Document:

Exhibit 10.3

 

 

 

 

Prepared by and return to:

Robert
W. Reardon

Morris,
Manning & Martin, LLP

1600
Atlanta Financial Center

3343
Peachtree Road

Atlanta,
GA 30326

 

Deed
to Secure Debt,

Security
Agreement AND FIXTURE FILING

 

 

STATE
OF GEORGIA

 

COUNTY
OF FULTON

 

This
Deed to Secure Debt, Security Agreement AND FIXTURE FILING (“Deed”), made and entered into as of the
13th day of January, 2015, by and between NORTHRIDGE
PARKWAY, LLC, a Georgia limited liability company (“Grantor”), having a business address at 375 Northridge
Road, Suite 330, Atlanta, GA 30350, and PAUL J. A. LEX VAN HESSEN,
(together with his successors and assigns, “Grantee”), having an address c/o Hualalai Resort, P.O. Box 1596, Kailua-Kona
Hawaii 96745.

 

W I T N E
S S E T H :

 

THAT, for and in consideration
of the sum of Ten and No/100 Dollars ($10.00) and other valuable consideration, the receipt and sufficiency whereof are hereby
acknowledged, and in order to secure the indebtedness and other obligations hereinafter set forth, Grantor has granted, bargained,
sold and conveyed, and does hereby grant, bargain, sell and convey, unto Grantee the following property (collectively, the “Premises”),
to-wit:

 

a.                  
All that certain tract or parcel of land (the “Land”) lying and being in Fulton 
County, Georgia and being more particularly described in Exhibit “A” attached hereto and incorporated
herein by this reference; and

 

    	 

    	 

    

b.             All buildings, structures and other improvements of every kind and nature whatsoever now or hereafter situated on the Land; and
all machinery, equipment, fixtures, appliances and building, construction, development and landscaping supplies and materials
now or hereafter placed on or in the Land; and all of the things addressed in this paragraph (b), whether generally or specifically,
shall be deemed to be fixtures and accessions to the freehold and a part of the Land as between the parties hereto and all persons
claiming, by, through or under either of them; and

 

c.                  
All and singular the easements, rights-of-way, strips and gores of land, streets, ways, alleys, passages, sewer rights,
waters, water courses, water rights and powers, estates, rights, titles, interests, minerals, royalties, privileges, liberties,
tenements, hereditaments and appurtenances whatsoever, in any way now or hereafter belonging, relating or appertaining to the Land
or the improvements now or hereafter located thereon, or any part thereof, whether now owned or hereafter acquired by Grantor,
and the reversion or reversions, remainder and remainders, rents, issues and profits thereof; and all right to receive excess payments
in any tax sale of the Land and the improvements now or hereafter located thereon, or any part thereof; and all the estate, right,
title, interest, claim and demand whatsoever of Grantor of, in and to the same; and

 

d.                 
Any and all rents which are now due or may hereafter become due by reason of the renting, leasing and bailment of the Land
or the improvements now or hereafter located thereon, or any part thereof; and

 

e.                  
All right, title and interest of Grantor in, to and under all franchise agreements,
management contracts, service contracts, utility contracts, sewer capacity agreements, leases of equipment, documents, agreements
and approvals relating to the construction, operation and use of any improvements on the Land (including any and all construction
contracts, architectural contracts, engineering contracts, designs, plans, specifications, drawings, surveys, tests, reports, bonds
and zoning and other governmental approvals, variances and consents) and all other contracts, licenses and permits now or hereafter
affecting the Land or any part thereof and all guaranties and warranties with respect to any of the foregoing;

f.                  
Any and all awards or payments, including interest thereon, and the right to receive the same, as a result of (i) the exercise
of the right of eminent domain, (ii) the alteration of the grade of any street, or (iii) any other injury to the taking of, or
decrease in the value of, the Land or the improvements now or hereafter located thereon;

 

TO HAVE AND TO HOLD all
the Premises to the use, benefit and behoof of the Grantee, its successors and assigns, in FEE SIMPLE forever. Grantor warrants
that Grantor has good title to the Premises, and is lawfully seized and possessed of the Premises and every part thereof, and has
the right to convey same; that the Premises are unencumbered; and the Grantor will forever warrant and defend the title to the
Premises unto Grantee against the claims of all persons whomsoever.

 

This instrument is a deed
and security agreement passing legal title to the Premises to Grantee pursuant to the laws of the State of Georgia governing loan
or security deeds and security agreements, and is not a mortgage; and is made and intended to secure the following described indebtedness,
terms, provisions and conditions herein described and set forth, in such order or priority as Grantee may elect (all of which present
and future indebtedness are hereinafter collectively referred to as the “Secured Indebtedness”):

 

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a.                  
Payment of the debt evidenced by that certain Promissory Note (herein called the “Note”), dated January 13, 2015,
made by Grantor payable to the order of Grantee in the original principal face amount of TWO MILLION
and No/100 Dollars ($2,000,000.00), with the final payment being due on or before July 13, 2015; together with any and all
renewals and/or extensions or renewals of the indebtedness evidenced by the Note together with the performance and discharge of
each and every obligation of Grantor set forth in the Note.

 

b.                 
Payment of all other sums, with interest thereon, becoming due or payable to Grantee under the provisions hereof or the
provisions of any other instrument executed by Grantor for the purpose of further securing, or otherwise executed in connection
with, the indebtedness represented by the Note;

 

c.                  
Due, prompt and complete observance and performance of each and every obligation, covenant and agreement of Grantor contained
herein, in that certain Loan Agreement of even date herewith by and between Grantor and Grantee (the “Loan Agreement”),
or in any other instrument executed by Grantor for the purpose of further securing, or otherwise executed in connection with, the
indebtedness represented by the Note;

 

d.                 
Such additional sums with interest thereon as may be hereafter borrowed from Grantee, its successors or assigns, by the
then record owner or owners of the Premises when evidenced by another Promissory Note or notes, which are by the terms thereof
secured by this Deed; and

 

e.                  
Any and all other indebtedness, obligations and liabilities of any kind, of Grantor to Grantee, now or hereafter existing,
absolute or contingent, joint and/or several, due or not due, secured or unsecured, arising by operation of law or otherwise or
direct or indirect including indebtedness, obligations and liabilities to Grantee of Grantor as a member of any partnership, syndicate
or association or other group and whether incurred by Grantor as principal, surety, endorser, guarantor, accommodation party or
otherwise, and any obligations which give rise to an equitable remedy for breach of performance if such breach gives rise to an
obligation by Grantor to pay Grantee.

 

Should the Secured Indebtedness
be paid according to the tenor and effect thereof when the same shall become due and payable, and should Grantor perform all covenants
herein contained in a timely manner, then this Deed shall be cancelled and surrendered.

 

Grantor covenants and agrees
as follows:

 

Article
I

 

1.1             
Payment of Secured Indebtedness. Grantor shall pay to Grantee the Secured Indebtedness with interest thereon as and
when the same becomes due and payable in accordance with the terms thereof.

 

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1.2             
Payment of Taxes, Etc. Grantor shall pay, when due and payable, (a) all taxes, assessments, general or special, and
other charges levied on, or assessed, placed or made against the Premises, this Deed, the Note or the Secured Indebtedness or any
interest of the Grantee in the Premises or the obligations secured hereby; and (b) premiums on policies of fire and other hazard
insurance covering the Premises, as required in Section 1.3 herein. If Grantor fails to promptly make any such payment, then Grantee
may, at its option, make such payment, without notice, and the amount so advanced shall become part of the Secured Indebtedness
and shall bear interest from the date advanced at the rate of interest from time to time in effect in the Note for principal. If,
in the opinion of Grantee, any state, federal, municipal or other governmental law, order, rule or regulation prohibits Grantor
from paying any such tax, assessment or other charge or would penalize Grantee if Grantor were to make such payment, or if, in
the opinion of Grantee, the making of such payment might result in the imposition of interest beyond the maximum amount permitted
by applicable law, then the Secured Indebtedness shall, at the option of Grantee, become immediately due and payable.

