Document:

Secured Promissory Note

 EXHIBIT 10.12 
 SECURED PROMISSORY NOTE 
  

					
		  	$3,145,000	  	
			
	 Providence, Rhode Island
	  	December 21, 2006	  	

  

	LOAN:	FOR VALUE RECEIVED, Faith Realty, LLC, a Rhode Island limited liability company (the ‘Borrower’), unconditionally promise to pay to Bank of America, N.A., a
national banking association (“Bank”), or order, at its offices at 111 Westminster Street, Providence, Rhode Island, or at such other place as may be designated in writing by Bank, the principal sum of Three Million One Hundred Forty-Five
Thousand Dollars ($3,145,000), together with interest in arrears from the date hereof on the unpaid principal balance hereunder, computed daily, at the RATE per annum indicated below payable in accordance with the particular PAYMENT SCHEDULE
indicated below. 

  

	DEFINITIONS:	“Alternate LIBOR Fixed Rate” shall mean a rate per annum equal to the Alternate LIBOR Rate plus two and 

	 	one-fourth percent (2.25%). 

 “Alternate LIBOR Rate” shall mean, as of any LIBOR Effective Date and for any particular LIBOR Interest Period, a rate (rounded upward, if necessary, to the nearest one-hundred thousandth of a percentage point)
determined on the basis of the rates for deposits in U.S. Dollars offered by the Reference Banks at approximately 11:00 a.m., London time, on the date that is two London Banking Days preceding the applicable LIBOR Effective Date (as hereinafter
defined), for a term equal to the LIBOR Interest Period commencing on that LIBOR Effective Date and in an amount equal to the LIBOR Portion. The Bank will request the principal London office of each of the Reference Banks to provide a quotation of
its 

 
U.S. Dollar deposit offered rate. If at least two such quotations are provided, the rate as of that LIBOR Effective Date will be the arithmetic mean of the
quotations. If fewer than two quotations are provided as requested, the rate for that date will be determined on the basis of the rates quoted by major banks in New York City selected by the Bank at approximately 11:00 am., New York City time, on
the date that is two (2) London Banking days preceding the applicable LIBOR Effective Date, for loans in U.S. Dollars to leading European banks for a period equal to the LIBOR Interest Period commencing on that LIBOR Effective Date and in an
amount equal to the LIBOR Portion. 
 “Authorized Person” shall mean a person designated from time to
time in writing by Borrower. 
 “Banking Day” shall mean, in respect of any city, any day on which
commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in that city. 
 “Floating Rate” shall mean an annual rate of interest equal to the Prime Rate. 
 “Hedging Contracts” means interest rate swap agreements, interest rate cap agreements and interest rate collar agreements, or any other agreements or arrangements designed to protect the Borrower against fluctuations
in interest rates or currency exchange rates. 
 “Hedging Obligations” means, with respect to the
Borrower, all liabilities of the Borrower to the Bank under Hedging Contracts. 
  

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 “Legal Requirement” shall mean any requirement imposed upon the
Bank by any law of the United States of America or by any regulation, order, interpretation, ruling or official directive (whether or not having the force of law) of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, or any other board or governmental or administrative agency of the United States of America, or any political subdivision of any thereof. 
 “LIBOR Fixed Rate” shall mean a rate per annum equal to the LIBOR Rate plus two and one-fourth percent (2.25%). 
 “LIBOR Effective Date” means that date specified in a written notice from Borrower to Bank given not less than two
(2) London Banking Days prior to such date, indicating Borrower’s election to pay interest hereunder based on a LIBOR Fixed Rate commencing as of such date, subject to the terms and conditions hereof. 
 “LIBOR Interest Period” shall mean the period beginning on a LIBOR Effective Date and ending on (but excluding)
the day which numerically corresponds to such date one month thereafter (or, if such month has no numerically corresponding day, on the last Business Day of such month), and, if the Borrower enters into a Hedging Contract in respect of the
indebtedness evidenced by this Note, then during the term of such Hedging Contract, each period commencing on the last day of the next preceding LIBOR Interest Period and ending one month thereafter, provided, however, that 
  

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 (i) If the Borrower has incurred or hereafter incurs a Hedging Obligation in respect of
the indebtedness evidenced by this Note, such LIBOR Interest Period shall be of the same duration as the relevant periods set under the applicable Hedging Contracts; 
 (ii) if such LIBOR Interest Period would otherwise end on a day which is not a Business Day, such LIBOR Interest Period shall end on the
next following Business Day unless such day falls in the next calendar month, in which case such LIBOR Interest Period shall end on the first preceding Business Day. 
 “LIBOR Portion” shall mean, as of a LIBOR Effective Date, the then outstanding principal balance of this Note.

