Document:

Exhibit 10.2

 

LIMITED RECOURSE GUARANTY

 

THIS LIMITED RECOURSE
GUARANTY (“Guaranty”) is made as of this 24th day of July, 2020, by American
Finance OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an address at 650 Fifth Avenue, 30th Floor,
New York, New York 10019 (the “Guarantor”), in favor of COLUMN FINANCIAL, INC., a Delaware corporation
(“Column”; Column, together with any other Co-Lender under the Loan and each of their respective successors,
transferees and/or assigns, collectively, the “Lender”).

 

RECITALS:

 

A.               
Lender and each of the entities listed on Schedule I attached hereto (individually or collectively, as the context
may require, “Borrower”) have entered into a certain Loan Agreement (as it may hereafter be modified, supplemented,
extended, or renewed and in effect from time to time, the “Loan Agreement”), which Loan Agreement sets forth
the terms and conditions of a loan (said loan, together with all advances which may hereafter be made pursuant to the Loan Agreement,
being referred to herein as the “Loan”) to Borrower secured by certain Properties as defined and more particularly
described in the Loan Agreement.

 

B.                
Guarantor is an Affiliate of Borrower and will receive direct or indirect benefit from Lender’s making of the Loan
to Borrower.

 

C.                 The
Loan is evidenced by those certain promissory notes executed by Borrower and payable to the order of each Lender (collectively,
as each may hereafter be renewed, extended, supplemented, increased or modified and in effect from time to time, and all other
notes given in substitution therefor, or in modification, renewal, or extension thereof, in whole or in part, the “Note”).

 

D.               
Any capitalized term used and not defined in this Guaranty shall have the meaning given to such term in the Loan Agreement.
This Guaranty is one of the Loan Documents described in the Loan Agreement.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and as a material inducement to Lender
to extend credit to Borrower, Guarantor hereby guarantees to Lender the prompt and full payment and performance of the Guaranteed
Recourse Obligations of Borrower (defined below), this Guaranty being upon the following terms and conditions:

 

1.                  Guaranteed
Recourse Obligations of Borrower. Guarantor hereby unconditionally and irrevocably guarantees to Lender the punctual payment
when due, and not merely the collectability, whether by lapse of time, by acceleration of maturity, or otherwise, of the Guaranteed
Recourse Obligations of Borrower (hereinafter defined). As used herein, the term “Guaranteed Recourse Obligations of
Borrower” shall mean all obligations and liabilities of Borrower for which Borrower shall be personally liable under
and pursuant to Article 13 of the Loan Agreement.

 

     

     

    

 

2.                  Certain Agreements and Waivers by Guarantor.

 

(a)               
Guarantor hereby agrees that each of the following shall constitute Events of Default hereunder (i) the occurrence of a
default by Guarantor in payment of the Guaranteed Recourse Obligations of Borrower, or any part thereof, when such indebtedness
becomes due, which default continues for five (5) Business Days following notice thereof to Guarantor and (ii) the dissolution,
bankruptcy and/or insolvency of any Guarantor.

 

(b)               
Upon the occurrence of any Event of Default hereunder, the Guaranteed Recourse Obligations of Borrower, for purposes of
this Guaranty, shall be deemed immediately due and payable at the election of Lender, provided the same are due and payable under
the Loan Agreement. Guarantor shall, on demand, pay the Guaranteed Recourse Obligations of Borrower to Lender as and when they
become due. It shall not be necessary for Lender, in order to enforce such payment, first to (i) institute suit or pursue or exhaust
any rights or remedies against Borrower or others liable for the Debt, (ii) enforce any rights against any security that shall
ever have been given to secure the Debt, (iii) join Borrower or any others liable for the payment or performance of the Guaranteed
Recourse Obligations of Borrower or any part thereof in any action to enforce this Guaranty and/or (iv) resort to any other means
of obtaining payment or performance of the Guaranteed Recourse Obligations of Borrower.

 

(c)                Suit
may be brought or demand may be made against all parties who have signed this Guaranty or any other guaranty covering all or any
part of the Guaranteed Recourse Obligations of Borrower, or against any one or more of them, separately or together, without impairing
the rights of Lender against any party hereto.

 

(d)               
In the event any payment by Borrower or any other Person on account of the Guaranteed Recourse Obligations of Borrower to
Lender is held to constitute a preference, fraudulent transfer or other voidable payment under any bankruptcy, insolvency or similar
law, or if for any other reason Lender is required to refund such payment or pay the amount thereof to Borrower or such other party,
such payment by Borrower or such other party to Lender shall not constitute a release of Guarantor from any liability hereunder
and this Guaranty shall continue to be effective or shall be reinstated (notwithstanding any prior release, surrender or discharge
by Lender of this Guaranty or of Guarantor), as the case may be, with respect to, and this Guaranty shall apply to, any and all
amounts so refunded by Lender or paid by Lender to Borrower or such other Person (which amounts shall constitute part of the Guaranteed
Recourse Obligations of Borrower), and any interest paid by Lender and any reasonable attorneys’ fees, costs and expenses
paid or incurred by Lender in connection with any such event. If acceleration of the time for payment of any amount payable by
Borrower under any Loan Document is stayed or delayed by any law or tribunal, any amounts due and payable hereunder shall nonetheless
be payable by Guarantor on demand by Lender.

 

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3.                  Subordination.
If, for any reason whatsoever, Borrower is now or hereafter becomes indebted to Guarantor:

 

(a)               
 such indebtedness and all interest thereon and all liens, security interests and rights now or hereafter existing with
respect to property of Borrower securing same shall, at all times, be subordinate in all respects to the Guaranteed Recourse Obligations
of Borrower and to all liens, security interests and rights now or hereafter existing to secure the Guaranteed Recourse Obligations
of Borrower;

 

(b)               
Guarantor shall not be entitled to enforce or receive payment, directly or indirectly, of any such indebtedness of Borrower
to Guarantor until the Guaranteed Recourse Obligations of Borrower have been fully and finally paid and performed;

 

(c)              
Guarantor hereby assigns and grants to Lender a security interest in all such indebtedness (not including distributions)
and security therefor, if any, of Borrower to Guarantor in violation of the Loan Documents now existing or hereafter arising including
any payments pursuant to debtor relief or insolvency proceedings referred to below. In the event of receivership, bankruptcy, reorganization,
arrangement or other debtor relief or insolvency proceedings involving Borrower as debtor, Lender shall have the right to prove
its claim in any such proceeding so as to establish its rights hereunder and shall have the right to receive directly from the
receiver, trustee or other custodian (whether or not an Event of Default shall have occurred or be continuing under any of the
Loan Documents), payments that are payable upon such indebtedness of Borrower to Guarantor now existing or hereafter arising in
violation of the Loan Documents, and to have all benefits of any security therefor, until the Guaranteed Recourse Obligations of
Borrower have been fully and finally paid and performed. If, notwithstanding the foregoing provisions, Guarantor should receive
any payment that is prohibited as provided above in this Section, Guarantor shall pay the same to Lender immediately, Guarantor
hereby agreeing that it shall receive the payment in trust for Lender and shall have absolutely no dominion over the same except
to pay it immediately to Lender; and

 

(d)              
Guarantor shall promptly upon request of Lender from time to time execute such documents and perform such acts as Lender
may reasonably require to evidence and perfect its interest and to permit or facilitate exercise of its rights under this Section.

 

4.                  Other
Liability of Guarantor or Borrower. If Guarantor is or becomes liable, by endorsement or otherwise, for any indebtedness owing
by Borrower to Lender other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby, and
the rights of Lender hereunder shall be cumulative of any and all other rights that Lender may have against Guarantor.

 

5.                  Assignment
by Lender. This Guaranty is for the benefit of Lender and Lender’s successors and assigns, and in the event of an assignment
by Lender of the Guaranteed Recourse Obligations of Borrower, or any part thereof, the rights and benefits hereunder, to the extent
applicable to the Guaranteed Recourse Obligations of Borrower so assigned, may be transferred with such Guaranteed Recourse Obligations
of Borrower. Guarantor waives notice of any transfer or assignment of the Guaranteed Recourse Obligations of Borrower, or any
part thereof, and agrees that failure to give notice will not affect the liabilities of Guarantor hereunder.

 

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6.                  Binding Effect. This Guaranty is binding not only on Guarantor, but also on Guarantor’s heirs, personal
representatives, successors and assigns. Upon the death of Guarantor, if Guarantor is a natural person, this Guaranty shall continue
against Guarantor’s estate as to all of the Guaranteed Recourse Obligations of Borrower, including that portion incurred
or arising after the death of Guarantor and shall be provable in full against Guarantor’s estate, whether or not the Guaranteed
Recourse Obligations of Borrower are then due and payable. If this Guaranty is signed by more than one Person, then all of the
obligations of Guarantor arising hereunder shall be jointly and severally binding on each of the undersigned, and their respective
heirs, personal representatives, successors and assigns, and the term “Guarantor” shall mean all of such Persons and
each of them individually. Without limitation of any other term, provision or waiver contained herein, Guarantor hereby acknowledges
and agrees that it has been furnished true, complete and correct copies of the Loan Documents and has reviewed the terms and provisions
thereof (including, without limitation, the Guaranteed Recourse Obligations of Borrower).

 

7.                  Nature of Guaranty. Guarantor hereby acknowledges and agrees that this Guaranty (a) is a guaranty of payment
and not only of collection and that Guarantor is liable hereunder as a primary obligor, (b) subject to Section 27 hereof, shall
only be deemed discharged after the satisfaction in full of the Guaranteed Recourse Obligations of Borrower and the Debt (without
limiting the terms of Section 27 hereof, other than any contingent liabilities in respect of which no claim has been made), (c)
shall not, except in accordance with Section 27 hereof, be reduced, released, discharged, satisfied or otherwise impacted in connection
with (i) any act or occurrence that might, but for the provisions hereof, be deemed a legal or equitable reduction, satisfaction,
discharge or release (unless Lender agrees in writing with Borrower and/or Guarantor to any such reduction, satisfaction, discharge
or release) and/or (ii) Lender’s enforcement of remedies under the Loan Documents and (d) shall survive the foregoing and
shall not merge with any resulting foreclosure deed, deed in lieu or similar instrument (if any) but shall be subject to Section
27 hereof.

 

8.                  Governing Law. The governing law and related provisions set forth in Section 17.2 of the Loan Agreement (including,
without limitation, any authorized agent provisions thereof) are hereby incorporated by reference as if fully set forth herein
(with Guarantor substituted in all places where Borrower appears thereunder) and shall be deemed fully applicable to Guarantor
hereunder. Guarantor hereby certifies that it has received and reviewed the Loan Agreement (including, without limitation, Section
17.2 thereof). In the event of any conflict or inconsistency between the terms and conditions hereof and this Section 8, this Section
8 shall control.

 

9.                  Invalidity of Certain Provisions. If any provision of this Guaranty or the application thereof to any Person
or circumstance shall, for any reason and to any extent, be declared to be invalid or unenforceable, neither the remaining provisions
of this Guaranty nor the application of such provision to any other Person or circumstance shall be affected thereby, and the remaining
provisions of this Guaranty, or the applicability of such provision to other Persons or circumstances, as applicable, shall remain
in effect and be enforceable to the maximum extent permitted by applicable Legal Requirements.

 

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10.              
Attorneys’ Fees, Costs and Expenses of Collection. Guarantor shall pay on demand all reasonable attorneys’
fees and all other costs and expenses actually incurred by Lender in the enforcement of or preservation of Lender’s rights
under this Guaranty including, without limitation, all reasonable attorneys’ fees, actual costs and expenses, investigation
costs, and all court costs, whether or not suit is filed herein, or whether at maturity or by acceleration, or whether before
or after maturity, or whether in connection with bankruptcy, insolvency or appeal, or whether in connection with the collection
and enforcement of this Guaranty against any other Guarantor, if there be more than one. Guarantor agrees to pay interest on any
expenses or other sums due to Lender under this Section 10 that are not paid when due, at a rate per annum equal to the interest
rate provided for in the Note. Guarantor’s obligations and liabilities under this Section 10 shall survive any payment or
discharge in full of the Guaranteed Recourse Obligations of Borrower.

 

11.               
Payments. All sums payable under this Guaranty shall be paid in lawful money of the United States of America
that at the time of payment is legal tender for the payment of public and private debts.

 

12.              
Controlling Agreement. It is not the intention of Lender or Guarantor to obligate Guarantor to pay interest
in excess of that lawfully permitted to be paid by Guarantor under applicable Legal Requirements. Should it be determined that
any portion of the Guaranteed Recourse Obligations of Borrower or any other amount payable by Guarantor under this Guaranty constitutes
interest in excess of the maximum amount of interest that Guarantor, in Guarantor’s capacity as guarantor, may lawfully be
required to pay under applicable Legal Requirements, the obligation of Guarantor to pay such interest shall automatically be limited
to the payment thereof in the maximum amount so permitted under applicable Legal Requirements. The provisions of this Section shall
override and control all other provisions of this Guaranty and of any other agreement between Guarantor and Lender.

 

13.              
Notices. Any and all notices, elections, demands, requests and responses thereto permitted or required to
be given under this Guaranty shall be given in accordance with the applicable terms and conditions of the Loan Agreement. Notices
to Guarantor shall be addressed as follows:

 

	If to Guarantor:	
        American Finance Operating Partnership, L.P.

        c/o American Finance Trust, Inc.

        650 Fifth Avenue, 30th Floor

        New York, New York 10019

	 	 
	With a copy to:	
        Eversheds Sutherland (US) LLP

        The Grace Building

        1114 Avenue of the Americas, 40th
        Floor

        New York, New York 10036-7703

        Attention:  John J. Busillo, Esq.

        Facsimile No.: 212-389-5099

         

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	If to Lender:	
        Column Financial, Inc.

        11 Madison Avenue

        New York, New York 10010

        Attention:  General Counsel Division

        Facsimile No.:  (212) 325-8717

         

	And to:	
        Column Financial, Inc.

        11 Madison Avenue, 11th  Floor

        New York, New York  10010

        Attention:  N.  Dante LaRocca

        email: dante.larocca@credit-suisse.com

         

	With a copy to:	
        Dechert LLP

        1095 Avenue of the Americas

        New York, New York 10036-6797

        Attention: Krystyna M. Blakeslee, Esq.

        Facsimile No.: (212) 314-0014

 

 

14.                Cumulative
Rights. The exercise by Lender of any right or remedy hereunder or under any other Loan Document, or at law or in equity,
shall not preclude the concurrent or subsequent exercise of any other right or remedy. Lender shall have all rights, remedies
and recourses afforded to Lender by reason of this Guaranty or any other Loan Document or by law or equity or otherwise, and
the same (a) shall be cumulative and concurrent, (b) may be pursued separately, successively or concurrently against
Guarantor or others obligated for the Guaranteed Recourse Obligations of Borrower, or any part thereof, or against any one or
more of them, or against any security or otherwise, at the sole discretion of Lender, (c) may be exercised as often as
occasion therefor shall arise, it being agreed by Guarantor that the exercise of, discontinuance of the exercise of or
failure to exercise any of such rights, remedies, or recourses shall in no event be construed as a waiver or release thereof
or of any other right, remedy, or recourse, and (d) are intended to be, and shall be, nonexclusive. No waiver of any default
on the part of Guarantor or of any breach of any of the provisions of this Guaranty or of any other document shall be
considered a waiver of any other or subsequent default or breach, and no delay or omission in exercising or enforcing the
rights and powers granted herein or in any other document shall be construed as a waiver of such rights and powers, and no
exercise or enforcement of any rights or powers hereunder or under any other document shall be held to exhaust such rights
and powers, and every such right and power may be exercised from time to time. The granting of any consent, approval or
waiver by Lender shall be limited to the specific instance and purpose therefor and shall not constitute consent or approval
in any other instance or for any other purpose. No notice to or demand on Guarantor in any case shall of itself entitle
Guarantor to any other or further notice or demand in similar or other circumstances. No provision of this Guaranty or any
right, remedy or recourse of Lender with respect hereto, or any default or breach, can be waived, nor can this Guaranty or
Guarantor be released or discharged in any way or to any extent, except specifically in each case by a writing intended for
that purpose (and which refers specifically to this Guaranty) executed, and delivered to Guarantor, by Lender, or where
otherwise specifically provided herein.