 

1.3             
Insurance. (a) Grantor shall maintain public liability insurance with coverages and amounts acceptable to Grantee.
Grantor shall keep improvements (if any) on the Premises insured for the benefit of Grantee against loss or damage by fire, lightning,
windstorm, hail, collapse, explosion, malicious mischief, riot, riot attending a strike, civil commotion, aircraft, vehicles and
smoke and such other hazards as Grantee may from time to time require, all in amounts approved by Grantee not exceeding 100% of
full insurable value. All insurance herein provided for shall be in form and with companies approved by Grantee; and, regardless
of the types or amounts of insurance required and approved by Grantee, Grantor shall assign and deliver to Grantee, as collateral
and further security for the payment of the Secured Indebtedness, all policies of insurance which insure against any loss or damage
to the Premises, with loss payable to Grantee, without contribution, pursuant to the New York Standard or other mortgagee clause
satisfactory to Grantee.  If Grantee, by reason of such insurance, receives any money for loss or damage, such amount shall,
at the option of Grantee, either be disbursed for the repair and restoration of the Premises in accordance with and subject to
the conditions for disbursement that Grantee would customarily impose as a prudent lender in a construction or development loan,
or retained by Grantee and applied toward payment of the Secured Indebtedness. Grantee shall in no event be obligated to see to
the proper application of any amount paid over to Grantor.

 

(b)      Not less than twenty
(20) days prior to the expiration date of each policy of insurance required of Grantor pursuant to this paragraph 1.3, and of each
policy of insurance held as additional collateral to secure the Secured Indebtedness, Grantor shall deliver to Grantee a renewal
policy or policies marked “premium paid” or accompanied by other evidence of payment satisfactory to Grantee.

 

(c)      In the event of a
foreclosure of this Deed, the purchaser of the Premises shall succeed to all the rights of Grantor in and to all policies of insurance
required by this paragraph 1.3 and all policies of insurance assigned or delivered to Grantee regardless of whether or not required
by this 1.3, including without limitation the right to unearned premiums.

 

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1.4             
Condemnation. Notwithstanding any taking of, injury to, or decrease in the value of, any portion of the Premises
by or as the result of eminent domain, the alteration of the grade of any street, or any other public or quasi-public action, Grantor
shall continue to pay principal and interest on the Secured Indebtedness, and any reduction in the Secured Indebtedness resulting
from the application by Grantee of any award or payment for such taking, alteration, injury or decrease in value of the Premises
shall be deemed to take effect only on the date of such receipt. Any such award or payment may, at the option of Grantee, be retained
and applied by Grantee toward payment of the Secured Indebtedness, or be paid over, wholly or in part, to Grantor for the purpose
of altering, restoring or rebuilding any part of the Premises which may have been altered, damaged or destroyed as a result of
any such taking, alteration of grade, or other injury to the Premises, or for any other purpose or object satisfactory to Grantee,
but Grantee shall not be obligated to see to the application of any amount paid over to Grantor. If, prior to the receipt by Grantee
of such award or payment, the Premises shall have been sold on foreclosure of this Deed, Grantee shall have the right to receive
said award or payment to the extent of any deficiency found to be due upon such sale, whether or not a deficiency judgment on this
Deed shall have been sought or recovered or denied, together with legal interest thereon and the costs (including reasonable attorney’s
fees) incurred by Grantee in the obtaining and collection of such award or payment.

 

1.5             
Care of Premises. Grantor shall maintain the Premises in good condition and repair, shall not commit or suffer any
waste to the Premises, and shall comply with, or cause to be complied with, all restrictive covenants, statutes, ordinances and
requirements of any governmental authority relating to the Premises and the use thereof or any part thereof.  Grantor shall
promptly repair, restore, replace or rebuild any part of the Premises, now or hereafter encumbered by this Deed, which may be affected
by any proceeding of the character referred to in paragraph 1.4 hereof.  No part of the Premises, including, but not limited
to, any building, structure, parking lot, driveway, landscape scheme, timber or other ground improvement, equipment or other property,
now or hereafter conveyed as security by or pursuant to this Deed, shall be removed, demolished or materially altered without the
prior written consent of Grantee.  Grantor shall complete, within a reasonable time, and pay for any building, structure or
other improvement at any time in the process of construction on the property herein conveyed.  Grantor shall not initiate,
join in or consent to any change in any private restrictive covenant, zoning ordinance or other public or private restrictions
limiting or defining the uses which may be made of the Premises or any part thereof.  Grantee and any persons authorized by
Grantee shall have the right to enter and inspect the Premises at all reasonable times and access thereto shall be permitted for
that purpose.

 

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1.6             
Security Agreement. (a) This Deed shall also constitute a security agreement within the meaning of the Uniform Commercial
Code of the State of Georgia (the “Code”) with respect to all the following: (i) all sums of Grantor on deposit with
Grantee from time to time (the “Deposits”); (ii) all income received from the sale of all or any portion of the
Land (the “Sales Income”); (iii) all fixtures and personal property included (whether generally or specifically)
in the definition of “Premises” set forth herein and now or hereafter acquired by Grantor, and all replacements, substitutions
and additions thereto (the “Fixtures and Personalty”); (iv) all franchise agreements,
management contracts, service contracts, utility contracts, sewer capacity agreements, leases of equipment, documents, agreements
and approvals relating to the construction, operation and use of any improvements on the Land (including any and all construction
contracts, architectural contracts, engineering contracts, designs, plans, specifications, drawings, surveys, tests, reports, bonds
and zoning and other governmental approvals, variances and consents) and all other contracts, licenses and permits now or hereafter
affecting the Land or any part thereof and all guaranties and warranties with respect to any of the foregoing (the “Improvement
Documents”); and (v) all proceeds (including cash and insurance proceeds and proceeds of proceeds) of all of the foregoing
(all such Deposits, Sales Income, Fixtures and Personalty, Improvement Documents and proceeds are collectively referred to herein
as the “Collateral”). Grantor hereby grants to Grantee a security interest in and to the Collateral and every component
thereof, and does hereby transfer and assign to Grantee all of Grantor’s right, title and interest in and to the Collateral and
every component thereof, to secure the payment of the Secured Indebtedness as and when the same becomes due and payable. With respect
to the Fixtures and Personalty, while an Event of Default is continuing, Grantee shall also have the right (i) to proceed
against the Fixtures and Personalty in accordance with Grantee’s rights and remedies with respect to the real property, in which
event the provisions of the Code shall not govern the default and Grantee’s remedies, or (ii) to proceed against the Fixtures
and Personalty separately from the real property. When proceeding against any of the Collateral under the provisions of the Code,
ten (10) days’ notice of Grantee’s determination to proceed against such Collateral shall be deemed reasonable notice. The reasonable
expenses of retaking, holding, preparing for sale and selling the Collateral shall be deemed to include (without limitation) reasonable
attorneys’ fees. Grantor agrees not to remove any of the Fixtures and Personalty from the Premises without the prior written consent
of Grantee; provided, however, that Grantor may sell or otherwise dispose of obsolete, inadequate, useless or unserviceable items
of the Fixtures and Personalty in the ordinary course of its management and operation of the Premises without Grantee’s consent.
At the request of Grantee from time to time, Grantor will provide Grantee with an inventory or schedule of all of the Collateral.

 

(b)      Grantor further covenants
and agrees that all of the Fixtures and Personalty are and shall be owned by Grantor and, except as disclosed to and approved by
Grantee in writing, shall not be the subject matter of any lease or other instrument, agreement or transaction whereby the ownership
or beneficial interest thereof or therein shall be held by any person or entity other than Grantor, nor shall Grantor create or
cause to be created any security interest covering any such property other than the security interest created herein in favor of
Grantee.

 

(c)      This Deed shall constitute
a “fixture filing” within the meaning of Code Section 11-9-502(c). The following information is included for purposes
of satisfying the provisions of such Section:

 

	 	Secured Party:	Paul J. A. Lex van Hessen
	 	 	c/o Hualalai Resort
	 	 	P.O. Box 1596
	 	 	Kailua-Kona Hawaii 96745
	 	 	 
	 	 	 
	 	Debtor:	Northridge Parkway, LLC
	 	 	375 Northridge Road
	 	 	Suite 330
	 	 	Atlanta, GA  30350
	 	 	 
	 	Property:	See Exhibit A attached hereto.