 “LIBOR Rate” means, in relation to a LIBOR Interest Period, the rate per annum as determined on the
basis of the offered rates for deposits in U.S. Dollars in an amount equal (as nearly as may be) to the LIBOR Portion as of the LIBOR Effective Date and for a period equal to such LIBOR Interest Period which the British Bankers’ Association
fixes as its LIBOR rate as of 11:00 a.m. London time, on the date that is two London Banking Days preceding the LIBOR Effective Date, as adjusted from time to time pursuant to paragraphs 1 and 2 of the TERMS AND CONDITIONS below. If the British
Bankers’ Association does not fix a LIBOR rate on any applicable interest determination date, all references herein to the LIBOR Rate and the LIBOR Fixed Rate shall mean the Alternate LIBOR Rate and the Alternate LIBOR Fixed Rate, respectively
(both as defined above). Each determination by the Bank of any LIBOR Rate shall, in the absence of manifest error, be conclusive. 
  

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 “Loan Agreement” means that certain Construction Loan Agreement
between the Borrower and the Bank dated as of even date. 
 “Maturity Date” shall mean June 21,
2017. 
 “Prime Rate” means the variable per annum rate of interest designated from time to time by
Bank as its Prime Rate, with such rate changing on the same day on which any change in the Prime Rate is effective without notice or demand of any kind. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate
being charged to any customer. 
 “Reference Banks” means four major banks in the London interbank
market, as selected by the Bank. 
 “Reserves” shall mean any reserve, reserve asset, capital reserve,
minimum capital requirement, special deposit, insurance premium or assessment required by any Legal Requirement to be maintained or paid by the Bank for or with respect to (a) any deposits purchased in the London interbank foreign currency
deposits market, (b) any deposit represented by a certificate of deposit issued by the Bank, (c) loans made with the proceeds of any such deposits, or (d) the principal amount of or interest on the LIBOR Portion hereunder bearing
interest at the LIBOR Rate, including any reserves imposed under Regulation D and any amounts payable to the Federal Deposit Insurance Corporation (the “FDIC”) or any successor thereto for insurance by the FDIC for time deposits made in
dollars. 
  

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 “Tax” shall mean, in relation to the LIBOR Portion and applicable
LIBOR Rate, any tax, levy, impost, duty, deduction, withholding or other charges of whatever nature required by any Legal Requirement (a) to be paid by the Bank or (b) to be withheld or deducted from any payment otherwise required hereby
to be made by the Borrower to the Bank, provided that the term “Tax” shall not include any taxes imposed upon the net income of the Bank by the United States of America, the United Kingdom, Canada, the Bahamas or any political subdivision
thereof. 
 “U.S. Dollars” means the lawful currency of the United States of America. 
  

	RATE:	From the date hereof until payment in full of this Note, interest on the unpaid principal balance shall be charged hereunder, and the Borrower promises to pay such interest,
at a rate per annum equal to the Floating Rate; provided, however, so long as an Event of Default (as hereafter defined) shall not exist and be continuing hereunder and subject to paragraphs 1, 2, and 3 of the ADDITIONAL TERMS AND CONDITIONS below,
and upon not less than two (2) Business Days prior written notice, Borrower, at its sole option, may elect to change the effective rate of interest hereunder to an annual rate calculated with reference to the LIBOR Fixed Rate, subject to the
following conditions: 

  

	 	a.	Borrower may request Bank for a quote as to a LIBOR Fixed Rate at any time and from time to time. 

  

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	 	b.	Each such election shall be made by Borrower upon telephonic request from an Authorized Person to make such election, and a subsequent telephonic confirmation from an Authorized
Person accepting the LIBOR Fixed Rate. The LIBOR Fixed Rate selected and the commencement date (the LIBOR Effective Date) and the final date of such LIBOR Interest Period therefor shall be promptly confirmed in writing by Borrower to Bank.