 

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15.               
Subrogation. Notwithstanding anything to the contrary contained herein, (a) Guarantor shall not have any right
of subrogation in or under any of the Loan Documents or to participate in any way therein, or in any right, title or interest in
and to any security or right of recourse for the Guaranteed Recourse Obligations of Borrower, until the Guaranteed Recourse Obligations
of Borrower have been fully and finally paid, and (b) if Guarantor is or becomes an “insider” (as defined in Section
101 of the Bankruptcy Code) with respect to Borrower, then Guarantor hereby irrevocably and absolutely waives any and all rights
of contribution, indemnification, reimbursement or any similar rights against Borrower with respect to this Guaranty (including
any right of subrogation, except to the extent of collateral held by Lender), whether such rights arise under an express or implied
contract or by operation of law, until the Guaranteed Recourse Obligations of Borrower have been fully and finally paid. It is
the intention of the parties that Guarantor shall not be deemed to be a “creditor” (as defined in Section 101 of the
Bankruptcy Code) of Borrower by reason of the existence of this Guaranty in the event that Borrower or Guarantor becomes a debtor
in any proceeding under the Bankruptcy Code. This waiver is given to induce Lender to make the Loan as evidenced by the Note to
Borrower.

 

16.              
Further Assurances. Guarantor at Guarantor’s expense will promptly execute and deliver to Lender upon
Lender’s reasonable request all such other and further documents, agreements, and instruments in accomplishment of the agreements
of Guarantor under this Guaranty.

 

17.              
No Fiduciary Relationship. The relationship between Lender and Guarantor is solely that of lender and guarantor.
Lender has no fiduciary or other special relationship with or duty to Guarantor and none is created hereby or may be inferred from
any course of dealing or act or omission of Lender.

 

18.              
Interpretation. If this Guaranty is signed by more than one Person as “Guarantor”, then the term
“Guarantor” as used in this Guaranty shall refer to all such Persons jointly and severally, and all promises, agreements,
covenants, waivers, consents, representations, warranties and other provisions in this Guaranty are made by and shall be binding
upon each and every such undersigned Person, jointly and severally and Lender may pursue any Guarantor hereunder without being
required (i) to pursue any other Guarantor hereunder or (ii) pursue rights and remedies under any Security Instrument and/or applicable
Legal Requirements with respect to any Individual Property or any other Loan Documents.

 

19.              
Time of Essence. Time shall be of the essence in this Guaranty with respect to all of Guarantor’s obligations
hereunder.

 

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20.               Execution.
This Guaranty may be executed in multiple counterparts, each of which, for all purposes, shall be deemed an original, and all
of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of
this Guaranty by facsimile or electronic image scan transmission (such as a “.pdf” file) will be effective as
delivery of an original manually-executed counterpart of this Guaranty. Guarantor represents and warrants that the intention
of the natural Person signing this Guaranty on its behalf is to attribute its respective signature to this Guaranty and that
if the party has signed using an E-Signature (defined below), that E-Signature represents the signer’s signature to
this Guaranty.  Guarantor understands and agrees that such E-Signature, if applicable, is legally binding. 
Guarantor signing this Guaranty using an E-Signature waives all rights to repudiate the authenticity or validity of its
E-signature to the extent such repudiation is based in whole or in part on the fact that such signature is not in original
handwritten form.  Guarantor agrees that the law governing all applicable E-Signatures will be the federal Electronic
Signatures in Global and National Commerce Act of 2000 (15 U.S. Code, Chapter 96) (E-SIGN) and/or the Uniform Electronic
Transactions Act of 1999 as promulgated by the U.S. Uniform Law Commission for consideration and enactment by the States
(UETA), and that under no circumstances will E-Signatures be governed by the Uniform Computer Information Transactions Act
(UCITA).  As used in this Guaranty, “E-Signature” means any form of signature other than an original
handwritten signature, including any type of image created in any manner (whether electronically or otherwise) which image
could reasonably be interpreted as an indication of the signer’s intent to sign the document.

 

21.               
Entire Agreement. This Guaranty embodies the entire agreement between Lender and Guarantor with respect to
the guaranty by Guarantor of the Guaranteed Recourse Obligations of Borrower. This Guaranty supersedes all prior agreements and
understandings, if any, with respect to guaranty by Guarantor of the Guaranteed Recourse Obligations of Borrower. No condition
or conditions precedent to the effectiveness of this Guaranty exist. This Guaranty shall be effective upon execution by Guarantor
and delivery to Lender. This Guaranty may not be modified, amended or superseded except in a writing signed by Lender and Guarantor
referencing this Guaranty by its date and specifically identifying the portions hereof that are to be modified, amended or superseded.
The Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous
or subsequent oral agreements of the parties.

 

22.               WAIVER
OF JURY TRIAL. EACH OF GUARANTOR AND LENDER HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH GUARANTOR
AND LENDER MAY BE PARTIES ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS GUARANTY AND ANY OTHER LOAN
DOCUMENT. IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL
PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS GUARANTY. THIS WAIVER IS
KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY GUARANTOR AND LENDER, AND EACH OF GUARANTOR AND LENDER HEREBY REPRESENTS THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY
MODIFY OR NULLIFY ITS EFFECT. EACH OF GUARANTOR AND LENDER FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN
THE SIGNING OR ACCEPTANCE, RESPECTIVELY OF THIS GUARANTY AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR
HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT EACH OF
GUARANTOR AND LENDER HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

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23.              
Governing Law. THIS GUARANTY WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED
BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT TO THE LOAN AGREEMENT WERE DISBURSED FROM
THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION
EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, THIS GUARANTY, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED
IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT
THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT
HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE, IT BEING
UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION,
VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT
PERMITTED BY LAW, GUARANTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS THIS GUARANTY, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW.

 

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ANY LEGAL SUIT,
ACTION OR PROCEEDING AGAINST LENDER OR GUARANTOR ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE OTHER LOAN DOCUMENTS WILL
BE INSTITUTED IN (OR, IF PREVIOUSLY INSTITUTED, MOVED TO) ANY FEDERAL OR STATE COURT DESIGNATED BY LENDER IN THE CITY OF NEW YORK,
COUNTY OF NEW YORK. GUARANTOR HEREBY (I) WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM
NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING AND (II) IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY SUCH COURT
IN ANY SUIT, ACTION OR PROCEEDING. GUARANTOR AND LENDER HEREBY ACKNOWLEDGE AND AGREE THAT THE FOREGOING AGREEMENT, WAIVER AND
SUBMISSION ARE MADE PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

24.              
Waivers.

 

(a)               Guarantor
hereby agrees that neither Lender’s rights or remedies nor Guarantor’s obligations under the terms of this
Guaranty shall be released, diminished, impaired, reduced or affected by any one or more of the following events, actions,
facts, or circumstances, and the liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective
of (and Guarantor hereby waives any rights or protections related to): (i) any limitation of liability or recourse in any
other Loan Document or arising under any law; (ii) any claim or defense that this Guaranty was made without consideration or
is not supported by adequate consideration; (iii) the taking or accepting of any other security or guaranty for, or right of
recourse with respect to, any or all of the Guaranteed Recourse Obligations of Borrower; (iv) any homestead exemption or any
other similar exemption under applicable Legal Requirements and Guarantor hereby waives the benefit of any such exemption as
to the Guaranteed Recourse Obligations of Borrower; (v) any release, surrender, abandonment, exchange, alteration, sale or
other disposition, subordination, deterioration, waste, failure to protect or preserve, impairment, or loss of, or any
failure to create or perfect any lien or security interest with respect to, or any other dealings with, any collateral or
security at any time existing or purported, believed or expected to exist in connection with any or all of the Guaranteed
Recourse Obligations of Borrower, including any impairment of Guarantor’s recourse against any Person or collateral;
(vi) unless agreed to in writing by Lender or as otherwise expressly set forth in the Loan Documents, whether express or by
operation of law, any partial release of the liability of Guarantor hereunder, or if one or more other guaranties are now or
hereafter obtained by Lender covering all or any part of the Guaranteed Recourse Obligations of Borrower, any complete or
partial release of any one or more of such guarantors under any such other guaranty, or any complete or partial release or
settlement of Borrower or any other party liable, directly or indirectly, for the payment or performance of any or all of the
Guaranteed Recourse Obligations of Borrower; (vii) the death, insolvency, bankruptcy, disability, dissolution, liquidation,
termination, receivership, reorganization, merger, consolidation, change of form, structure or ownership, sale of all assets,
or lack of corporate, partnership or other power of Borrower or any other party at any time liable for the payment or
performance of any or all of the Guaranteed Recourse Obligations of Borrower; (viii) either with or without notice to or
consent of Guarantor: any renewal, extension, modification or rearrangement of the terms of any or all of the Guaranteed
Recourse Obligations of Borrower and/or any of the Loan Documents; (ix) any neglect, lack of diligence, delay, omission,
failure, or refusal of Lender to take or prosecute (or in taking or prosecuting) any action for the collection or enforcement
of any of the Guaranteed Recourse Obligations of Borrower, or to foreclose or take or prosecute any action to foreclose (or
in foreclosing or taking or prosecuting any action to foreclose) upon any security therefor, or to exercise (or in
exercising) any other right or power with respect to any security therefor, or to take or prosecute (or in taking or
prosecuting) any action in connection with any Loan Document, or any failure to sell or otherwise dispose of in a
commercially reasonable manner any collateral securing any or all of the Guaranteed Recourse Obligations of Borrower; (x) any
failure of Lender to notify Guarantor of any creation, renewal, extension, rearrangement, modification, supplement,
subordination, or assignment of the Guaranteed Recourse Obligations of Borrower or any part thereof, or of any Loan Document,
or of any release of or change in any security, or of any other action taken or refrained from being taken by Lender against
Borrower or any security or other recourse, or of any new agreement between Lender and Borrower, it being understood that,
except as expressly provided herein, Lender shall not be required to give Guarantor any notice of any kind under any
circumstances with respect to or in connection with the Guaranteed Recourse Obligations of Borrower, any and all rights to
notice Guarantor may have otherwise had being hereby waived by Guarantor, and Guarantor shall be responsible for obtaining
for itself information regarding Borrower, including, but not limited to, any changes in the business or financial condition
of Borrower, and Guarantor acknowledges and agrees that Lender shall have no duty to notify Guarantor of any information
which Lender may have concerning Borrower; (xi) if for any reason that Lender is required to refund any payment by Borrower
to any other party liable for the payment or performance of any or all of the Guaranteed Recourse Obligations of Borrower or
pay the amount thereof to someone else; (xii) the making of advances by Lender to protect its interest in any Individual
Property or the Properties, preserve the value of any Individual Property or the Properties or for the purpose of performing
any term or covenant contained in any of the Loan Documents; (xiii) the existence of any claim, counterclaim, set off,
recoupment, reduction or defense based upon any claim or other right that Guarantor may at any time have against Borrower,
Lender, or any other Person, whether or not arising in connection with this Guaranty, the Note, the Loan Agreement, or any
other Loan Document, other than a claim that the Guaranteed Recourse Obligations of Borrower have been fully paid and
performed; (xiv) the unenforceability of all or any part of the Guaranteed Recourse Obligations of Borrower against Borrower,
whether because the Guaranteed Recourse Obligations of Borrower exceed the amount permitted by law or violate any usury law,
or because the act of creating the Guaranteed Recourse Obligations of Borrower, or any part thereof, is ultra vires, or
because the officers or Persons creating same acted in excess of their authority, or because of a lack of validity or
enforceability of or defect or deficiency in any of the Loan Documents, or because Borrower has any valid defense, claim or
offset with respect thereto, or because Borrower’s obligation ceases to exist by operation of law, or because of any
other reason or circumstance, it being agreed that Guarantor shall remain liable hereon regardless of whether Borrower or any
other Person be found not liable on the Guaranteed Recourse Obligations of Borrower, or any part thereof, for any reason (and
regardless of any joinder of Borrower or any other party in any action to obtain payment or performance of any or all of the
Guaranteed Recourse Obligations of Borrower); (xv) any order, ruling or plan of reorganization emanating from proceedings
under any bankruptcy or similar insolvency laws with respect to Borrower or any other Person, including any extension,
reduction, composition, or other alteration of the Guaranteed Recourse Obligations of Borrower, whether or not consented to
by Lender; and/or (xvi) except as otherwise provided in Section 27 hereof, any partial or total transfer, pledge and/or
reconstitution of Borrower and/or any direct or indirect owner of Borrower (regardless of whether the same is permitted under
the Loan Documents).

 

    10

     

    

 

(b)              
This Guaranty shall be effective as a waiver of, and Guarantor hereby expressly waives

 

(i)                
any and all rights to which Guarantor may otherwise have been entitled under any suretyship laws in effect from time to
time, including any right or privilege, whether existing under statute, at law or in equity, to require Lender to take prior recourse
or proceedings against any collateral, security or Person whatsoever;

 

(ii)             
any rights of sovereign immunity and any other similar and/or related rights;

 

(iii)           
any other circumstance that may constitute a defense of Borrower or Guarantor hereunder and/or under the other Loan Documents
other than a defense that the Guaranteed Recourse Obligations of Borrower have been fully paid and performed; and

 

(iv)            
any right and/or requirement of or related to notice, presentment, protest, notice of protest, further notice of nonpayment,
notice of dishonor, default, nonperformance, intent to accelerate, acceleration, existence of the Debt and/or any amendment or
modification of the Debt.

 

25.              
Representations, Warranties and Covenants of Guarantor.

 

(a)               Guarantor
hereby makes the following representations, warranties and covenants (each of which shall remain materially true and correct
during the term hereof): (a) Guarantor is duly organized, validly existing and in good standing under the laws of its state
of formation, and Guarantor has all requisite right and power to execute and deliver this Guaranty and to perform the
Guaranteed Recourse Obligations of Borrower; (b) the execution, delivery and performance of this Guaranty and the incurrence
of the Guaranteed Recourse Obligations of Borrower, now or hereafter owing, (i) are within the powers of Guarantor and (ii)
do not require any approval or consent of, or filing with, any governmental authority or other Person (or such approvals and
consents have been obtained and delivered to the Lender) and are not in contravention of any provision of law applicable to
Guarantor; (c) this Guaranty and the other Loan Documents to which Guarantor is a party constitutes when delivered, valid and
binding obligations of Guarantor, enforceable in accordance with their respective terms, except as limited by bankruptcy,
insolvency or other laws of general application relating to the enforcement of creditors’ rights and equitable
considerations; (d) Guarantor is not in default under any indenture, loan or credit agreement, or any lease or other
agreement or instrument to which it is a party, or in violation of any restriction to which it is subject, as of the date
hereof which, to Guarantor’s knowledge, is likely to have a Material Adverse Effect if there were such a default or
violation; (e) Guarantor has filed all tax returns which are required to be filed (or obtained proper extensions of time for
the filing thereof) and has paid, or made adequate provision for the payment of, all taxes which have or may become due
pursuant to said returns or to assessments received; (f) the financial statements and other information pertaining to
Guarantor submitted to Lender are true, complete and correct in all material respects and do not contain any material
misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not
misleading; (g) there is no litigation, at law or in equity, or any proceeding before any federal, state, provincial or
municipal board or other governmental or administrative agency pending or, to the knowledge of Guarantor, threatened, or any
basis therefor, which involves a risk of any material judgment or liability not fully covered by insurance (other than any
deductible) which is likely to be adversely determined and if so, would have a Material Adverse Effect, and no judgment,
decree, or order of any federal, state, provincial or municipal court, board or other governmental or administrative agency
has been issued against Guarantor which has a Material Adverse Effect; (h) the making of the Loan to Borrower will result in
material benefits to Guarantor; (i) Guarantor (i) has not entered into this Guaranty or any Loan Document with the actual
intent to hinder, delay, or defraud any creditor and (ii) has received reasonably equivalent value in exchange for the
Guaranteed Recourse Obligations of Borrower hereunder and under the Loan Documents.; and (j) Guarantor is not a
“foreign person” within the meaning of Section 1445(1)(3) of the Internal Revenue Code. Each of the
representations and covenants of and/or relating to Guarantor set forth in the other Loan Documents, if any, are hereby
re-made by Guarantor and incorporated herein by reference as if fully set forth herein. This Guaranty is not subject to any
right of rescission, setoff, counterclaim or defense by Guarantor, nor would the operation of any of the terms of this
Guaranty, or the exercise of any right hereunder, render the Loan Documents unenforceable. Guarantor has not asserted any
right of rescission, setoff, counterclaim or defense with respect to the Loan Documents.

 

    11

     

    

 

(b)              
As of the date hereof, Guarantor is the operating company of American Finance Trust, Inc. and owns, directly or indirectly,
substantially all of the assets of American Finance Trust, Inc.

 

26.              
Financial Covenants of Guarantor

 

(a)               Guarantor
(i) shall keep and maintain complete and accurate books and records and (ii) in the event of the occurrence and continuance
of an Event of Default, shall permit Lender and any authorized representatives of Lender to have access to and to inspect,
examine and make copies of the books and records, any and all accounts, data and other documents of Guarantor, at all
reasonable times, during normal business hours, at Guarantor’s address for notices as set forth herein upon the giving
of reasonable notice of such intent. Guarantor shall also provide to Lender, upon Lender’s reasonable request, such
proofs of payment, costs, expenses, revenues and earnings, and such other documentation as Lender may reasonably request,
from time to time (other than audited financial statements which are provided to Lender pursuant to subsection (c) below), in
such detail as may reasonably be required by Lender which (in each case) are available or reasonably obtainable using systems
of Guarantor that are currently in place.

