by Borrower or Guarantor since the dates of such statements other than the borrowings contemplated herein or as approved in writing by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) None of Borrower, the Guarantor or any affiliate of either thereof: (i) is a person named on the list of Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of the Treasury's Office of Foreign Assets Control (hereinafter referred to as "<u>OFAC</u>") available at <u>http://www.treas.gov/offices/eotffc/ofac/sdn/ index.html</u>, or as otherwise published from time to time; (ii) is (A) an agency of the government of a country, (B) an organization controlled by a country, or (C) a person resident in a country that is subject to a sanctions program identified on the list maintained by OFAC and available at <u>http://www.treas.gov/offices/eotffc/ofac/sanctions/ index.html</u>, or as otherwise published from time to time, as such program may be applicable to such agency, organization or person; or (iii) derives any of its assets or operating income from investments in or transactions with any such country, agency, organization or person. In addition, none of the proceeds from the Loan will be used to finance any operations, investments or activities in, or make any payments to, any such country, agency, organization, or person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Neither Borrower nor Guarantor nor any member of Borrower is a foreign person within the meaning of Sections 1445 and 7701 of the United States Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), and/or any regulations promulgated by the Internal Revenue Service pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) As of the date hereof and throughout the term of the Loan: (a) Borrower is not and will not be (i) an "employee benefit plan," as defined in Section 3(3) of ERISA, (ii) a "governmental plan" within the meaning of Section 3(32) of ERISA, or (iii) a "plan" within the meaning of Section 4975(e) of the Code; (b) the assets of Borrower do not and will not constitute "plan assets" within the meaning of the United States Department of Labor Regulations set forth in Section 2510.3-101 of Title 29 of the Code of Federal Regulations; (c) transactions by or with Borrower are not and will not be subject to state statutes applicable to Borrower regulating investments of fiduciaries with respect to governmental plans; and (d) Borrower will not engage in any transaction that would cause the Loan or any action taken or to be taken hereunder (or the exercise by Lender of any of its rights under any of the Loan Documents) to be a non-exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA or Section 4975 of the Code. Borrower agrees to deliver to Lender such certifications or other evidence of compliance with the provisions of this Section as Lender may from time to time request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) No Event of Default has occurred and is continuing or exists under this Agreement or any other Loan Document, and no event has occurred and is continuing or exists which, with the passage of time or giving of notice or both, will constitute an Event of Default hereunder or under 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;(o) Borrower's and Guarantor's fiscal year is the calendar year.

&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 **<u>Relating to the Mortgaged Property</u>**. Borrower specifically represents and warrants to Lender 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;(a) All necessary approvals for the operation of the Mortgaged Property for its current use, from all governmental or quasi-governmental authorities having jurisdiction, including, but not limited to, zoning, use, and land development approvals (the "<u>Governmental Approvals</u>"), have been obtained and are final, unappealed, and unappealable, and remain in full force and effect without restriction or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) No notice of taking by eminent domain or condemnation of all or any part of the Mortgaged Property has been received by Borrower and/or Guarantor, and

Borrower and Guarantor have no knowledge that any such proceeding is contemplated. No part of the Mortgaged Property has been damaged as a result of any fire, explosion, accident, flood, or other casualty which has not been fully restored.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Borrower has delivered to Lender a cost schedule, a copy of which is attached hereto as <u>Exhibit A</u> and made a part hereof (the "<u>Schedule of Project Costs</u>"), which shows all categories of costs projected to be incurred in acquisition, renovation and leasing of the Mortgaged Property, and the expected sources of funds to pay such costs. All costs included in the Schedule of Project Costs reflect the actual costs paid or estimated to be paid by Borrower in connection therewith, net of any rebates or discounts receivable by Borrower or any affiliate of Borrower. Except as specifically identified in the Schedule of Project Costs, all such costs are payable to third parties unrelated to Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Mortgaged Property abuts and has direct access to Township Line Road, which is a legally-opened public right-of-way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Electricity, public potable water, public sanitary facilities, telecommunications, cable t.v. and natural gas service are available at the Mortgaged Property and are of sufficient capacity to service the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Borrower has no knowledge of any activity or condition on the Mortgaged Property which is in violation of any applicable law, including, without limitation, those pertaining to zoning, building, fire prevention, and environmental protection. As used in this Agreement or any other Loan Documents, the "knowledge" of Borrower, shall mean the knowledge of Guarantor and Borrower's officers or representatives engaged by Borrower to be responsible for the subject matter to which the representation pertains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) None of the personal property which forms part of the Mortgaged Property is subject to any existing lien or security interest not being released from the funding of the Loan. No material part of the equipment, furnishings or other personal property used or to be used in connection with operation and maintenance of the Mortgaged Property is leased by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Mortgaged Property is separately assessed for real estate taxes as a separately subdivided parcel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Except for the Management Agreement between Borrower and BMS Real Estate Services Management Company and the leasing brokerage agreement between Borrower and JLL, copies of which have been previously furnished to Lender, there are no leasing or property management agreements affecting the Mortgaged Property. There are no leasing brokerage commissions currently due and payable with respect to the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) To Borrower's knowledge, the rent roll attached hereto as <u>Exhibit B</u> is a correct and complete rent roll in all material respects for the Mortgaged Property as of the date hereof; all of the leases referenced thereon are unmodified and in full force and effect; and to Borrower's knowledge, no tenant has any present right of setoff or defense with respect to rent due or to become due thereunder; and no tenant is in default of its lease.

&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 **<u>Survival of Representations</u>**. All of the representations and warranties of Borrower in this Agreement shall survive the making of this Agreement and shall be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Conditions to Advances</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;3.1 **<u>Closing Conditions</u>**. Closing of the Loan is subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) All of the Loan Documents shall have been properly executed by Borrower and Guarantor, as applicable, and delivered to Lender. The Mortgage shall be a first lien on good and marketable fee simple title to the Mortgaged Property, free and clear of all prior liens, restrictions, easements and other encumbrances and title objections except such as may have been approved in writing by Lender or set forth in Schedule B-I of the title insurance policy issued to Lender insuring the lien of the Mortgage; 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;(b) Borrower shall have furnished to Lender such other instruments, documents and opinions as Lender shall reasonably require to evidence and secure the Loan and to comply with this Agreement, and the requirements of regulatory authorities to which Lender is subject, including, without limitation all insurance required to be maintained by Borrower pursuant to the Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **<u>All Advances</u>**. Each Loan advance shall be subject to the satisfaction of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) All of the representations and warranties set forth in Article II hereof shall remain true and correct in all material respects as of the date of such advance except for any changes in conditions and circumstances which shall have occurred after the date of this Agreement that result in changes to the representations and warranties in Sections ‎2.2(b), ‎(f) and ‎(j); 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;(b) There shall be no Event of Default then uncured (as determined by Lender in its sole discretion) under this Agreement or any other Loan Document, and no event shall have occurred and be continuing which, with the passage of time or the giving of notice or both, would constitute an Event of Default hereunder; 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;3.3 **<u>Loan Advances for Tenant Improvements and Leasing Commissions</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;(a) From time to time, but not more than once per calendar month, Borrower may request that Lender disburse funds from the TI/LC Account (as defined in Section ‎5.5 hereof) and after the TI/LC Account is reduced to a zero balance, that Lender make advances of the Loan, on account of the costs of Tenant Improvements and third party Leasing Commissions in connection with new leases for the Buildings to third party tenants or the renewal of any existing leases, at market rents and on terms and conditions reasonably satisfactory to Lender (each such new lease or renewal of an existing lease, an "<u>Approved Lease</u>").

Disbursements from the TI/LC Account and Loan Advances for Tenant Improvements 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The minimum disbursement shall be Twenty-Five Thousand Dollars ($25,000.00) except for the last draw which may be less, if the remaining balance is less than $25,000.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 balance of the TI/LC Account and/or the unadvanced Loan proceeds shall be at least equal to the amount of the requested disbursement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) no Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender shall have received a fully executed copy of the Approved Lease for which a disbursement is requested;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender shall have received a disbursement request from Borrower on the AIA form G702, which request (each, a "<u>Request</u>") shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if Borrower is performing the Tenant Improvements: (1) a certification from Borrower and the general contractor performing the Tenant Improvements that: the work for which payment is requested has been completed in accordance with the plans therefor, is physically incorporated into the Mortgaged Property and conforms to all applicable rules and regulations of the governmental authorities having jurisdiction; and no event shall occurred which is, or with the passage of time, the giving of notice or both, would become an Event of Default hereunder; (2) copies of all invoices for the work that is the subject of the Request (which shall not be more than, in the aggregate, the amount of the Request); and (3) conditional lien releases from the vendor of each of such invoices; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if the tenant is performing the Tenant Improvements: (1) a certification from Borrower that the tenant is not in default under the Approved Lease and the Tenant Improvements for which payment is requested have been completed pursuant to the Approved Lease; and (2) conditional lien waivers from the tenant's contractors, subcontractors and materialmen performing labor or providing supplies in connection with such Tenant Improvements (or if the tenant has fully paid for the tenant improvements and is seeking reimbursement, unconditional lien releases).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Requests for Tenant Improvements (Tenant Allowances) shall be submitted only for work completed and materials installed that are free of any chattel mortgage, conditional sale, security interest or any other lien or encumbrance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Request for Tenant Improvements shall be subject to the reasonable approval of Lender, but such approval shall not constitute an acceptance of any work or materials which may be defective or which may fail to comply with the plans therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The last request for any Approved Lease shall be subject to the following additional conditions: (A) the tenant shall have taken occupancy of its leased premises and shall have begun paying rent (other than any period of free rent granted to such tenant under its Approved Lease); (B) the tenant shall have delivered an estoppel certificate to Lender in form and content reasonably satisfactory to Lender which estoppel certificate states among other things, that all work required to be completed for the tenant's occupancy of its demised premises has been satisfactorily completed and there are no defaults by either party under such Approved Lease; (C) Borrower shall have delivered to Lender a certified rent roll for the Mortgaged Property which reflects such Approved Lease; (D) Borrower shall have delivered to Lender a certificate of occupancy for the premises demised under the lease from the applicable governmental authority (if a certificate of occupancy is required under applicable law for the occupancy of such space by the tenant); and (E) if Borrower is responsible for performing the Tenant Improvements under such Approved Lease, Borrower shall deliver a certificate of substantial completion for the tenant's demised premises (if there is a punchlist, Borrower may supply a schedule for the completion from its general contractor thereof that has been accepted by such tenant, so long as such tenant does not have the right to terminate the Approved Lease or withhold rent as a result of Borrower's failure to complete such punchlist 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Requests for third party Leasing Commissions shall be subject to conditions ‎(i) and ‎(iv) above and shall include the third party leasing broker's invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender shall review all Requests within ten (10) days of its receipt thereof. After Lender's review of the Request, provided that inspections by Lender's Consultant verify the certifications in the Request and all other conditions to such advance have been satisfied (and Lender shall include the fee of such Consultant, if applicable, in such Request and shall pay such Consultant directly), Lender shall fund the Request, first from the TI/LC Account and after the TI/LC Account has a zero balance, from the unadvanced Loan proceeds. Disbursements may be credited to Borrower's account with Lender (the "<u>Operating Account</u>") or, at Lender's option, made directly to the order of the general contractor, any subcontractor or supplier or any third party vendor or the applicable tenant for which payment is requested, or some or any of them, as Lender may elect from time to time; all payments to parties or entities other than Borrower shall be deemed made for the use and benefit of Borrower with the same force and effect as if disbursed directly to Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Provided that no Event of Default has occurred and is continuing, at any time after October 1, 2020 or earlier if Wells Fargo renews its lease on market terms and conditions for a period of at least five (5) years (excluding any renewal options), if the Debt Service Coverage Ratio is at least 1.25:1.0 based on a current rent roll and operating statement for the Mortgaged Property, then Lender shall promptly deliver all funds in the TI/LC Account to Borrower and this <u>Section ‎3.3</u> as it relates to disbursements from the TI/LC Reserve (but not future Loan advances evidenced by the TI/LC Note) shall become void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If the entire proceeds of the Loan evidenced by the TI/LC Note are not fully advanced in accordance with <u>Section ‎3.3</u> within twelve (12) months after the first advance thereof, Lender shall advance the unused proceeds into the TI/LC Account at the end of such period and such Loan proceeds shall accrue interest from and after the date of such advance and shall thereafter be available to Borrower for Tenant Improvements and Leasing Commissions in accordance with this <u>Section ‎3.3</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;3.4 **<u>Advances After an Event of Default</u>**. Notwithstanding anything else contained herein, Lender shall have the right, in its absolute discretion, after the occurrence and during the continuance of an Event of Default, to apply any portion of the Loan without Borrower having requested an advance, for the payment of any cost Lender deems necessary to maintain or preserve the security for the Loan (including but not limited to, reasonable attorneys' fees incurred by Lender in the enforcement of Lender's rights and remedies under the Loan Documents); <u>provided</u>, <u>however</u>, that Lender shall not be obligated to make any such advance nor disbursement and shall incur no liability for their failure to do so. Any such advance or disbursement shall be deemed to have been made pursuant to this Agreement and not in modification hereof. Lender shall also have the right to apply any portion of the Loan to payment of any real estate taxes, special assessments, to satisfy any condition hereof or cure an Event of Default; or to payment of any charge or expense which may have been incurred or assumed by Lender in connection with this Agreement or the preservation of the security for 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;3.5 **<u>Inquiry by Lender</u>**. Anything herein contained to the contrary notwithstanding, Lender shall not be obligated to inquire into the accuracy or correctness or reasonableness of the Schedule of Project Costs supplied by Borrower, nor shall Lender have any obligation or duty to Borrower or to any other party, firm or corporation, including without limitation, any contractors, subcontractors, materialmen and suppliers, to ascertain whether or not the payments made by Lender correspond in amount to the sums to which the payee or payees are entitled under the terms of the Schedule of Project Costs, any Request or any other document or documents relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 **<u>No Third Party Beneficiaries</u>**. The parties hereto do not intend the benefits of this Agreement to inure to any third party. Notwithstanding anything contained herein or in the Note or any other document executed in connection with this transaction, or any conduct or course of conduct by any of the parties hereto or their respective affiliated companies, Lender or employees, before or after signing this Agreement or any of the other aforesaid documents, this Agreement shall not be construed as creating any rights, claims, or causes of action against Lender, or any of its respective officers, Lender or employees, in favor of any contractor, subcontractor, supplier of labor, materials or services, or any of their respective creditors, or any other party or entity other than Borrower. Without limiting the generality of the foregoing, disbursements made directly to any contractor, subcontractor or supplier of labor, materials or services pursuant to Requests as aforesaid, regardless of whether the Requests are required to be or are approved by Borrower, shall not be deemed a recognition by Lender of a third-party beneficiary status of any such party or 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;3.7 **<u>Subcontracts and Mechanics' Liens</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;(a) Borrower shall not engage or permit its general contractor to engage or continue to employ any contractor, subcontractor or material man who may be reasonably objectionable to Lender because such contractor, subcontractor or material man is not properly licensed or bonded in the state where the Mortgaged Property is situated. Any contractor, subcontractor or material man engaged by Borrower or its general contractor shall be properly licensed or bonded in the state where the Project is situated. Promptly upon Lender's request, Borrower shall deliver to Lender: (i) a copy of the construction contract between the general contractor and Borrower; and (ii) to the extent available to Borrower, the contracts between general contractor and its subcontractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If any mechanics' lien shall be filed against the Mortgaged Property by reason of work, labor, services or materials supplied or claimed to have been supplied, or any municipal liens or other liens or encumbrances shall be recorded, filed, and if any such mechanics' lien or other lien or encumbrance is not discharged or bonded over to Lender's reasonable satisfaction within twenty (20) days after Borrower shall have been given written notice by Lender or by the claimant or otherwise of the filing or recording thereof, then Lender may, at its option, (i) pay and discharge the said lien or encumbrance, in which case the sum which Lender or Lender shall have so paid shall be accepted by Borrower as part of the advances then due or thereafter to become due, (ii) require Borrower to pay or discharge the lien, by bonding or otherwise, using Borrower's own funds for such purpose, or (iii) if Borrower fails to perform in accordance with clause (ii) above, treat such occurrence as an immediate Event of Default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 **<u>Access to Construction – Inspection</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;(a) Borrower agrees to provide and to cause to be provided to Lender and its Consultant, access to the Mortgaged Property and free access to Lender and its authorized Lender to all plans, drawings and records with respect to the construction of the Tenant Improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender shall have the right to retain an architect or engineer (the "<u>Consultant</u>") of its selection (which may be a third party or an employee of Lender) to act as Lender's consultant in connection the construction of the Tenant Improvements, to review the plans and specifications therefor and make periodic inspections to verify the progress of construction and to review and approve draw Requests and change orders submitted hereunder. The fees and expenses of Lender's Consultant shall be paid by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Although Lender may inspect such plans and specifications, the Schedule of Project Costs, cost estimates, actual construction, and other matters pertaining to construction on the Mortgaged Property generally, such inspections are solely for the protection of Lender as lender, and Borrower understands that Lender is not making and will not make any warranties or representations as to any matters pertaining to the Mortgaged Property (including, without limiting the generality of the foregoing, the sufficiency of the construction funds, the adequacy of the plans and specifications, or the proper performance by any contractor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 **<u>Indemnification</u>**. Borrower, for itself and all those claiming under or through Borrower, hereby releases and agrees to indemnify, defend and save harmless Lender for, from, of and against any and all liability whatsoever as a result of or in connection with (i) the payment or nonpayment by Lender to Borrower and/or to any other party, of all or any part or parts of the Loan proceeds advanced or disbursed by Lender to fund any Request (provided this shall not be deemed Borrower's release of any failure by Lender to fund a Request for which Borrower has satisfied all conditions to the funding pursuant to <u>Sections ‎3.1</u> through <u>‎3.3</u> hereof), (ii) any suits, claims or damages arising out of disputes between Borrower and its general contractor, any subcontractor, material man or supplier, or between Borrower and any tenant for space in any Mortgaged Property or between Borrower, its general contractor or any subcontractor and any municipal or public authority and (ii) any suits, claims or damages arising out of or in connection with injury to persons or property damage occurring on or about any Mortgaged Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Events of Default</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;4.1 **<u>Events of Default</u>**. The occurrence of any one or more of the following shall, at the option of Lender, constitute an event of default (each, an "<u>Event of Default</u>") hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If Borrower fails to pay any sum due under the Note or any other Loan Document on the date such sum is due and such failure continues for five (5) days after written notice thereof from Lender (other than sums due on the Maturity Date for which no notice from Lender or cure period shall be 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there is a violation of Sections 13 entitled "Due on Sale Clause" or 14 entitled "Subordinate Liens" of the Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If Borrower prohibits Lender or the Consultant from entering and inspecting the Mortgaged Property at any reasonable time and to inspect any plans and specifications, or fails to furnish to Lender copies of any plans and specifications for the Mortgaged Property within fifteen (15) days after Lender's request therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If Borrower fails to comply with any material requirements of any governmental authority having jurisdiction over Borrower or the Mortgaged Property within thirty (30) days after written notice of such requirements are given to Borrower by such governmental authority; <u>provided</u>, <u>however</u>, that: (i) Borrower shall have the right, in good faith, to challenge any such requirement so long as Borrower pursues such challenge with all due diligence and such challenge operates to suspend, under applicable law, Borrower's obligation to comply with such requirement; and (ii) if such challenge is discontinued or is decided adversely to Borrower, then Borrower shall immediately comply with such requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If any representation, warranty, or financial statement of Borrower or Guarantor shall prove to have been false or materially incorrect when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If Borrower or Guarantor makes a general assignment for the benefit of creditors, or admits in writing its or their inability to pay its or their debts as they become due, or voluntarily files a petition in bankruptcy, or is adjudicated a bankrupt or insolvent, or files a petition seeking any relief under any present or future statute, law or regulation, relating to bankruptcy or insolvency, or files an answer admitting or not contesting the material allegations of a petition filed against it or them in any such proceeding or seeks or consents to or acquiesces in the appointment of any trustee or receiver of Borrower, Guarantor or any material part of its or their properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If any proceeding against Borrower or Guarantor seeking any relief under any present or future statute, law or regulation relating to bankruptcy or insolvency is not dismissed within sixty (60) days after the commencement of such proceeding, or if any trustee or receiver of any Borrower or Guarantor or of any material part of its or their properties shall be appointed without the consent or acquiescence of Borrower or Guarantor, as applicable, and such appointments shall not have been vacated within such sixty (60) days after such appointments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If a final judgment for the payment of money in excess of $50,000 shall be rendered against Borrower or any Guarantor and within thirty (30) days after the entry thereof, such judgment shall not have been discharged, bonded off or execution thereof stayed pending appeal, or if within thirty (30) days after the expiration of such stay, such judgment shall not have been discharged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Borrower defaults under any Approved Lease as a result of Borrower's failure to construct any Tenant Improvements in accordance with such Approved Lease and the tenant thereunder terminates its lease or withholds rents due thereunder; 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;(j) If Borrower fails to observe and perform any of the other terms, covenants and agreements on its part to be observed and performed under this Agreement or any other Loan Document and such failure shall not have been cured within thirty (30) days after written notice of such failure shall have been given to Borrower; <u>provided</u>, <u>however</u>, that if the failure is of such a nature as to be susceptible to cure but not within said 30-day period, Borrower shall have such additional reasonable period of time, not to exceed ninety (90) days in the aggregate, subject to force majeure as is reasonably required to effect such cure so long as Borrower has promptly commenced efforts to cure and thereafter diligently prosecutes the same to completion.

&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 **<u>Remedies</u>**. After and during the continuance of any Event of Default, Lender may exercise any or all of the following rights and remedies as Lender may deem necessary or appropriate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Refuse to make any further advances hereunder and terminate Lender's commitment to make 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Declare immediately due and payable all monies advanced under the Note which are then unpaid with all accrued and unpaid interest, and accordingly accelerate payment 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;(c) Exercise all other remedies available to Lender under any of the Loan Documents, or available to Lender under applicable law, it being the intention of the parties that the remedies provided in this Agreement shall be in addition to and not in substitution of the rights and remedies which would otherwise be vested in Lender at law or in equity, all of which rights and remedies are specifically reserved by Lender, and the failure of Lender to exercise any remedy herein provided shall not constitute a waiver by Lender nor preclude the resort to any other appropriate remedy or remedies herein provided or prevent the subsequent or concurrent resort to any other remedy or remedies which by law or equity shall be vested in Lender for the recovery of damages or otherwise after an Event of a Default and any waiver by Lender of any rights or remedies hereunder must, to be effective, be in writing, and such waiver shall be limited in its effect to the condition or default specified therein, but no such waiver shall extend to any subsequent condition or default or impair any right consequent thereon; 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;(d) Lender, shall have and is hereby granted a right of setoff, a lien upon and a security interest in all property of Borrower now or at any time hereafter in Lender's possession in any capacity whatsoever, including, without limitation, any balance or share of any deposit, trust, escrow or agency account, as security for all liabilities of Borrower to Lender under the Loan Documents.

If any proceeding is instituted on this Agreement or judgment is entered on any note, bond, separate warrant of attorney or mortgage for recovery and reimbursement of any sum expended by Lender or its representatives in connection with the completion of the Tenant Improvements, a statement of such expenditures, verified by the affidavit of an officer of Lender, shall be prima facie evidence of the amounts so expended and of the propriety of and necessity for such expenditures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Covenants</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;5.1 **<u>Financial Statements/Tax Returns/Rent Roll</u>**. Borrower shall deliver to Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) For Borrower: (A) on or before April 30 of each calendar year, a financial statement for the previous calendar year prepared in accordance with generally accepted accounting principles consistently applied, and in form and content reasonably satisfactory to Lender, including a comparison of the operating statistics for the Mortgaged Property in the previous calendar year against the projected budget for the Mortgaged Property for the current calendar year, prepared and certified as correct and complete by an independent CPA reasonably acceptable to Lender (the "<u>CPA</u>"); and (B) within fifteen (15) days after filing, and in no event later than October 31 of each year, copies of its complete federal income tax returns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) For Guarantor: (A) on or before April 30 of each calendar year, a financial statement for the previous calendar year, which financial statement shall: be prepared and certified by a CPA; be in the form previously submitted by Guarantor to Lender in connection with Borrower's application for the Loan; include a list (with amounts) of all of Guarantor's contingent liabilities; be certified as correct and complete by Guarantor; and include a "global cash flow" statement for such year for all commercial real estate in which Guarantor has a direct or indirect interest, which includes for each commercial property: its address; description; mortgage debt and maturity; income and expenses; and Guarantor's percentage ownership interest therein; (B) within 15 days after the filing thereof and in no event later than October 31, Guarantor's complete federal income tax return prepared by a CPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Contemporaneous with the financial statement to be provided under subsection ‎(i) above, a current rent roll for the Mortgaged Property prepared by Borrower; 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) With reasonable promptness, such other financial information regarding Borrower, Guarantor or the Mortgaged Property as Lender may reasonably request.

In addition, Borrower agrees to make its books and accounts relating to the Mortgaged Property available for inspection by Lender, or its representatives, upon request at any time (but not more than once per year unless an Event of Default has occurred and is continuing) during normal business hours.

&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 **<u>Covenant With Respect to Limited Liability Company Agreement and Single Purpose Entity Covenants</u>**. Borrower represents, warrants and agrees 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;(a) it shall not amend its limited liability company operating agreement without Lender's prior written consent, if such amendment would violate the subparagraph ‎(b) provisions below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Borrower shall do all things necessary to preserve and keep in full force and effect its existence, rights and franchises, and so long as the Loan remains outstanding, Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) shall not acquire or own any assets other than the Mortgaged Property and such incidental personal property as may be necessary for the operation of the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not engage in any business or activities other than the ownership, operation and maintenance of the Mortgaged Property, and activities incidental thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) shall not merge into or consolidate with any entity without the consent of Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 not, nor permit any constituent party to cause it to, dissolve, terminate or liquidate in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) shall not commingle its assets with those of any other person or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) shall not incur any debt, secured or unsecured, direct or contingent (including, without limitation, guaranteeing any obligation), other than the Loan, Tenant Improvements, Leasing Commissions, Capital Improvements, customary unsecured trade debt incurred in the ordinary course of owning and operating the Mortgaged Property, which such trade debt shall be payable within sixty (60) days and shall not exceed at any time, $75,000;

&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) shall prepare its own tax returns and maintain its records, books of account, bank accounts, financial statements, accounting records and other entity documents separate and apart from those of any other person or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) shall use stationery, invoices and checks separate from any other person or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) shall maintain an arms-length relationship with each of Borrower's affiliates and constituent entities; (may act as property manager/leasing 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) shall not assume or guaranty the debts of any other person or entity, hold itself out to be responsible for the debts of another person or entity, or otherwise pledge its assets for the benefit of any other person or entity or hold out its credit as being available to satisfy the obligations of any other person or entity other than the Loan or as contemplated by 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) shall not own any subsidiary or make any investment in any person or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) shall not make any loans or advances to any third party, including, without limitation, any of Borrower's affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) shall not fail to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations to the extent cash flow is available from operations at the Mortgaged Property (and Lender acknowledges that, under Borrower's operating agreement, there is no obligation of any member of Borrower to contribute capital to Borrower);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) shall not agree to, enter into or consummate any transaction which would render Borrower insolvent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) shall hold itself out to the public as a legal entity separate and distinct from any other entity and conduct its business solely in its own name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) shall establish and maintain an office through which its business shall be conducted separate and apart from that of its affiliates and shall allocate fairly and reasonably any shared expenses, including, without limitation, overhead for shared office space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) shall pay its own liabilities out of its own funds and assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) shall maintain a sufficient number of employees in light of its contemplated business operations and pay the salaries of such employees, if any, from its own funds; 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;&nbsp;&nbsp;&nbsp;&nbsp;(xix) shall observe all limited liability company formalities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 **<u>Maintenance of Operating Account at Lender</u>**. All revenue paid to Borrower arising from the Project shall be deposited into the Operating Account and Borrower shall direct all tenants of the Mortgaged Property to pay all rent and other sums due under their leases to the Operating Account. Borrower agrees that until repayment of the Loan in full, Borrower shall open and maintain the Operating Account with Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 **<u>Debt Service Coverage Ratio</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;(a) At all times Borrower shall maintain a Debt Service Coverage Ratio of at least 1.25:1.0. Contemporaneous with each annual financial statement due under Section ‎5.1 hereof, Borrower shall furnish to Lender a Debt Service Coverage Ratio certification in the form attached hereto as <u>Exhibit C</u> (the "<u>Debt Service Coverage Certificate</u>"). If Lender at any time, shall determine, based on any Debt Service Coverage Certificate, that the Debt Service Coverage Ratio is less than as required pursuant to this <u>Section ‎5.4</u>, Borrower shall within fifteen (15) days of Lender's written notice thereof, pay down the principal balance of the Note (including the applicable prepayment premium) in the amount set forth in Lender's notice, which is necessary to maintain the Debt Service Coverage Ratio of 1.25:1.0. It shall constitute an Event of Default if Borrower fails to pay such principal amount within such fifteen (15) day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) As used 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Debt Service</u>" means the payments of principal and interest due under the Note during the next 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Debt Service Coverage Ratio</u>" means the ratio obtained by dividing the Net Operating Income by the Debt Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Net Operating Income</u>" means gross rents actually received by Borrower from tenants of the Mortgaged Property for the prior twelve (12) months, minus the Vacancy Factor and all Operating Costs actually incurred for such 12-month period, all as determined by Lender in its reasonable discretion based on the most recent annual financial statement and rent roll delivered to Lender pursuant to <u>Section ‎5.1</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Operating Costs</u>" means all operating expenses of the Project, including, without limitation, all common area maintenance, insurance, security and real estate taxes incurred during the prior twelve (12) months, a property manager's fee equal to the greater of five percent (5%) of gross rents or the actual management fee and the monthly deposit into the TI/LC Account and the Capital Replacement Account (as such terms are defined in <u>Section ‎5.5</u> and <u>Section ‎5.7</u>, respectively, hereof) and excluding any non-recurring or discretionary expenses, all as determined by Lender in its reasonable discretion based on the most recent financial statement delivered to Lender pursuant to <u>Section ‎5.1</u> hereof. Depreciation and debt service shall not be included in Operating Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Vacancy Factor</u>" means the greater of the actual vacancy rate of the Buildings or 5%, multiplied by the proforma rents for the Buildings as set forth in the most recent appraisal for the Mortgaged 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;5.5 **<u>TI/LC Reserve</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;(a) Commencing on the first day of the first calendar month after the date hereof and continuing on the first day of each calendar month thereafter until the total of such monthly deposits made by Borrower equals $533,000.00, Borrower shall deposit $8,900.00 with Lender (such deposits, the "<u>TI/LC Reserve</u>"). The TI/LC Reserve shall be used solely for the costs of Tenant Improvements and Leasing Commissions in accordance with <u>Section ‎3.3</u> hereof. Borrower shall not have any obligations to replenish funds from the TI/LC Reserve after they are released to Borrower pursuant to <u>Section ‎3.3</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender shall maintain the TI/LC Reserve in an interest-bearing account at Lender (the "<u>TI/LC Account</u>"). All interest earned on the TI/LC Account shall accrue to the benefit of Borrower and be added to the TI/LC Reserve. Lender is not responsible for the investment performance of such account or the loss of the principal thereof by reason of any cause whatsoever other than Lender's gross negligence or willful misconduct. Borrower will be responsible for the payment of any reasonable costs associated with the establishment of and/or maintenance of the TI/LC Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 TI/LC Account is hereby pledged by Borrower to Lender as additional security for the Loan and shall not be subject to the direction or control of Borrower. Upon the occurrence and during the continuance of an Event of Default, Lender may apply the funds in the TI/LC Account on account of the sums owed by Borrower under the Loan Documents as Lender, in its sole discretion, may elect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 **<u>Debt Service Reserve</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;(a) Upon its execution hereof, Borrower has deposited $400,000.00 (the "<u>Debt Service Reserve</u>") with Lender. The Debt Service Reserve shall be used solely to fund shortfalls in Net Operating Income needed to pay the monthly debt service on the Loan commencing October 1, 2020. At Borrower's request, if after October 1, 2020, there is a shortfall in the monthly Net Operating Income needed to pay the monthly debt service on the Loan, Lender shall advance funds from the Debt Service Reserve to pay the amount of the monthly shortfall. Upon the attainment, after October 1, 2020, of a Debt Service Coverage Ratio of 1.0:1.0, the balance of the Debt Service Reserve shall be released to Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender shall hold the Debt Service Reserve in a segregated interest-bearing account (the "<u>Debt Service Account</u>"). All interest earned on the Debt Service Account shall accrue to the benefit of Borrower and be added to the Debt Service Reserve. Lender is not responsible for the investment performance of such account or the loss of the principal thereof by reason of any cause whatsoever other than Lender's gross negligence or willful misconduct. Borrower will be responsible for the payment of any reasonable costs associated with the establishment of and/or maintenance of such account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Debt Service Account is hereby pledged by Borrower to Lender as additional security for the Loan and shall not be subject to the direction or control of Borrower. Upon the occurrence and during the continuance of an Event of Default, Lender may apply the funds in the Debt Service Account on account of the sums owed by Borrower under the Loan Documents as Lender, in its sole discretion, may elect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 **<u>Capital Replacement Reserve</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;(a) Commencing on the first day of the first calendar month after the date hereof and continuing on the first day of each calendar month thereafter, Borrower shall deposit $2,059.50 with Lender (such deposits, the "<u>Capital Replacement Reserve</u>"). The Capital Replacement Reserve shall be used solely for the costs of repairs, improvements, alterations, additions or replacements to the Mortgaged Property which, under generally accepted accounting principles, consistently applied, are properly classified as capital expenditures or capital improvements (each a "<u>Capital Improvement</u>" and collectively, the "<u>Capital Improvements</u>"). Notwithstanding the foregoing, Capital Improvements shall <u>not</u> include: (A) costs of routine maintenance; (B) costs of salaries, benefits and administrative expenses related to the employment of officers and employees of Borrower; (C) the costs of any items for which Borrower is reimbursed by insurance or otherwise; (D) the costs of any landscaping work; or (E) tenant improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Borrower may request a reimbursement or a disbursement from the Capital Replacement Reserve not more than once in any calendar month, subject to the following 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon completion or purchase and installation in the Mortgaged Property of any Capital Improvement, Borrower shall make a written request to Lender for reimbursement or payment therefor from the Capital Replacement Reserve, which request shall be accompanied by: (1) a certification from Borrower that such Capital Improvement has been completed or purchased and installed in the Mortgaged Property; (2) copies of third party invoices therefor; and (3) copies of releases of mechanics liens from such third parties (or in lieu thereof for payments of Capital Improvements costing $10,000.00 or less or for items which are not lienable, cancelled checks or the third-party vendor's invoice marked "paid");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender has verified to its reasonable satisfaction, at Borrower's expense, that the Capital Improvement for which reimbursement is requested has been completed or installed in the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Event of Default exists; 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There are sufficient funds in the Capital Replacement Reserve to pay for the Capital Improvement for which reimbursement is requested or, if there are insufficient funds in the Capital Replacement Reserve, Borrower has paid toward the cost of such Capital Improvements or deposited to the Capital Replacement Reserve the difference between the funds in the Capital Replacement Reserve and the cost of the Capital Improvement for which payment is requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender shall maintain the Capital Replacement Reserve in an interest-bearing account at Lender (the "<u>Capital Replacement Account</u>"). All interest earned on such account shall accrue to the benefit of Borrower and be added to the Capital Replacement Reserve. Lender is not responsible for the investment performance of such account or the loss of the principal thereof by reason of any cause whatsoever other than Lender's gross negligence or willful misconduct. Borrower will be responsible for the payment of any reasonable costs associated with the establishment of and/or maintenance of the Capital Replacement Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Capital Replacement Account is hereby pledged by Borrower to Lender as additional security for the Loan and shall not be subject to the direction or control of Borrower. Upon the occurrence and during the continuance of an Event of Default, Lender may apply the funds in the Capital Replacement Reserve on account of the sums owed by Borrower under the Loan Documents as Lender, in its sole discretion, may elect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Release of the Parking Lot Area</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;6.1 **<u>Release</u>**. Provided no Event of Default has occurred and is continuing, at Borrower's request, Lender agrees to release from the lien of the Loan Documents for no consideration, that portion of the Mortgaged Property as described on <u>Exhibit D</u> attached hereto (the "<u>Release Parcel</u>"), 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower gives Lender at least thirty (30) days' prior written notice requesting the release;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Release Parcel is subject to an agreement of sale with Septa or a ground lease with Septa (conditioned upon Lender's approval thereof) and Septa or Borrower is obligated, whether Septa purchases or leases the Release Parcel, to construct a multi-story parking garage thereon solely for parking for patrons of Septa's adjoining regional rail station and Borrower's tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Debt Service Coverage Ratio at such time, is at least 1.25:1.0 based on a current rent roll and operating statement for the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Release Parcel is being sold to Septa and at the time of the release, the TI/LC Reserve has not been fully funded or the Capital Replacement Reserve is less than $100,000.00 at the time of the release, Borrower shall pay from the proceeds of such sale, after payment of any third party closing costs and any sums owed by Borrower to 165 Township Line, L.P. ("<u>Seller</u>") pursuant to that certain Agreement Regarding Development, Refinance or Sale of Real Property of even date herewith (and Borrower agrees that it shall not amend the Development Agreement so as to increase any amount owed to Seller), the amounts necessary to fully fund the TI/LC Reserve to $533,000 and the Capital Replacement Reserve to $100,000, as determined by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Release Parcel shall have been either (1) subdivided from the remainder of the Mortgaged Property pursuant to a subdivision plan reasonably satisfactory to Lender in accordance with all applicable laws, including, without limitation, those pertaining to zoning and building, and the balance of the Mortgaged Property shall comply (either by right or as a legal non-conforming use) with all applicable laws including, but not limited to, those laws pertaining to density, access, parking, setbacks and separate tax assessment; or (2) ground leased to Septa pursuant to a ground lease in form and content reasonably satisfactory to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The loss of parking spaces during the construction of the parking garage shall not cause a violation of any tenant lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Borrower enters into such easement agreements in form and content as may be reasonably required by Lender in favor of the Mortgaged Property for access and utilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Borrower enters into an easement agreement with Septa granting the Mortgaged Property access to and the use in the garage to be built by Septa on the Release Parcel, of at least the same number of parking spaces that will be lost as a result of the sale or ground lease of the Release Parcel to Septa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Borrower shall pay all of Lender's reasonable fees, costs and expenses incurred in connection with the release, including reasonable attorneys' fees and amounts incurred in connection with Lender's determination that the conditions of this <u>Section ‎6</u> have been 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;(j) All documents pertaining to the release shall be reasonably satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Miscellaneous</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;7.1 **<u>Cumulative Remedies; No Waiver by Lender</u>**. All of the remedies herein given to Lender or otherwise available to Lender shall be cumulative and may be exercised concurrently. No action or inaction by Lender under this Agreement shall be deemed or construed to be an election of remedies or a waiver of any right or remedy with regard to any then-existing default or any subsequent default, or shall preclude Lender from requiring the later performance of any waived condition. Lender shall not be deemed to have waived any right available to them unless such waiver is in writing and specifically refers to the right being waived; Borrower shall have no right to rely upon any action or inaction by Lender other than a specific writing as a waiver of any right or remedy of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 **<u>Governing Law; Binding Effect</u>**. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, and shall be governed by the laws of the Commonwealth of 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;7.3 **<u>Integration</u>**. This Agreement and the other Loan Documents between the parties hereto regarding the Loan and the matters described herein constitute the entire agreement of the parties hereto with respect to the Loan and there are no other terms, covenants, conditions, agreements or representations or warranties, oral or otherwise with respect thereto, of any kind whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 **<u>Captions</u>**. The captions preceding the text of the sections of this Agreement are used solely for convenience of reference. They are not intended to give full notice of the contents of this Agreement, and shall not affect its meaning, construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 **<u>Construction</u>**. This Agreement was negotiated by counsel to Lender and Borrower and shall not be construed against either party on the basis that a particular party drafted this Agreement. If any provision of this Agreement shall for any reason be held invalid or unenforceable, no other provision shall be affected thereby, and this Agreement shall be construed as if the invalid or unenforceable provision had never been a part of it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 **<u>Notices</u>**. All notices to be given by either party to the other hereunder shall be in writing and shall be deemed to have been duly given for all purposes when delivered in accordance with the notice provisions contained in the Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 **<u>Amendments</u>**. This Agreement may only be amended in writing, pursuant to an instrument executed by Lender and Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 **<u>USA Patriot Act Notice</u>**. Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>Act</u>"), Lender is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow Lender to identify Borrower in accordance with the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 **<u>Credit Reports</u>**. Borrower hereby authorizes Lender at any time, to obtain a credit report for Borrower at Lender's expense from one or more credit bureaus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 **<u>Time of the Essence</u>**. Whether or not elsewhere herein expressly stated, all dates and times for performance herein set forth shall be of the essence of 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;7.12 **<u>Jurisdiction; Venue and Waiver of Jury Trial</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;(a) For the purpose of enforcing the performance of Borrower's obligations hereunder and under the other Loan Documents, and otherwise in connection with the Loan, Borrower hereby consents to the jurisdiction and venue of the courts of the Commonwealth of Pennsylvania or of any federal court located in such state, including without limitation the Court of Common Pleas of Bucks County and the United States District Court for the Eastern District of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) BORROWER AND LENDER HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING HEREUNDER, UNDER THE OTHER LOAN DOCUMENTS OR OTHERWISE IN CONNECTION WITH 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;7.13 **<u>No Joint Venture</u>**. Nothing herein or the acts of the parties hereto shall be construed to create a partnership or joint venture between Borrower and Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.14 **<u>Publicity</u>**. Subject to Borrower's prior written approval (which shall not be unreasonably withheld, conditioned or delayed), Lender may use Borrower's name and the Mortgaged Property in any advertisement stating Lender is the source of financing for the Mortgaged Property.

[SIGNATURES ON FOLLOWING PAGE]

**IN WITNESS WHEREOF,** Borrower and Lender have caused this Agreement to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |
| **LENDER:** | **LENDER:** |
| **BENEFICIAL BANK**, a Pennsylvania financial institution | **BENEFICIAL BANK**, a Pennsylvania financial institution |
| By: | /s/ Paul F. Glanville |
|  | Paul F. Glanville, Senior Vice President |

---

**<u>EXHIBITS</u>**

EXHIBIT A – SCHEDULE OF PROJECT COSTS

EXHIBIT B – RENT ROLL

EXHIBIT C – DEBT SERVICE COVERAGE RATIO CERTIFICATE

EXHIBIT D – RELEASE PARCEL

## Exhibit 10.10

**Exhibit 10.10**

**FIRST AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT**

**THIS FIRST AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT** (this "**<u>Amendment</u>**") is made as of January 31, 2020, by and between **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB**, a federal savings bank ("**<u>Lender</u>**"), as successor by merger to **BENEFICIAL BANK**, a Pennsylvania financial institution.

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are parties to a Construction Loan and Security Agreement dated October 20, 2017 (the "**<u>Loan Agreement</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower and Lender shall have agreed to make certain amendments to the Loan Agreement, all on the terms hereinafter set forth.

**NOW, THEREFORE**, the parties hereto, intending to be legally bound hereby and incorporating the foregoing recitals by reference, covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Incorporation of Background; Definitions</u>**. The Background provisions set forth above are hereby incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Advance of Loan Proceeds Evidenced by TI/LC Note</u>**. Notwithstanding anything to the contrary contained in <u>Section 3.3</u> of the Loan Agreement, all of the Loan proceeds evidenced by the TI/LC Note shall be advanced to Borrower on the date hereof by depositing such Loan proceeds into the Operating Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Modification of Section 5.5</u>**. <u>Section 5.5(a)</u> of the Loan Agreement is hereby deleted and replaced in its entirety 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;(a) Commencing on the first day of the first calendar month after the date hereof and continuing on the first day of each calendar month thereafter until the date, if ever, that Wells Fargo ceases to have any right to early terminate its lease with Borrower, Borrower shall deposit $8,900.00 with Lender (such deposits, the "**<u>TI/LC Reserve</u>**"). The TI/LC Reserve shall be used solely for the costs of Tenant Improvements and Leasing Commissions in accordance with <u>Section 3.3</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Release of Debt Service Reserve</u>**. <u>Section 5.6</u> of the Loan Agreement is hereby deleted and replaced in its entirety as follows:

Upon execution of the Loan Agreement, Borrower deposited $400,000 (the "<u>Debt Service Reserve</u>") with the Lender. The Debt Service Reserve was held in a segregated interest bearing account (the "<u>Debt Service Account</u>"). All interest earned on the Debt Service Account accrued to the benefit of Borrower and was added to the Debt Service Reserve.

The Debt Service Reserve shall be released by Lender to Borrower on the date hereof, by depositing it into the Operating Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Representations and Warranties of Borrower</u>**. Borrower hereby represents and warrants to Lender 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) all of the representations and warranties contained in the Loan Agreement remain true and correct in all material respects as of the date of this Amendment;

&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 Loan Documents, as modified hereby, are valid, binding and enforceable; no event of default exists and no condition has occurred, which, with the giving of notice or the lapse of time would constitute an Event of Default;

&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 outstanding principal balance of the Note as of the date hereof (prior to the advance of the proceeds evidenced by the TI/LC Note) is $8,322,314.80; 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) it has no set off, defense or counterclaim to its obligations under the Note and the other Loan Documents, all of which documents remain binding upon Borrower, unmodified and in full force and effect, except as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Release</u>**. Borrower hereby releases any claim which it may have against Lender or its agents with respect to the Loan or any of the Loan Documents, which Borrower now has or may have, from October 20, 2017 to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Modification Fee and Expenses</u>**. In consideration of Lender's execution of this Amendment, Borrower shall pay all of Lender's reasonable third party costs incurred in connection with this Amendment, including, without limitation, reasonable counsel fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Conflicts</u>**. If any of the provisions of this Amendment conflict with the provisions of the Loan Agreement, the provisions of this Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Governing Law; Binding Effect</u>**. This Amendment shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania, and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>No Other Modifications</u>**. Except as expressly modified hereby, the Loan Agreement remains unmodified and in full force and effect, and is enforceable against Borrower in accordance with its terms. Without limiting the generality of the preceding sentence, all rights and remedies of Lender under the Loan Agreement survive the making of this Amendment and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Captions</u>**. The captions contained herein are not a part of this Amendment; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Counterparts</u>**. This Amendment may be executed in one or more counterparts, each of which shall have the force and effect of an original, and all of which shall constitute but one document. Electronic pdf copies of this Amendment shall be deemed originals for the purpose of determining the enforceability of this Amendment.

**IN WITNESS WHEREOF**, Borrower and Lender have caused this Amendment to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |
| **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul Glanville |
|  | Paul Glanville, |
|  | Senior Vice President |

---

## Exhibit 10.11

**Exhibit 10.11**

**SECOND AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT**

**THIS SECOND AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT** (this "**<u>Amendment</u>**") is made as of October 24, 2024, by and between **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB**, a federal savings bank ("**<u>Lender</u>**").

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are parties to a Construction Loan and Security Agreement dated October 20, 2017 as amended by a First Amendment dated January 31, 2020 (collectively, the "**<u>Loan Agreement</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower and Lender shall have agreed to make certain amendments to the Loan Agreement, all on the terms hereinafter set forth.

**NOW, THEREFORE**, the parties hereto, intending to be legally bound hereby and incorporating the foregoing recitals by reference, covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Incorporation of Background; Definitions</u>**. The Background provisions set forth above are hereby incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Debt Service Reserve</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;(a) Upon its execution hereof, Borrower has deposited $397,318 (the "**<u>Debt Service Reserve</u>**") with Lender. The Debt Service Reserve shall be used solely to fund shortfalls in Net Operating Income needed to pay the monthly debt service on the Loan commencing November 1, 2024. At Borrower's request, if there is a shortfall in the monthly Net Operating Income needed to pay the monthly debt service on the Loan, Lender shall advance funds from the Debt Service Reserve to pay the amount of the monthly shortfall.

&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) Lender shall hold the Debt Service Reserve in a segregated interest bearing account (the "**<u>Debt Service Account</u>**"). All interest earned on the Debt Service Account shall accrue to the benefit of Borrower and be added to the Debt Service Reserve. Lender is not responsible for the investment performance of such account or the loss of the principal thereof by reason of any cause whatsoever other than Lender's gross negligence or willful misconduct. Borrower will be responsible for the payment of any reasonable costs associated with the establishment of and/or maintenance of such account.

&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 Debt Service Account is hereby pledged by Borrower to Lender as additional security for the Loan and shall not be subject to the direction or control of Borrower. Upon the occurrence and during the continuance of an Event of Default, Lender may apply the funds in the Debt Service Account on account of the sums owed by Borrower under the Loan Documents as Lender, in its sole discretion, may elect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties of Borrower</u>**. Borrower hereby represents and warrants to Lender 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) all of the representations and warranties contained in the Loan Agreement remain true and correct in all material respects as of the date of this Amendment;

&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 Loan Documents, as modified hereby and by the amendments to each of the Acquisition Note and TI/LC Note of even date herewith, are valid, binding and enforceable; no event of default exists and no condition has occurred, which, with the giving of notice or the lapse of time would constitute an Event of Default;

&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) as of the date hereof: the outstanding principal balance of the Acquisition Note is $7,280,756.36; and the outstanding principal balance of the TI/LC Note is $608,299.01; 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) it has no set off, defense or counterclaim to its obligations under the Note and the other Loan Documents, all of which documents remain binding upon Borrower, unmodified and in full force and effect, except as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Extension of Maturity Date</u>**. The Maturity Date of the Loan has been extended to April 1, 2025 pursuant to First Amendments to each of the Acquisition Note and TI/LC Note of even date herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Release</u>**. Borrower hereby releases any claim which it may have against Lender or its agents with respect to the Loan or any of the Loan Documents, which Borrower now has or may have, from October 20, 2017 to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Lender's Fee and Expenses</u>**. In consideration of Lender's execution of this Amendment, Borrower shall pay all of Lender's reasonable third party costs incurred in connection with this Amendment, including, without limitation, reasonable counsel fees and a $6.50 flood search fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Conflicts</u>**. If any of the provisions of this Amendment conflict with the provisions of the Loan Agreement, the provisions of this Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Governing Law; Binding Effect</u>**. This Amendment shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania, and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>No Other Modifications</u>**. Except as expressly modified hereby, the Loan Agreement remains unmodified and in full force and effect, and is enforceable against Borrower in accordance with its terms. Without limiting the generality of the preceding sentence, all rights and remedies of Lender under the Loan Agreement survive the making of this Amendment and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Captions</u>**. The captions contained herein are not a part of this Amendment; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Counterparts</u>**. This Amendment may be executed in one or more counterparts, each of which shall have the force and effect of an original, and all of which shall constitute but one document. Electronic pdf copies of this Amendment shall be deemed originals for the purpose of determining the enforceability of this Amendment.

[Remainder of page left blank]

**IN WITNESS WHEREOF**, Borrower and Lender have caused this Amendment to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |
| **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville |
|  | Paul F. Glanville |
|  | Senior Vice President |

---

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| **LARRY BOTEL** |

---

STATE OF NEW YORK : <br> : SS <br> COUNTRY OF NEW YORK :

On the 24th day of October in the year 2024 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

LESLIE ALWADISH

Notary Public, State of New York

NO. 01AL4852847

Qualified in New York County

Commission Expires Feb. 10, 2026

## Exhibit 10.12

**Exhibit 10.12**

**THIRD AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT**

**THIS THIRD AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT** (this "**<u>Amendment</u>**") is made as of April 8, 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB**, a federal savings bank ("**<u>Lender</u>**").

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are parties to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment to Construction Loan and Security Agreement dated January 31, 2020 and a Second Amendment to Construction Loan and Security Agreement dated October 24, 2024 (collectively, the "**<u>Loan Agreement</u>**")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower and Lender shall have agreed to make certain amendments to the Loan Agreement, all on the terms hereinafter set forth.

**NOW, THEREFORE**, the parties hereto, intending to be legally bound hereby and incorporating the foregoing recitals by reference, covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Incorporation of Background; Definitions</u>**. The Background provisions set forth above are hereby incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Additional Debt Service Reserve</u>**. Upon its execution hereof, Borrower has deposited an additional sum in the amount of $183,604.00 with Lender, which additional amount is deemed part of the Debt Service Reserve and has been deposited into the Debt Service Account (subject to the terms and conditions with respect thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties of Borrower</u>**. Borrower hereby represents and warrants to Lender 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) all of the representations and warranties contained in the Loan Agreement remain true and correct in all material respects as of the date of this Amendment;

&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 Loan Documents, as modified hereby and by the amendments to each of the Acquisition Note and TI/LC Note of even date herewith, are valid, binding and enforceable; no event of default exists and no condition has occurred, which, with the giving of notice or the lapse of time would constitute an Event of Default;

&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) as of the date hereof: the outstanding principal balance of the Acquisition Note is $7,211,614; and the outstanding principal balance of the TI/LC Note is $587,512; 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) it has no set off, defense or counterclaim to its obligations under the Note and the other Loan Documents, all of which documents remain binding upon Borrower, unmodified and in full force and effect, except as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Extension of Maturity Date</u>**. The Maturity Date of the Loan has been extended to July 1, 2025 pursuant to Second Amendments to each of the Acquisition Note and TI/LC Note of even date herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Release</u>**. Borrower hereby releases any claim which it may have against Lender or its agents with respect to the Loan or any of the Loan Documents, which Borrower now has or may have, from October 20, 2017 to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Lender's Fee and Expenses</u>**. In consideration of Lender's execution of this Amendment, Borrower shall pay all of Lender's reasonable third party costs incurred in connection with this Amendment, including, without limitation, reasonable counsel fees and a $6.50 flood search fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Conflicts</u>**. If any of the provisions of this Amendment conflict with the provisions of the Loan Agreement, the provisions of this Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Governing Law; Binding Effect</u>**. This Amendment shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania, and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>No Other Modifications</u>**. Except as expressly modified hereby, the Loan Agreement remains unmodified and in full force and effect, and is enforceable against Borrower in accordance with its terms. Without limiting the generality of the preceding sentence, all rights and remedies of Lender under the Loan Agreement survive the making of this Amendment and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Captions</u>**. The captions contained herein are not a part of this Amendment; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Counterparts</u>**. This Amendment may be executed in one or more counterparts, each of which shall have the force and effect of an original, and all of which shall constitute but one document. Furthermore, a facsimile or electronic image transmission signature (including, without limitation, portable data format (.pdf), DocuSign and AdobeSign) of any of the parties hereto on any counterpart may be relied upon as an original signature and shall be deemed an original for the purpose of determining the enforceability of this Amendment.

[Remainder of page left blank]

**IN WITNESS WHEREOF**, Borrower and Lender have caused this Amendment to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |
| **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville |
|  | Paul F. Glanville, |
|  | Senior Vice President |

---

[Remainder of page intentionally left blank:<br> Joinder/Acknowledgement continue on following page]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| LARRY BOTEL |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 8th day of April in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

## Exhibit 10.13

**Exhibit 10.13**

**FOURTH AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT**

**THIS FOURTH AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT** (this "**<u>Amendment</u>**") is made as of July 21, 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB**, a federal savings bank ("**<u>Lender</u>**").

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are parties to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment to Construction Loan and Security Agreement dated January 31, 2020, a Second Amendment to Construction Loan and Security Agreement dated October 24, 2024, and a Third Amendment to Construction Loan and Security Agreement dated April 8, 2025 (collectively, the "**<u>Loan Agreement</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.All capitalized terms used herein without definition shall have the same meanings given to such terms in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Borrower and Lender shall have agreed to make certain amendments to the Loan Agreement, all on the terms hereinafter set forth.

**NOW, THEREFORE**, the parties hereto, intending to be legally bound hereby and incorporating the foregoing recitals by reference, covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Incorporation of Background; Definitions</u>**. The Background provisions set forth above are hereby incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Additional Debt Service Reserve</u>**. Upon its execution hereof, Borrower has deposited an additional sum in the amount of $183,053.00 with Lender, which additional amount is deemed part of the Debt Service Reserve and has been deposited into the Debt Service Account (subject to the terms and conditions with respect thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties of Borrower</u>**. Borrower hereby represents and warrants to Lender 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) all of the representations and warranties contained in the Loan Agreement remain true and correct in all material respects as of the date of this Amendment;

&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 Loan Documents, as modified hereby and by the amendments to each of the Acquisition Note and TI/LC Note of even date herewith, are valid, binding and enforceable; no event of default exists and no condition has occurred, which, with the giving of notice or the lapse of time would constitute an Event of Default;

&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) as of the date hereof: the outstanding principal balance of the Acquisition Note is $7,162,984.96; and the outstanding principal balance of the TI/LC Note is $572,809.59; 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) it has no set off, defense or counterclaim to its obligations under the Note and the other Loan Documents, all of which documents remain binding upon Borrower, unmodified and in full force and effect, except as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Extension of Maturity Date</u>**. The Maturity Date of the Loan has been extended to October 1, 2025 pursuant to Third Amendments to each of the Acquisition Note and TI/LC Note of even date herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Release</u>**. Borrower hereby releases any claim which it may have against Lender or its agents with respect to the Loan or any of the Loan Documents, which Borrower now has or may have, from October 20, 2017 to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Lender's Fee and Expenses</u>**. In consideration of Lender's execution of this Amendment, Borrower shall pay all of Lender's reasonable third party costs incurred in connection with this Amendment, including, without limitation, reasonable counsel fees, a $6.50 flood search fee, a $6,100.00 appraisal fee, and a $610.00 appraisal review fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Conflicts</u>**. If any of the provisions of this Amendment conflict with the provisions of the Loan Agreement, the provisions of this Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Governing Law; Binding Effect</u>**. This Amendment shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania, and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>No Other Modifications</u>**. Except as expressly modified hereby, the Loan Agreement remains unmodified and in full force and effect, and is enforceable against Borrower in accordance with its terms. Without limiting the generality of the preceding sentence, all rights and remedies of Lender under the Loan Agreement survive the making of this Amendment and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Captions</u>**. The captions contained herein are not a part of this Amendment; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Counterparts</u>**. This Amendment may be executed in one or more counterparts, each of which shall have the force and effect of an original, and all of which shall constitute but one document. Furthermore, a facsimile or electronic image transmission signature (including, without limitation, portable data format (.pdf), DocuSign and AdobeSign) of any of the parties hereto on any counterpart may be relied upon as an original signature and shall be deemed an original for the purpose of determining the enforceability of this Amendment.

[Remainder of page left blank]

**IN WITNESS WHEREOF**, Borrower and Lender have caused this Amendment to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 21<sup>st</sup> day of July in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity, and that by her signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

[Remainder of page intentionally left blank;<br> Joinder/Acknowledgement continues on following page]

---

| | |
|:---|:---|
| **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville |
|  | Paul F. Glanville, |
|  | Senior Vice President |

---

[Remainder of page intentionally left blank;<br> Joinder/Acknowledgement continues on following page]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| **LARRY BOTEL** |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 21<sup>st</sup> day of July in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

## Exhibit 10.14

**Exhibit 10.14**

**FIFTH AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT**

**THIS FIFTH AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT** (this "**<u>Amendment</u>**") is made as of October <u>15</u> 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB,** a federal savings bank ("**<u>Lender</u>**").

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are parties to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment to Construction Loan and Security Agreement dated January 31, 2020, a Second Amendment to Construction Loan and Security Agreement dated October 24, 2024, a Third Amendment to Construction Loan and Security Agreement dated April 8, 2025, and a Fourth Amendment to Construction Loan and Security Agreement dated July 21, 2025 (collectively, the "**<u>Loan Agreement</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.All capitalized terms used herein without definition shall have the same meanings given to such terms in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Borrower and Lender shall have agreed to make certain amendments to the Loan Agreement, all on the terms hereinafter set forth.

**NOW, THEREFORE,** the parties hereto, intending to be legally bound hereby and incorporating the foregoing recitals by reference, covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Incorporation of Background; Definitions</u>**. The Background provisions set forth above are hereby incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Additional Debt Service Reserve</u>**. Upon its execution hereof, Borrower has deposited an additional sum in the amount of $60,758.00 with Lender, which additional amount is deemed part of the Debt Service Reserve and has been deposited into the Debt Service Account (subject to the terms and conditions with respect thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties of Borrower</u>**. Borrower hereby represents and warrants to Lender 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) all of the representations and warranties contained in the Loan Agreement remain true and correct in all material respects as of the date of this Amendment;

&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 Loan Documents, as modified hereby and by the amendments to each of the Acquisition Note and TI/LC Note of even date herewith, are valid, binding and enforceable; no event of default exists and no condition has occurred, which, with the giving of notice or the lapse of time would constitute an Event of Default:

&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) as of the date hereof: the outstanding principal balance of the Acquisition Note is $7.113.866.60: and the outstanding principal balance of the TI/LC Note is $560,027.91: 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) it has no set off, defense or counterclaim to its obligations under the Note and the other Loan Documents, all of which documents remain binding upon Borrower, unmodified and in full force and effect, except as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Extension of Maturity Date</u>**. The Maturity Date of the Loan has been extended to November 1, 2025 pursuant to Fourth Amendments to each of the Acquisition Note and TI/LC Note of even date herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Release</u>**. Borrower hereby releases any claim which it may have against Lender or its agents with respect to the Loan or any of the Loan Documents, which Borrower now has or may have, from October 20, 2017 to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Lender's Fee and Expenses</u>**. In consideration of Lender's execution of this Amendment, Borrower shall pay all of Lender's reasonable third party costs incurred in connection with this Amendment, including, without limitation, reasonable counsel fees and a $6.50 flood search fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Conflicts</u>**. If any of the provisions of this Amendment conflict with the provisions of the Loan Agreement, the provisions of this Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Governing Law; Binding Effect</u>**. This Amendment shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania, and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>No Other Modifications</u>**. Except as expressly modified hereby, the Loan Agreement remains unmodified and in full force and effect, and is enforceable against Borrower in accordance with its terms. Without limiting the generality of the preceding sentence, all rights and remedies of Lender under the Loan Agreement survive the making of this Amendment and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Captions</u>**. The captions contained herein are not a part of this Amendment; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Counterparts</u>**. This Amendment may be executed in one or more counterparts, each of which shall have the force and effect of an original, and all of which shall constitute but one document. Furthermore, a facsimile or electronic image transmission signature (including, without limitation, portable data format (.pdf), DocuSign and AdobeSign) of any of the parties hereto on any counterpart may be relied upon as an original signature and shall be deemed an original for the purpose of determining the enforceability of this Amendment.

[Remainder of page left blank]

**IN WITNESS WHEREOF,** Borrower and Lender have caused this Amendment to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC,** A Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC,** A Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the <u>15<sup>th</sup></u> day of October in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

[Remainder of page intentionally left blank:<br> Joinder/Acknowledgement continues on following page]

---

| | |
|:---|:---|
| **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville |
|  | Paul F. Glanville, |
|  | Senior Vice President |

---

[Remainder of page intentionally left blank;<br> Joinder/Acknowledgement continues on following page]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect: Guarantor has no defenses to such documents: and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| **LARRY BOTEL** |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the <u>15<sup>th</sup></u> day of October in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

## Exhibit 10.15

**Exhibit 10.15**

**SIXTH AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT**

**THIS SIXTH AMENDMENT TO CONSTRUCTION LOAN AND SECURITY AGREEMENT** (this "**<u>Amendment</u>**") is made as of November <u>20</u> 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB,** a federal savings bank ("**<u>Lender</u>**").

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are parties to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment to Construction Loan and Security Agreement dated January 31, 2020, a Second Amendment to Construction Loan and Security Agreement dated October 24, 2024, a Third Amendment to Construction Loan and Security Agreement dated April 8, 2025, a Fourth Amendment to Construction Loan and Security Agreement dated July 21, 2025, and a Fifth Amendment to Construction Loan and Security Agreement dated October 15, 2025 (collectively, the "**<u>Loan Agreement</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower and Lender shall have agreed to make certain amendments to the Loan Agreement, all on the terms hereinafter set forth.

**NOW, THEREFORE,** the parties hereto, intending to be legally bound hereby and incorporating the foregoing recitals by reference, covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Incorporation of Background; Definitions</u>**. The Background provisions set forth above are hereby incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Additional Debt Service Reserve</u>**. Upon its execution hereof, Borrower has deposited an additional sum in the amount of $78,704.18 with Lender, which additional amount is deemed part of the Debt Service Reserve and has been deposited into the Debt Service Account (subject to the terms and conditions with respect thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Delinquent School Real Estate Taxes</u>**. As of the date hereof, Borrower acknowledges that the 2025/2026 school real estate taxes with respect to the Mortgaged Property are past due and delinquent, and Borrower acknowledges that the failure to timely pay the same constitutes an Event of Default (the "**<u>School RE Taxes Default</u>**"). Lender hereby waives the School RE Taxes Default, but only for the period commencing as of the date hereof and expiring on the Maturity Date. Prior to the Maturity Date, Borrower shall pay in full the 2025/2026 school real estate taxes, together with all penalties, fees, interest and other charges due in connection therewith to the applicable taxing authority (collectively, the "**<u>2025/2026 School RE Taxes</u>**"), and in the event Borrower fails to pay the same prior to the Maturity Date, the same shall constitute an immediate Event of Default, without notice or opportunity to cure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>IPO and Sale of a Portion of the Mortgaged Property</u>**. As of the date hereof, in connection with a proposed initial public offering (the "**<u>JOSS IPO</u>**") of shares in JOSS Realty REIT, Inc., a Maryland corporation (the "**<u>REIT</u>**"), it is contemplated that all of the membership interests in Borrower will be transferred to JOSS REIT Holdings, LP, a Delaware limited partnership, which will be wholly-owned by the REIT, and in connection with the JOSS IPO, funds will be raised to, among other things, pay the 2025/2026 School RE Taxes prior to the Maturity Date. Within five (5) days following the consummation of the JOSS IPO, Borrower shall pay the 2025/2026 School RE Taxes. Furthermore, Borrower, as seller, and 165 Town Line Holdings LLC, a Pennsylvania limited liability company, as purchaser ("**<u>Purchaser</u>**"), have entered into that certain Agreement of Purchase and Sale dated June 20, 2025 (the "**<u>Sale Agreement</u>**") for the sale of a portion of the Mortgaged Property more particularly described in the Sale Agreement (the "**<u>Sale Parcel</u>**"), and in connection with the closing of the transactions contemplated under the Sale Agreement (the "**<u>Sale Agreement Closing</u>**"), all proceeds from the Sale Agreement Closing shall be paid to Lender. The parties acknowledge that, in connection with the Sale Agreement Closing and in the event Borrower has not previously consummated the IPO and paid the 2025/2026 School RE Taxes from the funds raised from the JOSS IPO (or otherwise), Borrower shall be required to (and Borrower shall) pay the 2025/2026 School RE Taxes from the proceeds of the Sale Agreement Closing, which will result in Lender receiving less than it otherwise would have received from the Sale Agreement Closing (had the 2025/2026 School RE Taxes previously been paid). Therefore, in the event Borrower has not previously consummated the IPO and paid the 2025/2026 School RE Taxes from the funds raised from the JOSS IPO (or otherwise) prior to the Sale Agreement Closing and Borrower pays the 2025/2026 School RE Taxes from the proceeds of the Sale Agreement Closing, Borrower shall pay to Lender an amount equal to the 2025/2026 School RE Taxes on the earlier to occur of (a) five (5) days following the consummation of the JOSS IPO and (b) prior to the Maturity Date (notwithstanding anything set forth herein to the contrary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Representations and Warranties of Borrower</u>**. Borrower hereby represents and warrants to Lender 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) all of the representations and warranties contained in the Loan Agreement remain true and correct in all material respects as of the date of this Amendment;

&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 Loan Documents, as modified hereby and by the amendments to each of the Acquisition Note and TI/LC Note of even date herewith, are valid, binding and enforceable; except as expressly set forth herein, no event of default exists and no condition has occurred, which, with the giving of notice or the lapse of time would constitute an Event of Default;

&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) as of the date hereof: the outstanding principal balance of the Acquisition Note is $7,096,252.68; and the outstanding principal balance of the TI/LC Note is $560,027.91; 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) it has no set off, defense or counterclaim to its obligations under the Note and the other Loan Documents, all of which documents remain binding upon Borrower, unmodified and in full force and effect, except as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Extension of Maturity Date</u>**. The Maturity Date of the Loan has been extended to January 1, 2026 pursuant to Fourth Amendments to each of the Acquisition Note and TI/LC Note of even date herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Release</u>**. Borrower hereby releases any claim which it may have against Lender or its agents with respect to the Loan or any of the Loan Documents, which Borrower now has or may have, from October 20, 2017 to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Lender's Fee and Expenses</u>**. In consideration of Lender's execution of this Amendment, Borrower shall pay all of Lender's reasonable third party costs incurred in connection with this Amendment, including, without limitation, reasonable counsel fees and a $7.50 flood search fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Conflicts</u>**. If any of the provisions of this Amendment conflict with the provisions of the Loan Agreement, the provisions of this Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Governing Law; Binding Effect</u>**. This Amendment shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania, and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>No Other Modifications</u>**. Except as expressly modified hereby, the Loan Agreement remains unmodified and in full force and effect, and is enforceable against Borrower in accordance with its terms. Without limiting the generality of the preceding sentence, all rights and remedies of Lender under the Loan Agreement survive the making of this Amendment and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Captions</u>**. The captions contained herein are not a part of this Amendment; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Counterparts</u>**. This Amendment may be executed in one or more counterparts, each of which shall have the force and effect of an original, and all of which shall constitute but one document. Furthermore, a facsimile or electronic image transmission signature (including, without limitation, portable data format (.pdf), DocuSign and AdobeSign) of any of the parties hereto on any counterpart may be relied upon as an original signature and shall be deemed an original for the purpose of determining the enforceability of this Amendment.

[Remainder of page left blank]

**IN WITNESS WHEREOF,** Borrower and Lender have caused this Amendment to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the <u>20<sup>th</sup></u> day of November in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

[Remainder of page intentionally left blank;<br> Joinder/Acknowledgement continues on following page]

[Signature Page to Sixth Amendment to Construction Loan and Security Agreement (165 Township Line Road)]

---

| | |
|:---|:---|
| **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Sean Finnegan |
|  | Sean Finnegan, |
|  | Senior Vice President |

---

[Remainder of page intentionally left blank;<br> Joinder/Acknowledgement continues on following page]

[Signature Page to Sixth Amendment to Construction Loan and Security Agreement (165 Township Line Road)]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| **LARRY BOTEL** |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the <u>20<sup>th</sup></u> day of November in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

[Signature Page to Sixth Amendment to Construction Loan and Security Agreement (165 Township Line Road)]

## Exhibit 10.16

**Exhibit 10.16**

---

| | | |
|:---|:---|:---|
| **Prepared by and Return to:** |  |  |
| David A. Ebby, Esq. |  |  |
| Drinker Biddle & Reath LLP |  |  |
| One Logan Square, Suite 2000 |  |  |
| Philadelphia, PA 19103-6966 |  |  |
| 215-988-2700 |  |  |
| Tax Parcel No: 31-00-26662-00-1 | **MONTGOMERY COUNTY COMMISSIONERS REGISTRY** |  |
|  | **31-00-26662-00-1 CHELTENHAM** |  |
|  | **165 TOWNSHIP LINE RD** |  |
|  | **165 TOWNSHIP LINE LP** | **$15.00** |
|  | **B 168 U 001 L 4331 DATE: 10/31/2017** | **MY** |

---

**<u>OPEN-END MORTGAGE AND SECURITY AGREEMENT</u>**<br>**<u>(THIS MORTGAGE SECURES FUTURE ADVANCES)</u>**

**THIS OPEN-END MORTGAGE AND SECURITY AGREEMENT** ("<u>Mortgage</u>") is dated as of October <u>20</u> 2017, but made effective as of October <u>20</u>, 2017, by **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company ("<u>Mortgagor"</u>), having an address at having an address at c/o JOSS Realty Partners B LLC, 1345 Avenue of the Americas, 31st Floor, New York, NY, 10105, in favor of **BENEFICIAL BANK,** a Pennsylvania financial institution ("<u>Mortgagee</u>"), having an address 1818 Beneficial Place, 1818 Market Street, 21st Floor, Philadelphia, PA 19103, Attn: Paul F. Glanville.

**<u>W I T N E S S E T H</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Mortgagor is the owner of certain real estate described more particularly on <u>Exhibit A</u> attached hereto (the "<u>Land</u>"), which is commonly known as 165 Township Line Road, Jenkintown, PA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. As evidenced by certain mortgage notes of even date, executed by Mortgagor in favor of Mortgagee, in the respective original principal amounts of $8,558,000.00 (the "<u>Acquisition Note</u>"), and $667,000.00 (the "<u>TI/LC Note</u>") (as the same may be amended, modified or restated from time to time, and any replacement or successor note or notes, the "<u>Notes</u>"), Mortgagor is indebted to the Mortgagee in the aggregate principal amount of $9,225,000.00, or so much thereof as may be advanced by Mortgagee to or for the benefit of Mortgagor, pursuant to a Construction Loan and Security Agreement of even date herewith among Mortgagor, as borrower, and Mortgagee, as lender (the "<u>Loan Agreement</u>"), with interest thereon at the rate and times, in the manner and according to the terms and conditions specified in the Notes, all of which are incorporated herein by reference.

**NOW, THEREFORE,** in consideration of the indebtedness, and as security for payment to Mortgagee of the principal with interest, and all other sums provided for in the Notes, this Mortgage, the Loan Agreement and all other documents evidencing and/or securing the Loan, and any extensions thereof and/or modifications thereto (such documents, collectively, the "<u>Loan Documents</u>") according to their respective terms and conditions and for performance of the agreements, conditions, covenants, provisions and stipulations contained herein and in the Loan Agreement, Mortgagor does hereby grant, convey and mortgage unto the Mortgagee the Land,

**TOGETHER WITH ALL OF MORTGAGOR'S RIGHT, TITLE AND INTEREST IN:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any and all buildings and improvements now or hereafter erected on the Land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any and all fixtures, appliances, machinery and equipment of any nature whatsoever, and other articles of personal property at any time now or hereafter installed in, attached to or situated in or upon the above described Land or any buildings and improvements now or hereafter erected thereon, or used or intended to be used in connection with the Land, or in the operation of the buildings and improvements, or dwellings situate thereon, whether or not the personal property is or shall be affixed thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) all building materials, fixtures, building machinery and building equipment delivered on site to the Land during the course of, or in connection with, construction of any buildings and improvements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any and all tenements, hereditaments and appurtenances belonging to the real estate or any part thereof hereby mortgaged or intended so to be, or in any way appertaining thereto, and all streets, alleys, passages, ways, water courses and all easements and covenants now existing or hereafter created for the benefit of Mortgagor or any subsequent owner or tenant of the Land over ground adjoining the Land and all rights to enforce the maintenance thereof, and all other rights, liberties, licenses, fees and privileges of whatsoever kind or character, and the reversions and remainders, income, rents, issues and profits arising therefrom, and all the estate, right, title, interest, property, possession, claim and demand whatsoever, at law or in equity, of Mortgagor in and to the Land or any part thereof. All of the foregoing interests are sometimes collectively referred to herein as the "<u>Mortgaged Property</u>".

**ALSO TOGETHER WITH** any and all awards heretofore and hereafter made to the present and all subsequent owners of the Mortgaged Property by any governmental or other lawful authorities for taking or damaging by eminent domain the whole or any part of the Mortgaged Property or any easement therein, including any awards for any changes of grade of streets, which said awards are hereby assigned to the Mortgagee, who is hereby authorized to collect and receive the proceeds of any such awards from such authorities and to give proper receipts and acquittances therefor, subject to Section 6 hereof to apply the same (after deduction of reasonable attorneys' fees and other costs of collecting the funds) toward the payment of the amount owing on account of this Mortgage and the Notes, notwithstanding that the amount owing thereon may not then be due and payable; and Mortgagor hereby agrees, upon request, to make, execute and deliver any and all assignments and other instruments sufficient for the purpose of assigning the aforesaid awards to Mortgagee, free, clear and discharged of any and all encumbrances of any kind of nature whatsoever. Mortgagor further agrees to give Mortgagee immediate notice of the actual or threatened commencement of any proceedings in the nature of eminent domain affecting all or any part of the Mortgaged Property, and will deliver to Mortgagee copies of any papers served upon Mortgagor in connection with any such proceedings.

**TO HAVE AND TO HOLD** the Mortgaged Property hereby conveyed or mentioned and intended so to be, unto Mortgagee, to its own use forever.

**PROVIDED ALWAYS,** and this instrument is upon the express condition that, if Mortgagor pays to Mortgagee the principal sum mentioned in the Notes, the interest thereon and all other sums payable by Mortgagor to Mortgagee as are secured hereby, in accordance with the provisions of the Notes, this Mortgage and the other Loan Documents, at the times and in the manner specified, without deduction, fraud or delay, and Mortgagor complies with all the terms and conditions contained herein and Mortgagor complies with all the terms and conditions contained in the other Loan Documents, then this Mortgage and the estate hereby granted shall cease and become void.

**MORTGAGOR COVENANTS** with the Mortgagee that until the indebtedness secured hereby is fully repaid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Payment and Performance</u>**: Mortgagor shall pay to Mortgagee, in accordance with the terms of the Notes and this Mortgage, the principal and interest, and other sums therein set forth; and shall comply with all the terms and conditions of the Notes and this Mortgage and the Loan 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;2. **<u>Maintenance of Mortgaged Property</u>**: Mortgagor shall abstain from and shall not permit the commission of waste in or about the Mortgaged Property and other than as contemplated by the Loan Agreement, including capital expenditures and tenant improvements shall not remove, or demolish, or alter the structural character of, any building hereafter erected on the Mortgaged Property. Without the prior written consent of Mortgagee, Mortgagor shall not permit the Mortgaged Property to become deserted or unguarded, and shall maintain the Mortgaged Property in good condition and repair damage by fire, other casualty or condemnation, reasonable wear and tear excepted.

&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. **<u>Indemnification</u>**: Mortgagor shall protect, indemnify and save harmless Mortgagee from and against all action, costs, actual losses, damages and expenses (including without limitation reasonable attorneys' fees and expenses), imposed upon or incurred by or asserted against Mortgagee and arising from any state of facts or circumstances existing prior to Mortgagee's acquiring title through foreclosure or a deed in lieu of foreclosure or due to any action or inaction of Mortgagor or any occupant of the Mortgaged Property by reason of: (i) the ownership of this Mortgage, the Mortgaged Property or any interest therein or receipt of any rents; (ii) any accident, injury to or death to persons or loss of or damage to property occurring in, on or about the Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (iii) any use or condition in, on or about the Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; and (iv) the performance of any labor or services or the furnishing of any materials or other property in respect of the Mortgaged Property or any part thereof. Any amounts payable to Mortgagee by reason of the application of this Paragraph shall be included in the indebtedness evidenced by the Notes and secured by the Mortgage, and shall become immediately due and payable and shall bear interest at the Default Rate (as defined in the Notes) from the date loss or damage is sustained by Mortgagee until paid. The obligations of Mortgagor under this Paragraph shall survive any satisfaction, assignment, foreclosure or delivery of a deed in lieu of foreclosure of this Mortgage for a period of twelve (12) months.

&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. **<u>Insurance</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;(a) Mortgagor shall keep the Mortgaged Property continuously insured during the term of this Mortgage and shall furnish the following to Mortgagee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Insurance against loss or damage by fire, vandalism, explosion and from such other hazards as are presently included in standard "special cause of loss" form insurance endorsements, and an endorsement providing that such insurance shall not be voided by reason of the occupancy by any tenant of the Mortgaged Property. The amount of such insurance shall be as reasonably required by Mortgagee from time to time, but not less than 100% of the "full replacement cost" of the buildings, structures, improvements and fixtures without deduction for depreciation (but excluding the value of roads, foundations and similar improvements). During any period while buildings and/or tenant improvements on the Mortgaged Property are being constructed or reconstructed, the fire insurance required pursuant to this Paragraph shall be in the form of a "builder's risk" policy on a completed value, non-reporting basis, including collapse and transit coverage, with deductibles and a soft cost endorsement in amounts reasonably satisfactory to Mortgagee and such other endorsements as Mortgagee may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Rent insurance against loss of income arising out of loss of damage by and from the hazards described in <u>Section 4(a)(i)</u> hereof, in an amount equal to one year's gross rental income to the owner of the Mortgaged Property, or, if appropriate, business interruption insurance in an amount as reasonably required by Mortgagee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Commercial general liability insurance on an "occurrence" basis against claims for bodily injury or death and property damage occurring upon, in or about the Mortgaged Property in such amounts as Mortgagee may from time to time reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Worker's compensation insurance in an amount equal to Mortgagor's full statutory liability and covering all of Mortgagor's employees wherever located and during any period while any buildings and/or tenant improvements on the Mortgaged Property are being constructed or reconstructed, worker's compensation insurance covering all persons employed in such construction or reconstruction, together with employer's liability insurance in such an amount as Mortgagee may from time to time reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Flood hazard insurance in the full replacement cost of all improvements constructed on the Land, or evidence reasonably satisfactory to Mortgagee that the Mortgaged Property is not located in a special flood hazard zone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Such other insurance on the Mortgaged Property, or any replacements or substitutions therefor, or additions thereto, and in such amounts as may from time to time reasonably be required by Mortgagee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) All insurance shall be subject to the reasonable approval of Mortgagee as to insurance companies, amounts, contents and form of policies and expiration dates, and shall contain a non-contributory mortgagee clause in favor of and satisfactory to Mortgagee excluding Mortgagee from the operation of any coinsurance clause contained in any such policy and, as to the policies required under subsections (i), (ii) and (v) above, naming Mortgagee as loss payee. The policy required under subsection (in) hereof shall name Mortgagee as an additional insured party. All such policies shall be issued by companies licensed in the State in which the Mortgaged Property is located and having a Best's financial rating of A or better and a size class rating of X or larger. Such policies shall provide for the payment of all costs and expenses incurred by Mortgagee in the event of any contested claim and shall not be canceled or otherwise terminated without at least thirty (30) days' prior written notice to Mortgagee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Mortgagor will deliver certificates evidencing such insurance, together with copies of such policies manually certified by the entity issuing such certificates to Mortgagee, and, not less than fifteen (15) days prior to the expiration date of each such policy, will deliver to Mortgagee a renewal policy or policies or certificates evidencing insurance if the policies are master policies marked "premium paid" or accompanied by other evidence of payment satisfactory to Mortgagee. Mortgagor will not permit any condition to exist on the Mortgaged Property which would invalidate the insurance thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If there occurs any loss or damage to the Mortgaged Property, Mortgagor will give prompt notice thereof to Mortgagee, and Mortgagee may make proof of loss thereof if not made promptly by Mortgagor. If an Event of Default has occurred and is continuing, Mortgagee may on behalf of Mortgagor adjust and compromise any claims under such insurance and collect and receive the proceeds thereof and endorse drafts, and Mortgagee is hereby irrevocably appointed attorney-in-fact of Mortgagor for such purposes. Otherwise, Mortgagor shall be permitted to make all proofs of claims and settle same. Each insurance company concerned is hereby authorized and directed to make payment under such policies of casualty and rent insurance, including return of unearned premiums, directly to Mortgagee instead of to Mortgagor and Mortgagee jointly, and Mortgagor appoints Mortgagee, irrevocably, as Mortgagor's attorney-in-fact to endorse any draft thereof. Notwithstanding the foregoing, if the claim is less than $250,000.00 and no Event of Default has occurred and is continuing, then Mortgagor shall have the right to settle such claim or use the proceeds for restoration of the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to the terms of <u>Section 6</u> below, Mortgagee shall have the right, at its sole discretion, to retain and apply the proceeds of any casualty insurance to reduction of the indebtedness secured hereby (without any prepayment premium) and/or to retain and apply the proceeds of any rent insurance on account of the payments of the regular monthly installments due under the Notes as they fall due, or to restoration or repair of the Mortgaged Property. If Mortgagee is not obligated pursuant to <u>Section 6</u> hereof, to release the insurance proceeds to Mortgagor and Mortgagee elects to apply the proceeds against the indebtedness secured hereby, if such proceeds are insufficient to repay the Loan in full, Mortgagee may, at its sole discretion, declare the entire outstanding principal balance of the Loan due and payable in ninety (90) days. If Mortgagee receives proceeds of rent loss or business interruption insurance beyond those required to be applied for the current month, Mortgagee may retain such additional proceeds in escrow, for the account of Mortgagor, and apply such proceeds on a monthly basis, provided that any such proceeds not needed to be applied to keep Mortgagor current and not in default hereunder during the reasonably estimated period of time when the rents from the Mortgaged Property shall be inadequate to provide Mortgagor with sufficient funds to pay Mortgagee the amounts falling due each month shall be paid to Mortgagor to pay the other expenses of the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Mortgagor shall promptly comply with and conform to all provisions of each insurance policy and all requirements of the insurers thereunder, applicable to Mortgagor or the Mortgaged Property, even if such compliance necessitates structural changes or improvements or results in interference with the use or enjoyment of the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If Mortgagee shall acquire title to the Mortgaged Property pursuant to proceedings under the Notes, this Mortgage, or a deed in lieu of foreclosure, then all of Mortgagor's estate, right, title and interest in and to all such policies, including unearned premiums relating solely to the Mortgaged Property and the proceeds thereof, shall vest in Mortgagee.

&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. **<u>Condemnation</u>**: If all or any portion of the Mortgaged Property is taken by eminent domain (or deed in lieu thereof), Mortgagee is hereby authorized to intervene in any such condemnation proceeding and to collect and receive the compensation paid therefor by the condemning authority and to give proper receipts and acquittances therefor. Any reasonable expenses incurred by Mortgagee in intervening in such action or collecting condemnation proceeds (including the cost of any independent appraisal) shall be reimbursed to Mortgagee first out of the condemnation proceeds prior to other payments or disbursements. In furtherance thereof, Mortgagor shall not enter into any agreement with the condemning authority permitting the taking of all or any portion of the Mortgaged Property without Mortgagee's prior written consent which consent shall not be unreasonably withheld. Mortgagor shall instruct the condemning authority to deliver the condemnation proceeds to Mortgagee, and if such authority delivers the proceeds to Mortgagor instead, Mortgagor will deliver the proceeds to Mortgagee immediately upon its receipt thereof. At Mortgagee's sole discretion, all condemnation proceeds shall be applied against the outstanding principal balance of the Loan (without any prepayment premium), or to the restoration of the Mortgaged Property in accordance with <u>Section 6</u> hereof.

&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. **<u>Restoration of the Mortgaged Property</u>**: In the event of a fire or other casualty to the Mortgaged Property or in the event of condemnation, notwithstanding anything in this Mortgage to the contrary, Mortgagee will consent to the use of the net proceeds of any insurance or condemnation award for restoration of the Mortgaged Property if (a) at all times relevant hereto no Event of Default is continuing under this Mortgage or any other Loan Document, (b) Mortgagee is reasonably satisfied that there are sufficient proceeds (including any sums deposited by Mortgagor with Mortgagee) to complete restoration of the improvements constructed on the Mortgaged Property to substantially the same value and character as existed prior to such damage, (c) Mortgagee is reasonably satisfied that restoration can be substantially completed at least ninety (90) days prior to the maturity date of the Notes, (d) the insurers do not deny liability as to the insureds, (e) Mortgagor's rent loss or business interruption insurance coverage (as applicable) and cash flow is sufficient to pay the monthly installments due under the Notes and the real estate taxes and the hazard insurance, between the date of occurrence of the casualty and the date of completion of the restoration work as estimated by Mortgagee in its reasonable discretion, and (f) Mortgagor complies with the following 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prior to commencement of restoration, the contracts, contractors, and plans and specifications for the restoration shall have been reasonably approved by Mortgagee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 net proceeds shall be deposited in a restricted account established by and in the name of Mortgagee (the "<u>Restoration Account</u>"). Prior to commencement of restoration, if the estimated cost of restoration, as reasonably determined by Mortgagee, exceeds the amount of insurance proceeds or condemnation proceeds awarded for the cost of such restoration, the amount of such excess shall be paid by Mortgagor to Mortgagee for deposit in a separate cash collateral account with Mortgagee and shall be expended before any funds in the Restoration Account. All insurance or condemnation proceeds, if any, remaining after completion of repairs or restoration shall be paid to Mortgagor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) At the time of any disbursement no Event of Default shall be in existence, no mechanics' or materialmen's liens shall have been filed and remain undischarged, and a satisfactory bring down of title insurance shall be delivered to Mortgagee; 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Disbursements shall be made in accordance with and subject to the terms and conditions contained in the Loan Agreement for Loan advances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Taxes and Other Charges</u>**: Mortgagor shall pay when due and payable and before interest or penalties are due thereon, all taxes, assessments, water and sewer rents and all other charges or claims which may be assessed, levied, or filed at any time against Mortgagor, the Mortgaged Property or any part thereof or against the interest of Mortgagee therein, or which by any present or future law may have priority over the indebtedness secured hereby either in lien or in distribution out of the proceeds of any judicial sale, and Mortgagor shall produce receipts for the payment thereof within thirty (30) days of the date such payments are due; provided that if Mortgagor in good faith and by appropriate legal action shall contest the validity of any such item, or the amount thereof unless such amount shall have been already paid to the applicable authority in connection with such contest, and shall have established on its books or by deposit of cash with Mortgagee, as Mortgagee may elect a reserve for the payment thereof in such amount as Mortgagee may reasonably require, then Mortgagor shall not be required to pay the item or to produce the required receipts while the reserve is maintained and so long as the contest operates to prevent collection, is maintained and prosecuted with diligence, and shall not have been terminated or discontinued adversely to Mortgagor. If such contest is terminated or discontinued adversely to Mortgagor, Mortgagor shall promptly (and in all events at least thirty (30) days before any of the Mortgaged Property may be sold because of non-payment of such tax or charge) pay, to the extent not already paid, such contested tax or charge and all costs and penalties and deliver evidence of such payment acceptable to Mortgagee promptly thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Installments for Insurance, Taxes and Other Charges</u>**: After and during the continuance of an Event of Default hereunder, at Mortgagee's written election: Mortgagor shall deposit with Mortgagee, with each payment of principal and interest, an amount equal to one- twelfth (1/12) of the annual real estate taxes, water and sewer rents, any special assessments, charges or claims, annual insurance premiums, and any other item which at any time may be or become a lien upon the Mortgaged Property prior to the lien of this Mortgage; and on demand from time to time Mortgagor shall pay to Mortgagee any additional sums necessary to pay such taxes and other items. No amount so paid shall be deemed to be trust funds but may be commingled with general funds of Mortgagee, and no interest shall be payable thereon. If, pursuant to any provision of this Mortgage, the whole amount of the unpaid principal debt becomes due and payable, Mortgagee shall have the right, at its election, to apply any amount so held against the entire indebtedness secured hereby in such order and amounts as Mortgagee in its sole discretion may elect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Security Agreement</u>**: This Mortgage constitutes a security agreement under the Uniform Commercial Code in effect in the state in which the Mortgaged Property is located and creates a security interest in the personal property included in the Mortgaged Property, Mortgagor shall execute, deliver, file and refile any financing statements or other security agreements Mortgagee may require from time to time to confirm the lien of this Mortgage with respect to such property. Without limiting the foregoing, Mortgagor irrevocably appoints Mortgagee attorney-in-fact for Mortgagor to execute, deliver and file such financing statements and other instruments for and on behalf of Mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Compliance with Law and Regulations</u>**: Mortgagor shall promptly comply with all applicable laws, ordinances, regulations and orders of all Federal, State, municipal and other governmental authorities relating to the Mortgaged Property within 30 days after written notice of such requirements are given to Mortgagor by such governmental authority; <u>provided</u>, <u>however,</u> that: (i) Mortgagor shall have the right, in good faith, to challenge any such requirement so long as Mortgagor pursues such challenge with all due diligence, in which event such 30-day period shall be extended until such challenge operates to suspend, under applicable law, Mortgagor's obligation to comply with such requirement has been resolved; and (ii) if such challenge is discontinued or is decided adversely to Mortgagor, then Mortgagor shall promptly comply with such requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Inspection; Appraisals and Environmental Audits</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;(a) Mortgagee and any persons authorized by Mortgagee shall have the right at any time, and from time to time, upon reasonable notice to Mortgagor, to enter the Mortgaged Property at reasonable hours to inspect and photograph its condition and state of repair.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if from time to time Mortgagee obtains appraisals and reappraisals and/or environmental audits of the Mortgaged Property as a result of any federal, state or local law applicable to Mortgagee, or pursuant to the written internal policy requirements of Mortgagee (but no more frequently than one time every three (3) years), then the fees and costs of such appraisals, reappraisal and/or audits shall be borne by Mortgagor, shall be due and payable upon notice to Mortgagor and Mortgagor's obligations to pay such fees and costs upon demand shall be secured by this Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) After and during the continuance of an Event of Default, Mortgagee, at its option, may cause an environmental audit and/or appraisal of the Mortgaged Property to be made at Mortgagor's expense by an environmental engineer and/or appraiser selected by Mortgagee, and Mortgagor's obligations to pay such expense upon demand shall be secured by this Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Declaration of No Set Off</u>**: Within ten (10) days after a request by Mortgagor or Mortgagee, the applicable party shall certify to the other party or to any proposed assignee of this Mortgage, in a writing duly acknowledged, the amount of principal, interest and other charges then owing on the obligation secured by this Mortgage and whether to its knowledge there are any setoffs or defenses against it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Due on Sale Clause</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;(a) Subject to Section 13(b) hereof, in the event of any sale, conveyance or other transfer of (1) all or any portion of the Mortgaged Property such that any party other than Mortgagor acquires any legal or beneficial interest in, or any right to possession of the Mortgaged Property (other than space leases in the Mortgaged Property with third party tenants entered into in accordance with the terms of that certain Assignment of Rents and Leases of even date herewith made by Mortgagor in favor of Mortgagee (the "<u>Assignment</u>")), or any part thereof; or (2) all or any direct or indirect interest in Mortgagor or in any entity owning any interest in Mortgagor, including transfers by operation of law (except for transfers of interests upon death or incapacity), Mortgagee may, at its option, declare the debt secured by this Mortgage to be immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding the foregoing, transfers of direct and indirect interests in Mortgagor or in any entity owning any interest in Mortgagor shall be permitted without Mortgagee's consent, <u>provided that</u>: (i) Guarantor, or if Guarantor becomes deceased or incapacitated, a person or entity satisfactory to Mortgagee in its sole discretion, continues to Control (as defined herein) the operations and management of Mortgagor; (ii) Mortgagor provides at least thirty (30) days' prior written notice to Mortgagee of such transfer which notice shall include copies of all draft documents effectuating such transfer, a statement detailing such transfer and if such transfer will result in one or more parties owning twenty percent (20%) or more of the direct or indirect ownership interests in Mortgagor, and such information regarding the transferee(s) as Mortgagee may reasonably request in order for Mortgagee to perform its necessary searches under OFAC, the Patriot Act, and all know your customer procedures of Mortgagee; (iii) Mortgagor shall provide to Mortgagee copies of all executed documentation evidencing such transfer within thirty (30) days of the effective date thereof; and (iv) the results of each OFAC, Patriot Act, and know your customer searches are satisfactory to Mortgagee in its sole discretion. Nothing in this section shall allow any transfer that would cause Mortgagee to be in violation of OFAC, the Patriot Act, or any similar laws. As used herein, <u>Control</u> or <u>Controlled</u>'' shall mean the power to direct or cause the direction of the management and policies of an entity, directly or indirectly, through the ownership of voting securities or other beneficial interest, entitlement to participate in or veto major decisions, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Mortgagor understands that, except as set forth in subsection (b) above, Mortgagee is under no obligation to consent to any transfer and that Mortgagee may, as a condition precedent to any approval of any transfer which Mortgagee may in its discretion decide to give, insist upon payment of a substantial fee, an increase in the interest rate payable on the mortgage debt, additional collateral and/or additional guarantees, or some other consideration satisfactory to Mortgagee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Subordinate Liens</u>**: Without the prior written consent of Mortgagee, Mortgagor shall not create or cause or permit to exist any lien on or security interest in the Mortgaged Property or any part thereof, and Mortgagor shall not otherwise incur any indebtedness for money borrowed to improve the Mortgaged Property or any part thereof. Any violation of the foregoing limitation, at the option of Mortgagee, shall be deemed an Event of Default hereunder if not cured within thirty (30) days after receipt of notice from Mortgagee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Right to Remedy Defaults</u>**: If Mortgagor fails to pay taxes, assessments, water and sewer charges or other lienable claims (except in the case of a contest as aforesaid) or insurance premiums, or fails to make necessary repairs or permits waste, or otherwise fails to comply with its obligations under this Mortgage or any of the other Loan Documents, then Mortgagee, at its election and after ten (10) days written notice to Mortgagor, shall have the right to make any payment or expenditure which Mortgagor should have made, or which Mortgagee deems commercially advisable to protect the security of this Mortgage or the Mortgaged Property, without prejudice to any of the Mortgagee's rights or remedies available hereunder or otherwise, at law or in equity. All such sums, as well as costs, advanced by Mortgagee pursuant to this Mortgage shall be due immediately from Mortgagor to Mortgagee, shall be secured hereby, and shall bear interest at the Default Rate (as defined in the Notes) from the date of payment by Mortgagee until the date of repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Remedies</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;(a) Upon the occurrence and during the continuance of an Event of Default, the entire unpaid balance of principal, accrued interest and all other sums secured by this Mortgage shall become immediately due and payable, at the option of Mortgagee, without further notice or demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) When the entire indebtedness shall become due and payable, either because of maturity of the Notes or because of the occurrence of any Event of Default, or otherwise, then forthwith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Foreclosure</u>**: Mortgagee may institute an action of mortgage foreclosure, or take such other action at law or in equity for the enforcement of this Mortgage and realization on the Mortgaged Property or any other security herein or elsewhere provided for, as the law may allow, and may proceed therein to final judgment and execution for the entire unpaid balance of the principal debt, with interest at the rate(s) stipulated in the Notes, together with all other sums due from Mortgagor in accordance with the provisions of the Notes, this Mortgage and the other Loan Documents, including all sums which may have been loaned by Mortgagee to Mortgagor after the date of this Mortgage, and all sums which may have been advanced by Mortgagee for taxes, water or sewer rents, other lienable charges or claims, insurance or repairs or maintenance, all costs of suit and attorneys' commission for fees and expenses actually incurred. Mortgagor authorizes Mortgagee at its option to foreclose this Mortgage subject to the rights (if any) of any tenants of the Mortgaged Property, and the failure to make any such tenants parties to any such foreclosure proceedings and to foreclose their rights will not be asserted by Mortgagor as a defense to any proceedings instituted by Mortgagee to recover the indebtedness secured hereby or any deficiency remaining unpaid after the foreclosure sale of the Mortgaged 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Possession</u>**: Mortgagee may enter into possession of the Mortgaged Property, with or without legal action, and, to the extent permitted by law, by force if necessary, or, in the alternative, Mortgagee shall be entitled to appointment of receiver without regard to (A) the solvency of Mortgagor or any other person liable for the debt secured hereby, or (B) whether there has been or may be any impairment of the value of the Mortgaged Property or any other collateral for the debt (Mortgagor acknowledges that the right to appointment of a receiver is a specific inducement to Mortgagee to enter into the transaction referred to in this Mortgage), and may rent the Mortgaged Property, or any part thereof, for such term or terms and on such other terms and conditions as Mortgagee or such receiver may deem commercially reasonable, in its sole discretion, collect all rentals (which term shall also include sums payable for use and occupation) and, after deducting all costs of collection and administration expense, apply the net rentals to the payment of taxes, water and sewer rents, other lienable charges and claims, insurance premiums and all other carrying charges, and to the maintenance, repair or restoration of the Mortgaged Property, or in reduction of the principal or interest, or both, hereby secured, in such order and amounts as Mortgagee or said receiver may elect; and for that purpose Mortgagor hereby assigns to Mortgagee all rentals and fees due and to become due under any existing or future leases or rights to use and occupation of the Mortgaged Property, as well as all rights and remedies provided in such leases or licenses or at law or in equity for the collection of the rentals. Any lease or license entered into by Mortgagee or said receiver pursuant to this Section shall survive foreclosure of this Mortgage and/or repayment of the Notes, except to die extent any applicable lease may provide otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Upon the occurrence of any Event of Default and during the continuance thereof, Mortgagee shall have the right, from time to time, to bring an appropriate action to recover any sums required to be paid by Mortgagor under the terms of this Mortgage, as they become due, without regard to whether or not the principal indebtedness or any other sums secured by the Notes and this Mortgage shall be due, and without prejudice to the right of Mortgagee thereafter to bring an action to foreclose this Mortgage or any other action for any Event of Default by Mortgagor existing at the time the earlier action was commenced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any real estate sold to satisfy the indebtedness secured hereby may be sold in one parcel, as an entirety, or in such parcels, and in such manner or order as Mortgagee, in its sole discretion, may elect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Neither Mortgagor nor any other person now or hereafter obligated for payment of all or any part of the sums now or hereafter secured by this Mortgage shall be relieved of such obligation by reason of the failure of Mortgagee to comply with any request of Mortgagor or of any other person so obligated to take action to foreclose on this Mortgage or otherwise enforce any provisions of the Mortgage or the Notes, or by reason of the release, regardless of consideration, of all or any part of the security held for the indebtedness secured by this Mortgage, or by reason of any agreement or stipulation between any subsequent owner of the Mortgaged Property and Mortgagee extending the time of payment or modifying the terms of the Mortgage or Notes without first having obtained the consent of Mortgagor or such other person; and in the latter event the Mortgagor and all such other persons shall continue to be liable to make payments according to the terms of any such extension or modification agreement, unless expressly released and discharged in writing by Mortgagee. No release of all or any part of the security as aforesaid shall in any way impair or affect the lien of this Mortgage or its priority over any subordinate lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The specific remedies set forth above are intended to be in addition to, and not in limitation of, such remedies as may be available to Mortgagee by statute, or under the applicable rules of civil procedure, or at common law. Mortgagee may exercise some or all of its remedies concurrently, including separate and concurrent actions on the Notes, this Mortgage, the other Loan Documents and any guaranty, to the extent it is permitted by law to do so. If Mortgagee shall fail to exercise any remedy it may have by reason of an Event of Default, such failure shall not constitute a waiver of such Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Notices</u>**: All notices to be given to a party hereunder shall be in writing, and shall be deemed to have been sufficiently given for all purposes when sent by registered or certified mail, return receipt requested, postage prepaid or by a recognized courier service with guaranteed overnight delivery, at such party's address as set forth in the caption to this Mortgage. Such notice shall be deemed given upon receipt or refusal, as applicable. Any notice of any change in address shall also be given in the manner set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Amendment</u>**: This Mortgage cannot be changed or amended except by agreement in writing signed by the party against whom enforcement of the change is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Parties Bound</u>**: This Mortgage shall be binding upon Mortgagor and its successors and assigns and shall inure to the benefit of Mortgagee, its successors and assigns. For purposes of this Mortgage, the neuter shall include the masculine and the feminine and the singular shall include the plural and the plural the singular, as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Joint and Several Liability</u>**: If Mortgagor be more than one person, all agreements, terms, conditions, warrants of attorney, waivers, releases, rights and benefits made or given by Mortgagor shall be joint and several, and shall bind and affect all persons who are defined as "Mortgagor" as fully as though all of them were specifically named herein wherever the word "Mortgagor" is used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>Interest Rate</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;(a) Notwithstanding any provision contained in this Mortgage or in the Notes, Mortgagor's liability for interest shall not exceed the limits imposed by the applicable usury law. If any clause in the Notes or this Mortgage requires interest payments in excess of the highest interest rate permitted by the applicable usury law, the clause in question shall be deemed to require such payment at the highest interest rate allowed by the applicable usury law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 event Mortgagee obtains any judgment against Mortgagor on this Mortgage or on the accompanying Notes, whether such judgment is obtained by confession or otherwise, interest shall accrue on the judgment in the same manner and at the same rate as provided in the Notes, notwithstanding any law, custom, or legal presumption to the contrary, subject only to subparagraph (a) above, until Mortgagee has received payment in full of all amounts due it pursuant to this Mortgage and the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>Severability</u>**: Any provision of this Mortgage which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Waivers</u>**: Mortgagor hereby waives and releases:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all procedural errors, defects and imperfections in any proceeding instituted by Mortgagee under the Notes, this Mortgage or any of the other Loan Documents; 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;(b) all benefits that might accrue to Mortgagor by virtue of any present or future law exempting the Mortgaged Property, or any part of the proceeds arising from any sale thereof, from attachment, levy or sale on execution, or providing for any stay of execution, exemption from civil procedure or extension of time for payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Captions; Counterparts</u>**: The captions preceding the text of the paragraphs or subparagraphs or this Mortgage are inserted only for convenience of reference and shall not constitute a part of this Mortgage, nor shall they in any way affect its meaning, construction, or effect. This Agreement may be executed in one or more counterparts, each of which so executed and delivered shall be deemed an original, but all of which taken together shall constitute but one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **<u>Capitalized Terms</u>**: Capitalized terms used herein without definition shall have the same meanings ascribed to such terms in the Loan 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;27. **<u>Advance Money Mortgage</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;(a) This is an open-end mortgage within the meaning of 42 Pa. C.S. §8143 et seq. It secures money to be advanced to finance the costs of construction of certain improvements on the Mortgaged Property pursuant to the Loan Agreement. This Mortgage covers present and future advances in the aggregate amount of the indebtedness secured hereby, made by Mortgagee to or for the benefit of Mortgagor pursuant to the Loan Agreement and the lien of such future advances shall relate back to the date of this Mortgage. Notwithstanding the foregoing, to the maximum extent permitted by law, Mortgagor hereby unconditionally and irrevocably waives its right to submit a notice to Mortgagee under 42 Pa.C.S. §8143(c). In addition to the other remedies available under the Loan Documents, any advances made after receipt of any such notice, whether or not made pursuant to 42 Pa. C.S. §8143 and/or §8144, shall be secured hereby and shall relate back to the date when this Mortgage was left for recording with the recorder of deeds. In the event any person or entity shall submit a notice to Mortgagee under 42 Pa. C.S. §8143(b), in addition to the other remedies available under the Loan Documents, Mortgagor shall have the lien or encumbrance which is the subject of such notice removed of record in accordance with this Mortgage; and any advances made by Mortgagee after receipt of any such notice whether or not made under 42 Pa. C.S. §8143(b) shall be deemed to be obligatory advances made under, shall be secured hereby, and shall relate back to the date when this Mortgage was left for recording with the recorder of deeds. By placing or accepting any such lien or encumbrance against any or all of the Mortgaged Premises, the holder thereof shall be deemed to have agreed to the maximum extent permitted by law that its lien or encumbrance shall be subject and subordinate in lien priority to this Mortgage and to any subsequent advances made under the Loan Documents, to all accrued and unpaid interest and to all other sums secured hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 addition to the stated indebtedness, this Mortgage secures disbursements and other advances thereunder for the payment of taxes, assessments, maintenance charges, insurance premiums, costs incurred for the protection of the Mortgaged Property for the discharge of liens having priority over the lien of this Mortgage, for the curing of waste of the Mortgaged Property, for the indemnification obligations regarding environmental liabilities of the Mortgaged Property, and for the payment of service charge and expenses incurred by reason of default, including late charges, reasonable attorneys' fee and court costs, together with all interest thereon, incurred by the Mortgagee by reason of default by the Mortgagor under this Mortgage or advances made under the Notes to enable completion of the improvements for which the construction loan evidenced by the Notes was originally made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Nothing in this <u>Section 27</u> is intended to limit or restrict the obligations, indebtedness, liabilities, covenants, disbursements or advances that may be secured by this Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 preference and priority of the lien of this Mortgage and all matters secured hereby shall extend to any and all future modifications hereof, or of the obligations secured hereby, that have been recorded or filed in the proper office as provided by law, except for such modification as expressly increases the maximum principal amount that is specified in this Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Nothing herein shall be construed to limit any agreement between Mortgagee and Mortgagor as to the time period for the repayment of such existing indebtedness, future advances, interest, service charges and disbursements as aforesaid, as to other obligations, advances or disbursements that are secured hereby or as to any other terms and conditions of this Mortgage 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;28. **<u>Governing Law</u>**: This Mortgage shall governed by and construed under the laws of the Commonwealth of Pennsylvania.

[SIGNATURES ON FOLLOWING PAGE]

**IN WITNESS WHEREOF,** Mortgagor has duly executed this Mortgage under seal as of the day and year first above written.

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| | |
|:---|:---|
| **MORTGAGOR:** | **MORTGAGOR:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member LLC, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

The address of the within named Mortgagee is:

1818 Beneficial Place

1818 Market Street, 21st Floor

Philadelphia, PA 19103

---

| |
|:---|
| /s/ Signatory |
| On behalf of Mortgagee |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the <u>20<sup>th</sup></u> day of <u>October</u> in the year 2017 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity, and that by her signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Sabina Firestone |
| Notary Public |

---

**EXHIBIT A**<br>**Legal Description**

ALL that certain tract or parcel of ground, Hereditaments and Appurtenances, situate in the Township of Cheltenham, County of Montgomery and State of Pennsylvania, described in accordance with a Record Plan, prepared for Pitcairn, Incorporated, by Chambers Associates, Inc., Consulting Engineers and Surveyors, Center Square, Pennsylvania, dated August 16, 1983, last revised January 5, 1984, recorded in Plan Book A-45, Page 173, as follows, to wit:

BEGINNING at a concrete monument set on the Ultimate Right-of-Way Line of Township Line Road, 35 feet from its centerline, said point also being the following (2) courses and distances from the intersection of the centerlines of Washington Lane and Township Line Road: (I) in a northwesterly direction, along the centerline of Township Line Road, 821.66 feet to a point; and (2) leaving said centerline, South 43 degrees, 8 minutes, 0 seconds West, 35 feet; thence from said point of beginning, along lands now or formerly of Lefebvre, South 43 degrees, 8 minutes, 0 seconds West, 145.01 feet to a point; thence continuing along lands partially of Lefebvre and partially of others as shown on the above-mentioned Plan and also on or along a stone wall, South 46 degrees, 19 minutes, 0 seconds East, 260 feet to a point; thence along lands now or formerly of Mid-Island Properties, Inc. and Sylvan M. Cohen, South 45 degrees, 41 minutes, 0 seconds West, 593.71 feet to a point; thence along lands of the North Pennsylvania Railroad, the following (3) courses and distances: (1) North 12 degrees, 0 minutes, 41 seconds West, 278.83 feet to a point (2) North 26 degrees, 24 minutes, 36 seconds East, 16,05 feet to a point; and (3) North 11 degrees, 43 minutes, 57 seconds West, 908.49 feet to a concrete monument set on the Ultimate Right-of-Way Line of Greenwood Avenue, 25 feet from its centerline; thence along said Right-of-Way Line, South 87 degrees, 18 minutes, 35 seconds East, 31.66 feet to a point of curvature; thence along an arc of a circle curving to the right with a radius of 120 feet, an arc distance of 85.86 feet to a point of tangency on the above-mentioned Ultimate Right-of-Way Line of Township Line Road; thence along same, South 46 degrees, 19 minutes, 0 seconds East, 639.76 feet to the point of BEGINNING.

Parcel ID: 31-00-26662-00-1

## Exhibit 10.17

**Exhibit 10.17**

**<u>MORTGAGE NOTE</u>**

---

| | |
|:---|:---|
| $667000.00 | October 20, 2017 |

---

**FOR VALUE RECEIVED, 165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company ("<u>Borrower</u>"), hereby promises to pay to the order of **BENEFICIAL BANK**, a Pennsylvania financial institution ("<u>Lender</u>"), at its office at 1818 Beneficial Place, 1818 Market Street, 21st Floor, Philadelphia, PA 19103 or at such other address as may hereafter be specified by Lender, in lawful money of the United States of America, the principal sum of $667,000.00 (the "<u>Loan</u>") or so much thereof as may be advanced from time to time to or for the benefit of Borrower by Lender pursuant to the terms of a Construction Loan and Security Agreement of even date herewith between Borrower and Lender (the "<u>Loan Agreement</u>"), together with interest thereon at the rate or rates and in the installments and times hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>: The following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Business Day</u>" means a day of the week other than Saturday, Sunday or any legal holiday on which Lender's offices in Philadelphia, PA are closed to the public.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Default Rate</u>" means a rate which is 5% per annum in excess of the interest rate then applicable to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Event of Default</u>" shall have the meaning given to such term in the Loan 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "<u>FHLB Rate</u>" means the three year fixed rate as set forth in the most recent Weekly Rates Summary published by the Federal Home Loan Bank of Pittsburgh.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Note</u>" means this Mortgage Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Project</u>" shall have the meaning given to such term in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest Rate</u>: From the date of the first advance of the Loan and continuing until the date repaid, the principal sum outstanding from time to time hereunder shall bear interest at the rate of <u>4.50</u>% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Terms of Payment</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;(a) Commencing on the first day of the first calendar month after the date of the first advance of the Loan, and continuing on the first day of each of the next eleven (11) calendar months thereafter, Borrower shall pay interest only in arrears, at the rate set forth in Section 2 hereof, on the outstanding principal balance of the Loan from time to time.

&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) Thereafter, commencing on the first day of the thirteenth (13th) calendar month after the first advance of the Loan, and continuing on the first day of each calendar month thereafter, Borrower shall pay principal and interest in arrears, in monthly installments equal to the level monthly payment required to fully amortize the Loan at the rate set forth in Section 2 hereof over a period of twenty-five (25) years. If Borrower extends the Maturity Date (as hereinafter defined) pursuant to Section 3(c) hereof, then commencing November 1, 2024, and continuing on the first day of each calendar month thereafter, Borrower shall pay principal and interest in arrears in monthly installments equal to the level monthly payment required to fully amortize the outstanding principal balance of the Loan on October 1, 2024, at the rate set forth in Section 3(c)(iv) hereof over a period of nineteen (19) years.

&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 outstanding principal balance hereof, together with any accrued and unpaid interest thereon, shall be due and payable (unless sooner paid) on October 1, 2024 (the "<u>Maturity Date</u>"); <u>provided</u>, <u>however,</u> that Borrower shall have the option to extend the Maturity Date for one (1) additional period of three (3) years (the "<u>Extension Term</u>"), subject to the following 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Borrower shall have requested and duly satisfied all conditions to the extension of the maturity date of the Acquisition Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 give written notice of the exercise of such option to Lender at the same time Borrower gives notice of its election to extend the maturity of the Acquisition Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) No Event of Default shall exist on the date of Borrower's notice to extend or on the Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Interest Rate during the Extension Term shall be fixed at the FHLB Rate plus 2.25%;

&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;(v) Within ten (10) days after Lender's receipt of Borrower's notice of its extension request, Lender shall confirm whether Borrower has satisfied the conditions to the extension of the Maturity Date; 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;(vi) if Lender confirms the satisfaction of such conditions, within ten (10) days after Borrower's receipt of such confirmation, Borrower shall pay Lender a non- refundable extension fee equal to 0.125% of the then outstanding balance of the Loan.

If the Maturity Date is extended pursuant to this Paragraph 3(c), the Maturity Date shall be October 1, 2027, and the parties shall promptly execute an amendment to this Note confirming such extension, and the amount of the monthly installments of principal payable during the Extension Term, which shall be prepared by Lender's counsel at Borrower's expense.

&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) Interest on the principal balance of this Note shall be calculated on the basis of a 360-day year to the date of receipt by Lender at the place of payment designated above. If any payment is in an amount less than the amount then due, Lender may, at its option, add the amount of any such deficiency to the outstanding principal balance hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Prepayment Privilege</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;(a) Borrower may prepay this Note in full or in part at any time without fee, premium or penalty except as expressly provided in this Section 4, provided that Borrower gives Lender at least ten (10) Business Days' written notice of such intent (provided that such notice may be revoked upon two (2) Business Days' written notice to Lender) and such prepayment is accompanied by all accrued and unpaid interest on the Loan 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;(i) if such prepayment occurs prior to October 1, 2022, a prepayment premium equal to 2.0% of the amount prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 such prepayment occurs during the period of October 1, 2022 to June 30, 2024, a prepayment premium equal to 1.0% of the amount prepaid.

&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) Notwithstanding the foregoing or anything contained herein to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) no prepayment premium shall be due in connection with any prepayment made from and after July 1, 2024; <u>provided</u>, <u>however,</u> that if Borrower extends the term pursuant to Section 3(c) hereof, if Borrower prepays the Loan during the period of November 1, 2024 – June 30, 2027, such prepayment shall be accompanied by a prepayment premium equal to 1% of the amount prepaid and no prepayment premium shall be due in connection with any prepayment made on or after July 1, 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 prepayment premium shall be due in connection with a prepayment using funds from Lender from a refinance of the Loan with Lender; 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;(iii) no prepayment premium shall be due in the event of a prepayment arising from the application of insurance proceeds or condemnation awards against the principal balance of 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;(c) Upon the occurrence of an Event of Default and following acceleration of maturity of this Note by Lender, a tender of payment of or entry of judgment for the amount necessary to satisfy the entire unpaid principal balance declared due and payable shall be deemed a prepayment hereunder, and such payment or judgment must, therefore, include the amounts set forth in subsections 4(a)(i)-(ii) above, as applicable. Lender shall have the right to include and bid in such amounts as an amount due to Lender in connection with any foreclosure sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Late Charges</u>: If any monthly installment of interest or interest and principal due hereunder (other than the outstanding principal balance of the Loan due on the Maturity Date) is not paid within ten (10) days of becoming due, Lender, at its option and without the waiver on its part of any other rights, privileges and options it may have or be entitled to by the terms of this Note or any of the other Loan Documents, may collect from Borrower a late charge to cover the extra expenses involved in handling delinquent payments equal to five percent (5%) of the delinquent installment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Security</u>: This Note is secured by, among other things, the Mortgage, Assignment of Leases, the General Collateral Assignment and the Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Remedies</u>: Upon the occurrence of an Event of Default, the entire unpaid principal balance of this Note, together with all interest accrued thereon and all other sums due or owed by Borrower hereunder or under the terms of any of the other Loan Documents shall, at the option of Lender and without notice to Borrower, become due and payable immediately with interest at the Default Rate. Interest at the Default Rate shall continue to accrue on any judgment Lender may obtain against Borrower on this Note or the Mortgage until the judgment and interest and costs have been paid in full. Lender may include the prepayment premium, if applicable, and reasonable attorney's fees and costs of suit in any complaint, judgment or assessment of damages filed or entered pursuant to this Note and/or the Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Remedies Cumulative</u>: The remedies of Lender provided herein and the Loan Documents shall be in addition to, and not in limitation of, such other remedies as Lender may have under applicable statutes, rules of civil procedure, and/or common law. All of such remedies shall be cumulative and concurrent, and may be pursued singly, successively or together at the sole discretion of Lender, and may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Waivers</u>: Borrower waives presentment for payment, demand, notice of demand, notice of non-payment or dishonor, protest and notice of protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, except for notices specifically required hereunder. Liability hereunder shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Replacement of Note</u>. Upon receipt of an affidavit made by an officer of Lender as to the loss, theft, destruction or mutilation of the Note or any other Loan Document that is not of public record and, in the case of any such destruction or mutilation, upon surrender and cancellation of such Note or any other Loan Document, Borrower will issue, in lieu thereof, a replacement Note or other Loan Document in the same principal amount thereof and otherwise of like tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Pledge to Federal Reserve</u>. Lender may at any time pledge, endorse, assign, or transfer all or any portion of its rights under the Loan Documents including any portion of this Note to any of the twelve (12) Federal Reserve Banks organized under Section 4 of the Federal Reserve Act. 12.U.S.C. Section 341. No such pledge or enforcement thereof shall release Lender from its obligations under any of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Miscellaneous</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;(a) Capitalized terms herein without definition shall have the meanings given to such terms in the Loan 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) This Note shall be binding upon Borrower and its successors and assigns and shall inure to the benefit of Lender and its successors and assigns. If Borrower consists of more than one person or entity, the obligations of such person(s) and/or entities shall be joint and several and the word "Borrower" shall mean all or some or any of them.

&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 captions contained in this Note are solely for the convenience of the parties hereto; they do not modify, amplify or give full notice of the terms and conditions of this Note.

&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) This Note shall be construed according to and be governed by the laws of the Commonwealth of Pennsylvania.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>: All notices given hereunder shall be in writing and shall be deemed to have been sufficiently given for all purposes when sent in accordance with the notice provisions contained in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>CONFESSION OF JUDGMENT</u>. UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR ATTORNEYS OR THE PROTHONOTARY OR CLERK OF ANY COURT OF RECORD IN MONTGOMERY COUNTY, PENNSYLVANIA, OR ELSEWHERE, TO APPEAR FOR BORROWER IN ANY SUCH COURT IN AN APPROPRIATE ACTION THERE BROUGHT OR TO BE BROUGHT AGAINST BORROWER AT THE SUIT OF LENDER ON THIS NOTE, AND THEREIN TO CONFESS JUDGMENT AGAINST BORROWER FOR ALL SUMS DUE FROM BORROWER TOGETHER WITH COSTS OF SUIT AND AN ATTORNEY'S FEE FOR COLLECTION OF $25,000.00; AND FOR SO DOING THIS NOTE OR A COPY HEREOF VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT. THIS WARRANT OF ATTORNEY SHALL BE EFFECTIVE ONLY AFTER AN EVENT OF DEFAULT, BUT SHALL NOT BE EXHAUSTED BY ANY EXERCISE THEREOF, BUT SHALL CONTINUE FROM TIME TO TIME UNTIL ALL SUMS OWED LENDER HEREUNDER ARE PAID IN FULL.**

**BORROWER HEREBY RELEASES LENDER AND SAID ATTORNEY OR ATTORNEYS FROM ALL PROCEDURAL ERRORS, DEFECTS AND IMPERFECTIONS WHATSOEVER IN ENTERING JUDGMENT BY CONFESSION HEREON AS AFORESAID OR IN ISSUING ANY PROCESS OR INSTITUTING ANY PROCEEDINGS RELATING THERETO AND HEREBY WAIVES ALL BENEFIT THAT MIGHT ACCRUE TO BORROWER BY VIRTUE OF ANY PRESENT OR FUTURE LAWS EXEMPTING THE PROJECT, AND ANY OTHER COLLATERAL FOR THIS NOTE, OR ANY PART OF THE PROCEEDS ARISING FROM ANY SALE OF ANY SUCH PROJECT, FROM ATTACHMENT, LEVY OR SALE UNDER EXECUTION, OR PROVIDING FOR ANY STAY OF EXECUTION, EXEMPTION FROM CIVIL PROCESS OR EXTENSION OF TIME, AND AGREES THAT SUCH PROJECT MAY BE SOLD TO SATISFY ANY JUDGMENT ENTERED ON THIS NOTE OR THE MORTGAGE, IN WHOLE OR IN PART AND IN ANY ORDER AS MAY BE DESIRED BY LENDER.**

[Signature on Following Page]

**BORROWER CONFIRMS TO LENDER THAT: (I) IT IS A BUSINESS ENTITY AND THAT ITS PRINCIPALS ARE KNOWLEDGEABLE IN BUSINESS MATTERS; (II) THE TERMS OF THIS NOTE, INCLUDING THE FOREGOING WARRANT OF ATTORNEY TO CONFESS JUDGMENT, HAVE BEEN NEGOTIATED AND AGREED UPON IN A COMMERCIAL CONTEXT, AND (III) ITS PRINCIPALS HAVE FULLY REVIEWED THE AFORESAID WARRANT OF ATTORNEY TO CONFESS JUDGMENT WITH THEIR OWN COUNSEL AND UNDERSTAND THAT BORROWER IS WAIVING CERTAIN RIGHTS IT WOULD OTHERWISE POSSESS.**

**IN WITNESS WHEREOF**, Borrower has duly executed this Note under seal the day and year first above mentioned.

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, LLC, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

## Exhibit 10.18

**Exhibit 10.18**

**<u>FIRST AMENDMENT TO MORTGAGE NOTE</u>**

**THIS FIRST AMENDMENT TO MORTGAGE NOTE** (this "**<u>Agreement</u>**") is made as of October 24, 2024, by and between **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB**, a federal savings bank ("**<u>Lender</u>**"), successor by merger to BENEFICIAL BANK.

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to a Construction Loan and Security Agreement dated October 20, 2017 as amended by a First Amendment dated January 31, 2020 (collectively, the "**<u>Loan Agreement</u>**"), Lender made two loans to Borrower in the aggregate principal amount of $9,225,000 (collectively, the "**<u>Loan</u>**"). A portion of the Loan in the principal amount of $8,558,000 (the "**<u>Acquisition Loan</u>**") is evidenced by a Mortgage Note dated October 20, 2017 from Borrower in favor of Lender (the "**<u>Acquisition Note</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The parties hereto desire to modify the Acquisition Note on the terms and conditions hereinafter set forth.

**NOW, THEREFORE**, intending to be legally bound hereby, and in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions</u>**. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Acquisition Note. In addition, the following terms shall have the following meanings as used herein and in the Acquisition Note:

"**<u>Adjustment Date Interest calculation basis Act/360</u>**" means interest shall be computed daily on an Actual/360 basis; that is, by applying the ratio of the Interest Rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal is outstanding, with no adjustment to period end dates.

"**<u>Board</u>**" means the Board of Governors of the Federal Reserve System.

"**<u>Business Day</u>**" means a day of the week other than a Saturday, Sunday or any day on which commercial banks in Wilmington, Delaware are authorized to be closed.

"**<u>Interest Period</u>**" means a period of one calendar month commencing on the first day of each calendar month, with the first Interest Period commencing October 1, 2024.

"**<u>Interest Rate</u>**" means for each Interest Period commencing with the Interest Period commencing October 1, 2024, a rate per annum equal to the Index, as determined on the Reference Day for such Interest Period, plus the Margin. Anything elsewhere contained in the Acquisition Note or this Agreement to the contrary notwithstanding, under no circumstances will the Interest Rate be more than the maximum rate of interest allowed by applicable law. Lender may select information sources or services in its sole discretion to ascertain the Index, pursuant to the terms of the Acquisition Note as modified hereby, and shall have no liability to Borrower 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, 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.

The Interest Rate is not necessarily the lowest rate charged by Lender on its loans, and Borrower understands that Lender may make loans with interest rates that are not based on SOFR as well. Borrower hereby acknowledges and understands that the Term SOFR reference rate is established, administered, and regulated by third parties, and its continuing existence and ongoing viability as a source and basis for establishing contractual interest rates is entirely outside of the control of Lender, and is based on expectations derived from the derivatives markets and dependent upon derivatives market liquidity. Lender does not warrant and shall not have any liability with respect to the continuation of, administration of, submission of, calculation of, or any other matter related to the Term SOFR reference rate, or any component definition thereof or rates referenced in the definition thereof. Borrower hereby waives any claims or defenses against Lender in connection with the foregoing.

"**<u>Index</u>**" means, initially, One-Month Term SOFR.

"**<u>Index Replacement Event</u>**" means the occurrence of one or more of the following events with respect to the then-current Index: (i) the then-current Index becomes generally unavailable or unascertainable; (ii) a public statement or publication of information by or on behalf of the administrator of such Index (or the published component used in the calculation thereof) that it has ceased or will cease to provide such Index permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Index; (iii) a public statement or publication of information by the regulatory supervisor for the administrator of such Index, an insolvency official with jurisdiction over the administrator for such Index, a resolution authority with jurisdiction over the administrator for such Index or a court or an entity with similar insolvency or resolution authority over the administrator for such Index, which states that the administrator of the Index has ceased or will cease to provide the Index permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Index; or (iv) the then-current Index does not accurately or fairly reflect the cost of making or maintaining the type of loan evidenced by the Acquisition Note as modified hereby. If an Index Replacement Event has occurred with respect to SOFR or any then-current Index, then Lender shall, in its sole discretion, select a substitute source and/or date for determining the Replacement Index, to be effective on the date designated by Lender in a writing to Borrower.

"**<u>Margin</u>**" means 225 basis points.

"**<u>One-Month Term SOFR Rate</u>**" means the greater of (i) zero or (ii) the one-month forward-looking term rate based on SOFR quoted by Lender from the Term SOFR Administrator's Website (or other commercially available source providing such quotations as may be selected by Lender from time to time), which shall be that one-month Term SOFR rate published two U.S. Government Securities Business Days prior to the applicable Rate Adjustment Date (such day, the "**<u>Reference Day</u>**"), adjusted for any reserve requirement and any subsequent costs arising from a change in government regulation; <u>provided, however</u>, that if the Term SOFR rate is not published on such U.S. Government Securities Business Day due to a holiday or other circumstance that the Lender deems in its sole discretion to be temporary, the applicable Term SOFR rate shall be the Term SOFR rate last published prior to such U.S. Government Securities Business Day. If the initial advance on any facility to which the One-Month Term SOFR Rate applies occurs other than on the Rate Adjustment Date, the initial One-Month Term SOFR Rate shall be that One-Month Term SOFR Rate in effect two U.S. Government Securities Business Days prior to the later of (a) the immediately preceding Rate Adjustment Date and (b) the closing date for such facility, which rate shall be in effect until the next Rate Adjustment Date; provided, however, that if the One-Month Term SOFR Rate is replacing a different rate index for an existing facility, and if such replacement becomes effective on a date other than the Rate Adjustment Date, the initial One-Month Term SOFR Rate hereunder shall be that One-Month Term SOFR Rate in effect two U.S. Government Securities Business Days prior to the effective date of such replacement, which rate shall be in effect until the next Rate Adjustment Date.

"**<u>Rate Adjustment Date</u>**" means the first (1<sup>st</sup>) day of each Interest Period, with the first Rate Adjustment Date being October 1, 2024.

"**<u>Replacement Index</u>**" means the substitute index that has been selected by Lender to be used in replacement of the then-current Index. In connection with the implementation of a Replacement Index, Lender will have the right to make any technical, administrative or operational changes that Lender determines are needed for the adoption and implementation of such Replacement Index and to permit the administration thereof by Lender in a manner consistent with the terms of this Agreement. Any changes or amendments implementing such conforming changes will become effective without any further action or consent of Borrower. At the time of implementation of a Replacement Index, Lender in its sole discretion shall have the right to decide as to whether an adjustment (which may be a positive or negative value) to the Margin is necessary or appropriate, considering any evolving or then-prevailing market practice for determining a spread adjustment, or method for calculating or determining such spread adjustment; and if Lender determines that an adjustment to the Margin is necessary or appropriate, then Lender shall have the right to do so; <u>provided, however,</u> that Lender shall make commercially reasonable efforts to cause the overall interest rate (after such adjustment) to be substantially equivalent to the overall interest rate before the use of the Replacement Index. Any designation of a Replacement Index and/or adjustment to the Margin will become effective without any action or consent of Borrower. However, Lender agrees to provide notice to Borrower of changes to the Index and/or adjustments to the Margin and will also provide Borrower with the then-current Index upon Borrower's request.

"**<u>SOFR</u>**" means the secured overnight financing rate which is published by the Board or any committee convened by the Board and available at www.newyorkfed.org.

"**<u>Term SOFR</u>**" means the forward-looking rate for a one (1) month tenor based on SOFR and recommended by the Board.

"**<u>Term SOFR Administrator</u><u>'</u><u>s Website</u>**" means the website or any successor source for Term SOFR identified by CME Group Benchmark Administration Ltd. (or a successor administrator of Term SOFR).

"**<u>U.S. Government Securities Business Da</u><u>y</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;2. **<u>Modification of Interest Rate</u>**. Notwithstanding anything to the contrary contained in Section 2 of the Acquisition Note, commencing October 1, 2024, interest on the principal balance of the Acquisition Loan for each Interest Period shall accrue at the applicable Interest Rate for such Interest Period in accordance with this Agreement. Interest shall be calculated on the Adjustment Date Interest calculation basis Act/360. If any payment under the Acquisition Note as modified by this Agreement shall become due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall not be included in computing interest due for such payment. If any payment is in an amount less than the amount then due, Lender may, at its option, add the amount of any such deficiency to the outstanding principal balance hereof. Each determination of the Interest Rate by Lender shall be conclusive and binding on Borrower in the absence of manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Extension of Maturity Date</u>**. The Maturity Date is hereby extended to April 1, 2025. Notwithstanding anything to the contrary contained in the Acquisition Note, Borrower shall not have any right to further extend the Maturity Date and Section 3(c) of the Acquisition Note is null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Monthly Payments of Principal and Interest</u>**. On October 1, 2024, Borrower shall pay principal and interest in accordance with Sections 3(a) and 3(b) of the Acquisition Note. Commencing November 1, 2024 and continuing on the first day of each Interest Period thereafter, Borrower shall pay (i) interest on the outstanding principal balance of the Acquisition Loan in arrears at the applicable Interest Rate and (ii) a principal payment in an amount equal to the principal component of the level monthly payment required to fully amortize the outstanding principal balance of the Acquisition Loan as of the commencement of such Interest Period over a period of 19 years minus the number of months elapsed since November 1, 2024, at the Interest Rate in effect for such Interest Period. On the Maturity Date, the entire unpaid principal amount of the Acquisition Loan, together with all accrued and unpaid interest thereon, shall be due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Prepayment</u>**. Notwithstanding anything to the contrary contained in the Acquisition Note, Borrower may prepay the Acquisition Loan in full or in part at any time without any prepayment premium, provided that (a) Borrower gives Lender at least two (2) Business Days' written notice of such intent; (b) any partial prepayment shall not have the effect of postponing or reducing the amount of any future monthly payments due hereunder; (c) at the time of any prepayment, in whole or part, Borrower shall pay to Lender all unpaid interest accrued through and including the date of such prepayment and all other sums due hereunder and under the other Loan Documents; and (d) Borrower shall be responsible for the payment of all fees, costs and expenses incurred as the result of the termination of any interest rate swap or hedging agreement with Lender or other counterparty acceptable to Lender entered into in connection with the Acquisition Loan (individually and collectively, the "**<u>Hedging Contract</u>**") or any portion thereof prior to maturity, such prepayment calculation and payment terms to be governed by the applicable Hedging Contract, and Borrower shall, at the time of prepayment (whether in whole or in part), pay to Lender all such fees, costs and expenses and other hedging obligations, including, without limitation, costs associated with bringing to market any obligations under any Hedging Contract between Borrower and Lender or agreements relating thereto that (in the reasonable determination of Lender) are required to be terminated as a result of any conversion, repayment or prepayment of the principal amount of the Acquisition Loan on a date other than the Rate Adjustment Date applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Representations and Warranties</u>**. Borrower represents and warrants to Lender that: (i) as of the date hereof, the outstanding principal balance of the Acquisition Note as of the date hereof is $7,280,756.36; (ii) such sum is due and owing with interest in accordance with the terms of the Acquisition Note, as amended hereby; and (iii) Borrower has no defenses, claims or offsets thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Miscellaneous</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;(a) **<u>Conflicts</u>**. If any of the provisions of this Agreement conflict with the provisions of the Acquisition Note, the provisions of this Agreement shall control.

&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>Ratification</u>**. Except as modified herein, the terms and conditions of the Acquisition Note remain in full force and effect. Without limiting the generality of the preceding sentence, except as modified herein, all rights and remedies of Lender under the Acquisition Note **(including, without limitation, the warrant to confess judgment against Borrower contained Section 14 of the Acquisition Note)**, survive the making of this Agreement and shall continue in full force and effect.

&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>Governing Law; Binding Effect</u>**. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&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>Expenses</u>**. Borrower agrees to pay all of Lender's fees incurred in connection with this Agreement, including, without limitation, reasonable attorneys' fees.

&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>Captions</u>**. The captions contained herein are not a part of this Agreement; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of 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;(f) **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

**[*Remainder of Page Intentionally Left Blank*]**

**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be duly executed the day and year first above written.

---

| | | |
|:---|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel | /s/ Larry Botel |
|  | Larry Botel, Sole member | Larry Botel, Sole member |
| **<u>LENDER</u>:** | **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville | /s/ Paul F. Glanville |
|  | Name: | Paul F. Glanville |
|  | Title: | Senior Vice President |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 24<sup>th</sup> day of October in the year 2024 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

## Exhibit 10.19

**Exhibit 10.19**

**<u>SECOND AMENDMENT TO MORTGAGE NOTE</u>**

**THIS SECOND AMENDMENT TO MORTGAGE NOTE** (this "**<u>Agreement</u>**" is made as of April 8, 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB**, a federal savings bank ("**<u>Lender</u>**"), successor by merger to BENEFICIAL BANK.

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment to Construction Loan and Security Agreement dated January 31, 2020 and a Second Amendment to Construction Loan and Security Agreement dated October 24, 2024 (collectively, the "**<u>Loan Agreement</u>**"). Lender made two loans to Borrower in the aggregate principal amount of $9,225,000 (collectively, the "**<u>Loan</u>**"). A portion of the Loan in the principal amount of $8,558,000 (the "**<u>Acquisition Loan</u>**") is evidenced by a Mortgage Note dated October 20, 2017 from Borrower in favor of Lender (the "**<u>Original Acquisition Note</u>**"), as amended by a First Amendment to Mortgage Note dated October 24, 2024 (collectively, the "**<u>Acquisition Note</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The parties hereto desire to modify the Acquisition Note on the terms and conditions hereinafter set forth.

**NOW, THEREFORE**, intending to be legally bound hereby, and in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions</u>**. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Acquisition Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Extension of Maturity Date</u>**. The Maturity Date is hereby extended to July 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties</u>**. Borrower represents and warrants to Lender that: (i) as of the date hereof, the outstanding principal balance of the Acquisition Note as of the date hereof is $7,211.614; (ii) such sum is due and owing with interest in accordance with the terms of the Acquisition Note, as amended hereby; and (iii) Borrower has no defenses, claims or offsets thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Miscellaneous</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;(a) **<u>Conflicts</u>**. If any of the provisions of this Agreement conflict with the provisions of the Acquisition Note, the provisions of this Agreement shall control.

&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>Ratification</u>**. Except as modified herein, the terms and conditions of the Acquisition Note remain in full force and effect. Without limiting the generality of the preceding sentence, except as modified herein, all rights and remedies of Lender under the Acquisition Note (**including, without limitation, the warrant to confess judgment against Borrower contained Section 14 of the Original Acquisition Note**), survive the making of this Agreement and shall continue in full force and effect.

&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>Governing Law; Binding Effect</u>**. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&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>Expenses</u>**. Borrower agrees to pay all of Lender's fees incurred in connection with this Agreement, including, without limitation, reasonable attorneys' fees.

&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>Captions</u>**. The captions contained herein are not a part of this Agreement; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of 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;(f) **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

[***Remainder of Page Intentionally Left Blank***]

**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be duly executed the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC.,** a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC.,** a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

---

| | | |
|:---|:---|:---|
| **<u>LENDER</u>:** | **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville | /s/ Paul F. Glanville |
|  | Name: | Paul F. Glanville |
|  | Title: | Senior Vice President |

---

[Remainder of page intentionally left blank;

Joinder/Acknowledgement continue on following page]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| | | |
|:---|:---|:---|
| | | **<u>GUARANTOR</u>:**<br>/s/ Larry Botel |
| | | **LARRY BOTEL** |
| STATE OF NEW YORK | : |  |
|  | : | SS |
| COUNTRY OF NEW YORK | : |  |

---

On the 8th day of April in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

LESLIE ALWADISH

Notary Public, State of New York

NO. 01AL4852847

Qualified in New York County

Commission Expires Feb. 10, 2026

## Exhibit 10.20

**Exhibit 10.20**

**<u>THIRD AMENDMENT TO MORTGAGE NOTE</u>**

**THIS THIRD AMENDMENT TO MORTGAGE NOTE** (this "**<u>Agreement</u>**") is made as of July 21, 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB**, a federal savings bank ("**<u>Lender</u>**"), successor by merger to BENEFICIAL BANK.

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment to Construction Loan and Security Agreement dated January 31, 2020, a Second Amendment to Construction Loan and Security Agreement dated October 24, 2024, and a Third Amendment dated as of the date hereof (collectively, the "**<u>Loan Agreement</u>**"), Lender made two loans to Borrower in the aggregate principal amount of $9,225,000 (collectively, the "**<u>Loan</u>**"). A portion of the Loan in the principal amount of $8,558,000 (the "**<u>Acquisition Loan</u>**") is evidenced by a Mortgage Note dated October 20, 2017 from Borrower in favor of Lender (the "**<u>Original Acquisition Note</u>**"), as amended by a First Amendment to Mortgage Note dated October 24, 2024 and a Second Amendment to Mortgage Note dated April 8, 2025 (collectively, the "**<u>Acquisition Note</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The parties hereto desire to modify the Acquisition Note on the terms and conditions hereinafter set forth.

**NOW, THEREFORE**, intending to be legally bound hereby, and in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions</u>**. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Acquisition Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Extension of Maturity Date</u>**. The Maturity Date is hereby extended to October 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties</u>**. Borrower represents and warrants to Lender that: (i) as of the date hereof, the outstanding principal balance of the Acquisition Note as of the date hereof is $7,162,984.96; (ii) such sum is due and owing with interest in accordance with the terms of the Acquisition Note, as amended hereby; and (iii) Borrower has no defenses, claims or offsets thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Miscellaneous</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;(a) **<u>Conflicts</u>**. If any of the provisions of this Agreement conflict with the provisions of the Acquisition Note, the provisions of this Agreement shall control.

&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>Ratification</u>**. Except as modified herein, the terms and conditions of the Acquisition Note remain in full force and effect. Without limiting the generality of the preceding sentence, except as modified herein, all rights and remedies of Lender under the Acquisition Note (**including, without limitation, the warrant to confess judgment against Borrower contained Section 14 of the Original Acquisition Note**), survive the making of this Agreement and shall continue in full force and effect.

&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>Governing Law; Binding Effect</u>**. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&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>Expenses</u>**. Borrower agrees to pay all of Lender's fees incurred in connection with this Agreement, including, without limitation, reasonable attorneys' fees.

&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>Captions</u>**. The captions contained herein are not a part of this Agreement; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of 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;(f) **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

[*Remainder of Page Intentionally Left Blank*]

**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be duly executed the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 21 day of July in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity, and that by her signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

---

| | | |
|:---|:---|:---|
| **<u>LENDER</u>:** | **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville | /s/ Paul F. Glanville |
|  | Name: | Paul F. Glanville, |
|  | Title: | Senior Vice President |

---

[Remainder of page intentionally left blank;<br> Joinder/Acknowledgement continues on following page]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| **LARRY BOTEL** |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 21 day of July in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

**<u>THIRD AMENDMENT TO MORTGAGE NOTE</u>**

**THIS THIRD AMENDMENT TO MORTGAGE NOTE** (this "**<u>Agreement</u>**") is made as of July 21, 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB**, a federal savings bank ("**<u>Lender</u>**"), successor by merger to BENEFICIAL BANK.

**<u>BACKGROUND</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment dated January 31, 2020, a Second Amendment dated October 24, 2024, and a Third Amendment dated as of the date hereof (collectively, the "**<u>Loan Agreement</u>**"), Lender made two loans to Borrower in the aggregate principal amount of $9,225,000 (collectively, the "**<u>Loan</u>**"). A portion of the Loan in the principal amount of $667,000 (the "**<u>TI/L</u><u>C</u> <u>Loan</u>**") is evidenced by a Mortgage Note dated October 20, 2017 from Borrower in favor of Lender (the "**<u>Original TI/LC Note</u>**"), as amended by a First Amendment to Mortgage Note dated October 24, 2024 and a Second Amendment to Mortgage Note dated April 8, 2025 (collectively, the "**<u>TI/LC Note</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The parties hereto desire to modify the TI/LC Note on the terms and conditions hereinafter set forth.

**NOW, THEREFORE**, intending to be legally bound hereby, and in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions</u>**. All capitalized terms used herein without definition shall have the same meanings given to such terms in the TI/LC Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Extension of Maturity Date</u>**. The Maturity Date is hereby extended to October 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties</u>**. Borrower represents and warrants to Lender that: (i) as of the date hereof, the outstanding principal balance of the TI/LC Note as of the date hereof is $572,809.59; (ii) such sum is due and owing with interest in accordance with the terms of the TI/LC Note, as amended hereby; and (iii) Borrower has no defenses, claims or offsets thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Miscellaneous</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;(a) **<u>Conflicts</u>**. If any of the provisions of this Agreement conflict with the provisions of the TI/LC Note, the provisions of this Agreement shall control.

&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>Ratification</u>**. Except as modified herein, the terms and conditions of the TI/LC Note remain in full force and effect. Without limiting the generality of the preceding sentence, except as modified herein, all rights and remedies of Lender under the TI/LC Note (**including, without limitation, the warrant to confess judgment against Borrower contained Section 14 of the Original TI/LC Note**), survive the making of this Agreement and shall continue in full force and effect.

&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>Governing Law; Binding Effect</u>**. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&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>Expenses</u>**. Borrower agrees to pay all of Lender's fees incurred in connection with this Agreement, including, without limitation, reasonable attorneys' fees.

&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>Captions</u>**. The captions contained herein are not a part of this Agreement; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of 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;(f) **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

[*Remainder of Page Intentionally Left Blank*]

**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be duly executed the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware limited liability company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 21 day of July in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity, and that by her signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

---

| | | |
|:---|:---|:---|
| **<u>LENDER</u>:** | **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville | /s/ Paul F. Glanville |
|  | Name: | Paul F. Glanville, |
|  | Title: | Senior Vice President |

---

[Remainder of page intentionally left blank;<br> Joinder/Acknowledgement continues on following page]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| **LARRY BOTEL** |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 21 day of July in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

## Exhibit 10.21

**Exhibit 10.21**

**<u>FOURTH AMENDMENT TO MORTGAGE NOTE</u>**

**THIS FOURTH AMENDMENT TO MORTGAGE NOTE** (this "**<u>Agreement</u>**") is made as of October 15, 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB,** a federal savings bank ("**<u>Lender</u>**"), successor by merger to BENEFICIAL BANK.

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment to Construction Loan and Security Agreement dated January 31, 2020, a Second Amendment to Construction Loan and Security Agreement dated October 24, 2024, and a Third Amendment dated as of the date hereof (collectively, the "**<u>Loan Agreement</u>**"), Lender made two loans to Borrower in the aggregate principal amount of $9,225,000 (collectively, the "**<u>Loan</u>**"). A portion of the Loan in the principal amount of $8,558,000 (the "**<u>Acquisition Loan</u>**") is evidenced by a Mortgage Note dated October 20, 2017 from Borrower in favor of Lender (the "**<u>Original Acquisition Note</u>**"), as amended by a First Amendment to Mortgage Note dated October 24, 2024, a Second Amendment to Mortgage Note dated April 8, 2025, a Third Amendment to Mortgage Note dated July 21, 2025, (collectively, the "**<u>Acquisition Note</u>**")**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The parties hereto desire to modify the Acquisition Note on the terms and conditions hereinafter set forth.

**NOW, THEREFORE,** intending to be legally bound hereby, and in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions</u>**. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Acquisition Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Extension of Maturity Date</u>**. The Maturity Date is hereby extended to November 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties</u>**. Borrower represents and warrants to Lender that: (i) as of the date hereof, the outstanding principal balance of the Acquisition Note as of the date hereof is $7,113,866.60; (ii) such sum is due and owing with interest in accordance with the terms of the Acquisition Note, as amended hereby; and (iii) Borrower has no defenses, claims or offsets thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Conflicts</u>**. If any of the provisions of this Agreement conflict with the provisions of the Acquisition Note, the provisions of this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Ratification</u>**. Except as modified herein, the terms and conditions of the Acquisition Note remain in full force and effect. Without limiting the generality of the preceding sentence, except as modified herein, all rights and remedies of Lender under the Acquisition Note **(including, without limitation, the warrant to confess judgment against Borrower contained Section 14 of the Original Acquisition Note),** survive the making of this Agreement and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Governing Law; Binding Effect</u>**. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Expenses</u>**. Borrower agrees to pay all of Lender's fees incurred in connection with this Agreement, including, without limitation, reasonable attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Captions</u>**. The captions contained herein are not a part of this Agreement; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

***[Remainder of Page Intentionally Left Blank]***

**IN WITNESS WHEREOF,** the parties hereto have caused this Agreement to be duly executed the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware Limited Liability Company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |

---

---

| | |
|:---|:---|
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

STATE OF NEW YORK : <br> : SS.: <br> COUNTY OF NEW YORK :

On the 15<sup>th</sup> day of July in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

---

| | | |
|:---|:---|:---|
| **<u>LENDER</u>:** | **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Paul F. Glanville | /s/ Paul F. Glanville |
|  | Name: | Paul F. Glanville |
|  | Title: | Senior Vice President |

---

[Remainder of page intentionally left blank;

Joinder/Acknowledgement continues on following page]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| **LARRYBOTEL** |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 15<sup>th</sup> day of October in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

## Exhibit 10.22

**Exhibit 10.22**

**<u>FIFTH AMENDMENT TO MORTGAGE NOTE</u>**

**THIS FIFTH AMENDMENT TO MORTGAGE NOTE** (this "**<u>Agreement</u>**") is made as of November 20, 2025, by and between **165 TOWNSHIP LINE ROAD OWNER LLC,** a Delaware limited liability company ("**<u>Borrower</u>**"), and **WILMINGTON SAVINGS FUND SOCIETY, FSB,** a federal savings bank ("**<u>Lender</u>**"), successor by merger to BENEFICIAL BANK.

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to a Construction Loan and Security Agreement dated October 20, 2017, as amended by a First Amendment to Construction Loan and Security Agreement dated January 31, 2020, a Second Amendment to Construction Loan and Security Agreement dated October 24, 2024, and a Third Amendment dated as of the date hereof (collectively, the "**<u>Loan Agreement</u>**"), Lender made two loans to Borrower in the aggregate principal amount of $9,225,000 (collectively, the "**<u>Loan</u>**"). A portion of the Loan in the principal amount of $8,558,000 (the "**<u>Acquisition Loan</u>**") is evidenced by a Mortgage Note dated October 20, 2017 from Borrower in favor of Lender (the "**<u>Original Acquisition Note</u>**"), as amended by a First Amendment to Mortgage Note dated October 24, 2024, a Second Amendment to Mortgage Note dated April 8, 2025, a Third Amendment to Mortgage Note dated July 21, 2025, and a Fourth Amendment to Mortgage Note dated October 15, 2025 (collectively, the "**<u>Acquisition Note</u>**")**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The parties hereto desire to modify the Acquisition Note on the terms and conditions hereinafter set forth.

**NOW, THEREFORE,** intending to be legally bound hereby, and in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions</u>**. All capitalized terms used herein without definition shall have the same meanings given to such terms in the Acquisition Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Extension of Maturity Date</u>**. The Maturity Date is hereby extended to January 1, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Representations and Warranties</u>**. Borrower represents and warrants to Lender that: (i) as of the date hereof, the outstanding principal balance of the Acquisition Note as of the date hereof is $7,096,252.68; (ii) such sum is due and owing with interest in accordance with the terms of the Acquisition Note, as amended hereby; and (iii) Borrower has no defenses, claims or offsets thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Conflicts</u>**. If any of the provisions of this Agreement conflict with the provisions of the Acquisition Note, the provisions of this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Ratification</u>**. Except as modified herein, the terms and conditions of the Acquisition Note remain in full force and effect. Without limiting the generality of the preceding sentence, except as modified herein, all rights and remedies of Lender under the Acquisition Note **(including, without limitation, the warrant to confess judgment against Borrower contained Section 14 of the Original Acquisition Note),** survive the making of this Agreement and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Governing Law; Binding Effect</u>**. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Expenses</u>**. Borrower agrees to pay all of Lender's fees incurred in connection with this Agreement, including, without limitation, reasonable attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Captions</u>**. The captions contained herein are not a part of this Agreement; they are only for the convenience of the parties hereto and do not in any way modify, amplify or give full notice of any of the terms or conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

***[Remainder of Page Intentionally Left Blank]***

**IN WITNESS WHEREOF,** the parties hereto have caused this Agreement to be duly executed the day and year first above written.

---

| | |
|:---|:---|
| **<u>BORROWER</u>:** | **<u>BORROWER</u>:** |
| **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company | **165 TOWNSHIP LINE ROAD OWNER LLC**, a Delaware limited liability company |
| By: | 165 TOWNSHIP LINE ROAD MEMBER LLC, a Delaware limited liability company, its sole member |
| By: | 165 Township Line Road Managing Member, a Delaware Limited Liability Company, its managing member |
| By: | JOSS Realty Partners B LLC, a Delaware limited liability company, its managing member |
| By: | /s/ Larry Botel |
|  | Larry Botel, Sole member |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 20<sup>th</sup> day of November in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

---

| | | |
|:---|:---|:---|
| **<u>LENDER</u>:** | **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** | **WILMINGTON SAVINGS FUND SOCIETY, FSB** |
| By: | /s/ Sean Finnegan | /s/ Sean Finnegan |
|  | Name: | Sean Finnegan |
|  | Title: | Senior Vice President |

---

[Remainder of page intentionally left blank;

Joinder/Acknowledgement continues on following page]

[Signatory Page to Fifth Amendment to Acquisition Note (165 Township Line Road)]

**<u>JOINDER OF GUARANTOR</u>**

Guarantor hereby joins in this Agreement solely to acknowledge his consent thereto and to confirm that: the Guaranty and the Environmental Indemnity remain unmodified and in full force and effect; Guarantor has no defenses to such documents; and Guarantor hereby releases, waives and relinquishes to Lender any defense that Guarantor may or might have had based on any action, inaction, or other matter relating to such documents or the Loan, from October 20, 2017 to the date of this Agreement.

---

| |
|:---|
| **<u>GUARANTOR</u>:** |
| /s/ Larry Botel |
| **LARRYBOTEL** |

---

STATE OF NEW YORK : <br> : SS <br> COUNTY OF NEW YORK :

On the 20<sup>th</sup> day of No ember in the year 2025 before me, the undersigned, personally appeared Larry Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the persons upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Leslie Alwadish |
| Notary Public |

---

[Signatory Page to Fifth Amendment to Acquisition Note (165 Township Line Road)]

## Exhibit 10.23

**Exhibit 10.23**

**RECORDING REQUESTED BY AND**

**UPON RECORDATION RETURN TO:**

Hunton & Williams LLP

200 Park Avenue

New York, New York 10166

Attention: Peter J. Mignone. Esq.

**NAPA SQUARE OWNER NY LLC,**

a Delaware limited liability company.

**ONE NAPA LLC,**

a Delaware limited liability company,

and

**JNK NAPA SQUARE LLC.**

a Delaware limited liability company

collectively as trustor

(Borrower)

to

**FIRST AMERICAN TITLE INSURANCE COMPANY.**

as trustee

(Trustee)

for the benefit of

**INSURANCE STRATEGY FUNDING II, LLC,**

a Delaware limited liability company, as beneficiary

(Lender)

**DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, FIXTURE FILING AND SECURITY AGREEMENT**

---

| | |
|:---|:---|
| Dated: | March 4, 2016 |
| Location: | 935 and 955 Franklin Street |
|  | 952 and 960 School Street and |
|  | 1401, 1425, 1455, 1463, 1465 and 1485 First Street Napa, California |
| County: | Napa |
| APN: | 003-204-010 |

---

**TABLE OF Contents**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| Article I GRANT OF SECURITY AND WARRANTY OF TITLE | Article I GRANT OF SECURITY AND WARRANTY OF TITLE | 1 |
| 1.1 | Property Granted | 1 |
| 1.2 | Warranty of Title | 6 |
| 1.3 | Security Agreement | 7 |
| Article II COVENANTS AND REPRESENTATIONS AND WARRANTIES OF BORROWER | Article II COVENANTS AND REPRESENTATIONS AND WARRANTIES OF BORROWER | 7 |
| 2.1 | General Covenants, Representations and Warranties | 7 |
| 2.2 | Additional Covenants, Representations and Warranties Concerning the Property | 12 |
| 2.3 | Insurance | 17 |
| 2.4 | Damage and Destruction | 21 |
| 2.5 | Condemnation | 25 |
| 2.6 | Liens and Liabilities | 28 |
| 2.7 | Taxes and Other Charges | 29 |
| 2.8 | Intentionally Omitted | 30 |
| 2.9 | Inspection | 30 |
| 2.10 | Records; Reports and Audits; Maintenance of Records | 30 |
| 2.11 | Borrower's Certificates | 32 |
| 2.12 | Security Interest | 32 |
| 2.13 | Security Agreement | 33 |
| 2.14 | Intentionally Omitted | 35 |
| 2.15 | TI/LC Reserve | 35 |
| 2.16 | Intentionally Omitted | 37 |
| 2.17 | Reserves Generally | 37 |
| 2.18 | Access Laws | 37 |
| 2.19 | Future Advances; Secured Indebtedness | 38 |
| 2.20 | OFAC | 38 |
| 2.21 | ERISA | 39 |
| 2.22 | Property Management Covenants | 39 |
| Article III ASSIGNMENT OF LEASES AND RENTS AND OTHER SUMS | Article III ASSIGNMENT OF LEASES AND RENTS AND OTHER SUMS | 40 |
| 3.1 | Assignment | 40 |
| 3.2 | Leases and Rents | 41 |

---

- i -

---

| | | |
|:---|:---|:---|
| Article IV ADDITIONAL ADVANCES; EXPENSES; INDEMNITY | Article IV ADDITIONAL ADVANCES; EXPENSES; INDEMNITY | 43.0 |
| 4.1 | Additional Advances and Disbursements | 43.0 |
| 4.2 | Other Expenses | 43.0 |
| 4.3 | Indemnity | 44.0 |
| 4.4 | Interest After Default | 46.0 |
| Article V SALE, TRANSFER OR MORTGAGING OF THE PROPERTY; CHANGE OF CONTROL | Article V SALE, TRANSFER OR MORTGAGING OF THE PROPERTY; CHANGE OF CONTROL | 46.0 |
| 5.1 | Continuous Ownership; Change of Control | 46.0 |
| 5.2 | No Subordinate Financing | 48.0 |
| 5.3 | Assumption of the Loan | 48.0 |
| Article VI DEFAULTS | Article VI DEFAULTS | 49.0 |
| 6.1 | Events of Default | 49.0 |
| Article VII REMEDIES | Article VII REMEDIES | 52.0 |
| 7.1 | Remedies Available | 52.0 |
| 7.2 | Application of Proceeds | 56.0 |
| 7.3 | Right and Authority of Receiver or Lender in the Event of Default; Power of Attorney | 57.0 |
| 7.4 | Occupancy After Foreclosure | 59.0 |
| 7.5 | Notice to Account Debtors | 59.0 |
| 7.6 | Cumulative Remedies | 59.0 |
| 7.7 | Deficiency | 59.0 |
| 7.8 | Borrower's Waivers | 60.0 |
| Article VIII REPORTING AND WITHHOLDING REQUIREMENTS | Article VIII REPORTING AND WITHHOLDING REQUIREMENTS | 60.0 |
| 8.1 | Withholding | 60.0 |
| 8.2 | Form 1099-S | 61.0 |
| 8.3 | Transfer Tax | 61.0 |
| Article IX MISCELLANEOUS TERMS AND CONDITIONS | Article IX MISCELLANEOUS TERMS AND CONDITIONS | 61.0 |
| 9.1 | Time of Essence | 61.0 |
| 9.2 | Release of This Security Instrument | 62.0 |
| 9.3 | Certain Rights of Lender | 62.0 |
| 9.4 | Additional Borrower's Waivers | 62.0 |
| 9.5 | Notices | 63.0 |
| 9.6 | Successors and Assigns | 64.0 |
| 9.7 | Severability | 64.0 |
| 9.8 | Waiver; Discontinuance of Proceedings | 64.0 |

---

- ii -

---

| | | |
|:---|:---|:---|
| 9.9 | Construction of Provisions | 65.0 |
| 9.10 | Counting of Days | 66.0 |
| 9.11 | Application of the Proceeds of the Note | 66.0 |
| 9.12 | Unsecured Portion of Indebtedness | 66.0 |
| 9.13 | Cross-Default | 66.0 |
| 9.14 | Publicity | 66.0 |
| 9.15 | Construction of this Document | 67.0 |
| 9.16 | No Merger | 67.0 |
| 9.17 | Lender May File Proofs of Claim | 67.0 |
| 9.18 | Fixture Filing | 67.0 |
| 9.19 | Assignment by Lender | 67.0 |
| 9.20 | No Representation | 68.0 |
| 9.21 | Limited Recourse | 68.0 |
| 9.22 | Entire Agreement and Modifications | 70.0 |
| 9.23 | Commissions | 71.0 |
| 9.24 | Intentionally Omitted | 71.0 |
| 9.25 | Usury Savings Clause | 71.0 |
| 9.26 | Right to Deal | 72.0 |
| 9.27 | Sole Discretion of Lender | 72.0 |
| 9.28 | Provisions as to Covenants and Agreements | 72.0 |
| 9.29 | No Joint Venture | 72.0 |
| 9.30 | Indemnification Provisions | 73.0 |
| 9.31 | Applicable Law; Consent to Jurisdiction; No Jury | 73.0 |
| 9.32 | Substitution of Trustee | 74.0 |
| 9.33 | The Trustee's Fees | 74.0 |
| 9.34 | Certain Rights | 75.0 |
| 9.35 | Retention of Money | 75.0 |
| 9.36 | Perfection by Appointment | 75.0 |
| 9.37 | Succession Instruments | 75.0 |
| 9.38 | Reliance of Trustee | 75.0 |
| 9.39 | Environmental Indemnity | 75.0 |
| Article X ADDITIONAL REPRESENTATIONS, WARRANTIES AND WAIVERS OF BORROWER | Article X ADDITIONAL REPRESENTATIONS, WARRANTIES AND WAIVERS OF BORROWER | 76.0 |
| 10.1 | Conditions to Exercise of Rights | 76.0 |
| 10.2 | Defenses | 76.0 |

---

- iii -

---

| | | |
|:---|:---|:---|
| 10.3 | Lawfulness and Reasonableness | 77.0 |
| 10.4 | Enforceability | 77.0 |
| 10.5 | Reinstatement of Lien | 77.0 |
| Article XI CASH MANAGEMENT | Article XI CASH MANAGEMENT | 78.0 |
| 11.1 | Clearing Account | 78.0 |
| 11.2 | Cash Management Account | 79.0 |
| 11.3 | Payments Received Under Cash Management Agreement | 80.0 |
| Article XII SERVICER | Article XII SERVICER | 80.0 |
| 12.1 | Servicer | 80.0 |
| Article XIII STATE SPECIFIC PROVISIONS | Article XIII STATE SPECIFIC PROVISIONS | 80.0 |
| 13.1 | Principles of Construction | 80.0 |
| 13.2 | Due on Sale/Encumbrance | 81.0 |
| 13.3 | Power of Sale | 82.0 |
| 13.4 | Concerning the Trustee | 84.0 |
| Article XIV CO-TENANCY PROVISIONS | Article XIV CO-TENANCY PROVISIONS | 84.0 |
| 14.1 | Joint and Several Liability | 84.0 |
| 14.2 | Waivers | 84.0 |
| 14.3 | Partition | 84.0 |
| 14.4 | Tenancy in Common | 85.0 |
| 14.5 | Notice of Default of Co-Tenancy Agreement | 85.0 |
| 14.6 | Compliance with Co-Tenancy Agreement | 85.0 |
| 14.7 | Ownership | 85.0 |
| 14.8 | Designation of Manager | 85.0 |
| 14.9 | Subordination | 85.0 |

---

- iv -

THIS DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, FIXTURE FILING AND SECURITY AGREEMENT (this "**Security Instrument**") is made as of the 4th day of March, 2016, by **NAPA SQUARE OWNER NY LLC,** a Delaware limited liability company, having an address at c/o JOSS Realty Partners LLC, 1345 Avenue of the Americas, 31<sup>st</sup> Floor, New York, New York 10105, **ONE NAPA LLC,** a Delaware limited liability company, having an address at 200 West 86<sup>th</sup> Street, #16J, New York, New York 10024 and **JNK NAPA SQUARE LLC,** a Delaware limited liability company, having an address at 9 Appeld Court, Hillsdale, New Jersey 07642, as trustor (individually and collectively, as the context may require, "**Borrower**"**)**, to **FIRST AMERICAN TITLE INSURANCE COMPANY** having an address at l First American Way, Santa Ana, California 92707, as trustee ("**Trustee**") for the benefit of **INSURANCE STRATEGY FUNDING II, LLC,** a Delaware limited liability company, having an address at c/o JPMorgan Chase Bank, N.A., 270 Park Avenue, 9th Floor, New York, New York 10017, as beneficiary ("**Lender**").

**RECITALS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower is the owner of the fee simple estate in the Real Estate (as hereinafter defined).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Borrower, by its promissory note of even date herewith given to Lender, is indebted to Lender in the principal sum of TWENTY-TWO MILLION THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($22,300,000.00) in lawful money of the United States of America (the note, together with all extensions, renewals, modifications, substitutions and amendments thereof shall collectively be referred to as the "**Note**"), with interest from the date thereof at the rates set forth in the Note, principal and interest to be payable in accordance with the terms and conditions provided in the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower desires to secure the payment and performance of the Obligations as defined in <u>Section 1.1</u> hereof.

ARTICLE I

GRANT OF SECURITY AND WARRANTY OF TITLE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Property Granted</u>. Borrower, for and in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration in hand paid, the receipt of which hereby is acknowledged, and the further consideration, uses, purposes and trusts herein set forth and declared, has granted, bargained, transferred, assigned, set-over and conveyed and by these presents does grant, bargain, transfer, assign, set-over and convey unto Trustee, and unto its successors in the trust hereby created and its assigns with the power of sale, for the benefit of Lender, forever, all of the Borrower's right, title and interest in, and to the following property, rights, interests and estates now owned, or hereafter acquired by Borrower (collectively, the "**Property**") described in the following <u>paragraphs (a)</u> through <u>(r)</u>, inclusive (collectively, the "**Granting Clauses**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All that certain real property owned in fee simple absolute situated in Napa (Napa County), California, and more particularly described in <u>Exhibit A</u> attached hereto and incorporated herein by this reference, as the description of such property may be amended, modified or supplemented from time to time, together with all of the easements (in gross and/or appurtenant). rights-of-way strips and gores of land, vaults streets, ways, alleys, passages, sewer rights, waters, water courses, water rights, air rights, development rights and powers, and located on the real estate described on <u>Exhibit A</u> or under, above or adjacent to the same or any part or parcel thereof, and all rights, privileges, franchises, tenements, hereditaments, and appurtenances and additions now or hereafter belonging or in any way appertaining thereto, and all of the estate, right title, interest, claim and demand whatsoever of Borrower in or to such property, either at law or in equity, in possession or in expectancy, now owned or hereafter acquired (collectively, the "**Real Estate**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All structures, buildings and improvements of every kind and description now or at any time hereafter located or placed on the Real Estate, including, without limitation, all gas and electric fixtures, radiators, heaters, washing machines, dryers, refrigerators, ovens, engines and machinery, boilers, ranges, elevators and motors, plumbing and heating fixtures, antennas, carpeting and other floor coverings, water heaters, awnings and storm sashes, and cleaning apparatus which are or shall be attached to, contained in or used in connection with the Real Estate or said buildings, structures or improvements and all appurtenances and additions thereto and betterments, renewals, substitutions and replacements thereof (collectively the "**Improvements**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent the same are not Improvements, all fixtures, appliances, machinery, furniture, furnishings, decorations, tools and supplies, now owned or hereafter acquired or leased by Borrower, including, without limitation, radios, televisions, carpeting, telephones, cash registers, computers, lamps, glassware, restaurant and kitchen equipment, and all building materials and equipment hereafter situated on or about the Real Estate to be attached to or used in or in connection with the Improvements, including, without limitation all heating, lighting, incinerating, waste removal and power equipment and fixtures, engines, pipes, tanks, motors, conduits, switchboards, security and alarm systems, plumbing, lifting, cleaning, fire prevention and fire extinguishing apparatus, refrigeration systems, washing machines, dryers, stoves, ranges, refrigerators, ventilating, and communications apparatus, air cooling and air conditioning apparatus, escalators, elevators, ducts and compressors, materials and supplies and all other goods, equipment, machinery, apparatus, chattels, tangible personal property, fixtures and fittings now owned or hereafter acquired by Borrower wherever located, together with all additions, replacements, substitutions, parts, fittings, accessions, attachments, accessories, modifications and alterations of any of the foregoing, and all warranties and guaranties relating to the foregoing (collectively, the "**Personal Property**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All minerals, flowers, shrubs, crops, trees, timber and other emblements or landscaping features now or hereafter serving the Real Estate or located on the Real Estate or under, above or adjacent to the same or any part or parcel thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All water, ditches, wells, reservoirs and drains and all water, ditch, well, reservoir and drainage rights which are appurtenant to, located on, under or above or used in connection with the Real Estate or the Improvements, or any part thereof, whether now existing or hereafter created or acquired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All funds (including, all reserve funds), accounts (including, operating accounts), deposits, and other rights and evidence of rights to cash, now or hereafter created or held by Lender pursuant to this Security Instrument or any other of the Loan Documents (as hereinafter defined), including, without limitation, all funds now or hereafter on deposit with Lender, or any servicer or financial institution that Lender may from time to time designate (collectively, the "**Depository**") pursuant to <u>Section 2.15</u> and <u>Article XI,</u> of this Security Instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All the ground leases, leases, subleases, lettings, licenses, concessions, occupancy and surrender agreements of the Real Estate or the Improvements now or hereafter entered into, and all estates, rights, titles, liberties, privileges, interests, tenements, hereditaments and appurtenances, reversions and remainders whatsoever, in any way belonging, relating or appertaining to the Real Estate or any part thereof, or which shall in any way belong, relate or be appurtenant thereto, whether now owned or hereafter acquired by Borrower (collectively, the "**Leases**") and all rents (whether denoted as advance rent, minimum rent, percentage rent, additional rent or otherwise), maintenance payments, assessments, receipts, issues, income, royalties, profits, earnings, revenues, proceeds, bonuses, deposits (whether denoted as security deposits or otherwise), lease termination fees or payments, rejection damages, buy-out fees and any other fees made or to be made in lieu of rent, any award made hereafter to Borrower in any court proceeding involving any tenant, subtenant, lessee, licensee or concessionaire under any Leases in any bankruptcy, insolvency or reorganization proceedings in any state or federal court, and all other payments, rights and benefits of whatever nature from time to time arising from the use or enjoyment of all or any portion of the Real Estate or the Improvements or from any Lease, or any license, concession, occupancy agreement or other agreement pertaining thereto or arising from any of the Contracts (as hereinafter defined) or any of the General Intangibles (as hereinafter defined), including, without limitation, (i) rights to payment earned under Leases for space in the Improvements for the operation of ongoing businesses, if any, and (ii) all other income, consideration, issues, accounts, profits or benefits of any nature arising from the ownership, possession, use or operation of the Property, including, without limitation, all revenues, receipts, income, receivables and accounts relating to or arising from rentals, rent equivalent income, income and profits from vending machines, telephone and television systems, laundry facilities (collectively, the "**Rents and Profits**") and all cash or securities deposited to secure performance by the tenants, subtenants, lessees or licensees, as applicable, of their obligations under any such Leases, whether said cash or securities are to be held until the expiration of the terms of said Leases or applied to one or more of the installments of rent coming due prior to the expiration of said terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All contracts and agreements (including any license or franchise agreements) now or hereafter entered into relating to any part of the Real Estate or the Improvements or any other portion of the Property (collectively, the "**Contracts**") and all revenue, income and other benefits thereof, including, without limitation, management agreements, operating agreements, parking agreements, masterplan documents, condominium documents, declarations, reciprocal easement agreements, development agreements, service contracts, maintenance contracts, equipment leases, personal property leases, agreements relating to collection of receivables or the use of customer or tenant lists or other information, and any contracts or documents relating to construction on any part of the Real Estate or the Improvements or other portions of the Property (including, without limitation, plans, drawings, surveys, tests, reports, bonds and governmental approvals) or to the management or operation of any part of the Real Estate or the Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any and all rights of each Borrower under that certain Tenancy in Common Agreement dated as of the date hereof by and among Napa Square Owner NY LLC, One Napa LLC, and JNK Napa Square LLC (the "**Co-Tenancy Agreement**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All present and future monetary deposits given to any public or private utility with respect to utility services furnished to any part of the Real Estate or the Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All present and future funds, goods, accounts, instruments, accounts receivable, documents, causes of action, claims, general intangibles (including, without limitation, copyrights, trademarks, trade names, intellectual property rights, service marks and symbols) now or hereafter used in connection with any part of the Real Estate or the Improvements, all names by which the Real Estate or the Improvements may be operated or known, all rights to carry on business under such names, and all rights, interest and privileges which Borrower has or may have as developer or declarant under any covenants, restrictions or declarations now or hereafter relating to the Real Estate or the Improvements and all notes or chattel paper now or hereafter arising from or by virtue of any transactions related to the Real Estate or the Improvements, and all customer or tenant lists, other lists and business information relating in any way to the Real Estate, the Improvements, other portions of the Property or the use thereof (collectively, the "**General Intangibles**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) All water taps, sewer taps, certificates of occupancy, permits (including any building permits and approvals), licenses, franchises certificates, consents, approvals and other rights and privileges now or hereafter obtained in connection with the Real Estate or the Improvements and all present and future warranties and guaranties relating to the Improvements or to any equipment, fixtures, furniture, furnishings, personal property or components of any of the foregoing now or hereafter located or installed on the Real Estate or the Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) All building materials, supplies and equipment now or hereafter placed on the Real Estate or in the Improvements, or to be attached to or used in connection with the Improvements and all architectural renderings, models, drawings, plans, specifications, studies and data now or hereafter relating to the Real Estate or the Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) All right, title and interest of Borrower in any insurance policies or binders now or hereafter relating to and to the extent of the Property (whether or not Borrower is required to carry such insurance by Lender hereunder), including, without limitation, any unearned premiums thereon, proceeds of hazard, title and other insurance and proceeds (including, without limitation those proceeds received pursuant to any sales or rental agreements of Borrower in respect of the property described in these Granting Clauses), and all judgments, damages, awards, settlements and compensation (including, without limitation, interest thereon) heretofore or hereafter made to the present and all subsequent owners of the Real Estate and/or any other property or rights conveyed or encumbered hereby for any injury to or decrease in the value thereof for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) All proceeds, products, substitutions, and accessions (including claims and demands therefor) of the conversion, voluntary or involuntary, of any of the foregoing into cash or liquidated claims, including, without limitation, proceeds of insurance and condemnation or other awards, any awards for any change of grade of streets and all refunds, rights or credits arising from a reduction in real estate taxes, assessments and/or other Impositions (as hereinafter defined) charged against the Real Estate or the Improvements as a result of tax certiorari or any other applications or proceedings for reduction of any Impositions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) All other or greater rights and interests of every nature in the Real Estate or the Improvements and in the possession or use thereof and income therefrom, whether now owned or hereafter acquired by Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) All extensions, additions, improvements, betterments, renewals and replacements, substitutions, or proceeds of any of the foregoing, and all inventory, accounts, chattel paper, documents, instruments, equipment, fixtures, farm products, consumer goods, general intangibles and other property of any nature constituting proceeds acquired with proceeds of any of the property described hereinabove; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) any and all other rights of Borrower in and to the items set forth in <u>clauses (a)</u> through (q) above.

**FOR THE PURPOSE OF SECURING:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The indebtedness (hereinafter sometimes referred to as the "**Loan**") evidenced by the Note in the original principal amount of TWENTY-TWO MILLION THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($22,300,000.00), together with interest, fees, late charges and any and all other amounts as provided in the Note, this Security Instrument and the other Loan Documents (including, without limitation, interest at the Default Rate and any Late Charges (as such terms are defined in the Note));

&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) The full and prompt payment and performance of all of the provisions, agreements, covenants and obligations herein contained and contained in any other agreements, documents or instruments now or hereafter evidencing, securing or otherwise relating to the indebtedness evidenced by the Note;

&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) Any and all additional advances made by Lender to protect or preserve the Property or the lien or security interest created hereby on the Property, or for taxes, assessments or insurance premiums as hereinafter provided or for performance of any of Borrower's obligations hereunder or under the other Loan Documents or for any other purpose provided herein or in the other Loan Documents; 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;(4) Any and all other indebtedness and obligations now owing or which may hereafter be owing by Borrower or any other Borrower Party (as hereinafter defined) to Lender arising from, in connection with or in any way relating to the Loan and/or any of the Property, however and whenever incurred or evidenced, whether express or implied, direct or indirect, absolute or contingent, or due or to become due, and all renewals, modifications, consolidations, replacements and extensions thereof.

All of the indebtedness and other obligations and matters referred to in <u>Paragraphs (l)</u> through <u>(4)</u> above are herein sometimes referred to collectively as the "**Obligations**". The Note, this Security Instrument and such other agreements, documents and instruments executed and/or delivered in connection with the Loan, including, without limitation, each of the following documents, each dated as of the date hereof:

&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) Assignment of Leases and Rents from Borrower, as assignor, to Lender, as assignee (the "**Assignment of Leases and Rents**");

&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) Guaranty from Lawrence R. Botel, an individual, Lisa S. Karmin, an individual and Pamela Sprayregen, an individual (individually and collectively, as the contexts requires, "**Indemnitor**") in favor of Lender (the "**Guaranty**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Assignment of Property Management Agreement from Borrower in favor of Lender and consented to by BMS Realty Services, LLC, a Maryland limited liability company ("**Manager**") (the "**Assignment of Property Management 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;(8) Compliance with Law Certificate from Borrower in favor of Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) No Adverse Change Certificate from Borrower in favor of Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Diligence Delivery Certificate from Borrower in favor of Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Property Leases Certificate from Borrower in favor of Lender; 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;(12) Uniform Commercial Code ("**UCC**") Financing Statements by Borrower, as debtor, in favor of Lender, as secured party;

together with any and all renewals, amendments, extensions and modifications of any of the foregoing, are sometimes collectively referred to herein as the "**Loan Documents**". Each of Borrower and Indemnitor are sometimes referred to herein, individually, as a "**Borrower Party**", and collectively, as the "**Borrower Parties**").

IN TRUST, WITH THE POWER OF SALE, to secure payment to Lender of the Loan at the time and in the manner provided for its payment in the Note and in this Security Instrument.

PROVIDED, HOWEVER, these presents are upon the express condition that, if Borrower shall well and truly pay to Lender the indebtedness evidenced by the Note and secured by this Security Instrument at the time and in the manner provided in the Note, this Security Instrument and the other Loan Documents, shall well and truly perform and shall well and truly abide by and comply with all of the other Obligations as set forth in this Security Instrument and the other Loan Documents, these presents and the estate hereby granted shall cease, terminate and be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Warranty of Title</u>. Borrower hereby represents, warrants, covenants and certifies: (a) Borrower has good, marketable and insurable, indefeasible fee simple absolute title to the Real Estate and Improvements located thereon, free and clear of all Liens (as hereinafter defined), subject only to those exceptions shown in the title insurance policy insuring the lien of this Security Instrument (the "**Permitted Encumbrances**"); (b) Borrower has and covenants that it will continue to have full power and lawful authority to encumber and convey the Property as provided herein; (c) this Security Instrument is, and Borrower covenants that this Security Instrument will continue to remain a valid and enforceable first priority lien on and security interest in the Property; and (d) Borrower hereby warrants and will forever warrant and defend such title (subject to the Permitted Encumbrances) and the validity, enforceability and priority of the lien and security interest hereof against the claims of all Persons and parties whomsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Security Agreement</u>. This Security Instrument is both a real property deed of trust and a "security agreement" within the meaning of the Uniform Commercial Code and is being recorded as a fixture filing. With respect to said fixture filing, (i) the debtor is Borrower, and Borrower's name and address appear in the first paragraph of this Security Instrument, and (ii) the secured party is Lender, and Lender's name and address appear in the first paragraph of this Security Instrument. The Property includes both real and personal property and all other rights and interests, whether tangible or intangible in nature, of Borrower in the Property, including, but not limited to, the Rents and Profits and all proceeds thereof and all fixtures.

ARTICLE II

COVENANTS AND REPRESENTATIONS AND WARRANTIES OF BORROWER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>General Covenants, Representations and Warranties</u>. Borrower covenants, represents and warrants to Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payment of Obligations</u>. Borrower shall punctually pay when due and perform the Obligations as and when due in accordance with the provisions set forth in this Security Instrument, the Note and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authority; Continuation of Existence</u>. Each Borrower is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, is authorized to transact business in the State of California, and has all necessary licenses, authorizations, registrations and/or approvals, and full power and authority, to own the Property. Each Borrower will maintain in good standing its existence, franchises, rights and privileges under the laws of the State of Delaware and its rights to transact business in the State of California and will not, without the prior written consent of Lender, (i) dissolve, terminate or otherwise dispose, directly or indirectly or by operation of law, of all or substantially all of its assets or (iii) change its name or its legal structure or organizational form from a limited liability company organized under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Further Assurances</u>. Borrower will, at Borrower's sole cost and expense, (i) promptly correct any defect or error which may be discovered in the contents of this Security Instrument or any other Loan Documents or any other agreement to which Borrower is a party or in the execution, acknowledgment or recordation thereof, and (ii) promptly do, execute, acknowledge and deliver, any and all such further acts, mortgages, security deeds, conveyances, deeds of trust, security agreements, assignments, estoppel certificates, financing statements and continuations thereof, assignments of rents or leases, notices of assignment, transfers, certificates, assurances and other instruments as Lender may reasonably require from time to time in order to carry out more effectively the purposes of this Security Instrument, the rights or interests covered or intended to be covered hereby, to perfect and maintain said lien and security interest, and to better assure, convey, grant, protect, continue, assign, transfer and confirm unto Lender the rights granted or intended to be granted to Lender hereunder or under any other instrument executed in connection with this Security Instrument or which Borrower may be or become bound to confirm, convey, bargain, sell, release, warrant, transfer, mortgage, pledge, grant, assure, set over or assign to Lender in order to carry out the intention or facilitate the performance of the provisions of this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Recordation and Re-Recordation of Security Instrument</u>. Borrower will, at the request of Lender, promptly record and re-record, file and refile and register and re-register this Security Instrument, any financing or continuation statements and every other instrument in addition or supplemental to any thereof that shall be required by any present or future law in order to perfect and maintain the validity, effectiveness and priority of this Security Instrument and the lien and security interest intended to be created hereby, or to subject after-acquired property of Borrower to such lien and security interest, in such manner and places and within such times as may be necessary to accomplish such purposes and to preserve and protect the rights and remedies of Lender. Borrower will furnish to Lender evidence satisfactory to Lender of every such recording, filing or registration. Lender may, at Borrower's sole expense, file copies or reproductions of this instrument as financing statements at any time and from time to time at Lender's option without further authorization from Borrower. It is further agreed that Borrower hereby appoints Lender as its attorney-in-fact, which appointment is irrevocable and shall be deemed to be coupled with an interest, with respect to the execution, acknowledgment, delivery and filing, registering or recording for and in the name of Borrower of any of the documents or instruments referred to in this <u>Section 2.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Defense of Title and Litigation</u>. If the lien, security interest, validity, enforceability or priority of this Security Instrument, or if title or any of the rights of Borrower or Lender in or to the Property, shall be endangered or questioned, or shall be attacked directly or indirectly, or if any action or proceeding is instituted against Borrower or Lender with respect thereto. Borrower will promptly notify Lender thereof and will diligently cure any defect which may be developed or claimed, and will take all necessary and proper steps for the defense of such action or proceeding, including, without limitation, the employment of counsel, the making of a demand for such defense under Borrower's title insurance policy, the prosecution or defense of litigation and, subject to Lender's prior written approval, the compromise, release or discharge of any and all adverse claims. Lender (whether or not named as a party to such actions or proceedings) is hereby authorized and empowered (but shall not be obligated) to take such additional steps as it may deem necessary or proper for the defense of any such action or proceeding for the protection of the lien, security interest, validity, enforceability or priority of this Security Instrument or of such title or rights, including the employment of counsel, the prosecution or defense of litigation, the compromise, release or discharge of such adverse claims, the purchase of any tax title and the removal of such prior liens and security interests. Borrower shall, on demand, pay or reimburse Lender for all expenses (including attorneys' fees and disbursements) incurred by it in connection with the foregoing matters. All such costs and expenses of Lender, until paid or reimbursed by Borrower, shall be part of the Obligations and shall be and shall be deemed to be secured by this Security Instrument. It is further agreed that Borrower hereby appoints Lender as its attorney-in-fact, which appointment is irrevocable and shall be deemed to be coupled with an interest, with respect to the taking of such steps as may be necessary or proper in the sole discretion of Lender with respect to the matters referred to in this <u>Section 2.1(e)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>SPE Covenants</u>. Each Borrower has and shall (and the organizational documents of each Borrower shall provide that such Borrower 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;(1) maintain its own separate books and records and bank accounts;

&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) at all times hold itself out to the public and all other Persons as a legal entity separate from its sole member (the "**Member**") and any other Person;

&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) file its own tax returns, if any, as may be required under applicable law, to the extent (i) not part of a consolidated group filing a consolidated return or returns or (ii) not treated as a division for tax purposes of another taxpayer, and pay any taxes so required to be paid under applicable law;

&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) not commingle its assets with assets of any other Person;

&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) conduct its business in its own name and strictly comply with all organizational formalities to maintain its separate existence;

&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) maintain separate financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) pay its own liabilities only out of its own funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) maintain an arm's length relationship with its Affiliates and Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) pay the salaries of its own employees, if any, only from its own funds and maintain a sufficient number of employees, if any, in light of its contemplated business 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;(10) not hold out its credit or assets as being available to satisfy the obligations of others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) allocate fairly and reasonably any overhead for shared office space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) use separate stationery, invoices and checks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) not pledge its assets for the benefit of any other Person, other than in connection with 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;(14) correct any known misunderstanding regarding its separate identity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) maintain adequate capital in light of its contemplated business purpose, transactions and liabilities; provided, however, no Person shall be required to make direct or indirect capital contributions to Borrower in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) not acquire any securities of Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) cause the directors, officers, agents and other representatives of Borrower to act at all times with respect to Borrower consistently and in furtherance of the foregoing and in the best interests of Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) cause the limited liability company agreement of such Borrower (the "**LLC Agreement**") to provide that (A) upon the occurrence of any event that causes Member to cease to be the member of such Borrower (other than (x) upon an assignment by Member of all of its limited liability company interest in such Borrower and the admission of the transferee in accordance with the Loan Documents and the LLC Agreement, or (y) the resignation of Member and the admission of an additional member of such Borrower in accordance with the terms of the Loan Documents and the LLC Agreement), any Person acting as the independent, springing or special member of such Borrower shall, without any action of any other Person and simultaneously with Member ceasing to be the member of such Borrower, automatically be admitted to such Borrower ("**Special Member**") and shall continue such Borrower without dissolution and (B) Special Member may not resign from Borrower or transfer its rights as Special Member unless a successor Special Member has been admitted to Borrower as Special Member in accordance with requirements of Delaware law. Each Borrower has and shall further cause its LLC Agreement to provide that (v) Special Member shall automatically cease to be a member of Borrower upon the admission to Borrower of a substitute Member approved by Lender, (w) Special Member shall be a member of Borrower that has no interest in the profits, losses and capital of Borrower and has no right to receive any distributions of Borrower assets, (x) pursuant to Section 18-301 of the Delaware Limited Liability Company Act (the "**Delaware Act**"), Special Member shall not be required to make any capital contributions to Borrower and shall not receive a limited liability company interest in Borrower, (y) Special Member, in its capacity as Special Member, may not bind Borrower and (z) except as required by any mandatory provision of the Delaware Act, Special Member, in its capacity as Special Member, shall have no right to vote on, approve or otherwise consent to any action by, or matter relating to Borrower, including, without limitation, the merger, consolidation or conversion of Borrower. In order to implement the admission to Borrower of Special Member, Special Member shall execute a counterpart to the LLC Agreement or any amendment thereto. Prior to its admission to Borrower as Special Member, Special Member shall not be a member of Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) not guarantee any obligation of any Person, including any Affiliate, other than in connection with 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;(20) not engage, directly or indirectly, in any business other than the ownership, management and operation of the Property and the actions required or permitted to be performed 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;(21) not incur, create or assume any indebtedness other than as expressly permitted 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;(22) not make or permit to remain outstanding any loan or advance to, or own or acquire any stock or securities of, any Person, except that Borrower may invest in those investments permitted under the Loan Documents and may make any advance required or expressly permitted to be made pursuant to any provisions of the Loan Documents and permit the same to remain outstanding in accordance with such provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) to the fullest extent permitted by law, not engage in any dissolution, liquidation, consolidation, merger, asset sale or transfer of ownership interests other than such activities as are expressly permitted pursuant to the Loan Documents and subject to obtaining any approvals required under the LLC 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;(24) not form, acquire or hold any subsidiary (whether corporate, partnership, limited liability company or other);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) without the prior written consent of Lender, amend, modify, supplement, terminate or fail to comply with the separateness provisions of Borrower's organizational documents, as same may be further amended, modified or supplemented.

As used in this Security Instrument, the following terms shall have the following meanings:

"**Affiliate**" shall mean, with respect to any Person, (i) in the case of any such Person which is a partnership or limited liability company, any general partner or managing member in such partnership or limited liability company, respectively, (ii) any other Person which is directly or indirectly Controlled by, Controls or is under common Control (as each is hereinafter defined) with such Person or one or more of the Persons referred to in the preceding clause (i), and (iii) any other Person who is a senior executive officer, director or trustee of such Person or any Person referred to in the preceding clauses (i) and (ii); provided, however, in no event shall Lender or any of its Affiliates be an Affiliate of Borrower.

"**Control**" and the correlative terms "**controlled by**" and "**controlling**" shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management and policies of the business and affairs of the entity in question by reason of the ownership of beneficial interests, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Misrepresentations</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;(1) All materials, reports, financial statements, and other information pertaining to the Borrower Parties and the Property which were prepared by the Borrower Parties (and/or their Affiliates) and heretofore or hereafter delivered by the Borrower Parties to Lender, or delivered by any of the Borrower Parties (and/or their Affiliates) to any Person (e.g., an appraiser, an engineer, an environmental engineer, etc.) preparing materials, reports, financial statements and/or other information heretofore or hereafter delivered to Lender, are true, correct and complete in all material respects;

&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) All materials, reports, financial statements and other information pertaining to the Borrower Parties and the Property which were prepared by third parties unaffiliated with the Borrower Parties (as required by Lender or as to such matters Lender determines appropriate for the Borrower Parties to engage third parties to provide the same) and heretofore or hereafter delivered to Lender and any of the Borrower Parties or their Affiliates are, to the best of the Borrower's knowledge and belief (after having reviewed such materials, reports, financial statements and other information), true, correct and complete in all material respects; 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;(3) All representations and warranties made in the Note, this Security Instrument and the other Loan Documents, are true and correct in all material respects and do not omit to state any material fact or circumstances necessary to make the statements contained therein not materially misleading, except as otherwise disclosed in writing by Borrower to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Additional Covenants, Representations and Warranties Concerning the Property</u>. Borrower covenants, represents and warrants to Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Repair and Maintenance</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;(1) Borrower shall perform the repairs at the Property as more particularly set forth on <u>Schedule 2.2(a)</u> annexed hereto (such repairs, collectively, the "**Required Repairs**"). Within one hundred twenty (120) days of the date hereof, Borrower shall provide evidence reasonably satisfactory to Lender that all Required Repairs have been completed and performed in a good and workmanlike manner and in accordance with all applicable Governmental Regulations; provided however, that if any such Required Repairs cannot reasonably be completed within such one hundred twenty (120) day period and Borrower shall have commenced such Required Repairs within such one hundred twenty (120) day period and thereafter diligently and expeditiously proceeds to complete the same, said one hundred twenty (120) day period shall be extended for so long as it shall take Borrower in the exercise of due diligence to complete such Required Repairs, it being agreed that no such period as extended shall be for a period in excess of one hundred eighty (180) days from the date hereof, in the aggregate.

&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) Borrower shall cause the Property to be maintained in a good and safe condition and repair. The Improvements and the Personal Property shall not be removed, demolished or materially altered (except for normal replacement of the Personal Property and/or tenant improvements made in connection with a Lease which has been entered into by Borrower in accordance with the terms hereof) without the prior consent of Lender.

&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) Borrower shall promptly repair, replace or rebuild any part of the Property which may be destroyed by any casualty, or become damaged, worn or dilapidated or which may be affected by any proceeding of the character referred to in <u>Section 2.5</u> hereof and shall complete and pay for any structure at any time in the process of construction or repair on the Land.

&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) Borrower shall not initiate, join in, acquiesce in, or consent to any change in any private restrictive covenant, zoning law or other public or private restriction, limiting or defining the uses which may be made of the Property or any part thereof. If under applicable zoning provisions the use of all or any portion of the Property is or shall become a nonconforming use, Borrower will not cause or permit the nonconforming use to be discontinued or abandoned without the express written consent of Lender.

&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) Borrower will not permit any drilling or exploration for or extraction, removal or production of any minerals from the surface or the sub-surface of the Real Estate 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;(b) <u>Operation of the Property</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;(1) Borrower has and will maintain all necessary certificates, licenses, authorizations, registrations, permits and/or approvals necessary for the operation of all or any part of the Property, and the conduct of Borrower's business at the Property, including a permanent certificate of occupancy (to the extent required by any applicable Governmental Regulation (as hereinafter defined)) and all required zoning ordinance, building code, land use, environmental and other similar permits or approvals, all of which as of the date hereof are in full force and effect and not subject to any revocation, amendment, release, suspension or forfeiture and Borrower shall, promptly upon request by Lender, deliver to Lender copies of all of the same;

&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) Borrower represents and covenants that to Borrower's knowledge, (i) the Property and the present and contemplated use and/or occupancy of the Property comply with and do not conflict with or violate any of the applicable zoning ordinances, building codes, certificates of occupancy, handicapped accessibility laws, including, without limitation, the Americans with Disabilities Act of 1990, environmental laws and other similar applicable Governmental Regulations; (ii) Borrower has maintained and will maintain at the Property a sufficient number of on-site parking spaces to comply with all Governmental Regulations and all Permitted Encumbrances with respect to the Property; and (iii) Borrower has delivered to Lender a true, correct and complete copy of the standard form of Lease used at the Property as of the date hereof (the "**Lender-Approved Lease Form**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance with Governmental Regulations</u>. Borrower will perform and comply promptly with, and cause the Property to be maintained, used and operated in accordance with, any and all (i) present and future Governmental Regulations, (ii) similarly applicable orders, rules and regulations of any regulatory, licensing, accrediting, or rating organization or other body exercising similar functions, (iii) similarly applicable duties or obligations of any kind imposed under any Permitted Encumbrance or otherwise by covenant, condition, agreement or easement, public or private, and (iv) policies of insurance or the rules and regulations of any insurance underwriting or rating organization, at any time in force with respect to the Property. If Borrower receives any notice that Borrower or the Property is in default under or is not in compliance with any of the foregoing (regardless of whether such notice involves de minimis or minor aspects of non-compliance), or notice of any proceeding initiated under or with respect to any of the foregoing, Borrower will promptly furnish a copy of such notice to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Status of the Property</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;(1) The Real Estate is not located in an area identified by the Federal Emergency Management Agency or a successor thereto as an area having special flood hazards pursuant to the terms of the National Flood Insurance Act of 1968, or the Flood Disaster Protection Act of 1973, as amended, or any successor law, or if the Real Estate is located in such an area, Borrower has obtained and will maintain the insurance for the Property as specified in <u>Section 2.3(a)(iii)</u> hereof;

&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) The Property is served by all utilities in adequate supply required for the use thereof as herein contemplated;

&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) The Property is free from damage caused by fire or other casualty as of the date hereof;

&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) All streets necessary to serve the Property have been completed and are serviceable, and Borrower has unrestricted access from public roads to the Real Estate and the Improvements; 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;(5) There is no condemnation or similar proceeding pending or threatened affecting any part of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Zoning; Title Matters</u>. Borrower will not, without the prior written consent of Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) initiate, join in, support or acquiesce in any zoning reclassification of the Property or seek any variance under existing zoning ordinances applicable to the Property or use or permit the use of the Property in a manner which would result in such use becoming a nonconforming use of all or any portion of the Property under applicable zoning ordinances;

&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) modify, amend or supplement any of the Permitted Encumbrances;

&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) impose any restrictive covenants or encumbrances upon the Property, or execute or file any subdivision plat affecting the Property, or consent to the annexation of the Property to any municipality; 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;(4) permit or suffer the Property to be used by the public or any Person in such manner as might make possible a colorable claim of adverse usage or possession or of any implied dedication or easement. Borrower will perform and comply with, and cause the Property to be maintained, used and operated in accordance with, the Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Hazardous Substances; Asbestos</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;(1) To the best of Borrower's knowledge after due and diligent inquiry of Borrower's employees and review of Borrower's files (collectively, "**Due Inquiry**"), except as otherwise disclosed to Lender in writing on <u>Schedule 2.2(f)</u> attached hereto, or in the Environmental Reports (as hereinafter defined), the Property is not now nor has it ever been listed as a Super Fund Site on the National Priorities List or similar state registry. Borrower has not dumped, stored, released, discharged, disposed of, manufactured, or used any Hazardous Substances (as hereinafter defined) at or about the Property except as disclosed to Lender in the environmental reports delivered to Lender in connection with the closing of the Loan (the "**Environmental Reports**") or otherwise in compliance with applicable Governmental Regulations (as hereinafter defined). Borrower represents that, to the best of its knowledge after Due Inquiry, except as disclosed to Lender in the Environmental Reports, (i) there has been no dumping, discharge, storage (except for storage in compliance with applicable Governmental Regulations), or disposal of any Hazardous Substances upon the Property; (ii) the Property is in compliance with all Governmental Regulations with respect to Hazardous Substances; and (iii) there are no violations of any Governmental Regulations relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling or to any emissions, discharges, releases or threatened releases of Hazardous Substances at or about the Property. Borrower further represents that, except as disclosed to Lender in the Environmental Reports, to the best of Borrower's knowledge after Due Inquiry, there are no claims or actions pending or threatened in writing against Borrower or the Property by any governmental entity or agency or by any other Person relating to Hazardous Substances or pursuant to Governmental Regulations

relating thereto ("**Hazardous Substances Claims**"). Borrower covenants that the Property shall be kept free of Hazardous Substances, and is not and shall not be used to generate, manufacture, refine, transport, treat, store, handle, dispose, discharge, transfer, produce, or process Hazardous Substances except as may be permitted in compliance with applicable Governmental Regulations, and Borrower shall not cause, and shall not permit any other party to cause, as a result of any intentional or unintentional act or omission on the part of Borrower, any other Borrower Party or any tenant, subtenant or occupant, the installation of Hazardous Substances in the Property or a release of Hazardous Substances onto the Property or onto any other property from the Property or suffer the presence of Hazardous Substances on the Property, except as may be permitted in compliance with applicable Governmental Regulations. Borrower covenants that, except as disclosed to Lender in the Environmental Reports, to the best of Borrower's knowledge after Due Inquiry, there are not now and shall not be any underground storage tanks containing petroleum based products or other Hazardous Substances located on the Real Estate. Borrower shall comply, and ensure compliance by all tenants, subtenants and occupants with all Governmental Regulations with respect to Hazardous Substances at the Property, and shall keep the Property free and clear of any Liens imposed pursuant to Governmental Regulations with respect to Hazardous Substances. In the event that Borrower receives any written notice from any Governmental Authority or any tenant, subtenant or occupant with regard to such Hazardous Substances, on, from or affecting the Property, or written notice of any Hazardous Substances Claims, or if Borrower discovers any Hazardous Substances on, under or about the Property in violation of any applicable Governmental Regulations with respect to Hazardous Substances, Borrower shall promptly notify Lender in writing. Borrower shall promptly conduct and complete all investigations, studies, sampling, and testing, and all remedial, removal, and other actions necessary to clean up, remove or otherwise respond to all Hazardous Substances on, from or affecting the Property as required by all applicable Governmental Regulations with respect to Hazardous Substances. Upon reasonable prior notice to Borrower, Lender, its employees and agents, at Borrower's cost and expense, may, from time to time (whether before or after the commencement of a foreclosure proceeding), during normal business hours (except if Lender, in its reasonable judgment, determines that there is an emergency, then at any time), enter and inspect the Property for the purpose of determining the existence, location, nature and magnitude of any past or present release or threatened release of any Hazardous Substances into, onto, beneath or from the Property: <u>provided</u>, <u>however</u>, it being understood that if an Event of Default has occurred and is continuing hereunder or under any other Loan Document with regard to any material environmental matter or if Lender determines that there may exist a condition which will result in a material breach of any representation, warranty or covenant made by Borrower hereunder or under any of the other Loan Documents with respect to any material environmental matters, then, in any such event, Lender, its employees and agents may so inspect the Property at Borrower's sole cost and expense.

&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) As used herein the term "**Hazardous Substances**" means all materials and substances now or hereafter subject to any Governmental Regulations that pertain to hazardous substances or hazardous materials, including, without limitation, (i) all substances which are designated pursuant to Section 311(b)(2)(A) of the Federal Water Pollution Control Act ("**FWPCA**"), 33 U.S.C. § 1251 et seq., (ii) any element, compound, mixture, solution, or substance which is designated pursuant to Section 102 of the Comprehensive Environmental Response, Compensation and Liability Act ("**CERCLA**"), 42 U.S.C. §9601 et seq., (iii) any hazardous waste having the characteristics which are identified under or listed pursuant to Section 3001 of the Resource Conservation

and Recovery Act, 42 U.S.C. § 6901 et seq., (iv) any toxic pollutant listed under Section 307(a) of FWPCA, (v) any hazardous air pollutant which is listed under Section 112 of the Clean Air Act, 42 U.S.C. § 7401 et seq., (vi) any imminently hazardous chemical substance or mixture with respect to which action has been taken pursuant to Section 7 of the Toxic Substances Control Act, 15 U.S.C, §2601 et seq., (vii) "hazardous materials" within the meaning of the Hazardous Materials Transportation Act, 49 U.S.C. § 1802 et seq., (viii) petroleum or petroleum by-products, (ix) asbestos and any asbestos containing materials, (x) any radioactive material or substance, (xi) all toxic wastes, hazardous wastes and hazardous substances as defined by, used in, controlled by, or subject to all implementing regulations adopted and publications promulgated pursuant to the foregoing statutes, (xii) bacteria, mold or fungus, and (xiii) any other hazardous or toxic substance or pollutant identified in or regulated under any other applicable federal, state or local Governmental Regulations (including, without limitation, all applicable state, regional, county, municipal and local environmental, sanitation and health, conservation and pollution, waste disposal and control, clean air and water laws, codes, rules and regulations, to the extent applicable to the Property). Notwithstanding the foregoing, Hazardous Substances shall not include cleaning and similar supplies used in the ordinary maintenance and repair of the Property and used, stored or disposed of in compliance with all Governmental Regulations.

&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) As used herein the term "**Governmental Regulations**" means, collectively, the provisions of all permits, licenses and authorizations, and all statutes, laws (including any health or safety law), ordinances, judgments, decrees, injunctions, rules, requirements, resolutions, policy statements, orders and regulations of, any board, agency, commission, office, authority, department, bureau or instrumentality of any nature whatsoever or any governmental unit (federal, state, county, district, municipal, city, or otherwise) whether now or hereafter in existence (hereinafter, collectively referred to as a "**Governmental Authority**") having jurisdiction over Borrower or the Property or any part thereof and interpretations thereof now or hereafter applicable to, or bearing on, the construction, development, maintenance, use, alteration, operation, sale, financing or leasing of the Property or any part thereof, or any adjoining vaults, sidewalks, streets, ways, parking areas or driveways, or the formation, existence, business or good standing of Borrower, including, without limitation, those relating to land use, subdivision, zoning, occupational health and safety, earthquake hazard reduction, if any, building and fire codes, Access Laws (as hereinafter defined), pollution or protection of the environment, including, without limitation, laws relating to the ADA (as hereinafter defined), the Interstate Land Sales Full Disclosure Act 15 U.S.C. Section 1701, et seq. and all permits, licenses, authorizations and regulations relating thereto, and all laws, rules, regulations, orders, guidelines and requirements relating to emissions, discharges, releases or threatened releases of Hazardous Substances into the environment (including, ambient air, surface water, groundwater, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Substances.

&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) Borrower shall notify Lender promptly upon becoming aware of any Environmental Condition (as hereinafter defined) and shall, upon the prior written request of Lender, provide periodic written reports to Lender concerning the nature and extent of such Environmental Condition, the actions proposed to be taken by Borrower to remediate such Environmental Condition, the progress of Borrower in remediating such Environmental Condition and the completion of such remediation, together with copies of any written notices and other written communications concerning such Remediation between Borrower and any Governmental Authority. For purposes hereof, the term "**Environmental Condition**" shall mean (A) any presence of Hazardous Substances in violation of any applicable Governmental Regulations relating to Hazardous Substances on the Property not expressly disclosed in the Environmental Reports or (B) any disposal, escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Substance at, from or affecting the Property in violation of any Governmental Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Operating Agreements</u>. As of the date hereof, Borrower has delivered to Lender true, correct and complete executed copies of any and all operating agreements, reciprocal easement agreements, parking agreements, declarations, service and maintenance contracts, and development agreements (together with any and all amendments and supplements thereto and all agreements collateral therewith) (collectively, "**Operating Agreements**"). Borrower shall (i) perform or cause to be performed its obligations under all Operating Agreements, (ii) enforce with reasonable diligence, but in any event short of termination, the reasonable performance by each party to any Operating Agreement of all of such party's obligations thereunder, and (iii) give Lender prompt written notice, and a copy, of any notice of default, event of default, termination or cancellation sent or received by Borrower with respect to an Operating Agreement. Borrower shall not enter into any new Operating Agreements or permit the amendment, modification, termination or surrender of any Operating Agreement without the prior written consent of Lender, provided, however, no such consent shall be required with regard to any Operating Agreements which (x) are terminable on thirty (30) days' notice, without penalty or other cost to Borrower or any successor or assignee, and (y) provide for normal and customary building services such as cleaning contracts, elevator maintenance, fire safety and similar building services. Borrower shall provide copies of any new or amended Operating Agreements to Lender on a monthly basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Management Agreements</u>. Borrower has delivered to Lender a copy of the Property Management Agreement and any other existing property management agreements and/or brokerage agreements, if any, affecting the Property (collectively, the "**Management Agreements**"). Borrower shall not enter into any new Management Agreements or permit the amendment or modification of the Management Agreements, in each case, without the prior written consent of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Coverages</u>. Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the coverages set forth 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;(i) Causes of Loss Special Form Property insurance on the Improvements and the Personal Property, including windstorm coverage, in each case (A) in an amount equal to 100% of the "**Full Replacement Cost**," which for purposes of this Security Instrument shall mean actual replacement value as reasonably determined by Lender (exclusive of costs of excavations, foundations, underground utilities and footings) with a waiver of depreciation; (B) containing either an agreed amount endorsement or a waiver of all co-insurance provisions; (C) providing for a deductible of not greater than $25,000 (except with respect to earthquake and windstorm/named storm which may provide for deductibles up to 5% of the total insurable value of the Property); (D) if any of the Improvements or the use of the Property shall at any time constitute a legal non-conforming structure or use, Borrower shall obtain an "**Ordinance or Law Coverage**" or "**Enforcement**" endorsement, which shall include sufficient coverage for (1) costs to comply with building and zoning codes and ordinances, (2) demolition costs, and (3) increased costs of construction; and (E) with respect to the construction of any new Improvements, written on a so-called builder's risk completed value form on a nonreporting basis;

&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) business income insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by the insurance provided for in <u>Section 2.3(a)(i)</u>; (C) on an agreed value actual loss sustained basis in an amount equal to 100% of the projected gross income from the Property for a period of eighteen (18) months; (D) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured until such income either returns to the same level it was at prior to the loss, or the expiration of six (6) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy may expire prior to the end of such period; and (E) if Borrower is required to obtain an "**Ordinance or Law Coverage**" or "**Enforcement**" endorsement pursuant to <u>Section 2.3(a)(i)(D)</u>, coverage for the increased period of restoration. The amount of such business income insurance shall be determined prior to the date hereof and at least once each year thereafter based on Borrower's reasonable estimate of the gross income from the Property for the succeeding twelve (12) month period. All insurance proceeds payable to Lender pursuant to this <u>Section 2.3(a)(ii)</u> shall be held by Lender and shall be applied to the Obligations 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 Obligations on the respective dates of payment provided for in the Note, this Security Instrument and the other Loan Documents, except to the extent such amounts are actually paid out of the proceeds of such business income insurance;

&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 any portion of the Improvements is currently or at any time in the future located in a federally designated "special flood hazard area", Borrower shall obtain flood hazard insurance in an amount equal to the lesser of (x) Full Replacement Cost and (y) the outstanding principal balance of the Loan, plus twelve (12) months of business income insurance consistent with the requirements of <u>Section 2.3(a)(ii)</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;(iv) the insurance required under <u>Section 2.3(a)(i), (ii)</u> and (vii) shall cover perils of terrorism insurance for Certified Acts of Terrorism (as such terms are defined in means the Terrorism Risk Insurance Program Reauthorization Act of 2007, as amended and as it may be further amended from time to time (including any extensions thereof)) in an amount equal to the Full Replacement Cost plus twelve (12) months of business income insurance consistent with the requirements of <u>Section 2.3(a)(i), (ii)</u> and (vii);

&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) steam boiler and machinery breakdown direct damage insurance, in an amount acceptable to Lender for all boilers and machinery which form a part of the Property, if 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;(vi) commercial general liability insurance against claims for personal injury, bodily injury, death or property damage occurring upon, in or about the Property, such insurance (A) to be on the "occurrence" form (including "umbrella" coverage in place) of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate with excess "umbrella coverage" in an amount not less than $15,000,000; (B) to continue at not less than the aforesaid limit until required to be changed by Lender in writing by reason of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an "if any" basis; (3) independent contractors; and (4) contractual liability for all insured contracts, to the extent the same is available;

&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) at all times during which structural construction, material repairs or alterations are being made with respect to the Improvements, owner's contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability insurance policy;

&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) intentionally omitted;

&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) if Borrower owns or operates motor vehicles, motor vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence, including umbrella coverage, 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;(x) if applicable, workers' compensation, and employer's liability insurance subject to workers' compensation laws of the State of California;

&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) if applicable, a blanket fidelity bond or "Employee Dishonesty" coverage insuring against losses resulting from dishonest or fraudulent acts committed by personnel retained in connection with the operation of the Property; 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;(xii) such other insurance and in such amounts as Lender from time to time may reasonably request against such other insurable hazards which at the time are commonly insured against for property similar to the Property located in or around the region in which the Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Blanket Insurance; Separate Insurance</u>. Any umbrella or blanket insurance Policy shall include Lender's interests therein as provided in this Security Instrument. The umbrella or blanket Policy shall provide the same protection as would a separate standalone Policy as long as said Policy is in compliance with the provisions of <u>Section 2.3(a)</u> as determined by Lender. Borrower shall not obtain separate insurance concurrent in form or contributing in the event of loss with that required in <u>Section 2.3(a)</u> to be furnished by, or which may be reasonably required to be furnished by, Borrower. Notwithstanding the foregoing, Borrower shall be able to obtain additional insurance covering additional perils not required by Lender, as deemed necessary by Borrower. In the event Borrower obtains separate insurance or an umbrella or a blanket Policy, Borrower shall notify Lender of the same and shall cause complete copies of each Policy to be delivered as required in <u>Section 2.3(e)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Insurers</u>. All policies of insurance required under this <u>Section 2.3</u> (collectively, the "**Policies**" and each, individually, a "**Policy**") shall be issued by companies having a general policy rating of "A"-VIII or better by Best Key Rating Guide or otherwise approved by Lender and which are authorized to do business in the State of California (any of such companies being referred to individually herein as a "**Qualified Insurer**") or with such other companies satisfactory to Lender, and shall be subject to the approval of Lender as to amount, content, form and expiration date; it being agreed that the approval by Lender of any insurer shall not be construed to be a representation, certification or warranty of its solvency, and no approval by Lender as to the amount, type and/or form of any insurance shall be construed to be a representation, certification or warranty of its sufficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Insured Parties</u>. All Policies provided for or contemplated by <u>Section 2.3(a)</u> hereof, shall name Borrower as a named insured. The insurance required under <u>subsections (i)</u> through (v) inclusive, of <u>Section 2.3(a)</u> shall name Lender, its successors and/or assigns, as mortgagee/loss payee under a Standard Mortgagee Clause and a Lender's Loss Payable Endorsement or an equivalent standard form attached to, or otherwise made a part of such policy in favor of Lender, and provide that the insurers waive any and all subrogation rights against Lender. The insurance maintained under <u>subsections (vi)</u> through (x) inclusive, of <u>Section 2.3(a)</u> shall name Lender, its successors and/or assigns, as an additional insured. It is agreed that, and each property policy shall expressly state that, losses shall be payable jointly to Lender and Borrower notwithstanding (1) any act or negligence of Borrower or its agents or employees which might, absent such agreement, result in a forfeiture of all or part of such insurance payment, (2) the occupation or use of the Property or any part thereof for purposes more hazardous than permitted by the terms of such policy, (3) any foreclosure or other action or proceeding taken pursuant to this Security Instrument, or (4) any change in title to or ownership of the Property or any part thereof. No Policy shall be canceled without at least thirty (30) days' written notice to Lender, except for ten (10) days' notice for non-payment of premium. The issuers thereof shall give written notice to Lender if the issuers elect not to renew prior to its expiration. Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Delivery of Policies</u>. If not previously delivered to Lender, Borrower shall deliver to Lender no later than thirty (30) days after the date hereof certified copies of the existing Policies providing the insurance coverage required under <u>Section 2.3(a)</u> marked "premium paid" or accompanied by evidence satisfactory to Lender of payment of the premiums due thereunder (the "**Insurance Premiums**") annually in advance. In addition, upon renewal of the Policies which Borrower is now or hereafter required to maintain hereunder, Borrower shall deliver to Lender certified copies of new or renewal Policies (also marked "premium paid" or accompanied by evidence satisfactory to Lender of payment of the Insurance Premiums due thereunder annually in advance), together with certificates of insurance therefor, setting forth, among other things, the amounts of insurance maintained, the risks covered by such insurance and the insurance company or companies which carry such insurance. Under no circumstances shall Borrower be permitted to finance the payment of any portion of the Insurance Premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Failure to Deliver Policies</u>. If at any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall have the right, without notice to Borrower to take such action as Lender deems necessary to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate, and all expenses incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect, together with interest at the Default Rate (as defined in the Note) from the date incurred by Lender, shall be secured by this Security Instrument and payable by Borrower to Lender immediately upon Lender's demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Transfer of Title</u>. In the event of foreclosure of this Security Instrument or other transfer of title or assignment of the Property, by reason of a default hereunder, in extinguishment, in whole or in part, of the Obligations, all right, title and interest of Borrower in and to all policies of insurance required under this <u>Section 2.3</u> or otherwise then in force with respect to the Property and all proceeds payable thereunder and unearned premiums thereon shall immediately vest in the purchaser or other transferee of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Damage and Destruction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Borrower's Obligations</u>. In the event of any damage to or loss or destruction of the Property that shall require $50,000 or more, in the aggregate, to repair or restore, Borrower shall (i) promptly notify Lender of such event and take such steps as shall be necessary to preserve any undamaged portion of the Property, and (ii) unless otherwise instructed by Lender, promptly, regardless whether the insurance proceeds, if any, shall be sufficient for the purpose, commence and diligently pursue to completion the restoration, replacement and rebuilding of the Property, as nearly as possible to their value, condition and character immediately prior to such damage, loss or destruction in a good and workmanlike manner and in accordance with all applicable Governmental Regulations and insurance requirements and recommendations and otherwise pursuant to plans and specifications approved by Lender, which approval shall not be unreasonably withheld, and developed in connection with such restoration.

claims and (c) the insurer with respect to the Policy under which such claim is brought has not raised any act of the insured as a defense to the payment of such claim. If an Event of Default exists, Lender shall, at its election, have the exclusive right to settle or adjust any claims made under the Policies in the event of a Casualty. Further, notwithstanding the foregoing, and provided no Event of Default shall have occurred and be continuing under this Security Instrument, the Note or any of the other Loan Documents, Borrower may adjust losses aggregating not in excess of $1,000,000 per occurrence with respect to any casualty which is a Minor Casualty (as hereinafter defined), provided such adjustment is carried out in a competent and timely manner with respect to restoration of the Property; provided further, however, that, in the event no Event of Default shall have occurred, (A) insurance proceeds adjusted by Borrower as permitted pursuant to this sentence shall be used for the restoration of the Property (it being understood and agreed that (x) Borrower shall cause such restoration to be performed in a good and workmanlike manner and in accordance with all applicable Governmental Regulations and insurance company requirements and recommendations and otherwise pursuant to plans and specifications developed for such restoration, (y) Borrower shall obtain and deliver to Lender a copy of all waivers of liens for all restoration work, and (z) upon Lender's request, all construction and trade contracts and contracts for material, equipment, supplies and labor shall be collaterally assigned to Lender, and Borrower shall cause the general contractor to cause all other parties thereto to agree to perform for the benefit of Lender, at the request of Lender, provided Lender shall pay them for their respective services), and (B) Lender agrees to make the proceeds (less all reimbursable costs and expenses set forth in clause (iii) above) received in connection with a Minor Casualty available for the restoration of the Property on the terms and conditions hereinafter set forth; provided, however, if the proceeds shall be less than $1,000,000 and the costs of completing the restoration shall be less than $1,000,000 and the casualty is a Minor Casualty, the proceeds will be disbursed by Lender to Borrower upon receipt, provided no Event of Default exists and Borrower delivers to Lender a written undertaking to expeditiously commence and to satisfactorily complete with due diligence the restoration in accordance with the terms of this Security Instrument.

For the purpose of this Security Instrument, a "**Minor Casualty**" shall mean any fire, earthquake, flood, water damage, other catastrophe or insured event occurring not later than nine (9) months prior to the Scheduled Maturity Date (as defined in the Note) which (1) does not result in an Environmental Condition, (II) does not damage or render untenantable (including, without limitation, as a result of the inability to access leased premises) more than 10% of the rentable square footage of the Improvements, and (III) does not result in more than 10% of the tenants terminating or having the right to terminate their Leases. In addition, Lender shall not be required to advance any proceeds for the restoration of the Property, even if a Minor Casualty, unless Borrower shall deliver to Lender, and Lender shall approve in writing, which approval shall not be unreasonably withheld, the plans, specifications and construction budget for the repair and/or restoration of the Property and Lender shall determine that the Improvements located on the Real Estate can be restored so as to constitute a commercially viable building of the same quality and use and having the same rentable square footage as existed immediately before the fire, other catastrophe or insured event for the amounts set forth in the construction budget. Upon receipt by Lender of proceeds from a Minor Casualty and/or if Lender, in its sole discretion, shall otherwise agree to make insurance proceeds from a non-Minor Casualty available for repair and restoration of the Property, the following shall 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;(i) The actual out-of-pocket costs to Lender (including, without limitation, reasonable legal fees, appraisal fees, engineering surveys, consultants' and architects' charges and adjustors' fees) incurred in settling or adjusting any claim and in reviewing and approving all plans (collectively, "**Lender's Costs**") shall first be paid to Lender out of the proceeds of the insurance. Lender shall have the right, but not the obligation, to retain an architectural or engineering consultant at any time and from time to time, at Borrower's sole cost and expense, to examine plans, specifications, change orders and budgets with respect to such repair or restoration, the progress of same and to render reports and conduct site inspections with respect to the foregoing;

&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 contractor and major subcontractors engaged to perform the restoration work shall be subject to the prior written approval of Lender, such approval not to be unreasonably withheld, conditioned 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;(iii) The general contractor shall deliver a performance bond in respect of the work to be performed at the Property or a guarantee of such work in form, scope and substance reasonably acceptable to Lender from an entity reasonably acceptable to Lender or other substitute for such performance bond or guarantee acceptable to Lender in its sole discretion and the construction contract shall contain a time of the essence completion date reasonably satisfactory to Lender. All construction and trade contracts and contracts for material, equipment, supplies and labor shall be collaterally assigned to Lender and Borrower shall cause the general contractor to cause all other parties thereto to agree to perform for the benefit of Lender, at the request of Lender, provided Lender shall pay them for their respective services;

&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 procure and deliver to Lender, from a licensed architect selected by Borrower and reasonably approved by Lender, a certified statement setting forth the estimated cost of restoration and that the proceeds of such insurance are, in such architect's reasonable estimation (after deducting all of the Lender's Costs and such architect's fees and all other estimated costs for architects, plans, permits and approvals and other so-called "soft costs"), sufficient to perform the repair and/or restoration of the Property using similar quality materials as those presently installed therein. If such proceeds are insufficient, and if Lender nevertheless agrees to make such proceeds available for repair and/or restoration, Lender may require Borrower to deposit with Lender (with interest) the amount of any such deficiency, which funds shall be disbursed first in payment of such work. In addition, if thereafter it appears, at any time and from time to time, that the remaining proceeds shall be insufficient to pay for the remaining costs of construction, then Borrower shall deposit the amount of such deficiency (from time to time determined) with Lender for use as aforesaid;

&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) All proceeds allocated for repair and/or restoration shall be disbursed by Lender (not more frequently than monthly) based on the percentage of the work completed against a certification therefor by the aforesaid architect, invoices for the work to be paid for, waivers of lien for all prior work for which a payment was made and a title endorsement for the Property showing no additional exceptions to title of the Property other than the Permitted Encumbrances. In addition, prior to any disbursement of proceeds, Borrower must certify to Lender that (A) Borrower incurred the costs in the amount of the requested advance (as evidenced by a draw request signed by the general contractor and/or paid receipts), (B) such costs have not been the basis for any previous requisition, (C) there has been no change in Borrower's financial condition which would have a material adverse effect, as reasonably determined by Lender, on the ability of Borrower to complete the repairs and/or restorations in question in accordance with the terms

of this Security Instrument, and (D) Borrower has no defenses, counterclaims or offsets to its obligations under the Loan Documents and that there exists no Event of Default under the Loan Documents. Lender shall be entitled to retain up to ten (10%) percent of the amount of each such requisition unless the amount of the requisition already reflects ten (10%) percent retainage by Borrower. Such retainage shall be paid on a trade by trade basis upon final completion of the work by the applicable trade free of liens. If Lender shall have engaged an architectural or engineering consultant, then, as an additional precondition to any disbursement of proceeds hereunder, such consultant shall have approved, in writing, the progress of the work, conformity of the work with the approved plans and specifications and the quality and percentage of the work completed. For purposes of this provision, all work shall be deemed completed and all retainage shall be released upon delivery to Lender of the following, all in form and substance satisfactory to Lender: (x) evidence that all applicable licenses, permits and approvals (including, without limitation, certificates of occupancy) related to the work for which payment of the retainage therefor is sought have been obtained, (y) the certifications of Borrower's architect, the general contractor and Lender's consulting architect or engineering consultant, if any, that such work has been completed in accordance with the approved plans and specifications (and approved change orders) therefor, and (z) all of the certificates, statements, waivers, title endorsements and other proofs required hereunder as a condition to any disbursement;

&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) No Event of Default hereunder or under any other Loan Document shall exist; 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;(vii) All work shall be performed in a good and workmanlike manner and in accordance with all applicable Governmental Regulations and insurance company requirements and recommendations and otherwise pursuant to plans and specifications approved by the aforesaid architect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Not Trust Funds</u>. Subject to Borrower's right to adjust losses aggregating not in excess of $1,000,000 per occurrence as described in <u>Section 2.4(b)</u> above, in the event that Borrower shall have received all or any portion of such insurance proceeds or any other proceeds in respect of such damage or destruction, Borrower, upon demand from Lender, shall pay to Lender an amount equal to the total amount so received by Borrower, to be applied as Lender shall have the right pursuant to clause (iii) of <u>Section 2.4(b)</u> (subject to Borrower's rights set forth in the last proviso of the first paragraph of <u>Section 2.4(b))</u>. Notwithstanding anything herein or at law or in equity to the contrary, none of the insurance proceeds or payments in lieu thereof paid to Lender as herein provided shall be deemed trust funds and Lender shall be entitled to dispose of such proceeds as provided in this <u>Section 2.4</u>. Borrower expressly assumes all risk of loss, including a decrease in the use, enjoyment or value, of the Property from any casualty whatsoever, whether or not insurable or insured against.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Effect on the Obligations</u>. Notwithstanding any fire or other casualty referred to in this <u>Section 2.4</u> causing injury to or decrease in value of the Property, or any interest therein, Borrower shall continue to pay and perform the Obligations as provided herein. Any reduction in the Obligations resulting from an application of insurance proceeds shall be deemed to take effect only on the date of receipt by Lender of such insurance proceeds and application against the Obligations, provided that if prior to the receipt by Lender of such insurance proceeds the Property shall have been sold on foreclosure of this Security Instrument, or shall have been transferred by deed in lieu of foreclosure of this Security Instrument, Lender shall have the right to receive the aforesaid insurance proceeds to the extent of any deficiency found to be due upon such sale, with legal interest thereon together with attorneys' fees and disbursements incurred by Lender in connection with the collection thereof. The provisions of this <u>Section 2.4</u> shall survive the repayment, release, satisfaction and termination of this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Condemnation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Borrower's Obligations; Proceedings</u>. Borrower, promptly upon obtaining knowledge of any pending or threatened institution of any proceedings for the condemnation of the Property, or any part or interest therein or of any right of eminent domain, or of any other proceedings arising out of injury or damage to or decrease in the value of the Property (including a change in grade of any street), or any part thereof or interest therein (a "**Taking**"), will notify Lender of the threat or pendency thereof. Lender may participate in any such proceedings, at Borrower's sole cost and expense, and Borrower from time to time will execute and deliver to Lender all instruments requested by Lender or as may be required to permit such participation. Borrower shall, at its expense, diligently prosecute any proceedings involving a Taking, shall deliver to Lender copies of all papers served in connection therewith and shall consult and cooperate with Lender, its attorneys and agents, in the carrying on and defense of any such proceedings; provided that no settlement of any such proceeding shall be made by Borrower without Lender's prior written consent, which consent shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lender's Rights to Awards</u>. All proceeds of condemnation awards or proceeds of sale in lieu of condemnation, and all judgments, decrees and awards for injury or damage to the Property (an "**Award**" or "**Awards**") are hereby assigned and shall be paid to Lender. Borrower agrees to execute and deliver such further assignments thereof as Lender may request and authorizes Lender to collect and receive the same, to give receipts and acquittances therefor, and to appeal from any such judgment, decree or award. Lender shall in no event be liable or responsible for failure to collect, or exercise diligence in the collection of, any of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application of Awards</u>. Lender shall have the right to apply any Awards first, to reimburse Lender for all costs and expenses, including, without limitation, attorneys' fees and disbursements incurred in connection with the proceeding in question or the collection of such amounts, and, second, the remainder thereof as provided in <u>Section 2.4(b)</u> for insurance proceeds held by Lender. Notwithstanding the foregoing, and provided no Event of Default shall have occurred under this Security Instrument, the Note or any of the other Loan Documents, Borrower may adjust Awards that shall not exceed $1,000,000, in the aggregate, per occurrence, with respect to a Minor Taking (as hereinafter defined), provided such adjustment is carried out in a competent and timely manner; provided further, however, that, in the event no Event of Default shall have occurred and be continuing, Awards adjusted by Borrower as permitted pursuant to this sentence shall be used for the restoration of the Property (it being understood and agreed that (i) Borrower shall cause such restoration to be performed in a good and workmanlike manner and in accordance with all applicable Governmental Regulations and insurance company requirements and recommendations and otherwise pursuant to plans and specifications developed for such restoration, (ii) Borrower shall obtain and deliver to Lender a copy of all waivers of liens for all restoration work, and (iii) upon Lender's request, all construction and trade contracts and contracts for material, equipment, supplies and labor

shall be collaterally assigned to Lender and Borrower shall cause the general contractor to cause all other parties thereto to agree to perform for the benefit of Lender, at the request of Lender, provided Lender shall pay them for their respective services); provided, however, if Awards shall not exceed $1,000,000 and the costs of completing the restoration shall be less than $1,000,000 and the taking is a Minor Taking, Awards will be disbursed by Lender to Borrower upon receipt, provided no Event of Default exists and Borrower delivers to Lender a written undertaking to expeditiously commence and to satisfactorily complete with due diligence the restoration in accordance with the terms of this Security Instrument. For the purpose of this Security Instrument, a "**Minor Taking**" shall mean any Taking occurring not later than nine (9) months prior to the Scheduled Maturity Date which (x) does not unduly restrict or limit access to the Property, (y) affects less than 10% of the rentable square footage of the Improvements, and (z) does not result in more than 10% of the tenants at the Property terminating or having the right to terminate their Leases. In addition, Lender shall not be required to advance any Awards for the restoration of the Property unless Borrower shall deliver to Lender, and Lender shall approve in writing, which approval shall not be unreasonably withheld, the plans, specifications and construction budget for the restoration of the Property and Lender shall determine that the Improvements located on the Real Estate can be restored so as to constitute a commercially viable building of the same quality and having the same rentable square footage as existed immediately before the Taking for the amounts set forth in the construction budget. Upon receipt by Lender of an Award from a Minor Taking and/or if Lender, in its sole discretion, shall otherwise elect to make such Awards available for the restoration of the Property, the following shall 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;(i) The actual out-of-pocket costs to Lender (including, without limitation, legal fees, appraisal fees, engineering surveys, consultants' and architects' charges and adjustors' fees) reasonably incurred in connection with the recovery of the Award and in reviewing and approving all plans (collectively, "**Lender's Award Costs**") shall first be paid to Lender out of the Award. Lender shall have the right, but not the obligation, to retain an architectural or engineering consultant at any time and from time to time, at Borrower's sole cost and expense, to examine plans, specifications, change orders and budgets with respect to such restoration, the progress of same and to render reports and conduct site inspections with respect to the foregoing;

&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 contractor and major subcontractors engaged to perform the restoration work shall be subject to the prior written approval of Lender, such approval not to be unreasonably withheld, conditioned 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;(iii) The general contractor shall deliver a performance bond in respect of the work to be performed at the Property or a guarantee of such work in form, scope and substance reasonably acceptable to Lender from an entity reasonably acceptable to Lender or other substitute for such performance bond or guarantee acceptable to Lender in its sole discretion and the construction contract shall contain a time of the essence completion date reasonably satisfactory to Lender. All construction and trade contracts and contracts for material, equipment, supplies and labor shall be collaterally assigned to Lender and Borrower shall cause the general contractor to cause all other parties thereto to agree to perform for the benefit of fender, at the request of Lender, provided Lender shall pay them for their respective services;

&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 procure and deliver to Lender, from a licensed architect selected by Borrower and approved by Lender, a certified statement setting forth the estimated cost of restoration and that the Award, in such architect's reasonable estimation, is (after deducting all of the Lender's Award Costs and such architect's fees and all other estimated costs for architects, plans, permits and approvals and other so-called "soft costs") sufficient to perform the restoration of the Property using similar quality materials as those presently installed therein. If such Award is insufficient, and if Lender nevertheless agrees to make such Award available for the restoration, Lender may require Borrower to deposit with Lender (with interest) the amount of any such deficiency, which funds shall be disbursed first in payment of such work. In addition, if thereafter it appears, at any time and from time to time, that the remaining portion of the Award shall be insufficient to pay for the remaining costs of construction, then Borrower shall deposit the amount of such deficiency (from time to time determined) with Lender for use as aforesaid;

&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) All Awards allocated for restoration shall be disbursed by Lender (not more frequently than monthly) based on the percentage of the work completed against a certification therefor by the aforesaid architect, invoices for the work to be paid for, waivers of lien for all prior work for which a payment was made and a title endorsement for the Property showing no additional exceptions to title of the Property other than the Permitted Encumbrances. In addition, prior to any disbursement from the Award, Borrower must certify to Lender that (A) Borrower incurred the costs in the amount of the requested advance (as evidenced by a draw request signed by the general contractor and/or paid receipts), (B) such costs have not been the basis for any previous requisition, (C) there has been no change in Borrower's financial condition which would have a material adverse effect, as reasonably determined by Lender, on the ability of Borrower to complete the repairs and/or restorations in question in accordance with the terms of this Security Instrument, and (D) Borrower has no defenses, counterclaims or offsets to its obligations under the Loan Documents and that there exists no Event of Default under the Loan Documents. Lender shall be entitled to retain up to ten (10%) percent of the amount of each such requisition unless the amount of the requisition already reflects ten (10%) percent retainage by Borrower. Such retainage shall be paid on a trade by trade basis upon final completion of the work by the applicable trade free of liens. If Lender shall have engaged an architectural or engineering consultant, then, as an additional precondition to any disbursement from the Award hereunder, such consultant shall have approved, in writing, the progress of the work, conformity of the work with the approved plans and specifications and the quality and percentage of the work completed. For purposes of this provision, all work shall be deemed completed and all retainage shall be released upon delivery to Lender of the following, all in form and substance satisfactory to Lender: (x) evidence that all applicable licenses, permits and approvals (including, without limitation, certificates of occupancy) related to the work for which payment of the retainage therefor is sought have been obtained, (y) the certifications of Borrower's architect, the general contractor and Lender's consulting architect or engineering consultant, if any, that such work has been completed in accordance with the approved plans and specifications (and approved change orders) therefor, and (z) all of the certificates, statements, waivers, title endorsements and other proofs required hereunder as a condition to any disbursement;

&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) No Event of Default hereunder or under any Loan Document shall exist; 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;(vii) All work shall be performed in a good and workmanlike manner and in accordance with all Governmental Regulations and insurance company requirements and recommendations and otherwise pursuant to plans and specifications approved by the aforesaid architect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Not Trust Funds</u>. In the event that Borrower shall have received all or any portion of such Award, Borrower, upon demand from Lender, shall pay to Lender an amount equal to the amount so received by Borrower. Notwithstanding anything herein or at law or in equity to the contrary, none of the Awards paid to, or received by, Lender as herein provided shall be deemed trust funds and Lender shall be entitled to dispose of such proceeds as provided in this <u>Section 2.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Effect on the Obligations</u>. Notwithstanding any Taking, Borrower shall continue to pay and perform the Obligations as provided herein. Any reduction in the Obligations resulting from an application of Awards shall be deemed to take effect only on the date of receipt by Lender of such Awards and application against the Obligations, provided that if prior to the receipt by Lender of such Awards the Property shall have been sold on foreclosure of this Security Instrument, or shall have been transferred by deed in lieu of foreclosure of this Security Instrument, Lender shall have the right to receive the same to the extent of any deficiency found to be due upon such sale, with legal interest thereon together with attorneys' fees and disbursements incurred by Lender in connection with the collection thereof. The provisions of this <u>Section 2.5</u> shall survive the repayment, release, satisfaction and termination of this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Liens and Liabilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Discharge of Liens</u>. Borrower will pay, bond or otherwise discharge, from time to time when the same shall become due, all lawful claims and demands of mechanics, materialmen, laborers and others which, if unpaid, might result in, or permit the creation of, a Lien on the Property or on the revenues, rents, issues, income or profits arising therefrom and, in general, Borrower shall do, or cause to be done, at Borrower's sole cost and expense, everything necessary to fully preserve the lien and priority of this Security Instrument. For the purposes hereof, the term "**Lien**" (or "**Liens**" as the case may be) shall mean any lien, mortgage, pledge, security interest, financing statement, or encumbrance of any kind (including any conditional sale or other title retention agreement or any lease in the nature thereof, but excluding Permitted Encumbrances) and any agreement to give or refrain from giving any lien, mortgage, pledge, security interest, or other encumbrance of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Debt/Creation of Liens</u>. Borrower will not, without Lender's consent, incur any other debt, whether unsecured or secured by all or any portion of the Property. In addition, Borrower will not create, place or permit to be created or placed, or through any act or failure to act, acquiesce in the placing of, or allow to remain, any Lien against or covering the Property, which is prior to, on a parity with or subordinate to the lien of this Security Instrument. If any of the foregoing becomes attached to the Property without such consent, Borrower will immediately cause the same to be discharged and released. Notwithstanding the above to the contrary, Borrower may incur unsecured trade payables, not represented by a note, customarily paid by Borrower within sixty (60) days of incurrence and in fact not more than sixty (60) days outstanding, which are incurred in the ordinary course of Borrower's ownership and operation of the Property, in amounts reasonable and customary for similar properties and in all events not exceeding, in the aggregate, at any one time, 2% of the original Principal Amount (as defined in the Note) of the Loan ("**Permitted Trade Payables**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Consent</u>. Nothing in the Loan Documents shall be deemed or construed in any way as constituting the consent or request by Lender, express or implied, to any contractor, subcontractor, laborer, mechanic or materialman for the performance of any labor or the furnishing of any material for any improvement, construction, alteration or repair of the Property. Borrower further agrees that Lender does not stand in any fiduciary relationship to Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Taxes and Other Charges</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Taxes on the Property</u>. Borrower will pay prior to delinquency and before any penalty, interest or cost for non-payment thereof may be added thereto, (i) all taxes, assessments, vault, water and sewer rents, rates, charges and assessments, levies, inspection and license fees and other governmental and quasi-governmental charges, general and special, ordinary and extraordinary, foreseen and unforeseen, heretofore or hereafter assessed, levied or otherwise imposed against or upon, or which may become a Lien upon, the Property, or any portion thereof, including, without limitation, any taxes with respect to the Rents and Profits or arising in respect of the occupancy, use or possession of the Real Estate and Improvements, (ii) income taxes, franchise taxes, and other taxes owing by Borrower the non-payment of which would result in a Lien against the Property or otherwise diminish or impair the security of this Security Instrument and (iii) all taxes, charges, filing, registration, and recording fees, excises and levies imposed upon Lender by reason of or in connection with the execution, delivery and/or recording of the Loan Documents or the ownership of this Security Instrument or any Security Instrument supplemental hereto, any security instrument with respect to any equipment or any instrument of further assurance, and all corporate, stamp and other taxes required to be paid in connection with the Obligations (excluding, however, income taxes of Lender) (collectively, "**Impositions**"). Borrower will also pay any penalty, interest or cost for non-payment of Impositions which may become due and payable, and such penalties, interest or cost shall be included within the term Impositions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Receipts</u>. Unless Lender otherwise directs, Borrower will furnish to Lender upon Lender's request, written proof of payment of the Impositions at the time such payment is made, and thereafter, upon Borrower's receipt, furnish to Lender validated receipts showing payment in full of all Impositions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Additional Taxes</u>. In the event of the enactment of or change in (including a change in interpretation of) any applicable Governmental Regulation (i) deducting or allowing Borrower to deduct from the value of the Property for the purpose of taxation any Lien or security interest thereon, or (ii) imposing, modifying or deeming applicable any reserve or special requirement against deposits of Lender, or (iii) subjecting Lender to any tax or changing in any way any Governmental Regulation for the taxation of mortgages, deeds of trust, deeds to secure debt or security agreements or other liens or debts secured thereby, the interest of the grantee, mortgagee, Lender, trustee or secured party in the property covered thereby, or the manner of collection of such taxes, in each such case, so as to affect this Security Instrument, the Obligations or Lender, and the result is to increase the taxes imposed upon or the cost to Lender or to reduce the amount of any payments receivable hereunder, then, and in any such event, Borrower shall, on demand, pay to Lender additional amounts to compensate for such increased costs or reduced amounts, provided that if any such payment or reimbursement shall be unlawful or would constitute usury or render the Obligations wholly or partially usurious under applicable law, then Lender may, at its option, declare the Obligations immediately due and payable or require Borrower to pay or reimburse Lender for payment of the lawful and non-usurious portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Contest of Certain Claims</u>. Notwithstanding anything to the contrary contained in <u>Section 2.6</u> or <u>Section 2.7</u> hereof, Borrower may, to the extent and in the manner permitted by Governmental Regulations, at Borrower's sole cost and expense, contest Governmental Regulations, Impositions or any other claim that can lead to a Lien against the Property, and the failure of Borrower to pay the contested Imposition or other claim that may result in a Lien against the Property, pending such contest, shall not be or become a default, provided that (A) Borrower shall notify Lender of Borrower's intent to contest such payment at least thirty (30) days prior to commencing the contest; (B) Borrower shall deposit such payments or post such security as may be required by Governmental Regulation in connection with such contest; (C) Borrower shall furnish to Lender a cash deposit reasonably satisfactory to Lender, or an indemnity bond reasonably satisfactory to Lender, with a surety reasonably satisfactory to Lender, to assure payment (including, without limitation, interest, fines and penalties) of, and/or compliance with, the matters under contest and/or to prevent any sale, loss or forfeiture of all or any part of the Property; (D) Borrower diligently and in good faith pursues such contest by appropriate legal proceedings which shall operate to prevent the enforcement or collection of the same and/or the sale, loss or forfeiture of all or any part of the Property to satisfy the same; (E) Borrower, promptly upon final determination thereof, shall pay the amount of any such claim so determined, together with all costs, fines, interest and penalties payable in connection therewith, whereupon Lender shall return to Borrower any security provided pursuant to <u>clause (C)</u> above; (F) the failure to comply with the applicable Governmental Regulations or to make payment of any Imposition or other claim shall not subject Lender to any civil or criminal liability or to any Losses and Liabilities; and (G) such contest shall not otherwise interfere with the payment of any amounts required to be paid under this Security Instrument or any of the other Loan Documents or the satisfaction of any other Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Inspection</u>. Borrower will allow Lender and its authorized representatives to enter upon and inspect the Property, and/or the books, records and accounts of Borrower at the office of Borrower or other Person maintaining such books, records and accounts (and in connection therewith, to make copies or extracts thereof as Lender shall desire), upon prior notice at all times during regular business hours and will assist Lender and such representatives in effecting said inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Records; Reports and Audits; Maintenance of Records</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower shall keep and maintain or will cause to be kept and maintained on a calendar year basis, in accordance with generally accepted accounting principles consistently applied, proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower and all items of income and expense in connection with the operation of the Property or in connection with any services, equipment or furnishings provided in connection with the operation of the Property, whether such income or expense be realized by Borrower or by any other Person whatsoever excepting tenants unrelated to and unaffiliated with Borrower who have leased from Borrower portions of the Property for the purpose of occupying the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within ninety (90) days following the end of each calendar year. Borrower shall furnish Lender: (i) income statements, balance sheets and cash flow statements of Borrower and the Property reviewed (or after the occurrence of an Event of Default, audited) by a certified public accountant reasonably satisfactory to Lender and stating that the same have been prepared in accordance with generally accepted accounting principles consistently applied, (ii) a detailed rent roll for the Property which shall list all Leases and the applicable lease expiration dates, and (iii) a building stacking plan setting forth the name, the square footage and floor of each tenant (or vacant space) at the Property. Prior to the end of each calendar year, Borrower shall furnish to Lender detailed operating and capital budgets with respect to the Property for the following year (the "**Annual Budget**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within thirty (30) days following the date that Borrower is required to file any state or federal income tax returns, Borrower shall deliver to Lender copies of such returns as filed with the applicable taxing authorities together with evidence of the payment of all federal and state income taxes required to be paid by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Within thirty (30) days following the end of each calendar quarter, Borrower shall deliver to Lender a "**Leasing Status Report**", which shall include (i) a list of each vacant space located in the Property, (ii) a summary of prospective tenants for each vacant space, including a discussion of lease terms and a copy of any letters of intent, if available, (iii) the status of any leased spaces that will roll over within the twelve (12)-month period following the date of the applicable Leasing Status Report, including details with respect to whether the current tenant has given notice of whether it intends to renew' its Lease or permit the termination of the same and if applicable, the proposed renewal terms; (iv) copies of any and all new Leases or amendment, modification, termination or surrender of any Leases, together with any and all side letters, licenses, letters of credit, guarantees and any other documentation executed in connection with any such Leases entered into since the delivery of the last Leasing Status Report from Borrower to Lender, certified by Borrower as being true, correct and complete, (v) a summary of the terms, including concessions, under any Leases entered into, amended, modified or renewed since the delivery of the previous Leasing Status Report from Borrower to Lender, and (vi) to the extent known to Borrower, a list of any space available for sublet and information pertaining to terms upon which such space is being offered and any available information concerning the terms and conditions of any subleases that are consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Within thirty (30) days following the end of each calendar quarter, Borrower shall deliver to Lender (i) operating statements of the Property in form and substance satisfactory to Lender, and (ii) a detailed rent roll for the Property (which shall list all Leases and the applicable Lease expiration dates), together with a delinquency report each in substantially the same form as delivered to Lender in connection with its underwriting of the Loan or such other form as may be approved by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Within ten (10) Business Days after Lender's request, Borrower shall deliver to Lender such additional financial information concerning Borrower, any Indemnitor and/or the Property as may be reasonably requested by Lender, including, without limitation, a current budget for the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Borrower's Certificates</u>. Borrower, within ten (10) Business Days after Lender's request, shall furnish to Lender a written statement (a "**Borrower's Certificate**"), duly acknowledged, certifying to Lender and/or any proposed assignee of this Security Instrument or other prospective holder of the Loan or any portion thereof or interest therein, as to (a) the amount of the Obligations then owing under this Security Instrument, (b) the terms of payment and maturity date of the Obligations, (c) the date to which interest has been paid under the Note, (d) whether any offsets or defenses exist against the Obligations and if any are alleged to exist, a detailed description thereof, (e) that all Leases for the Property are in full force and effect and have not been modified (or if modified, setting forth all modifications), (f) the date to which the rent, additional rent and other charges under such Leases have been paid, (g) whether or not, to the best knowledge of Borrower, any of the tenants under such Leases are in default under such Leases, and, if any of the tenants are in default, setting forth the specific nature of all such defaults, and (h) as to any other matters reasonably requested by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Security Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As additional security for the payment and performance by Borrower of all duties, responsibilities and obligations under the Note and the other Loan Documents, Borrower hereby unconditionally and irrevocably assigns, conveys, pledges, mortgages, transfers, delivers, deposits, sets over and confirms unto Lender, and hereby grants to Lender a security interest in, (i) the amounts deposited with the Depository' pursuant to the terms of <u>Section 2.15</u> and <u>Article XI</u> hereof (collectively, the "**Reserves**"), (ii) the accounts into which the Reserves have been deposited, (iii) all insurance of said accounts, (iv) all accounts, contract rights and general intangibles or other rights and interests pertaining thereto, (v) all sums now or hereafter deposited and remaining therein or represented thereby, (vi) all replacements, substitutions or proceeds thereof, (vii) all instruments and documents now<sup>7</sup> or hereafter evidencing the Reserves or such accounts, (viii) all powers, options, rights, privileges and immunities pertaining to the Reserves (including the right to make withdrawals therefrom), and (ix) all proceeds of the foregoing. Borrower hereby authorizes and consents to the account or accounts into which the Reserves have been deposited being held by Depository and hereby acknowledges and agrees that Lender shall have sole and exclusive dominion and control over said account or accounts. Notice of the assignment and security interest granted to Lender herein may be delivered by Lender at any time to the Depository wherein the Reserves have been established, and Lender shall have possession of all passbooks or other evidences of such accounts. Borrower hereby assumes all risk of loss with respect to amounts on deposit in the Reserves, except to the extent such loss is caused by the gross negligence or willful misconduct, of Lender, Borrower hereby knowingly, voluntarily and intentionally stipulates, acknowledges and agrees that the advancement of the funds from the Reserves as set forth herein is at Borrower's direction and is not the exercise by Lender of any right of setoff or other remedy upon an Event of Default, Borrower hereby waives all right to withdraw funds from the Reserves. If an Event of Default shall occur hereunder or under any other of the Loan Documents, then Lender may, without notice or demand on Borrower, at its option; (A) withdraw any or all of the funds (including, without limitation, interest) then remaining in the Reserves and apply the same, after deducting all costs and expenses of safekeeping, collection and delivery (including, but not limited to, reasonable attorneys' fees, costs and expenses) to the indebtedness evidenced by the Note or any other Obligations of Borrower under the other Loan Documents in such manner or as Lender shall deem appropriate in its sole discretion, and the excess, if any, shall be paid to Borrower, (B) exercise any and all rights and remedies of a secured party under any applicable UCC, or (C) exercise any other remedies available at law or in equity. No such use or application of the funds contained in the Reserves shall be deemed to cure any default hereunder or under the other Loan Documents. Notwithstanding anything to the contrary set forth herein, Lender shall have no liability arising from or in connection with any act or omission of the Depository or the economic failure of the Depository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <u>Security Agreement</u>. This Security Instrument constitutes a security agreement between Borrower and Lender with respect to the Collateral (including, without limitation, the Reserves) in which Lender is granted a security interest hereunder, and, cumulative of all other rights and remedies of Lender hereunder, Lender shall have all of the rights and remedies of a secured party under any applicable UCC. Borrower hereby agrees to execute and deliver on demand and hereby irrevocably constitutes and appoints Lender the attorney-in-fact of Borrower to execute and deliver and, if appropriate, to file with the appropriate filing officer or office such security agreements, financing statements or other instruments as Lender may request or require in order to impose, perfect or continue the perfection of the lien or security interest created hereby. Without limiting the foregoing, to the extent permitted by applicable law, Borrower hereby authorizes Lender to file any financing statements or continuation

statements thereof on Borrower's behalf. Except with respect to Rents and Profits to the extent specifically provided herein to the contrary, Lender shall have the right of possession of all cash, securities, instruments, negotiable instruments, documents, certificates and any other evidences of cash or other property or evidences of rights to cash rather than property, which are now or hereafter a part of the Property, and, upon the occurrence of any Event of Default hereunder or under any other Loan Document, Borrower shall promptly deliver the same to Lender, endorsed to Lender, without further notice from Lender. Borrower agrees to furnish Lender with notice of any change in the name, identity, state of organization, residence, or principal place of business or mailing address of Borrower within ten (10) days of the effective date of any such change. Upon the occurrence of any Event of Default hereunder, Lender shall have the rights and remedies as prescribed in this Security Instrument, or as prescribed by general law, or as prescribed by any applicable UCC, all at Lender's election. Without implying any limitation upon the foregoing, Lender may, at its option, proceed against the Collateral in accordance with the provisions of the UCC as enacted in the State of California, or Lender may proceed as to both the real and personal property comprising the Property in accordance with this Security Instrument, or as otherwise provided at law or in equity. Any disposition of the Collateral may be conducted by an employee or agent of Lender. Any Person, including both Borrower and Lender, shall be eligible to purchase any part or all of the Collateral at any such disposition. Expenses of retaking, holding, preparing for sale, selling or the like (including, without limitation, Lender's attorneys' fees and legal expenses), together with interest thereon at the Default Rate from the date incurred by Lender until actually paid by Borrower, shall be paid by Borrower on demand and shall be secured by this Security Instrument and by all of the other Loan Documents securing all or any part of the indebtedness evidenced by the Note. Lender shall have the right to enter upon the Real Estate and the Improvements or any real property where any of the property which is the subject of the security interests granted herein is located to take possession of, assemble and collect the same or to render it unusable, or Borrower, upon demand of Lender, shall assemble such property and make it available to Lender at the Real Estate, a place which is hereby deemed to be reasonably convenient to Lender and Borrower. If notice is required by law, Lender shall give Borrower not less than ten (10) days' prior written notice of the time and place of any public sale of such property or of the time of or after which any private sale or any other intended disposition thereof is to be made, and if such notice is sent to Borrower, as the same is provided for the mailing of notices herein, it is hereby deemed that such notice shall be and is reasonable notice to Borrower. No such notice is necessary for any such property which is perishable, threatens to decline speedily in value or is of a type customarily sold on a recognized market. Furthermore, to the extent permitted by law, in conjunction with, in addition to or in substitution for the rights and remedies available to Lender pursuant to any applicable UCC:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a foreclosure sale, the Collateral may, at the option of Lender, be sold as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It shall not be necessary that Lender take possession of the aforementioned Collateral, or any part thereof, prior to the time that any sale pursuant to the provisions of this <u>Section 2.13</u> is conducted and it shall not be necessary that said Collateral, or any part thereof, be present at the location of such sale; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lender may appoint or delegate any one or more Persons as agent to perform any act or acts necessary or incident to any sale held by Lender, including the sending of notices and the conduct of the sale, but in the name and on behalf offender.

The name and address of Borrower (as Debtor under any applicable UCC) are:

Napa Square Owner NY LLC

c/o JOSS Realty Partners LLC

1345 Avenue of the Americas, 31<sup>st</sup> Floor

New York, New York 10105

Attn: Larry Botel

One Napa LLC

200 West 86th Street, #16J

New York, New York 10024

Attn: Pamela Sprayregen

JNK Napa Square LLC

9 Appeld Court

Hillsdale, New Jersey 07642

Attn: Lisa. S. Karmin

The name and address of Lender (as Secured Party under any applicable UCC) are:

Insurance Strategy Funding II, LLC

c/o JPMorgan Chase Bank

270 Park Avenue, 9<sup>th</sup> Floor

New York, New York 10017

Attention: Jay Dewaltoff

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 <u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 <u>TI/LC Reserve</u>. (a) On the date hereof, Borrower shall deposit with Lender $750,000.00. $465,000.00 of such amount (the "**Vacant Space T1 Allocation**") shall be deposited with and held by Lender to pay for or reimburse Borrower for (i) tenant improvements that may be incurred during the Term in connection with the leasing of space vacant at the Property as of the date hereof (the "**Current Vacant Space**") pursuant to new Leases or (ii) any work undertaken in connection with the speculative buildout of any portion of the Current Vacant Space (without being subject to an existing Lease), $80,000.00 of such amount (the "**Vacant Space LC Allocation**") shall be deposited with and held by Lender to pay for or reimburse Borrower for leasing commissions that may be incurred during the Term in connection with the leasing the Current Vacant Space pursuant to new Leases, and $205,000.00 of such amount (the "**General TI/LC Allocation**") shall be deposited with and held by Lender to pay for or reimburse Borrower for tenant improvements and leasing commissions that may be incurred during the Term in connection with the leasing of any portions of the Property pursuant to both new Leases and renewal Leases: provided, however, that so long as no Event of Default has occurred and is continuing, after the Current Vacant Space is leased pursuant to the Leases entered in accordance with the terms hereof, Borrower shall be permitted to reallocate any remaining portions of the Vacant Space TI Allocation and the Vacant Space LC Allocation to the General TI/LC Allocation. All such amounts shall be held by Depository in an interest bearing account until released in accordance with the provisions of <u>clause (b)</u> below (the "**TI/LC Reserve Account**"). Amounts deposited in the TI/LC Reserve Account pursuant to this <u>Section 2.15</u> are referred to herein as the "**TI/LC Reserve Fund**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Release of TI/LC Reserve Fund</u>. Lender shall cause Depository to disburse funds (each such disbursement referred to as a "**TI/LC Advance**") from the TI/LC Reserve Fund subject to satisfaction of 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;(i) no Event of Default shall have occurred and be continuing at the time of the submission of a TI/LC Requisition (as hereinafter defined) or as of the date of the disbursement of the Tl/LC Advance. Borrower's submission of a TI/LC Requisition shall be deemed Borrower's certification that no Event of Default shall have occurred and be continuing at the time of the submission of such TI/LC Requisition;

&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 applicable, the applicable Lease shall be an Approved Lease (as hereinafter defined). As used herein, the term "**Approved Lease**" shall mean any Lease entered into in accordance with <u>Section 3.2(b)</u> of this Security Instrument;

&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 applicable, the tenant under an Approved Lease shall be a bona fide third party unrelated to Borrower;

&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) if the work for which the TI/LC Advance is being requested is in connection with the speculative buildout of any portion of the Current Vacant Space (without being subject to an existing Lease), such work shall have been approved by Lender, which approval shall not be unreasonably withheld;

&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) the amount and time of payment of such leasing commissions shall be (A) reasonable and customary for properties similar to the Property and the portion of the Property for which such leasing commission is due, and (B) determined pursuant to arms length transactions between Borrower and any leasing agent to which a leasing commission is due, and exclude any leasing commissions which shall be due any member, partner or owner of any direct or indirect ownership interest in Borrower or any Affiliate of Borrower; unless such leasing commissions have been previously approved in writing by Lender;

&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) Borrower shall provide evidence reasonably satisfactory to Lender that all the work for which the TI/LC Advance is being requested has been performed in accordance with (1) all Governmental Regulations and (2) the Approved Lease; 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;(vii) Borrower has delivered to Lender invoices and conditional lien releases from all contractors, subcontractors and materialmen supplying labor or materials for the tenant improvements, and invoices or paid receipts from all leasing agents for which the TI/LC Advance is being requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disbursement of TI/LC Advance</u>. Lender shall disburse to Borrower each TI/LC Advance pursuant to, and in accordance with, the terms of this <u>Section 2.15</u> not more than once in each calendar month upon submission to Lender at least ten (10) days prior to the date on which Borrower desires a disbursement of a TI/LC Advance, of a written requisition (a "**TI/LC Requisition**"), certified by Borrower on such form or forms as may be required by Lender. Each TI/LC Requisition shall be for not less than $10,000, except that the final TI/LC Requisition may be for less than $10,000. Each Tl/LC Requisition shall be deemed a representation by Borrower that Borrower is in full compliance with the terms of this <u>Section 2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 <u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 <u>Reserves Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Prohibition Against Further Encumbrance</u>. Borrower shall not, without the prior written consent of Lender, further pledge, assign or grant any security interest in the Required Repairs Reserve Fund or the TI/LC Reserve Fund, Operating Expense Reserve Fund or permit any lien or encumbrance to attach thereto, or any levy to be made thereon or a UCC-1 financing statement, except those naming Lender as the Secured Party, to be filed with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Use of Deposits</u>. All funds so deposited under <u>Section 2.15</u> shall, until so disbursed by the Depository as set forth in the applicable provisions, constitute additional security for the Obligations (and Borrower hereby grants to Lender a first priority security interest in such funds), and may be commingled with other funds of the Depository. If an Event of Default shall have occurred hereunder, or if the Obligations shall be accelerated as herein provided, all funds so deposited may, at Lender's option, be applied to the Obligations in the order determined by Lender or to cure said Event of Default or as provided in <u>Section 2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Transfer of Security Instrument</u>. Upon an assignment or other transfer of this Security Instrument, the Depository shall have the right to pay over the balance of such deposits made pursuant to <u>Section 2.15</u> in its possession to the assignee or other successor, and the Depository shall thereupon be completely released from all liability with respect to such deposits and Borrower or the owner of the Property shall look solely to the assignee or transferee with respect thereto. This provision shall apply to every transfer of such deposits to a new assignee or transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Transfer of the Property</u>. Transfer of record title to the Property shall automatically transfer to the new owner all of Borrower's beneficial interest in any deposits under <u>Section 2.15</u>, subject to the rights of Lender as provided herein. Upon full payment and satisfaction of this Security Instrument or, at Lender's option, at any prior time, the balance of amounts deposited in the Depository's possession shall be paid over to Borrower or, after transfer of record title to the Property in connection with the Permitted Assumption, to the then record owner of the Property, and no other party shall have any right or claim thereto in any event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 <u>Access Laws</u>. Borrower covenants to cause the Property to at all times comply to the extent applicable with the requirements of the Americans with Disabilities Act of 1990 (as amended, the "**ADA**"), the Fair Housing Amendments Act of 1988, all state and local laws and ordinances related to handicapped access and all rules, regulations, and orders issued pursuant thereto including, without limitation, the ADA Accessibility Guidelines for Buildings and Facilities (collectively, "**Access Laws**"). Notwithstanding any provisions set forth herein or in any other document regarding Lender's approval of alterations of the Property, Borrower shall not alter, or permit others to alter, the Property in any manner which would increase Borrower's responsibilities for compliance with the applicable Access Laws without the prior written approval of Lender. Lender may condition any such approval upon receipt of a certificate of Access Law compliance, in form and substance satisfactory to Lender, from an architect, engineer, or other Person acceptable to Lender. Borrower agrees to give prompt notice to Lender of the receipt by Borrower of any complaints related to violations of any Access Laws and of the commencement of any proceedings or investigations which relate to compliance with applicable Access Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 <u>Future Advances; Secured Indebtedness</u>. It is understood and agreed that this Security Instrument shall secure payment of not only the indebtedness evidenced by the Note, but also any and all substitutions, replacements, renewals and extensions of the Note, any and all indebtedness and obligations arising pursuant to the terms hereof and any and all indebtedness and obligations arising pursuant to the terms of any of the other Loan Documents (other than the Environmental Indemnity), all of which indebtedness is equally secured with and has the same priority as any amounts advanced as of the date hereof. It is agreed that any future advances made by Lender to or for the benefit of Borrower from time to time under this Security Instrument or the other Loan Documents and whether or not such advances are obligatory or are made at the option of Lender, or otherwise, and all interest accruing thereon, shall be equally secured by this Security Instrument and shall have the same priority as all amounts, if any, advanced as of the date hereof and shall be subject to all of the terms and provisions of this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 <u>OFAC</u>. At all times throughout the term of the Loan, Borrower and all of its respective Affiliates shall (i) not be a Prohibited Person (defined below), and (ii) be in full compliance with all applicable orders, rules, regulations and recommendations of The Office of Foreign Assets Control ("**OFAC**") of the U.S. Department of the Treasury.

The term "**Prohibited Person**" shall mean any person or entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) listed in the Annex to, or otherwise subject to the provisions of, the 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 (the "**Executive Order**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that is owned or controlled by, or acting for or on behalf of, any Person or entity that is listed to the Annex to, or is otherwise subject to the provisions of, the Executive Order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with whom Lender is prohibited from dealing or otherwise engaging in any transaction by any terrorism or money laundering law, including the Executive Order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) who commits, threatens or conspires to commit or supports "**Terrorism**" as defined in the Executive Order; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) that is named as a "**Specially Designated National and Blocked Person**" on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official website, <u>www.ustreas.gov/offices/enforcement/ofac</u> or at any replacement website or other replacement official publication of such list; or who is an Affiliate of or affiliated with a Person or entity listed above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 <u>ERISA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the date hereof and throughout the term of the Loan, (i) Borrower does not and shall not sponsor, is not obligated to contribute to and shall not contribute to and is not and shall not be an "employee benefit plan," as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"), subject to Title I of ERISA or Section 4975 of the Internal Revenue Code of 1986, as amended (the "**Code**"), (ii) none of the assets of Borrower constitutes or shall constitute "plan assets" of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, (iii) Borrower is not and shall not be a "governmental plan" within the meaning of Section 3(32) of ERISA, and (iv) transactions by or with Borrower are not and shall not be subject to any statute, rule or regulation regulating investments of, or fiduciary obligations with respect to, "governmental plans" within the meaning of Section 3(32) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower shall not engage in any transaction which would cause any obligation, or any action taken or to be taken, hereunder or under the other Loan Documents (or the exercise by Lender of any of its rights under this Agreement or the other Loan Documents) to be a nonexempt (under a statutory or administrative class exemption) prohibited transaction under ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Borrower shall deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion, that Borrower is in compliance with the representations, warranties and covenants contained in this <u>Section 2.21</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 <u>Property Management Covenants</u>. Borrower represents, covenants and agrees with Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Property Management Agreement is in full force and effect, has not been amended or modified, and there is no material default, breach or violation existing thereunder by Borrower or, to Borrower's know-ledge, Manager, and, to Borrower's knowledge, no event has occurred that, with the passage of time or the giving of notice, or both, would constitute a material default, breach or violation by any party thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the execution and delivery of the Loan Documents, the Borrower's performance thereunder, nor the recordation of this Security Instrument, will adversely affect Borrower's rights under the Property Management Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Borrower 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;(1) perform and/or observe in all material respects all of the covenants and agreements required to be performed and observed by it under the Property Management Agreement prior to the expiration of any applicable notice and/or cure period and do all things necessary to preserve and to keep unimpaired its rights 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;(2) promptly deliver to Lender any written notice of default or other written notice under the Property Management Agreement received by Borrower;

&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) promptly deliver to Lender a copy of each final financial statement, business plan, capital expenditures plan, report and estimate received by it under the Property Management 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;(4) promptly enforce in a commercially reasonable manner the performance and observance in all material respects of all of the covenants and agreements required to be performed and/or observed by Manager, under the Property Management Agreement; 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;(5) indemnify and hold Lender harmless from and against all Losses and Liabilities in any way arising in connection with any termination payments under the Property Management Agreement and liquidated damages payable under the Property Management Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrower shall not, without Lender's prior consent (which consent shall not be unreasonably withheld, conditioned 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;(1) terminate or replace the Manager, or surrender, terminate or cancel the Property Management Agreement and, if at any time Lender consents to the appointment of a new manager, such new manager and Borrower shall, as a condition of Lender's consent, execute a conditional assignment of manager's management agreement in a form then used by Lender with such changes as may be reasonably requested by Borrower or such new manager;

&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) reduce or consent to the reduction of the term of the Property Management 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;(3) increase or consent to the increase of the amount of any fees or other amounts payable under the Property Management Agreement; 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;(4) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Property Management Agreement in any material respect.

ARTICLE III

ASSIGNMENT OF LEASES AND RENTS AND OTHER SUMS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Assignment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower has, by the Assignment of Leases and Rents executed, delivered and recorded simultaneously herewith, assigned to Lender, all of its right, title and interest in and to the Leases and the Rents and Profits described therein. The Assignment of Leases and Rents is intended to be and is an absolute present assignment from Borrower to Lender and not merely the passing of a security interest. The Rents and Profits are hereby absolutely and irrevocably assigned by Borrower to Lender. Borrower represents and warrants to Lender that Borrower has delivered to Lender true, correct and complete executed copies of all Leases, certified by Borrower as being true, correct and complete, as of the date hereof. Lender is hereby granted and assigned by Borrower the right to enter the Property for the purpose of enforcing its right in the Rents and Profits. Nevertheless, subject to the terms of this <u>Section 3.1</u>, Lender grants to Borrower a revocable license to operate and manage the Property and to collect Rents and Profits. Upon or at any time after the occurrence of and during the continuance of an Event of Default, the license granted to Borrower herein may be revoked by Lender, and Lender may enter upon the Property, and collect, retain and apply the Rents and Profits toward payment of the Obligations in accordance with the Note. The foregoing assignment shall be fully operative without any further action on the part of either party and Lender shall be entitled to the Rents and Profits whether or not Lender takes possession of the Property or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) So long as there shall exist no Event of Default hereunder and except as otherwise expressly provided herein, Borrower shall have the right and license to exercise all rights, options and privileges extended to the landlord under the Leases, including the right to collect all Rents and Profits and the right to receive the proceeds of any claims arising pursuant to the Leases, Borrower agrees to hold such Rents and Profits and the proceeds of any such claim, or a portion thereof in an amount sufficient to discharge and pay all then current Obligations which are or become due, in trust and to use the same in the payment of such Obligations (including, without limitation, all impositions and insurance premiums then payable) and all other costs, charges, accruals or expenses then incurred on, against or in connection with the operation of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the occurrence of any Event of Default, the right and license set forth in <u>subsection (b)</u> of this <u>Section 3.1</u> shall be deemed automatically revoked by Lender as of the date of such Event of Default, whereupon Lender shall have the right and authority to exercise any of the rights or remedies referred to or set forth in <u>Article VII</u>. In addition, upon the occurrence of any such Event of Default, Borrower shall promptly pay to Lender or cause to be delivered to Lender (i) all rent prepayments and security or other deposits paid to Borrower pursuant to any Lease assigned hereunder, (ii) all original security deposits in the form of letters of credit, and (iii) all deposits for the payment of operating expenses and charges for services or facilities or for escalations which were paid pursuant to any such Lease to the extent allocable to any period from and after such Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrower will, as and when requested from time to time by Lender, execute, acknowledge and deliver to Lender, in the same form as the Assignment of Leases and Rents, one or more general or specific assignments of the landlord's interest under any Lease now or hereafter affecting the whole or any part of the Property. Borrower will, on demand, pay to Lender, or reimburse Lender for the payment of any costs or expenses incurred in connection with the preparation and recording of any such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Leases and Rents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower will (i) perform or cause to be performed the landlord's obligations under all Leases now or hereafter affecting the whole or any part of the Property, (ii) enforce, short of termination, the performance by each tenant under its respective Lease of all of said tenant's obligations thereunder, and (iii) give Lender prompt written notice and a copy of any notice of default, event of default, termination or cancellation sent or received by Borrower with respect to any Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower will not enter into any new lease or consent to the amendment, modification, termination or surrender of any of the Leases or consent to any assignment of any Lease or any sublease under any Lease (herein "**Leasing Activity**"), without Lender's prior written consent (which consent shall not be unreasonably withheld or delayed), except that (x) with respect to Leases demising 2,000 rentable square feet or less of space at the Property, Borrower may engage in Leasing Activity, without the prior written consent of Lender and (y) with respect to Leases demising 10,000 rentable square feet or less (but more than 2,000 rentable square feet) of space at the Property, Borrower may engage in Leasing Activity, without the prior written consent of Lender, provided such Leasing Activity complies with all of the Leasing Guidelines (as hereinafter defined).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes hereof, the term "**Leasing Guidelines**" shall mean:

&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 Leases shall be on the Lender-Approved Lease Form;

&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 new Lease shall be for a term of less than three (3) years (including renewal options with pre-set fixed rentals, but excluding renewal options based upon fair market rental terms) and, except as provided in the existing Leases, no renewal of any Lease shall be for a term of less than two (2) years (including renewal options with pre-set fixed rentals, but excluding renewal options based upon fair market rental terms);

&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) no Lease shall provide for the payment of rent more than one (1) month in advance (expressly excluding the first month's rent, which may be paid upon Lease execution);

&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) intentionally omitted; 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;(v) the minimum base rent and concessions shall not substantially diverge from the prevailing market rate for arms' length transactions at the time such Lease is entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained herein, Borrower shall not, without Lender's prior written consent (which consent shall not 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;(i) reduce the rents payable under any of the Leases regardless of whether, after such reduction, the rents payable by the tenants under such Leases would be permitted under the Leasing Guidelines; provided, however, that Borrower may execute amendments or renewals of Leases of 10,000 rentable square feet or less of space at the Property in connection with renewals or extensions of such Leases for a term of not less than three (3) years which amendments or renewals shall reduce the rent payable under such Leases to no less than the prevailing market rate for arms' length transactions without Landlord's consent if the rent payable under such Leases prior to such amendment or renewal was in excess of the prevailing market rate for arms' length transactions;

&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) except in accordance with the terms of the Leasing Guidelines, amend, modify or otherwise alter any letter of credit or other security or any guaranty given in connection with any Lease, or waive, excuse, condone, discount, set off, compromise or in any manner release or discharge any such security or any guarantor under any guaranty given in connection with any Lease of and from any obligation, condition and/or agreement to be kept, observed and/or performed by such guarantor;

&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) consent to an assignment or subletting by a tenant of its interest in any Lease if (1) such tenant (or any guarantor) is released from liability in any respect under such Lease, or (2) Borrower shall not be reasonably satisfied with the creditworthiness of the proposed assignee or subtenant, as the case may be; unless the applicable Lease permits assignment or subletting upon satisfaction of conditions set forth in such Lease and all such conditions are satisfied;

&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) cancel, terminate or accept the surrender of any Lease demising more than 2,000 rentable square feet of space at the Property unless by reason of a tenant material default and then only in the normal course of business provided such cancellation, termination or acceptance is conducted in a commercially reasonable manner; 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;(v) modify the provisions of the Lender-Approved Lease Form (A) with respect to the tenant's obligation to deliver estoppel certificates, except that Borrower may agree to changes which do not materially diminish the scope, substance or benefits to either landlord or Lender of the information required to be included in the form of tenant estoppel certificate contained in the Lender-Approved Lease Form; (B) which limit or exculpate Lender from liability for certain damages; or (C) which concern the subordination of each Lease to this Security Instrument.

ARTICLE IV

ADDITIONAL ADVANCES; EXPENSES; INDEMNITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Additional Advances and Disbursements</u>. Borrower agrees that upon the occurrence of an Event of Default Lender shall have the right, but not the obligation, in Borrower's name or in Lender's own name, and without notice to Borrower, to advance all or any part of amounts owing or to perform any or all required actions, and, Borrower expressly grants to Lender, in addition and without prejudice to any other rights and remedies hereunder, the right to enter upon and take possession of the Property to such extent and as often as it may deem necessary or desirable to prevent or remedy any such Event of Default. No such advance or performance shall be deemed to have cured such Event of Default with respect thereto. All sums advanced and all expenses incurred by Lender in connection with such advances or actions, and all other sums advanced or expenses incurred by Lender hereunder or under applicable law (whether required or optional and whether indemnified hereunder or not) shall be part of the Obligations, shall bear interest at the Default Rate until paid in full and shall be secured by this Security Instrument. Lender, upon making any such advance, shall be subrogated to all of the rights of the Person receiving such advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Other Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower will pay or, on demand, reimburse Lender for the payment of, all appraisal fees, recording and filing fees, taxes, brokerage fees and commissions, abstract fees, title insurance premiums and fees, UCC search fees, escrow<sup>7</sup> fees, consultants' fees and disbursements, environmental engineers' fees and disbursements, attorneys' fees and disbursements, servicing fees, and all other costs and expenses of every character incurred by Lender in connection with the closing of the transactions contemplated hereunder or under the other Loan Documents (including the granting and preparation of the Loan Documents), the administration and enforcement of the Loan Documents, and/or otherwise attributable or chargeable to Borrower as owner of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower will pay or, on demand, reimburse Lender for the payment of any costs or expenses (including attorneys' fees and disbursements and collection costs) incurred or expended in connection with or incidental to (i) the occurrence of any default or Event of Default by Borrower hereunder or under any of the other Loan Documents, (ii) the exercise or enforcement by or on behalf of Lender of any of its rights or remedies or Borrower's obligations under this Security Instrument or under the other Loan Documents, including, without limitation, the enforcement, compromise or settlement of this Security Instrument or the Obligations or the defense or assertion of the rights and claims of Lender hereunder in respect thereof, by litigation or otherwise, or (iii) any legal advice as to Lender's rights, remedies and obligations under this Security Instrument and the other Loan Documents arising from or in connection with any actual or threatened default hereunder or under any of the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Indemnity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower agrees to indemnify, defend and hold harmless Lender, JPMorgan Chase Bank National Association and J.P. Morgan Investment Management Inc., and each of their respective successors, assigns, partners, officers, directors, agents, attorneys, administrators, trustees, parents, subsidiaries, advisors, affiliates, beneficiaries, shareholders, representatives, servants and employees (including, without limitation, any participants in the Loan) (each, an "**Indemnitee**") from and against any and all Losses and Liabilities (as defined herein) which may be imposed on, incurred or paid by or asserted against any Indemnitee by reason or on account of, or in connection with or arising from:

&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 default or Event of Default by Borrower or any other Borrower Party hereunder or under the other 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;(ii) Lender's exercise of any of its rights and remedies, or the performance of any of its duties, hereunder (including, without limitation, under any Lease or in connection with the enforcement of any Lease) or under the other Loan Documents to which Borrower or any other Borrower Party is a party:

&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 demolition, construction, reconstruction or alteration of the 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;(iv) an actual, alleged or threatened Environmental Condition;

&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) any negligence or willful misconduct of Borrower, any other Borrower Party, any tenant of the Property, or any of their respective agents, contractors, subcontractors, servants, employees, licensees or invitees or any affiliates of any of the foregoing;

&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) any accident, injury, death or damage to any Person or property occurring in, on or about the Property or any street, drive, sidewalk, curb or passageway adjacent thereto;

&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) any of the foregoing which may be instituted against, or alleged with respect to, any Indemnitee by reason of any alleged obligation or undertaking on Lender's part to perform or discharge any of the terms, covenants or agreements contained in any Lease, agreement or contract relating to the Property to which Lender is not a direct and express party;

&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) any and all claims for brokerage, leasing, finders or similar fees which may be made relating to the Property, the Loan or the Obligations hereunder;

&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) the failure of any Person to file timely with the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be required in connection with this Security Instrument, or to supply a copy thereof in a timely fashion to the recipient of the proceeds of the transaction in connection with which this Security Instrument is made; 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;(x) any other transaction arising out of the ownership, management, leasing or operation of the Property or Borrower's obligations under the Loan Documents except to the extent caused by the willful misconduct or gross negligence of Lender.

Any amount payable to Lender under this <u>Section 4.3</u> shall be deemed a demand obligation, shall be part of the Obligations, shall bear interest at the Default Rate and shall be secured by this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower's obligations under this <u>Section 4.3</u> (and any other obligation of Borrower to indemnify or defend Lender, Trustee or any other Indemnitee under this Security Instrument or any other Loan Document) shall not be affected by the absence or unavailability of insurance covering the same or by the failure or refusal by any insurance carrier to perform any obligation on its part under any such policy of covering insurance. If any claim, action or proceeding is made or brought against any Indemnitee which is subject to the indemnity set forth in this <u>Section 4.3</u> (or any such other indemnity, as aforesaid), Borrower shall resist or defend against the same, if necessary in the name of Lender, by attorneys for Borrower's insurance carrier (if the same is covered by insurance) or otherwise by attorneys approved by Lender. A waiver of subrogation shall be obtained by Borrower from its insurance carrier and consequently, Borrower waives any and all right to claim or recover against Lender or Lender's officers, employees, agents and representatives, for loss of or damage to Borrower, any other Borrower Party, the Property, Borrower's property or the property of others under Borrower's or any other Borrower Parties' control from any cause insured against or required to be insured against by the provisions of this Security Instrument. Notwithstanding the foregoing, any Indemnitee, in its discretion, may engage its own attorneys to resist or defend, or assist therein, and Borrower shall pay, or, on demand, shall reimburse such Indemnitee for the payment of, the fees and disbursements of said attorneys, but Borrower shall not be obligated to reimburse an Indemnitee's separate legal counsel expenses unless such separate counsel was retained by Lender based on written advice from Lender's counsel that joint representation of Borrower and Indemnitee would be inadvisable due to actual or potential differing or conflicting interests. No Indemnitee shall settle any such claim, action or proceeding without Borrower's consent, which consent shall not be unreasonably withheld; provided, however, upon the occurrence and during the continuance of an Event of Default, any Indemnitee shall have the right to settle any such claim action or proceeding without Borrower's consent. **THE INDEMNITIES HEREIN PROVIDED BY BORROWER SHALL APPLY REGARDLESS OF WHETHER THE MATTER FROM WHICH THE INDEMNIFICATION OBLIGATION ARISES WAS CAUSED IN WHOLE OR IN PART BY SIMPLE NEGLIGENCE (BUT NOT WILLFUL MISCONDUCT OR GROSS NEGLIGENCE) OF ANY APPLICABLE INDEMNITEE.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As used herein the term "**Losses and Liabilities**" shall mean, collectively, all claims, losses, liabilities (including, without limitation, strict liabilities and/or any environmental liability), suits, causes of actions, actions, proceedings, obligations, fines, debts, damages, injuries, diminutions in value (provided that losses arising as a result of a diminution in value shall only be determined following or in connection with a foreclosure sale, acceptance of a deed in lieu of foreclosure or other similar exercise of remedies by Lender), judgments, awards, demands, administrative orders, consent agreements and orders, amounts paid in settlement, punitive damages, foreseeable and unforeseeable consequential damages, penalties, interest, demands, claims, charges, fees, costs and expenses (including, without limitation, environmental inspection and clean-up costs, attorneys' and paralegals' fees and disbursements and other costs of defense) of whatever kind or nature, except to the extent caused by the gross negligence or willful misconduct of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Interest After Default</u>. Subject to the terms of the Note, if any payment due hereunder or under the other Loan Documents is not paid in full when due, whether on any stated due date, any accelerated due date or on demand or at any other time specified under any of the provisions hereof or thereof, then the same shall bear interest hereunder at the Default Rate from the due date until fully paid, whether or not an action against Borrower shall have been commenced, and if commenced whether or not a judgment against Borrower shall have been obtained, and such interest shall be added to and become a part of the Obligations and shall be secured hereby.

ARTICLE V

SALE, TRANSFER OR MORTGAGING OF THE PROPERTY; CHANGE OF CONTROL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Continuous Ownership; Change of Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower acknowledges that Lender has examined and relied on the experience of Borrower and its general partners, managing members, principals and (if Borrower is a trust) beneficial owners in owning and operating properties such as the Property in agreeing to make the Loan, and will continue to rely on Borrower's ownership of the Property as a means of maintaining the value of the Property as security' for payment and performance of the Obligations. Borrower acknowledges that Lender has a valid interest in maintaining the value of the Property so as to ensure that, should Borrower default in the payment or the performance of the Obligations, Lender can recover the Debt by a sale of the Property. Borrower shall not, whether voluntarily or involuntarily, (i) sell, grant, convey, assign or otherwise transfer, by operation of law or otherwise (collectively, "**Transfer**") the Property, or any legal, beneficial or equitable interest therein or in Borrower, or in the management thereof (provided that transfers of beneficial interests in Manager shall not be prohibited), (ii) permit the Property, or any legal, beneficial or equitable interest therein or in Borrower, or in the management thereof to be the subject of a Transfer (provided that transfers of beneficial interests in Manager shall not be prohibited), (iii) enter into an agreement to Transfer while the Loan is outstanding unless such agreement provides for the assumption or payment in full of the Obligations in accordance with the terms of the Loan Documents, or (iv) grant an option, or take any action, which, pursuant to the terms of any agreement to which Borrower is a party, may result in a Transfer of the Property, or any legal, beneficial or equitable interest therein, or the management thereof while the Loan is outstanding, without Lender's prior written consent (which consent shall be granted or withheld in Lender's sole and absolute discretion) except to the extent any such Transfer would constitute a Permitted Transfer hereunder. For purposes of this Security Instrument, but without limiting the foregoing, except as expressly set forth in this sentence, (i) any change in control of Borrower, shall be deemed a Transfer of the Property, (ii) notwithstanding the second sentence of this Paragraph to the contrary, a Transfer of more than 49% in interest (directly or indirectly) of Borrower (whether stock, partnership interest or otherwise) by any party or parties in interest whether in a single transaction or a series of related or unrelated transactions shall be deemed a Transfer of the Property, (iii) a take-over agreement shall be deemed a Transfer of the Property, (iv) a Transfer of all or substantially all

of the assets of any of Borrower, or any Indemnitor under the Environmental Indemnity, shall be deemed a Transfer of the Property, and (v) any Person or legal representative of Borrower to whom Borrower's interest in the Property passes by operation of law. or otherwise, shall be bound by the provisions of this <u>clause (a)</u>. To the extent that after giving effect to any Transfer, more than 10% in the aggregate of direct or indirect interests in Borrower are owned by any Person and its Affiliates that owned less than 10% direct or indirect interest in Borrower as of the date hereof, Borrower shall no less than thirty (30) days prior to the effective date of any such Transfer (A) notify Lender of any such Transfer and (B) deliver to Lender such information (which information may include such transferee's name, address, state of formation, date of birth and tax identification number) as Lender may reasonably require in order to enable Lender's customary "know your customer", credit history check, litigation, lien, bankruptcy, judgment and other similar searches with respect to the applicable transferee and its applicable affiliates. Notwithstanding anything to the contrary contained herein, at all times until the Loan is indefeasibly repaid in full, (A) Lawrence R. Hotel must, own, directly or indirectly, at least a 5% interest in Napa Square Owner N Y LLC and Control, directly or indirectly, Napa Square Owner NY LLC and day-to-day operations of tire Property, (B) Lisa S. Karmin must own, directly or indirectly, at least a 51% interest in JNK Napa Square LLC and Control, directly or indirectly, JNK Napa Square LLC and (C) Pamela Sprayregen must own, directly or indirectly, at least a 51% interest in One Napa LLC and Control, directly or indirectly, One Napa LLC (the conditions described in <u>clauses (A)</u>, <u>(B)</u> and <u>(C)</u> above, collectively, the "**Minimum Ownership/Control Test**").

For purposes hereof, a "**Permitted Transfer**" shall mean, and "Transfer" shall not include (A) transfer by devise or descent or by operation of law upon the death of a partner, member or stockholder of a Borrower or any general partner thereof, (B) a sale, transfer or hypothecation of a partnership, shareholder or membership interest in a Borrower, whichever the case may be, by the current partners), shareholder(s), or member(s), as applicable, to an immediate family member (i.e., parents, spouses, siblings, children or grandchildren) of such partner, shareholder or member (or a trust for the benefit of any such Persons) and (C) a Transfer of interests, directly or indirectly, in a Borrower or in any direct or indirect member of such Borrower (whether stock, partnership interest, limited liability company interest, or otherwise), whether in a single transaction or a series of related or unrelated transactions; provided that such Transfers in the aggregate do not exceed 49% of all direct or indirect interests in such Borrower and do not result in any violation of the Minimum Ownership/Control Test.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) Borrower shall Transfer the Property, or there shall be a Transfer of any legal, beneficial or equitable interest therein in violation of the terms hereof, (ii) Borrower shall Transfer responsibility for the management of the Property in violation of the terms hereof, or (iii) any other Transfer shall otherwise occur in violation of the terms of this Security Instrument or any other Loan Document, the same shall constitute an "Event of Default" and Lender may elect to declare the Obligations, together with any other sums secured hereby, immediately due and payable. Lender may withhold its consent to any proposed Transfer for no reason or any reason, including the failure of the prospective transferee of the Property to reach an agreement in writing with Lender increasing the interest payable on the Obligations to such rate as Lender shall request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The provisions of this <u>Section 5.1</u> shall apply to each and every such Transfer of all or any portion of the Property or any legal or equitable interest therein or the management thereof, regardless of whether or not Lender has consented to, or waived by its action or inaction its rights hereunder with respect to any previous Transfer of all or any portion of the Property or any legal or equitable interest therein, or the management thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>No Subordinate Financing</u>. Borrower covenants and agrees that it will not further encumber, mortgage, pledge, or grant a security interest in the Property or any part thereof or any direct or indirect interest therein. Borrower further covenants and agrees that it will not obtain any Property-Assessed Clean Energy financing (a "**PACE Loan**") with respect to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Assumption of the Loan</u>. Subject to the following terms and conditions and Lender's consent in its sole discretion, Lender shall permit a one (1) time Transfer of the Property or all of the legal or beneficial ownership interests therein or in Borrower and an assumption of the entire Loan (a "**Permitted Assumption**"), provided that Lender receives sixty (60) days prior written notice of such Permitted Assumption and no Event of Default has occurred and is continuing, and further provided that the following additional requirements are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower shall pay Lender a transfer fee equal to one percent (1.0%) of the outstanding principal balance of the Loan at the time of such Permitted Assumption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower shall pay any and all reasonable out-of-pocket costs incurred in connection with such Permitted Assumption (including, without limitation. Lender's reasonable counsel fees and disbursements and all recording fees, costs of the title company pursuant to <u>clause (i)</u> below and mortgage and intangible taxes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The proposed transferee (the "**Transferee**") must have demonstrated expertise in owning and operating properties similar in location, size, class and operation to the Property, which expertise shall be reasonably determined by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Transferee and/or Transferee's principals shall, as of the date of such transfer, have an aggregate net worth and liquidity acceptable to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Transferee, Transferee's principals and all other entities which may be owned or Controlled directly or indirectly by Transferee's principals ("**Related Entities**") must not have been the subject of any bankruptcy or other insolvency proceeding within seven (7) years prior to the date of the proposed Permitted Assumption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) With respect to a Transfer of the Property, Transferee shall assume all of the obligations of Borrower under the Loan Documents in a manner satisfactory to Lender in all respects, including, without limitation, by entering into an assumption agreement in form and substance satisfactory to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There shall be no material litigation relating to the creditworthiness or reputation of Transferee or any Related Entities or regulatory action pending or threatened against Transferee or any Related Entities which is not reasonably acceptable to Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) With respect to any Transfer of the Property, Transferee must be able to satisfy all representations and covenants in <u>Section 2.1(f)</u> as Transferee and Transferee and the Related Entities must be able to satisfy all the representations and covenants set forth in Sections 2.20 and <u>2.21</u> of this Security Instrument, no Default or Event of Default shall otherwise occur as a result of such Transfer, and Transferee shall deliver (A) all organizational documentation reasonably requested by Lender, which shall be reasonably satisfactory to Lender, and (B) all certificates, agreements and legal opinions reasonably required by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prior to any release of Indemnitor, one (1) or more substitute guarantors reasonably acceptable to Lender shall have assumed all of the liabilities and obligations of Indemnitor under the Guaranty and Environmental Indemnity executed by Indemnitor or execute a replacement guaranty and environmental indemnity satisfactory to Lender, including without limitation the ability to satisfy the net worth and liquidity requirements thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) If requested by Lender, Borrower or Transferee shall deliver, at no cost or expense to Lender, an endorsement to Lender's title insurance policy, as modified by the assumption agreement, as a valid first lien on the Property and naming the Transferee as owner of the Property, which endorsement shall insure that, as of the date of the recording of the assumption agreement, the Property shall not be subject to any additional exceptions or liens other than those contained in Lender's title insurance policy issued on the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Property shall be managed by a manager acceptable to Lender pursuant to a management agreement acceptable to Lender.

Immediately upon a Transfer to such Transferee and the satisfaction of all of the above requirements, the named Borrower and Indemnitor herein shall be released from all liability under this Security Instrument, the Note and the other Loan Documents accruing from and after such Transfer. The foregoing release shall be effective upon the date of such Transfer, and Lender agrees to provide written evidence thereof reasonably requested by Borrower.

ARTICLE VI

DEFAULTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Events of Default</u>. The term "**Event of Default**," as used in this Security Instrument, shall mean the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Borrower fails to (i) make any Monthly Payment within five (5) days after a Monthly Payment Date (as such terms are defined in the Note), or (ii) pay any other amounts required to be paid or expended by Borrower under this Security Instrument, the Note, the Environmental Indemnity or under any other Loan Document, whether of principal, interest, prepayment premium, Impositions or otherwise, and whether on any stated due date, upon demand, at maturity or upon acceleration; it being understood and agreed that Borrower shall not be entitled to receive from Lender or any other party any notice of such failure to timely make any such payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any representation or warranty made herein or in the other Loan Documents (including any certificates, schedules, and financial statements delivered in connection with any of the foregoing), or otherwise made by or on behalf of Borrower or any other Borrower Party in connection with the transactions contemplated hereunder, shall be false or misleading in any material respect when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Transfer shall be made in violation of the terms of this Security Instrument or the other Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if (i) Borrower or any other Borrower Party shall commence any case, proceeding or other action (A) under any existing or future Governmental Regulations of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or (ii) Borrower or any other Borrower Party shall make a general assignment for the benefit of its creditors; or (iii) there shall be commenced against Borrower or any other Borrower Party, any case, a proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an order for relief or any such adjudication or appointment, or (B) remains undismissed, undischarged or unbonded for a period of sixty (60) days; or (iv) there shall be commenced against Borrower or any other Borrower Party, any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of any order for any such relief which shall not have been vacated, discharged, stayed or bonded pending appeal within sixty (60) days from the entry thereof; or (v) Borrower or any other Borrower Party or any of their affiliates shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in <u>clause (i), (ii), (iii)</u> or <u>(iv)</u> above; or (v) Borrower or any other Borrower Party shall generally not, or shall be unable to, or shall admit in writing (other than to Lender) its inability to, pay its debts as they become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Borrower abandons the Property or ceases to do business or subjects the Property to actual physical waste;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) there shall occur any event of default or non-performance (beyond any applicable notice and/or cure periods, if any) under the terms of any other mortgage, deed of trust, deed to secure debt or other security agreement covering any part of the Property, whether it be superior or junior in lien to this Security Instrument, provided that nothing contained herein shall be deemed to represent Lender's consent, to any such mortgage, deed of trust, deed to secure debt or other security agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Borrower shall fail at any time to obtain, provide, maintain, keep in force or deliver to Lender the insurance policies required by <u>Section 2.3</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Borrower shall consent to any claim that this Security Instrument or any other document or instrument securing the Obligations is junior to any other Lien or any such claim shall be upheld by any court of competent jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the existence of any Environmental Condition which is not fully remediated in accordance with the requirements of all applicable Governmental Regulations within thirty (30) days following the date that Borrower first acquires knowledge of such Environmental Condition; provided, however, if such remediation cannot be accomplished within such thirty (30) day period, the time for Borrower's completion of such remediation shall be extended for such additional period as may be reasonably required by Borrower for such completion, provided further that Borrower (I) shall commence such remediation within thirty (30) days following the date Borrower first acquires knowledge of such Environmental Condition and thereafter exercises its commercially reasonable efforts to prosecute the completion of such remediation and (ii) Borrower is diligently pursuing such remediation in accordance with the timeline established by the applicable Governmental Regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) subject to the Borrower's rights of contest set forth in <u>Section 2.7(d)</u> hereof, if the Property becomes subject to any mechanic's, materialmen's or other Lien (including without limitation, any federal tax lien but excluding any Lien for local real estate taxes and assessments not then due and payable) and such Lien shall remain undischarged of record (by payment, bonding or otherwise) for a period of thirty (30) days after notice thereof to Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) if Borrower shall fail to reimburse Lender within ten (10) days after demand, with interest calculated at the Default Rate, for all insurance premiums or Impositions, together with interest and penalties imposed thereon, paid by Lender pursuant to this Security Instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) if any default occurs in the performance of any guarantor's or indemnitor's obligations under any guaranty or indemnity executed in connection herewith and such default continues after the expiration of applicable grace periods set forth in such guaranty or indemnity, or if any representation or warranty of any guarantor or indemnitor thereunder shall be false or misleading in any material respect when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) there shall have occurred any default, event of default or non-performance by Borrower under the terms of any of the Leases which default, event of default or nonperformance shall not have been cured within any applicable grace period therefor under the applicable Lease and may result in the termination of the applicable Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any other event occurs and continues beyond any express grace period applicable thereto which, under the terms of the Loan Documents, would permit Lender to accelerate the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) if Borrower shall fail to observe any covenants herein with respect to additional financing, including obtaining any PACE loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) if a default by Borrower beyond applicable notice or cure period (if any) shall occur under the Management Agreement (or any successor management agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) if the Management Agreement is modified or amended without the prior written consent of Lender or Borrower waives or releases any of its rights or remedies under the Management Agreement in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) if the Management Agreement terminates or expires unless, in each such case, Borrower, contemporaneously with such termination or expiration, enters into a replacement management agreement reasonably acceptable to Lender with a manager reasonably acceptable to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) if (i) any material default occurs under the Co-Tenancy Agreement beyond all applicable notice and cure periods expressly set forth thereunder, (ii) the Co-Tenancy Agreement is terminated, modified or amended without Lender's prior written consent or (iii) any action or proceeding is commenced for the partition of all or any portion of the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) if Borrower does not complete the Required Repairs by the required deadline for each Required Repair as set forth in <u>Section 2.2(a)(1)</u> hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) if (i) for more than ten (10) days, in the aggregate, after notice from Lender, Borrower shall continue to be in default under any term, covenant or condition of the Note, this Security Instrument or any of the other Loan Documents not otherwise described in this <u>Section 6.1</u> in the case of any default which can be cured by the payment of a sum of money (other than payments of money covered by <u>Section 6.1(a)</u> above), or (ii) for more than thirty (30) days, in the aggregate, after notice from Lender in the case of any other default, provided that if such default cannot reasonably be cured within such thirty (30) day period and Borrower shall have commenced to cure such default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, said thirty (30) day period shall be extended for so long as it shall require Borrower in the exercise of due diligence to cure such default, it being agreed that no such extension shall be for a period in excess of ninety (90) days, in the aggregate.

ARTICLE VII

REMEDIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Remedies Available</u>. Upon the occurrence of any Event of Default, Borrower agrees that Trustee or Lender may take such action, without notice or demand, as Lender deems advisable to protect and enforce Trustee's or Lender's rights against Borrower and in and to the Property, including, but not limited to, the following actions, each of which may be pursued concurrently or otherwise, at such time and in such order as Lender may determine, in its sole discretion, without impairing or otherwise affecting the other rights and remedies of Trustee or Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Acceleration</u>. Accelerate the maturity date of the Note and declare any or all of the indebtedness secured hereby to be immediately due and payable without any presentment, demand, protest, notice of nonpayment or nonperformance, notice of protest, notice of intent to accelerate, notice of acceleration or any other notice or action of any kind whatever (each of which is hereby expressly waived by Borrower), whereupon the same shall become immediately due and payable. Upon any such acceleration of the Note, payment of such accelerated amount shall constitute a prepayment of the principal balance of the Note and any applicable prepayment fee and/or any amount payable upon such prepayment provided for in the Note shall then be immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Entry on the Property</u>. Either in Person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court and without regard to the adequacy of its security, enter upon and take possession of the Property, or any part thereof, without force or with such force as is permitted by law, without notice or process or with such notice or process as is required by law unless such notice and process is waivable, in which case Borrower hereby waives such notice and process, and without liability for trespass, damages or otherwise, and do any and all acts, perform any and all work and take possession of any and all books, records and accounts which may be desirable or necessary in Lender's judgment to complete any unfinished construction on the Real Estate, to preserve the value, marketability or rentability of the Property, to increase the income therefrom, to manage and operate the Property or to protect the security hereof and all sums expended by Lender therefor, together with interest thereon at the Default Rate, shall be immediately due and payable to Lender by Borrower on demand and shall be secured hereby and by all of the other Loan Documents securing all or any part of the indebtedness evidenced by the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Collect Rents and Profits</u>. With or without taking possession of the Property, sue for or otherwise collect the Rents and Profits, including those past due and unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Appointment of Receiver</u>. Upon, or at any time prior or after, instituting any judicial foreclosure or instituting any other foreclosure of the liens and security interests provided for herein or any other legal proceedings hereunder, make application to a court of competent jurisdiction for appointment of a receiver for all or any part of the Property, as a matter of strict right and without notice to Borrower and without regard to the adequacy of the Property for the repayment of the Obligations or the solvency of Borrower or any Person or Persons liable for the payment of the indebtedness secured hereby, and Borrower does hereby irrevocably consent to such appointment, waives any and all notices of and defenses to such appointment and agrees not to oppose any application therefor by Lender or Trustee, but nothing herein is to be construed to deprive Lender or Trustee of any other right, remedy or privilege Lender or Trustee may now have under the law to have a receiver appointed; provided, however, that, the appointment of such receiver, trustee or other appointee by virtue of any court order, statute or regulation shall not impair or in any manner prejudice the rights of Lender to receive payment of the Rents and Profits pursuant to other terms and provisions hereof. Any such receiver shall have all of the usual powers and duties of receivers in similar cases, including, without limitation, the full power to hold, develop, rent, lease, manage, maintain, operate and otherwise use or permit the use of the Property upon such terms and conditions as said receiver may deem to be prudent and reasonable under the circumstances as more fully set forth in <u>Section 7.3</u> hereinbelow. Such receivership shall, at the option of Lender, continue until full payment of all of the indebtedness secured hereby or until title to the Property shall have passed by foreclosure sale under this Security Instrument or deed in lieu of foreclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Foreclosure</u>. Institute a proceeding or proceedings, judicial or otherwise (including, without limitation, by power of sale to the extent available to Lender or Trustee under applicable law, it being understood and agreed that Borrower hereby expressly grants Lender and Trustee such power of sale), for the complete foreclosure of this Security Instrument under any applicable law. Institute a proceeding or proceedings, judicial or otherwise (including, without limitation, by power of sale to the extent available to Lender or Trustee under applicable law, it being understood and agreed that Borrower hereby expressly grants Lender and Trustee such power of sale), for the partial foreclosure of this Security Instrument under any applicable law for the portion of the Obligations then due and payable, subject to the lien of this Security Instrument continuing unimpaired and without loss of priority so as to secure the balance of the Obligations not then due and payable.

&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) In the event a foreclosure hereunder should be commenced, Lender may at any time before the sale abandon the sale, and may then institute suit for the collection of the Loan, or for the foreclosure of the liens and security interests hereof. If Lender should institute a suit for the collection of the Loan, or for a foreclosure of the liens and security interests hereof, it may at any time before the entry of a final judgment in said suit dismiss the same, and dispose of the Property, or any part thereof, in accordance with the provisions of this Security instrument.

&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) It is agreed that in any deed or deeds given, any and all statements of fact or other recitals therein made as to the identity of Lender or as to the occurrence or existence of any Event of Default or other default, or as to the acceleration of the maturity of the Loan, or as to the request to sell, notice of sale, time, place, terms, and manner of sale, and receipt, distribution and application of the money realized therefrom, and, without being limited by the foregoing, as to any other act or thing having been duly done by Lender shall be accepted by all courts of law and equity as prima facie evidence that the said statements or recitals are correct and are without further questions to be so accepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Other Remedies</u>. If an Event of Default shall have occurred, this Security Instrument may, to the maximum extent permitted by law, be enforced, and Lender and/or Trustee may exercise any right, power or remedy permitted to it hereunder, under the Loan Documents or by law<sup>;</sup> or in equity, and, without limiting the generality of the foregoing, Lender and/or Trustee may, personally or by its agents, to the maximum extent permitted by law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) enter into and take possession of the Property or any part thereof, exclude Borrower and all parties claiming under Borrower whose claims are junior to this Security Instrument, wholly or partly therefrom, and use, operate, manage and control the Property or any part thereof either in the name of Borrower or otherwise as Lender shall deem best, and upon such entry, from time to time at the expense of Borrower and the Property, make all such repairs, replacements, alterations, additions or improvements to the Property or any part thereof as Lender may deem proper and, whether or not Lender has so entered and taken possession of the Property or any part thereof, collect and receive all Rents and Profits and apply the same to the payment of all expenses that Lender may be authorized to make under this Security Instrument, the remainder to be applied to the payment of obligations under the Loan Documents until the same shall have been repaid in full; if Lender demands or attempts to take possession of the Property or any part thereof in the exercise of any rights hereunder. Borrower shall promptly turn over and deliver complete possession thereof to Lender;

&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) cause any or all of the Property to be sold under the power of sale in any manner permitted by applicable law. For any sale under the power of sale granted by this Security Instrument, Lender and/or Trustee shall record and give all notices required by law and then, upon the expiration of such time as is required by law, may sell the Property, and all estate, right, title, interest, claim and demand of Borrower therein, and all rights of redemption thereof, at one or more sales, as an entity or in parcels, with such elements of real and/or personal property (and, to the extent permitted by applicable law, may elect to deem all of the Property to be real property for purposes thereof), and at such time or place and upon such terms as Lender may deem expedient, or as may be required by applicable law. Upon any sale, Lender and/or Trustee shall execute and deliver to the purchaser or purchasers a deed or deeds conveying the property sold, but without any covenant or warranty, express or implied, and the recitals in the deed or deeds of any facts affecting the regularity or validity of the sale will be conclusive against all Persons. In the event of a sale, by foreclosure or otherwise, of less than all of the Property, this Security Instrument shall continue as a lien and security interest on the remaining portion of the Security Instrument 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;(3) proceed to protect and enforce their rights under this Security Instrument, by suit for specific performance of any covenant contained herein or in the Loan Documents or in aid of the execution of any power granted herein or in the Loan Documents, or for the enforcement of any other right as Lender and/or Trustee shall elect, provided, that in the event of a sale, by foreclosure or otherwise, of less than all of the Property, this Security Instrument shall continue as a lien on, and security interest in, the remaining portion of the Property; 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;(4) exercise any or all of the remedies available to a secured party under the applicable UCC, including, without limitation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) either personally or by means of a court-appointed receiver, take possession of all or any of the Property and exclude therefrom Borrower and all parties claiming under Borrower, and thereafter hold, store, use, operate, manage, maintain and control, make repairs, replacements, alterations, additions and improvements to and exercise all rights and powers of Borrower in respect of the Property or any part thereof; if Lender demands or attempts to take possession of the Property in the exercise of any rights hereunder. Borrower shall promptly turn over and deliver complete possession thereof to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) without further notice to or demand upon Borrower, make such payments and do such acts as Lender may deem necessary to protect its security interest in the Property, including, without limitation, paying, purchasing, contesting or compromising any encumbrance that is prior to or superior to the security interest granted hereunder, and in exercising any such powers or authority paying all expenses incurred in connection therewith which expenses shall thereafter become part of the obligations secured by this Security Instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) require Borrower to assemble the Property or any portion thereof, at a place designated by Lender and reasonably convenient to both parties, and promptly to deliver the Property to Lender, or an agent or representative designated by it; Lender, and each of its agents and representatives, shall have the right to enter upon the premises and property of Borrower to exercise the rights of Lender hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) sell, lease or otherwise dispose of the Property, with or without having the Property at the place of sale, and upon such terms and in such manner as Lender may determine (and Lender may be a purchaser at any such sale); provided, however, that Lender, may dispose of the Property in accordance with Lender's rights and remedies in respect of the Property pursuant to the provisions of this Security Instrument in lieu of proceeding under the applicable UCC; 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;(v) Lender shall give Borrower at least ten (10) days' prior notice of the time and place of any sale of the Property or other intended disposition thereof, which notice Borrower agrees is commercially reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Trustee or Lender may resort for the payment of the Loan to any other security for the debt held by Trustee or Lender in such order and manner as Trustee or Lender, in its discretion, may elect. Lender may take action to recover the Loan, or any portion thereof, or to enforce any covenant hereof without prejudice to the right of Trustee or Lender thereafter to foreclose this Security Instrument. The rights of Lender and Trustee under this Security Instrument shall be separate, distinct and cumulative and none shall be given effect to the exclusion of the others. No act of Trustee or Lender shall be construed as an election to proceed under any one provision herein to the exclusion of any other provision. Lender and Trustee shall not be limited exclusively to the rights and remedies herein stated but shall be entitled to every right and remedy now or hereafter afforded at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Lost Documents</u>. All rights of action under the Note, this Security Instrument or any of the other Loan Documents may be enforced by Lender without the possession of the original Loan Documents and without the production thereof at any trial or other proceeding relative thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Application of Proceeds</u>. (a) To the fullest extent permitted by law, the proceeds of any foreclosure sale under this Security Instrument shall be applied to the extent funds are so available to the following items in such order as Lender in its discretion may determine:

&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) To payment of the costs, expenses and fees of taking possession of the Property, and of holding, operating, maintaining, using, leasing, repairing, improving, marketing and selling the same and of otherwise enforcing Lender's right and remedies hereunder and under the other Loan Documents, including, but not limited to, receivers' fees, court costs, attorneys', accountants', appraisers', managers' and other professional fees, title charges and transfer taxes.

&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) To payment of all sums expended by Lender under the terms of any of the Loan Documents and not yet repaid, together with interest on such sums at the Default 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;(iii) To payment of the secured indebtedness and all other obligations secured by this Security Instrument, including, without limitation, interest at the Default Rate and, to the extent permitted by applicable law, any payment due upon a deemed prepayment of the principal balance of the Note, and any applicable prepayment fee, charge or premium required to be paid under the Note in order to prepay principal, in any order that Lender chooses 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;(iv) To the extent permitted by Governmental Regulations, to be set aside by Lender as adequate security in its judgment for the payment of sums which would have been paid by application under clauses (i) through (iii) above to Lender, arising out of an obligation or liability with respect to which Borrower has agreed to indemnify Lender, but which sums are not yet due and payable or liquidated.

The remainder, if any, of such funds shall be disbursed to Borrower or to the Person or Persons legally entitled thereto, except as otherwise provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No sale or other disposition of all or any part of the Property pursuant to <u>Section 7.1</u> shall be deemed to relieve Borrower of its obligations under the Loan Documents, except to the extent the proceeds thereof are applied to the payment of such obligations. If the proceeds of sale, collection or other realization of or upon the Property are insufficient to cover the costs and expenses of such realization and the payment in full of any amounts due under the Loan Documents, Borrower shall remain liable for any deficiency pursuant to the terms of <u>Section 7.7</u> hereof, subject to the terms of <u>Section 9.21</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Right and Authority of Receiver or Lender in the Event of Default; Power of Attorney</u>. Upon the occurrence of an Event of Default and entry upon the Property pursuant to <u>Section 7.1(b)</u> hereof or appointment of a receiver pursuant to <u>Section 7.1(d)</u> hereof, and under such terms and conditions as may be prudent and reasonable under the circumstances in Lender's or the receiver's sole discretion, all at Borrower's expense, Lender, Trustee or said receiver, or such other Persons or entities as they shall hire, direct or engage, as the case may be, may (but shall have no obligation to) do or permit one or more of the following, successively or concurrently;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) enter upon and take possession and control of any and all of the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take and maintain possession of all documents, books, records, papers and accounts relating to the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) exclude Borrower and its agents, servants and employees wholly from the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) manage and operate the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) preserve and maintain the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) make repairs and alterations to the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) complete any construction or repair of the Improvements, with such changes, additions or modifications of the plans and specifications or intended disposition and use of the Improvements as Lender may in its sole discretion deem appropriate or desirable to place the Property in such condition as will, in Lender's sole discretion, make it or any part thereof readily marketable or rentable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) conduct a marketing or leasing program with respect to the Property, or employ a marketing or leasing agent or agents to do so, directed to the leasing or sale of the Property under such terms and conditions as Lender may in its sole discretion deem appropriate or desirable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) employ such contractors, subcontractors, materialmen, architects, engineers, consultants, managers, brokers, marketing agents, or other employees, agents, independent contractors or professionals, as Lender may in its sole discretion deem appropriate or desirable to implement and effectuate the rights and powers herein granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) execute and deliver, in the name of Borrower as attorney-in-fact and agent of Borrower or in its own name as Lender, such documents and instruments as are necessary or appropriate to consummate authorized transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) enter into such leases, whether of real or personal property, or tenancy agreements, under such terms and conditions as Lender may in its sole discretion deem appropriate or desirable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) collect and receive the Rents and Profits from the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) eject tenants or repossess personal property, as provided by law, for breaches of the conditions of their leases or other agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) sue for unpaid Rents and Profits, payments, income or proceeds in the name of Borrower or Lender or such receiver;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) maintain actions in forcible entry and detainer, ejectment for possession and actions in distress for rent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) compromise or give acquaintance for Rents and Profits, payments, income or proceeds that may become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) delegate or assign any and all rights and powers given to Lender by this Security Instrument; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) do any other acts which Lender in its sole discretion deems appropriate or desirable to protect the security hereof and use such measures, legal or equitable, as Lender may in its sole discretion deem appropriate or desirable to implement and effectuate the provisions of this Security Instrument. This Security Instrument shall constitute a direction to and full authority to any tenant, or other third party who has heretofore dealt or contracted or may hereafter deal or contract with Borrower or Lender, at the request of Lender upon the occurrence of an Event of Default, to pay all amounts owing under any lease, contract, concession, license or other agreement to Lender without proof of the default relied upon. Any such tenant or third party is hereby irrevocably authorized to rely upon and comply with (and shall be fully protected by Borrower in so doing) any request, notice or demand by Lender for the payment to Lender of any Rents and Profits or other sums which may be or thereafter become due under its lease, contract, concession, license or other agreement, or for the performance of any undertakings under any such lease, contract, concession, license or other agreement, and shall have no right or duty to inquire whether any default under this Security Instrument or under any of the other Loan Documents has actually occurred or is then existing. Borrower hereby constitutes and appoints Lender, its assignees, successors, transferees and nominees, as Borrower's true and lawful attorney-in-fact and agent, with full power of substitution in the Property, in Borrower's name, place and stead, upon an Event of Default to do or permit any one or more of the foregoing described rights, remedies, powers and authorities, successively or concurrently, and said power of attorney shall be deemed a power coupled with an interest and irrevocable so long as any indebtedness secured hereby is outstanding. Any money advanced by Lender in connection with any action taken under this <u>Section 7.3</u>, together with interest thereon at the Default Rate from the date of making such advancement by Lender until actually paid by Borrower, shall be a demand obligation owing by Borrower to Lender and shall be secured by this Security Instrument and by every other instrument securing the secured indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Occupancy After Foreclosure</u>. In case the liens or security interests of this Security Instrument shall be foreclosed, and Borrower or Borrower's representatives, successors or assigns, or any other Persons claiming any interest in the Property by, through or under Borrower (which, for purposes of this <u>Section 7.4</u> does not include any tenant under a written Lease, provided such tenant is not an Affiliate of Borrower) are occupying or using the Property, or any part thereof, then, to the extent not prohibited by applicable law, each and all shall, at the option of Lender or the purchaser at such sale, as the case may be, immediately become the tenant of the purchaser at such sale, which tenancy shall be a tenancy at sufferance, terminable at the will of landlord, at a reasonable rental per day based upon the value of the Property occupied or used, such rental to be due daily to the purchaser. Further, to the extent permitted by applicable law, in the event the tenant fails to forthwith surrender possession of the Property upon the termination of such tenancy, the purchaser shall be entitled to institute and maintain an action for unlawful detainer of the Property in the appropriate court of the county in which the Real Estate is located, and anyone occupying the Property after demand made for possession thereof shall be subject to eviction and removal, forcible or otherwise, with or without process of law, and all damages by reason thereof are hereby expressly waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Notice to Account Debtors</u>. Lender may, at any time after an Event of Default, notify the account debtors and obligors of any accounts, chattel paper, negotiable instruments or other evidences of indebtedness to Borrower included in the Property to pay Lender directly. Borrower shall at any time or from time to time upon the request of Lender provide to Lender a current list of all such account debtors and obligors and their addresses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Cumulative Remedies</u>. All remedies contained in this Security Instrument are cumulative and Lender shall also have all other remedies provided at law and in equity or in any other Loan Documents. Such remedies may be pursued separately, successively or concurrently at the sole subjective direction of Lender and may be exercised in any order and as often as occasion therefor shall arise. No act of Lender shall be construed as an election to proceed under any particular provisions of this Security Instrument to the exclusion of any other provision of this Security Instrument or as an election of remedies to the exclusion of any other remedy which may then or thereafter be available to Lender. No delay or failure by Lender to exercise any right or remedy under this Security Instrument shall be construed to be a waiver of that right or remedy or of any default hereunder. Lender may exercise any one or more of its rights and remedies at its option without regard to the adequacy of its security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Deficiency</u>. Subject to the terms of <u>Section 9.21</u> hereof. Borrower acknowledges and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event an interest in any of the Property is foreclosed, Borrower agrees as follows: Lender shall be entitled to seek a deficiency judgment from Borrower and any other party obligated on the Note equal to the difference between the amount upon which Borrower is personally liable under the Note and the amount for which the Property was sold pursuant to judicial or nonjudicial foreclosure sale. Borrower expressly recognizes that this Section 7.7 constitutes a waiver of any and all State of California Governmental Regulations which would otherwise permit Borrower and other Persons (if any) against whom recovery of deficiencies is sought (even absent the initiation of deficiency proceedings against them) to present competent evidence of the fair market value of the Property as of the date of the foreclosure sale and to offset against any deficiency the amount by which the foreclosure sale price is determined to be less than such fair market value. Borrower further recognizes and agrees that this waiver creates an irrebuttable presumption that the foreclosure sale price is equal to the fair market value of the Property for purposes of calculating deficiencies owed by Borrower and others (if any) against whom recovery of a deficiency is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any valuation of the Property as part of a foreclosure and sale, the following shall be the basis for the finder of fact's determination of the fair market value of the Property as of the date of the foreclosure sale in proceedings: (a) the Property shall be valued in an "as is" condition as of the date of the foreclosure sale, without any assumption or expectation that the Property will be repaired or improved in any manner before a resale of the Property after foreclosure; (b) the valuation shall be based upon an assumption that the foreclosure purchaser desires a resale of the Property for cash promptly (but no later than twelve (12) months) following the foreclosure sale; (c) all reasonable closing costs customarily borne by the seller in commercial real estate transactions should be deducted from the gross fair market value of the Property, including, without limitation, brokerage commissions, title insurance, a survey of the Property, tax prorations, attorneys' fees and marketing costs (but without duplication of any such expenses which were added to the obligations secured hereby); (d) to the extent permitted by law, the gross fair market value of the Property shall be further discounted to account for any estimated holding costs associated with maintaining the Property pending sale, including, without limitation, utilities expenses, property management fees, taxes and assessments (to the extent not accounted for in <u>(c)</u> above), and other maintenance, operational and ownership expenses (but without duplication of any such costs and expenses which were added to the obligations secured hereby); and (e) any expert opinion testimony given or considered in connection with a determination of the fair market value of the Property must be given by Persons having at least five (5) years' experience in appraising property similar to the Property and who have conducted and prepared a complete written appraisal of the Property taking into consideration the factors set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Borrower's Waivers</u>. BORROWER HEREBY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE UNDER APPLICABLE LAWS TO NOTICE, EXCEPT AS OTHERWISE HEREIN SPECIFICALLY PROVIDED, OR TO A JUDICIAL HEARING PRIOR TO THE EXERCISE OF ANY RIGHT OR REMEDY PROVIDED BY THIS SECURITY INSTRUMENT TO LENDER OR TRUSTEE, AND WAIVES ITS RIGHTS, IF ANY, TO SET ASIDE OR INVALIDATE ANY SALE DULY CONSUMMATED IN ACCORDANCE WITH THE PROVISIONS HEREOF ON THE GROUND (IF SUCH BE THE CASE) THAT THE SALE WAS CONSUMMATED WITHOUT A PRIOR JUDICIAL HEARING. BORROWER'S WAIVERS UNDER THIS <u>SECTION 7.8</u> HAVE BEEN MADE VOLUNTARILY, INTELLIGENTLY, AND KNOWINGLY AND AFTER BORROWER HAS BEEN APPRISED AND COUNSELED BY ITS ATTORNEY AS TO THE NATURE THEREOF AND ITS POSSIBLE ALTERNATIVE RIGHTS.

ARTICLE VIII

REPORTING AND WITHHOLDING REQUIREMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Withholding</u>. In the event of a foreclosure or delivery of a deed-in-lieu of foreclosure, Borrower agrees that Lender shall have the right to withhold any and all amounts necessary to comply with the requirements of Section 1445 of the Code, any successor statutes thereto and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Form 1099-S</u>. Borrower shall have supplied or caused to be supplied to Lender either (a) a copy of a completed Form 1099-S, Statement for Recipients of Proceeds from Real Estate Transactions prepared by Borrower's attorney together with a certification from Borrower to the effect that such form has, to the best of Borrower's knowledge, been accurately prepared and that Borrower will timely file, or will cause to be filed, such form, or (b) a certification from Borrower that the mortgage loan is a refinancing of the Property or is otherwise not required to be reported to the Internal Revenue Service pursuant to Section 6045(e) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Transfer Tax</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Covenants</u>. Borrower covenants and agrees that, in the event of a sale or other Transfer, it will duly complete, execute and deliver to Lender contemporaneously with their submission to the applicable taxing authority or recording officer, all forms and supporting documentation required by such taxing authority or recording officer to estimate and fix the real estate transfer tax ("**Transfer Tax**"), if any, payable by reason of such sale or other Transfer or recording of the deed evidencing such sale or other Transfer. This <u>Section 8.3</u> shall apply only if this Security Instrument is outstanding after any such sale or transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment</u>. Borrower agrees to pay all Transfer Taxes that may hereafter become due and payable with respect to any Transfer, and in default thereof Lender shall have the right, but not the obligation, to pay the same and the amount of such payment shall be added to the Obligations and be secured by this Security Instrument. The provisions of this Article shall survive any Transfer, foreclosure or deed in lieu of foreclosure and the delivery of the deed in connection with any Transfer, foreclosure or deed in lieu of foreclosure. Nothing in this Article shall be deemed to limit Lender's rights hereunder in the event any Transfer shall be made in violation of the provisions of this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Foreclosure</u>. The provisions of this <u>Section 8.3</u> shall be applicable also in the event of a foreclosure or delivery of a deed in lieu of foreclosure to the extent that Lender shall, in its sole judgment and discretion, determine that any tax (including a Transfer Tax) shall be payable by it.

ARTICLE IX

MISCELLANEOUS TERMS AND CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Time of Essence</u>. Time is of the essence for the performance of each and every covenant of Borrower hereunder. No excuse, delay, act of G-d, or other reason, whether or not within the control of Borrower, shall operate to defer, reduce or waive Borrower's performance of any monetary covenants or obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Release of This Security Instrument</u>. If all of the Obligations secured hereby shall have been paid and/or performed, then and in that event only, all rights under this Security Instrument shall terminate, except for any indemnities granted by Borrower hereunder to Lender and any other provisions hereof which by their terms survive, and the Property shall become wholly clear of the liens, security interests, conveyances and assignments evidenced hereby, which shall be released by Lender, at Borrower's cost. No release of this Security Instrument or the lien hereof shall be valid unless executed by Lender, which Lender agrees to provide on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Certain Rights of Lender</u>. Without affecting Borrower's liability for the payment of any of the indebtedness secured hereby, Lender may from time to time and without notice to Borrower: (a) release any Person liable for the payment of tire indebtedness secured hereby; (b) extend or modify the terms of payment of the indebtedness secured hereby; (c) accept additional real or personal property of any kind as security or alter, substitute or release any property securing the indebtedness secured hereby; (d) release any part of the Property; (e) consent in writing to the making of any subdivision map or plat thereof; (f) join in granting any easement therein; or (g) join in any extension agreement of this Security Instrument or any agreement subordinating any lien or security interest granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Additional Borrower's Waivers</u>. To the full extent permitted by law, Borrower agrees that Borrower shall not at any time insist upon, plead, claim or take the benefit or advantage of any law now or hereafter in force providing for any appraisement, valuation, stay, moratorium or extension, or any law now or hereafter in force providing for the reinstatement of the Obligations prior to any sale of the Property to be made pursuant to any provisions contained herein or prior to the entering of any decree, judgment or order of any court of competent jurisdiction, or any right under any statute to redeem all or any part of the Property so sold. Borrower, for Borrower and Borrower's successors and assigns, and for any and all Persons ever claiming any interest in the Property including, without limitation, any Borrower Party, to the full extent permitted by law, hereby knowingly, intentionally and voluntarily with and upon the advice of competent counsel: (a) waives, releases, relinquishes and forever forgoes all rights of valuation, appraisement, stay of execution, reinstatement and notice of election or intention to mature or declare due the Obligations (except such notices as are specifically provided for herein); (b) waives, releases, relinquishes and forever forgoes all right to a marshaling of the assets of Borrower or any other Borrower Party, including the Property, to a sale in the inverse order of alienation, or to direct the order in which any of the Property shall be sold in the event of foreclosure of the liens and security interests hereby created and agrees that any court having jurisdiction to foreclose such liens and security interests may order the Property sold as an entirety; (c) waives, releases, relinquishes and forever forgoes all rights and periods of redemption provided under Governmental Regulations; and (d) waives notice of intention to accelerate the indebtedness, notice of acceleration of the indebtedness, demand, protest and notice of demand, protest and nonpayment and all other notices. To the full extent permitted by law, Borrower shall not have or assert any right under any Governmental Regulations pertaining to the exemption of homestead or other exemption under any Governmental Regulations now or hereafter in effect, the administration of estates of decedents or other matters whatever to defeat, reduce or affect the right of Lender under the terms of this Security Instrument to a sale of the Property, for the collection of the Obligations without any prior or different resort for collection, or the right of Lender under the terms of this Security Instrument to the payment of the Obligations out of the proceeds of sale of the Property in preference to every other claimant whatever. Further, Borrower hereby knowingly, intentionally and voluntarily, with and upon the advice of competent counsel, waives, releases, relinquishes and forever forgoes all present and future statutes of limitations as a defense to any action to enforce the provisions of this Security Instrument or to collect any of the Obligations to the fullest extent permitted by law. Borrower covenants and agrees that upon the commencement of a voluntary or involuntary bankruptcy proceeding by or against Borrower, Borrower shall not seek a supplemental stay or otherwise pursuant to 11 U.S.C. § 105 or any other provision of the United States Bankruptcy Code, or any other debtor relief law (whether statutory, common law, case law, or otherwise) of any jurisdiction whatsoever, now or hereafter in effect, which may be or become applicable, to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any rights of Lender against any guarantor or indemnitor of the Obligations or any other party liable with respect thereto by virtue of any indemnity, guaranty or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Notices</u>. Any notice, demand, consent, approval, direction, waiver, agreement or other communication (any "**Notice**") required or permitted hereunder or under any other documents in connection herewith shall be in writing and shall be directed as follows:

If to Borrower:

Napa Square Owner NY LLC

One Napa LLC

JNK Napa Square LLC

c/o JOSS Realty Partners LLC

1345 Avenue of the Americas, 31<sup>st</sup> Floor

New York, New York 10105

Attention: Larry Botel

with a copy to:

Morrison Cohen LLP

909 Third Avenue

New York, New York 10022-4784

Attention: Jonathan S. Margolis, Esq.

If to Lender:

Insurance Strategy Funding II, LLC

c/o JPMorgan Chase Bank 270

Park Avenue, 9<sup>th</sup> Floor

New York, New York 10017

Attention: Jay Dewaltoff

with a copy to:

Hunton & Williams LLP

200 Park Avenue

New York, New York 10166

Attention: Peter J. Mignone, Esq.

or to such changed address as a party hereto shall designate to the other party hereto from time to time in writing. Any counsel designated above or replacement counsel which may be designated respectively by each party by written notice to the other party hereto is hereby authorized to give notices hereunder on behalf of its respective client.

Notices shall be (i) personally delivered to the offices set forth above, in which case they shall be deemed delivered on the date of delivery or first (1<sup>st</sup>) business day thereafter if delivered other than on a business day (or after 5:00 p.m. New York City time) to said offices; (ii) sent by registered or certified mail, postage prepaid, return receipt requested, in which case they shall be deemed delivered on the date shown on the receipt unless delivery is refused by the addressee in which event they shall be deemed delivered on the earliest to occur of the first (1<sup>st</sup>) business day on or after the date of delivery or the third (3<sup>rd</sup>) business day after such notice has been deposited in the U.S. Mail in accordance with the terms hereof; or (iii) sent by a nationally recognized overnight courier, in which case they shall be deemed delivered on the date of delivery unless delivery is refused by the addressee in which event they shall be deemed delivered on the first (1<sup>st</sup>) business day on or after the date following the date such notice was delivered to or picked up by the courier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Successors and Assigns</u>. The provisions hereof shall be binding upon Borrower and the heirs, devisees, representatives, permitted successors and permitted assigns of Borrower, including successors in interest of Borrower in and to all or any part of the Property, and shall inure to the benefit of Lender and its heirs, successors and assigns. All references in this Security Instrument to Borrower or Lender shall be construed as including all of such other Persons with respect to the Person referred to. Where two or more Persons have executed this Security Instrument, the obligations of such Persons shall be joint and several except to the extent the context clearly indicates otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Severability</u>. In the event that any provision of this Security Instrument or the application thereof to Borrower shall, to any extent, be invalid or unenforceable under any applicable statute, regulation, or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute, regulation or rule of law, and tire remainder of this Security Instrument and the application of any such invalid or unenforceable provision to parties, jurisdictions, or circumstances other than to whom or to which it shall be held invalid or unenforceable, shall not be affected thereby nor shall same affect the validity or enforceability of any other provision of this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Waiver; Discontinuance of Proceedings</u>. Lender may waive any single default by Borrower hereunder without waiving any other prior or subsequent default. Lender may remedy any default by Borrower hereunder without waiving the default remedied. Neither the failure by Lender to exercise, nor the delay by Lender in exercising, any right, power or remedy upon any default by Borrower hereunder shall be construed as a waiver of such default or as a waiver of the right to exercise any such right, power or remedy at a later date. No single or partial exercise by Lender of any right, power or remedy hereunder shall exhaust the same or shall preclude any other or further exercise thereof, and every such right, power or remedy hereunder may be exercised at any time and from time to time. No modification or waiver of any provision hereof nor consent to any departure by Borrower therefrom shall in any event be effective unless the same shall be in writing and signed by Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose given. No notice to nor demand on Borrower in any case shall of itself entitle Borrower to any other or further notice or demand in similar or other circumstances. Acceptance by Lender of any payment in an amount less than the amount then due on any of the secured indebtedness shall be deemed an acceptance on account only and shall not in any way affect the existence of a default hereunder. In case Lender shall have proceeded to invoke any right, remedy or recourse permitted hereunder or under the other Loan Documents and shall thereafter elect to discontinue or abandon the same for any reason, Lender shall have the unqualified right to do so and, in such an event. Borrower and Lender shall be restored to their former positions with respect to the indebtedness secured hereby, the Loan Documents, the Property and otherwise, and the rights, remedies, recourses and powers of Lender shall continue as if the same had never been invoked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>Construction of Provisions</u>. The following rules of construction shall be applicable for all purposes of this Security Instrument and of the other Loan Documents or instalments supplemental hereto, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All references herein to numbered Articles or Sections or to lettered Exhibits are references to the Articles and Sections hereof and the Exhibits annexed to this Security Instrument, unless expressly otherwise designated in context.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The terms "**include**"**,** "**including**" and similar terms shall be construed as if followed by the phrase "without being limited to."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "**Property**" shall be construed as if followed by the phrase "or any part thereof."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The term "**Obligations**" shall be construed as if followed by the phrase "or any other sums secured hereby, or any part thereof."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Words of masculine, feminine or neuter gender shall mean and include the correlative words of the other genders, and words importing the singular number shall mean and include the plural number, and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The term "**Person**" shall include natural persons, firms, partnerships, corporations and any other public and private legal entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The term "**provisions**", when used with respect hereto or to any other document or instrument, shall be construed as if preceded by the phrase "**terms, covenants, agreements, requirements, conditions and/or**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All Article, Section and Exhibit captions herein are used for convenience and reference only and in no way define, limit or describe the scope or intent of, or in any way affect, this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No inference in favor of any party shall be drawn from the fact that such party has drafted any portion hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The cover page of and all recitals set forth in, and all Exhibits to, this Security Instrument are hereby incorporated in this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All obligations of Borrower hereunder shall be performed and satisfied by or on behalf of Borrower at Borrower's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The term "**landlord**" shall mean "**landlord, sublandlord, lessor and sublessor**", as the case may be, and the term "**tenant**" shall mean "**tenant, subtenant, lessee and sublessee**", as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The term "**Business Day**" shall mean any day of the year other than (a) Saturday, Sunday, (b) a day on which banks in the City of New York are authorized or required by law to remain closed, or (c) a day on which the New York Stock Exchange is closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The term "**Affiliate**" shall mean, with respect to any Person, (i) in the case of any such Person which is a partnership or limited liability company, any general partner or managing member in such partnership or limited liability company, respectively, (ii) any other Person which is directly or indirectly controlled by, controls or is under common control with such Person or one or more of the Persons referred to in the preceding clause (i), and (iii) any other Person who is a senior executive officer, director or trustee of such Person or any Person referred to in the preceding clauses (i) and (ii); provided, however, in no event shall Lender or any of its Affiliates be an Affiliate of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <u>Counting of Days</u>. The term "**<u>days</u>**" when used herein shall mean calendar days. If any time period ends on a day which is not a Business Day, the period shall be deemed to end on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 <u>Application of the Proceeds of the Note</u>. To the extent that proceeds of the Note are used to pay indebtedness secured by any outstanding Lien, security interest, charge or prior encumbrance against the Property, such proceeds have been advanced by Lender at Borrower's request and Lender shall be subrogated to any and all rights, security interests and Liens owned by any owner or holder of such outstanding Liens, security interests, charges or encumbrances, irrespective of whether said Liens, security interests, charges or encumbrances are released.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 <u>Unsecured Portion of Indebtedness</u>. If any part of the secured indebtedness cannot be lawfully secured by this Security Instrument or if any part of the Property cannot be lawfully subject to the lien and security interest hereof to the full extent of such indebtedness, then all payments made shall be applied on said indebtedness first in discharge of that portion thereof which is unsecured by this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13 <u>Cross-Default</u>. An Event of Default hereunder which has not been cured within any applicable notice, grace or cure period shall constitute a default under each of the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14 <u>Publicity</u>. Neither Borrower nor any Borrower Party (or their affiliates) shall use the name of Lender, J.P. Morgan Investment Management Inc., JPMorgan Chase Bank, N.A., or any subsidiary or affiliate thereof, in any advertising, press release, "tombstone," or on any sign erected on the Property without the prior written approval of Lender in each instance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15 <u>Construction of this Document</u>. This document may be construed as a mortgage, security deed, chattel mortgage, conveyance, assignment, security agreement, pledge, financing statement, hypothecation or contract, or any one or more of the foregoing, in order to fully effectuate the liens and security interests created hereby and the purposes and agreements herein set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.16 <u>No Merger</u>. It is the desire and intention of the parties hereto that this Security instrument and the lien hereof do not merge in fee simple title to the Property. It is hereby understood and agreed that should Lender acquire any additional or other interests in or to the Property or the ownership thereof, then, unless a contrary intent is manifested by Lender as evidenced by an appropriate document duly recorded, this Security Instrument and the lien hereof shall not merge in such other or additional interests in or to the Property, toward the end that this Security Instrument may be foreclosed as if owned by a stranger to said other or additional interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17 <u>Lender May File Proofs of Claim</u>. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting Borrower or the principals or general partners in Borrower, or their respective creditors or property, Lender, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of Lender allowed in such proceedings for the entire secured indebtedness at the date of the institution of such proceedings and for any additional amount which may become due and payable by Borrower hereunder after such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18 <u>Fixture Filing</u>. This Security Instrument shall be effective from the date of its recording as a financing statement filed as a fixture filing under the applicable UCC with respect to all goods constituting part of the Property which are or are to become fixtures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.19 <u>Assignment by Lender</u>. Borrower agrees that Lender may assign, sell or transfer the Loan, its rights under this Security Instrument and the other Loan Documents and any servicing rights with respect to the Loan, whether in whole or in part, and/or grant participations in the Loan. In the event of any assignment of the Loan by Lender, Lender (and its partners, officers, directors, agents, attorneys, administrators, trustees, parents, subsidiaries, advisors, affiliates, beneficiaries, shareholders, representatives, servants and employees and their respective affiliates) will be deemed released of and from any obligation or liability (including, without limitation, any Losses and Liabilities of any Person) with respect to the Loan, this Security Instrument and the other Loan Documents (without any further action or agreement required) with respect to the Loan. Lender may forward to any potential assignee or transferee of any interest in the Loan or any servicing rights with respect to the Loan any and all documents and information which Lender now has or may hereafter acquire relating to the Loan and to the Borrower Parties and the Property, whether furnished by the Borrower Parties or otherwise, as Lender determines necessary or desirable. Borrower, on behalf of itself and the Borrower Parties, agrees to cooperate with Lender in connection with any transaction contemplated in this <u>Section 9.19</u>. Lender shall notify Borrower within ten (10) days after any such sale, assignment or transfer, including the name and address of any transferee and/or new servicer of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.20 <u>No Representation</u>. By accepting delivery of any item required to be observed, performed or fulfilled or to be given to Lender pursuant to the Loan Documents, including, but not limited to, any officer's certificate, balance sheet, statement of profit and loss or other financial statement, survey, appraisal or insurance policy, Lender shall not be deemed to have warranted, consented to, or affirmed the sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof, and such acceptance of delivery thereof shall not be or constitute any warranty, consent or affirmation with respect thereto by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.21 <u>Limited Recourse</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained herein, Borrower shall be personally liable to Lender for the Recourse Obligations of Borrower (as hereinafter defined). Unless a Full Recourse Event (as hereinafter defined) shall have occurred, the term "**Recourse Obligations of Borrower**" shall mean any and all Losses and Liabilities sustained by Lender to the extent arising out of or with respect to:

&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) fraud or any willful and material misrepresentation by Borrower or any other Borrower Party set forth in or otherwise made in connection with this Security Instrument or any of the other 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;(ii) Borrower's misapplication (i.e., application in violation of the terms of the Loan Documents) or misappropriation of Rents and Profits or condemnation or insurance proceeds;

&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) Material physical waste of the 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;(iv) Borrower's failure to pay to Lender all Rents and Profits and other sums attributable to the Property or other collateral for the Obligations from and after the occurrence of any Event of Default;

&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) Borrower's failure to pay any Impositions or insurance premiums to the extent there is sufficient net cash flow generated by the Property to pay the same;

&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) any violation of <u>Section 2.1(f)</u> hereof;

&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) any violation of <u>Section 2.6</u> hereof with regard to mechanics' liens ("**Mechanics' Lien Violation**");

&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) any violation of <u>Section 3.2</u> or <u>Section 8.3</u> hereof;

&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) any Environmental Condition;

&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) after an Event of Default has occurred, Borrower (or any other member of the Borrower Group) in any way, directly or indirectly, takes any action to stay, hinder, interfere, delay or impede Lender from foreclosing the Security Instrument or exercising its other remedies under the Loan Documents; provided that neither Borrower nor any other member of the Borrower Group shall be liable to the extent of any applicable Losses and Liabilities arising solely from a defense of Borrower or any member of the Borrower Group raised in good faith;

&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) the removal or disposal of any portion of the Property after an Event of Default, unless any personal property that is removed or disposed of is replaced with personal property of the same utility and the same or greater value;

&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) the filing by any Borrower or any of their general partners, managing members or principals of any action or proceeding to partition al l or any portion of the Property or any action to compel the sale 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;(xiii) any violation of any obligation set forth in <u>Article XI</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary contained herein, in the event of the occurrence of any Full Recourse Event, the term "**Recourse Obligations of Borrower**" shall be deemed to include all the Obligations. For purposes hereof, the term "**Full Recourse Event**" shall mean:

&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) Borrower, or any member of the Borrower Group (as hereinafter defined) challenging or disputing the validity or enforceability of any of the provisions of this Security Instrument or any of the other Loan Documents or the validity, enforceability or priority of the liens and security interests securing payment of amounts owing or payable under the terms of the Note, this Security Instrument or any of the other Loan Documents. As used in this Security Instrument, the term "**Borrower Group**" shall mean Borrower and Borrower's Affiliates or any other party having Control of Borrower (which shall include, but not be limited to, any creditor or claimant acting in concert with Borrower);

&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) Borrower files any petition or commences any proceeding pursuant to any reorganization, bankruptcy, insolvency or similar law or any such petition or proceeding is filed or commenced against Borrower by any other member of the Borrower Group and Borrower or any other member of the Borrower Group objects to a motion by Lender for relief from any stay or injunction from pursuing a foreclosure or any other remedial action permitted under the Loan Documents; or (B) if the Property or any part thereof shall become an asset in (1) a voluntary bankruptcy or insolvency proceeding, or (2) an involuntary bankruptcy or insolvency proceeding which is commenced by any member of the Borrower Group;

&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 violation of <u>Section 2.6(b)</u> hereof (other than a Mechanics' Lien Violation);

&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 Transfer is made in violation of the provisions of <u>Section 5.1</u> hereof or if the Minimum Ownership/Control Test fails to be satisfied at any time;

&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) a court of competent jurisdiction holds that the granting, execution or delivery of this Security Instrument or any other Loan Documents or the acquisition of the Property by Borrower constitutes a fraudulent conveyance under any bankruptcy, insolvency or fraudulent conveyance law or is otherwise voidable under any such laws; 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;(vi) any violation of <u>Section 2.1(f)</u> hereof and such violation is a factor in the consolidation of the assets and liabilities of Borrower and any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing herein shall be deemed to be a waiver of any right which Lender may have under Sections 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Obligations or to require that all collateral shall continue to secure all of the Obligations owing to Lender in accordance with the Note, this Security Instrument and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.22 <u>Entire Agreement and Modifications</u>. This Security Instrument cannot be altered, amended, modified, terminated or discharged, except in a writing signed by the party against whom enforcement of such alteration, amendment, modification, termination or discharge is sought. It is expressly understood and agreed that neither this Security Instrument nor any of the other Loan Documents can be modified orally and no oral modifications or other agreements with respect to this Security Instrument or any other Loan Document shall be valid or enforceable. Borrower agrees that the written agreements evidenced by this Security Instrument and the other Loan Documents represent the final agreement between the parties hereto and thereto and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements among the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.23 <u>Commissions</u>. Borrower agrees to pay and to indemnify and hold Lender and Trustee harmless from any and all loss, cost or expense (including reasonable attorneys' fees and expenses) arising from the claims of any brokers or anyone claiming a right to any fees in connection with the financing of the Property by, through or under Borrower or its Affiliates (as defined in the Note). Notwithstanding the foregoing, Borrower acknowledges that Lender or its affiliates may have a contractual relationship with the broker, if any, that arranged the Loan on Borrower's behalf and that such broker may be entitled to fees from Lender or its affiliates in connection with the origination, closing or servicing of the Loan, which fees shall be in addition to any brokerage fees owed by Borrower to such broker. Borrower shall not be responsible for any such additional fees. Borrower acknowledges and agrees that it has made and will make such inquiries of the broker, if any, that arranged the Loan with respect to the nature or existence of such arrangement. No agreement by Lender to pay any such fees or compensation to such broker (if any) shall be binding upon Lender unless it is set forth in separate written instrument that has been duly executed by Lender and such broker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.24 <u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.25 <u>Usury Savings Clause</u>. It is the intention of Borrower and Lender to conform strictly to all applicable usury laws now or hereinafter in force. All agreements in this Security Instrument and in the other Loan Documents are expressly limited so that in no contingency or event whatsoever, whether by reason of advancement or acceleration of maturity of the Obligations, or otherwise, shall the amount paid or agreed to be paid hereunder or thereunder for the use, forbearance or detention of money, to the extent that any sums secured hereby or by the other Loan Documents shall not be exempt from such laws, exceed the highest lawful rate permitted under applicable usury laws as now or hereinafter construed by the court having jurisdiction over such matters. If from any circumstance whatsoever, fulfillment of any provision of the Loan Documents, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law which a court of competent jurisdiction may deem applicable hereto, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity and if, from any circumstance whatsoever, Lender shall ever receive as interest an amount which would exceed the highest lawful rate, the receipt of such excess shall, at the option of Lender, be deemed a mistake and such excess shall be rebated to Borrower or, held in trust by Lender for the benefit of Borrower and shall be credited against the principal amount of the Obligations to which the same may lawfully be credited, and any portion of such excess not capable of being so credited shall be rebated to Borrower. The aggregate of all interest (whether designated as interest, service charges, points or otherwise) contracted for, chargeable, or receivable under the Note, this Security Instrument, or any other Loan Document shall under no circumstances exceed the maximum legal rates upon the unpaid principal balance of the Note remaining from time to time. In the event such interest does exceed the maximum legal rate, it shall be deemed a mistake and such excess shall be canceled automatically and if theretofore paid, rebated to Borrower or credited on the principal amount of the Note, or if the Note has been repaid, then such excess shall be rebated to Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.26 <u>Right to Deal</u>. In the event that ownership of the Property becomes vested in a Person other than Borrower, Lender may, without notice to Borrower, deal with such successor or successors in interest with reference to this Security Instrument or the Obligations in the same manner as with Borrower, without in any way vitiating or discharging Borrower's liability hereunder or for the payment of the Obligations or being deemed a consent to such vesting. It being agreed that Lender's dealing with any such successor or successors as aforesaid shall not relieve Borrower of its obligations or liabilities hereunder or under the Loan Documents (including, without limitation, the Obligations), all of which shall remain the primary obligations and liabilities of Borrower as a principal hereunder and thereunder, and not as merely a guarantor or by way of stand-by liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.27 <u>Sole Discretion of Lender</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever Lender's judgment, consent or approval is required under this Security Instrument or any of the other Loan Documents for any matter, or Lender shall have an option or election under this Security Instrument or any of the other Loan Documents, such judgment, the decision as to whether or not to consent to or approve the same or the exercise of such option or election shall (except as otherwise expressly provided herein or therein) be made in the sole, absolute, unfettered and subjective discretion of Lender, and as to which decision no standard of reasonableness shall apply or be deemed to apply, and, furthermore, shall be final and conclusive. The use of the phrase "in Lender's sole discretion", "in the sole discretion of Lender" and words of similar import, when used in this Security Instrument or any other Loan Document (as well as the absence thereof) with respect to a particular matter shall not be deemed in any way to limit or modify the provisions of the preceding sentence with respect to such matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time Borrower believes that Lender has not acted reasonably in granting or withholding any approval or consent under this Security Instrument or any of the other Loan Documents as to which approval or consent Lender has expressly agreed to act reasonably, then Borrower's sole and exclusive remedy shall be to seek injunctive relief or specific performance and no action for monetary damages, punitive damages or any other Losses and Liabilities shall in any event or under any circumstances be sought or maintained by Borrower against Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.28 <u>Provisions as to Covenants and Agreements</u>. All of Borrower's covenants and agreements hereunder shall run with the land.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.29 <u>No Joint Venture</u>. The parties intend and agree that the relationship between them shall be solely that of contracting parties. Nothing contained in this Security Instrument or in any of the Loan Documents shall be deemed or construed to create a partnership, tenancy-in- common, joint tenancy, joint venture or co-ownership by or between Borrower and Lender. Lender shall not in any way be responsible for the debts, losses or obligations of Borrower with respect to the Property or otherwise. All obligations to pay the Impositions arising from the ownership, operation or occupancy of the Property and to perform all other agreements and contracts relating to the Property shall be the sole responsibility of Borrower. Borrower, subject to the terms and provisions of the Loan Documents (including this Security Instrument), shall be free to determine and follow its own policies and practices in the conduct of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.30 <u>Indemnification Provisions</u>. THIS SECURITY INSTRUMENT CONTAINS INDEMNIFICATION PROVISIONS WHICH, AMONG OTHER MATTERS AND IN CERTAIN CIRCUMSTANCES, INDEMNIFY LENDER, TRUSTEE AND OTHER INDEMNITEES AGAINST THE CONSEQUENCES OF THEIR OWN NEGLIGENCE AND AGAINST ANY STRICT LIABILITY WHICH COULD BE IMPOSED ON LENDER, TRUSTEE AND SUCH OTHER INDEMNITEES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.31 <u>Applicable Law; Consent to Jurisdiction; No Jury</u>. BORROWER AND LENDER HEREBY AGREE THAT THIS SECURITY INSTRUMENT SHALL BE INTERPRETED, CONSTRUED, GOVERNED AND ENFORCED ACCORDING TO THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OF CHOICE OF LAW OR CONFLICTS OF LAW THAT WOULD DEFER TO THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR CREATION, PERFECTION AND ENFORCEMENT OF THE LIENS AND SECURITY INTEREST CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS WITH RESPECT TO THE PROPERTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, IT BEING UNDERSTOOD THAT BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS SECURITY INSTRUMENT OR THE OTHER LOAN DOCUMENTS. BORROWER HEREBY IRREVOCABLY: (A) SUBMITS IN ANY LEGAL PROCEEDING RELATING TO THIS SECURITY INSTRUMENT TO THE NON-EXCLUSIVE IN PERSONAM JURISDICTION OF ANY STATE OR THE UNITED STATES COURT OF COMPETENT JURISDICTION SITTING IN THE STATE OF NEW YORK, COUNTY OF NEW YORK, IN CONNECTION WITH ANY MATTER GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK LAW PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND AGREES TO SUIT BEING BROUGHT IN SUCH COURTS, AS LENDER MAY ELECT; (B) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF SUCH PROCEEDING IN ANY SUCH COURT OR THAT SUCH PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT; (C) AGREES TO SERVICE OF PROCESS IN ANY LEGAL PROCEEDING BY MAILING OF COPIES THEREOF (BY REGISTERED OR CERTIFIED MAIL, IF PRACTICABLE) POSTAGE PREPAID, TO ITS ADDRESS SET FORTH ABOVE OR SUCH OTHER ADDRESS OF WHICH LENDER SHALL HAVE BEEN NOTIFIED IN WRITING; AND (D) AGREES THAT NOTHING HEREIN SHALL AFFECT LENDER'S RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, AND THAT LENDER SHALL HAVE THE RIGHT TO BRING ANY LEGAL PROCEEDINGS (INCLUDING A PROCEEDING FOR THE ENFORCEMENT OF A JUDGMENT ENTERED BY ANY OF THE AFOREMENTIONED COURTS) AGAINST BORROWER IN ANY OTHER COURT OR JURISDICTION IN ACCORDANCE WITH APPLICABLE LAW.

BORROWER AND LENDER EACH WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE LOAN SECURED BY THIS SECURITY INSTRUMENT, OR ANY OF THE LOAN DOCUMENTS. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY BORROWER AND LENDER AND BORROWER ACKNOWLEDGES THAT NEITHER LENDER NOR ANY PERSON ACTING ON BEHALF OF LENDER HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. BORROWER FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS SECURITY INSTRUMENT AND THE OTHER LOAN DOCUMENTS IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. BORROWER FURTHER ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER PROVISION AND AS EVIDENCE OF THIS FACT HAS EXECUTED THIS SECURITY INSTRUMENT BELOW. BORROWER SHALL NOT SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY LENDER EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY LENDER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.32 <u>Substitution of Trustee</u>. Lender shall have, and is hereby granted by Borrower with warranty of further assurances, the irrevocable power to appoint one or more Persons or entities as a substitute Trustee hereunder, to be exercised at any time hereafter without specifying any reason therefor, by filing for record in the office where this Security Instrument is recorded a deed of appointment. Said power of appointment of one or more successor Trustees may be exercised as often and whenever Lender deems it advisable. The exercise of said power of appointment, no matter how often, shall not be an exhaustion thereof. Upon the recordation of such deed of appointment, the Trustee so appointed shall thereupon, without any further act or deed of conveyance, become fully vested with identically the same title and estate in and to the Property and with all the rights, powers, trusts and duties of their, his, hers or its predecessor in the trust hereunder with like effect as if originally named as Trustee. Whenever in this Security Instrument reference is made to Trustee, it shall be construed to mean each Person or entity appointed as Trustee for the time being, whether original or successors or successor in trust. All title, estate, rights, powers, trusts and duties hereunder given or appertaining to or devolving upon Trustee shall be in each of the Persons or entities appointed as Trustee so that any action hereunder or purporting to be hereunder of any one of the Persons or entities appointed as Trustee shall for all purposes be considered to be, and as effective as, the action of Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.33 <u>The Trustee's Fees</u>. Borrower shall pay all reasonable costs, fees and expenses incurred by the Trustee and the Trustee's agents and counsel in connection with the performance by the Trustee of the Trustee's duties hereunder and all costs, fees and expenses shall be secured by this Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.34 <u>Certain Rights</u>. With the approval of Lender, the Trustee shall have the right to take any and all of the following actions: (i) to select, employ, and advise with counsel (who may be, but need not be, counsel for Lender) upon any matters arising hereunder, including the interpretation of the Note, this Security Instrument or the other Loan Documents, and shall be fully protected in relying as to legal matters on the advice of counsel, (ii) to execute any of the trusts and powers hereof and to perform any duty hereunder either directly or through his or her agents or attorneys, (iii) to select and employ, in and about the execution of his duties hereunder, suitable accountants, engineers and other experts, agents and attorneys-in-fact, either corporate or individual, not regularly in the employ of the Trustee, and the Trustee shall not be answerable for any act, default, negligence, or misconduct of any such accountant, engineer or other expert, agent or attorney-in-fact, if selected with reasonable care, or for any error of judgment or act done by the Trustee in good faith, or be otherwise responsible or accountable under any circumstances whatsoever, except for the Trustee's gross negligence or bad faith, and (iv) any and all other lawful action as Lender may instruct the Trustee to take to protect or enforce Lender's rights hereunder. The Trustee shall not be personally liable in case of entry by the Trustee, or anyone entering by virtue of the powers herein granted to the Trustee, upon the Property for debts contracted for or liability or damages incurred in the management or operation of the Property. The Trustee shall have the right to rely on any instrument, document, or signature authorizing or supporting an action taken or proposed to be taken by the Trustee hereunder, believed by the Trustee in good faith to be genuine. The Trustee shall be entitled to reimbursement for actual expenses incurred by the Trustee in the performance of the Trustee's duties hereunder and to reasonable compensation for such of the Trustee's services hereunder as shall be rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.35 <u>Retention of Money</u>. All moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated in any manner from any other moneys (except to the extent required by applicable law) and the Trustee shall be under no liability for interest on any moneys received by the Trustee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.36 <u>Perfection by Appointment</u>. Should any deed, conveyance, or instrument of any nature be required from Borrower by any Trustee or substitute trustee to more folly and certainly vest in and confirm to the Trustee or substitute trustee such estates rights, powers, and duties, then, upon request by the Trustee or substitute trustee, any and all such deeds, conveyances and instruments shall be made, executed, acknowledged, and delivered and shall be caused to be recorded and/or filed by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.37 <u>Succession Instruments</u>. Any substitute trustee appointed pursuant to any of the provisions hereof shall, without any further act, deed, or conveyance, become vested with all the estates, properties, rights, powers, and trusts of its or his predecessor in the rights hereunder with like effect as if originally named as the Trustee herein; but nevertheless, upon the written request of Lender or of the substitute trustee, the Trustee ceasing to act shall execute and deliver any instrument transferring to such substitute trustee, upon the trusts herein expressed, all the estates, properties, rights, powers, and trusts of the Trustee so ceasing to act, and shall duly assign, transfer and deliver any of the property and moneys held by such Trustee to the substitute trustee so appointed in the Trustee's place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.38 <u>Reliance of Trustee</u>. As to all matters concerning the existence of defaults hereunder and the amount of indebtedness subject to the Note and secured hereby, as well as similar or related matters, the Trustee is hereby authorized by Borrower to rely conclusively upon, without further inquiry, the affidavit of any officer of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.39 <u>Environmental Indemnity</u>. Simultaneously with this Security Instrument, Borrower and Indemnitor have executed that certain Environmental Indemnity Agreement in favor of Lender (the "**Environmental Indemnity**"). The obligations of Borrower and Indemnitor under the Environmental Indemnity are not part of the Debt and are not secured by this Security Instrument.

ARTICLE X

ADDITIONAL REPRESENTATIONS, WARRANTIES

AND WAIVERS OF BORROWER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Conditions to Exercise of Rights</u>. Borrower hereby waives any right it may now or hereafter have to require Lender, as a condition to the exercise of any remedy or other right against Borrower hereunder or under any other document executed by Borrower in connection with the Loan and the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to pursue any other right or remedy in Lender's power; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to make or give (except as otherwise expressly provided in the Loan Documents) any presentment, demand, protect, notice of dishonor, notice of protest or other demand or notice of any kind in connection with any Obligation or any collateral (other than the Property) for any Obligation secured by this Security Instrument or any of the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Defenses</u>. Borrower hereby waives any defense it may now or hereafter have that relates to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any disability or other defense of any other Borrower Party or other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the unenforceability or invalidity of any collateral assignment (other than this Security Instrument) or guaranty with respect to any Obligation, or the lack of perfection or continuing perfection or lack of priority of any Lien (other than the lien hereof) which secures any Obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any failure of Lender to marshal assets in favor of Borrower or any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any modification of any Obligation, including any renewal, extension, acceleration or increase in any applicable interest rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any and all rights and defenses arising out of an election of remedies by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any failure of Lender to file or enforce a claim in any bankruptcy proceeding of any Person, of the application or non-application of Section 111(b)(2) of the United States Bankruptcy Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any extension of credit or the grant of any Lien under Section 364 of the United States Bankruptcy Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any use of cash collateral under Section 363 of the United States Bankruptcy Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any agreement or stipulation with respect to the provision of adequate protection in any bankruptcy proceeding of any Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Lawfulness and Reasonableness</u>. Borrower warrants that all of the waivers in this Security Instrument are made with full knowledge of their significance, and of the fact that events giving rise to any defense or other benefit waived by Borrower may destroy or impair rights which Borrower would otherwise have against Lender, any other Borrower Party and other Persons, or against Collateral. Borrower agrees that all such waivers are reasonable under the circumstances and further agrees that, if any such waiver is determined (by a court of competent jurisdiction) to be contrary to any law or public policy, the other waivers herein shall nonetheless remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Enforceability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower hereby acknowledges 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;(1) the obligations undertaken by Borrower in this Security Instrument are complex in nature;

&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) numerous possible defenses to the enforceability of these obligations may presently exist and/or may arise hereafter;

&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) as part of Lender's consideration for entering into this transaction. Lender has specifically bargained for the waiver and relinquishment by Borrower of all such defenses; 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;(4) Borrower has had the opportunity to seek and receive legal advice from skilled legal counsel in the area of financial transactions of the type contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower does hereby represent and confirm to Lender that Borrower is fully informed regarding, and that Borrower does thoroughly understand:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the nature of all of the possible defenses to the enforceability of these obligations may presently exist and/or may arise hereafter;

&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) the circumstances under which such defenses may arise;

&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) the benefits which such defenses might confer upon Borrower; 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;(4) the legal consequences to Borrower of waiving such defenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Borrower acknowledges that Borrower makes this Security Instrument with the intent that this Security Instrument and all of the informed waivers herein shall each and all be fully enforceable by Lender, and that Lender is induced to enter into this transaction in material reliance upon the presumed full enforceability thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Reinstatement of Lien</u>. Lender's rights hereunder shall be reinstated and revived, and the enforceability of this Security Instrument shall continue, with respect to any amount at any time paid on account of any Obligation which Lender is thereafter required to restore or return in connection with a bankruptcy, insolvency, reorganization or similar proceeding with respect to any Person.

ARTICLE XI

CASH MANAGEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <u>Clearing Account</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the first occurrence of a Trigger Event Period, Borrower shall establish and thereafter during the term of the Loan maintain an account (the "**Clearing Account**") with a local bank selected by Borrower and approved by Lender (the "**Clearing Bank**") in trust for the benefit of Lender in accordance with an agreement among Borrower, Lender, Manager and the Clearing Bank in form and substance acceptable to Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time (the "**Clearing Account Agreement**"). The Clearing Account shall be under the sole dominion and control of Lender. Lender and its servicer shall have the sole right to make withdrawals from the Clearing Account. All costs and expenses for establishing and maintaining the Clearing Account shall be paid by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the occurrence and during the continuation of a Trigger Event Period, Borrower shall cause all Rents and Profits to be delivered directly to the Clearing Account. In accordance with the Clearing Account Agreement, Borrower shall, or shall cause Manager to, thereafter deliver irrevocable written instructions to all tenants under Leases to deliver all Rents and Profits payable thereunder directly to the Clearing Account. Notwithstanding anything to the contrary contained herein or in any other Loan Documents, in the event Borrower or Manager shall receive any amounts constituting Rents and Profits, Borrower shall, and shall cause Manager to, deposit all such amounts received by Borrower or Manager into the Clearing Account within one (1) Business Day after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Borrower shall obtain from Clearing Bank its agreement to transfer, from and after such time as the Clearing Bank has received a Cash Management Activation Notice (as hereinafter defined) and until such time as the Clearing Bank has received a Cash Management De-Activation Notice (as hereinafter defined), all amounts on deposit in the Clearing Account to the Cash Management Account (as hereinafter defined) in immediately available funds by federal wire transfer once every Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the occurrence and during the continuation of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any amounts then on deposit in the Clearing Account to the payment of the Obligations in any order, proportion and priority as Lender may determine in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Clearing Account shall not be commingled with other monies held by Borrower or Clearing Bank.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Borrower shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses (including attorneys' fees and expenses) arising from or in any way connected with the Clearing Account and/or the Clearing Account Agreement or the performance of the obligations for which the Clearing Account was established except to the extent caused by the gross negligence or willful misconduct of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes hereof,

&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 term "**Cash Management Activation Notice**" shall mean a written notice from Lender or its servicer to the Clearing Bank stating that a Trigger Event Period has commenced and instructing the Clearing Bank to transfer all available funds in the Clearing Account to the Cash Management Account in accordance with the Clearing Account 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;(ii) the term "**Cash Management Deactivation Notice**" shall mean a written notice from Lender or its servicer to the Clearing Bank stating that a Trigger Event Period no longer exists and instructing the Clearing Bank to transfer all available funds in the Clearing Account to an account designated by Borrower in accordance with the Clearing Account 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;(iii) the term "**Trigger Event Period**" shall mean any period (A) commencing on the occurrence of an Event of Default and (B) continuing until a cure of any and all Events of Default, which cure is accepted or waived in writing by Lender; <u>provided</u> that each cure of the Trigger Event Period set forth above shall be subject to the following conditions: (x) upon termination of any such Trigger Event Period, no other Trigger Event Period shall have occurred and remain outstanding, (y) Borrower shall have notified Lender in waiting of its election to end the applicable Trigger Event Period and (z) Borrower shall have paid all of Lender's reasonable costs and expenses incurred in connection with the cure of the applicable Trigger Event Period (including reasonable attorneys' fees and expenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <u>Cash Management Account</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the first occurrence of a Trigger Event Period, Borrower shall establish and maintain a segregated account (the "**Cash Management Account**") to be held by a bank selected by Lender (a "**Cash Management Bank**") in trust and for the benefit of Lender in accordance with the Cash Management Agreement. The Cash Management Account shall be under the sole dominion and control of Lender. Lender and its servicer shall have the sole right to make withdrawals from the Cash Management Account. All costs and expenses for establishing and maintaining the Cash Management Account shall be paid by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During a Trigger Event Period, all funds on deposit in the Cash Management Account shall be held by Lender as additional security for the Obligations. Lender shall cause all amounts remaining in the Cash Management Account upon the termination of the Trigger Event Period, including interest, to be released to Borrower within ten (10) business days of the termination of the Trigger Event Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary contained in this Security Instrument, the Note or the other Loan Documents, upon the occurrence and during the continuation of an Event of Default, Lender may, in addition to any and ail other rights and remedies available to Lender, apply any amounts then on deposit in the Cash Management Account to the payment of the Obligations in any order, proportion and priority as Lender may determine in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrower hereby agrees that Lender may modify the Cash Management Agreement for the purpose of establishing additional sub-accounts in connection with any payments otherwise required under this Security Instrument, the Note and the other Loan Documents, which sub-accounts may be ledger or book entry accounts and not actual accounts. All costs and expenses for establishing and maintaining such accounts shall be paid by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 <u>Payments Received Under Cash Management Agreement</u>. The insufficiency of funds on deposit in the Cash Management Account shall not relieve Borrower from the obligation to make any payments, as and when due pursuant to this Security Instrument, the Note and the other Loan Documents, and such obligation shall be separate and independent, and not conditioned on any event or circumstance whatsoever. Notwithstanding anything to the contrary contained in this Security Instrument, the Note or the other Loan Documents, and provided that no Event of Default shall have occurred and remain outstanding, Borrower's obligations with respect to the payment of the Monthly Payment Amount and amounts required to be deposited into the Reserve Funds, if any, shall be deemed satisfied to the extent sufficient amounts are deposited in the Cash Management Account to satisfy such obligations pursuant to the Cash Management Agreement on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender.

ARTICLE XII

SERVICER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <u>Servicer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the option of Lender, the Loan may be serviced by a servicer (together with its agents, nominees or designees, are collectively referred to herein as "Servicer") selected by Lender and Lender may delegate all or any portion of its responsibilities under this Security Agreement and the other Loan Documents to Servicer pursuant to a servicing agreement and/or other agreement providing for the servicing of one or more mortgage loans (collectively, the "**Servicing Agreement**") between Lender and Servicer. Borrower shall be responsible for (i) any reasonable set-up fees or any other initial costs and expenses relating to or arising under the Servicing Agreement in connection with the Loan, and (ii) any reasonable fees and expenses of Servicer (including, without limitation, reasonable attorneys' fees and disbursements) in connection with any release of the Property, any cash management duties or activities, any prepayment, defeasance, assumption, amendment or modification of the Loan, any documents or matters requested by Borrower, or work-out of the Loan or enforcement of the Loan Documents. Without limiting the generality of the foregoing, Servicer shall be entitled to reimbursement of reasonable costs and expenses as and to the same extent (but without duplication) as Lender is entitled thereto under this Security Agreement and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon notice thereof from Lender, Servicer shall have the right to exercise all rights of Lender and enforce all obligations of Borrower and Indemnitor pursuant to the provisions of this Security Agreement and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Provided Borrower shall have been given notice of Servicer's address by Lender, Borrower shall deliver, or cause to be delivered, to Servicer duplicate originals of all notices and other documents and instruments which Borrower or Indemnitor may or shall be required to deliver to Lender pursuant to this Security Agreement and the other Loan Documents (and no delivery of such notices or other documents and instruments by Borrower or Indemnitor shall be of any force or effect unless delivered to Lender and Servicer as provided above).

ARTICLE XIII

STATE SPECIFIC PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 <u>Principles of Construction</u>. In the event of any inconsistencies between the terms and conditions of this <u>Article XIII</u> and the other terms and conditions of this Security Instrument, the terms and conditions of this <u>Article XIII</u> shall control and be binding.

**[TEXT CONTINUED ON NEXT PAGE]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <u>Due on Sale/Encumbrance</u>. Borrower expressly agrees that upon a violation of Article V of this Security Instrument by Borrower and acceleration of the principal balance of the Note because of such violation, Borrower will pay all sums required to be paid in connection with a prepayment, if any, as described in the Note, herein imposed on prepayment after an Event of Default and acceleration of the principal balance. Borrower expressly acknowledges that Borrower has received adequate consideration for the foregoing agreement.

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| | | |
|:---|:---|:---|
| **BORROWER:** | **BORROWER:** | **BORROWER:** |
| **NAPA SQUARE OWNER NY LLC,** | **NAPA SQUARE OWNER NY LLC,** | **NAPA SQUARE OWNER NY LLC,** |
| a Delaware limited liability company | a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ Lawrence R. Botel | /s/ Lawrence R. Botel |
|  | Name: | Lawrence R. Botel |
|  | Title: | Authorized Signatory |

---

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| | | |
|:---|:---|:---|
| **ONE NAPA LLC,** | **ONE NAPA LLC,** | **ONE NAPA LLC,** |
| a Delaware limited liability company | a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ Pamela Sprayregen | /s/ Pamela Sprayregen |
|  | Name: | Pamela Sprayregen |
|  | Title: | Authorized Signatory |

---

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| | | |
|:---|:---|:---|
| **JNK NAPA SQUARE LLC,** | **JNK NAPA SQUARE LLC,** | **JNK NAPA SQUARE LLC,** |
| a Delaware limited liability company | a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ Lisa S. Karmin | /s/ Lisa S. Karmin |
|  | Name: | Lisa S. Karmin |
|  | Title: | Authorized Signatory |

---

**[TEXT CONTINUED ON NEXT PAGE]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 <u>Power of Sale</u>. Upon an Event of Default and acceleration of the Obligations, Lender, its successors and assigns, may elect to cause the Property or any part thereof to be sold as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lender may proceed as if all of the Property were real property, in accordance with <u>subparagraph (d)</u> below, or Lender may elect to treat any of the Property which consists of a right in action or which is property that can be severed from the Real Estate without causing structural damage thereto as if the same were personal property, and dispose of the same in accordance with <u>subparagraph (c)</u> below, separate and apart from the sale of real property, the remainder of the Property being treated as real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lender may cause any such sale or other disposition to be conducted immediately following the expiration of any grace period, if any, provided in the Loan Documents (or immediately upon the expiration of any redemption period required by Governmental Regulations) or Lender may delay any such sale or other disposition for such period of time as Lender deems to be in its best interest. Should Lender desire that more than one such sale or other disposition be conducted, Lender may at its option, in accordance with Governmental Regulations cause the same to be conducted simultaneously, or successively on the same day, or at such different days or times and in such order as Lender may deem to be in its best interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Should Lender elect to cause any of the Property to be disposed of as personal property as permitted by <u>subparagraph (a)</u> above, it may dispose of any part hereof in any manner now or hereafter permitted by Article 9 of the Uniform Commercial Code or in accordance with any other remedy provided by law. Both Borrower and Lender shall be eligible to purchase any part or all of such property at any such disposition. Any such disposition may be either public or private as Lender may so elect, subject to the provisions of the Uniform Commercial Code. Lender shall give Borrower at least ten (10) days' prior written notice of the time and place of any public sale or other disposition of such property or of the time at or after which any private sale or any other intended disposition is to be made, and if such notice is sent to Borrower as provided in <u>subparagraph (i)</u> hereof, it shall constitute reasonable notice to Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Should Lender elect to sell the Property which is real property or which Lender has elected to treat as real property, Lender shall notify Trustee and shall, if required, deposit with Trustee a copy of the Note, the original or a certified copy of this Security Instrument, and such other documents, receipts and evidences of expenditures made and secured hereby as Trustee may require, and Trustee shall give such notice of default and election to sell as may then be required by Governmental Regulations. Thereafter, upon the expiration of such time and the giving of such notice of sale as may then be required by Governmental Regulations, Trustee, at the time and place specified in the notice of sale, shall sell such Property, or any portion thereof specified by Lender, at public auction to the highest bidder for cash in lawful money of the United States, subject, however, to the provisions of <u>subparagraph (h)</u> hereof. Trustee for good cause may, and upon request of Lender shall, from time to time, postpone the sale by public announcement thereof at the time and place noticed therefor. If the Property consists of several lots or parcels, Lender may designate the order in which such lots or parcels shall be offered for sale or sold. Any person, including Borrower, Trustee or Lender, may purchase at the sale. Upon any sale Trustee shall execute and deliver to the purchaser or purchasers a deed or deeds conveying the property so sold, but without any covenant or warranty whatsoever, express or implied, whereupon such purchaser or purchasers shall be let into immediate possession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of a sale or other disposition of any such property, or any part thereof, and the execution of a deed or other conveyance, pursuant thereto, the recitals therein of facts, such as a default, the giving of notice of default and notice of sale, demand that such sale should be made, postponement of sale, terms of sale, sale, purchaser, payment of purchase money, and any other fact affecting the regularity or validity of such sale or disposition, shall be conclusive proof of the truth of such facts; and any such deed of conveyance shall be conclusive against all persons as to such facts recited therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Lender and/or Trustee shall apply the proceeds of any sale or disposition hereunder to payment of the following: (1) the expenses of such sale or disposition together with Trustee's fees and reasonable attorneys' fees, and the actual cost of publishing, recording, mailing and posting notice; (2) the cost of any search and/or other evidence of title procured in connection therewith and transfer tax on any deed or conveyance; (3) all sums expended under the terms hereof, not then repaid, with accrued interest in the amount provided herein; (4) all other sums secured hereby; and (5) the remainder if any to the person or persons legally entitled thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Borrower hereby expressly waives any right which it may have to direct the order in which any of the Property shall be sold in the event of any sale or sales pursuant hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Upon any sale of the Property, whether made under a power of sale herein granted or pursuant to judicial proceedings, if the holder of the Note is a purchaser at such sale, it shall be entitled to use and apply all or any portion of the indebtedness then secured hereby for or in settlement or payment of all or any portion of the purchase price of the property purchased, and, in such case, this Security Instrument, the Note and documents evidencing expenditures secured hereby shall be presented to the person conducting the sale in order that the amount of said indebtedness so used or applied may be credited thereon as having been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No remedy herein conferred upon or reserved to Trustee or Lender is intended to be exclusive of any other remedy herein or by law provided, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. Every power or remedy given by this instrument to Trustee or Lender, or to which either of them may be otherwise entitled, may be exercised from time to time and as often as may be deemed expedient by Trustee or Lender, and either of them may pursue inconsistent remedies. If there exists additional security for the performance of the obligations secured hereby, the holder of the Note, at its sole option and without limiting or affecting any rights or remedies hereunder, may exercise any of the rights and remedies to which it may be entitled hereunder either concurrently with whatever other rights it may have in connection with such other security or in such order as it may determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Borrower hereby requests that every notice of default and every notice of sale be given in accordance with the provisions of Section 9.5 hereof except as otherwise required by Governmental Regulations. Borrower may, from time to time, change the address to which notice of default and sale hereunder shall be sent by both filing a request therefor, in the manner provided by the California Civil Code, Section 2924b, and sending a copy of such request to Lender, its successors or assigns in accordance with the provisions of <u>Section 9.5</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 <u>Concerning the Trustee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Trustee is not obligated to notify any party hereto of pending sale under any other deed of trust or of any action or proceeding in which Borrower, Lender or Trustee shall be a party (other than with respect to this Security Instrument), unless brought by Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Trustee shall be entitled to reasonable compensation for all services rendered or expenses incurred in the administration or execution of the trusts hereby created and Borrower hereby agrees to pay same. Trustee shall be indemnified, held harmless and reimbursed by Borrower for any liability, damage or expense, including attorneys' fees and amounts paid in settlement, which it may incur or sustain in the execution of this trust or in the doing of any act which it is required or permitted to do by the terms hereof or by Governmental Regulations; provided, however, that Borrower shall not be liable under such indemnification to the extent such liability or expenses result from Trustee's negligence, willful misconduct, breach of its obligations under this Security Instrument or violation of Governmental Regulations.

ARTICLE XIV

CO-TENANCY PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <u>Joint and Several Liability</u>.

Notwithstanding anything to the contrary contained herein, the representations, warranties, covenants and agreements made by each Borrower herein, and the liability of each Borrower hereunder, are joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 <u>Waivers</u>.

Each Borrower hereby waives any and all rights of subrogation, reimbursement, contribution, indemnity or otherwise arising by contract or operation of law (including, without limitation, any lien rights) from or against any other Borrower until the Loan is paid in full and all Borrower's obligations under the Loan Documents are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 <u>Partition</u>.

Notwithstanding anything to the contrary contained herein, no Borrower shall bring an action for partition with respect to such Borrower's ownership interest in the Property or to compel any sale thereof. Each Borrower expressly waives any and all rights to partition the Property until the Loan is paid in full and all Borrower's obligations under the Loan Documents are satisfied. Each Borrower further expressly waives any and all rights to encumber any other Borrower's tenant-in-common interest in the Property except as expressly provided in <u>Article V</u> hereof until the Loan is paid in full and all Borrower's obligations under the Loan Documents are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4 <u>Tenancy in Common</u>.

Napa Square Owner NY LLC owns an undivided 25% interest in the Property, One Napa LLC owns an undivided 37.5% interest in the Property and JNK Napa Square LLC owns an undivided 37.5% interest in the Property, each as tenants in common.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5 <u>Notice of Default of Co-Tenancy Agreement</u>.

Borrower shall give prompt written notice to Lender of any default under the Co-Tenancy Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6 <u>Compliance with Co-Tenancy Agreement</u>.

Borrower hereby covenants and agrees to comply with all of the terms of the Co-Tenancy Agreement. Borrower hereby further covenants and agrees that it shall not amend, modify or terminate the Co-Tenancy Agreement without the prior written consent of Lender, which consent may be withheld in Lender's sole and absolute discretion. Any amendment, modification and/or termination of the Co-Tenancy Agreement without Lender's prior written consent shall be an Event of Default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7 <u>Ownership</u>.

Without limiting the generality of <u>‎Article V</u> hereof there shall never be more than three (3) tenants in common owning the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.8 <u>Designation of Manager</u>.

It is agreed by each Borrower that (i) Napa Square Owner NY LLC, a Delaware limited liability company ("**Napa Square Managing Member**"), at all times during the term of the Loan, shall act as the operating manager for the Property, (ii) Lawrence R. Botel is authorized to be the sole contact and notice party for Lender with respect to the Loan and shall act as each such Borrower's attorney-in-fact to receive all notices, including, without limitation, service of process for each such Borrower and (iii) Napa Square Managing Member shall keep all books and records pertaining to the Loan separate from any other property of any Borrower or Borrower Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.9 <u>Subordination</u>.

It is agreed by each Borrower that (i) any purchase rights or rights of first refusal in favor of any Borrower shall be subject and subordinate to the Security Instrument, (ii) any lien rights among each Borrower shall be subject and subordinate to the Security Instrument and (iii) all indemnities and other rights and remedies of each Borrower shall be subject and subordinate to the Security Instrument.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF,** Borrower has executed this Security Instrument as of the day and year first above written.

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| |
|:---|
| **NAPA** **SQUARE OWNER NY LLC,** |
| a Delaware limited liability company |

---

---

| | | |
|:---|:---|:---|
| By: | /s/ Lawrence R. Botel | /s/ Lawrence R. Botel |
|  | Name: | Lawrence R. Botel |
|  | Title: | Authorized Signatory |

---

---

| |
|:---|
| **ONE NAPA LLC,** |
| a Delaware limited liability company |

---

---

| | | |
|:---|:---|:---|
| By: | /s/ Pamela Sprayregen | /s/ Pamela Sprayregen |
|  | Name: | Pamela Sprayregen |
|  | Title: | Authorized Signatory |

---

---

| |
|:---|
| **JNK NAPA SQUARE LLC,** |
| a Delaware limited liability company |

---

---

| | | |
|:---|:---|:---|
| By: | /s/ Lisa S. Karmin | /s/ Lisa S. Karmin |
|  | Name: | Lisa S. Karmin |
|  | Title: | Authorized Signatory |

---

STATE OF NEW YORK) ) ss.: <br> COUNTY OF NEW YORK)

On the 2<sup>nd</sup> day of March, in the year 2016, before me, the undersigned, personally appeared Lawrence R. Botel, personally known to me or proved to me on the basis of satisfactory evidence to the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

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| |
|:---|
| /s/ Jonathan S. Margolis |
| Notary Public |
| My Commission Expires: Sept. 30, 2017 |

---

STATE OF NEW YORK) ) ss.: <br> COUNTY OF NEW YORK)

On the 2<sup>nd</sup> day of March, in the year 2016, before me, the undersigned, personally appeared Pamela Sprayregen, personally known to me or proved to me on the basis of satisfactory evidence to the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

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| |
|:---|
| /s/ Jonathan S. Margolis |
| Notary Public |
| My Commission Expires: Sept. 30, 2017 |

---

STATE OF NEW YORK) ) ss.: <br> COUNTY OF NEW YORK)

On the 1<sup>st</sup> day of March, in the year 2016, before me, the undersigned, personally appeared Lisa S. Karmin, personally known to me or proved to me on the basis of satisfactory evidence to the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

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| |
|:---|
| /s/ Jonathan S. Margolis |
| Notary Public |
| My Commission Expires: Sept. 30, 2017 |

---

## Exhibit 10.24

**Exhibit 10.24**

**<u>PROMISSORY NOTE</u>**

$22,300,000.00

Dated as of March 4, 2016

FOR VALUE RECEIVED, **NAPA SQUARE OWNER NY LLC,** a Delaware limited liability company, having its principal place of business at c/o JOSS Realty Partners LLC, 1345 Avenue of the Americas, 31st Floor, New York, New York 10105, **ONE NAPA LLC**, a Delaware limited liability company, having its principal place of business at 200 West 86th Street, #16J, New York, New York 10024 and **JNK NAPA SQUARE LLC**, a Delaware limited liability company, having its principal place of business at 9 Appeld Court, Hillsdale, New Jersey 07642 (individually and collectively, as the context may require, "**Borrower**"), promises to pay to the order of **INSURANCE STRATEGY FUNDING II, LLC,** a Delaware limited liability company, having an office at c/o JPMorgan Chase Bank, N.A., 270 Park Avenue, 9th Floor, New York, New York 10017 ("**Lender**"), or at such other place as may be designated in writing by the holder of this Note, in legal tender of the United States of America in immediately available funds, the principal sum of TWENTY-TWO MILLION THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($22,300,000.00) or so much thereof as shall at any time be outstanding (the "**Principal Amount**"), together with interest on the Principal Amount at the Applicable Interest Rate (as hereinafter defined).

1. **CERTAIN DEFINED TERMS** 

As used herein the following terms shall have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Accrual Period**" means the period commencing on the 1st day of a calendar month and ending on the last day of such calendar month; provided that if this Note is dated as of any date other than the first (1st) day of a month, the first Accrual Period shall (i) consist of only the date hereof, if the date hereof is the last day of a month, and (ii) otherwise commence on the date hereof and end on the last day of the calendar month in which this Note is executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Additional Costs**" shall have the meaning set forth in <u>Section ‎12(b)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Applicable Interest Rate**" shall mean, with respect to each Accrual Period, an interest rate per annum equal to 4.04%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Business Day**" shall mean any day, on which commercial banks are not authorized or required by law to close in New York, New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Collateral**" shall have the meaning set forth in Section 2.12(a) of the Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Default Rate**" shall mean a per annum interest rate equal to the lesser of (i) five percent (5%) per annum above the Applicable Interest Rate and (ii) the highest lawful rate of interest permitted under applicable law, whether or not an action against Borrower shall have been commenced, and if commenced, whether or not a judgment against Borrower shall have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Environmental Indemnity**" shall mean that certain Environmental Indemnity Agreement given by Borrower and Guarantor to Lender as of even date herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Event of Default**" shall have the meaning set forth in Section 6.1 of the Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Governmental Authority**" shall mean any national, state or local government (whether domestic or foreign), any political subdivision thereof or any other governmental, quasi governmental, judicial, administrative, public or statutory instrumentality, authority, body, agency, bureau, commission, board, department or other entity (including, without limitation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency or the Federal Reserve Board, any central bank or any comparable authority) or any arbitrator with authority to bind a party at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Guarantor**" shall mean, individually and collectively, as the context may require, Lawrence R. Botel, an individual, Lisa S. Karmin, an individual and Pamela Sprayregen, an individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Late Charge**" shall have the meaning assigned to such term in <u>Section ‎4</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Loan**" shall mean the indebtedness evidenced by this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Loan Documents**" shall mean this Note, the Security Instrument, and any other documents or instruments which now or shall hereafter wholly or partially evidence and/or secure payment of this Note or which have otherwise been executed by Borrower and/or any other Person in connection with the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Maturity Date**" shall mean the earliest to occur of (i) the Scheduled Maturity Date and (ii) the date this Note is accelerated and becomes due and payable pursuant to the terms of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Monthly Payment**" shall mean for each Monthly Payment Date, a payment equal to the amount of interest which has accrued during the preceding Accrual Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Monthly Payment Date**" shall mean the first day of each calendar month prior to the Maturity Date commencing on May 1, 2016 and continuing through and including the Scheduled Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Obligations**" shall have the meaning ascribed to such term in Section 1.1 of the Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Person**" means any natural person, corporation, limited partnership, general partnership, joint stock company, limited liability company, limited liability partnership, joint venture, association, company, trust, bank, trust company, land trust, business trust or other organization, whether or not a legal entity, or any nongovernmental entity or Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Prepayment Date**" shall mean the actual date of prepayment of the Loan to the extent permitted by, and in accordance with, the terms of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Prepayment Notice**" shall have the meaning set forth in <u>Section ‎6(a)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Prepayment Premium**" shall mean a prepayment consideration amount equal to:

&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) if the prepayment occurs prior to April 1, 2023, the Yield Maintenance Premium (defined below);

&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) if the prepayment occurs on or after April 1, 2023 and prior to April 1, 2024, three percent (3%) of the principal amount of the Loan being prepaid;

&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) if the prepayment occurs on or after April 1, 2024 and prior to April 1, 2025, two percent (2%) of the principal amount of the Loan being prepaid; 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) if the prepayment occurs on or after April 1, 2025, one percent (1%) of the principal amount of the Loan being prepaid.

The calculation of the Prepayment Premium shall be made by Lender in accordance with this Note in its sole and absolute discretion and shall, absent manifest error, be final, conclusive and binding upon Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Property**" shall mean certain real property located in Napa, California, as more particularly described in the Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Recourse Obligations of Borrower**" shall have the meaning assigned to such term in the Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Regulatory Change**" means, with respect to Lender, any change effective after the date hereof in any law, treaty, order, policy, rule or regulation (including without limitation, Regulation D of the Board of Governors of the Federal Reserve System) or in the administration, interpretation or application thereof or the adoption, making or issuance, after the date hereof, of any interpretation, directive, guideline or request (whether or not having the force of law and whether or not failure to comply therewith would be unlawful) applying to a class of banks, including Lender, of or under any applicable law by any Governmental Authority charged with the interpretation or administration thereof or compliance by Lender with any interpretation, directive, guideline or request regarding capital adequacy; provided that, notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder issued in connection therewith or in implementation thereof shall be deemed to be a "Regulatory Change", regardless of the date enacted, adopted, issued or implemented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Scheduled Maturity Date**" shall mean April 1, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Security Instrument**" shall mean the Deed of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement dated the date hereof in the principal amount of $22,300,000.00, given by Borrower, as trustor, to First American Title Insurance Company, as trustee, for the benefit of Lender, as beneficiary, covering the fee estate of Borrower in the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Taxes**" shall mean any present or future excise, stamp or other taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding (i) franchise taxes, (ii) any taxes (other than withholding taxes) that would not be imposed but for a connection between Lender and the jurisdiction imposing such taxes (other than a connection arising solely by virtue of the activities of Lender in connection with the Loan), (iii) any taxes imposed on or measured by any of Lender's assets, net income, net receipts or branch profits and (iv) any taxes, unless such taxes result solely from (A) a change in any applicable law, treaty, governmental rule, regulation, guideline or order, or in the interpretation thereof, occurring after the date hereof, with respect to the Lender hereunder, or, (B) in the case of an assignment or transfer of this Note or a designation of a new lending office of Lender, to the extent such taxes are imposed at a rate that does not exceed the rate in respect of those taxes for which the assignor or transferor Lender, or Lender in respect of its prior lending office, as the case may be, was entitled to additional amounts from Borrower pursuant to Section ‎11 of this Note under the laws in effect immediately prior to the assignment or transfer of this Note or such designation of a new lending office, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Treasury Yield**" shall mean a yield determined by Lender by reference to the most recent Federal Reserve Statistical Release H.15 (519) (or any successor or substitute publication of the Federal Reserve Board) that has become publicly available at least two (2) Business Days prior to the Prepayment Date, and shall be the most recent weekly average yield to maturity (expressed as a rate per annum) under the caption "Treasury Constant Maturities" for the year corresponding to the remaining average life of the Loan, as determined by Lender, through the ninetieth (90<sup>th</sup>) day preceding the Scheduled Maturity Date had this Note not been prepaid, converted to a mortgage equivalent yield, plus 50 basis points. If no such "Treasury Constant Maturities" shall exactly correspond to such remaining average life of the Loan, as determined by Lender, yields for the two most closely corresponding published "Treasury Constant Maturities" shall be used to interpolate a single yield on a straight-line basis (rounding, in the case of relevant periods, to the nearest month). The Treasury Yield shall be computed to the fifth decimal place and then rounded to the fourth decimal point.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Yield Maintenance Premium**" shall mean a prepayment consideration amount equal to the greater of (x) 1% of the Principal Amount and (y) an amount, not less than zero, equal to the amount by which the sum of the respective present values of each of the remaining scheduled payments of principal and interest (including any final payment of the Principal Amount) which would have been payable under this Note through and including the ninetieth (90<sup>th</sup>) day preceding the Scheduled Maturity Date had this Note not been prepaid <u>exceeds</u> the then outstanding Principal Amount of this Note on the date immediately prior to such Prepayment Date. Present values shall be computed by lender in accordance with its customary accounting practices using a discount rate equal to the Treasury Yield (as hereinafter defined) for the remaining average life of the Loan, as determined by Lender, through the ninetieth (90<sup>th</sup>) day preceding the Scheduled Maturity Date had the Loan not been prepaid.

2. **PAYMENT TERMS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Principal Amount shall be paid by Borrower to Lender together with interest at the Applicable Interest Rate, subject to the provisions of <u>Section ‎6</u> of this Note, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If this Note is dated as of a date other than the first (1st) day of a calendar month, a payment shall be due from Borrower to Lender on the date hereof on account of all interest, at the Applicable Interest Rate, scheduled to accrue on the Principal Amount from and after the date hereof through and including the last day of the current Accrual Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) On each Monthly Payment Date, Borrower shall make the Monthly Payment to Lender. Each Monthly Payment shall be applied first to interest accrued during the Accrual Period immediately preceding the Monthly Payment Date and then to the Principal Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The remaining balance of the Principal Amount, all accrued interest, and all other portions of the Obligations remaining unpaid on the Scheduled Maturity Date shall be due and payable on the Scheduled Maturity Date (unless accelerated by Lender or prepaid in accordance with the provisions of Section ‎6 of this Note, in which case the aforesaid sums described in this clause (3) shall be payable on the Maturity Date or the Prepayment Date, as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Interest on the Principal Amount (whether at the Applicable Interest Rate or the Default Rate) shall be calculated on the basis of a three hundred sixty (360) day year, based on twelve (12) thirty (30) day months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All payments, whether of principal, interest or otherwise, due hereunder and under any of the Loan Documents shall be paid by wire transfer of immediately available federal funds to the following account of Lender, unless otherwise directed by Lender in writing:

Wells Fargo Bank, N.A.

San Francisco, California

ABA#: 121000248

Account#: 4055592489

Account Name: Insurance Strategy Funding II LLC

Any wire transfer received by Lender after 4:00 p.m. New York City time shall be deemed received on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless payments are made in the required amount in immediately available funds at the place where this Note is payable, remittances in payment of all or any part of the Obligations shall not, regardless of any receipt or credit issued therefor, constitute payment until the required amount is actually received by Lender in funds immediately available at the place where this Note is payable (or any other place as Lender, in Lender's sole discretion, may have established by delivery of written notice thereof to Borrower) and shall be made and accepted subject to the condition that any check or draft may be handled for collection in accordance with the practice of the collecting bank or banks.

3. **DEFAULT AND ACCELERATION** 

If any payment required in this Note is not paid on the date when due or on the happening of any other Event of Default, (a) the whole of the Principal Amount, (b) interest, including interest at the Default Rate, Late Charges and other sums, as provided in this Note, the Security Instrument or the other Loan Documents, (c) all other monies agreed or provided to be paid by Borrower in this Note, the Security Instrument or the other Loan Documents, (d) all sums advanced pursuant to the Security Instrument to protect and preserve the Property and the lien and the security interest created thereby, and (e) all sums advanced and costs and expenses incurred by Lender in connection with the administration or enforcement of the Loan Documents or the Obligations or any part thereof, any renewal, extension or change of or substitution for the Obligations or any part thereof, or the acquisition or perfection of the security therefor, whether made or incurred at the request of Borrower or Lender shall without notice become immediately due and payable at the option of Lender.

4. **LATE CHARGE** 

In the event that any payment provided for herein (other than the payment of the outstanding Principal Amount due and payable on the Maturity Date) shall become overdue for a period of five (5) calendar days or more, a late charge equal to the lesser of (x) five cents (.05¢) for each dollar of the amount so overdue and (y) the maximum amount permitted by applicable law (the "**Late Charge**") shall become immediately due to Lender as liquidated damages, and not as a penalty, and as a reasonable estimate of Lender's additional administrative expenses, the exact amount of which would be impossible to ascertain, and such sum shall, until paid, be part of the Obligations secured by the Security Instrument and the other Loan Documents. Application of the Late Charge shall not be construed as a consent by Lender to an extension of time for any payment, as a waiver of any default that may be related to such or any other overdue payment or of any other default or as a waiver of any other right or remedy of Lender hereunder, at law or in equity.

5. **DEFAULT RATE APPLIED UPON NON-PAYMENT** 

In the event that any payment due hereunder is not paid in full when due or the Obligations are not paid in full on the Maturity Date, or such earlier date as the Obligations may become due hereunder, the entire Principal Amount and all of the Obligations (including, to the extent permitted by applicable law, any portion thereof which constitutes accrued and unpaid interest, but excluding any accrued but unpaid Late Charges), shall accrue interest until all payments past due hereunder are fully paid at a rate of interest equal to the Default Rate.

6. **PREPAYMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Provided no Event of Default exists, the Loan may be prepaid, in whole, but not in part, upon: (i) not less than thirty (30) days' prior written notice to Lender specifying the Business Day on which prepayment is to be made, which notice shah be irrevocable once given (the "**Prepayment Notice**"); (ii) payment of the Principal Amount and all accrued and unpaid interest on the Principal Amount of this Note to and including the day immediately prior to the Prepayment Date; (iii) payment of all other sums then due under this Note, the Security Instrument and the other Loan Documents; and (iv) if the Prepayment Date occurs prior to the one hundred-eightieth (180<sup>th</sup>) day preceding the Scheduled Maturity Date, payment of the applicable Prepayment Premium. Lender shall not be obligated to accept any prepayment of the Loan unless it is accompanied by all sums due in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower hereby acknowledges that Lender would not make the Loan without full and complete assurance by Borrower of its agreement to pay the Monthly Payments as hereinabove provided, and Borrower's further agreement not to prepay all or any part of the Principal Amount prior to the Scheduled Maturity Date, except on the terms expressly set forth in this Note. In consideration of the foregoing, if, as a result of an Event of Default hereunder or under the Security Instrument or any of the other Loan Documents, Lender shall declare the Loan due and payable, in whole or in part, in accordance with Lender's rights under this Note or any of the other Loan Documents, then Borrower shall pay to Lender on the date of such acceleration, in addition to all other amounts due Lender, an amount equal to the Prepayment Premium. Except as expressly set forth in this Note, Borrower hereby waives any rights Borrower may have to prepay the Loan without charge and agrees to pay the Prepayment Premium upon any prepayment of the Loan prior to the Scheduled Maturity Date, whether voluntary, pursuant to any such acceleration or otherwise. Borrower hereby acknowledges that if such acceleration shall result from an Event of Default, it shall be presumed, for purposes of imposing the Prepayment Premium, and conclusively deemed to be a willful and deliberate attempt by Borrower to avoid the payment of the Prepayment Premium or the limitations on prepayment herein contained and the Prepayment Premium shall constitute liquidated damages, and not a penalty, as a reasonable estimate of Lender's loss (the exact amount of which damages would be impossible to ascertain) as a consequence of the breach of the Borrower's covenant not to prepay the Principal Amount and other Obligations, other than as specifically permitted herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any such Prepayment Premium (whether voluntary, pursuant to any acceleration or otherwise) shall constitute a portion of the Loan and the Obligations evidenced hereby and secured by the Security Instrument or the other Loan Documents. Nothing herein shall constitute a waiver by Lender of any right it may have to specifically enforce the terms of repayment of the Loan and the Obligations set forth herein, in the Security Instrument and in the other Loan Documents. The foregoing provisions shall be deemed to apply, without limitation, to any prepayment of the Loan prior to the Scheduled Maturity Date in connection with (i) any reinstatement of any or all of the Loan Documents under any foreclosure proceedings, (ii) any right of redemption, or (iii) the consummation of any foreclosure sale, whether or not such prepayment is made by or on behalf of Borrower or otherwise and whether or not any such prepayment is made pursuant to rights granted at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, provided no Event of Default shall have occurred and be continuing hereunder, no Prepayment Premium shall be due in connection with any prepayment (i) resulting from the application of casualty or condemnation proceeds to the Loan in accordance with the terms of the Security Instrument, or (ii) made during the last one hundred and eighty (180) days prior to the Scheduled Maturity Date.

7. **SETOFF** 

Upon the occurrence and during the continuance of an Event of Default under the terms of this Note, the Security Instrument or any of the Loan Documents, Lender is hereby authorized at any time or from time to time without notice to Borrower or to any other Person, any such notice being hereby expressly waived, to immediately set off and appropriate and apply any and all deposits (general or special) provided for in the Note, the Security Instrument or the other Loan Documents and any other indebtedness at any time held or owing by Lender to or for the credit or the account of Borrower against and on account of the Obligations.

8. **EXCULPATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained herein, Borrower shall be personally liable to Lender for the Recourse Obligations of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing herein shall be deemed to be a waiver of any right which Lender may have under Sections 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Obligations or to require that all Collateral shall continue to secure all of the Obligations owing to Lender in accordance with this Note, the Security Instrument and the other Loan Documents.

9. **WAIVERS** 

Except as otherwise expressly provided herein and in the other Loan Documents, Borrower and all others who may become liable for the payment of all or any part of the Obligations do hereby severally waive presentment and demand for payment, notice of dishonor, protest and notice of protest and non-payment and all other notices of any kind. No release of any security for the Obligations 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 Security Instrument or the other Loan Documents made by agreement between Lender or any other Person or party shall release, modify, amend, waive, extend, change, discharge, terminate or affect the liability of Borrower, and any other Person who may become liable for the payment of all or any part of the Obligations, under this Note, the Security Instrument 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 Security Instrument or the other Loan Documents. In addition, acceptance by Lender of any payment in an amount less than the amount then due shall be deemed an acceptance on account only, and the failure to pay the entire amount then due shall be and continue to be an Event of Default. If Borrower is a partnership, the agreements herein contained shall remain in force and applicable, notwithstanding any changes in the individuals comprising the partnership, and the term "Borrower," as used herein, shall include any alternate or successor partnership, but any predecessor partnership and their partners shall not thereby be released from any liability. If Borrower is a corporation or limited liability company, the agreements contained herein shall remain in full force and applicable notwithstanding any changes in the shareholders or members comprising, or the officers and directors or managers relating to, the corporation or limited liability company, and the term "Borrower" as used herein, shall include any alternative or successor corporation or limited liability company, but any predecessor corporation or limited liability company 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 a partnership, corporation or limited liability company, which may be set forth in the Security Instrument or any other Loan Document.)

10. **TRANSFER** 

Upon the transfer of this Note, Borrower hereby waiving notice of any such transfer, Lender may deliver all the Collateral mortgaged, conveyed, granted, pledged or assigned pursuant to the Security Instrument and the other Loan Documents, or any part thereof, to the transferee, who shall thereupon assume all obligations of Lender hereunder and thereunder and become "Lender" hereunder and be 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.

11. **TAXES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by Borrower of principal of, and interest on, the Loan and all other Obligations shall be made free and clear of and without deduction for Taxes. If any withholding or deduction from any payment to be made by Borrower hereunder is required in respect of any Taxes pursuant to any applicable law, then Borrower will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) pay directly to the relevant Governmental Authority the full amount required to be so withheld or deducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) promptly forward Lender an official receipt or other documentation satisfactory to Lender evidencing such payment to such Governmental Authority; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) pay to Lender for its account, such additional amount or amounts as is necessary to ensure that the net amount actually received by Lender will equal the full amount that Lender would have received had no such withholding or deduction been required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Borrower fails to pay any Taxes when due to the appropriate Governmental Authority or fails to remit to Lender for its account the required receipts or other required documentary evidence, Borrower shall indemnify Lender for any incremental Taxes, interest or penalties that may become payable by Lender as a result of any such failure.

12. **ADDITIONAL COSTS; CAPITAL ADEQUACY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Lender determines that compliance with any law or regulation or with any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law) affects or would affect the amount of capital required or expected to be maintained by Lender, or any corporation controlling Lender, as a consequence of, or with reference to, Lender's or such corporation's commitment hereunder or its making or maintaining of the Loan below the rate which Lender or such corporation controlling Lender could have achieved but for such compliance (taking into account the policies of Lender or such corporation with regard to capital), then Borrower shall, from time to time, within thirty (30) calendar days after written demand by Lender, pay to Lender additional amounts sufficient to compensate Lender or such corporation controlling Lender to the extent that Lender determines such increase in capital is allocable to Lender's obligations hereunder, provided that such amounts shall be no greater than the amounts that Lender or such corporation controlling Lender, as the case may be, is generally charging other borrowers on loans similarly situated to the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to, and not in limitation of the immediately preceding clause ‎(a), Borrower shall promptly pay to Lender from time to time such amounts as Lender may reasonably determine to be necessary to compensate Lender for any costs incurred by Lender that it determines are attributable to its maintaining of the Loan hereunder, any reduction in any amount receivable by Lender under this Note or any of the other Loan Documents in respect of the Loan or such obligation or the maintenance by Lender of capital in respect of the Loan or its commitments hereunder (such increases in costs and reductions in amounts receivable being herein called "**Additional Costs**"), resulting from any Regulatory Change 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;(i) changes the basis of taxation of any amounts payable to Lender under this Note or any of the other Loan Documents in respect of the Loan or its commitments hereunder (other than taxes imposed on or measured by the overall net income of Lender or of its lending office for the Loan by the jurisdiction in which Lender has its principal office or such lending office);

&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) imposes or modifies any reserve, special deposit or similar requirements (including without limitation, Regulation D of the Board of Governors of the Federal Reserve System or other similar reserve requirement applicable to any other category of liabilities or category of extensions of credit or other assets by reference to which the interest rate on the Loan is determined) relating to any extensions of credit or other assets of, or any deposits with or other liabilities of, or other credit extended by, or any other acquisition of funds by Lender (or its parent corporation), or any commitment of Lender hereunder; 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;(iii) has or would have the effect of reducing the rate of return on capital of Lender to a level below that which Lender could have achieved but for such Regulatory Change (taking into consideration Lender's policies with respect to capital adequacy).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lender agrees to notify Borrower of any event occurring after the date hereof entitling Lender to compensation under any of the preceding subsections of this <u>Section ‎12</u> as promptly as practicable; provided, however, that the failure of Lender to give such notice shall not release Borrower from any of its obligations hereunder; provided further, that Borrower shall not be responsible for any such compensation incurred more than ninety (90) days prior to the date that Lender notifies Borrower of the event giving rise to such increased costs. Lender agrees to furnish to Borrower a certificate setting forth the basis and amount of each request for compensation under this <u>Section ‎12</u>. Determinations by Lender of the effect of any Regulatory Change shall be conclusive and binding for all purposes, absent manifest error.

13. **MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Note is subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the principal balance due hereunder at a rate which could subject Lender to either civil or criminal liability as a result of being in excess of the maximum interest rate which Borrower is permitted by applicable law to contract or agree to pay. If by the terms of this Note Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of such maximum rate, the Applicable Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction of principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance or detention of the Obligations shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full stated term of the Note until payment in full so that the rate or amount of interest on account of the Obligations does not exceed the maximum lawful rate of interest from time to time in effect and applicable to the Obligations for so long as the Obligations are outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each and every right, remedy and power hereby granted to Lender or allowed it by law or other agreement shall be cumulative and not exclusive and may be exercised by Lender from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any payment on this Note becomes due and payable on a day that is not a Business Day, the maturity thereof shall, unless otherwise provided herein, be extended to the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrower hereby agrees to pay all costs of collection when incurred, including attorneys' fees and expenses (which costs may be added to the amount due under this Note and shall be paid promptly upon demand with interest thereon at the Default Rate) and to perform and comply with each of the terms, covenants and provisions contained in this Note, the Security Instrument or any of the other Loan Documents on the part of Borrower to be observed or performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event that any provision of this Note or the application thereof to Borrower shall, to any extent, be invalid or unenforceable under any applicable statute, regulation, or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute, regulation or rule of law, and the remainder of this Note and the application of any such invalid or unenforceable provision to parties, jurisdictions, or circumstances other than to whom or to which it shall be held invalid or unenforceable, shall not be affected thereby nor shall same affect the validity or enforceability of any other provision of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The headings in this Note are for the convenience of reference only, are not to be considered a part hereof and shall not limit or otherwise affect any of the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Note may not be changed, modified, waived or discharged orally, but only by an agreement in writing executed by the party against whom enforcement of such change, modification, waiver or discharge is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Whenever used in this Note, the singular number shall include the plural, the plural the singular, and the terms "Borrower" and "Lender" shall include their respective successors and assigns; provided, however, that Borrower shall in no event or under any circumstances have the right, without obtaining the prior written consent of Lender (which may be granted or withheld in the sole and absolute discretion of Lender), to assign or transfer its obligations under this Note, the Security Instrument or the other Loan Documents, in whole or in part, to any other person, party or entity, except as may be otherwise expressly provided to the contrary herein or in the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any notice, demand, consent, approval, direction, waiver, agreement or other communication required or permitted hereunder shall be delivered in accordance with the requirements of Section 9.5 of the Security Instrument.

14. **CROSS DEFAULT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An Event of Default under the Security Instrument or any of the other Loan Documents delivered in connection with this Note, shall, at Lender's option, constitute an Event of Default under this Note, the Security Instrument and/or the Loan Documents or otherwise at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Security Instrument and, except as otherwise expressly provided in the Environmental Indemnity, each of the other Loan Documents shall also secure the obligations of Borrower under this Note and the other Loan Documents and shall be for the benefit of Lender, the holder of this Note and their respective successors and assigns.

15. **APPLICABLE LAW; CONSENT TO JURISDICTION; NO JURY** 

**BORROWER AND LENDER HEREBY AGREE THAT THIS NOTE SHALL BE INTERPRETED, CONSTRUED, GOVERNED AND ENFORCED ACCORDING TO THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OF CHOICE OF LAW OR CONFLICTS OF LAW THAT WOULD DEFER TO THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION, PROVIDED THAT AT ALL TIMES THE PROVISIONS FOR CREATION, PERFECTION AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS WITH RESPECT TO THE PROPERTY CREATED PURSUANT TO THE SECURITY INSTRUMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, IT BEING UNDERSTOOD THAT BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK AND/OR THE STATE OF CALIFORNIA, AS AFORESAID, SHALL GOVERN THIS NOTE OR THE OTHER LOAN DOCUMENTS. BORROWER HEREBY IRREVOCABLY (A) SUBMITS IN ANY LEGAL PROCEEDING RELATING TO THIS NOTE OR THE SECURITY INSTRUMENT TO THE NON-EXCLUSIVE IN PERSONAM JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION SITTING IN THE STATE OF NEW YORK, COUNTY OF NEW YORK, IN CONNECTION WITH ANY MATTER GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK, AND AGREES TO SUIT BEING BROUGHT IN SUCH COURT AS LENDER MAY ELECT; (B) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF SUCH PROCEEDING IN ANY SUCH COURT OR THAT SUCH PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM; (C) AGREES TO SERVICE OF PROCESS IN ANY LEGAL PROCEEDING BY MAILING OF COPIES**

**THEREOF (BY REGISTERED OR CERTIFIED MAIL, IF PRACTICABLE) POSTAGE PREPAID, OR BY FACSIMILE COPY, TO ITS ADDRESS SET FORTH IN SECTION 9.5 OF THE SECURITY INSTRUMENT OR SUCH OTHER ADDRESS OF WHICH LENDER SHALL HAVE BEEN NOTIFIED IN WRITING IN ACCORDANCE WITH THE PROVISIONS OF SUCH SECTION 9.5 OF THE SECURITY INSTRUMENT; AND (D) AGREES THAT NOTHING HEREIN SHALL AFFECT LENDER'S RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, AND THAT LENDER SHALL HAVE THE RIGHT TO BRING ANY LEGAL PROCEEDINGS (INCLUDING A PROCEEDING FOR THE ENFORCEMENT OF A JUDGMENT ENTERED BY ANY OF THE AFOREMENTIONED COURTS) AGAINST BORROWER IN ANY OTHER COURT OR JURISDICTION IN ACCORDANCE WITH APPLICABLE LAW.**

**BORROWER AND LENDER EACH HEREBY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE LOAN EVIDENCED HEREBY OR ANY OF THE LOAN DOCUMENTS. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY BORROWER AND LENDER, AND BORROWER ACKNOWLEDGES THAT NEITHER LENDER, NOR ANY PERSON ACTING ON BEHALF OF LENDER, HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. BORROWER FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS NOTE AND THE OTHER LOAN DOCUMENTS AND THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL SELECTED BY BORROWER OF ITS OWN FREE WILL AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH SUCH COUNSEL. BORROWER FURTHER ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER AND THAT ITS EXECUTION OF THIS NOTE SHALL CONSTITUTE CONCLUSIVE EVIDENCE OF THE FOREGOING. BORROWER SHALL NOT SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THE PROVISIONS OF THIS <u>SECTION ‎15</u> SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY LENDER EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY LENDER.**

16. **LIABILITY** 

If Borrower consists of more than one Person, the obligations and liabilities of each such Person shall be joint and several.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF**, the undersigned Borrower has executed this Note as of the date first set forth above.

---

| | | |
|:---|:---|:---|
| **BORROWER:** | **BORROWER:** | **BORROWER:** |
| **NAPA SQUARE OWNER NY LLC,**<br>a Delaware limited liability company | **NAPA SQUARE OWNER NY LLC,**<br>a Delaware limited liability company | **NAPA SQUARE OWNER NY LLC,**<br>a Delaware limited liability company |
| By: | /s/ Lawrence R. Botel | /s/ Lawrence R. Botel |
|  | Name: | Lawrence R. Botel |
|  | Title: | Authorized Signatory |

---

---

| | | |
|:---|:---|:---|
| **ONE NAPA LLC,**<br>a Delaware limited liability company | **ONE NAPA LLC,**<br>a Delaware limited liability company | **ONE NAPA LLC,**<br>a Delaware limited liability company |
| By: | /s/ Pamela Sprayregen | /s/ Pamela Sprayregen |
|  | Name: | Pamela Sprayregen |
|  | Title: | Authorized Signatory |

---

---

| | | |
|:---|:---|:---|
| **JNK NAPA SQUARE LLC,**<br>a Delaware limited liability company | **JNK NAPA SQUARE LLC,**<br>a Delaware limited liability company | **JNK NAPA SQUARE LLC,**<br>a Delaware limited liability company |
| By: | /s/ Lisa S. Karmin | /s/ Lisa S. Karmin |
|  | Name: | Lisa S. Karmin |
|  | Title: | Authorized Signatory |

---

## Exhibit 10.25

**Exhibit 10.25**

**TENANCY IN COMMON AGREEMENT**

**OF**

**935,955 FRANKLIN STREET, 952,960 SCHOOL STREET AND**

**1401, 1425, 1455, 1463, 1465, 1485 FIRST STREET, NAPA, CA**

TENANCY IN COMMON AGREEMENT, dated as of March 4, 2016 (the "<u>Agreement</u>"), among Napa Square Owner NY LLC, a Delaware limited liability company ("<u>Napa Square Owner</u>"), One Napa LLC, a Delaware limited liability company ("<u>One Napa</u>") and JNK Napa Square LLC, a Delaware limited liability company ("<u>JNK LLC</u>"), all of which are referred to collectively as the "<u>Tenants in Common</u>" or individually as a "<u>Tenant in Common</u>".

WHEREAS, each of the Tenants in Common will become the owner of an interest in those certain parcels of real property set forth on <u>Schedule A</u> attached hereto, together with the improvements thereon (collectively, the "<u>Property</u>"). The Tenants in Common shall hold title to the Property as tenants in common, each Tenant in Common owning the percentage interest in the Property set forth next to its name on <u>Schedule B</u> attached hereto. The Property includes the fixtures and items of tangible and intangible property (other than personal property belonging to lessees at the Property) used in connection with or located at the Property, and all leases, licenses and occupancy agreements with respect to space at the Property.

WHEREAS, the Tenants in Common desire to set forth their agreement with respect to the ownership, management, operation, and disposition of their respective interests in the Property as tenants in common,

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

**<u>ARTICLE I</u>** <br>**The Tenancy in Common**

Section 1.01. <u>The TIC and TIC Interests</u>. Title to the Property is recorded in the name of the Tenants in Common, with each Tenant in Common owning the percentage undivided interest in the Property set forth next to its name on <u>Schedule B</u> (each such tenancy in common interest being referred to herein as a "<u>TIC Interest</u>" and all of the TIC Interests being referred to jointly as the "<u>TIC</u>").

Section 1.02. <u>Principal Office</u>. The principal office of the TIC shall be located at c/o Joss Realty Partners LLC, 1345 Avenue of the Americas, 31<sup>st</sup> Floor, New York, New York 10105, The Tenants in Common may designate such other or additional offices as may be necessary or appropriate for the purpose of carrying out the business of the TIC.

Section 1.03. <u>Tax Status</u>. This Agreement is intended to create a relationship among the Tenants in Common which shall be treated as a tenancy in common for Federal income tax purposes with respect to co-ownership of real property in an arrangement classified under the laws of the State of California as a tenancy in common. Each of the Tenants in Common agrees that if, despite their agreement to the contrary set forth herein, they should be deemed by a taxing authority to be participants in a business entity taxable as a partnership, then it is their intent that their co-ownership of the Property and the relationship among the Tenants in Common shall be excluded from Subchapter K of the Internal Revenue Code of 1986, as amended (the "<u>'Code</u>"), pursuant to Treasury Regulation Section 1.761-2(b)(2)(ii) beginning with the first taxable year under this Agreement. Each Tenant in Common acknowledges that this election is a deemed election and that no filing to this effect will be made to the Internal Revenue Service or any other taxing authority. The Tenants in Common agree that this election will be binding at all times that this Agreement is in effect and at no time after the execution of this Agreement will any Tenant in Common take any action inconsistent with this deemed election, including, but not limited to, any notification to the Internal Revenue Service pursuant to Treasury Regulation Section 1.761-2(b)(3).

Section 1.04. <u>No Treatment of TIC as an Entity</u>. It is the intent and purpose of the Tenants in Common that their relationship should be that of co-owners of the Property. The TIC will not file a partnership or corporate tax return, conduct business under a common name, execute an agreement identifying any or all of the Tenants in Common as partners, shareholders, or members of a business entity, or otherwise hold itself out as a partnership or other form of business entity, and the Tenants in Common will not hold themselves out as partners, shareholders, or members of a business entity.

Section 1.05. <u>Number of Tenants in Common</u>. The number of tenants in common will at all times be limited to no more than 35 "persons", as that term is defined in Section 7701(a)(1) of the Code, except that a husband and wife are treated as a single person and all persons who acquire interests from a Tenant in Common by inheritance are treated as a single person.

Section 1.06. <u>Purpose</u>. The Tenants in Common enter into this Agreement and agree to the terms, conditions and provisions hereof solely for the purpose of regulating their ownership, use, operation, maintenance, leasing, financing, and disposition of the Property. The activities of the Tenants in Common will be limited to those activities customarily performed in connection with the ownership, use, operation, maintenance, leasing, financing, and disposition of improved real property.

**<u>ARTICLE II</u>** <br>**Capital**

Section 2.01. <u>Initial Capital</u>. Prior to or concurrently with its execution of this Agreement, each of the Tenants in Common has provided capital to the TIC in the amount set forth next to its name on <u>Schedule B</u> (the "<u>Initial Capital"</u>).

Section 2.02. <u>Additional Capital</u>. If the Tenants in Common pursuant to a Unanimous Action (as defined in ‎Section 4.02), determine that additional funds are required to pay costs of the Property, the additional funds ("<u>Additional Capital</u>") shall be contributed by the Tenants in Common in proportion to their TIC Interests. As used above, the term "costs of the Property"' shall include, without limitation, the cash portion of the purchase price of the Property, all expenses of closing the purchase of the Property, principal and interest payments on loans for the Property, whether or not secured by mortgages on the Property, costs of repairs, maintenance, replacements and improvements (including capital expenditures), insurance premiums, real estate taxes, assessments, and other governmental charges, professional fees including but not limited to any applicable real estate or leasing brokerage fees, costs of marketing space in the Property, costs of tenant improvements, and all other costs and expenses of the Property whether operating or capital in nature.

**<u>ARTICLE III</u>** <br>**Allocations of Profits and Losses; Distributions**

Section 3.01. <u>Allocations of Profits and Losses</u>. All profits and losses, and each item of revenue, gain, expense, loss, deduction and credit, arising with respect to the Property, shall be shared by the Tenants in Common in proportion to their respective TIC Interests in effect on the date such item arises.

Section 3.02. <u>Distributions</u>. All distributions with respect to the Property shall be made to the Tenants in Common in proportion to their respective TIC Interests in effect on the date of distribution.

**<u>ARTICLE IV</u>** <br>**Management**

Section 4.01. <u>Actions by Simple Majority Action</u>. Except for Unanimous Actions as provided in ‎Section 4.02, all actions to be undertaken in connection with the Property shall require the approval, consent or other action by Tenants in Common holding a majority or more of the TIC Interests (a "<u>Simple Majority Action</u>").

Section 4.02. <u>Unanimous Actions</u>. The following actions shall require the approval, consent or other action by all of the Tenants in Common, i.e. those holding one hundred percent (100%) of the TIC Interests (a "<u>Unanimous Action</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;(a) a call for Additional Capital pursuant to ‎Section 2.02;

&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) subject to the provisions of ‎Section 4.03, the payment of any fees or commissions to any Tenant in Common or its affiliates for services rendered or otherwise in connection with the operation, management, leasing, financing or ownership of the 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) any other action that is a Unanimous Action pursuant to any other provision of 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;(d) subject to the provisions of ‎Section 4.03, the approval of the hiring of any manager for the Property, or the negotiation or any management contract or any extension or renewal of such contract;

&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) the sale, transfer, exchange or other disposition of a portion or all of the 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;(f) any lease or re-leasing of a portion or all of the Property; 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;(g) the borrowing of any money, including without limitation the negotiation or renegotiation or indebtedness secured by a lien on a portion or all of the Property, the creation of a lien on a portion or all of the Property, and the modification or amendment in any material respect of any instrument or document evidencing or securing any financing secured by a lien on the Property.

Section 4.03. <u>Property Management</u>. The Tenants in Common agree to hire a property manager ("<u>Property Manager</u>") and enter into a Property Management Agreement with such Property Manager to be agreed upon by all of the Tenants in Common (the "<u>Property Management Agreement</u>"), pursuant to which the Property Manager shall manage the Property during the term of the Property Management Agreement, the initial term of which shall be for a period of one (1) year from the date hereof. If renewed, a renewal term shall be for no longer than a one (1) year period. Neither (a) the death, retirement, removal, withdrawal, termination or resignation of the Property Manager. (b) any assignment for the benefit of creditors by or the adjudication of bankruptcy or incompetency of the Property Manager, nor (c) the expiration or termination of the Property Management Agreement shall cause the termination of this Agreement and this Agreement shall remain in full force and effect notwithstanding any such events. The initial Property Manager shall be BMS Realty Services, LLC, a Maryland limited liability company and an affiliate of Napa Square Owner. Pursuant to the Property Management Agreement, the Property Manager shall provide not less than quarterly to each of the Tenants in Common, a detailed report of operations at the Property for such quarter, and shall provide to each of the Tenants in Common copies of any correspondence regarding any defaults, mortgages, deficiencies in taxes, liens on the Property, or relating to financing or refinancing of the Property. Except as specifically provided in the Property Management Agreement, the Property Manager shall not take any Simple Majority Action or Unanimous Action, as the case may be, prior to obtaining the requisite consent of the Tenants in Common.

Section 4.04. <u>Leasing of the Property</u>. Any real estate broker who may provide leasing brokerage services for the Property shall be entitled to be paid customary and reasonable real estate leasing commissions for such services. No lease of all or any portion of the Property shall be entered into unless the Tenants in Common shall have complied with the provisions of ‎Section 4.02.

**<u>ARTICLE V</u>** <br>**Certain Rights of the Tenants in Common**

Section 5.01. <u>Engaging in Other Business</u>. Each of the Tenants in Common (subject to the single purpose entity requirements in any loan obtained by the Tenants in Common) and their respective affiliates may engage in or possess an interest in other business ventures of every nature and description, or in any other real property, independently or with others, whether or not competitive with the Property, and no other Tenant in Common shall have any right by virtue of this Agreement in or to any such independent ventures or to the income or profits derived therefrom.

**<u>ARTICLE VI</u>** <br>**Books and Records**

Section 6.01. <u>Books and Records</u>. The books and records with respect to the Property shall be maintained by Napa Square Owner, who shall not be paid any compensation for performing such services, provided that upon the written request of any Tenant in Common, such books and records thereafter shall be maintained by a person or entity not affiliated with any Tenant in Common and the selection of which shall be approved by all Tenants in Common (in which event compensation as approved in connection with such selection may be paid for services relating to maintaining such books and records). The person or entity maintaining such books and records shall provide not less than quarterly, to each of the Tenants in Common, a detailed report showing all items of revenue and expense with respect to the Property for such quarter and year to date and providing a summary of operations at the Property for such quarter. Each Tenant in Common shall have access to the books and records with respect to the Property and the TIC during normal business hours and at all reasonable times. The foregoing is not intended to negate any compensation payable to the Property Manager pursuant to the Property Management Agreement.

Section 6.02. <u>Bank Accounts</u>. Subject to any cash management requirements set forth in any loan obtained by the Tenants in Common, all funds contributed or received with respect to the Property shall be deposited in such separate bank account or accounts as shall be determined by the Tenants in Common. Each Tenant in Common and the Property Manager are hereby designated as authorized signatories on such bank account or accounts.

**<u>ARTICLE VII</u>** <br>**Transfer of TIC Interests; Partition**

Section 7.01. <u>Restriction on Transfers or Partition</u>. Except for Unrestricted Transfers under ‎Section 7.02, any proposed sale or other transfer by a Tenant in Common of a TIC Interest shall be subject to compliance with ‎Section 7.04. Any proposed partition of the Property shall be subject to compliance with ‎Section 7.05.

Section 7.03. <u>Indebtedness and Lender Restrictions</u>. All indebtedness secured by a blanket lien on the Property shall be shared by the Tenants in Common in proportion to their TIC Interests. If the beneficiary of a deed of trust encumbering the Property requires restrictions on the right to transfer, partition or encumber TIC Interests that are consistent with customary commercial lending practices, the Tenants in Common shall execute any amendment to this Agreement as may be required by the lender to implement such restrictions.

Section 7.04. <u>Right of First Offer</u>. Except for an Unrestricted Transfer, if a Tenant in Common desires to sell or otherwise transfer all or a portion of its TIC Interest (the "<u>For Sale TIC Interest</u>"), it shall first offer to the other Tenants in Common (the "<u>Non-Selling Tenants in Common</u>"), by written notice, the right to make an offer to purchase the For Sale TIC Interest. Each Non-Selling Tenant in Common shall have 30 days from the date such notice is given to make a written offer to the selling Tenant in Common to purchase all, but not less than all, of the For Sale TIC Interest. The selling Tenant in Common shall have the right to accept or reject the offer of any one or more of the Offerees (as defined below). If the selling Tenant in Common has not accepted an offer within 30 days after receipt of such offer, it shall be deemed to have been rejected. Subject to compliance with the foregoing procedure, the selling Tenant in Common shall be entitled to sell or otherwise transfer the For Sale TIC Interest without restriction.

Section 7.05. <u>Partition</u>. If any Tenant in Common (the <u>"Partitioning Tenant in Common"</u>) desires to exercise its right of partition, then prior to exercising such right, the Partitioning Tenant in Common shall give written notice (the "<u>Offer Notice</u>") to the other Tenants in Common (the "<u>Offerees</u>"), offering to sell its TIC Interest to the Offerees at Fair Market Value as of the date of the Offer Notice, and the Offerees shall have the right to purchase such TIC Interest at Fair Market Value, in accordance with the following procedures:

&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>Procedure</u>. Those Offerees who desire to accept the offer shall give written notice (the "<u>Acceptance Notice</u>") to the Partitioning Tenant in Common within 30 days after the date of the Offer Notice. The accepting Offerees shall have the right to purchase such TIC Interest pro rata to their existing TIC Interests, or as they may otherwise agree. If the Acceptance Notice does not accept the offer as to the entire TIC Interest, or is not given within such 30 day period, then the Offerees shall be deemed to have rejected the offer, and the Partitioning Tenant in Common shall be entitled to exercise its right of partition. The closing of a sale of the TIC Interest pursuant to an Acceptance Notice shall take place within 30 days after the final determination of Fair Market Value pursuant to Section 7.05‎(b), at which time the purchase price shall be payable in cash.

&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>Determination of Fair Market Value</u>. For purposes hereof, "<u>Fair Market Value</u>" shall mean, as of a given date, the fair market value of the TIC Interest determined in accordance with the following procedure. The Partitioning Tenant in Common, on the one hand, and the Offerees who are participating in the purchase, on the other hand, each shall appoint an appraiser with experience appraising tenancy in common interests in real estate in California who shall have no relationship with any Tenant in Common (a "<u>Qualified Appraiser</u>"). Such appointment shall be made within 30 days after the date of the Acceptance Notice by giving written notice to the other of the name and contact information of the Qualified Appraiser. If either the Partitioning Tenant in Common, on the one hand, or the Offerees, on the other hand, fail to appoint a Qualified Appraiser within such 30 day period, the appraisal shall be made by the sole Qualified Appraiser appointed within such 30 day period. If both the Partitioning Tenant in Common and the Offerees (together) appoint a Qualified Appraiser within such 30 day period, then such two Qualified Appraisers shall each appraise the TIC Interest. If the two Qualified Appraisers do not agree on the Fair Market Value, then such two Qualified Appraisers shall appoint a third Qualified Appraiser within 15 days thereafter, and the third Qualified Appraiser shall have no authority other than to choose which of the two appraisals is closest to the Fair Market Value.

Section 7.06. <u>Lender Requirements</u>. The provisions of this ‎Article VII are subject to any restrictions on transfers set forth in any loan obtained by the Tenants in Common.

**<u>ARTICLE VIII</u>** <br>**Miscellaneous Provisions**

Section 8.01. <u>Paragraph Headings</u>. The headings in this Agreement are inserted for convenience and identification only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof.

Section 8.02. <u>Severability</u>. Every portion of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid by any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of this Agreement.

Section 8.03. <u>Sole Agreement</u>. This Agreement constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements concerning such subject matter.

Section 8.04. <u>Notices</u>. All notices, requests, demands, acceptances and other communications which are required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given (i) when delivered personally, or (ii) when sent by fax or email if sent on a business day prior to 5:00 P.M. local time at the place of receipt, or on the following business day if sent after 5:00 P.M. or on a non-business day, or (iii) on the day following delivery to an overnight courier service if sent by next day delivery via a recognized courier service, or (iv) 7 days after the date when mailed postage prepaid. All such notices, requests, demands, acceptances and other communications shall be addressed to the parties as provided on <u>Schedule B</u>, or at such other address as shall be specified by like notice.

Section 8.05. <u>Applicable Law</u>. This Agreement, and the application or interpretation thereof; shall be governed exclusively by its terms and by the laws of the State of New York (without regard to conflict of laws principles).

Section 8.06. <u>Execution in Counterparts</u>. This Agreement may be executed in any number of counterparts with the same effect as if all parties hereto had all signed the same document. All counterparts shall be construed together and shall constitute one agreement. This Agreement may be executed by facsimile or email.

Section 8.07. <u>Recording</u>. This Agreement shall not be recorded in the real property records. However, the Tenants in Common shall record a short form memorandum hereof, at the expense of the TIC.

Section 8.08. <u>Amendments</u>. No amendment, modification or alteration of the terms hereof shall be binding unless in writing, dated subsequent to the date hereof and duly executed by all of the Tenants in Common.

Section 8.09. <u>Mutuality, Reciprocity</u>. All provisions, conditions, covenants, restrictions, obligations and agreements contained herein are made for the direct, mutual and reciprocal benefit of each and every part of the Property; shall be binding upon and shall inure to the benefit of each of the Tenants in Common and their respective heirs, executors, administrators, successors, assigns, devisees, representatives, lessees and all other persons acquiring any undivided interest in the Property or any portion thereof whether by operation of law or any manner whatsoever (collectively, "<u>Successors</u>"); shall create mutual, equitable servitudes and burdens upon the undivided interest in the Property of each Tenant in Common in favor of the interest of every other Tenant in Common; shall create reciprocal rights and obligations between the respective Tenants in Common, their interests in the Property, and their Successors. It is expressly agreed that each covenant contained herein (i) is for the benefit of and is a burden upon the undivided interests in the Property of each of the Tenants in Common, (ii) runs with the undivided interest in the Property of each Tenant in Common, and (iii) benefits and is binding upon each Successor owner during its ownership of any undivided interest in the Property, and each owner having any interest therein derived in any manner through any Tenant in Common or Successor. Every person or entity who now or hereafter owns or acquires any right, title or interest in or to any portion of the Property is and shall be conclusively deemed to have consented and agreed to every restriction, provision, covenant, right and limitation contained herein, whether or not such person or entity expressly assumes such obligations or whether or not any reference to this Agreement is contained in the instrument conveying such interest in the Property to such person or entity. The Tenants in Common agree that any Successor shall become a party to this Agreement and the Property Management Agreement, if any, upon acquisition of an undivided interest in the Property, as if such person was a Tenant in Common initially executing this Agreement.

Section 8.10. <u>Lender Provisions</u>. Notwithstanding any other provision in this Agreement to the contrary, so long as that certain loan in the original principal amount of $22,300,000.00 (the "<u>Loan</u>") made by Insurance Strategy Funding II, LLC (together with its successors and assigns, "<u>Lender</u>") to the Tenants in Common and evidenced by that certain Promissory Note of even date herewith (together with the other documents executed and/or delivered in connection with the Loan, as each of the same may be amended, restated, supplemented or modified from time to time, collectively, the "<u>Loan Documents</u>") is outstanding, the following provisions shall govern:

&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 Tenants in Common hereby waive the right at law, in equity or by contract, to institute a partition of the Property, until the payment in full of the obligations under the Loan in accordance with the terms of 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;(b) This Agreement (and all of the terms and provisions contained herein, including without limitation, any and all rights of indemnification, rights and remedies of each Tenant in Common and rights of first refusal, purchase options or similar rights) is and shall be expressly subject and subordinate at all times to (a) the Loan and (b) the lien and terms of the Loan Documents and all rights of Lender thereunder. Any TIC Interest acquired pursuant to this Agreement shall be subject to and encumbered by the Loan and the Loan Documents. This subordination provision shall be self-operative and no further instrument of subordination shall be required.

&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) Lender shall be a third-party beneficiary under this Agreement. Lender may rely on, and enforce, the provisions of this Agreement relating to the Loan, including, without limitation, this ‎Section 8.10.

[SIGNATURES ON FOLLOWING PAGE]

IN WITNESS WHEREOF, the parties hereto have executed this Tenancy in Common Agreement as of the day and year first above written.

---

| | |
|:---|:---|
| NAPA SQUARE OWNER NY LLC | NAPA SQUARE OWNER NY LLC |
| By: | /s/ Lawrence Botel |
| Name: | Lawrence Botel |
| Title: | Manager |
| ONE NAPA LLC | ONE NAPA LLC |
| By: | /s/ Pamela Sprayregen |
| Name: | Pamela Sprayregen |
| Title: | Manager |
| JNK NAPA SQUARE LLC | JNK NAPA SQUARE LLC |
| By: | /s/ Lisa Karmin |
| Name: | Lisa Karmin |
| Title: | Manager |

---

STATE OF NEW YORK) <br> SS: <br> COUNTY OF NEW YORK)

On the 2<sup>nd</sup> day of March, 2016, before me, the undersigned, personally appeared Lawrence Botel, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Jonathan S. Margolis |
| Notary Public |

---

STATE OF NEW YORK) <br> SS: <br> COUNTY OF NEW YORK)

On the 2<sup>nd</sup> day of March, 2016, before me, the undersigned, personally appeared Pamela Sprayregen, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Jonathan S. Margolis |
| Notary Public |

---

STATE OF NEW YORK) <br> SS: <br> COUNTY OF NEW YORK)

On the 1<sup>st</sup> day of March, 2016, before me, the undersigned, personally appeared Lisa Karmin, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

---

| |
|:---|
| /s/ Jonathan S. Margolis |
| Notary Public |

---

## Exhibit 10.26

**Exhibit 10.26**

FIRST AMENDMENT OF TENANCY IN COMMON AGREEMENT

This First Amendment of Tenancy in Common Agreement (this "<u>Amendment</u>") is entered into as of the 4<sup>th</sup> day of March, 2016 among Napa Square Owner NY LLC, a Delaware limited liability company ("<u>Napa Square Owner</u>"), One Napa LLC, a Delaware limited liability company ("<u>One Napa</u>") and JNK Napa Square LLC, a Delaware limited liability company ("<u>JNK LLC</u>"), all of which are referred to collectively as the "Tenants in Common" or individually as a "Tenant in Common".

WHEREAS, the Tenants in Common entered into that certain Tenancy in Common Agreement dated as of March 4, 2016 with respect to the property described therein (as amended, the "<u>TIC Agreement</u>"); and

WHEREAS, the Tenants in Common desire to modify the TIC Agreement;

NOW THEREFORE, in consideration of Ten ($10.00) and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. All initially capitalized terms used herein which are not defined herein shall have the meanings set forth in the TIC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding anything to the contrary set forth in the TIC Agreement, Schedule B to the TIC Agreement is hereby deleted and replaced with the <u>Schedule B</u> attached hereto and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as set forth herein, the TIC Agreement is ratified and remains in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. This Amendment may be executed in counterparts, each of which shall be deemed an original. The signature of a Tenant in Common to this Amendment sent to the other parties by facsimile or portable document format shall have the same legal effect as an original signature.

THE REST OF THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.

---

| | |
|:---|:---|
| NAPA SQUARE OWNER NY LLC | NAPA SQUARE OWNER NY LLC |
| By: | /s/ Lawrence Botel |
| Name: | Lawrence Botel |
| Title: | Manager |
| ONE NAPA LLC | ONE NAPA LLC |
| By: | /s/ Pamela Sprayregen |
| Name: | Pamela Sprayregen |
| Title: | Manager |
| JNK NAPA SQUARE LLC | JNK NAPA SQUARE LLC |
| By: | /s/ Lisa Karmin |
| Name: | Lisa Karmin |
| Title: | Manager |

---

SCHEDULE B<br>Tenants in Common

---

| | | |
|:---|:---|:---|
| **Name and Address** | **TIC Interest** | **Initial Capital** |
| NAPA SQUARE OWNER NY LLC,<br> c/o JOSS Realty Partners LLC<br> 1345 Avenue of the Americas<br> 31st floor<br> New York, New York 10105<br> Attn: Mr. Lawrence Botel<br> Email: larry.botel@jrpllc.com | 26.6% | $4999581.15 |
| ONE NAPA LLC,<br> 200 West 86th Street, #16J<br> New York, NY 10024<br> Attn: Pamela Sprayregen<br> Email: pamelasprayregen@gmail.com | 36.7% | $6899371.73 |
| JNK NAPA SQUARE LLC,<br> 9 Appeld Court<br> Hillsdale, New Jersey 07642-2300<br> Attn: Lisa Karmin<br> Email: lisakarmin@gmail.com | 36.7% | $6899371.73 |

---

Sch. B-1

## Exhibit 23.1

**Exhibit 23.1**

<u>Consent of Independent Registered Public Accounting Firm</u>

We consent to the inclusion in this Amendment No. 3 to the registration statement on Form S-11 (File No. 333-290369) and related Prospectus, of our report dated May 12, 2025, with respect to the financial statements of JOSS Realty REIT, Inc. as of April 15, 2025 (date of inception).

We also consent to the reference to our firm under the caption "Experts".

/s/ CohnReznick LLP

New York, New York

January 12, 2026

## Exhibit 23.2

**Exhibit 23.2**

<u>Consent of Independent Registered Public Accounting Firm</u>

We consent to the inclusion in this Amendment No. 3 to the registration statement on Form S-11 (File No. 333-290369) and related Prospectus, of our report dated July 14, 2025, with respect to the combined consolidated financial statements of JOSS Realty as of December 31, 2024 and 2023, and for the years then ended. Our audit report includes an explanatory paragraph relating to JOSS Realty's ability to continue as a going concern.

We also consent to the reference to our firm under the caption "Experts".

/s/ CohnReznick LLP

New York, New York

January 12, 2026

## Exhibit 23.3

**Exhibit 23.3**

<u>Consent of Independent Registered Public Accounting Firm</u>

We consent to the inclusion in this Amendment No. 3 to the registration statement on Form S-11 (File No. 333-290369) and related Prospectus, of our report dated July 14, 2025, with respect to the financial statements of the property located at 1401-1485 1st Street, Napa, CA ("Napa Square") as of December 31, 2024 and 2023, and for the years then ended. Our audit report includes an explanatory paragraph relating to Napa Square's ability to continue as a going concern.

We also consent to the reference to our firm under the caption "Experts".

/s/ CohnReznick LLP

New York, New York

January 12, 2026