  

	 	c.	If Borrower intends to continue to accrue interest on the outstanding principal balance hereunder based on a LIBOR Rate upon the expiration of a LIBOR Interest Period which is the
subject of an expiring election, Borrower shall make a new election no later than 3:00 p.m. (Providence time) on the Banking Day two (2) days prior to the last day of such expiring LIBOR Interest Period. If Borrower fails to elect a LIBOR Fixed
Rate on a timely basis, the interest rate hereunder will convert on the last day of such LIBOR Interest Period to the Floating Rate. 

  

	 	d.	If Borrower enters a Hedging Contract in respect of the indebtedness evidenced by this Note, then, notwithstanding any other terms of this Note, Borrower may not convert the rate of
interest payable under this Note to a Floating Rate during the term of such Hedging Contract, and upon the expiration of each LIBOR Interest Period during the term of such Hedging Contract a new LIBOR Interest Period shall commence effective as of
the last day of the expiring LIBOR Interest Period and end one month thereafter. 

  

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 Interest will be calculated on the basis of the actual number of days elapsed over a year of 360 days.
Whenever an Event of Default is in existence under this Note, the rate of interest on the unpaid principal and interest shall, at the option of Bank, be at the Default Rate (hereinafter defined). 
 All agreements between Borrower and Bank are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of
maturity of the indebtedness evidenced hereby or otherwise, shall the amount paid or agreed to be paid to Bank for the use or the forbearance of the indebtedness evidenced hereby exceed the maximum permissible under applicable law. As used herein,
the term “applicable law” shall mean the law in effect as of the date hereof, provided, however that in the event there is a change in the law which results in a higher permissible rate of interest, then this Note shall be governed by such
new law as of its effective date. In this regard, it is expressly agreed that it is the intent of Borrower and Bank in the execution, delivery and acceptance of this Note to contract in strict compliance with the laws of the State of Rhode Island
from time to time in effect. If, under or from any circumstances whatsoever, fulfillment of any provision hereof shall involve transcending the limit of such validity prescribed by applicable law, then the obligation to be fulfilled shall
automatically be reduced to the limits of such validity, and if under or from any circumstances whatsoever Bank should ever receive as interest an amount which would exceed the highest lawful rate, such amount which would be excessive interest shall
be applied to the reduction of the principal balance evidenced hereby and not to the payment of interest. This provision shall control every other provision of all agreements between Borrower and Bank. 
  

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 PAYMENT 

	SCHEDULE:	In the event that any payment of principal and/or interest shall not be received by Bank within TEN (10) days of the due date, the Borrower shall, to the extent permitted by
law, pay Bank not later than one (1) month thereafter a late charge of FIVE (5%) percent of the overdue payment. 

 All payments shall be applied first to the payment of all fees, expenses and other amounts due to the Bank (excluding principal and interest), then to accrued interest, and the balance on account of outstanding principal; provided, however,
that after the occurrence of an Event of Default (as defined below), payments will be applied to the obligations of Borrower to Bank as Bank determines in its sole discretion. 
 The Borrower shall pay interest only to Bank on the unpaid principal balance of all Advances made by Bank from time to time pursuant to the Loan
Agreement, with interest payable monthly commencing on January 21, 2007 and continuing on the same day of each successive month thereafter, with a final interest-only payment due and payable on June 21, 2007. Thereafter, principal and
interest shall be payable in consecutive equal monthly installments in an 

  

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amount which, if paid monthly until June 21, 2027 (based on the assumption that the then current rate would remain in effect throughout the term), would
cause the then principal balance of this Note as of June 21, 2007, together with interest at the interest rate then in effect, to be paid in full, commencing July 21, 2007 and continuing on the same day of each successive month thereafter
with a final payment of all unpaid principal and interest due and payable in full on June 21, 2017. All unpaid principal and accrued interest shall be due and payable in full on the Maturity Date. 
 If this Note or any payment hereunder becomes due on a day which is not a Business Day (as defined below), the due date of this Note or payment shall be
extended to the next succeeding Business Day, and such extension of time shall be included in computing interest and fees in connection with such payment. As used in this Note, “Business Day” shall mean any day other than a Saturday,
Sunday or day which shall be in the State of Rhode Island a legal holiday or day on which banking institutions are authorized or required to close. 
 All payments shall be made by Borrower to Bank in lawful currency of the United States of America in immediately available funds, without counterclaim or setoff and free and clear of, and without any deduction or withholding for, any taxes
or other payments. 
  