 

(b)              
Without limiting the provisions of Section 26(a), Lender shall have the right, at any time and from time to time, during
reasonable business hours and upon the giving of reasonable notice of such intent, upon the occurrence and continuance of an “Event
of Default” hereunder or under the other Loan Documents, to audit the books and records of Guarantor.

 

(c)              
During the term hereunder, Guarantor will furnish or cause to be furnished to Lender, as soon as available, and in any event
within sixty (60) days after the end of each calendar quarter, the quarterly consolidated financial statements of American Finance
Trust, Inc. (“AFIN”), which financial statements shall be prepared on an unaudited basis, in form substantially similar
to those previously delivered by AFIN to Lender and which shall include Guarantor’s statement of net worth. Such quarterly
financial statements shall be certified by Guarantor or AFIN to Lender as true and correct in all material respects. In addition,
during the term hereunder, Guarantor will furnish or cause to be furnished to Lender, as soon as available, and in any event within
one hundred and five (105) days after the end of each fiscal year, the annual consolidated financial statements of AFIN, which
financial statements shall be prepared on an audited basis, in form substantially similar to those previously delivered by AFIN
to Lender and which shall include Guarantor’s balance sheet, statement of net worth and, if available, cash flows for all
Individual Properties and entities constituting Borrower. All such annual financial statements shall (A) with respect to AFIN’s
annual financial statements, be prepared and audited by AFIN’s independent certified public accountants (which accountants
shall be reasonably acceptable to Lender), (B) be certified by Guarantor or AFIN to Lender as true and correct in all material
respects and (C) contain such backup and/or supporting information as may be reasonably requested by Lender. In addition, Guarantor
shall promptly furnish to Lender any other financial information reasonably requested by Lender from time to time in respect of
Guarantor (other than audited financial statements which are provided to Lender pursuant to this subsection).

 

(d)              
Guarantor shall, at all times while the Debt remains unsatisfied, maintain a net worth of not less than $1,000,000,000.
For the purposes hereof, Guarantor’s net worth shall be determined by Lender in its reasonable discretion, at any time and
from time to time, and Guarantor’s net worth shall include any equity attributable to the Properties.

 

    12

     

    

 

27.              
Release of Guaranty.

 

(a)               Notwithstanding
anything to the contrary contained herein, upon the consummation of any enforcement action by (i) the holder of the Loan
resulting in the Guarantor no longer controlling the Borrower or any Individual Property or (ii) the holder of any mezzanine
loan (a “Mezzanine Loan”) that exists pursuant to Section 11.6 of the Loan Agreement resulting in the
Guarantor no longer controlling the Borrower or any Individual Property, or the assignment to the lender under such Mezzanine
Loan (the “Mezzanine Lender”) (or its designee(s) of said interests in lieu thereof in accordance with the
loan documents evidencing such Mezzanine Loan) (such date, the “Vesting Date”), Guarantor shall be
released with respect to matters arising out of or in connection with actions, events or conditions first taking place
following the Vesting Date solely with respect to those Borrowers and/or any Individual Properties which are no longer
controlled by Guarantor and solely with respect to actions, events or conditions which are not caused by Guarantor or any of
its Affiliates. In addition, after foreclosure of the lien of the Loan Documents or deed-in-lieu of such foreclosure, or
Lender exercising any remedy which results in Lender or its successors or assigns or their respective agents or appointees
controlling the Individual Properties (or any Individual Property, if applicable), Guarantor shall be released with respect
to matters arising out of or in connection with actions, events or conditions first taking place following such foreclosure
or deed in lieu thereof or exercise of such remedy solely with respect to those Individual Properties which are no longer
controlled by Guarantor and solely with respect to actions, events or conditions which are not caused by Guarantor or any of
its Affiliates. In addition, if the Mezzanine Lender exercises its remedies pursuant to any pledge and security agreement in
connection with the Mezzanine Loan to exercise the voting rights of Borrower (or any other remedy which gives the Mezzanine
Lender the right to control the Borrower), Guarantor shall not have any liability arising from the exercise of such voting
rights (or any other remedy which gives the Mezzanine Lender the right to control the Borrower) solely with respect to such
Borrowers where Mezzanine Lender has exercised its voting rights (or Mezzanine Lender has otherwise exercised control) and
solely with respect to matters not caused by Guarantor or any of its Affiliates (the date of such Mezzanine Lender’s
exercise of such voting rights, the “Control Vesting Date”). For the avoidance of doubt, in no event shall
Guarantor be released from any obligations or liabilities with respect to any obligations or liabilities that result from
facts and circumstances (known or unknown) in existence prior to the Vesting Date or the Control Vesting Date or caused by
Guarantor or any of its Affiliates, and such Guaranteed Recourse Obligations of Borrower shall remain in full force and
effect in accordance with and subject to the terms and provisions of this Guaranty.

 

(b)              
In addition, Lender acknowledges and agrees that in connection with a transfer in accordance with the terms and conditions
of Section 6.3(b) of the Loan Agreement and the assumption of all of the obligations and liabilities hereunder by a replacement
guarantor in accordance with Section 6.3(b) of the Loan Agreement, Guarantor shall not have any liability with respect to any Guaranteed
Recourse Obligations of Borrower arising out of or in connection with actions, events or conditions first taking place following
the date that Guarantor’s obligations under this Guaranty are assumed in accordance with Section 6.3(b) of the Loan Agreement,
unless such actions, events or conditions were caused by actions or omissions of Guarantor or any of its Affiliates.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    13

     

    

 

IN WITNESS WHEREOF,
Guarantor has duly executed this Guaranty under as of the date first written above.

 

	 	AMERICAN FINANCE OPERATING PARTNERSHIP, L.P., a
    Delaware limited partnership
	 
	 	By:American Finance Trust, Inc., a Maryland corporation, its General Partner
	 
	 	By:	/s/Michael Anderson
	 	 	Name:    Michael Anderson
	 	 	Title:      Authorized Signatory

 

[Signature Page to Limited Recourse Guaranty]

 

    

     

    

 

SCHEDULE I

 

Borrower

 

 

		1.	ARC AAANGIN001, LLC

		2.	ARC AABNLFL001, LLC

		3.	ARC AATNTMA001, LLC

		4.	ARC AAWSNGA001, LLC

		5.	ARC ABHNDMS001, LLC

		6.	ARC AMWNRKY001, LLC

		7.	ARC ARERIPA001, LLC

		8.	ARC ARVIRMN001, LLC

		9.	ARC AZCROMI001, LLC

		10.	ARC AZCTOLA001, LLC

		11.	ARC AZTMPGA001, LLC

		12.	ARC BFFTMFL001, LLC

		13.	ARC BKMST41001, LLC

		14.	ARC CBDTNPA001, LLC

		15.	ARC CBLDLPA001, LLC

		16.	ARC CBLMAPA001, LLC

		17.	ARC CBPHLPA001, LLC

		18.	ARC CBPHLPA002, LLC

		19.	ARC CBPHLPA003, LLC

		20.	ARC CBPHLPA004, LLC

		21.	ARC CBRBRPA001, LLC

		22.	ARC CBWNEPA001, LLC

		23.	ARC CHLKJTX001, LLC

		24.	ARC CHVCTTX001, LLC

		25.	ARC CKMST19001, LLC

		26.	ARC CVANSAL001, LLC

		27.	ARC CVHYKMA001, LLC

		28.	ARC DGATHMI001, LLC

		29.	ARC DGBGLLA001, LLC

		30.	ARC DGBKHMS001, LLC

		31.	ARC DGBNBGA001, LLC

		32.	ARC DGCHEOK001, LLC

		33.	ARC DGCMBMS001, LLC

		34.	ARC DGDNDLA001, LLC

		35.	ARC DGDVLLA001, LLC

		36.	ARC DGFHLLA001, LLC

		37.	ARC DGFLRMI001, LLC

		38.	ARC DGFRTMS001, LLC

		39.	ARC DGFTSAR001, LLC

		40.	ARC DGGNWLA001, LLC

		41.	ARC DGGSBVA001, LLC

		42.	ARC DGGVLMS002, LLC

		43.	ARC DGHBKLA001, LLC

 

		44.	ARC DGHDNMI001, LLC

		45.	ARC DGHTGWV001, LLC

		46.	ARC DGHTSAR001, LLC

		47.	ARC DGLAFTN001, LLC

		48.	ARC DGLCRMN002, LLC

		49.	ARC DGMBLAR001, LLC

		50.	ARC DGMKNMI001, LLC

		51.	ARC DGMRALA001, LLC

		52.	ARC DGMSNTX002, LLC

		53.	ARC DGNTALA001, LLC

		54.	ARC DGRLFMS001, LLC

		55.	ARC DGRSEMI001, LLC

		56.	ARC DGRYLAR001, LLC

		57.	ARC DGSRBMO001, LLC

		58.	ARC DGSTNVA001, LLC

		59.	ARC DGSVNMO001, LLC

		60.	ARC DGTLSLA001, LLC

		61.	ARC DGVDRTX001, LLC

		62.	ARC DGVNLTN001, LLC

		63.	ARC DGWPTMS001, LLC

		64.	ARC DGWRNIN001, LLC

		65.	ARC DGWSNNY001, LLC

		66.	ARC FDBRNLA001, LLC

		67.	ARC FDBTLKY001, LLC

		68.	ARC FDCHLID001, LLC

		69.	ARC FDCRLMO001, LLC

		70.	ARC FDDNVAR001, LLC

		71.	ARC FDDXRNM001, LLC

		72.	ARC FDFNTPA001, LLC

		73.	ARC FDHCRTX001, LLC

		74.	ARC FDKRMCO001, LLC

		75.	ARC FDOCYLA001, LLC

		76.	ARC FDPLSTX001, LLC

		77.	ARC FDWLDCO001, LLC

		78.	ARC FEBSMND001, LLC

		79.	ARC FECNBIA001, LLC

		80.	ARC FEEGLWI001, LLC

		81.	ARC FEGRFND001, LLC

		82.	ARC FELELMS001, LLC

		83.	ARC FESOUIA001, LLC

		84.	ARC FEWAUWI001, LLC

		85.	ARC FEWTNSD001, LLC

		86.	ARC FLCLTNC001, LLC

 

 

 

    

     

    

 

		87.	ARC FMMTCNJ001, LLC

		88.	ARC FMMTVAL001, LLC

		89.	ARC FMSNHPA001, LLC

		90.	ARC HR5BEIL001, LLC

		91.	ARC HR5BIAL001, LLC

		92.	ARC HR5BPMN001, LLC

		93.	ARC HR5CURI001, LLC

		94.	ARC HR5CVGA001, LLC

		95.	ARC HR5DOGA001, LLC

		96.	ARC HR5GAGA001, LLC

		97.	ARC HR5GASC001, LLC

		98.	ARC HR5HASC001, LLC

		99.	ARC HR5MSSE001, LLC

		100.	ARC HR5PEGA001, LLC

		101.	ARC HR5PISC001, LLC

		102.	ARC HR5SINJ001, LLC

		103.	ARC HR5SOCT001, LLC

		104.	ARC HR5VAGA001, LLC

		105.	ARC HR5ZUMN001, LLC

		106.	ARC LWAKNSC001, LLC

		107.	ARC LWFYTNC001, LLC

		108.	ARC LWMCNGA001, LLC

		109.	ARC LWNBNNC001, LLC

		110.	ARC LWRMTNC001, LLC

		111.	ARC MFKXVTN002, LLC

		112.	ARC ORMNTWI001, LLC

		113.	ARC TKLWSFL001, LLC

		114.	ARC TPEGPTX001, LLC

		115.	ARC TSHRLKY001, LLC

		116.	ARC TSHTNMI001, LLC

		117.	ARC TSVRNCT001, LLC

		118.	ARC WGBEATX001, LLC

		119.	ARC WGGLTWY001, LLC

		120.	ARC WGLNSMI001, LLC

		121.	ARC WGOKCOK001, LLC

 

		122.	ARC WGTKRGA001, LLC

		123.	ARG AA12PCK001, LLC

		124.	ARG AA14PCK001, LLC

		125.	ARG CCFAYNC001, LLC

		126.	ARG CCLTZFL001, LLC

		127.	ARG CCNLVTX001, LLC

		128.	ARG CCPBLCO01, LLC

		129.	ARG CHDUBGA001, LLC

		130.	ARG DDEPOTX001, LLC

		131.	ARG DGBRWKY001, LLC

		132.	ARG DGCLKIA001, LLC

		133.	ARG DGCSTKY001, LLC

		134.	ARG DGCTSMI001, LLC

		135.	ARG DGELKKY001, LLC

		136.	ARG DGFLSKY001, LLC

		137.	ARG DGLCNMI001, LLC

		138.	ARG DGSDLKY001, LLC

		139.	ARG DI51PCK001, LLC

		140.	ARG DNMGCIN001, LLC

		141.	ARG FMATHTX001, LLC

		142.	ARG FMBKHMS001, LLC

		143.	ARG FMCHIIL001, LLC

		144.	ARG FMCTVMS001, LLC

		145.	ARG FMIDBOK001, LLC

		146.	ARG FMTYLTX001, LLC

		147.	ARG IM12PKSLB001, LLC

		148.	ARG ME19PCK001, LLC

		149.	ARG MESMOAR001, LLC

		150.	ARG PH14SLB001, LLC

		151.	ARG ATCHTTN001, LLC

		152.	ARG 1CBHGNJ001, LLC

		153.	ARG OCPOOL2001, LLC

		154.	ARG OCPOOL4001, LLC

		155.	ARG WLGREFI001, LLCExhibit 10.3

 

ENVIRONMENTAL
INDEMNITY AGREEMENT

 

THIS ENVIRONMENTAL INDEMNITY
AGREEMENT (this “Agreement”) made as of the 24th day of July, 2020, by EACH OF THE ENTITIES LISTED ON SCHEDULE
I ATTACHED HERETO (individually or collectively, as the context may require “Borrower”), each having
an address at 38 Washington Square, Newport, Rhode Island 02840 and American
Finance OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an address at 650 Fifth Avenue, 30th Floor,
New York, New York 10019 (“Principal”; Borrower and Principal are collectively herein referred to as “Indemnitor”),
in favor of COLUMN FINANCIAL, INC., a Delaware corporation (“Column”; Column, together with any other
Co-Lender under the Loan and each of their respective successors, transferees and/or assigns, collectively, “Indemnitee”)
and other Indemnified Parties (defined below).

 

RECITALS:

 

A.        Indemnitee
is prepared to make a loan (the “Loan”) to Borrower pursuant to a Loan Agreement of even date herewith between
Borrower and Indemnitee (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time,
the “Loan Agreement”). Capitalized terms not otherwise defined herein shall have the meaning set forth in the
Loan Agreement.

 

B.         Principal
is the owner of a direct and/or indirect equity interest in Borrower and will receive substantial benefit from Indemnitee’s
making of the Loan to Borrower.

 

C.         Indemnitee
is unwilling to make the Loan unless Indemnitor agrees to provide the indemnification, representations, warranties, covenants and
other matters described in this Agreement for the benefit of the Indemnified Parties.

 

D.        Indemnitor
is entering into this Agreement to induce Indemnitee to make the Loan.

 

     

     

    

 

AGREEMENT

 

NOW THEREFORE, in consideration
of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Indemnitor
hereby represents, warrants, covenants and agrees for the benefit of the Indemnified Parties as follows:

 

1.             ENVIRONMENTAL
REPRESENTATIONS AND WARRANTIES. Except as otherwise disclosed by those certain Phase I environmental reports (and Phase
II environmental reports, if one was provided to Indemnitee) in respect of the Properties delivered to Indemnitee
(individually and/or collectively referred to below as the context may require as the “Environmental
Report”), copies of which have been provided to Indemnitee, and to Indemnitor’s actual knowledge, (a) there
are no Hazardous Substances (defined below) or underground storage tanks in, on, or under any Individual Property, except
those that are in compliance with all applicable Environmental Laws (defined below) and with any permits issued pursuant
thereto, if applicable; (b) there are no past or present Releases (defined below) of Hazardous Substances in, on, under or
from any Individual Property which have not been fully remediated or, to the extent disclosed in the Environmental Report,
are in the process of being remediated; (c) there is no current threat of any Release of Hazardous Substances migrating to
any Individual Property; (d) there is no past or present non-compliance with Environmental Laws, or with permits issued
pursuant thereto, in connection with any Individual Property which has not been fully remediated, or is currently being
remediated or, to the extent disclosed in the Environmental Report, are in the process of being fully remediated, in
accordance with Environmental Law; (e) Indemnitor has not received any written notice or other written communication from any
Person (including, but not limited to, any governmental entity) relating to the existence or Release of Hazardous Substances
on any Individual Property or Remediation (defined below) thereof, of possible liability of any Person pursuant to any
Environmental Law or any administrative or judicial proceedings in connection with any of the foregoing; (f) Indemnitor has
truthfully and fully provided to Indemnitee, in writing, all material information relating to Hazardous Substances in, on,
under or from each Individual Property that are known to Indemnitor and that is contained in files and records of Indemnitor
or that are in Indemnitor’s possession, including but not limited to any written reports relating to Hazardous
Substances in, on, under or from any Individual Property, and/or to any environmental condition of any Individual Property;
(g) there are no prior or current complaints by tenants at any Individual Property regarding water infiltration or water
damage, except as set forth on Schedule II attached hereto, and (h) no Individual Property currently displays
conspicuous evidence of the growth of Microbial Matter on any building materials or surfaces.

