Document:

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) made as of November 18, 2013 (the “Effective Date”), by and between SPORTS
FIELD HOLDINGS, INC., a Nevada corporation, with offices at 1106 Carroll Street, Pawnee, Illinois 62558 (hereinafter called the
“Company”), and Daniel Daluise, residing at 11 Skylar Drive, Southborough, Massachusetts 01772 (hereinafter called
the “Executive”).

 

WITNESSETH:

 

WHEREAS, as of the
date hereof, Executive holds 500,000 of the Company's common stock, par value US $0.001 per share that the Company issued to the
Executive (the “Initial Shares”);

 

WHEREAS, the Company
has engaged an investment bank for the purpose of raising capital in a going public transaction (the “Capital Raise”);

 

WHEREAS, it is a condition
precedent for the Capital Raise that the Company and Executive enter into this Agreement; and

 

WHEREAS,
the Company, the investment bank and Executive seek to induce potential investors to consummate their investment in the Company
as contemplated in the Capital Raise, and to such ends, seek to satisfy a condition precedent by entering into this Agreement;

 

WHEREAS, this agreement
shall supersede any and all prior agreements, whether oral or written, related to the Executive’s duties and the Initial
Shares;

 

WHEREAS, the Company
desires to employ the Executive to perform services for the Company, and the Executive desires to perform such services, on the
terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual promises contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.           EMPLOYMENT

 

The Company agrees
to employ the Executive, and the Executive agrees to serve the Company in an executive capacity upon the terms and conditions hereinafter
set forth.

 

2.          TERM

 

The term of this Agreement
is for a period of thirty-six (36) months, beginning on the Effective Date (the “Initial Term”). This Agreement is
automatically renewable for successive terms of twelve (12) months (each a “Renewal Term”). For purposes of this Agreement,
the Initial Term and any Renewal Term are hereinafter collectively referred to as the “Term.” The Board shall provide
Executive with written notice of non-renewal at least sixty (60) days before the end of the Term.

 

    	 

    	 

    

 

3.          COMPENSATION

 

(a)          Base
Salary. The Company agrees to pay the Executive during the Term hereof a salary at the annual rate of ninety six thousand
dollars ($96,000). All salary, bonus, or other compensation payable to the Executive shall be subject to the customary withholding,
FICA, medical and other tax and other employment taxes and deductions as required by federal, state and local law with respect
to compensation paid by an employer to an employee. The Board of Directors and any committees thereof shall perform an annual review
of Executive’s salary based on a review of Executive’s performance of his duties and the Company’s other compensation
policies.

 

(b)          Incentive
Bonus. In addition to the foregoing salary, Executive shall be eligible for an annual incentive bonus (“Incentive Bonus”)
based on the review and recommendation of the Board of Directors in compliance with criteria determined by the Board of Directors.
The Incentive Bonus shall be payable annually in cash and/or equity.

 

(c)          Equity.
The Company may grant to Executive certain equity and option awards, as agreed and approved from time to time by the Board of Directors.

 

4.          DUTIES

 

The Executive is hereby
employed as Director of Product Development of the Company and shall perform the following services in connection with the general
business of the Company:

 

(a)          Duties
as Director of Product Development. Executive shall have such duties, responsibilities and authority as are commensurate and
consistent with the position of Director of Product Development of a company and as may, from time to time, be assigned to him
by the Board of Directors. Executive shall report directly to the Board of Directors and the Chief Executive Officer. During the
Term, Executive shall devote his full business time and efforts to the performance of his duties hereunder, unless otherwise explicitly
authorized by the Board. The Executive will comply and be bound by the Company’s written operating policies, procedures and
practices from time to time in effect during Executive’s employment. Executive represents and warrants that he is free to
enter into and fully perform this Agreement and the agreements referred to herein without breach of any agreement or contract to
which he is a party or by which he is bound.

 

(b)          Compliance.
The Executive hereby agrees to observe and comply with such reasonable rules and regulations of the Company as may be duly adopted
from time to time by the Company's Chief Executive Officer and Board of Directors and otherwise to carry out and perform those
orders, directions and policies stated to him from time to time, either as specified in the minutes of the proceedings of the Board
of Directors of the Company or otherwise in writing that are reasonably necessary and appropriate to carry out his duties hereunder.
Such orders, directions and policies shall be legal and shall be consistent with the Executive's position as Director of Product
Development.

 

    	 

    	 

    

 

5.          EXTENT
OF SERVICES 

 

The Executive agrees
to serve the Company faithfully and to the best of his ability and shall devote his full time, attention and energies to the business
of the Company during customary business hours. The Executive agrees to carry out his duties in a competent and professional manner
and to at all times promote the best interests of the Company. The Executive shall not, during the Term of his employment
hereunder, engage in any other business, whether or not pursued for profit. Nothing contained herein shall be construed as preventing
the Executive from investing in any other business or entity which is not in competition with the business of the Company. Nothing
contained herein shall be construed as preventing the Executive from (1) engaging in personal business affairs and other personal
matters, (2) serving on civic or charitable boards or committees, or (3) serving on the board of directors of companies that do
not compete directly or indirectly with the Company, provided however, that none of such activities materially interferes
with the performance of his duties under this Agreement and provided further that the Board of Directors approves of each such
proposed appointment which approval shall not be unreasonably withheld.

 

6.          BENEFITS
AND EXPENSES 

 

During the Term, Executive
shall be entitled to, and the Company shall provide, the following benefits in addition to those specified in Section 3:

 

(a)          Vacation.
Beginning on January 1, 2014, the Executive shall be entitled to four (4) weeks vacation in each twelve (12) month period during
the Term. Vacation may be taken at such time(s) as Executive may determine provided that such vacation does not interfere with
the Company's business operations. The Executive must use his vacation in any event by May 31 of the year next following the year
in which the vacation accrues or such vacation time shall expire. The Executive shall not be entitled to compensation for unused
vacation except that, upon termination of his employment and so long as it is consistent with section 7 herein, the Company shall
pay to the Executive for all of his accrued, unexpired vacation time. The Executive shall accrue 1.66 vacation days per month beginning
on January 1, 2014.

 

(b)          Expense
Reimbursement. The Company shall reimburse the Executive upon submission of vouchers or receipts for his out-of-pocket expenses
for travel, entertainment, meals and the like reasonably incurred by him pursuant to his employment hereunder in accordance with
the general policy of the Company as adopted by its Board of Directors from time to time.

 

(c)          Health
Insurance. The Company shall provide the Executive with health insurance in the coverages consistent with those provided to
other similarly situated executives of the Company.

 

(d)          Disability
Insurance. If the Company maintains disability insurance, then the Company shall provide a disability policy for the
Executive comparable to the policies in force for other similarly situated executives in the Company.