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 ADDITIONAL TERMS AND CONDITIONS: 
  

	1.	If at any time during the term of this Note, the Bank shall be required by any Legal Requirement (other than legal requirements imposed specifically on the Bank and not applicable
to national banks or FDIC-insured banks generally) to maintain any Reserves in respect of any LIBOR Portion, other than Reserves existing as of the date of the applicable Date of Determination, the LIBOR Rate shall be adjusted to reflect all
additional costs incurred or to be incurred by the Bank in maintaining such Reserves. Such costs shall be computed by determining the amount by which such Legal Requirement effectively increases the cost to the Bank of obtaining deposits of U.S.
Dollars in the London foreign currency deposits market in amounts equal to the LIBOR Portion. The determination by the Bank of the amount of such costs and the allocation, if any, of such costs among the Borrower and other customers of the Bank that
have arrangements with the Bank similar to the Borrower’s LIBOR Rate arrangement, if done in good faith and, with respect to such allocation, on an equitable basis, shall, in the absence of manifest error, be conclusive.

  

	2.	 It is the understanding of the Borrower and the Bank that the Bank shall receive payments of amounts of principal of and interest on this Note with respect to the
LIBOR Portion from time to time bearing interest under the LIBOR Rate free and clear of, and without deduction for, any Taxes. If (a)(i) the Bank shall be subject to any such Tax in respect of any such amount, or (ii) the Borrower shall be
required to withhold or deduct any such Tax from any such amount, and (b) such Tax shall not have existed as of the date of the applicable LIBOR Effective Date, the LIBOR Rate shall be adjusted to reflect all additional costs (including,

  

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without limitation, any Taxes due to such adjustment) incurred or to be incurred by the Bank in connection with the payment by the Bank or the withholding by
the Borrower of such Tax (including, without limitation, any penalties or interest or expenses), and the Borrower shall provide the Bank with a statement detailing the amount of any such Tax actually paid by the Borrower. The determination by the
Bank of the amount of such costs shall, in the absence of manifest error, be conclusive, and at the Borrower’s request, the Bank shall demonstrate the basis for such determination. If after any such adjustment and payment of the same by the
Borrower, any part of any Tax paid by the Bank is subsequently recovered by the Bank, the Bank shall reimburse the Borrower to the extent of the amount so recovered. A certificate of an officer of the Bank setting forth the amount of such recovery
and the basis therefor shall, in the absence of manifest error, be conclusive. 

  

	3.	Notwithstanding anything herein to the contrary, the following conditions must be met in order for the Bank to make the LIBOR Rate available to the Borrower:

 (a) There shall have occurred no change in applicable law which might make it unlawful in the opinion of counsel for the Bank
to obtain deposits of U.S. Dollars in the London interbank foreign deposits market; 
 (b) As of a LIBOR Effective Date, there shall exist no
Event of Default (as defined below) which is not waived by the Bank. 
 (c) The Bank shall not have determined in good faith that it is unable
to determine a LIBOR Rate in respect of a LIBOR Interest Period and the Bank shall not have determined that it is unable to obtain deposits of U.S. dollars in the London interbank foreign currency deposits market in the applicable amounts and for
such LIBOR Interest Period. 
  

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 In the event that a LIBOR Rate is not available, then the indebtedness evidenced by this Note shall bear
interest at a per annum rate equal to the Prime Rate. 
  

	4.	Throughout the term of this Note, the determination of a LIBOR Rate on each Date of Determination shall be irrevocable and binding upon the Borrower. 

  

	5.	Borrower may elect to prepay, upon three (3) days prior written notice, the principal outstanding hereunder subject to the following conditions: 

  

	 	(i)	During any period in which a Floating Rate is being charged, the principal outstanding hereunder may be prepaid in full or in part without premium or penalty.