 

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1.7             
Further Assurances. Grantor shall execute and deliver (and pay the costs of preparation and recording thereof) to
Grantee and to any subsequent holder from time to time, upon demand, any further instrument or instruments, including, but not
limited to, security deeds, security agreements, financing statements, assignments and renewal and substitution notes, so as to
reaffirm, to correct and to perfect the evidence of the Secured Indebtedness and the legal security title of Grantee to all or
any part conveyed, later substituted for, or acquired subsequent to the date of this Deed and extensions or modifications thereof.
Grantor, upon request, made either personally or by mail, shall certify by a writing, duly acknowledged, to Grantee or to any proposed
assignee of this Deed, the amount of principal and interest then owing on the Secured Indebtedness and whether or not any offsets
or defenses exist against the Secured Indebtedness, within five (5) business days in case the request is made personally, or within
ten (10) days after the mailing of such request in case the request is made by mail.

 

1.8             
Expenses. Upon demand Grantor shall pay, or reimburse Grantee for the payment of, all actual attorneys’ fees, costs
and expenses incurred by Grantee in any suit, action, legal proceeding or dispute of any kind in which Grantee is made a party
or appears as party plaintiff or defendant, affecting the Secured Indebtedness, this Deed or the rights and interest created herein,
or the Premises, including without limitation the exercise of the power of sale contained in this Deed, any condemnation action
involving the Premises or any action to protect the security hereof; and any such amounts paid by Grantee shall be added to the
indebtedness secured by this Deed.

 

1.9             
Subrogation. Grantee shall be subrogated to the claims and liens of all parties whose claims or liens are discharged
or paid with the proceeds of the Secured Indebtedness or otherwise discharged or paid by Grantee. Grantor waives all rights of
subrogation until all indebtedness and obligations secured hereby have been paid in full.

 

1.10         
Transfer of the Premises. Grantor shall not sell, transfer, lease, let, mortgage, pledge, encumber, create a security
interest in, or otherwise hypothecate all or any part of the Premises without Grantor’s prior written consent.

 

1.11         
Limit of Validity. If from any circumstance whatsoever the fulfillment of any provision of this Deed, the Note or
the Loan Agreement, at the time that the performance of such provision is due, involves transcending the limit of validity presently
prescribed by any applicable usury statute or any other applicable law, with regard to obligations of like character and amount,
then ipso facto the obligation to be fulfilled shall be reduced to the limit of such validity, so that in no event shall
any exaction be possible under this Deed, the Note or the Loan Agreement that is in excess of the applicable limit of such validity,
but such obligation shall be fulfilled to the limit of such validity. The provisions of this paragraph 1.11 shall control every
other provision of this Deed, the Note and the Loan Agreement.

 

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1.12         
Status of Title. Grantor represents and warrants that it is the lawful owner of the Premises in fee simple, subject
to no liens or encumbrances, except for covenants, conditions, restrictions, easements and rights-of-way of record, if any. Grantor
represents and warrants that it has full right, power and authority to convey and mortgage the Premises and to execute this Deed.
Grantor also agrees to protect, preserve and defend its interest in the Premises and title thereto, including full performance
of any prior claim or lien; to appear and defend this Deed in any action or proceeding affecting or purporting to affect the Premises,
the lien of this Deed thereon or any of the rights of Grantee hereunder, and to pay all costs and expenses incurred by Grantee
in or in connection with any such action or proceeding, including reasonable attorneys’ fees, whether any such action or proceeding
progresses to judgment and whether brought by or against Grantee. Grantee shall be reimbursed for any such costs and expenses in
accordance with the provisions of paragraph 1.8 hereof. Grantee may, but shall not be under any obligation to, appear or intervene
in any such action or proceeding and retain counsel therein and defend the same or otherwise take such action therein as it may
deem advisable or may settle or compromise the same and, for any of such purposes, may expend and advance such sum of money as
it may deem necessary, and Grantee shall be reimbursed therefore in accordance with the provisions of Paragraph 1.8 hereof.

 

1.13         
Representations and Warranties of Grantor. Grantor hereby represents and warrants as follows:

 

a.                  
That this Deed, the Note and all other instruments executed and delivered to Grantee concurrently herewith were executed
in accordance with the requirements of law and are valid, binding and enforceable in accordance with their terms.

 

b.                 
That the execution of this Deed, the Note and any other instrument executed and delivered to Grantee in connection with
this transaction, and the full and complete performance of the provisions thereof, will not result in any breach of, or constitute
a default under, any indenture, mortgage, bank loan or credit agreement or other instrument to which Grantor is a party or by which
Grantor is bound, and will not result in the creation of any lien, charge or encumbrance (other than those contained herein or
in any instrument delivered to Grantee in connection with this transaction) upon any Premises or assets of Grantor.

 

c.                  
That as of the date of execution of this Deed it is the sole owner of the Premises.

 

d.                 
The improvements on the Premises, existing and proposed, and their intended use will, when completed, comply fully with
all applicable environmental, air quality, zoning, planning, building, subdivision and other governmental laws and requirements.
Grantor specifically warrants that the existing improvements on the Premises comply with the applicable zoning ordinance.

 

e.                  
The Premises is composed of one or more whole tax parcels with a separate tax assessment, independent of any land or improvements
not encumbered by this Deed.

 

f.                  
There is no litigation pending or, to the best of Grantor’s knowledge, threatened against the Premises. There is no litigation
pending or, to the best of Grantor’s knowledge, threatened against Grantor, which might, so far as Grantor can now foresee, have
a material adverse effect on Grantor’s ability to repay the Note or to perform the provisions of this Deed or of any other document
evidencing, securing or executed in connection with this transaction. Grantor has disclosed all litigation pending and threatened
against Grantor to Grantee in writing, and will disclose all future such litigation to Grantee in writing within thirty (30) days
of its receipt of notice thereof.

 

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g.                 
The Premises complies in all material respects with applicable subdivision laws, ordinances, regulations, rules and other
requirements.

 

h.                 
Grantor is not in default with respect to any existing indebtedness or obligation.

 

i.                   
Grantor has the power and authority to enter into and perform all terms and conditions of this Deed, the Note, and all other
documents evidencing, securing or executed in connection with this transaction, and to incur the obligations herein and therein
provided for.

 

j.                   
Grantor has not made any agreement or taken any action which may cause anyone to become entitled to a commission or finder’s
fee as a result of the making of any loan to Grantor by Grantee.

k.                 
As of the date of this Deed, no improvements have been constructed on the Premises and no parties other than Grantor are
occupying or have any right to occupy all or any portion of the Premises.

 

1.14         
Extensions and Modifications. From time to time, without affecting the obligation of Grantor or Grantor’s successors
or assigns to pay the sums secured by this Deed and to observe the covenants of Grantor contained herein, without affecting the
guaranty of any person, corporation, partnership or other entity for payment of indebtedness secured hereby, and without affecting
the lien or priority of lien hereof on the Premises, Grantee may, at Grantee’s option, without giving notice to or obtaining the
consent of Grantor, Grantor’s successors or assigns or of any other lienholders or guarantors, and without liability on Grantee’s
part, extend the time for payment of said indebtedness or any part thereof, reduce the payments thereon, release anyone liable
on any of said indebtedness, accept a renewal Note or notes therefor, modify the terms and time of payment of said indebtedness,
release from this Deed any part of the Premises, take or release other or additional security, reconvey any part of the Premises,
consent to the granting of any easement or dedication, join in any extension or subordination agreement and agree in writing with
any person obligated to pay the same to modify the rate of interest or period of amortization of the indebtedness secured hereby
or change the amount of the installments payable thereon. Grantor shall pay Grantee a reasonable service charge, together with
such title insurance premiums and attorneys’ fees as may be incurred at Grantee’s option, for any such action if taken at Grantor’s
request.

 

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Article
II

 

2.1             
Events of Default. Each of the following events shall constitute an “Event of Default” under this Deed:

 

a.                  
should Grantor fail to pay the Secured Indebtedness or any part thereof when due;

 

b.                 
should any warranty or representation of Grantor herein contained prove untrue or misleading in any material respect;

 

c.                  
should the Premises be subject to actual or threatened waste, or any part thereof be removed, demolished or materially altered
so that the value of the Premises be diminished except as provided for in 1.4;

 

d.                 
should any federal tax lien or claim of lien for labor or material be filed of record against Grantor or against the Premises
and not be removed by payment or bond within thirty (30) days from date of recording;

 

e.                  
should a third party assert the priority of a lien, security interest, or security deed over that of this Deed in any legal
proceeding;

 

f.                  
Should Grantor or any guarantor fail to keep, observe, perform, carry out and execute in every particular the covenants,
agreements, obligations and conditions set out in, or should a breach, default event of default or failure of condition or performance
(however denominated), occur under, this Deed, the Note, the Loan Agreement, or any other document or instrument securing or given
with respect to the Secured Indebtedness (this Deed, the Note, the Loan Agreement and all such other documents and instruments
are collectively referred to herein as the “Loan Documents”);

 

g.                 
should there occur any sale, transfer, leasing, or encumbering of all or any portion of the Premises without the prior written
consent of Grantee, which consent may be withheld or delayed in the sole discretion of Grantee;

 

h.                 
should there occur any change in the legal or equitable ownership of Grantor or in the legal or equitable ownership of,
or the management of, the Premises without Grantee’s prior written consent;

 

i.                   
if the holder of any lien or security interest on the Premises (without hereby implying
Grantee’s consent to the existence, placing, creating or permitting of any such lien or security interest) institutes foreclosure
or other proceedings for the enforcement of its remedies thereunder.

 

2.2             
Enforcement, etc. If an Event of Default occurs and is continuing, Grantee may do any one or more of the following:

 

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a.                  
enter upon and take possession of the Premises, with or without the appointment of a receiver or an application therefor,
employ a managing agent of the Premises and let the same, either in its own name, or in the name of Grantor, and receive the rents,
incomes, issues and profits of the Premises and apply the same, after payment of all necessary charges and expenses, on account
of the Secured Indebtedness; and Grantor will transfer and assign to Grantee, in form satisfactory to Grantee, Grantor’s interest
as lessor in any lease now or hereafter affecting the whole or any part of the Premises;

 

b.                 
pay any sums in any form or manner deemed expedient by Grantee to protect the security of this instrument or to cure any
Event of Default other than payment of interest or principal on the Secured Indebtedness; make any payment hereby authorized to
be made according to any bill, statement or estimate furnished or procured from the appropriate public officer or the party claiming
payment without inquiry into the accuracy or validity thereof, and the receipt of any such public officer or party in the hands
of Grantee shall be conclusive evidence of the validity and amount of items so paid, in which event the amounts so paid, with interest
thereon from the date of such payment at the default rate of interest specified in the Note shall be added to and become a part
of the Secured Indebtedness and be immediately due and payable to Grantee; and Grantee shall be subrogated to any encumbrance,
lien, claim or demand, and to all the rights and securities for the payment thereof, paid or discharged with the principal sum
secured hereby or by Grantee under the provisions hereof, and any such subrogation rights shall be additional and cumulative security
to this instrument;

 

c.                  
without notice (except as provided in the Loan Agreement), demand, presentment, notice
of nonpayment or nonperformance, protest, notice of protest, notice of intent to accelerate, notice of acceleration, or any other
notice or any other action, all of which are hereby waived by Grantor and all other parties obligated in any manner whatsoever
on the Secured Indebtedness, declare the entire unpaid balance of the Secured Indebtedness immediately due and payable; and upon
such declaration, the entire unpaid balance of the Secured Indebtedness shall be immediately due and payable. Notwithstanding anything
to the contrary contained in or inferable from any provision hereof, upon the occurrence of an Event of Default as defined in subparagraph
2.1(l) herein, the principal balance, the unpaid accrued interest under the Note and any other accrued but unpaid portion of the
Secured Indebtedness shall be automatically and immediately due and payable in full without the necessity of any action on the
part of the Grantee.

 

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d.                 
declare the entire Secured Indebtedness immediately due, payable and collectible, regardless of maturity, and, in that event,
the entire Secured Indebtedness shall become immediately due, payable and collectible; and thereupon, Grantee may sell and dispose
of the Premises at public auction, at the usual place for conducting sales at the courthouse in the county where the Premises or
any part thereof may be located, to the highest bidder for cash, first advertising the time, terms and place of such sale by publishing
a notice thereof once a week for four (4) consecutive weeks (without regard to the actual number of days) in a newspaper in which
sheriff’s advertisements are published in said county, all other notice being hereby waived by Grantor; and Grantee may thereupon
execute and deliver to the purchaser at said sale a sufficient conveyance of the Premises in fee simple, which conveyance may contain
recitals as to the happening of the default upon which the execution of the power of sale, herein granted, depends, and said recitals
shall be presumptive evidence that all preliminary acts prerequisite to said sale and deed were in all things duly complied with;
and Grantee, its agents, representatives, successors or assigns, may bid and purchase at such sale and may apply such bid as a
credit against the Secured Indebtedness; and Grantor hereby constitutes and appoints Grantee or its assigns as agent and attorney-in-fact
to make such recitals, sale and conveyance, and all of the acts of such attorney-in-fact are hereby ratified, and Grantor agrees
that such recitals shall be binding and conclusive upon Grantor and that the conveyance to be made by Grantee, or its assigns (and
in the event of a deed in lieu of foreclosure, then as to such conveyance) shall be effectual to bar all right, title and interest,
equity of redemption, including all statutory redemption, homestead, dower, curtesy and all other exemptions of Grantor, or its
successors in interest, in and to said Premises; and Grantee, or its assigns, shall collect the proceeds of such sale, reserving
therefrom all unpaid Secured Indebtedness with interest then due thereon, and all amounts advanced by Grantee for taxes, assessments,
fire insurance premiums and other charges, with interest at the rate of interest specified in the Note thereon from date of payment,
together with all costs and charges for advertising, and commissions for selling the Premises, and actual attorney’s fees, and
pay over any surplus to Grantor (or in the event of a deficiency Grantor shall immediately on demand from Grantee pay over to Grantee,
or its nominee, an amount equal to such deficiency); and Grantor agrees that in case of a foreclosure sale, as herein provided,
Grantor or any person in possession under Grantor shall then become and be tenants at sufferance, and shall forthwith deliver possession
to the purchaser at such sale, or be summarily dispossessed in accordance with the provisions of law applicable to tenants at sufferance;
the power and agency hereby granted are coupled with an interest and are irrevocable by death or otherwise as long as any portion
of the Secured Indebtedness remains unpaid or any other indebtedness or obligation secured hereby remains unpaid or unperformed,
and are in addition to any and all other remedies which Grantee may have at law or in equity;

 

e.                  
Exercise any and all rights accruing to a secured party under this Deed, the Code and any other applicable law.

 

2.3             
Receiver. Grantee, in any action to foreclose this Deed, or upon any Event of Default, shall be at liberty to apply
for the appointment of a receiver of the rents and profits of the Premises without notice, and shall be entitled to the appointment
of such a receiver as a matter of right, without consideration of the value of the Premises as security for the amounts due the
Grantee, or the solvency of any person or corporation liable for the payment of such amounts.

 

2.4             
Sale in Parcels. In case of any sale under this Deed by virtue of the exercise of the power herein granted, or pursuant
to any order in any judicial proceedings or otherwise, at the election of Grantee the Premises or any part thereof may be sold
in one parcel and as an entirety, or in such parcels, manner or order as Grantee in its sole discretion may elect, and one or more
exercises of the powers herein granted shall not extinguish or exhaust the power unless the entire Premises are sold or the Secured
Indebtedness paid in full.

 

2.5             
Waiver of Homestead. Grantor hereby waives and renounces all right of homestead exemption in the Premises provided
by the Constitution or Laws of the United States, the State of Georgia, or any other State in the United States.

 

    	Page 12 of 19

    	 

    

2.6             
Grantee’s Right to Sue. Grantee shall have the right from time to time to sue for any sums, whether interest, principal
or any installment of either or both, taxes, penalties, or any other sums required to be paid under the terms of this Deed, as
the same become due, without regard to whether or not all of the Secured Indebtedness shall be due on demand, and without prejudice
to the right of Grantee thereafter to enforce any appropriate remedy against Grantor, including an action of foreclosure, or any
other action, for a default or defaults by Grantor existing at the time such earlier action was commenced.

 

2.7             
No Obligation to Marshal Assets. In realizing upon the security and collateral for the Secured Indebtedness during
the subsistence of an Event of Default, Grantee shall have no obligation whatsoever to marshal assets, or to realize upon all of
such security and collateral; rather, Grantee shall have the right to realize upon all or any part of such collateral from time
to time as Grantee deems appropriate.

 

2.8             
Rights Cumulative. The rights of Grantee, granted and arising under the clauses and covenants contained in this Deed
and the other Loan Documents, shall be separate, distinct and cumulative of other powers and rights herein granted and all other
rights which Grantee may have at law or in equity, and none of them shall be in exclusion of the others; and all of them are cumulative
to the remedies for collection of indebtedness, enforcement of rights under security deeds, and preservation of security as provided
at law.  No act of Grantee shall be construed as an election to proceed under any one provision herein or under the Note or
any of the other Loan Documents to the exclusion of any other provision, or an election of remedies to the bar of any other remedy
allowed at law or in equity, anything herein or otherwise to the contrary notwithstanding.

 

2.9             
Discontinuance of Proceedings. If Grantee commences the enforcement of any right, power or remedy, whether afforded
under this Deed or otherwise, and including without limitation foreclosure or entry upon the Premises, and such enforcement is
then discontinued or abandoned for any reason, or is determined adversely to Grantee, then and in every such case Grantor and Grantee
shall be restored to their former positions and rights hereunder, without waiver of any Event of Default and without novation,
and all rights, powers and remedies of Grantee shall continue as if no such enforcement had been commenced.

 

2.10         
Deficiency; Liabilities and Rights After Default. To the extent permitted by law and by the Note, Grantor shall be
and remain liable for any deficiency remaining after sale either pursuant to the Uniform Commercial Code, the power of sale created
hereby, or judicial foreclosure. After default or breach, Grantor shall pay Grantee’s reasonable attorneys’ fees actually incurred,
Grantee’s fees and its costs and expenses incurred as a result of said default or breach, and if suit is brought, all costs of
suit, all of which sums shall be secured by this Deed. Grantor’s statutory rights of reinstatement, if any, are expressly conditioned
upon Grantor’s payment of all sums required under the applicable statute and performance of all required acts.

 

a.                  
The interest of Grantee under this deed and the liability and obligation of Grantor for the payment of the Secured Indebtedness
arise from a “commercial transaction” with the meaning of O.C.G.A. Section 44-14-260(1).

 

    	Page 13 of 19

    	 

    

Article
III

 

3.1             
Successors and Assigns. This Deed shall inure to the benefit of and be binding upon Grantor and Grantee and their
respective successors and assigns. (No right in Grantor to sell, transfer or encumber the Premises may be inferred from this.)

 

3.2             
Terminology. The words “Grantor” and “Grantee” shall include the successors and assigns of the
parties hereto, and all those holding under either of them. If more than one party shall execute this Deed, the term “Grantor”
shall mean all parties signing, and each of them, and each agreement, obligation and Secured Indebtedness of Grantor shall be and
mean the several as well as joint undertaking of each of them. Pronouns used herein shall include both genders and both the singular
and the plural, and the grammatical construction of sentences shall be deemed conformed thereto. 

 

3.3             
Captions for Convenience. The captions and headings in this Deed have been provided for convenience only and shall
not limit the scope or extent of any provision hereof.

 

3.4             
Severability. If any provision of this Deed should be held by a court of competent jurisdiction to be invalid, illegal
or unenforceable, such invalidity, illegality or unenforceability shall not affect the validity, legality and enforceability of
the remaining provisions of this Deed.

 

3.5             
Applicable Law. This Deed shall be governed by and construed in accordance with the laws of the State of Georgia.

 

3.6             
Time of the Essence. Time is of the essence of this Deed and each of the other Loan Documents.

 

3.7             
Notice, Etc. Notices and other communications hereunder shall be effective if given in accordance with the provisions
of the Loan Agreement.

 

3.8             
No Implied Waiver by Grantee. No indulgence or departure at any time by the Grantee from any of the provisions hereof,
or of any obligation hereby secured, shall modify the same or relate to the future or waive future compliance therewith by the
Grantor.

 

    	Page 14 of 19

    	 

    

3.9             
WAIVER OF GRANTOR’S RIGHTS. GRANTOR EXPRESSLY: (1) ACKNOWLEDGES THE RIGHT TO ACCELERATE THE DEBT AND THE POWER
OF ATTORNEY GIVEN IN THIS DEED TO SECURE DEBT TO GRANTEE TO SELL THE PREMISES BY NON-JUDICIAL FORECLOSURE UPON DEFAULT BY GRANTOR
WITHOUT ANY JUDICIAL HEARING AND WITHOUT ANY NOTICE OTHER THAN SUCH NOTICE (IF ANY) AS IS SPECIFICALLY REQUIRED TO BE GIVEN UNDER
THE PROVISIONS OF THIS DEED TO SECURE DEBT OR OTHER LOAN DOCUMENTS; (2) WAIVES ANY AND ALL RIGHTS WHICH GRANTOR MAY HAVE UNDER
THE FIFTH AND FOURTEENTH AMENDMENTS TO THE CONSTITUTION OF THE UNITED STATES, THE VARIOUS PROVISIONS OF THE CONSTITUTIONS FOR THE
SEVERAL STATES, OR BY REASON OF ANY OTHER APPLICABLE LAW, TO NOTICE AND TO JUDICIAL HEARING PRIOR TO THE EXERCISE BY GRANTEE OF
ANY RIGHT OR REMEDY PROVIDED TO GRANTEE, EXCEPT SUCH NOTICE (IF ANY) AS IS SPECIFICALLY REQUIRED TO BE PROVIDED IN THIS DEED TO
SECURE DEBT OR OTHER LOAN DOCUMENTS; (3) ACKNOWLEDGES THAT GRANTOR HAS READ THIS DEED TO SECURE DEBT AND ANY AND ALL QUESTIONS
REGARDING THE LEGAL EFFECT OF THIS DEED TO SECURE DEBT AND ITS PROVISIONS HAVE BEEN EXPLAINED FULLY TO GRANTOR, AND GRANTOR HAS
BEEN AFFORDED AN OPPORTUNITY TO CONSULT WITH COUNSEL OF GRANTOR’S CHOICE PRIOR TO EXECUTING THIS DEED TO SECURE DEBT; (4) ACKNOWLEDGES
THAT ALL WAIVERS OF THE AFORESAID RIGHTS OF GRANTOR HAVE BEEN MADE KNOWINGLY, INTENTIONALLY AND WILLINGLY BY GRANTOR; AND (5) AGREES
THAT GRANTOR’S RIGHT TO NOTICE SHALL BE LIMITED TO THOSE RIGHTS TO NOTICE PROVIDED BY THIS DEED TO SECURE DEBT AND OTHER LOAN DOCUMENTS.

 

3.10         
Usury Disclaimer. Any provision contained herein, in the Loan Agreement or in the Note or in any other instrument
now or hereafter evidencing, securing or otherwise relating to any secured indebtedness to the contrary notwithstanding, neither
Grantee nor the holder of any other secured indebtedness shall be entitled to receive or collect, nor shall Grantor be obligated
to pay, interest on any of the secured indebtedness in excess of the maximum rate of interest at the particular time in question,
if any, which, under applicable law, Grantee is then permitted to charge Grantor on the Note (herein the “Maximum Rate”)
provided that the Maximum Rate shall be automatically increased or decreased as the case may be, without notice to Grantor from
time to time as of the effective time of each change in the Maximum Rate, and if any provision herein, in the Loan Agreement or
in the Note or in such other instrument shall ever be construed or held to permit the collection or to require the payment of any
amount of interest in excess of that permitted by applicable law, the provisions of this paragraph shall control and shall override
any contrary or inconsistent provision herein, in the Loan Agreement or in the Note or in such other instrument. The intention
of the parties being to conform strictly to the usury limitations under applicable law, the Note, the Loan Agreement, this Deed,
and each other instrument now or hereafter evidencing or relating to any secured indebtedness shall be held subject to reduction
to the amount allowed under said applicable law as now or hereafter construed by the courts having jurisdiction.

 

 

[Signatures begin on following
page]

    	Page 15 of 19

    	 

    

IN WITNESS WHEREOF, this Deed has been duly executed under seal by Grantor as of the day and year first above written.

 

	Signed, sealed and delivered in the presence of:	 	GRANTOR:	 
	 	 	 	 	 	 	 
	 	 	NORTHRIDGE PARKWAY, LLC, a Georgia limited liability company	 
	/s/ David M. Phillips	 	 	 	 	 	 
	Witness	 	By:  	Roberts Properties Residential, L.P., a Georgia	 
	 	 	 	limited partnership, its sole manager	 
	/s/ Sarah Roberts	 	 	 	 	 	 
	Notary Public	 	 	By:  	Roberts Realty Investors, Inc., a Georgia	 
	 	 	 	 	corporation, its sole general partner	 
	 	 	 	 	 	 	 
	(affix seal and commission expiration date)	 	 	 	By:	/s/ Anthony Shurtz	 
	Fulton County, GA	 	 	 	Name:  	Anthony Shurtz	 
	Expires:  July 27, 2018	 	 	 	Title:	CFO	 
	 	 	 	 	 	 	 
	 	 	 	 	 	[CORPORATE SEAL]	 

 

    	Page 16 of 19

    	 

    

EXHIBIT “A”

LEGAL DESCRIPTION

 

TRACT ONE:

 

All that tract of land in Land Lots 25 and
26 of the 17th District, and in Land Lots 385 and 386 of the 18th District, Fulton County, Georgia, described as follows:

 

Beginning at a point at the intersection of
the North right-of-way line of Northridge Parkway (right-of-way varies) with the West line of said Land Lot 385, said point being
the True Point of Beginning; Running THENCE along said right-of-way line of Northridge Parkway, the following courses and distances:
North 81 degrees 24 minutes 03 seconds West for a distance of 43.13 feet to a POINT; THENCE South 08 degrees 35 minutes 57 seconds
West for a distance of 3.47 feet to a POINT; THENCE North 81 degrees 24 minutes 03 seconds West for a distance of 34.91 feet to
a pk nail set; THENCE leaving said right-of-way North 09 degrees 32 minutes 31 seconds East for a distance of 33.22 feet to a pk
nail set; THENCE North 20 degrees 22 minutes 20 seconds East for a distance of 53.01 feet to a pk nail set; THENCE North 35 degrees
10 minutes 51 seconds East for a distance of 92.75 feet to a pk nail set; THENCE North 00 degrees 08 minutes 26 seconds West for
a distance of 129.97 feet to a 1/2“rebar found; THENCE North 00 degrees 04 minutes 15 seconds East for a distance of 157.44
feet to a 1/2“rebar found; THENCE North 53 degrees 35 minutes 55 seconds East for a distance of 137.24 feet to a 3/8“rebar
found; THENCE North 62 degrees 58 minutes 05 seconds East for a distance of 167.53 feet to a 1“crimp top pipe; THENCE South
71 degrees 01 minute 34 seconds East for a distance of 51.67 feet to a 1” open top pipe; THENCE South 00 degrees 04 minutes
19 seconds West for a distance of 70.28 feet to a 3/8“rebar found; THENCE South 85 degrees 55 minutes 21 seconds East for
a distance of 47.87 feet to a 1“crimp top pipe; THENCE South 85 degrees 26 minutes 22 seconds East for a distance of 49.98
feet to a 1/2“rebar found; THENCE South 85 degrees 33 minutes 17 seconds East for a distance of 149.90 feet to a 1/2“rebar
found; THENCE South 85 degrees 01 minute 18 seconds East for a distance of 99.92 feet to a 1/2“rebar found; THENCE South
85 degrees 00 minutes 38 seconds East for a distance of 149.73 feet to a 1“rebar found; THENCE South 85 degrees 07 minutes
06 seconds East for a distance of 38.89 feet to a 1/2“rebar found; THENCE South 03 degrees 10 minutes 27 seconds West for
a distance of 474.12 feet to a 1/2“rebar found on the North right-of-way line of said Northridge Parkway (right-of-way varies);
Running THENCE along said right-of-way line of Northridge Parkway, the following courses and distances: South 66 degrees 55 minutes
55 seconds West for a distance of 38.49 feet to a POINT; THENCE along a curve to the right having a radius of 778.51 feet and an
arc length of 432.82 feet, being subtended by a chord of South 82 degrees 40 minutes 19 seconds West for a distance of 427.27 feet
to a POINT; THENCE North 81 degrees 24 minutes 03 seconds West for a distance of 340.98 feet to a POINT; THENCE North 08 degrees
35 minutes 37 seconds East for a distance of 8.47 feet to a POINT; THENCE North 81 degrees 24 minutes 27 seconds West for a distance
of 21.45 feet to the True Point of Beginning, said tract being designated “Tract One – 10.929 acres” as shown
on plat of ALTA/ACSM Land Title Survey prepared by Precision Planning, Inc. for Northridge Parkway, LLC, Dutch American Finance,
LLC, Chicago Title Insurance Company and Paul J. A. van Hessen, bearing the seal and certification of Randall W. Dixon, Georgia
Registered Land Surveyor No. 1678, dated February 9, 2012.

 

    	 

    	 

    

TRACT TWO:

 

All that tract of land in Land Lot 25 of the
17th District, Fulton County, Georgia, described as follows:

 

Commence at a point at the intersection of
the North right-of-way line of Northridge Parkway (right-of-way varies) with the West line of Land Lot 385 of the 18th District,
Fulton County, Georgia, THENCE South 00 degrees 48 minutes 34 seconds East for a distance of 89.73 feet to a 1/2” rebar found
on the south right-of-way line of said Northridge Parkway, said point being the True Point of Beginning; THENCE South 00 degrees
32 minutes 22 seconds West for a distance of 74.11 feet to a 1/2” rebar found; THENCE South 61 degrees 01 minute 34 seconds
West for a distance of 43.27 feet to a pk nail found in a rock; THENCE North 88 degrees 01 minute 58 seconds West for a distance
of 34.84 feet to a POINT; THENCE North 45 degrees 18 minutes 03 seconds West for a distance of 35.67 feet to a POINT; THENCE North
81 degrees 51 minutes 27 seconds West for a distance of 47.05 feet to a POINT; THENCE South 87 degrees 35 minutes 49 seconds West
for a distance of 37.47 feet to a POINT; THENCE South 56 degrees 54 minutes 36 seconds West for a distance of 53.53 feet to a POINT;
THENCE South 79 degrees 23 minutes 27 seconds West for a distance of 12.71 feet to a POINT; THENCE South 78 degrees 27 minutes
12 seconds West for a distance of 334.23 feet to a 1” open top pipe found; THENCE South 60 degrees 36 minutes 33 seconds
West for a distance of 31.31 feet to a 1 1/2” crimp top pipe found; THENCE South 86 degrees 32 minutes 28 seconds West for
a distance of 234.61 feet to a POINT; THENCE North 84 degrees 33 minutes 25 seconds West for a distance of 31.85 feet to a POINT;
said point being along the Easterly right-of-way of Roswell Road (A.K.A. Georgia Highway #9; right-of-way varies), Running THENCE
along said right-of-way line of Roswell Road, the following courses and distances: THENCE North 02 degrees 18 minutes 44 seconds
West for a distance of 58.99 feet to a concrete monument found; THENCE North 72 degrees 43 minutes 10 seconds East for a distance
of 51.86 feet to a concrete monument found; THENCE North 03 degrees 12 minutes 14 seconds West for a distance of 18.88 feet to
a concrete monument found; THENCE North 72 degrees 21 minutes 59 seconds West for a distance of 53.37 feet to a concrete monument
found; THENCE North 02 degrees 45 minutes 39 seconds West for a distance of 44.00 feet to a concrete monument found; THENCE North
84 degrees 20 minutes 00 seconds East 14.52 feet to a concrete monument found; THENCE North 02 degrees 37 minutes 47 seconds West
for a distance of 13.12 feet to a concrete monument found, said point being at the intersection of the Easterly right-of-way of
Roswell Road (right-of-way varies) and Southerly right-of-way of Northridge Parkway (right-of-way varies); THENCE along said right-of-way
line of Northridge Parkway, the following courses and distances: THENCE along a curve to the right having a radius of 138.06 feet
and an arc length of 67.05 feet, being subtended by a chord of North 85 degrees 46 minutes 26 seconds East for a distance of 66.39
feet to a POINT; THENCE South 79 degrees 46 minutes 41 seconds East for a distance of 279.89 feet to a POINT; THENCE along a curve
to the left having a radius of 257.60 feet and an arc length of 120.56 feet, being subtended by a chord of North 86 degrees 48
minutes 52 seconds East for a distance of 119.46 feet to a POINT; THENCE North 73 degrees 24 minutes 25 seconds East for a distance
of 202.55 feet to a POINT; THENCE along a curve to the right having a radius of 324.80 feet and an arc length of 142.81 feet, being
subtended by a chord North 86 degrees 00 minutes 10 seconds East for a distance of 141.66 feet to a POINT; THENCE South 81 degrees
18 minutes 45 seconds East for a distance of 58.08 feet to a POINT; said point being the True Point of Beginning, said tract being
designated “Tract Two – 2.036 acres” as shown on plat of ALTA/ACSM Land Title Survey prepared by Precision Planning,
Inc. for Northridge Parkway, LLC, Dutch American Finance, LLC, Chicago Title Insurance Company and Paul J. A. van Hessen, bearing
the seal and certification of Randall W. Dixon, Georgia Registered Land Surveyor No. 1678, dated February 9, 2012.

 

    	 

    	 

    

TOGETHER WITH, a non-exclusive right, title
and interest in and to the easements appurtenant to the above described Tracts created pursuant to that certain:

 

(i)      Amended and Restated Declaration of
Reciprocal Easements among MLH Income Realty Partnership III, a New York limited partnership, Northridge 400 Associates, a Georgia
general partnership, NationsBank of Georgia, N.A., formerly known as The Citizens and Southern National Bank, and Roberts Properties
Highland Park, L.P., a Georgia limited partnership, dated as of August 12, 1994, filed August 19, 1994, recorded in Deed Book
18640, page 98, Fulton County, Georgia records; as amended by that certain First Amendment to Amended and Restated Declaration
of Reciprocal Easements between and among MLH Income Realty Partnership III, a New York limited partnership, Northridge 400 Associates,
a Georgia general partnership, Roberts Properties Residential, L.P. and Roberts Properties, Inc., dated December X, 1995, filed
December 21, 1995, recorded in Deed Book 20394, page 302, aforesaid records; as re-filed on February 5, 1996, re-recorded
in Deed Book 20586, page 132, aforesaid records; as further amended by that certain Second Amendment to Amended and Restated
Declaration of Reciprocal Easements between and among Roberts Properties Residential, L.P., a Georgia limited partnership, and
Gateway Mosswood, Inc., dated August 6, 2003, filed August 7, 2003, recorded in Deed Book 35630, page 176, aforesaid records;

 

(ii)      Grant of Drainage Easement by and between
Roberts Properties, Inc., a Georgia corporation, and Northridge Atlanta, Inc., a Delaware corporation, dated February 23, 2001,
filed March 2, 2001, recorded in Deed Book 30028, page 362, aforesaid records (the “Drainage Easement”); and

 

(iii)      Declaration of Easements by Roberts Properties Residential,
L.P., a Georgia limited partnership, dated June 28, 2001, filed June 29, 2001, recorded in Deed Book 30621, page 508, aforesaid
records; as amended by that certain First Amendment to Declaration of Easements by Roberts Properties Residential, L.P., a Georgia
limited partnership and Northridge Parkway, LLC, a Georgia limited liability company, dated October 30, 2013, filed November 5,
2013, recorded in Deed Book 53314, page 578, aforesaid records.Exhibit 10.4

 

GUARANTY 

THIS GUARANTY (“Guaranty”)
is given as of January 13, 2015, to PAUL J. A. LEX VAN HESSEN, an individual (the “Lender”) by ROBERTS PROPERTIES
RESIDENTIAL, L.P., a Georgia limited partnership and ROBERTS REALTY INVESTORS, INC., a Georgia corporation (collectively
the “Guarantor”) for the obligations of NORTHRIDGE PARKWAY, LLC (“Borrower”).

 

RECITALS

WHEREAS,
Lender has made a loan to Borrower (“Loan”) as evidenced by that certain Promissory Note of even date herewith in the
amount of $2,000,000.00 payable to Lender (“Note”); and

WHEREAS,
Guarantor has an ownership interest in Borrower and will receive a direct or indirect benefit from the Note, and therefore has
agreed to guarantee to the Lender the obligations of the Borrower as set forth herein; and

WHEREAS,
but for this Guaranty, the Lender would be unwilling to extend the Loan to Borrower.

NOW, THEREFORE,
in consideration of the Lender’s financial accommodations to Borrower, the Guarantor hereby covenants and agrees with the Lender
as follows:

1.      Guaranty.
The Guarantor, jointly and severally, hereby unconditionally and irrevocably guaranties to the Lender the full payment and performance,
when due, by acceleration or otherwise, of all indebtedness, liabilities, and obligations of Borrower to the Lender of any kind
and description (collectively, the “Indebtedness”) under and pursuant to the Note or any of the other documents evidencing
or securing the Loan (collectively the “Loan Documents”). The guaranty of the Guarantor as set forth in this section
is an absolute, continuing, primary, and unconditional guaranty of payment and not of collection. The “Indebtedness”
guaranteed hereby shall include, without limitation, the obligations and indemnities of Borrower under that certain Environmental
Indemnity Agreement of even date by Borrower in favor of Lender.

If a claim is ever
made upon the Lender for the repayment or recovery of any amount or amounts received by the Lender in payment of any of the Indebtedness
and the Lender repays all or part of such amount by reason of (a) any judgment, decree, or order of any court or administrative
body having jurisdiction over the Lender or any of its property, or (b) any settlement or compromise of any such claim effected
by the Lender with any such claimant, including the Borrower, then in such event the Guarantor agrees that any such judgment, decree,
order, settlement, or compromise shall be binding upon the Guarantor, notwithstanding any revocation hereof or the cancellation
of the Note or other instrument evidencing any of the Indebtedness, and the Guarantor shall be and remain obligated to the Lender
hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally been received by the
Lender, such amount to be included in the term “Indebtedness.”

    	 

    	 

    

This Guaranty may
be enforced by the Lender against the Guarantor without the necessity at any time of the Lender’s (a) having recourse against
Borrower on the Note, or (b) exercising any other rights available to it under the Note or other Loan Documents. The Guarantor
on demand shall pay to the Lender in immediately available funds, in lawful money of the United States of America, any sum or
sums due to the Lender hereunder.

2.      Nature
of Obligations. The Guarantor acknowledges and agrees that no change in the nature or terms of the Indebtedness or the
Note (including any novation), whether by operation of law or otherwise, including, without limitation any impairment, modification,
change, release, or limitation of the liability of Borrower by reason of Borrower’s bankruptcy or insolvency or any subsequent
reorganization, merger, or consolidation of Borrower or any other change in its composition, nature, personnel, or location shall
discharge all or any part of the liabilities and obligations of the Guarantor pursuant to this Guaranty. It is the purpose and
intent of the Guarantor and the Lender that the covenants, agreements, and all liabilities and obligations of the Guarantor hereunder
are absolute, unconditional, and irrevocable under any and all circumstances, including, without limitation, the invalidity or
unenforceability of the Note or any other Loan Documents. Without limiting the generality of the foregoing, the Guarantor agrees
that until each and every one of the covenants and agreements of this Guaranty are fully performed, the Guarantor’s undertakings
hereunder shall not be released, in whole or in part, by any action or thing which might, but for this paragraph of this Guaranty,
be deemed a legal or equitable discharge of a surety or guarantor, or by reason of any waiver, omission of the Lender, or its failure
to proceed promptly or otherwise, or by reason of any action taken or omitted by the Lender, whether or not such action or failure
to act varies or increases the risk of, or affects the rights or remedies of, the Guarantor, including, without limitation, the
failure of the Lender to perfect, or to continue the perfection of, any lien or security interest in any security or any delay
by the Lender in perfecting any such lien or security interest, or by reason of any further dealings between the Borrower and the
Lender, or any other guarantor or surety, and the Guarantor hereby expressly waives and surrenders any defense to its liability
hereunder based upon, and shall be deemed to have consented to, any of the foregoing acts, omissions, things, agreements, or waivers.
Without limiting the generality of the foregoing, the Guarantor hereby gives its consent for the Lender to do any one or more of
the following without in any manner affecting, impairing, limiting, modifying, or releasing any of the obligations of the Guarantor
under this Guaranty and without notice to or consent of the Guarantor: (a) exchange, compromise, or surrender the whole or any
part of the security now or hereafter held for the Indebtedness; (b) exchange, extend, or renew the time or place of payment of
the Indebtedness in whole or in part, to a time certain or otherwise whether or not longer than the original period, or withdraw
credit or time to pay; (c) extend or change the terms of performance of any other obligations of Borrower under the Note or other
Loan Documents; (d) modify, amend, or waive any of the provisions of the Note or other Loan Documents; (e) release or grant indulgences
to Borrower; (f) receive property or other security as collateral for the Indebtedness; (g) fail to exercise due diligence or omit
to enforce any right, power, or privilege under the Note or other Loan Documents; and (h) apply any payment received by the Lender
from Borrower of, or on account of, the Indebtedness, in any manner the Lender elects.