 

    2

     

    

 

2.             ENVIRONMENTAL
COVENANTS. Indemnitor covenants and agrees that: (a) all uses and operations on or of the Properties, whether by
Indemnitor or any other Person, shall be in compliance with all Environmental Laws and permits issued pursuant thereto; (b)
there shall be no Releases of Hazardous Substances in, on, under or from any Individual Property, except those that are both
(i) in compliance with all Environmental Laws and with permits issued pursuant thereto and (ii) either has been fully
disclosed to Indemnitee in writing (including in any Environmental Reports provided to Indemnitee) prior to the date hereof
or are Hazardous Substances used in the ordinary course of operations at any such Properties in customary quantities
reasonably necessary for such operations; (c) there shall be no Hazardous Substances in, on, or under any Individual
Property, except those that are both (i) in compliance with all Environmental Laws and with permits issued pursuant thereto
and (ii) either fully disclosed to Indemnitee in writing (including in any Environmental Reports provided to Indemnitee)
prior to the date hereof or are Hazardous Substances used in the ordinary course of operations at any such Properties in
customary quantities reasonably necessary for such operations; (d) subject to Indemnitor’s right to contest the
imposition of liens in accordance with the Loan Agreement, Indemnitor shall keep each Individual Property free and clear of
all liens and other encumbrances imposed pursuant to any Environmental Law, whether due to any act or omission of Indemnitor
or any other Person (the “Environmental Liens”); (e) Indemnitor shall, at its sole cost and expense, fully
and expeditiously cooperate in all activities pursuant to Paragraph 3 of this Agreement, including but not limited to
providing all relevant information and making knowledgeable Persons available for interviews; (f) Indemnitor shall, at its
reasonable sole cost and expense, if Indemnitee has a reasonable basis to be concerned that there may be Hazardous Substances
on an Individual Property in violation of the Environmental Laws or which would result in liability under Environmental Laws,
perform such environmental site assessments or other investigations of environmental conditions in connection with such
Individual Property, pursuant to any reasonable written request of Indemnitee (including but not limited to sampling, testing
and analysis of soil, water, air, building materials, and other materials and substances whether solid, liquid or gas), and
share with Indemnitee the reports and other results thereof, and Indemnitee and the other Indemnified Parties shall be
entitled to rely on such reports and other results thereof; (g) Indemnitor shall, at its sole cost and expense, comply with
all reasonable written requests of Indemnitee to (i) effectuate Remediation or obtain a no further action letter if available
from the applicable governmental authority for any environmental condition (including but not limited to a Release of a
Hazardous Substance) in, on, under or from any Individual Property; (ii) subject to Indemnitor’s right to contest legal
requirements in accordance with the Loan Agreement, comply with any applicable Environmental Law; (iii) comply with any
directive from any governmental authority with respect to Hazardous Substances in, on or under any Individual Property; and
(iv) take any other reasonable action necessary or appropriate for protection of human health or the environment on or at
each Individual Property consistent with the practices of prudent commercial property owners; (h) Indemnitor shall not do and
shall use reasonable efforts to cause any Tenant of any Individual Property not to do, any act at or on such Individual
Property that materially increases the dangers to human health or the environment on or at such Individual Property, poses an
unreasonable risk of harm to any Person or results from or otherwise relating to Hazardous Substances on, at or from such
Individual Property; (i) Indemnitor shall notify Indemnitee in writing promptly after it has knowledge of (A) any presence or
Releases or threatened Releases of Hazardous Substances in, on, under, from or migrating towards any Individual Property; (B)
any non-compliance with any Environmental Laws related in any way to any Individual Property; (C) any actual or threatened
(in writing) Environmental Lien on any Individual Property; (D) any required or proposed Remediation of environmental
conditions relating to any Individual Property; and (E) any written notice that Indemnitor receives from a governmental
entity or other Person relating in any way to (a) Hazardous Substances in, on, under, from or migrating towards any
Individual Property or Remediation thereof, or possible liability of any Person pursuant to any Environmental Law relating to
Hazardous Substances in, on, under, to or from any Individual Property, or (b) other environmental conditions in connection
with any Individual Property, or (c) any administrative or judicial proceedings actually occurring or threatened in writing
in connection with any of the foregoing and Indemnitor shall comply with any and all local, state or federal laws,
legislation, or statutes at any time in effect with respect to Microbial Matter applicable to the Properties and (j)
Indemnitor shall promptly adopt a remediation plan reasonably acceptable to Indemnitee with respect to any Microbial Matter
identified as a result of any environmental assessment and/or investigation in order to comply with any applicable
Environmental Law governing said Microbial Matter.

 

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3.             INDEMNIFIED
RIGHTS/COOPERATION AND ACCESS. In the event Indemnitee has reason to believe that an environmental hazard exists on an
Individual Property that does not, in the reasonable discretion of the Indemnitee, endanger any tenants or other occupants of
such Individual Property or their guests or the general public or materially and adversely affects the value of such
Individual Property, upon reasonable notice from the Indemnitee, Indemnitor shall, at Indemnitor’s reasonable expense,
promptly cause an engineer or consultant satisfactory to the Indemnified Parties to conduct any environmental assessment or
audit (the scope of which shall be determined in the reasonable discretion of the Indemnitee) and take any samples of soil,
groundwater or other water, air, or building materials or any other invasive testing reasonably requested by Indemnitee and
promptly deliver to the Indemnitee the results of any such assessment, audit, sampling or other testing; provided, however,
if such results are not delivered to the Indemnitee within a reasonable period or if the Indemnitee has reason to believe
that an environmental hazard exists on such Individual Property that, in the reasonable judgment of the Indemnitee, endangers
any tenant or other occupant of such Individual Property or their guests or the general public or may materially and
adversely affect the value of such Individual Property, upon reasonable notice to Indemnitor, Indemnitee and any other Person
designated by the Indemnitee, including but not limited to any receiver, any representative of a governmental entity, and any
environmental consultant, shall have the right, but not the obligation, to enter upon such Individual Property at all
reasonable times to assess any and all aspects of the environmental condition of such Individual Property and its use,
including but not limited to conducting any environmental assessment or audit (the scope of which shall be determined in the
reasonable discretion of the Indemnitee) and taking samples of soil, groundwater or other water, air, or building materials,
and reasonably conducting other invasive testing. Indemnitor shall cooperate with and provide the Indemnitee and any such
Person designated by the Indemnitee with access to such Individual Property to undertake the foregoing.

 

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4.             INDEMNIFICATION.
Indemnitor covenants and agrees, at its sole cost and expense, to protect, defend, indemnify, release and hold Indemnified
Parties harmless from and against any and all Losses (defined below) imposed upon or incurred by or asserted against any
Indemnified Parties and directly or indirectly arising out of or in any way relating to any one or more of the following: (a)
any presence of any Hazardous Substances in, on, above, or under any Individual Property; (b) any past, present or threatened
Release of Hazardous Substances in, on, above, under or from any Individual Property; (c) any activity by Indemnitor, any
Person affiliated with Indemnitor, and any tenant or other user of any Individual Property in connection with any actual,
proposed or threatened use, treatment, storage, holding, existence, disposition or other Release, generation, production,
manufacturing, processing, refining, control, management, abatement, removal, handling, transfer or transportation to or from
any Individual Property of any Hazardous Substances at any time located in, under, on or above such Individual Property in
violation of applicable Environmental Laws or as would require investigation, remediation or other response pursuant to
applicable Environmental Laws; (d) any activity by Indemnitor, any Person affiliated with Indemnitor, and any tenant or other
user of any Individual Property in connection with any actual or proposed Remediation of any Hazardous Substances on any
Individual Property in violation of applicable Environmental Laws at any time located in, under, on or above any Individual
Property, whether or not such Remediation is voluntary or pursuant to court or administrative order, including but not
limited to any removal, remedial or corrective action; (e) any past, present or threatened non-compliance or violation of any
Environmental Laws (or permits issued pursuant to any Environmental Law) in connection with any Individual Property or
operations thereon, including but not limited to any failure by Indemnitor, any Person affiliated with Indemnitor, and any
tenant or other user of any Individual Property to comply with any order of any governmental authority in connection with any
Environmental Laws; (f) the imposition, recording or filing or the threatened imposition, recording or filing of any
Environmental Lien encumbering any Individual Property; (g) any administrative processes or proceedings or judicial
proceedings in any way connected with any matter addressed in this Agreement; (h) any past, present or threatened injury to,
destruction of or loss of natural resources in any way connected with any Individual Property, arising or resulting from, or
otherwise relating to Hazardous Substances or any violation of Environmental Laws, including but not limited to costs to
investigate and assess such injury, destruction or loss; (i) any acts of Indemnitor, any Person affiliated with Indemnitor,
and any tenant or other user of any Individual Property in arranging for disposal or treatment, or arranging with a
transporter for transport for disposal or treatment, of Hazardous Substances at any facility or incineration vessel
containing such or similar Hazardous Substances; (j) any acts of Indemnitor, any Person affiliated with any Indemnitor, and
any tenant or other user of any Individual Property in accepting any Hazardous Substances for transport to disposal or
treatment facilities, incineration vessels or sites from which there is a Release, or a threatened Release of any Hazardous
Substance which causes the incurrence of costs for Remediation associated with any Individual Property; (k) any personal
injury, wrongful death, or property or other damage in any way connected with the presence or Release of Hazardous Substances
in, on, under or from any Individual Property arising under any statutory or common law or tort law theory, including but not
limited to damages assessed for private or public nuisance or for the conducting of an abnormally dangerous activity on or
near any Individual Property; and (l) any material misrepresentation or inaccuracy in any representation or warranty relating
to Hazardous Substances or Environmental Laws or material breach or failure to perform any covenants or other obligations
relating to Hazardous Substances or Environmental Laws pursuant to this Agreement, the Loan Agreement or any Security
Instrument.

 

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5.             DUTY TO DEFEND AND ATTORNEYS AND OTHER FEES AND EXPENSES. Upon written request by any Indemnified Party, Indemnitor
shall defend any Indemnified Parties with respect to the matters covered by Section 4 above (if requested by any Indemnified Party,
in the name of the Indemnified Party) by attorneys and other professionals reasonably approved by the Indemnified Parties. Notwithstanding
the foregoing, in the event that (i) any Indemnified Party determines in its reasonable discretion that the interests of Indemnitor
conflict in any material manner with the interests of such Indemnified Party, (ii) any Indemnified Party determines in its reasonable
discretion that the attorneys or professionals retained by Indemnitor are not representing the interests of such Indemnified Party
in a commercially reasonable manner, or (iii) any Indemnified Party determines in its reasonable discretion that there may be
legal defenses available to it that are different from or additional to those available to Indemnitor, then the Indemnified Parties
may engage their own attorneys and other professionals to defend or assist them, and, at the option of the Indemnified Parties,
their attorneys shall control the resolution of any claim or proceeding, provided that no compromise or settlement shall be entered
without Indemnitor’s consent, which consent shall not be unreasonably withheld. Upon demand, Indemnitor shall pay or, in
the reasonable discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and
disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals in connection therewith.
If more than one Indemnified Party is entitled to defend itself or participate in a proceeding hereunder, Indemnitor shall not
be obligated to pay for attorneys or other personnel described above for more than one Indemnified Party.

 

6.             DEFINITIONS. As used in this Agreement, the following terms shall have the following meanings: The term “Environmental
Laws” means any present and future federal, state and local laws, statutes, ordinances, rules, regulations and the like,
as well as common law, relating to protection of human health or the environment, relating to Hazardous Substances or relating
to liability for or costs of other actual or threatened danger to human health or the environment. The term “Environmental
Laws” includes, but is not limited to, the following statutes, as amended, any successor thereto, and any regulations
promulgated pursuant thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing similar
issues governing the use, ownership and/or operations of any Individual Property and related to human health and the environment
or Hazardous Substances: the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and
Community Right-to-Know Act; the Hazardous Substances Transportation Act; the Resource Conservation and Recovery Act (including
but not limited to Subtitle I relating to underground storage tanks); the Solid Waste Disposal Act; the Clean Water Act; the Clean
Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water
Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental
Policy Act; and the River and Harbors Appropriation Act. The term “Environmental Laws” also includes, but is
not limited to, any present and future federal, state and local laws, statutes ordinances, rules, regulations and the like, as
well as common law that: (a) conditions transfer of property upon the obtaining of any statement, certification, declaration or
other confirmation of, by or from a Governmental Authority as to the absence of any Hazardous Substances (or any Release thereof,
as applicable) in violation of applicable law or any other approval of a Governmental Authority of the environmental condition
of any Individual Property; (b) requires notification or disclosure of Releases of Hazardous Substances or other environmental
condition of any Individual Property to any Governmental Authority or other Person, whether or not in connection with any transfer
of title to or interest in such Individual Property; (c) imposes conditions or requirements relating to Hazardous Substances or
the Remediation thereof, in connection with permits or other authorization for lawful activity; (d) relates to nuisance, trespass
or other causes of action related to any Individual Property in connection with any environmental condition or use of Hazardous
Substances at any Individual Property or; (e) relates to wrongful death, personal injury, or property or other damage in connection
with any Hazardous Substances in, on under or from any Individual Property.

 

The term
“Hazardous Substances” includes but is not limited to any and all substances (whether solid, liquid or
gas) defined, regulated, listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances, hazardous
materials, extremely hazardous wastes, or words of similar meaning or regulatory effect under any present or future
Environmental Laws or that may have a negative impact on human health or the environment, including but not limited to
Microbial Matters which pose a threat to human health or the environment or adversely affect any Individual Property, mold,
petroleum and petroleum products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead, radon,
radioactive materials, flammables and explosives, but excluding, for purposes of the representations and warranties in
Section 1 hereof and covenants in Section 2 hereof, substances of kinds and in amounts ordinarily and customarily used or
stored in properties similar to any Individual Property, as applicable, for the purposes of cleaning or other maintenance or
operations and otherwise in compliance with all Environmental Laws.

 

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The term “Indemnified
Parties” includes Indemnitee, any Person who is or will have been involved in the origination of the Loan, any Person
who is or will have been involved with the servicing of the Loan, any Person in whose name the encumbrance created by the Security
Instruments is or will have been recorded, any Person who may hold or acquire or will have held a full or partial direct interest
in the Loan as well as custodians, trustees and other fiduciaries who hold or have held a full or partial interest in the Loan
for the benefit of third parties as well as the respective directors, officers, shareholders, partners, employees, agents, representatives
of any and all of the foregoing (including, but not limited to, any successors by merger, consolidation or acquisition of all or
a substantial portion of Indemnitee’s assets and business) and any receiver or other fiduciary appointed in a foreclosure
or other Creditors Rights Laws proceeding.

 

The term “Losses”
includes any actual losses, damages, costs, fees, expenses, claims, suits, judgments, awards, liabilities (including but not limited
to strict liabilities), obligations, fines, penalties, charges, costs of Remediation (whether or not performed voluntarily), amounts
paid in settlement, litigation costs, attorneys’ fees, engineers’ fees, environmental consultants’ fees, and
investigation costs (including but not limited to costs for sampling, testing and analysis of soil, water, air, building materials,
and other materials and substances whether solid, liquid or gas), in the case of each of the foregoing, of whatever kind or nature
and whether or not incurred in connection with any judicial or administrative proceedings, actions, claims, suits, judgments or
awards (but excluding lost profits and indirect, consequential, special, incidental, exemplary and/or punitive damages except to
the extent the Indemnified Parties are responsible therefore to unrelated third parties).

 

The term “Microbial
Matter” means fungi which reproduces through the release of spores or the splitting of cells, including, but not limited
to, mold, mildew, fungi, fungal spores, fragments and metabolites such as mycotoxins and microbial organic compounds.

 

The term “Release”
with respect to any Hazardous Substance includes but is not limited to any release, deposit, discharge, emission, leaking, leaching,
spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous
Substances.