  

	 	(ii)	During any period in which a LIBOR Rate is being charged, the principal outstanding hereunder may be prepaid only on the last day of a LIBOR Interest Period. Borrower shall pay to
Bank, upon request of Bank, such amount or amounts as shall be sufficient (in the reasonable opinion of Bank) to compensate it for any loss, cost or expense incurred as a result of (i) any such payment on a date other than the last day of a
LIBOR Interest Period or (ii) any failure by Borrower to borrow based on a LIBOR Rate on the date specified in Borrower’s notice to Bank. Without limiting the foregoing, Borrower shall pay to Bank a “yield maintenance fee” in an
amount computed as follows: The current rate for United States Treasury securities (bills on a discounted basis shall be converted to a bond equivalent) with a maturity date closest to the last day of the then LIBOR Interest Period shall be
subtracted from the LIBOR Rate in effect at the time of prepayment. If the result is zero or a negative number, there shall be no prepayment premium. If the result is a positive 

  

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number, then the resulting percentage shall be multiplied by the amount of the principal balance being prepaid. The resulting amount shall be divided by 360
and multiplied by the number of days remaining in the then LIBOR Interest Period. Said amount shall be reduced to present value calculated by using the number of days remaining in the then LIBOR Interest Period and using the above referenced United
States Treasury securities rate. The resulting amount shall be the yield maintenance fee due to Bank upon the prepayment of a LIBOR loan. Said yield maintenance fee shall be due and payable, as aforesaid, if the payment of principal due and owing
hereunder is accelerated on account of an Event of Default (hereinafter described) hereunder 

  

	6.	 Borrower: (i) waives presentment, demand, notice of demand, protest, notice of protest and notice of nonpayment and any other notice required to be given under
the law to Borrower, in connection with the delivery, acceptance, performance, default or enforcement of this Note, of any indorsement or guaranty of this Note or of any document or instrument evidencing any security for payment of this Note;
(ii) consents to any and all delays, extensions, renewals or other modifications of this Note or waivers of any term hereof or release or discharge by Bank of any guarantor or release, substitution or exchange of any security for the payment
hereof or the failure to act on the part of Bank or any indulgence shown by Bank, from time to time and in one or more instances (without notice to or further assent from Borrower), and agrees that no such action, failure to act or failure to
exercise any right or remedy, on the part of Bank shall in any way affect or impair the obligations of Borrower or be construed as a waiver by Bank of, or otherwise affect, any of Bank’s rights under this Note, under any indorsement or guaranty
of this Note or under any document or instrument evidencing any security for payment of this Note; and (iii) agrees to pay, on demand, all costs 

  

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and expenses of collection of this Note or of any indorsement or any guaranty hereof and/or the enforcement of Bank’s rights with respect to, or the
administration, supervision, preservation, protection of, or realization upon, any property securing payment hereof, including reasonable attorneys’ fees. 

  

	7.	This Note is delivered in and shall be construed under the internal laws (and not the law of conflicts or choice of law) of the State of Rhode Island, and in any litigation in
connection with, or enforcement of, this Note or of any indorsement or guaranty of this Note or any security given for payment hereof, Borrower CONSENTS TO AND CONFERS PERSONAL JURISDICTION ON COURTS OF THE STATE OF RHODE ISLAND OR OF THE FEDERAL
GOVERNMENT SITTING THEREIN, AND EXPRESSLY WAIVES ANY OBJECTIONS AS TO VENUE IN ANY OF SUCH COURTS. The term “Bank” as used in this Note shall include Bank’s successors, indorsees and assigns. 

  

	8.	The occurrence of any one or more of the following events shall constitute an Event of Default under this Note: 

 (a) default in the payment of any installment of the principal of, or fees or interest on, this Note after the date when the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment or by acceleration or otherwise, and the continuance of such default for a period of ten (10) days after such due date; 
 (b) default, after the expiration of any applicable grace periods, in the due observance or performance of any covenant, promise or provision contained in
any other agreement of the Borrower in favor of Bank, including, without limitation, any other promissory note, loan agreement, mortgage deed, or security document; 
  

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 (c) any Event of Default shall occur and be continuing as defined under any of the Security Documents, or
as defined under the Loan Agreement. 
  

	9.	Whenever an Event of Default is in existence under this Note, the entire balance outstanding hereunder and all other liabilities, indebtedness and obligations of Borrower to Bank
(however acquired or evidenced) shall, at the option of Bank, become forthwith due and payable, without presentment, notice, protest or demand of any kind (all of which are expressly waived by Borrower) for the payment of the whole or any part
hereof. Whenever an Event of Default is in existence under this Note (whether or not Bank has accelerated payment of this Note), or after maturity or after judgment has been rendered on this Note, to the extent permitted by law, the rate of interest
on the unpaid principal shall, at the option of Bank, be increased to four percent (4%) over the rate which would otherwise be applicable (the “Default Rate”). Failure at any time to exercise either of the aforesaid options or any
other rights of Bank hereunder shall not constitute a waiver thereof, nor shall it be a bar to exercise of either of the aforesaid options or rights at a later date. 

  

	10.	In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any respect or in the
event that any one or more of the provisions of this Note operate or would prospectively operate to invalidate this Note, then and in either of those events, such provision or provisions only shall be deemed null and void and shall not affect any
other provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby. 

  

	11.	BORROWER AND BANK (BY ACCEPTANCE OF THIS NOTE) MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON,

  

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ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF
CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF BANK RELATING TO THE ADMINISTRATION OF THE LOAN OR
ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. BORROWER CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT BANK WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR BANK TO ACCEPT THIS NOTE AND MAKE THE LOAN.

  

	12.	Bank may at any time pledge or assign all or any portion of its rights under this Note to any of the twelve (12) Federal Reserve Banks organized under Section 4 of the
Federal Reserve Act, 12 U.S.C. Section 341. No such pledge or assignment or enforcement thereof shall release Bank from its obligations under any of the loan documents evidencing or securing this Note. 

  

	13.	 Bank shall have the unrestricted right at any time and from time to time, and without the consent of or notice to Borrower, to grant to one or more banks or other
financial institutions (each a “Participant”) participating interests in the obligations evidenced hereby. In the event of any such grant by Bank of a participating interest to a Participant, whether or not upon notice 

  

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to Borrower, Bank shall remain responsible for the performance of its obligations hereunder and Borrower shall continue to deal solely and directly with Bank
in connection with Bank’s rights and obligations hereunder. Bank may furnish any information concerning Borrower in its possession from time to time to prospective Participants, provided that Bank shall require any such prospective Participant
to agree in writing to maintain the confidentiality of such information. 

  

	14.	Borrower shall pay on demand all expenses of Bank in connection with the preparation, administration, default, collection, waiver or amendment of loan terms, or in connection with
Bank’s exercise, preservation or enforcement of any of its rights, remedies or options hereunder, including, without limitation, fees of outside legal counsel or the allocated costs of in-house legal counsel, accounting, consulting, brokerage
or other similar professional fees or expenses, and any fees or expenses associated with travel or other costs relating to any appraisals or examinations conducted in connection with the loan or any collateral therefor, and the amount of all such
expenses shall, until paid, bear interest at the rate applicable to principal hereunder (including any default rate) and be an obligation secured by any collateral. 

  

	15.	Upon receipt of an affidavit of an officer of Bank as to the loss, theft, destruction or mutilation of the Note or any other security document which is not of public record, and, in
the case of any such loss, theft, destruction or mutilation, upon cancellation of such Note or other security document, Borrower will issue, in lieu thereof, a replacement Note or other security document in the same principal amount thereof and
otherwise of like tenor. 

  

	16.	No portion of the proceeds of the loan evidenced by this Note shall be used, in whole or in part, for the purpose of purchasing or carrying any “margin stock” as such term
is defined in Regulation U of the Board of Governors of the Federal Reserve System. 

  

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	17.	Bank shall have the unrestricted right at any time or from time to time, and without Borrower’s consent, to assign all or any portion of its rights and obligations hereunder to
one or more banks or other financial institutions (each, an “Assignee”), and Borrower, upon its or its counsel’s satisfactory review, agrees that it shall execute, or cause to be executed, such documents, including, without
limitation, amendments to this Note and to any other documents, instruments and agreements executed in connection herewith as Bank shall deem necessary to effect the foregoing. Bank agrees to reimburse Borrower for its reasonable legal expenses
incurred in connection with the execution of any such documentation. In addition, at the request of Bank and any such Assignee, