Document:

Exhibit 10.85.4
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GUARANTY AGREEMENT
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FOR VALUE RECEIVED, and in order to induce ACCESS POINT FINANCIAL, LLC, a Delaware limited liability company ("Lender"), to extend credit or other financial accommodations to LF3 AURORA, LLC, a Delaware limited liability company and LF3 AURORA TRS, LLC, a Delaware limited liability company (collectively, the "Borrower"), and for other good and valuable consideration, the receipt and adequacy of all of the foregoing as legally sufficient consideration being hereby acknowledged, each of the undersigned (each a "Guarantor") hereby agrees in favor of Lender as follows:
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1.           Guaranty of Obligations.
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(a)         Guarantor hereby irrevocably, absolutely and unconditionally guarantees to Lender the prompt payment when due, whether at stated maturity, by acceleration or otherwise, of the Debt (as hereinafter defined). Guarantor acknowledges and agrees that this Guaranty Agreement ("Guaranty") is a guaranty of payment and not of collection and upon any default of Borrower under the Loan Documents (as defined below), Lender may, at its option, proceed directly and at once, without notice, against Guarantor to collect and recover the full amount of the liability hereunder or any portion thereof, without proceeding  against Borrower or any other person, or foreclosing upon, selling, or otherwise disposing of or collecting or applying against any of the collateral for the Debt. It is expressly understood and agreed that this is a continuing guaranty and that the obligations of Guarantor hereunder are and shall be absolute under any and all circumstances, without regard to the validity, regularity or enforceability of the Loan Documents, a true copy of each of said documents Guarantor hereby acknowledges having received and reviewed.
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(b)         Guarantor further covenants that this Guaranty shall remain and continue in full  force and effect as to any modification of the Loan Documents; that Lender shall not be under a duty to protect, secure or insure any security or lien provided by the Security Instrument (defined below) or other such collateral; and that indulgences or forbearance may be granted under any or all of such documents, all of which may be made, done or suffered without notice to, or further consent of Guarantor.
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Notwithstanding anything in this Section 1 to the contrary, Guarantor’s obligations as set forth in this Guaranty shall be up to a maximum of $11,000,000.00 of the Debt, as defined below, prior to any reduction thereof as a result of the application of any amounts related to the Debt (other than regularly scheduled monthly payments) collected by Lender from Borrower or any other party, including any amounts realized as a result of the exercise of any remedies under the Loan Documents.
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2.        Obligations and Documents Defined.
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(a)         The term "Debt" as used in this Guaranty shall mean the principal sum evidenced by the Note and secured by the Security Instrument, or so much thereof as may be outstanding from time to time, together with interest thereon at the rates of interest specified in the Note, late fees, prepayment consideration, and all other sums which may or shall become due and payable pursuant to the provisions of the Loan Documents.
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(b)         The term "Loan Documents" shall mean and include the following: The Promissory Note in the original principal amount of $15,000,000.00 and executed by Borrower to the order of Lender ("Note"), and the Fee and Leasehold Deed of Trust and Security Agreement between Borrower and Lender ("Security Instrument"), together with any extensions, renewals, refinancings, restructurings, modifications or replacements, in whole or in part, of or for any of the foregoing.
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3.          Guaranty Absolute. Guarantor agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in no way be terminated, affected or impaired (a) by reason of the assertion by Lender of any rights or remedies which it may have under or with respect to any of the Loan Documents, against any person obligated thereunder; (b) by reason of any failure to file or record any of such instruments or to take or perfect any security intended to be provided thereby; (c) by reason of the release or exchange  of any collateral covered by the Security Instrument or other collateral for the Debt; (d) by reason of Lender's failure to exercise, or delay in exercising, any such right or remedy or any right or remedy Lender may have hereunder or in respect to this Guaranty; (e) by reason of the commencement of a case under the Bankruptcy Code (hereafter defined) by or against any person obligated under the Note or the other Loan
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Documents, or the death or dissolution of any Guarantor; or (f) by reason of any payment made on the Debt, whether made by Borrower or Guarantor or any other person, which is required to be refunded pursuant to any bankruptcy or insolvency law; it being understood that no payment so refunded shall be considered as a payment of any portion of the Debt, nor shall it have the effect of reducing the liability of Guarantor hereunder. It is further understood, that if Borrower shall have taken advantage of, or be subject to the protection of, any provision in the Bankruptcy Code, the effect of which is to prevent or delay Lender from taking any remedial action against Borrower, including the exercise of any option Lender has to declare the Debt due and payable on the happening of any default or event by which under the terms of the Note or the other Loan Documents the Debt shall become due and payable, Lender may, as against Guarantor, nevertheless, declare the Debt due and payable and enforce any or all of its rights and remedies against Guarantor provided for herein.
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4.          Subordination of Borrower's Obligations to Guarantor. Any indebtedness of Borrower to Guarantor now or hereafter existing (including, but not limited to, any rights to subrogation Guarantor may have as a result of any payment by Guarantor under this Guaranty), together with any interest thereon, shall be, and such indebtedness is, hereby deferred, postponed and subordinated to the prior payment in full of  the Debt. Until payment in full of the Debt (and including interest accruing on the Debt after the commencement of a proceeding by or against Borrower under the Bankruptcy Reform Act of 1978, as amended, 11 U.S.C. Sections 101 et seq., and the regulations adopted and promulgated pursuant thereto (collectively, "Bankruptcy Code"), which interest the parties agree shall remain a claim that is prior and superior to any claim of Guarantor notwithstanding any contrary practice, custom or ruling in cases under the Bankruptcy Code generally), Guarantor agrees not to accept any payment or satisfaction of any kind of indebtedness of Borrower to Guarantor and hereby assigns such indebtedness to Lender, including the right to file proof of claim and to vote thereon in connection with any such proceeding under the Bankruptcy Code, including the right to vote on any plan of reorganization. Further, if Guarantor shall be comprised of more than one person, firm or corporation, Guarantor agrees that until such payment in full of the Debt, (a) no one of them shall accept payment from the others by way of contribution on account of any payment made hereunder by such party to Lender, (b) no one of them will take any action to exercise or enforce any rights  to such contribution, and (c) if any of Guarantor should receive any payment, satisfaction or security for any indebtedness of Borrower to any of Guarantor or for any contribution by the others of Guarantor for payment made hereunder by the recipient to Lender, the same shall be delivered to Lender in the form received, endorsed or assigned as may be appropriate for application on account of, or as security for, the Debt and until so delivered, shall be held in trust for Lender as security for the Debt.
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5.          Subrogation and Other Rights. Guarantor agrees that no payment, performance or enforcement of Guarantor's liabilities and obligations under this Guaranty shall cause Guarantor, by subrogation or otherwise, to acquire any of Lender's rights against Borrower or any property of Borrower (or any interest in such rights) unless and until Lender has received full and indefeasible payment of the Debt.
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6.          Waivers. Guarantor hereby waives, to the fullest extent permitted by law: (a) notice of acceptance of this Guaranty; (b) notice of any acceleration or other demand for payment of the Debt; (c) any and all notice of nonpayment, nonperformance or nonobservance or other proof, notice or demand, whereby to charge Guarantor therefor, or to which Guarantor might otherwise be entitled with respect to the Debt or the Loan Documents or with respect to Lender's enforcement of its rights and remedies thereunder; (d)  notice of presentment, demand, protest, and notice of dishonor or nonpayment as to any instrument; (e) the pleading of any statute of limitations as a defense to the obligation hereunder; and (f) jury trial and the right  to personal service in accordance with section 14(g); (g) any and all rights or defenses based on suretyship or impairment of collateral, including, but not limited to, any rights or defenses arising by reason of the provisions of OCGA 10-7-24, concerning Guarantor’s right to require Lender to take action against borrower or any “one action” or “anti-deficiency” law or any other law which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender’s commencement or completion of a foreclosure action, either judicially or by exercise of a power of sale; and (h) any defenses given to guarantors at law or in equity other than actual payment and performance of the indebtedness.
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7.          Guarantor Due Diligence and Benefit. Guarantor represents and warrants to Lender that it is fully aware of the financial condition, assets and prospects of Borrower and that Guarantor is executing and delivering this Guaranty based solely upon Guarantor's own independent investigation thereof and in no part upon any representation, warranty or statement of Lender with respect to Borrower's financial condition, assets or prospects. Guarantor hereby knowingly accepts the full range of risks encompassed within a
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contract of guaranty, which risks Guarantor understands may include, without limitation, the possibility that Borrower may incur additional indebtedness to Lender for which Guarantor may be liable hereunder after Borrower's financial condition or means or ability to pay its lawful debts when they fall due has deteriorated.
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8.          Application of Payments. Lender may apply all moneys available to Lender for application in payment or reduction of the Debt in such priority and proportions and at such time or times and in such order and priority as Lender may elect.
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9.          Collection Costs. Guarantor shall be liable to Lender for, and shall pay to Lender on  demand, all costs (including without limitation reasonable fees and expenses of legal counsel, whether of retained firms or of in-house staff) incurred by Lender in enforcing performance of or collecting any payments due under this Guaranty. All such amounts shall accrue interest at the Default Rate provided in the Note if not paid in full within five (5) days of Lender's written demand therefor, which interest shall accrue from the date demanded by Lender until paid in full by Guarantor. Interest at the greater of the Default Rate or the legal rate applicable to judgments shall accrue on any judgment obtained by Lender in connection with this Guaranty.
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10.        Guarantor Information. Guarantor agrees that, so long as this Guaranty remains in effect, Guarantor shall furnish to Lender from time to time, at such intervals and by such dates as may be required by Lender (by no more frequently than annually unless an Event of Default under the Note or the Security Instrument has occurred), Guarantor's Federal and state income tax returns and a balance sheet and statement of changes in Guarantor's financial position, each certified by Guarantor as true, complete and accurate. Each such financial statement shall be in reasonable detail and prepared in accordance with consistently applied accounting methods acceptable to Lender. Guarantor shall permit Lender or its representatives to visit and inspect Guarantor's books and records during reasonable business hours and agrees to discuss Guarantor's financial condition with Lender.
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11.        Assignment and Transfer.
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(a)         Guarantor acknowledges that Lender, and each successor to Lender's interest, has the right, in its sole discretion, to transfer, sell, pledge, assign or otherwise encumber or dispose of its  interest in the loan evidenced by the Loan Documents, to grant participations therein, or to issue pass- through certificates or other securities ("Securities") evidencing a beneficial interest in a rated or unrated public offering or private placement of which the loan evidenced by the Loan Documents will be made a part, without Guarantor's consent or any notice thereof to Guarantor. Lender also may split the Debt into one or more separate obligations, each of which will be separately guaranteed by this Guaranty.
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(b)         If Lender, or any successor to Lender's interest, determines to undertake any action contemplated by subsection (a) above, Guarantor acknowledges that Lender may forward to each prospective purchaser, transferee, assignee, servicer, participant, investor or their respective successors (collectively, "Investor") or any agency rating the Securities, all documents and information which Lender now has or may hereafter acquire relating to Guarantor (including personal financial statement of Guarantor), as Lender determines necessary or desirable. Guarantor's execution of this Guaranty shall be deemed Guarantor's written consent to Lender's furnishing of such information, but, if requested by Lender,  Guarantor agrees to confirm such consent to writing to Lender. Guarantor further agrees to cooperate with Lender in connection with any action contemplated under subsection (a) including, without limitation, ratifications of this Guaranty or execution of other documents deemed necessary by Lender or such transferee to create, perfect, protect or preserve the rights and interests to be acquired by it, meeting with  any rating agency for due diligence purposes, and providing all information concerning Guarantor's financial condition as Lender reasonably may request.
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12.        Power to Execute Guaranty. Guarantor hereby certifies, represents, and warrants to Lender that Guarantor has full power and authority to execute this Guaranty, that Guarantor's execution and delivery of this Guaranty has been fully authorized and directed, that, as applicable, the persons executing this Guaranty on behalf of Guarantor have been duly authorized to do so by Guarantor, and that this Guaranty, once executed, shall be the valid and binding obligation of Guaranty enforceable in accordance with its terms.
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13.          Notices. All notices and other communications under this Guaranty are to be in writing, addressed in the case of Lender to the address as set forth below and in the case of each Guarantor as set forth below such Guarantor's signature hereto, and shall be deemed to have been duly given (a) upon delivery, if delivered in person with receipt acknowledged by the recipient thereof, (b) one business day after having been timely deposited for overnight delivery, fee prepaid, with any reputable overnight courier service, or (c) three business days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by certified mail, postage prepaid, return receipt requested. Each party may establish a new address from time to time by written notice to the other given in accordance with this section; provided, however, that no such change of address will be effective until written notice thereof is actually received by the party to whom such change of address is sent. Notice to additional parties designated by a party entitled to notice are for convenience only and are not required for notice to a party to be effective in accordance with this section. Lender's notice address is as follows: Access Point Financial, LLC, 1 Ravinia Drive, Suite 900, Atlanta, GA  30346, Attn: Dilip Petigara.
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14.       Miscellaneous.
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(a)         Entire Guaranty; Modification. All prior agreements, understandings, representations and communications between the parties, whether oral or written, with respect to this Guaranty are merged into this Guaranty which alone and completely expresses the agreement of Guarantor and Lender. Neither this Guaranty nor any provisions hereof will be modified, supplemented or waived, except by an agreement  in writing signed by the party against whom enforcement is thereof is sought and then only to the extent expressly provided in such writing.
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(b)         Binding Effect. The Guaranty shall be binding upon and inure to the benefit of Lender, its successors and assigns. This Guaranty shall be binding upon Guarantor and its heirs, executors, legal representatives, successors, successors and assigns, whether by voluntary action of the parties or by operation of law. If Guarantor shall be a partnership, the agreements and obligations on the part of such Guarantor herein contained shall remain in force and application notwithstanding any changes in the individuals composing the partnership and the term "Guarantor" shall include any altered or successive partnerships, but the predecessor partnerships and their partners shall not thereby be released from any obligations or liability hereunder. The foregoing shall not be construed to permit assignments or other transfers otherwise prohibited. If Guarantor consists of more than one person or entity, the obligations and liabilities of each such person or entity hereunder shall be joint and several.
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(c)         Applicable Law. This Guaranty shall be deemed to be a contract entered into pursuant to the laws of the State of Georgia and shall in all respects be governed, construed, applied and enforced in accordance with applicable federal law and the laws of the State of Georgia, without giving effect to any conflict of laws principles.
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(d)         Enforceability. If any provision of this Guaranty is found by competent judicial authority to be invalid or unenforceable, the other provisions of this Guaranty that can be carried out without the invalid or unenforceable provision will not be affected, and such invalid or unenforceable provision will be ineffective only to the extent of such invalidity or unenforceability and to the greatest extent possible to accomplish fairly the purposes and intentions of the parties hereto. All rights and remedies under this Guaranty are distinct and cumulative not only as to each other but as to any rights or remedies afforded by law or equity. They may be exercised together, separately or successively. Any failure by Lender to exercise any of its remedies does not constitute a waiver of that remedy in the future as to the same or any other default.
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(e)         Ambiguity; Headings; Gender; and Certain Terms. Neither this Guaranty nor any uncertainty or ambiguity herein shall be construed or resolved against Lender by virtue of the fact that such document has originated with Lender as drafter. Guarantor agrees that this Guaranty shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of the parties hereto. Words used in this Guaranty may be used interchangeably in singular or plural form, and any pronoun shall be deemed to cover all genders. Section headings are for convenience only and shall not be used in interpretation of this Guaranty. "Herein," "hereof" and "hereunder" and other words of similar import refer to this Guaranty as a whole and not to any particular section, paragraph or other subdivision. Reference to days for performance shall mean calendar days unless business days are expressly indicated.
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(f)          Multiple Counterparts. This Guaranty may be executed in one or more counterparts, each of which counterpart will, for all purposes, be deemed an original, but all such counterparts together will constitute one instrument.
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(g)         Consent to Jurisdiction; Service of Process. Each Guarantor agrees and consents  to the jurisdiction and venue of any state or federal court sitting in or having jurisdiction over the Dekalb County, Georgia with respect to any legal action, proceeding, or dispute between them and hereby expressly waives any and all rights under applicable law or in equity to object to the jurisdiction and venue of said courts. Each Guarantor further irrevocably consents to service of process by certified mail, return receipt requested, to the address for such party last provided in accordance with the notice provision of this  Guaranty and agrees that within thirty (30) days after such mailing, Guarantor so served shall appear or answer to any summons and complaint or other process and should Guarantor so served fail to appear or answer within said thirty-day period, said Guarantor shall be deemed in default and judgment may be  entered by Lender against the said party for the amount as demanded in any summons and complaint or other process so served.
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(h)         WAIVER OF JURY TRIAL. GUARANTOR, IN ORDER TO INDUCE LENDER TO EXTEND FINANCIAL ACCOMODATIONS TO BORROWER, HEREBY WAIVES ANY RIGHT SUCH PARTY MAY HAVE UNDER ANY APPLICABLE LAW TO A TRIAL BY JURY WITH RESPECT TO ANY SUIT OR LEGAL ACTION WHICH MAY BE COMMENCED BY OR AGAINST GUARANTOR CONCERNING THE INTERPRETATION, CONSTRUCTION, VALIDITY, ENFORCEMENT OR PERFORMANCE OF THIS GUARANTY TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW.
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IN WITNESS WHEREOF, the undersigned has/have signed, sealed and delivered this Guaranty as of the 28th day of January, 2021 intending to be legally bound hereby.
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	GUARANTOR(S):

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	Signed, sealed and delivered in the
	Lodging Fund REIT III, Inc., a

	presence of:
	Maryland corporation

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	/s/ Jennifer Moum
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	Notary Public
	By: /s/ Samuel Montgomery (SEAL)

	My Commission Expires: April 25, 2022 
	Name: Samuel Montgomery

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	Title: COO and CFO

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	(NOTARY SEAL)
	Address for Notice:

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	1635 43rd Street S.

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	Suite 205

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	Fargo, ND 58103

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5Exhibit 10.85.5
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ENVIRONMENTAL INDEMNITY AGREEMENT
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This ENVIRONMENTAL INDEMNITY AGREEMENT (this "Agreement") is made as of February 4, 2021 by LF3 AURORA, LLC, a Delaware limited liability company and LF3 AURORA TRS, LLC, a Delaware limited liability company (collectively, the "Borrower"), and LODGING FUND REIT III, INC., a Maryland corporation (collectively, the "Guarantor" and Borrower and Guarantor are hereinafter sometimes collectively referred to as "Indemnitor"), each of Borrower and Guarantor, to and for the benefit of ACCESS POINT FINANCIAL, LLC., a Delaware limited liability company, having an address at One Ravinia Drive, Suite 900, Atlanta, Georgia 30346 Attn:  Dilip Petigara ("Lender").
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W I T N E S S E T H:
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WHEREAS, Lender is concurrently herewith making a loan to Borrower in the original maximum principal amount of Fifteen Million and No/100 Dollars ($15,000,000.00) (the "Loan"), secured by a first priority fee and leasehold deed or trust and security agreement on the land and hotel improvements located thereon known as the "Courtyard by Marriott" located at 255 North Blackhawk Street, Aurora, CO 80011, as more particularly described on Exhibit "A", attached hereto (such land and improvements being hereinafter collectively referred to as the "Property");
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WHEREAS, the Loan is evidenced by that certain Promissory Note in the original maximum principal amount of the Loan made by Borrower in favor of Lender, as payee (the "Note"), and is secured by, among other things, that certain Fee and Leasehold Deed of Trust and Security Agreement from Borrower, as grantor, to Lender, as grantee, and encumbering the Property (the "Mortgage "; the Note, the Mortgage, this Agreement and all other documents executed or delivered by Borrower or Guarantor in connection with the Loan, collectively, the "Loan Documents");
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WHEREAS, Indemnitor expects to derive substantial economic benefit from the    Loan;
and
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WHEREAS, Indemnitor's indemnity of Lender from and against all liabilities arising
under Environmental Laws (hereinafter defined) relating to the Property is a condition precedent to Lender's obligation to make the Loan.
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NOW, THEREFORE, in consideration of the making of the Loan and the covenants, agreements, representations and warranties set forth in this Agreement, the parties hereby covenant, agree, represent and warrant as follows:
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1.         Defined Terms. Unless the context otherwise requires, capitalized terms used but not otherwise defined herein shall have the meanings provided therefor in the Mortgage, and the following terms shall have the following meanings:
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(a)        "Borrower" has the meaning provided in the Recitals to this Agreement.
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(b)        "Environmental Claim" means any lien or other encumbrance, or any notice, notification, request for information, claim, administrative, regulatory or judicial action, suit, judgment, demand or other communication (whether written or oral) by any Person (hereinafter defined) or governmental authority alleging or asserting liability with respect to
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Borrower or the Property, whether for damages, contribution, indemnification, cost recovery, compensation, injunctive relief, investigatory, response, remedial or cleanup costs, damages to natural resources, personal injuries, fines or penalties arising out of, based on or resulting from: (i) the presence, Use or Release (both terms hereinafter defined) into the environment of any Hazardous Substances at any location, whether or not owned, leased or operated by Borrower; (ii) any fact, circumstance, condition or occurrence forming the basis of any violation, or alleged violation, of any Environmental Law; or (iii) any alleged injury or threat of injury to health, safety or the environment; provided, however, with respect to any suit, judgment, proceeding or the like, such shall constitute an Environmental Claim only after entry by the appropriate body having jurisdiction of a final non-appealable order or determination.
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(c)          "Environmental Laws" shall mean any and all applicable Laws, Federal, state, regional, county or local statutes, rules, regulations or ordinances, orders or any judicial or administrative decrees or decisions, whether now existing or hereinafter enacted, promulgated or issued, with respect to human health or the environment, any Hazardous Materials, drinking water, groundwater, wetlands, landfills, open dumps, storage tanks, underground storage tanks, solid waste, waste water, storm water run-off, waste emissions or well.
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(d)        "Environmental Report" means the Phase I Environmental Site Assessment report with respect to the Property delivered to Lender in connection with the Loan, together with any amendments or supplements thereto delivered to Lender, including, without limitation, that certain report dated   , and issued by.
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(e)        "Event of Default" is any default beyond any applicable cure period under this Agreement or any of the Loan Documents.
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(f)        "Guarantor" has the meaning provided in the preamble to this Agreement.
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(g)        "Hazardous Substances" has the meaning provided in the Mortgage.
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(h)        "Indemnitor" has the meaning provided in the preamble to this Agreement.
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(i)         "Lender" means Lender and its directors, officers, shareholders, partners, agents, employees, affiliates, subsidiaries, participants and other investors, successors and assigns and the respective directors, officers, shareholders, partners, agents, employees, affiliates, subsidiaries, participants and other investors, successors and assigns, heirs, and legal representatives of each and all of the foregoing. Lender's participants and other investors include but are not limited to any person or entity who may acquire an interest in the Loan, the Mortgage, and any servicing rights with respect to the Loan, and any person or entity who may acquire any participation interest in the loan or who may acquire any interest in mortgage pass-through certificates or other securities evidencing a beneficial interest in the Loan offered in a rated or unrated public offering or private investment.
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(j)         "Loan" has the meaning provided in the Recitals to this Agreement.
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(k)        "Person" means any individual, corporation, partnership, joint venture, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of  any
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of the foregoing.
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(l)         "Property" has the meaning provided in the Recitals to this Agreement.
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(m)       "Release" means any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration into the indoor or outdoor environment, including, without limitation, the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata.
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(n)        "Remedial Work" means any inspection, assessment, investigation, site monitoring, containment, cleanup, removal, restoration, corrective action or other work of any kind to prevent, cure or mitigate any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration into the indoor or outdoor environment, including, without limitation, the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata, or which is reasonably necessary or desirable under an applicable Environmental Law.
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(o)        "Use" means, with respect to any Hazardous Substances, the generation, manufacture, processing, distribution, handling, use, treatment, recycling or storage of such Hazardous Substances on, or transportation of such Hazardous Substances to or from, the Property.
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2.         Indemnification.
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(a)        Indemnitor hereby jointly and severally indemnifies and agrees to reimburse, defend and hold harmless Lender for, from and against all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, costs and expenses including, without limitation, interest, penalties, punitive and consequential damages, attorneys' fees, disbursements and expenses, and consultants' fees, disbursements and expenses asserted against, resulting to, imposed on, or incurred by Lender, directly or indirectly, in connection with any of the following:
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(i)         events, circumstances, or conditions which are alleged to, or do, form the basis for an Environmental Claim;
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(ii)       any pollution or threat to human health or the environment that is related in any way to Borrower's or any previous owner's or operator's management, use, control, ownership or operation of the Property, including, without limitation, all on site and off site activities involving Hazardous Substances, and whether occurring, existing or arising prior to or from and after the date hereof, and whether or not the pollution or threat to human health or the environment is described in the Environmental Report;
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(iii)      any Environmental Claim against any Person whose liability for such Environmental Claim Borrower has or may have assumed or retained either contractually or by operation of law;
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(iv)       the nonperformance or delayed performance and completion of any Remedial Work;
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(v)        the breach of any environmental representation, warranty or covenant set forth in this Agreement; or
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(vi)       any Remedial Work.
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Notwithstanding the foregoing, Indemnitor shall not be liable for any Uses or Releases caused solely by Lender's gross negligence or willful misconduct.
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(b)          The indemnity provided in this Agreement governs Indemnitor's liability for all matters covered hereby and shall be exclusive of any exculpation of Guarantor or Borrower from personal liability provided in the Loan Documents. All of the obligations, liabilities and indemnities hereunder shall be fully recourse to Borrower and Guarantor on a joint and several basis. Nothing in this Agreement shall be deemed to deprive Lender of any rights or remedies provided to it elsewhere in this Agreement or in the other Loan Documents or otherwise available to it under law.
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3.         Right to Contest.
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(a)          After prior written notice to Lender, and so long as Borrower is in possession, custody and control of the Property, prior to the undertaking of Remedial Work by Borrower or Guarantor, Borrower and/or Guarantor may, at their sole cost and expense, contest any Environmental Claim or Environmental Laws, or perform any Remedial Work, provided that at all times all of the following conditions are continuously satisfied in full:
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(i)         no uncured Event of Default (other than as related to the Hazardous Substances involved in such contest or Remedial Work) exists under any of the Loan Documents;
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(ii)       Lender (and Lender's agents, officers, directors, servants, employees, contractors and shareholders) shall not be subject to any criminal or other penalties, fines, costs or expenses, by reason of such contest or Remedial Work or any delays in connection therewith;
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(iii)      a contest shall be instituted promptly after Guarantor or Borrower obtains actual knowledge of an action, suit, proceeding, or governmental order or directive which asserts any obligation or liability affecting all or any portion of the Property, Guarantor or Borrower, and diligently prosecuted until a final judgment is obtained or until such contest or proceeding is dismissed or abandoned; and
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(iv)       Borrower and/or Guarantor shall have furnished such security as may be required in such contest and/or as may be requested by Lender to ensure the payment of amounts due thereunder, together with interest thereon, or in connection with such Remedial Work.
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(b)          Unless a contest has been instituted as permitted hereunder with respect to any Remedial Work, Borrower or Guarantor shall commence the Remedial Work promptly after obtaining actual knowledge of, or any notice or order from any governmental or quasi-- governmental agency of the presence of, Hazardous Substances on, in, under or affecting the Property or any surrounding areas. In any event, at least fifteen (15) days prior to commencement of such Remedial Work, Borrower shall submit to Lender reasonably detailed plans for such Remedial Work complying with Environmental Laws. If, within such fifteen (15) day period,
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Lender, in Lender's reasonable judgment, rejects such plans, Borrower and/or Guarantor shall promptly submit to Lender for its approval revised plans conforming to Lender's reasonable requirements and all applicable Environmental Laws. If within fifteen (15) days from Lender's receipt of the original plans (or revised plans, as the case may be) Lender fails to approve or reject such original plans (or revised plans, as the case may be), Borrower or Guarantor shall send a further notice to Lender stating in capital letters, "FAILURE TO RESPOND WITHIN FIVE (5) BUSINESS DAYS SHALL BE DEEMED LENDER APPROVAL." If Lender fails to respond within five (5) business days of its receipt of such second notice, the plans for Remedial Work described therein shall be deemed accepted by Lender. All Remedial Work shall be performed in compliance with such approved original or revised plans.
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(c)          If a contest has been instituted as permitted hereunder, Remedial Work shall be instituted promptly following an unsuccessful nonappealable completion of any contest and shall be diligently prosecuted until the Hazardous Substances involved in the contest are removed, relocated, encapsulated or disposed of as required by the Environmental Laws.
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(d)          Indemnitor shall notify Lender in writing within ten (10) days after commencement of such contest or Remedial Work and shall render to Lender a written monthly report detailing the progress thereof including such information as Lender shall reasonably request.
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(e)          So long as all of such conditions are continuously satisfied, Indemnitor may proceed with such contest; provided, however, Indemnitor shall not enter into any settlement agreement binding upon Lender or Borrower without their prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Any such settlement effected without either Lender's or Borrower's prior written consent shall not be binding on such party.
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4.           Defense. If a claim is brought or an action filed which gives rise to Lender's indemnity rights hereunder, Indemnitor shall, upon written request of Lender, subject to Lender's approval (which may not be unreasonably withheld or delayed) and in furtherance of its obligations set forth in Section 2 above, employ attorneys to appear and defend the claim or action on behalf of Lender and Indemnitor. Indemnitor shall not enter into any settlement agreement binding upon Lender without Lender's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed beyond thirty (30) days. Any such settlement effected without Lender's prior written consent shall not be binding on Lender. Indemnitor shall pay to Lender within thirty
(30) days after receiving a written invoice therefor, all out-of-pocket costs and expenses (including, without limitation, Lender's reasonable and actual consultants' and legal counsel's fees and disbursements) incurred by Lender in connection with this Agreement or the enforcement hereof whether or not an action is filed in connection therewith.
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5.         Liability.
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(a)        Indemnitor hereby waives, to the fullest extent permitted by applicable law, any right or claim of right to cause Lender to proceed against any of the security for the Loan Documents before proceeding under this Agreement against Indemnitor.
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(b)        Indemnitor's liability under this Agreement shall in no way be limited or
impaired by:
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5

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(i)         any amendment or modification of the Loan Documents;
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(ii)       any extensions of time for performance required by any of the Loan Documents;
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(iii)      any sale, assignment or foreclosure pursuant to the Loan Documents or any sale or transfer of all or any part of the Property;
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(iv)       intentionally deleted;
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(v)        the accuracy or inaccuracy of the representations and warranties made by Borrower or Guarantor under the Loan Documents;
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(vi)       the release of Borrower, Guarantor or any other person from performance or observance of any of the agreements, covenants, terms or conditions contained in any of the Loan Documents by operation of law, Indemnitor's voluntary act, or otherwise;
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(vii)      the release or substitution in whole or in part, of any security for the Note or other evidence of debt issued pursuant to the Loan Documents; or
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(viii)    Lender's failure to record any of the Loan Documents (or Lender's improper recording or filing of any thereof) or to otherwise perfect, protect, secure or insure any security interest or lien given as security for the Note or other evidence of indebtedness under the Loan Documents.
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(c)          Indemnitor's indemnity hereunder is absolute and unconditional, and shall be imposed with or without any notice to Borrower or Guarantor and with or without specific consideration.
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6.         Payment. All payments due to Lender under this Agreement shall be payable to Lender within sixty (60) days after demand therefor, and shall bear interest at the Default Rate (as such term is defined in the Note) from the date such payment is due until the date of payment.
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7.         Notice of Legal Action. Each party hereto shall, within five (5) business days of receipt thereof, give written notice to the other party hereto of: (a) any notice, advice or other communication from any governmental entity or any source whatsoever with respect to Hazardous Substances on, from or affecting the Property; and (b) any claim, suit or proceeding, whether administrative or judicial in nature brought against such party or related to the Property, with respect to which Indemnitor may have liability under this Agreement. Such notice shall comply with the provisions of Section 14 hereof.
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8.         SUBMISSION TO JURISDICTION. BORROWER, GUARANTOR AND LENDER EACH HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE STATE OF GEORGIA OR FEDERAL COURT SITTING IN DEKALB OR FULTON COUNTY OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. BORROWER, GUARANTOR AND LENDER EACH MAY, AT ITS SOLE DISCRETION, ELECT THE STATE OF GEORGIA, DEKALB OR FULTON COUNTY OR THE UNITED STATES FEDERAL DISTRICT
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COURT HAVING JURISDICTION OVER DEKALB OR FULTON COUNTY AS THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING. BORROWER, GUARANTOR AND LENDER EACH HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO SUCH VENUE AS BEING AN INCONVENIENT FORUM.
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9.         Service of Process. Process in any suit, action or proceeding of the nature referred to in Section 8 hereof may be served in any manner permitted by law, and nothing herein shall limit Lender's right to bring proceedings against Indemnitor in the courts of any other jurisdiction.
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10.         Modification; Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement or consent to any departure by Indemnitor therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to or demand on Indemnitor shall entitle Indemnitor to any other or future notice or demand in the same, similar or other circumstances.
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11.         Non-Waiver. Neither failure nor delay on Lender's part in insisting upon strict performance of any term, condition, covenant or agreement or exercising any right, power, remedy or privilege hereunder, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. By way of example, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, or to declare a default for failure to effect prompt payment of any such other amount.
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12.       Assignment. No consent by Borrower or Guarantor shall be required for any assignment or reassignment of Lender's rights under this Agreement. All references to "Lender" hereunder shall be deemed to include Lender's successors and assigns. Borrower and Guarantor shall not be permitted to assign their respective rights, obligations or interests hereunder without the prior written consent of Lender, which Lender may withhold in its sole discretion.
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13.       Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.
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14.         Notices. All notices, requests and other communications provided for herein shall be given or made in writing in the manner specified in the Mortgage, with notices sent to the address of each of Borrower and Guarantor as set forth in the preamble of this Agreement.
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15.       WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER, GUARANTOR AND LENDER EACH HEREBY IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, COUNTERCLAIM OR JUDICIAL PROCEEDING BROUGHT BY BORROWER, GUARANTOR OR LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY   ARISING
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OUT OF, RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT, THE LOAN, THE LOAN DOCUMENTS, AND ANY ACTS OR OMISSIONS OF BORROWER, GUARANTOR OR LENDER IN CONNECTION THEREWITH.
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16.       Governing Law. This Agreement shall be governed by the laws of the State of Georgia, without regard to conflicts of laws principles.
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17.       Section Headings. The section headings used in this Agreement are for convenience of reference only and do not constitute a part of this Agreement for any purpose.
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18.       Survival. This Agreement shall survive any termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise of power of sale, acceptance by Lender of a deed in lieu of foreclosure or repayment of the Loan; provided, however, Indemnitor shall not indemnify Lender with respect to any violation which Indemnitor can establish results from wastes, substances or materials being placed on, above or under the Property only subsequent to any foreclosure by Lender or acceptance by Lender of a deed in lieu of foreclosure with respect to the Property.
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19.       Joint and Several Liability. The obligations and liabilities of each person and/or entity comprising Indemnitor hereunder are joint and several.
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20.         Waivers. Indemnitor hereby waives and relinquishes to the fullest extent permitted by applicable law (a) any right or claim of right to cause a marshaling of Indemnitor's assets or to cause Lender to proceed against any of the security for the Loan before proceeding under this Agreement against any Indemnitor; (b) all rights and remedies accorded by applicable law to indemnitors or guarantors, except rights of subrogation which Indemnitor may have, provided that the indemnity provided for hereunder shall neither be contingent upon the existence of any such rights of subrogation nor subject to claims or defenses whatsoever which may be asserted in connection with the enforcement or attempted enforcement of such subrogation rights including, without limitation, any claim that such subrogation rights were abrogated by any acts of Lender; and (c) the right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against or by Lender.
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21.       Counterparts. This Agreement may be executed in any number of counterparts and each such duplicate original shall be deemed to be an original.
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22.       Time of Essence. Time is of the essence of this Agreement and of each and every term, covenant and condition herein.
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23.       No Third-Party Beneficiary Rights Created. The parties hereto expressly declare that it is their joint and mutual intention that this Agreement and the transactions contemplated hereby shall not be construed as creating a third party beneficiary contract, and neither this Agreement nor any of the other Loan Documents shall be construed as giving or conferring any rights or benefits whatsoever to or upon any other persons or entities other than Borrower, Guarantor and Lender.
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IN WITNESS WHEREOF, Indemnitor has executed and delivered this Environmental Indemnity Agreement under seal as of the day and year first above written.
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	INDEMNITOR:

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	GUARANTOR:

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	Lodging Fund REIT, Inc., a Maryland corporation

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	By: /s/ Samuel Montgomery (SEAL)

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	Name: Samuel Montgomery

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	Title: COO ad CFO

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	(Corporate Seal)

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	BORROWER

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	LF3 AURORA, LLC, a Delaware limited liability company

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	By: Lodging Fund REIT III OP, LP, its Sole Member

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	By: Lodging Fund REIT III, Inc., its General Partner

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	By: /s/ Samuel Montgomery (SEAL)

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	Name: Samuel Montgomery

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	Title: COO and CFO

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	(Corporate Seal)

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	LF3 AURORA TRS, LLC, a Delaware limited liability company

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	By: Lodging Fund REIT III TRS, Inc.

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	Its:  Sole Member

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	By: Lodging Fund REIT III OP, LP

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	Its:  Sole Shareholder

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	By: Lodging Fund REIT III, Inc.

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	Its: General Partner

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	/s/ Samuel Montgomery

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	By: Samuel Montgomery

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	Its: COO and CFO

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	(Corporate Seal)

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Environmental Indemnity Agreement – Signature Page
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EXHIBIT “A”
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PARCEL I:
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Lot 2, Block 1,
ABILENE STATION SUBDIVISION FILING NO. 1, recorded June 9, 2015 at Reception No. D5059964.
County of Arapahoe, State of Colorado.
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PARCEL II:
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Beneficial easements in Master Declaration of Covenants, Conditions and Restrictions for Abilene Station recorded July 31, 2015 at Reception No. D5085270.
County of Arapahoe, State of Colorado

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