 

The term “Remediation”
includes but is not limited to any response, remedial, removal, or corrective action; any activity to clean up, detoxify, decontaminate,
contain or otherwise remediate any Hazardous Substance; any actions to prevent, cure or mitigate any Release of any Hazardous Substance;
any action to comply with any Environmental Laws or with any permits issued pursuant thereto; any inspection, investigation, study,
monitoring, assessment, audit, sampling and testing, laboratory or other analysis, or evaluation relating to any Hazardous Substances
or to anything referred to herein.

 

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7.             OPERATIONS
AND MAINTENANCE PROGRAMS. If recommended by the Environmental Report or any other environmental assessment or audit of
any Individual Property (including, without limitation, any assessment or audit performed after the date hereof), Indemnitor
shall establish and comply with an operations and maintenance program with respect to such Individual Property, in form and
substance reasonably acceptable to Indemnitee, prepared by an environmental consultant reasonably acceptable to Indemnitee
(each such program, as applicable, the “O&M Program”), which O&M Program shall address any
asbestos-containing material or lead based paint that may now or in the future be detected at or on such Individual Property.
Borrower shall not permit any O&M Program to be amended in any material manner, terminated or replaced, in each case,
without obtaining Lender’s prior written consent thereto not to be unreasonably withheld. Without limiting the
generality of the foregoing, Indemnitee may require (a) periodic notices or reports to Indemnitee in form, substance and at
such intervals as Indemnitee may reasonably specify, (b) an amendment to any O&M Program to address changing
circumstances, laws or an adverse change in the condition of any existing asbestos-containing materials or lead based paint
at such Individual Property, (c) at Indemnitor’s sole expense, supplemental examination of the Properties by
consultants reasonably specified by Indemnitee if there is evidence of additional asbestos-containing materials or lead based
paint at such Individual Property or an adverse change in the condition of any existing asbestos-containing materials or lead
based paint at such Individual Property, and (d) reasonable access to the Properties by Indemnitee, its agents or servicer,
to review and assess the environmental condition of any Individual Property with regard to asbestos-containing materials or
lead based paint and Indemnitor’s compliance with any O&M Program, subject to the rights of tenants therein.
Indemnitor’s failure to comply with the foregoing provisions of this Section within sixty (60) days of written notice
from Indemnitee shall, at Indemnitee’s option, constitute an Event of Default. Without limitation of the foregoing,
Borrower hereby acknowledges and agrees that (i) as of the date hereof, Borrower has established operation and maintenance
programs for the Properties listed on Exhibit A attached hereto (the “Closing Date O&M
Programs”) and (ii) the Closing Date O&M Programs shall constitute an “O&M Program” for
purposes hereof.

 

8.             UNIMPAIRED
LIABILITY. Subject to Section 10 hereof, the liability of Indemnitor under this Agreement shall in no way be limited or
impaired by, and Indemnitor hereby consents to and agrees to be bound by, any amendment or modification of the provisions of
the Note, the Loan Agreement, the Security Instruments or any other Loan Document to or with Indemnitee by Indemnitor or any
Person who succeeds Indemnitor or any Person as owner of any Individual Property. In addition, the liability of Indemnitor
under this Agreement shall in no way be limited or impaired by (i) any extensions of time for performance required by the
Note, the Loan Agreement, the Security Instruments or any of the other Loan Documents, (ii) any sale or transfer of all or
part of the Properties, (iii) except as provided herein, any exculpatory provision in the Note, the Loan Agreement, the
Security Instruments or any of the other Loan Documents limiting Indemnitee’s recourse to any Individual Property or to
any other security for the Note, or limiting Indemnitee’s rights to a deficiency judgment against Indemnitor, (iv) the
accuracy or inaccuracy of the representations and warranties made by Indemnitor under the Note, the Loan Agreement, the
Security Instruments or any of the other Loan Documents or herein, (v) the release of Indemnitor or any other Person from
performance or observance of any of the agreements, covenants, terms or conditions contained in any of the other Loan
Documents by operation of law, Indemnitee’s voluntary act, or otherwise, (vi) the release or substitution in whole or
in part of any security for the Note, or (vii) Indemnitee’s failure to record the Security Instruments or file any UCC
financing statements (or Indemnitee’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; and, in any such case, whether with or without
notice to Indemnitor and with or without consideration.

 

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9.             ENFORCEMENT. Indemnified Parties may enforce the obligations of Indemnitor without first resorting to or exhausting
any security or collateral under, or without first having recourse pursuant to, the Note, the Loan Agreement, the Security Instruments
or under any other Loan Documents or any of the Properties, through foreclosure proceedings or otherwise, provided, however, that
nothing herein shall inhibit or prevent Indemnitee from suing on the Note, foreclosing, or exercising any power of sale under,
the Security Instrument, or exercising any other rights and remedies thereunder. This Agreement is not collateral or security
for the obligations of Borrower pursuant to the Loan Agreement, unless Indemnitee expressly elects in writing to make this Agreement
additional collateral or security for the debt of Indemnitor pursuant to the Loan Agreement, which Indemnitee is entitled to do
in its sole and absolute discretion. It is not necessary for an Event of Default to have occurred pursuant to and as defined in
the Security Instruments or the Loan Agreement for Indemnified Parties to exercise their rights pursuant to this Agreement. Notwithstanding
any provision of the Loan Agreement, the obligations pursuant to this Agreement are exceptions to any non-recourse or exculpation
provision of the Loan Agreement; Indemnitor is fully and personally liable for such obligations, and such liability is not limited
to the original or amortized principal balance of the Loan or the value of the Properties.

 

10.        
 SURVIVAL. The obligations and liabilities of Indemnitor under this Agreement shall fully survive
indefinitely notwithstanding any termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise of any
power of sale, or delivery of a deed in lieu of foreclosure of the Security Instruments. Notwithstanding the provisions of
this Agreement to the contrary, the liabilities and obligations of Indemnitor hereunder shall not apply with respect to an
Individual Property, to the extent that Indemnitor can prove that such liabilities and obligations arose solely from
Hazardous Substances that: (a) were not present on such Individual Property prior to the date that (i) Indemnitee or its
nominee acquired title to such Individual Property, whether by foreclosure, exercise of power of sale or otherwise or (ii)
the holder of a Mezzanine Loan or any third party (claiming by reason of judicial or non-judicial foreclosure, assignment in
lieu of foreclosure or other exercise of remedies by such holder) acquired title to 100% of the direct or indirect ownership
interests in Borrower or Principal owning such Individual Property (directly or indirectly), whether by foreclosure, exercise
of power of sale, assignment in lieu of foreclosure or otherwise; and (b) were not the result of any act or negligence
of Indemnitor or any of Indemnitor’s affiliates, agents or contractors. Notwithstanding the foregoing, the
indemnification obligations of Indemnitor hereunder shall terminate (except with respect to any then pending or asserted
claims or actions subject to indemnification hereunder) with regard to any Individual Property two (2) years after the full
and indefeasible payment by Indemnitor of the Debt, provided that at the time of such payment, Indemnitor furnishes to
Indemnitee a Phase I environmental report with respect to such Individual Property, which report is from an environmental
consultant reasonably acceptable to Lender, which updated environmental report(s) disclose, as of the date of such repayment,
no actual or threatened (other than as disclosed in the Environmental Report delivered to Indemnitee by Indemnitor in
connection with the origination of the Loan) (A) non-compliance with or violation in any material respect of applicable
Environmental Laws (or permits issued pursuant to Environmental Laws) in connection with such Individual Property, or
operations thereon, (B) Environmental Liens encumbering such Individual Property, (C) administrative processes or proceedings
or judicial proceedings in any way connected with any matter addressed in this Agreement or (D) presence or Release of
Hazardous Substances in, on, under or from such Individual Property, excluding substances of kinds and in amounts ordinarily
and customarily used or stored in properties similar to any Individual Property, for the purposes of cleaning or other
maintenance or operations and otherwise in compliance with all Environmental Laws, that has not been fully remediated in
accordance with all applicable Environmental Laws.

 

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11.       
  INTEREST. Any amounts payable to any Indemnified Parties under this Agreement shall become immediately due and payable
on written demand and, if not paid within ten (10) days of such written demand therefor, shall bear interest at the Default Rate.

 

12.         
 WAIVERS.

 

a.             Indemnitor hereby waives (i) any right or claim of right to cause a marshaling of Indemnitor’s assets or to
cause Indemnitee or other Indemnified Parties to proceed against any of the security for the Loan before proceeding under this
Agreement against Indemnitor; (ii) and relinquishes all rights and remedies accorded by applicable law to indemnitors or guarantors,
except any 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 any 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 Indemnitee or other Indemnified Parties; (iii) the right
to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against or by
Indemnitee or other Indemnified Parties; (iv) notice of acceptance hereof and of any action taken or omitted in reliance hereon;
(v) presentment for payment, demand of payment, protest or notice of nonpayment or failure to perform or observe, or other proof,
or notice or demand; and (vi) all homestead exemption rights against the obligations hereunder and the benefits of any statutes
of limitations or repose. Notwithstanding anything to the contrary contained herein, Indemnitor hereby agrees to postpone the
exercise of any rights of subrogation with respect to any collateral securing the Loan until the Loan shall have been paid in
full.

 

b.           
It shall not be necessary for Lender, in order to enforce payment under Section 4 hereof against Principal to first (i)
institute suit or pursue or exhaust any rights or remedies against Borrower or others liable for the Debt, (ii) enforce any rights
against any security that shall ever have been given to secure the Debt, (iii) join Borrower or any others liable for the payment
or performance pursuant to Section 4 hereof or any part thereof in any action to enforce this Agreement and/or (iv) resort to
any other means of obtaining payment or performance of this Agreement.

 

c.            
Suit may be brought or demand may be made against all parties who have signed this Agreement or any other indemnity covering
all or any part of the indemnity pursuant to Section 4 hereof, or against any one or more of them, separately or together, without
impairing the rights of Lender against any party hereto.

 

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d.           
 The exercise by Lender of any right or remedy hereunder or under any other Loan Document, or at law or in equity, shall
not preclude the concurrent or subsequent exercise of any other right or remedy. Lender shall have all rights, remedies and recourses
afforded to Lender by reason of this Agreement or any other Loan Document or by law or equity or otherwise, and the same (a) shall
be cumulative and concurrent, (b) may be pursued separately, successively or concurrently against Indemnitor or others obligated
for the indemnity pursuant to Section 4 hereof, or any part thereof, or against any one or more of them, or against any security
or otherwise, at the sole discretion of Lender, (c) may be exercised as often as occasion therefor shall arise, it being agreed
by Indemnitor that the exercise of, discontinuance of the exercise of or failure to exercise any of such rights, remedies, or
recourses shall in no event be construed as a waiver or release thereof or of any other right, remedy, or recourse, and (d) are
intended to be, and shall be, nonexclusive. No waiver of any default on the part of Indemnitor or of any breach of any of the
provisions of this Agreement or of any other document shall be considered a waiver of any other or subsequent default or breach,
and no delay or omission in exercising or enforcing the rights and powers granted herein or in any other document shall be construed
as a waiver of such rights and powers, and no exercise or enforcement of any rights or powers hereunder or under any other document
shall be held to exhaust such rights and powers, and every such right and power may be exercised from time to time. The granting
of any consent, approval or waiver by Lender shall be limited to the specific instance and purpose therefor and shall not constitute
consent or approval in any other instance or for any other purpose. No notice to or demand on Indemnitor in any case shall of
itself entitle Indemnitor to any other or further notice or demand in similar or other circumstances. No provision of this Agreement
or any right, remedy or recourse of Lender with respect hereto, or any default or breach, can be waived, nor can this Agreement
or Indemnitor be released or discharged in any way or to any extent, except specifically in each case by a writing intended for
that purpose (and which refers specifically to this Agreement) executed, and delivered to Indemnitor, by Lender, or where otherwise
specifically provided herein.

 

e.            
Notwithstanding anything to the contrary contained herein, (a) Principal shall not have any right of subrogation in or
under any of the Loan Documents or to participate in any way therein, or in any right, title or interest in and to any security
or right of recourse for the indemnity set forth in Section 4 hereof, until any liability with respect to Section 4 hereof has
been fully and finally paid, and (b) if Principal is or becomes an “insider” (as defined in Section 101 of the Bankruptcy
Code) with respect to Borrower, then Principal hereby irrevocably and absolutely waives any and all rights of contribution, indemnification,
reimbursement or any similar rights against Borrower with respect to this Agreement (including any right of subrogation, except
to the extent of collateral held by Lender), whether such rights arise under an express or implied contract or by operation of
law, until any liability with respect to Section 4 hereof have been fully and finally paid. It is the intention of the parties
that Principal shall not be deemed to be a “creditor” (as defined in Section 101 of the Bankruptcy Code) of Borrower
by reason of the existence of this Agreement in the event that Borrower or Principal becomes a debtor in any proceeding under
the Bankruptcy Code. This waiver is given to induce Lender to make the Loan as evidenced by the Note to Borrower.

 

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f.             Principal
hereby agrees that neither Lender’s rights or remedies nor Principal’s obligations under the terms of this
Agreement shall be released, diminished, impaired, reduced or affected by any one or more of the following events, actions,
facts, or circumstances, and the liability of Principal under this Agreement shall be absolute and unconditional irrespective
of (and Principal hereby waives any rights or protections related to): (i) any limitation of liability or recourse in any
other Loan Document or arising under any law; (ii) any claim or defense that this Agreement was made without consideration or
is not supported by adequate consideration; (iii) the taking or accepting of any other security or guaranty for, or right of
recourse with respect to, any or all of the liabilities pursuant to Section 4 hereof; (iv) any homestead exemption or any
other similar exemption under applicable Legal Requirements and Principal hereby waives the benefit of any such exemption as
to the liabilities pursuant to Section 4 hereof; (v) any release, surrender, abandonment, exchange, alteration, sale or other
disposition, subordination, deterioration, waste, failure to protect or preserve, impairment, or loss of, or any failure to
create or perfect any lien or security interest with respect to, or any other dealings with, any collateral or security at
any time existing or purported, believed or expected to exist in connection with any or all of the liabilities pursuant to
Section 4 hereof, including any impairment of Principal’s recourse against any Person or collateral; (vi) unless agreed
to in writing by Lender or as otherwise expressly set forth in the Loan Documents, whether express or by operation of law,
any partial release of the liability of Principal hereunder, or if one or more other guaranties are now or hereafter obtained
by Lender covering all or any part of the liabilities pursuant to Section 4 hereof, any complete or partial release of any
one or more of such indemnitors under any such other indemnity, or any complete or partial release or settlement of Borrower
or any other party liable, directly or indirectly, for the payment or performance of any or all of the liabilities pursuant
to Section 4 hereof; (vii) the death, insolvency, bankruptcy, disability, dissolution, liquidation, termination,
receivership, reorganization, merger, consolidation, change of form, structure or ownership, sale of all assets, or lack of
corporate, partnership or other power of Borrower or any other party at any time liable for the payment or performance of any
or all of the liabilities pursuant to Section 4 hereof; (viii) either with or without notice to or consent of Principal: any
renewal, extension, modification or rearrangement of the terms of any or all of the liabilities pursuant to Section 4 hereof
and/or any of the Loan Documents; (ix) any neglect, lack of diligence, delay, omission, failure, or refusal of Lender to take
or prosecute (or in taking or prosecuting) any action for the collection or enforcement of any of the liabilities pursuant to
Section 4 hereof, or to foreclose or take or prosecute any action to foreclose (or in foreclosing or taking or prosecuting
any action to foreclose) upon any security therefor, or to exercise (or in exercising) any other right or power with respect
to any security therefor, or to take or prosecute (or in taking or prosecuting) any action in connection with any Loan
Document, or any failure to sell or otherwise dispose of in a commercially reasonable manner any collateral securing any or
all of the liabilities pursuant to Section 4 hereof; (x) any failure of Lender to notify Principal of any creation, renewal,
extension, rearrangement, modification, supplement, subordination, or assignment of the liabilities pursuant to Section 4
hereof or any part thereof, or of any Loan Document, or of any release of or change in any security, or of any other action
taken or refrained from being taken by Lender against Borrower or any security or other recourse, or of any new agreement
between Lender and Borrower, it being understood that, except as expressly provided herein, Lender shall not be required to
give Principal any notice of any kind under any circumstances with respect to or in connection with the liabilities pursuant
to Section 4 hereof, any and all rights to notice Principal may have otherwise had being hereby waived by Principal, and
Principal shall be responsible for obtaining for itself information regarding Borrower, including, but not limited to, any
changes in the business or financial condition of Borrower, and Principal acknowledges and agrees that Lender shall have no
duty to notify Principal of any information which Lender may have concerning Borrower; (xi) if for any reason that Lender is
required to refund any payment by Borrower to any other party liable for the payment or performance of any or all of the
liabilities pursuant to Section 4 hereof or pay the amount thereof to someone else; (xii) the making of advances by Lender to
protect its interest in any Individual Property or the Properties, preserve the value of any Individual Property or the
Properties or for the purpose of performing any term or covenant contained in any of the Loan Documents; (xiii) the existence
of any claim, counterclaim, set off, recoupment, reduction or defense based upon any claim or other right that Principal may
at any time have against Borrower, Lender, or any other Person, whether or not arising in connection with this Agreement, the
Note, the Loan Agreement, or any other Loan Document, other than a claim that the liabilities pursuant to Section 4 hereof
have been fully paid and performed; (xiv) the unenforceability of all or any part of the liabilities pursuant to Section 4
hereof against Borrower, whether because the liabilities pursuant to Section 4 hereof exceed the amount permitted by law or
violate any usury law, or because the act of creating the liabilities pursuant to Section 4 hereof, or any part thereof, is
ultra vires, or because the officers or Persons creating same acted in excess of their authority, or because of a lack of
validity or enforceability of or defect or deficiency in any of the Loan Documents, or because Borrower has any valid
defense, claim or offset with respect thereto, or because Borrower’s obligation ceases to exist by operation of law, or
because of any other reason or circumstance, it being agreed that Principal shall remain liable hereon regardless of whether
Borrower or any other Person be found not liable on the liabilities pursuant to Section 4 hereof, or any part thereof, for
any reason (and regardless of any joinder of Borrower or any other party in any action to obtain payment or performance of
any or all of the liabilities pursuant to Section 4 hereof); (xv) any order, ruling or plan of reorganization emanating from
proceedings under any bankruptcy or similar insolvency laws with respect to Borrower or any other Person, including any
extension, reduction, composition, or other alteration of the liabilities pursuant to Section 4 hereof, whether or not
consented to by Lender; and/or (xvi) except as otherwise provided in Section 10 hereof or Article 6 of the Loan Agreement,
any partial or total transfer, pledge and/or reconstitution of Borrower and/or any direct or indirect owner of Borrower
(regardless of whether the same is permitted under the Loan Documents).

 

    12

     

    

 

g.           
EACH OF INDEMNITOR AND INDEMNITEE HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN EVIDENCED
BY THE NOTE, THE APPLICATION FOR THE LOAN EVIDENCED BY THE NOTE, THE SECURITY INSTRUMENT, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS
OR ANY ACTS OR OMISSIONS OF ANY INDEMNIFIED PARTIES IN CONNECTION THEREWITH.

 

13.           SUBROGATION. Indemnitor shall take any and all reasonable actions, including institution of
legal action against third parties, necessary or appropriate to obtain reimbursement, payment or compensation from such
Persons responsible for the presence of any Hazardous Substances at, in, on, or under any Individual Property, or otherwise
obligated by law to bear the cost. Indemnified Parties shall be and hereby are subrogated to all of Indemnitor’s rights
now or hereafter in such claims.

 

14.         
 INDEMNITOR’S REPRESENTATIONS AND WARRANTIES. Indemnitor represents and warrants that:

 

a.             
it has the full power and authority to execute and deliver this Agreement and to perform its obligations hereunder;
the execution, delivery and performance of this Agreement by Indemnitor has been duly and validly authorized; and all requisite
action has been taken by Indemnitor to make this Agreement valid and binding upon Indemnitor, enforceable in accordance with its
terms;

 

b.              its
execution of, and compliance with, this Agreement will not result in the breach of any term or provision of the charter, by-laws,
partnership, operating or trust agreement, or other governing instrument of Indemnitor or result in the breach of any term or
provision of, or conflict with or constitute a default under, or result in the acceleration of any obligation under, any agreement,
indenture or loan or credit agreement or other instrument to which Indemnitor or any Individual Property is subject, or result
in the violation of any law, rule, regulation, order, judgment or decree to which Indemnitor or any Individual Property is subject;

 

c.             
to the best of Indemnitor’s knowledge, there is no action, suit, proceeding or investigation pending or threatened
against it which, either in any one instance or in the aggregate, may result in any material adverse change in the business, operations,
financial condition, properties or assets of Indemnitor, or in any material impairment of the right or ability of Indemnitor to
carry on its business substantially as now conducted, or in any material liability on the part of Indemnitor, or which would draw
into question the validity of this Agreement or of any action taken or to be taken in connection with the obligations of Indemnitor
contemplated herein, or which would be likely to impair materially the ability of Indemnitor to perform under the terms of this
Agreement;

 

d.            
it does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained
in this Agreement;

 

e.             
to the best of Indemnitor’s knowledge, no approval, authorization, order, license or consent of, or registration
or filing with, any governmental authority or other Person, and no approval, authorization or consent of any other Person is required
in connection with this Agreement; and

 

f.               this
Agreement constitutes a valid, legal and binding obligation of Indemnitor, enforceable against it in accordance with the
terms hereof, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws or by equitable principles.

 

    13

     

    

 

 

15.             
NO WAIVER. No delay by any Indemnified Party in exercising any right, power or privilege under this Agreement shall
operate as a waiver of any such privilege, power or right.

 

16.             
NOTICE OF LEGAL ACTIONS. Each party hereto shall, within five (5) Business Days of receipt thereof, give written
notice to the other party hereto of (i) any notice from any governmental entity or any source whatsoever with respect to Hazardous
Substances on, being released from or affecting any Individual Property, and (ii) any legal action brought against such party
or related to any Individual Property, with respect to which Indemnitor may have liability under this Agreement. Such notice shall
comply with the provisions of Section 20 hereof.

 

17.             
NOTICES. All notices or other written communications hereunder shall be made in accordance with Article 14 of the
Loan Agreement to the addresses noted above (or to such other addresses as may be specified in writing by any party hereto to
the other parties hereto).

 

18.             
DUPLICATE ORIGINALS; COUNTERPARTS. This Agreement may be executed in any number of duplicate originals and each
duplicate original shall be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterparts
shall be deemed an original instrument and all of which together shall constitute a single Agreement. The failure of any party
hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.
Delivery of an executed counterpart of a signature page of this Agreement by facsimile or electronic image scan transmission (such
as a “.pdf” file) will be effective as delivery of an original manually-executed counterpart of the Agreement. Each
of Borrower and Principal represent and warrant that the intention of the natural Person signing this Agreement on its behalf
is to attribute its respective signature to the Agreement and that if the party has signed using an E-Signature (defined below),
that E-Signature represents the signer’s signature to this Agreement.  Each of Borrower and Principal understand and
agree that such E-Signature, if applicable, is legally binding.  Each party signing this Agreement using an E-Signature waives
all rights to repudiate the authenticity or validity of its E-signature to the extent such repudiation is based in whole or in
part on the fact that such signature is not in original handwritten form.  All parties to this Agreement agree that the law
governing all applicable E-Signatures will be the federal Electronic Signatures in Global and National Commerce Act of 2000 (15
U.S. Code, Chapter 96) (E-SIGN) and/or the Uniform Electronic Transactions Act of 1999 as promulgated by the U.S. Uniform Law
Commission for consideration and enactment by the States (UETA), and that under no circumstances will E-Signatures be governed
by the Uniform Computer Information Transactions Act (UCITA).  As used in this Agreement, “E-Signature”
means any form of signature other than an original handwritten signature, including any type of image created in any manner (whether
electronically or otherwise) which image could reasonably be interpreted as an indication of the signer’s intent to sign
the document.

 

    15

     

    

 

19.             
NO ORAL CHANGE. This Agreement, and any provisions hereof, may not be modified, amended, waived, extended, changed,
discharged or terminated orally or by any act or failure to act on the part of Indemnitor or any Indemnified Party, but only by
an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change,
discharge or termination is sought.

 

20.             
HEADINGS, ETC. The headings and captions of various paragraphs of this Agreement are for convenience of reference
only and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

 

21.              NUMBER
AND GENDER/SUCCESSORS AND ASSIGNS. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the Person or Persons referred to may require. Without limiting the effect of specific
references in any provision of this Agreement, the term “Indemnitor” shall be deemed to refer to each and every Person
comprising an Indemnitor from time to time, as the sense of a particular provision may require, and to include the heirs, executors,
administrators, legal representatives, successors and assigns of Indemnitor, all of whom shall be bound by the provisions of this
Agreement, provided that no obligation of Indemnitor may be assigned except with the written consent of Indemnitee. Each reference
herein to Indemnitee shall be deemed to include its successors and assigns. This Agreement shall inure to the benefit of Indemnified
Parties and their respective successors and permitted assigns forever.

 

22.             
RELEASE OF LIABILITY. Any one or more parties liable upon or in respect of this Agreement may be released without
affecting the liability of any party not so released.

 

23.             
RIGHTS CUMULATIVE. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies
which Indemnitee has under the Note, the Security Instruments, the Loan Agreement or the other Loan Documents or would otherwise
have at law or in equity.

 

24.             
INAPPLICABLE PROVISIONS. If any term, condition or covenant of this Agreement shall be held to be invalid, illegal
or unenforceable in any respect, this Agreement shall be construed without such provision.

 

25.             
GOVERNING LAW. The governing law and related provisions set forth in Section 17.2 of the Loan Agreement (including,
without limitation, any authorized agent provisions thereof) are hereby incorporated by reference as if fully set forth herein
(with Indemnitor substituted in all places where Borrower appears thereunder) and shall be deemed fully applicable to Indemnitor
hereunder. Indemnitor hereby certifies that it has received and reviewed the Loan Agreement (including, without limitation, Section
17.2 thereof). In the event of any conflict or inconsistency between the terms and conditions hereof and this Section 25, this
Section 25 shall control.

 

    16

     

    

 

26.             
MISCELLANEOUS.

 

a.                Wherever
pursuant to this Agreement (i) Indemnitee (or any other Indemnified Party) exercises any right given to it to approve or disapprove
any matter, (ii) any arrangement or term is to be satisfactory to Indemnitee (or any other Indemnified Party), or (iii) any other
decision or determination is to be made by Indemnitee (or any other Indemnified Party), the decision of Indemnitee (or such other
Indemnified Party) to approve or disapprove such matter, all decisions that arrangements or terms are satisfactory or not satisfactory
to Indemnitee (or such other Indemnified Party) and all other decisions and determinations made by Indemnitee (or such other Indemnified
Party), shall be in the sole and absolute discretion of Indemnitee (or such other Indemnified Party) and shall be final and conclusive,
except as may be otherwise expressly and specifically provided herein.

 

b.                Wherever
pursuant to this Agreement it is provided that Indemnitor pay any costs and expenses, such costs and expenses shall include, but
not be limited to, reasonable legal fees and disbursements of Indemnitee, whether retained firms, the reimbursements for the expenses
of the in-house staff or otherwise.

 

c.                If
Indemnitor consists of more than one person or party, the obligations and liabilities of each such person or party hereunder shall
be joint and several.

 

27.             
STATE SPECIFIC PROVISIONS. In the event of any inconsistencies between the terms and conditions of this Section
27 and the other terms and conditions of this Agreement, the terms and conditions of Section 27 shall control and be binding.

 

a.                With
respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State of Arkansas:

 

i.              For
purposes of any of the Properties in the State of Arkansas, the term “Environmental Law” shall include all applicable
Arkansas environmental laws, including but not limited to, Arkansas Solid Waste Management Act, A.C.A. § 8-6-201, et.
seq.; Arkansas Hazardous Waste Management Act of 1979, A.C.A. § 8-7-201, et. seq.; Arkansas Water and Air Pollution
Control Act, A.C.A. § 8-4-101, et. seq.; and, Arkansas Clean Indoor Act of 2006, A.C.A. § 20-27-1801, et.
seq.

 

b.                With
respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State of California:

 

i.              For
purposes of any of the Properties in the State of California, the term “Environmental Law” shall include the
Porter-Cologne Water Cleanup Act, the Waste Management Act of 1980, the Toxic Pit Cleanup Act, the Underground Tank Act of 1984,
the California Waste Quality Improvement Act and California Health and Safety Code Sections 25117 and 25316.

 

ii.             In accordance with California Code of Civil Procedure Section 736, as such Section may be amended from time to time, Indemnitee
may bring an action for breach of contract against Indemnitor for breach of any environmental provisions (as such term is defined
in such Section) made by Indemnitor herein or in any other Loan Document for the recovery of damages (other than lost profits
and indirect, consequential, special, incidental, exemplary and/or punitive damages except to the extent the Indemnified Parties
are responsible therefor to unrelated third parties) and/or for the enforcement of any environmental provision.

 

    17

     

    

 

iii.            In
accordance with California Code of Civil Procedure Section 726.5, as such Section may be amended from time to time, Indemnitee
may waive the security of any Security Instrument as to any parcel of the Properties that is environmentally impaired or is an
affected parcel (as such terms are defined in such Section), and as to any personal property which is Property attached to such
parcel, and thereafter exercise against Borrower, to the extent permitted by such Section 726.5, the rights and remedies of an
unsecured creditor, including reduction of Indemnitee’s claim against Borrower to judgment, and any other rights and remedies
permitted by law. In the event Indemnitee elects, in accordance with California Code of Civil Procedure Section 726.5, to waive
all or part of the security of the Security Instruments and proceed against Borrower on an unsecured basis, the valuation of the
real property, the determination of the environmentally impaired status of such security and any cause of action for a money judgment,
shall, at the request of Indemnitee, be referred to a referee in accordance with California Code of Civil Procedure Section 638
et seq. Such referee shall be an M.A.I. appraiser selected by Indemnitee and approved by Borrower, which approval shall not be
unreasonably withheld or delayed. The decision of such referee shall be binding upon both Borrower and Indemnitee, and judgment
upon the award rendered by such referee shall be entered in the court in which such proceeding was commenced in accordance with
California Code of Civil Procedure Sections 644 and 645. Borrower shall pay all reasonable costs and expenses incurred by Indemnitee
in connection with any proceeding under California Code of Civil Procedure Section 726.5, as such Section may be amended from
time to time.

 

iv.            This
Agreement is intended to be cumulative of any rights of Indemnitee under California Code of Civil Procedure Sections 564, 726.5
and 736 and under California Civil Code Section 2929.5. Indemnitor hereby waives any restrictions or limitations which such statutes
may impose on Indemnitor’s liability or any Indemnitee’s rights or remedies under this Agreement.

 

    18

     

    

 

v.             Indemnitor
hereby waives: (a) any defense based upon any legal disability or other defense of Borrower, any other guarantor or other person,
or by reason of the cessation or limitation of the liability of Borrower from any cause other than full payment of all sums payable
under the Note, the Loan Agreement or any of the other Loan Documents; (b) any defense based upon any lack of authority of the
officers, directors, partners or agents acting or purporting to act on behalf of Borrower or any principal of Borrower or any
defect in the formation of Borrower or any principal of Borrower; (c) any defense based upon the application by Borrower of the
proceeds of the Loan for purposes other than the purposes represented by Borrower to Indemnitee or intended or understood by Indemnitee
or Indemnitor; (d) any rights or defenses that may be available by reason of any election of remedies by Indemnitee (including,
without limitation, any such election which in any manner impairs, effects, reduces, releases, destroys or extinguishes Indemnitor’s
subrogation rights, rights to proceed against Borrower for reimbursement, or any other rights of Indemnitor to proceed against
any other person, entity or security, including but not limited to any defense based upon an election of remedies by Indemnitee
under the provisions of Section 580(d) of the California Code of Civil Procedure or any similar law of California or of any other
State or of the United States); (e) any defense based upon Indemnitee’s failure to disclose to Indemnitor any information
concerning Borrower’s financial condition or any other circumstances bearing on Borrower’s ability to pay all sums
payable under the Note, the Loan Agreement or any of the other Loan Documents; (f) any defense based upon any statute or rule
of law which provides that the obligation of a surety must be neither larger in amount nor in any other respects more burdensome
than that of a principal; (g) any defense based upon Indemnitee’s election, in any proceeding instituted under the Bankruptcy
Code, of the application of Section 1111(b)(2) of the Bankruptcy Code or any successor statute; (h) any defense based upon any
borrowing or any grant of a security interest under Section 364 of the Bankruptcy Code; (i) any right of subrogation, any right
to enforce any remedy which Indemnitee may have against Borrower and any right to participate in, or benefit from, any security
for the Note, the Loan Agreement or the other Loan Documents now or hereafter held by Indemnitee; (j) other than those expressly
provided for in this Agreement and/or the Loan Agreement, presentment, demand, protest and notice of any kind; and (k) the benefit
of any statute of limitations affecting the liability of Indemnitor hereunder or the enforcement hereof. Indemnitor agrees that
the payment of all sums payable under the Note, the Loan Agreement or any of the other Loan Documents or any part thereof or other
act which tolls any statute of limitations applicable to the Note, the Loan Agreement or the other Loan Documents shall similarly
operate to toll the statute of limitations applicable to Indemnitor’s liability hereunder. Without limiting the generality
of the foregoing or any other provision hereof, Indemnitor expressly waives to the extent permitted by law any and all rights
and defenses which might otherwise be available to Indemnitor under California Civil Code Sections 2787 to 2855, inclusive, 2899
and 3433 and under California Code of Civil Procedure Sections 580a, 580b, 580d and 726, or any of such sections and all other
rights and defenses that Indemnitor might have because the Debt is secured by real property. This means, among other things, Indemnitee
may collect from Indemnitor without first foreclosing on any real or personal property collateral pledged by Borrower; and if
Indemnitee forecloses on any real property collateral pledged by Borrower, the amount of the Debt may be reduced only by the price
for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the same price, and Indemnitee
may collect from Indemnitor even if Indemnitee, by foreclosing on the real property collateral, has destroyed any right Indemnitor
may have to collect from Borrower. This is an unconditional and irrevocable waiver of any rights and defenses Indemnitor may have
because Borrower’s Debt evidenced by the Note is secured by real property. These rights and defenses include, but are not
limited to, any rights or defenses based upon Sections 580a, 580b, 580d, or 726 of the California Code of Civil Procedure.

 

vi.            Indemnitor
hereby also waives and agrees not to assert or take advantage of any defense of Indemnitor based upon Indemnitee’s election
of any remedy against Indemnitor or Borrower or both, including, without limitation, the defense to enforcement of this Agreement
(the “Gradsky” defense based upon Union Bank v. Gradsky, 265 Cal. App. 2d 40 (1968) or subsequent cases) which, absent
this waiver, Indemnitor would have by virtue of an election by Indemnitee to conduct a non-judicial foreclosure sale of the Properties,
it being understood by Indemnitor that any such non-judicial foreclosure sale will destroy, by operation of California Code of
Civil Procedure Section 580d, all rights of any party to a deficiency judgment against Borrower, and, as a consequence, will destroy
all rights which Indemnitor would otherwise have (including, without limitation, the right of subrogation, the right of reimbursement,
and the right of contribution) to proceed against Borrower and to recover any such amount, and that Indemnitee could be otherwise
estopped from pursuing Indemnitor for a deficiency judgment after a non-judicial foreclosure sale on the theory that a guarantor
should be exonerated if a lender elects a remedy that eliminates the guarantor’s subrogation, reimbursement or contribution
rights.

 

    19

     

    

 

vii.           Indemnitor
hereby also waives its right, under Sections 2845 or 2850 of the California Civil Code, or otherwise, to require Indemnitee to
institute suit against, or to exhaust any rights and remedies which Indemnitee has or may have against, Indemnitor or any third
party, or against any collateral for the obligations provided by Borrower or any third party.  In this regard, Indemnitor
agrees that it is bound to the payment of all obligations hereunder, whether now existing or hereafter accruing as fully as if
such obligations were directly owing to Indemnitee by Indemnitor.  Indemnitor further waives any defense arising by reason
of any disability or other defense (other than the defense that the obligations are not due and owing or that the obligations
shall have been fully and finally performed and indefeasibly paid) of Indemnitor or by reason of the cessation from any cause
whatsoever of the liability of Indemnitor in respect thereof.

 

viii.          Indemnitor
hereby also waives (i) any rights to assert against Indemnitee any defense (legal or equitable), set off, counterclaim, or claim
which Indemnitor may now or at any time hereafter have against Indemnitor or any other party liable to Indemnitee; (ii) any defense,
set off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection,
sufficiency, validity, or enforceability of the obligations or any security therefor; (iii) any defense Indemnitor has to performance
hereunder, and any right Indemnitor has to be exonerated, provided by Sections 2819, 2822 or 2825 of the California Civil Code,
or otherwise, arising by reason of:  any claim or defense based upon an election of remedies by Indemnitee; the impairment
or suspension of Indemnitee’s rights or remedies against Indemnitor; the alteration by Indemnitee of its obligations; any
discharge of Indemnitor’s obligations to Indemnitee by operation of law as a result of Indemnitee’s intervention or
omission; or the acceptance by Indemnitee of anything in partial satisfaction of its obligations; (iv) the benefit of any statute
of limitations affecting Indemnitor’s liability hereunder or the enforcement thereof, and any act which shall defer or delay
the operation of such statute of limitations applicable to Indemnitor’s liability hereunder. Notwithstanding anything to
the contrary contained herein, Indemnitor does not waive the defense that any obligation is not due or owing or the defense that
the obligations shall have been fully and finally performed and indefeasibly paid.

 

ix.            JUDICIAL
REFERENCE AGREEMENT; REFEREE; COSTS.

 

(1)           Controversies
Subject to Judicial Reference; Conduct of Reference. In the event that any action, proceeding and/or hearing on any matter whatsoever,
including all issues of fact or law arising out of, or in any way connected with, the Properties, the Note, this Agreement or
any of the Loan Documents, or the enforcement of any remedy under any law, statute, or regulation (hereinafter, a “Controversy”),
is to be tried in a court of Los Angeles County, California and the jury trial waiver provisions set forth above are not permitted
or otherwise applicable under then-prevailing law:

 

(a)        each
controversy shall be determined by a consensual general judicial reference (the “Reference”) pursuant to the
provisions of California Code of Civil Procedure §§ 638 et seq., as such statutes may be amended or modified from time
to time.

 

    20

     

    

 

(b)        upon
a written request, or upon an appropriate motion by either Indemnitee or Indemnitor, any pending action relating to any controversy
and every controversy shall be heard by a single referee who shall then try all issues (including any and all questions of law
and questions of fact relating thereto), and issue findings of fact and conclusions of law and report a statement of decision.
The referee’s statement of decision will constitute the conclusive determination of the controversy. Indemnitee and Indemnitor
agree that the referee shall have the power to issue all legal and equitable relief appropriate under the circumstances before
him/her.

 

(c)        Indemnitee
and Indemnitor shall promptly and diligently cooperate with one another and the referee, and shall perform such acts as may be
necessary to obtain prompt and expeditious resolution of each controversy in accordance with the terms of this Section 27(b)(ix).

 

(d)        either
Indemnitee or Indemnitor may file the referee’s findings, conclusions and statement with the clerk or judge of any appropriate
court, file a motion to confirm the referee’s report and have judgment entered thereon. If the report is deemed incomplete
by such court, the referee may be required to complete the report and resubmit it.

 

(e)        Indemnitee
and Indemnitor will each have such rights to assert such objections as are set forth in California Code of Civil Procedure §§
638 et seq.

 

(f)         all
proceedings shall be closed to the public and confidential, and all records relating to the Reference shall be permanently sealed
when the order thereon becomes final.

 

(2)           Selection of Referee; Powers.

 

(a)        Indemnitee
and Indemnitor shall select a single neutral referee (the “Referee”), who shall be a retired judge or justice
of the courts of the State of California, or a federal court judge, in each case, with at least ten years of judicial experience
in civil matters. The Referee shall be appointed in accordance with California Code of Civil Procedure §§ 638 (or pursuant
to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts).

 

(b)
       If within ten (10) days after the request or motion for the Reference, Indemnitee
and Indemnitor cannot agree upon a Referee, either Indemnitee or Indemnitor may request or move that the Referee be appointed
by the Presiding Judge of the Los Angeles County Superior Court or of the U.S. District Court for the Central District of
California. The Referee shall determine all issues relating to the applicability, interpretation, legality and enforceability
of this Section 27(b)(ix).

 

    21

     

    

 

(3)           Provisional Remedies; Self-Help and Foreclosure.

 

(a)        No
provision of this Section 27(b)(ix) shall limit the right of either Indemnitee or Indemnitor, as the case may be, to (1) exercise
such self-help remedies as might otherwise be available under applicable law, (2) initiate judicial or non-judicial foreclosure
against any real or personal property collateral, (3) exercise any judicial or power of sale rights, or (4) obtain or oppose provisional
or ancillary remedies, including without limitation, injunctive relief, writs of possession, the appointment of a receiver, and/or
additional or supplementary remedies from a court of competent jurisdiction before, after or during the pendency of the Reference.

 

(b)        The
exercise of, or opposition to, any such remedy does not waive the right of Indemnitee or Indemnitor to the Reference pursuant
to this Section 27(b)(ix).

 

(4)           Costs
and Fees.

 

(a)        Promptly
following the selection of the Referee, Indemnitee and Indemnitor shall each advance equal portions of the estimated fees and
costs of the Referee.

 

(b)        In
the statement of decision issued by the Referee, the Referee shall determine that one of the parties is the prevailing party and
award costs, including reasonable attorneys’ fees, to the prevailing party, if any, and may order the Referee’s fees
to be paid or shared by Indemnitor and/or Indemnitee in such manner as the Referee deems just.

 

c.                With
respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State of Connecticut:

 

i.              INDEMNITORS
HEREBY ACKNOWLEDGE THAT THE TRANSACTION OF WHICH THIS AGREEMENT IS A PART IS A COMMERCIAL TRANSACTION, AND HEREBY WAIVE THEIR
RIGHT TO NOTICE AND HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES, OR AS OTHERWISE ALLOWED BY ANY STATE OR FEDERAL
LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE LENDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

 

ii.             For purposes of any Individual Property located in the State of Connecticut, the term “Environmental Law” shall
also include Section 22a-234 et seq. of the Connecticut General Statutes (the so-called “Connecticut Transfer Act”),
as the same may have been amended from time to time.

 

    22

     

    

 

d.                With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of Idaho:

 

i.              The representations, warranties and covenants Indemnitor set forth in this Agreement are not secured by any Security Instrument
or any other security documents securing the Loan and shall not be discharged or satisfied by foreclosure of the liens created
by any Security Instrument or other security documents, except as otherwise provided herein.

 

e.                With
respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the Commonwealth of
Massachusetts:

 

i.              For purposes of any of the Properties in the Commonwealth of Massachusetts, the term “Environmental Law” shall
also include the Massachusetts Oil and Hazardous Materials Release, Prevention and Response Act, M.G.L. c. 21E; the Massachusetts
Hazardous Waste Management Act, M.G.L. c. 21C; the Massachusetts Clean Waters Act, M.G.L. c. 21, §§26-53; and the Massachusetts
Air Pollution Control Laws, M.G.L. c. 111, §§ 142A-142M, each as amended, any successor thereto, and any regulations
promulgated pursuant thereto.

 

f.                 With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of Minnesota:

 

i.              For purposes of any of the Properties in the State of Minnesota, the term “Environmental Law” shall also include
the Minnesota Environmental Response and Liability Act, Minnesota Statutes Chapter 115B, the Minnesota Petroleum Tank Release
and Clean-up Act, Minnesota Statues Chapter 115C; and the Minnesota Environmental Rights Act, Chapter 116B.

 

g.                With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of Mississippi:

 

i.              For purposes of any of the Properties in the State of Mississippi, the term “Environmental Law” shall also
include the Mississippi Solid Wastes Disposal Law of 1974, as amended, Miss. Code Ann. § 17-17-1 et seq., the Mississippi
Air and Water Pollution Control Law, Miss. Code Ann. § 49-17-1 et seq., and regulations promulgated pursuant thereto. 

 

    23

     

    

 

h.                With
respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State of Missouri:

 

i.              TO
EFFECTUATE THE FOREGOING, INDEMNIFIED PARTIES ARE HEREBY GRANTED A POWER OF ATTORNEY TO FILE, AS ATTORNEY-IN-FACT FOR
INDEMNITOR, A COPY OF THIS AGREEMENT IN ANY COURT WITH JURISDICTION OVER ANY INDIVIDUAL PROPERTY LOCATED IN THE STATE OF
MISSOURI. THIS GRANT IS TO ALLOW INDEMNIFIED PARTIES TO RECEIVE THE BENEFIT OF THIS WAIVER OF TRIAL BY JURY PURSUANT TO
SECTION 510.190, RSMO, RULE 69.01 V.A.M.R. AND/OR ANY OTHER APPLICABLE LAW. THE COPY OF THIS AGREEMENT SO FILED SHALL
CONCLUSIVELY BE DEEMED TO CONSTITUTE THE WAIVER OF TRIAL BY JURY BY INDEMNITOR IN ANY PROCEEDING ARISING OUT OF OR OTHERWISE
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, OR INDEMNIFIED PARTIES’ CONDUCT WITH RESPECT TO ANY OF THE
FOREGOING. THIS POWER OF ATTORNEY IS COUPLED WITH AN INTEREST AND IS IRREVOCABLE. INDEMNITOR ACKNOWLEDGES THAT THE FOREGOING
WAIVER HAS BEEN REVIEWED WITH AN ATTORNEY OF INDEMNITOR’S CHOICE AND THE MEANING AND EFFECT OF THE FOREGOING WAIVER ARE
FULLY UNDERSTOOD.

 

ii.             For
purposes of any Properties in the State of Missouri, the term “Environmental Law” shall also include, without limitation,
the Missouri Solid Waste Management Law (Mo. Rev. Stat. §§ 260.200-260.345); Missouri Hazardous Waste Management Law
(Mo. Rev. Stat. §§ 260.350-260.434); Missouri Abandoned or Uncontrolled Sites Law (Mo. Rev. Stat. §§ 260.435-260.482);
Mo. Rev. Stat. §§ 260.500-260.609 (hazardous substance cleanup and hazardous waste management); Mo. Rev. Stat. §§
260.900-260.965 (dry-cleaning facilities); Missouri Air Conservation Law (Mo. Rev. Stat. Chapter 643); Missouri Clean Water Law
(Mo. Rev. Stat. Chapter 644); Missouri Underground Storage Tank Regulation (Mo. Rev. Stat. §§ 319.100-319.137) and the
amendments, regulations, orders, decrees, permits, licenses, guidance documents or deeds now or hereafter promulgated thereunder,
as applicable, all as amended from time to time; and all other state, county, municipal, local or other laws, ordinances or regulations
which relate to protection of human health and the environment, or to management or clean-up of Hazardous Substances or liability
for or costs of the same, and the amendments, administrative rules, regulations, orders, decrees, permits, licenses, guidance
documents or deeds now or hereafter promulgated thereunder, as applicable, all as amended from time to time.

 

i.                 With
respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State of New Hampshire:

 

i.              For
purposes of any of the Properties in the State of New Hampshire, the term “Environmental Law” shall also include New
Hampshire RSA Ch. 21-P:16-24 (Transport of Hazardous Materials and Waste); 125-C (Air Pollution Control); 130-A (Lead Paint Poisoning
Prevention and Control); 141-E (Asbestos Management and Control); 146-A (Oil Spillage); 146-C (Underground Storage Facilities);
146-D (Oil Discharge and Disposal Cleanup Fund); 147-A (Hazardous Waste Management); 147-B (Hazardous Waste Cleanup Fund); 277-A
(Worker’s Right to Know Act); 485 (N.H. Safe Drinking Water Act); and 485-A (Water Pollution and Waste Disposal), each as
amended.

 

j.                 With
respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State of New Jersey:

 

i.              For
purposes of any of the Properties in the State of New Jersey, the term “Environmental Law” shall also include the
Spill Compensation Control Act, N.J.S.A. 58:10-23.11 et seq.; the Water Pollution Control Act, N.J.S.A. 58:10A-1 et seq.; the
Solid Waste Management Act, N.J.S.A. 13:1E-1, et seq.; and the Site Remediation Reform Act, N.J.S.A. 58:10C-1 et seq. and the
Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et seq., and their implementing regulations at N.J.A.C. 7:26B-1.1 et
seq.;  N.J.A.C. 7:26C-1.1 et seq.; and N.J.A.C. 7:26E-1.1, et seq., each as amended.

 

    24

     

    

 

 

k.                 
 With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the
State of New Mexico:

 

i.                       
 For purposes of any of the Properties in the State of New Mexico, the term “Environmental Law” shall also
include the Environmental Improvement Act, NMSA 1978, Section 74-1-1 et seq,; the Air Quality Control Act, NMSA 1978, Sections
74-2-1 et seq.; the Hazardous Waste Act, NMSA 1978, Sections 74-4-1 et seq.; the Water Quality Act, NMSA 1978, Sections 74-6-1
et seq.; and the Ground Water Protection Act, NMSA 1978, Sections 74-6B-1, et seq.; each as amended and the rules and regulations
promulgated pursuant thereto; and all other state, county, municipal, local or other laws, ordinances or regulations which may
relate to or deal with protection of human health or the environment in the State of New Mexico, relating to Hazardous Substances
or relating to liability for or costs of other actual or threatened danger to human health or the environment, and the amendments,
regulations, orders, decrees, permits, licenses, guidance documents or deeds now or hereafter promulgated thereunder, as applicable,
all as amended from time to time.

 

ii.                       
 To the extent applicable, if at all, the indemnifications set forth in this Agreement and the other agreements related
hereto are limited by and subject to the provisions of NMSA 1978, Section 56-7-1 (2005), as amended from time to time.

 

l.                   
 With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the
Commonwealth of Pennsylvania:

 

i.                       
 For purposes of any of the Properties in the Commonwealth of Pennsylvania, the term “Environmental Law”
shall also include, without limitation, the Pennsylvania Hazardous Sites Cleanup Act, 35 P.S. 6020.101 et seq.; the Pennsylvania
Solid Waste Management Act, 35 P.S. 6018.101 et seq.; the Pennsylvania Clean Streams Law, 35 P.S. 691.1 et seq.; the Pennsylvania
Storage Tank and Spill Prevention Act, 35 P.S. 6021.101 et seq.; the Pennsylvania Sewage Facilities Act, 35 P.S. 750.1 et seq.;
and the Pennsylvania Dam Safety and Encroachments Act, 32 P.S. 693.1 et seq.

 

m.               
 With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of Rhode Island:

 

i.                       
For purposes of any of the Properties in the State of Rhode Island, the term “Environmental Law” shall include,
without limitation, any analogs of the aforementioned federal statutes under Rhode Island law, the Hazardous Materials Management
Act, R.I.G.L. §23-19.1-1 et seq., the Industrial Property Remediation and Reuse Act, R.I.G.L. §23-19.14-1 et seq., the
Air Pollution Act, R.I.G.L. §23-23-1 et seq., the Hazardous Substances Act, R.I.G.L. §23-24-1 et seq., each as amended
and any successor thereto, and any regulations or guidance promulgated (pursuant to the aforementioned laws or otherwise) by the
Rhode Island Department of Environmental Management.

 

    25

     

    

 

n.                 
 With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of South Carolina:

 

i.                       
 For purposes of any of the Properties in the State of South Carolina, the term “Environmental Law” shall
also include the South Carolina Pollution Control Act, S.C. Code Ann. Section 48-1-10 et seq.

 

ii.                       
 INDEMNITOR HEREBY WAIVES AND RELINQUISHES ANY AND ALL STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL
FORECLOSURE SALE WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUED OF THE INDIVIDUAL PROPERTY AND/OR PROPERTIES.

 

iii.                       
 INDEMNITOR ACKNOWLEDGES AND AFFIRMS THAT IT RECEIVED WRITTEN NOTIFICATION BEFORE THE TRANSACTION THAT A WAIVER OF STATUTORY
APPRAISAL RIGHTS WAS REQUIRED IN ACCORDANCE WITH THE PROVISIONS OF S.C. CODE ANN. SECTION 29-3-680.

 

o.                 
With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of South Dakota:

 

i.                       
For purposes of any of the Properties in the State of South Dakota, the term “Environmental Law” shall also
include SDCL Chapter 34A-1 (Air Pollution Control), SDCL Chapter 34A-2 (Water Pollution Control), SDCL Chapter 34A-6 (Solid Waste
Management), the South Dakota Environmental Protection Act of 1973 (SDCL Chapter 34A-10), SDCL Chapter 34A-11 (Hazardous Waste
Management), SDCL Chapter 34A-12 (Regulated Substance Discharges) and the Petroleum Inspection and Release Compensation Act (SDCL
Chapter 34A-13), together with all applicable rules, regulations and requirements of the South Dakota Codified Laws relating to
each statutory authority, and all other state, county, municipal, local or other law, ordinance or regulation which may relate
to or deal with protection of human health or the environment in the State of South Dakota, relating to Hazardous Substances or
relating to liability for or costs of other actual or threatened danger to human health or the environment, and the amendments,
administrative rules, regulations, orders, decrees, permits, licenses, guidance documents or deeds now or hereafter promulgated
thereunder, as applicable, all as amended from time to time.

 

p.                 
With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of Texas:

 

i.                       
 For purposes of any of the Properties in the State of Texas, the term “Environmental Law” shall include
and any corresponding state laws or ordinances including but not limited to the Texas Water Code § 26.001 et seq.; Texas Health
& Safety Code § 361.001 et seq.; and Texas Solid Waste Disposal Act, Tex. Rev. Civ. Stat. Ann. art. 4477-7.

 

    26

     

    

 

q.                 
 With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the
Commonwealth of Virginia:

 

i.                       
 For purposes of any of the Properties situated in whole or in part in the Commonwealth of Virginia, the term “Environmental
Law” shall also include without limitation (i) the regulatory requirements of the Virginia Department of Environmental Quality,
the Virginia Air Pollution Control Board, the Virginia Resources Authority, and the Virginia Gas and Oil Board; (ii) the provisions
of Title 62.1 of the Virginia Code (Waters of the State, Ports and Harbors); (iii) the Virginia Air Pollution Control Board laws
(Va. Code § 10.1-1300 to § 10.1-1327); (iv) the Virginia Water Quality Improvement Act of 1997 (Va. Code § 10.1-2117
to § 10.1-2134.1); (v) the Virginia Waste Management Act (Va. Code § 10.1-1400 to § 10.1-1458); and the Virginia
Gas and Oil Act (Va. Code § 45.1-361.1 to Va. Code § 45.1-361.44); together with all applicable rules, regulations and
requirements of the Virginia Administrative Code relating to each statutory authority, and all other state, county, municipal,
local or other law, ordinance or regulation which may relate to or deal with protection of human health or the environment in the
Commonwealth of Virginia, relating to Hazardous Substances or relating to liability for or costs of other actual or threatened
danger to human health or the environment, and the amendments, regulations, orders, decrees, permits, licenses, guidance documents
or deeds now or hereafter promulgated thereunder, as applicable, all as amended from time to time.

 

ii.                       
 Indemnitor specifically waives the provisions of Section 49-25 and 49-26 of the Code of Virginia, as amended.

 

r.                   
 With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of West Virginia:

 

i.                       
For the purposes of any of the Properties situated in whole or in part in the State of West Virginia, the term “Environmental
Law” shall also include without limitation (i) the comprehensive regulatory requirements of the West Virginia Department
of Environmental Protection, (ii) the provisions of Chapter 22 of the West Virginia Code, as amended, (iii) The Water Pollution
Control Act, W.Va. Code §22-11-1, et seq., (iv) The Ground Water Protection Act, W.Va. Code §22-12-1, et seq.,(v) The
Solid Waste Management Act, W.Va. Code §22-15-1, et seq., The Underground Storage Tank Act, W.Va. Code §22-17-1, et seq.,
(vi) The Hazardous Waste Management Act, W.Va. Code §22-18-1, et seq., (vii) The Water Resources Protection and Management
Act, W.Va. Code §22-26-1, et seq., (viii) The Aboveground Storage Tank Act, W.Va. Code §22-30-1, et seq., (ix) Provisions
Limiting The Civil Liability of the Possessor of Real Property for Certain Hazards; W.Va. Code §55-7-28, (x) together with
all other Statutes governing Hazardous Substances in West Virginia and all applicable rules, regulations and requirement of the
West Virginia Code relating to each such statutory authority and the general authority of the West Virginia Department of Environmental
Protection, and all other State, county, municipal, local or other laws, ordinances, and regulations which may relate or deal with
protection of human health or the environment in the State of West Virginia, relating to Hazardous Substances or relating to liability
for or cause of other actual or threatened danger to human health or the environment, and the amendments, regulations, orders,
decrees, permits, licenses, guidance documents, provisions in an deeds in the chain of title affecting the Properties or any other
such regulations and statutes as hereafter promulgated and applicable to Hazardous Substances as all may be amended from time to
time; and

 

    27

     

    

 

ii.                       
 Indemnitor specifically agrees that this Agreement is not subject to the provisions of the Uniform Environmental Covenants
Act, W.Va. Code §22-22B-1, et seq.

 

s.                  
With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the State
of Wisconsin:

 

i.                       
For purposes of any of the Properties in the State of Wisconsin, the term “Environmental Law” shall also
include Chapter 23, Chapter 30, Chapter 160, Chapter 168, Chapter 254 and Chapters 280 to 299 of the Wisconsin Statutes, Chapters
NR 100 to 800 of the Wisconsin Administrative Code, Chapter ATCP 93 of the Wisconsin Administrative Code, and all other state,
county, municipal, local or other law, ordinance or regulation which may relate to or deal with protection of human health or the
environment in the State of Wisconsin, relating to Hazardous Substances or relating to liability for or costs of other actual or
threatened danger to human health or the environment, and the amendments, regulations, orders, decrees, permits, licenses, guidance
documents or deeds now or hereafter promulgated thereunder, as applicable, all as amended from time to time.

 

t.                   
With respect to the foregoing provisions contained in this Agreement, the following shall apply with respect to the
State of Wyoming:

 

i.                       
For purposes of any of the Properties in the State of Wyoming, the term “Environmental Law” shall also include
Wyoming Statutes Sections 35-11-101 through 35-11-2001, and all other state, county, municipal, local or other law, ordinance or
regulation which may relate to or deal with protection of human health or the environment in the State of Wyoming, relating to
Hazardous Substances or relating to liability for or costs of other actual or threatened danger to human health or the environment,
and the amendments, regulations, orders, decrees, permits, licenses, guidance documents or deeds now or hereafter promulgated thereunder,
as applicable, all as amended from time to time. 

 

[NO FURTHER TEXT ON
THIS PAGE]

 

    28

     

    

 

IN WITNESS WHEREOF,
this Agreement has been executed by Indemnitor and is effective as of the day and year first above written.

 

	 	 BORROWER:

 

ARC
AAANGIN001, LLC

ARC
AABNLFL001, LLC

ARC
AATNTMA001, LLC 

ARC
AAWSNGA001, LLC 

ARC
ABHNDMS001, LLC 

ARC
AMWNRKY001, LLC

ARC
ARERIPA001, LLC 

ARC
ARVIRMN001, LLC 

ARC
AZCROMI001, LLC 

ARC
AZCTOLA001, LLC 

ARC
AZTMPGA001, LLC 

ARC
BFFTMFL001, LLC 

ARC
BKMST41001, LLC 

ARC
CBDTNPA001, LLC 

ARC
CBLDLPA001, LLC

ARC
CBLMAPA001, LLC 

ARC
CBPHLPA001, LLC

ARC
CBPHLPA002, LLC 

ARC
CBPHLPA003, LLC 

ARC
CBPHLPA004, LLC 

ARC
CBRBRPA001, LLC 

ARC
CBWNEPA001, LLC 

ARC
CHLKJTX001, LLC 

ARC
CHVCTTX001, LLC 

ARC
CKMST19001, LLC

ARC
CVANSAL001, LLC 

ARC
CVHYKMA001, LLC, each a Delaware limited liability company

 

	 	By:	/s/Michael
    Anderson
	 	 	Name:	Michael Anderson
	 	 	Title:	Authorized Signatory

 

    

     

    

 

	 	 ARC DGATHMI001, LLC

ARC DGBGLLA001, LLC

ARC DGBKHMS001, LLC

ARC DGBNBGA001, LLC

ARC DGCHEOK001, LLC

ARC DGCMBMS001, LLC

ARC DGDNDLA001, LLC

ARC DGDVLLA001, LLC

ARC DGFHLLA001, LLC

ARC DGFLRMI001, LLC

ARC DGFRTMS001, LLC

ARC DGFTSAR001, LLC

ARC DGGNWLA001, LLC

ARC DGGSBVA001, LLC

ARC DGGVLMS002, LLC

ARC DGHBKLA001, LLC

ARC DGHDNMI001, LLC

ARC DGHTGWV001, LLC

ARC DGHTSAR001, LLC

ARC DGLAFTN001, LLC

ARC DGLCRMN002, LLC

ARC DGMBLAR001, LLC

ARC DGMKNMI001, LLC

ARC DGMRALA001, LLC

ARC DGMSNTX002, LLC

ARC DGNTALA001, LLC

ARC DGRLFMS001, LLC

ARC DGRSEMI001, LLC

ARC DGRYLAR001, LLC

ARC DGSRBMO001, LLC

ARC DGSTNVA001, LLC

ARC DGSVNMO001, LLC

ARC DGTLSLA001, LLC

ARC DGVDRTX001, LLC

ARC DGVNLTN001, LLC

ARC DGWPTMS001, LLC

ARC DGWRNIN001, LLC

ARC DGWSNNY001, LLC, each a Delaware limited
liability company

 

	 	By:	/s/Michael
    Anderson
	 	 	Name:	Michael Anderson
	 	 	Title:	Authorized Signatory

 

    

     

    

 

	 	 ARC FDBRNLA001, LLC

ARC FDBTLKY001, LLC

ARC FDCHLID001, LLC

ARC FDCRLMO001, LLC

ARC FDDNVAR001, LLC

ARC FDDXRNM001, LLC

ARC FDFNTPA001, LLC

ARC FDHCRTX001, LLC

ARC FDKRMCO001, LLC

ARC FDOCYLA001, LLC

ARC FDPLSTX001, LLC

ARC FDWLDCO001, LLC

ARC FEBSMND001, LLC

ARC FECNBIA001, LLC

ARC FEEGLWI001, LLC

ARC FEGRFND001, LLC

ARC FELELMS001, LLC

ARC FESOUIA001, LLC

ARC FEWAUWI001, LLC

ARC FEWTNSD001, LLC

ARC FLCLTNC001, LLC

ARC FMMTCNJ001, LLC

ARC FMMTVAL001, LLC

ARC FMSNHPA001, LLC

ARC HR5BEIL001, LLC

ARC HR5BIAL001, LLC

ARC HR5BPMN001, LLC

ARC HR5CURI001, LLC

ARC HR5CVGA001, LLC

ARC HR5DOGA001, LLC

ARC HR5GAGA001, LLC

ARC HR5GASC001, LLC

ARC HR5HASC001, LLC

ARC HR5MSSE001, LLC 

ARC HR5PEGA001, LLC

ARC HR5PISC001, LLC

ARC HR5SINJ001, LLC

ARC HR5SOCT001, LLC

ARC HR5VAGA001, LLC

ARC HR5ZUMN001, LLC, each a Delaware limited
liability company

  

	 	By:	/s/Michael
    Anderson
	 	 	Name:	Michael Anderson
	 	 	Title:	Authorized Signatory

 

    

     

    

 

	 	 ARC LWAKNSC001, LLC

ARC LWFYTNC001, LLC

ARC LWMCNGA001, LLC

ARC LWNBNNC001, LLC

ARC LWRMTNC001, LLC

ARC MFKXVTN002, LLC

ARC ORMNTWI001, LLC 

ARC TKLWSFL001, LLC 

ARC TPEGPTX001, LLC

ARC TSHRLKY001, LLC 

ARC TSHTNMI001, LLC 

ARC TSVRNCT001, LLC 

ARC WGBEATX001, LLC

ARC WGGLTWY001, LLC

ARC WGLNSMI001, LLC

ARC WGOKCOK001, LLC

ARC WGTKRGA001, LLC

ARG AA12PCK001, LLC

ARG AA14PCK001, LLC

ARG CCFAYNC001, LLC

ARG CCLTZFL001, LLC

ARG CCNLVTX001, LLC

ARG CCPBLCO01, LLC

ARG CHDUBGA001, LLC 

ARG DDEPOTX001, LLC 

ARG DGBRWKY001, LLC

ARG DGCLKIA001, LLC

ARG DGCSTKY001, LLC

ARG DGCTSMI001, LLC

ARG DGELKKY001, LLC

ARG DGFLSKY001, LLC

ARG DGLCNMI001, LLC

ARG DGSDLKY001, LLC

ARG DI51PCK001, LLC

ARG DNMGCIN001, LLC, each a Delaware limited
liability company

 

	 	By:	/s/Michael
    Anderson
	 	 	Name:	Michael Anderson
	 	 	Title:	Authorized Signatory

 

    

     

    

 

	 	 ARG FMATHTX001, LLC

ARG FMBKHMS001, LLC 

ARG FMCHIIL001, LLC

ARG FMCTVMS001, LLC 

ARG FMIDBOK001, LLC 

ARG FMTYLTX001, LLC 

ARG IM12PKSLB001, LLC 

ARG ME19PCK001, LLC 

ARG MESMOAR001, LLC 

ARG PH14SLB001, LLC

ARG ATCHTTN001, LLC

ARG 1CBHGNJ001, LLC

ARG OCPOOL2001, LLC

ARG OCPOOL4001, LLC

ARG WLGREFI001, LLC, each a Delaware limited
liability company

 

	 	By:	/s/Michael
    Anderson
	 	 	Name:	Michael Anderson
	 	 	Title:	Authorized Signatory

 

    

     

    

 

 

	 	PRINCIPAL:
	 	 
	 	AMERICAN
    FINANCE OPERATING 

    PARTNERSHIP, L.P., a Delaware limited partnership
	 	 
	 	By: 
    American Finance Trust, Inc., a Maryland corporation, its General Partner
	 	 
	 	By:  	/s/Michael Anderson
	 	 	Name: Michael Anderson
	 	 	Title: Authorized Signatory

 

[Signature
Page to Environmental Indemnity Agreement]

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