 

    	 

    	 

    

 

(e)          Other
Benefits. The Company shall provide to the Executive the same benefits it makes available to other similarly situated executives
of the Company as determined from time to time by the Board of Directors.         

 

7.          TERMINATION;
DISABILITY; RESIGNATION; TERMINATION WITHOUT CAUSE

 

(a)          Termination
for Cause. The Company shall have the right to terminate the Executive's employment hereunder:

 

(1)         For
Cause upon such termination, Executive shall have no further duties or obligations under this Agreement (except as provided in
Section 8) and the obligations of the Company to Executive shall be as set forth below. For purposes of this Agreement, “Cause”
shall mean:

 

(A)         Executive’s
indictment or conviction of a felony or any crime involving moral turpitude under federal, state or local law;

 

(B)         Executive’s
failure to perform (other than as a result of Executive's being Disabled), in any material respect, any of his duties or obligations
under or in accordance with this Agreement for any reason whatsoever and the Executive fails to cure such failure within ten business
days following receipt of notice from the Company;

 

(C)         Executive
commits any dishonest, malicious or grossly negligent act which is materially detrimental to the business or reputation of the
Company, or the Company’s business relationships, provided, however, that in such event the Company shall give the Executive
written notice specifying in reasonable detail the reason for the termination;

 

(D)         Any
intentional misapplication by Executive of the Company’s funds or other material assets, or any other act of dishonesty injurious
to Employer committed by Executive; or

 

(E)         Executive’s
use or possession of any controlled substance or chronic abuse of alcoholic beverages, which use or possession the Board of Directors
reasonably determines renders Executive unfit to serve in his capacity as a senior executive of the Company.

 

In the event the Company
terminates the Executive's employment for cause, then the Executive shall be entitled to receive through the date of termination:
(1) his base salary as defined in Section 3(a) hereof; and (2) the benefits provided in Section 6 hereof including all accrued
but unpaid vacation.

 

(b)          Disability.
The Company shall have the right to terminate the Executive's employment hereunder:

 

    	 

    	 

    

  

(1)         By
reason of the Executive's becoming Disabled for an aggregate period of ninety (90) days in any consecutive three hundred sixty
(360) day period (the “Disability Period”).

 

(A)         “Disabled”
as used in this Agreement means that, by reason of physical or mental incapacity, Executive shall fail or be unable to substantially
perform the essential duties of his employment with or without reasonable accommodation.

 

(B)         In
the event Executive is Disabled, during the period of such disability he shall continue to receive his base compensation in the
amount set forth in Section 3(a) hereof, which base compensation shall be reduced by the amount of all disability benefits he actually
receives under any disability insurance program in place with the Company until the first to occur of (1) the cessation of the
Disability or (2) the termination of this Agreement by the Company. During the period of Disability and prior to termination, the
Executive shall continue to receive the benefits provided in Section 6 hereof.

 

(C)         For
the purposes of this Section 7(b), any amounts to be paid to Executive by the Company pursuant to subsection (B) above, shall not
be reduced by any disability income insurance proceeds received by him under any disability insurance policies owned or paid for
by the Executive.

 

(D)         If
the Executive is terminated at the end of the Disability Period, then the Executive shall receive through the date of termination:
(1) his base salary as defined in Section 3(a) hereof; and (2) the benefits provided in Section 6 hereof including all accrued
but unpaid vacation.

 

(c)          Death.
The Company's employment of the Executive shall terminate upon his death and all payments and benefits shall cease upon such date
provided, however, that under this Agreement the estate of such Executive shall be entitled to receive through the date of termination
(1) his base salary as defined in Section 3(a) hereof and (2) the benefits provided in Section 6 hereof including all accrued but
unpaid vacation.

 

(d)          Termination
by the Executive for Good Reason.

 

The Executive may elect,
by written notice to the Company, such notice to be effective immediately upon receipt by the Company, to terminate his employment
hereunder if:

 

(1)         The
Company sells all or substantially all of its assets and the Executive is not retained or otherwise has his employment terminated;

 

    	 

    	 

    

 

			

(2)         The
Company merges or consolidates with another business entity in a transaction immediately following which the holders of all of
the outstanding shares of the voting capital stock of the Company own less than a majority of the outstanding shares of the voting
capital stock of the resulting entity (whether or not the resulting entity is the Company); provided, however, that the Executive
shall not be permitted to terminate his employment under this subsection unless he notifies the Company in writing that he does
not approve of the directors selected to serve on the Board after the merger or similar transaction described herein;

 

			

(3)         More
than fifty (50%) percent of the outstanding shares of the voting capital stock of the Company are acquired by a person or group
(as such terms are used in Section 13(d) of the Securities Exchange Act of 1934, as amended), which person or group includes neither
the Executive nor the holders of the majority of the outstanding shares of the voting capital stock of the Company on the date
hereof; provided, however, that the Executive shall not be permitted to terminate his employment under this subsection unless he
notifies the Company in writing that he does not approve of the directors selected to serve on the Board after the merger or similar
transaction described herein;

 

(4) The
Company defaults in making any of the payments required under this Agreement and said default continues for a one hundred eighty
(180) day period after the Executive has given the Company written notice of the payment default.

. 

If the Executive elects
to terminate his employment hereunder pursuant to this Section 7(d), then (1) the Company shall continue to pay to the Executive
his salary as provided in Section 3(a) hereof through the end of the current Term; (2) the Company shall continue to provide to
the Executive the benefits provided in Section 6 hereof through the end of the current Term; and (3) all of the options granted
to the Executive hereunder to purchase shares of the common stock of the Company shall vest immediately and the term of the option
shall continue for the period specified in the option had the employment of the Executive not been so terminated.

 

(e)          Resignation.
If the Executive voluntarily resigns during the Term of this Agreement or any Renewal Term other than pursuant to Section 7(d)
hereof, then all payments and benefits shall cease on the effective date of resignation, provided that under this Agreement the
Executive shall be entitled to receive through the date of such resignation (1) his base salary as defined in Section 3(a) hereof
and (2) the benefits provided in Section 6 hereof including all accrued but unpaid vacation.

 

(f)          Recoupment
of Initial Shares. If Executive’s employment is terminated (i) by the Company for Cause, (ii) by Executive breaching
this Agreement for any reason whatsoever, or (iii) by Executive without Good Reason, then the following percentages of Initial
Shares shall be subject to immediate recoupment by the Company:

 

	Termination Date	 	Percentage of Initial Shares Subject to Recoupment
	From Effective Date through June 30, 2014	 	90%
	July 1, 2014 through June 30, 2015	 	66%
	July 1, 2015 through June 30, 2016	 	33%

 

    	 

    	 

    

 

For the avoidance of
doubt, if Executive is employed under this Agreement on July 1, 2016, this Section 7(f) shall no longer be in effect and Executive’s
Initial Shares shall not be subject to recoupment by the Company. In addition, this Section 7(f) shall not subject any other compensation
given to the Executive under Section 3(a) or 3(b) hereof to recoupment by the Company.