    	-2-

    	 

    

3.      Waiver
of Rights. The Guarantor expressly waives: (a) notice of the execution and delivery of the Note and creation of the Indebtedness;
(b) notice of acceptance of this Guaranty by the Lender and of all extensions of credit to Borrower by the Lender; (c) presentment
and demand for payment of any of the Indebtedness; (d) protest and notice of dishonor or of default or nonpayment to the Guarantor
or to any other party with respect to the Indebtedness or with respect to any security therefor; (e) notice of the Lender’s obtaining,
amending, substituting for, releasing, waiving, or modifying any security interest, liens, or encumbrances now or hereafter securing
the Indebtedness, or the Lender’s subordinating, compromising, discharging, or releasing such security interests, liens, or encumbrances
and any other notices whatever; (f) demand for payment under this Guaranty; (g) the provisions of Section 10-7-24 of the
Official Code of Georgia Annotated; and (h) all rights of subrogation, indemnification, contribution, and reimbursement from Borrower,
all rights to enforce any remedy the Lender may have against Borrower, and any benefit of, or right to participate in, any collateral
or security now or hereinafter held by the Lender in respect of the Indebtedness, even upon payment in full of the Indebtedness.

4.      Term
of Guaranty: Warranties. This Guaranty shall continue in full force and effect until the Indebtedness is fully paid, performed,
and discharged. Each Guarantor warrants and represents to the Lender that (a) the Guarantor will directly benefit from the financial
accommodations being extended to the Borrower by the Lender; (b) this Guaranty is binding upon and enforceable against the Guarantor,
in accordance with its terms; (c) the execution and delivery of this Guaranty do not violate or constitute a breach of any agreement
to which either Guarantor is a party or of any applicable laws; and (d) there is no litigation, claim, action, or proceeding pending,
or, to the best knowledge of the Guarantor, threatened against the Guarantor that would materially adversely affect the financial
condition of the Guarantor or its ability to fulfill its obligations hereunder.

5.      Attorneys’
Fees and Costs of Collection. If at any time or times hereafter the Lender employs counsel to pursue collection, to intervene,
to sue for enforcement of, or take any other action with respect to the terms hereof or of the Note, then in such event, all of
the reasonable attorneys’ fees, actually incurred (and not statutory attorney’s fees), and disbursements relating thereto
and any other fees and disbursements incurred by or on behalf of the Lender, due to the failure of Borrower to pay the Indebtedness
when due and payable, shall be an additional liability of the Guarantor to the Lender, payable on demand.

6.      Events
of Default. The occurrence of any one or more of the following events shall constitute an event of default (an “Event
of Default”) under this Guaranty: (a) the failure of the Guarantor to perform, observe, or comply with any of the provisions
of this Guaranty, including, without limitation, the payment provisions, (b) a default under the Note or any other Loan Document
or (c) the occurrence of an event of default under the terms of that certain Loan Agreement of even date herewith by and between
Borrower and Lender (“Loan Agreement”).

Upon the occurrence
and during the continuance of an Event of Default under this Guaranty, the Lender may, at its option, declare the Indebtedness
to be immediately due and payable by the Guarantor, and the Guarantor shall on demand pay the same to the Lender in immediately
available funds, in lawful money of the United States of America.

    	-3-

    	 

    

7.      Security
Interests and Setoff. As security for the Guarantor’s obligations hereunder, the Guarantor agrees that (a) in the event
the Guarantor fails to pay its obligations hereunder when due and payable under the Guaranty, any of the Guarantor’s assets of
any kind, nature, or description (including, without limitation, deposit accounts) in the possession, control, or custody of the
Lender, may, without notice to the Guarantor, be reduced to cash or the like and applied by the Lender in reduction or payment
of the Guarantor’s obligations hereunder; (b) all security interests, liens, and encumbrances heretofore, now and at any time or
times hereafter granted by the Guarantor to the Lender also shall secure the Guarantor’s obligations hereunder; and (c) the Lender
shall have the right, immediately and without further action by it, to set off against the Indebtedness all money owed by the Lender
in any capacity to the Guarantor, whether or not due, and the Lender shall be deemed to have made a charge against any such money
immediately upon the occurrence of such obligation becoming due even though such charge is made or entered on the books of the
Lender subsequent thereto.

8.      Cumulative
Rights. All rights of the Lender hereunder or otherwise arising under the Note or other Loan Documents are separate and
cumulative and may be pursued separately, successively, or concurrently, or not pursued, without affecting or limiting any other
right of the Lender and without affecting or impairing the liability of the Guarantor.

9.      Assignment.
The Lender may, without notice to, or consent of, the Guarantor, sell, assign, or transfer to any person or persons all or any
part of the Indebtedness, and each such person or persons shall have the right to enforce this Guaranty as fully as the Lender,
provided that the Lender shall continue to have the unimpaired right prior and superior to that of any such assignee, transferee,
or holder to enforce this Guaranty as to so much of the Indebtedness that it has not sold, assigned, or transferred.

10.      Successors
and Assigns. This Guaranty shall bind each Guarantor and their respective successors, and assigns and shall inure to the
benefit of, and be enforceable by, the Lender and its successors and assigns, including, without limitation, each and every person
who shall from time to time be or become the holder of the Note.

11.      Notices.
Notices under this Guaranty shall be given in accordance with the provisions of the Loan Agreement.

12.      Amendment.
This Guaranty may be terminated, amended, supplemented, waived, released or modified only by an instrument in writing signed by
the party against whom the enforcement of the termination, amendment, supplementation, waiver, release, or modification is sought.

13.      Usury.
Notwithstanding any other provisions herein contained, no provision of this Guaranty shall require or permit the collection from
the Guarantor of interest in excess of the maximum rate or amount that the Guarantor may be required or permitted to pay pursuant
to any Applicable Law.

14.      Governing
Law. This Guaranty shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with,
the laws of the State of Georgia.

    	-4-

    	 

    

15.      Time.
Time is of the essence of this Guaranty.

IN WITNESS WHEREOF,
Guarantor has executed this Guaranty under seal as of the day and year first above written.

 

	 	ROBERTS PROPERTIES RESIDENTIAL, L.P., 

a Georgia limited partnership
	 	 	 
	 	 	 
	 	By:  	Roberts Realty Investors, Inc., a Georgia corporation, its 
	 	 	sole general partner

 

 

	 	By:	/s/ Anthony Shurtz	 
	 	Name:  	Anthony Shurtz	 
	 	Title:	CFO	 
	 	 	 	 
	 	 	[CORPORATE SEAL]	 

 

 

 

	 	ROBERTS REALTY INVESTORS, INC., 

a Georgia corporation

 

 

	 	By:	/s/ Anthony Shurtz	 
	 	Name:  	Anthony Shurtz	 
	 	Title:	CFO	 
	 	 	 	 
	 	 	[CORPORATE SEAL]	 

 

    	-5-

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