 

8.          CONFIDENTIALITY;
RESTRICTIVE COVENANTS; NON COMPETITION

 

(a)          Non-Disclosure
of Information.

 

(1) The Executive
recognizes and acknowledges that by virtue of his position as a key executive, he will have access to the lists of the Company's
referral sources, suppliers, advertisers and customers, financial records and business procedures, sales force and personnel, programs,
software, selling practices, plans, special methods and processes for electronic data processing, special techniques for testing
commercial and sales materials and products, custom research services in product development, marketing strategy, product manufacturing
techniques and formulas, and other unique business information and records (collectively “Proprietary Information”),
as same may exist from time to time, and that they are valuable, special and unique assets of the Company's business. The Executive
also may develop on behalf of the Company a personal acquaintance with the present and potential future clients and customers of
the Company, and the Executive’s acquaintance may constitute the Company’s sole contact with such clients and customers.

 

(2)         The
Executive will not, without the prior written consent of the Company, during the Term of his employment or any time thereafter,
except as may be required by competent legal authority or as required by the Company to be disclosed in the course of performing
Executive’s duties under this Agreement, disclose trade secrets or other confidential information about the Company, including
but not limited to Proprietary Information, to any person, firm, corporation, association or other entity for any reason or any
purpose whatsoever or utilize such Proprietary Information for his own benefit or the benefit of any third party; .provided, however,
that nothing contained herein shall prohibit the Executive from using his personal acquaintance with any clients or customers of
the Company at any time in a manner that is not inconsistent with their remaining as clients or customers of the Company.

 

(3)         All
equipment, records, files, memoranda, computer print-outs and data, reports, correspondence and the like, relating to the business
of the Company which Executive shall use or prepare or come into contact with shall remain the sole property of the Company. The
Executive shall immediately turn over to the Company all such material in Executive's possession, custody or control at such time
as this Agreement is terminated.

 

(4)         “Proprietary
Information” shall not include information that was a matter of public knowledge on the date of this Agreement or subsequently
becomes public knowledge other than as a result of having been revealed, disclosed or disseminated by Executive, directly or indirectly,
in violation of this Agreement.

 

    	 

    	 

    

 

(b)          Non-Solicitation.
The Executive covenants and agrees that during the term of his employment, and for a two (2) year period immediately following
the end of the Term of or earlier termination of this Agreement, regardless of the reason therefor, the Executive shall not solicit,
induce, aid or suggest to: (1) any employee to leave such employ, (2) any contractor, consultant or other service provider to terminate
such relationship, or (3) any customer, agency, vendor, or supplier of the Company to cease doing business with the Company.

 

(c)          Non-Competition.
For purposes of this Section 8(c) the parties agree that the “business of the Company” shall be defined to include
the development, manufacture, packaging, advertising, marketing, distribution and sale of turf or turf related products.

 

The Executive covenants
and agrees that during the Term, Executive shall not engage in any activity or render service in any capacity, directly or indirectly,
(whether as principal, director, officer, investor, employee, consultant or otherwise) for or on behalf of any person or persons
or entity in the United States or anywhere else in the world if such activity or service directly or indirectly involves or relates
to any (1) business which is in competition with the business of the Company or (2) other business acquired or begun by the Company
during the period of the Executive’s employment hereunder but in the latter event only if the Executive was directly involved
in the operation of such other business. It is understood and agreed that nothing herein contained shall prevent the Executive
from engaging in discussions concerning business arrangements to become effective upon the expiration of the term of this covenant
not to compete.

 

(d)          Enforcement.
In view of the foregoing, the Executive acknowledges and agrees that it is reasonable and necessary for the protection of the good
will, business, trade secrets, confidential information and Proprietary Information of the Company that he makes the covenants
in this Section 8 and that the Company will suffer irreparable injury if the Executive engages in the conduct prohibited by Section
8 (a), (b) or (c) of this Agreement. The Executive agrees that upon a breach, threatened breach or violation by him of any of the
foregoing provisions of this Section 8, the Company, in addition to all other remedies it may have including an action at law for
damages, shall be entitled as a matter of right to injunctive relief, specific performance or any other form of equitable relief
in any court of competent jurisdiction without being required to post bond or other security and without having to prove the inadequacy
of the available remedies at law, to enjoin and restrain the Executive and each and every other person, partnership, association,
corporation or organization acting in concert with the Executive, from the continuance of any action constituting such breach.
The Company shall also be entitled to recover from the Executive all of its reasonable costs incurred in the enforcement of this
Section 8 including its reasonable legal fees. The Executive acknowledges that the terms of Section 8(a), (b) and (c) are reasonable
and enforceable and that, should there be a violation or attempted or threatened violation by the Executive of any
of the provisions contained in these subsections, the Company shall be entitled to relief by way of injunction, specific performance
or other form of equitable relief. In the event that any of the foregoing covenants in Sections 8 (a), (b) or (c) shall be deemed
by any court of competent jurisdiction, in any proceedings in which the Company shall be a party, to be unenforceable because of
its duration, scope, or area, it shall be deemed to be and shall be amended to conform to the scope, period of time and geographical
area which would permit it to be enforced.

 

    	 

    	 

    

 

(e)          Independent
Covenants. The Company and the Executive agree that the covenants contained in this Section 8 shall each be construed as a
separate agreement independent of any of the other terms and conditions of this Agreement, and the existence of any claim by the
Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense by the Executive
to the Company’s enforcement of any of the covenants of this Section 8.

 

9.          DISCLOSURE
AND ASSIGNMENT OF RIGHTS.

 

(a)          Disclosure.
The Executive agrees that he will promptly assign to the Company or its nominee(s) all right, title and interest of the Executive
in and to any and all ideas, inventions, discoveries, secret processes, and methods and improvements, together with any and all
patents or other forms of intellectual property protection that may be obtainable in connection therewith or that may be issued
thereon, such as trademarks, service marks and copyrights, in the United States and in all foreign countries, which the Executive
may invent, develop, or improve or cause to be invented developed or improved, on behalf of the Company while engaged in Company
related decisions, during the Term or within six (6) months after the Term or earlier termination of this Agreement, which are
or were related to the scope of the Company’s business or any work carried on by the Company or to any problems and projects
specifically assigned to the Executive. All works and writings which relate to the Company’s business are
works for hire under the Copyright Act, and any and all copyrights therefor shall be placed in the name of and inure to the benefit
of the Company.

 

(b)          Assignment
of Interest. The Executive agrees to disclose immediately to duly authorized representatives of the Company any ideas, inventions,
discoveries, processes, methods and improvements covered by the terms of this Section 9 and to execute, at the Company’s
expense, all documents reasonably required in connection with the Company’s application for appropriate protection and registration
under the federal and foreign patent, trademark, and copyright law and the assignment thereof to the Company’s nominee (s).
The Executive hereby appoints the Company’s Chairman as true and lawful attorney in fact with full powers of substitution
and delegation to execute acknowledge and deliver any such instruments and assignments, which the Executive shall fail or refuse
to execute or deliver.

 

10.          INDEMNIFICATION.

 

The
Company shall indemnify the Executive to the maximum extent permitted under the Nevada Revised Statutes, or any successor thereto,
and shall promptly advance any expenses incurred by the Executive prior to the final disposition of the proceeding to which such
indemnity relates upon receipt from the Executive of a written undertaking to repay the amount so advanced if it shall be determined
ultimately that the Executive is not entitled to indemnity under the standards set forth in the Nevada Revised Statutes or its
successor. The Employer shall use commercially reasonable efforts to obtain and maintain throughout the Term of the employment
of the Executive hereunder directors’ and officers’ liability insurance for the benefit of the Executive. The indemnification
obligations of the Company under this Section 10 shall survive the termination of the Term or of this Agreement for any reason
whatsoever unless the Agreement is terminated for cause.

 

    	 

    	 

    

 

11.         NOTICES.

 

(a)          Any
and all notices or other communications given under this Agreement shall be in writing and shall be deemed to have been duly given
on (1) the date of delivery, if delivered in person to the addressee, (2) the next business day if sent by overnight courier,
or (3) three (3) days after mailing, if mailed within the continental United States, postage prepaid, by certified or registered
mail, return receipt requested, to the party entitled to receive same, at his or its address set forth below.

 

The Company:

Sports Field Holdings, Inc.

1106 Carroll Street

Pawnee, IL 62558

 

If to the Executive:

 

Executive’s address specified above.

 

(b)          The
parties may designate by notice to each other any new address for the purposes of this Agreement as provided in this Section 11.

 

12.         MISCELLANEOUS
PROVISIONS

 

(a)          This
agreement represents the entire Agreement between the parties and supersedes any prior agreement or understanding between them
with respect to the subject matter hereof. No provision hereof may be amended, modified, terminated, or revoked except by a writing
signed by all parties hereto.

 

(b)          This
Agreement shall be binding upon parties and their respective heirs, legal representatives, and successors. Subject to the provisions
of Section 7(d) hereof, the rights and interests of Company hereunder may be assigned to (1) a subsidiary or affiliate of the
Company or (2) a successor business or successor business entity that is not a subsidiary or affiliate of the Company without
the Executive's prior written consent; provided, however, that in either case the assignee continues the same business of the
Company. The rights, interests and obligations of Executive are non-assignable.

 

(c)          No
waiver of any breach or default hereunder shall be considered valid unless in writing and signed by the party against whom the
waiver is asserted, and no such waiver shall be deemed the waiver of any subsequent breach or default of the same or similar nature.

 

(d)          If
any provision of this Agreement shall be held invalid or unenforceable, such invalidity or unenforceability shall affect only
such provision and shall not in any manner affect or render invalid or unenforceable any other severable provision of this Agreement,
and this Agreement shall be carried out as if any such invalid or unenforceable provision were not contained herein.

 

    	 

    	 

    

 

(e)          The
captions and headings contained in this Agreement are for convenience only and shall not be construed as a part of this Agreement.

 

(f)          Wherever
it appears appropriate from the context, each term stated in this the singular or the plural shall include the singular and the
plural.

 

(g)          The
parties hereto agree that they will take such action and execute and deliver such documents as may be reasonably necessary to
fulfill the terms of this Agreement.

 

(h)          The
agreements and covenants set forth in Section 8 above shall survive termination or expiration of this Agreement.

 

(i)          The
Executive represents and warrants that he is not subject to any prohibition or restriction, oral or written, preventing him from
entering into this Agreement and undertaking his duties hereunder.

 

(j)          The
Executive acknowledges that he has consulted with counsel and been advised of his rights in connection with the negotiation, execution
and delivery of this Agreement including in particular Section 8 of this Agreement.

 

13.         Governing
Law. The Agreement shall be construed in accordance with the laws of the State of New Jersey and any dispute under this Agreement
will only be brought in the state and federal courts located in the State of New Jersey.

 

14.         Waiver
of Jury Trail. THE EXECUTIVE HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BASED ON THIS AGREEMENT, OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF OR BETWEEN
ANY PARTY HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE COMPANY ENTERING INTO THIS AGREEMENT. THE COMPANY’S
REASONABLE RELIANCE UPON SUCH INDUCEMENT IS HEREBY ACKNOWLEDGED.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Employment Agreement on the date first above written.

 

	 	SPORTS FIELD HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Joseph DiGeronimo
	 	 	Name: Joseph DiGeronimo
	 	 	Title: Chief Executive Officer
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	/s/ Daniel Daluise
	 	Daniel DaluisePROMISSORY
NOTE SECURED BY DEEDS OF TRUST

 

	
        $7,570,000.00
	Texas
		
        June 12, 2014

 

FOR VALUE RECEIVED,
the undersigned (“Borrower”) promises to pay to SILVERGATE BANK, a California corporation (“Lender”),
or order, during regular business hours at Silvergate Bank, 4275 Executive Square, Suite 800, La Jolla, California 92037-1492,
Attention: Commercial Lending Department, or at such other place as Lender may from time to time designate by written notice to
Borrower, with sufficient information to identify the source and application of such payment, the sum of up to Seven Million Five
Hundred Seventy Thousand Dollars ($7,570,000.00), together with interest on the balance of outstanding principal from the disbursement
dates thereof at the per annum rate set forth below. All calculations of interest hereunder shall be computed on the basis of a
360 day year for the actual number of days elapsed.

 

1.
Interest Rate. The unpaid principal balance under this Note shall bear interest at the rate (the “Contract
Rate”) equal to the lesser of (i) the maximum lawful interest rate or (ii) one percentage (1.00%) points over the “PRIME
RATE” as published in The Money Rates column of The Wall Street Journal from time to time. Adjustments to the Contract Rate
shall be made on a daily basis (with reference to the PRIME RATE most recently published in The Wall Street Journal on such day
or if The Wall Street Journal is not published on such date then the next earliest date upon which The Wall Street Journal is
published). If more than one “Prime Rate” is published in The Wall Street Journal for a day, the highest of such “Prime
Rates” shall be used. In the event that The Wall Street Journal is no longer published or ceases to publish the “Prime
Rate”, Lender may substitute another reasonable publication publishing the “Prime Rate”. In the event that “Prime
Rates” are no longer generally published or are limited, regulated or administered by a governmental or quasi-governmental
body, Lender may substitute another rate approximating the “Prime Rate” in its reasonable discretion (and which substitute
rate may be reasonably adjusted by Lender to the effect that such substitute rate will provide for an interest rate equivalent
to the Contract Rate which would have been effective if the “Prime Rate” were published). Notwithstanding the above
provisions, in no event may the Contract Rate be less than four and one-quarter percent (4.25%) per annum.

 

2.
Monthly Payments of Principal and Interest.

 

2.1
First Month. Commencing with the date of the initial disbursement of funds through and including July 4,
2014, in which such disbursement occurs, interest only shall be payable in advance on the date of this Note at the Contract Rate.
Interest for such partial month shall be computed on the basis of a 360-day year and shall be equal to the sum of a per diem interest
charge (for each day the principal balance hereof is outstanding during such partial month) equal to the product of (a) 1/360
and (b) the Contract Rate and (c) the outstanding principal balance hereunder for the day in question.

 

    	 	1	Promissory Note

    	 

    

 

2.2
Interest Only Monthly Payments. Commencing on August 5, 2014 and continuing
on the fifth day of each calendar month through and including July 5, 2016, Borrower shall pay interest in arrears for the prior
calendar month.

 

2.3
Monthly Payments. Commencing on August 5, 2016 and continuing on the fifth day of each of the next calendar
months thereafter through and including June 5, 2019, Borrower shall pay to Lender monthly payments of principal and interest
in an amount equal to the amount which would be sufficient to amortize the outstanding principal balance under this Note (as of
the date of such payment) at the then effective Contract Rate over the then remaining portion of an amortization period commencing
on July 5, 2016 and ending on July 4, 2041.

 

3.
Maturity Date. The entire balance of principal and accrued interest and other amounts then outstanding on
this Note are due and payable on July 5, 2019 (the “Maturity Date”). Borrower acknowledges that such balance
will not equal the regular monthly payment specified in Section 2.

 

4. Application
of Payments. Each payment hereunder shall be applied when received first to the payment of accrued interest
on the principal balance hereof from time to time remaining unpaid and then to reduce principal and then to amounts payable,
if any, into escrow accounts payable under the Loan Documents for taxes or insurance and then to any unpaid “Past Due
Charge” (as defined below); provided, however, upon the occurrence of an “Event of Default” (as defined
below), payments may be applied to any amounts secured by any of the “Deeds of Trust” (as defined below) in such
order and amounts as is designated by Lender in its sole and absolute discretion. No such application by Lender shall
constitute a cure or waiver of any default by Borrower under the applicable Deed of Trust or under this Note. Borrower hereby
waives any rights and benefits, if any, that may arise under or by virtue of California Civil Code Section 2822(a).
Without limitation of the foregoing, in the event of any partial payment hereunder, Lender shall have the sole right and
authority to determine which portion of the indebtedness evidenced hereby any partial payment may be applied against, if any;
provided that, nothing in the foregoing shall impose upon Lender any duty or obligation to accept or apply any partial
payment received by Lender hereunder or under the applicable Deed of Trust.

 

5. Default;
Acceleration. This Note is secured by those certain Deeds of Trust, Assignments of Leases and Rents, Security
Agreements and Fixture Filings of even date herewith by Borrower for the benefit of Lender (individually, a “Deed of
Trust”, and collectively, the “Deeds of Trusts”). Upon the occurrence and during the continuance
of an “Event of Default” (as defined in any of the Deeds of Trust), then, or at any time thereafter, the
whole of the unpaid principal hereof, together with accrued and outstanding interest and all other sums required to be paid
under this Note or the Deeds of Trust (including the prepayment premium hereinafter described) shall, at the election of
Lender and with prior notice of such election, become due and payable. Lender’s election may be exercised at any time
after any such event, and the acceptance of one or more payments hereon from any person thereafter shall not constitute a
waiver of Lender’s election, or of its option to make such election.

 

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6.
Past Due Charge and Past Due Interest Rate. Borrower recognizes and acknowledges that any default on any
payment, or portion thereof, due hereunder or to be made under any of the Deeds of Trust, will result in losses and additional
expenses to Lender in servicing the indebtedness evidenced hereby, and in losses due to Lender’s loss of the use of funds
not timely received. Borrower further acknowledges and agrees that in the event of any such default, Lender would be entitled
to damages for the detriment proximately caused thereby, but that it would be extremely difficult and impracticable to ascertain
the extent of or compute such damages. Therefore, if for any reason Borrower fails to pay any interest or principal required to
be paid under this Note, including any payment due at maturity or upon acceleration, or fails to pay any amounts due under any
of the Deeds of Trust, within ten (10) days of when due, Borrower shall pay to Lender, in addition to any such delinquent payment,
an amount equal to five percent (5%) of such delinquent payment (“Past Due Charge”). In addition,
upon the Maturity Date or upon the occurrence and during the continuance of an Event of Default (or upon any acceleration), interest
shall accrue hereunder at the “Past Due Rate” (as defined below). Borrower acknowledges that the Past Due Charge and
interest at the Past Due Rate agreed to hereunder represent the reasonable estimate of those damages which would be incurred by
Lender, and a fair return to Lender for the loss of the use of the funds not timely received from Borrower on account of a default
by Borrower as herein specified, established by Borrower and Lender through good faith consideration of the facts and circumstances
surrounding the transaction contemplated under this Note as of the date hereof, but that such Past Due Charge and interest at
the Past Due Rate are in addition to, and not in lieu of, any other right or remedy available to Lender. If any applicable law
proscribes the imposition of a past due charge in the amount of the Past Due Charge herein specified, or limits the rate of the
additional interest that may be charged to a rate less than the Past Due Rate herein specified, then the maximum charge or rate
permitted by such law shall be charged by Lender for purposes of this Section. As used herein, the “Past Due Rate”
shall be equal to the lesser of (i) six (6) percentage points over the Contract Rate, or (ii) the maximum rate of interest
permitted to be charged by applicable laws or regulation governing this Note until paid, such additional interest to be compounded
annually.

 

7.
Prepayment.

 

7.1 Borrower shall
have no right to prepay any principal of this Note except that, so long as no default or Event of Default exists under this Note
or any of the Deeds of Trust as of the date of such prepayment by Borrower, Borrower will have the privilege, to prepay the principal
of this Note (in whole only and not in part) upon at least thirty (30) but not more than sixty (60) days advance written notice
and subject to the following terms and conditions:

 

A. Premium.
Concurrently with such prepayment, Borrower shall pay all accrued and unpaid interest under this Note (whether or not then
due), all amounts then due under this Note or each of the Deeds of Trust and a prepayment premium equal to the following:

 

		(1)	A prepayment premium equal to three percent (3%) of the amount prepaid for a prepayment on or before
July 5, 2016; with no prepayment premium thereafter.

 

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B. EXCLUSIVE
RIGHTS. BORROWER ACKNOWLEDGES AND AGREES THAT BORROWER HAS NO RIGHTS OF PREPAYMENT OF THIS NOTE, EXCEPT AS PROVIDED ABOVE;
AND BORROWER FURTHER AGREES THAT, IF THE MATURITY OF THIS NOTE IS ACCELERATED BY LENDER BY REASON OF BORROWER’S DEFAULT AND
BORROWER OR ANY THIRD PERSON THEREAFTER SEEKS TO PAY SUCH ACCELERATED INDEBTEDNESS OR PURCHASE ANY OR ALL THE PROPERTIES (INDIVIDUALLY,
A “PROPERTY”, AND COLLECTIVELY, THE “PROPERTIES”) ENCUMBERED BY THE DEEDS OF TRUST SECURING
THIS NOTE AT FORECLOSURE SALE (WHETHER JUDICIAL OR BY THE TRUSTEE UNDER THE DEEDS OF TRUST), SUCH PAYOFF OR PURCHASE SHALL CONSTITUTE
A PREPAYMENT OF PRINCIPAL HEREUNDER AND A PREMIUM SHALL BE PAYABLE IN AN AMOUNT WHICH SHALL BE COMPUTED PURSUANT TO THIS SECTION 7
(INCLUDING THE PREPAYMENT PREMIUM).

 

8.
Costs. Borrower promises to pay to Lender, within five (5) business days after written notice from Lender,
all out-of-pocket costs, expenses, disbursements, property taxes, escrow fees, title charges and legal fees and expenses actually
incurred by Lender or its counsel (which must be reasonable provided no Event of Default has occurred and is existing) in the
negotiation, funding, enforcement or attempted enforcement, by foreclosure or otherwise, of this Note or any of the Deeds of Trust.
Without limitation on the foregoing, Borrower agrees to pay all out-of-pocket costs of collection, including attorneys’
fees and costs (whether or not for salaried attorneys regularly employed by Lender) and all costs of any action or proceeding
(including any bankruptcy proceeding or any non-judicial foreclosure or private sale) actually incurred by Lender, in the event
any payment is not paid when due, or in case it becomes necessary to enforce any other obligation of Borrower hereunder or to
protect the security for the indebtedness evidenced hereby, or for the foreclosure by Lender of any of the Deeds of Trust, or
in the event Lender is made a party to any litigation because of the existence of the indebtedness evidenced by this Note, or
because of the existence of any of the Deeds of Trust. All such costs are secured by the Deeds of Trust. The obligation of Borrower
to repay all such out-of-pocket costs and any other advances by Lender are secured the Deeds of Trust and shall be deemed to be
evidenced by this Note and shall accrue interest at the Contract Rate or the Past Due Rate, whichever is then applicable.

 

9. Waivers.
Borrower hereby waives diligence, presentment, protest and demand, notice of protest, of demand, of nonpayment, of dishonor
and of maturity and agrees that time is of the essence of every provision hereof; and further agrees that any such renewal,
extension or modification, or the release or substitution of any person or security for the indebtedness evidenced hereby,
shall not affect the liability of any of such parties for the indebtedness evidenced by this Note or the obligations under
any of the Deeds of Trust. Any such renewals, extensions, modifications, releases or substitutions may be made without notice
to any of such parties.

 

10. Remedies
Cumulative. The rights and remedies of Lender as provided in this Note and in each of the Deeds of Trust shall be
cumulative and concurrent and may be pursued singly, successively or together against Borrower, any of the Properties, or any
other persons or entities who are, or may become liable for all or any part of this indebtedness, and any other funds,
property or security held by Lender for the payment hereof, or otherwise, at the sole discretion of Lender. Failure to
exercise any such right or remedy shall in no event be construed as a waiver or release of such rights or remedies, or the
right to exercise them at any later time. The right, if any, of Borrower, and all other persons or entities, who are, or may
become, liable for this indebtedness, to plead any and all statutes of limitation as a defense is expressly waived by each
and all of such parties to the full extent permissible by law.

 

    	 	4	Promissory Note

    	 

    

 

11. Deeds
of Trust Provisions Regarding Transfers; Successors. Each of the Deeds of Trust securing this Note contains
provisions for the acceleration of the indebtedness evidenced hereby upon a “Transfer” (as therein defined).
Subject to the limitations on Transfer specified in each of the Deeds of Trust, the provisions hereof shall be binding on the
heirs, legal representatives, successors and assigns of Borrower and shall inure to the benefit of Lender and the successors
and assigns of Lender.

 

12. Partial
Release. Lender shall consent to causing a release from the lien of the applicable Deed
of Trust any applicable Property, such Property to be released, the “Released Property”,
but only upon the satisfaction of all of the following conditions:

 

a. Lender shall
have received from Borrower at least thirty (30) days' prior written notice of the date proposed for such release (the
“Release Date”) and the identification of the Released Property;

 

b. No Event of
Default in any of the Deeds of Trust shall have occurred and be continuing as of the date of such notice and the Release Date
and no event or condition shall exist that, with the passage of time or giving of notice, would constitute an Event of
Default in any of the Deeds of Trust;

 

c. The release
shall occur contemporaneously with the sale of the Released Property pursuant to an arm's-length, bona fide contract to a
person who is not an affiliate of Borrower or any person or entity with any interest in Borrower, whether direct or
indirect;

 

d. Borrower shall
pay to Lender on the Release Date an amount equal to the “Release Price” amount as indicated for such Released Property
on Exhibit “B” attached to this Note (such greater amount, the “Release Price”). The Release Price
shall be applied to the Loan in such order as determined by Lender, including the applicable prepayment premium;

 

e. Borrower shall
have provided Lender with evidence reasonably acceptable to Lender that the Released Property has been formally designated as a
distinct tax lot separate from the remaining Properties;

 

f. Borrower shall
have provided Lender with evidence reasonably acceptable to Lender that the Released Property and the remaining portion of the
Properties shall be legal lots or parcels in material compliance with the all Texas subdivision acts and local ordinances thereunder
and that the remaining portion of the Property has adequate ingress and egress;

 

g. If requested by
Lender, Borrower, at its sole cost and expense, shall have delivered to Lender a T-38 endorsement (or comparable endorsement) to
the mortgagee policy of title insurance delivered to Lender on the date hereof in connection with the Deeds of Trust insuring that,
after giving effect to such release, such title policy coverage has not been terminated or reduced by such releases; and

 

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h. Borrower shall
have paid all of Lender's reasonable out-of-pocket costs and expenses actually incurred by Lender, including, without limitation,
attorneys' fees and expenses, in connection with the release of the Released Property.

 

Upon payment of the Release
Price and the satisfaction of the other conditions set forth in this Section 12 for the release of the Released Property, the security
interests and liens of Lender under the applicable Deed of Trust shall be released from the Released Property, and Lender will
execute and deliver any agreements reasonably requested by Borrower to release and terminate the lien of the applicable Deed of
Trust as to the Released Property; provided, however, that such release and termination shall be without recourse
to Lender and made without any representation or warranty. Upon the release and termination of Lender's security interests and
liens under the applicable Deed of Trust and the other Loan Documents relating to the Released Property, all references in the
applicable Deed of Trust and the other Loan Documents relating to the Released Property shall be deemed deleted, except as otherwise
provided herein with respect to indemnities.

 

13.
Miscellaneous.

 

13.1 Manner
of Payment; No Offsets. All payments due hereunder shall be made in lawful money of the United States of
America. Such payments shall be made by check or, upon maturity and otherwise at the option of Lender, by transferring the
payment in federal or immediately available funds by bank wire or interbank transfer for the account of Lender without
presentment or surrender of this Note, provided; however, that any payment of principal or interest received after 5:00 p.m.
Pacific time shall be deemed to have been received by Lender on the next business day and shall bear interest accordingly.
All sums due hereunder shall be payable without offset, demand, abatement or counter-claim of any kind or nature whatsoever,
all of which are hereby waived by Borrower.

 

13.2 Fee
for Statement. For any statement regarding the obligations evidenced hereby to be furnished by
Lender, Borrower shall pay the fee then charged by Lender therefor, not to exceed, however, the maximum fee, if any, allowed
by law to be charged by Lender at the time such statement is requested.

 

13.3 No
Amendment or Waiver Except in Writing. This Note may be amended or modified only by a writing duly executed by
Borrower and Lender, which expressly refers to this Note and the intent of the parties so to amend this Note. No provision of
this Note will be deemed waived by Lender, unless waived in a writing executed by Lender, which expressly refers to this
Note, and no such waiver shall be implied from any act or conduct of Lender, or any omission by Lender to take action with
respect to any provision of this Note or any of the Deeds of Trust. No such express written waiver shall affect any other
provision of this Note, or cover any default or time period or event, other than the matter as to which an express written
waiver has been given. Without limitation, acceptance of any partial payment shall not constitute a waiver of any of
Lender’s rights, including the right to insist on immediate payment of all amounts due and payable.

 

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13.4 No
Intent of Usury. None of the terms and provisions contained in this Note, or in any of the Deeds of Trust, or in
other documents or instruments related hereto, shall ever be construed to create a contract for the use, forbearance or
detention of money requiring payment of interest or any other consideration that constitutes interest under applicable law,
as the case may be, at a rate in excess of the maximum interest permitted to be charged by applicable laws or regulation
governing this Note (“Usury Laws”). Borrower shall never be required to pay interest or any other
consideration that constitutes interest under applicable law, as the case may be, on this Note in excess of the maximum
interest that may be lawfully charged under such Usury Laws, as made applicable by the final judgment of a court of competent
jurisdiction, and the provisions of this Section shall control over all other provisions hereof and of any other instrument
executed in connection herewith or executed to secure the indebtedness evidenced hereby, which may be in apparent conflict
with this Section. If Lender collects monies which are deemed to constitute interest which would otherwise increase the
effective interest rate on this Note to a rate in excess of that permitted to be charged by such Usury Laws, all such sums
deemed to constitute interest in excess of the maximum rate shall, at the option of Lender, either be credited to the payment
of principal or returned to Borrower.

 

13.5 Governing
Law. This Note shall be governed by and construed and enforced in accordance with the laws of the State of Texas
(without regard to conflicts of laws), except where federal law is applicable (including, without limitation, any applicable
federal usury ceiling or other federal law preempting state usury laws).

 

13.6 Certain
Rules of Construction. The headings of each Section of this Note are for convenience only and do not define or limit
any provision of this Note. The provisions of this Note shall be construed as a whole according to their common meaning, not
strictly for or against any party, or any person or entity, who is or may become liable for the payment of this Note, and to
achieve the objectives of the parties unconditionally to impose on Borrower the indebtedness evidenced by this Note. Whenever
the words “including”, “includes” or “include” are used in this Note (including any
Exhibit hereto), they shall be read non-exclusively as though the phrase “, without limitation,” immediately
followed the same.

 

13.7 Severability.
If any term of this Note, or the application thereof to any person or circumstances, shall be invalid or unenforceable, the
remainder of this Note, or the application of such term to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each term of this Note shall be valid and enforceable to the
fullest extent permitted by law.

 

13.8 Notices.
Any notice which a party is required or may desire to give the other shall be in writing and may be sent by personal
delivery or by mail (either [i] by United States registered or certified mail, return receipt requested, postage prepaid, or
[ii] by Federal Express or similar generally recognized overnight carrier regularly providing proof of delivery), addressed
as follows (subject to the right of a party to designate a different address for itself by notice similarly given at least
15 days in advance):

 

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To Lender:

 

Silvergate Bank

4275 Executive Square

Suite 800

La Jolla, California 92037-1492

Attention: Commercial Loan Department

 

To Borrower:

 

Reven Housing Texas, LLC

7911 Herschel Avenue

Suite 201

La Jolla, California 92037

Attention: Thad Meyer

 

Any notice so given by mail shall be deemed
to have been given as of the date of delivery (whether accepted or refused) established by U.S. Post Office return receipt or the
overnight carrier’s proof of delivery, as the case may be. Any such notice not so given shall be deemed given upon receipt
of the same by the party to whom the same is to be given.

 

14.
Lender Assignment. Lender may assign, sell or transfer at any time this Note (and any documents relating
thereto and any interest therein).

 

14. Addendum:
The provisions of Exhibit “A” attached to this Note are incorporated herein and made a part of this Note by
this reference.

 

TO THE MAXIMUM EXTENT
PERMITTED BY LAW, BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, THE LOAN, OR ANY OTHER LOAN DOCUMENT, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF BORROWER OR LENDER OR ANY EXERCISE
BY ANY PARTY OF THEIR RESPECTIVE RIGHTS UNDER THE LOAN DOCUMENTS OR IN ANY WAY RELATING TO THE LOAN OR ANY OF THE PROPERTIES OR
THIS NOTE. THIS WAIVER IS A MATERIAL INDUCEMENT FOR LENDER TO MAKE THE LOAN TO BORROWER.

 

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IN WITNESS WHEREOF,
this Note is executed as of the date first written above.

 

	 	“BORROWER”	 
	 	 	 	 	 
	 	REVEN HOUSING TEXAS, LLC,	 
	 	a Delaware limited liability company	 
	 	 	 
	 	By:	Reven Housing REIT, Inc.,	 
	 	 	a Maryland corporation,	 
	 	 	its Sole Member	 
	 	 	 	 	 
	 	 	By:	/s/ Thad Meyer
	 	 	Name:	Thad Meyer	 
	 	 	Title:	Chief Financial Officer	 

 

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EXHIBIT “A”

 

ADDENDUM

 

The following provisions
are made a part of the Note to which this Addendum is attached:

 

1. Non-Recourse.

 

A. Except as
provided below, Borrower shall not be personally liable for amounts due under the “Loan Documents” (as defined in
each of the Deeds of Trust), other than under that certain Unsecured Environmental Indemnity of even date herewith by
Borrower in favor of Lender and under Section 6.20 of each of the Deeds of Trust for which Borrower shall be
personally liable. Borrower shall be personally liable to Lender for any deficiency, loss or damage suffered by Lender
because of: (1) Borrower's commission of a criminal act, (2) the failure to comply with provisions of the Loan
Documents prohibiting the sale, transfer or encumbrance of any of the Properties or any interest therein, or any other
collateral, or any direct or indirect ownership interest in Borrower, including, without limitation, upon the occurrence of
any Transfer; (3) physical waste to any of the Properties, whether permissive or otherwise, (4) any bankruptcy,
insolvency, liquidation, reorganization, creditor assignment or similar relief or proceeding relating to Borrower or any
“Additional Essential Party” (as defined in any of the Deeds of Trust), (5) the removal or disposal of any
personal property, improvements, or fixtures in violation of the terms of any of the Deeds of Trust or any of the Loan
Documents unless replaced by personal property of reasonably equivalent value, (6) the misapplication by Borrower or any
Additional Essential Party of any funds derived from any of the Properties, including security deposits, insurance
proceeds and condemnation awards; (7) theft, fraud, or misrepresentation by Borrower or any Additional Essential Party
made in or in connection with the Loan Documents or the Loan; (8) (i) Borrower’s collection of rents more than one
month in advance; or (ii) entering into or modifying leases, or receipt of monies by Borrower or any Additional Essential
Party in connection with the modification of any leases, provided that (ii) herein is in violation of any of the Deeds of
Trust or any of the other Loan Documents; (9) Borrower's failure to apply proceeds of rents or any other payments in
respect of the leases and other income of any of the Properties or any other collateral to the costs of maintenance and
operation of any of the Properties and to the payment of taxes, lien claims, insurance premiums, debt service and other
amounts due under the Loan Documents or failure to deliver to Lender rents or security deposits upon request after the
occurrence of an Event of Default but only to the extent such funds are or were in Borrower's possession or control
(including funds held by any management company); (10) the interference, whether direct or indirect, by Borrower or any
affiliate of Borrower with Lender's exercise of rights or remedies under the Loan Documents (including any foreclosure
action or sale), whether by making any motion, bringing any counterclaim, claiming any defense, seeking any injunction or
other restraint, commencing any action seeking to consolidate any such foreclosure or other enforcement with any other action
or otherwise (except this clause (10) shall not apply if Borrower or such affiliate successfully contests such enforcement
and obtains a final non-appealable order as to the same), and including reasonable out-of-pocket attorneys’ fees and
costs incurred by Lender in connection therewith; (11) Borrower's failure to maintain insurance as required by the Loan
Documents or to pay any taxes or assessments affecting any of the Properties, provided that Borrower has the necessary cash
flow from the Properties to pay such expenses, but there shall be liability under this clause (11) for failure to maintain
required insurance, even if there is insufficient cash flow unless Borrower provides Lender with thirty (30) days’
advance written notice of any cancellation or termination, provided that Borrower has the necessary cash flow from the
Properties to pay such expenses; (12) intentional damage or destruction to any of the Properties caused by the acts or
omissions of Borrower, its agents, employees, or contractors; (13) Borrower's failure to pay for any reasonable loss,
liability or expense (including reasonable out-of-pocket attorneys' fees and the reasonable out-of-pocket costs and expenses
of in-house counsel allocated by Lender) incurred by Lender arising out of any claim or allegation made by Borrower, its
successors or assigns, or any creditor of Borrower, that this Note or the transactions contemplated by the Loan Documents
establish a joint venture, partnership or other similar arrangement between Borrower and Lender; (14) a
“Transfer” (as defined in any of the Deeds of Trust), other than a “Permitted Transfer” (as defined
in the Loan Agreement) occurs without the prior written consent of Lender (in its sole and absolute discretion); and
(15) all actual out-of-pocket costs and expenses, including attorneys’ fees and costs, incurred by Lender in
collecting any amounts due under the Loan Documents.

 

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B. None of the
foregoing limitations on the personal liability of Borrower shall modify, diminish or discharge the personal liability of (i)
Borrower under the Unsecured Environmental Indemnity, or (ii) any guarantor under any guaranty. 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 provision
of the United States Bankruptcy Code, as such sections may be amended, or corresponding or superseding sections of the
Bankruptcy Amendments and Federal Judgeship Act of 1984, to file a claim for the full amount due to Lender under the Loan
Documents or to require that all collateral shall continue to secure the amounts due under the Loan Documents.
Notwithstanding anything to the contrary contained in any Loan Document, nothing shall be deemed in any way to impair, limit
or prejudice the rights of Lender: (A) in foreclosure proceedings or in any ancillary proceedings brought to facilitate
Lender's foreclosure on any of the Properties or any portion thereof; (B) to exercise any specific rights or remedies
afforded Lender under any other provisions of the Loan Documents or by law or in equity; (C) to recover from Borrower
the amount of any unpaid taxes, assessments, and/or utility charges affecting any of the Properties and to collect from
Borrower any sums expended by Lender in fulfilling the obligations of Borrower, as lessor, under any leases affecting any of
the Properties; and/or (D) to recover from Borrower all out-of-pocket legal fees and other expenses incurred by Lender
in enforcing any rights it may have under the Loan Documents following the occurrence and during the continuance of an Event
of Default.

 

    	 	 	Promissory Note

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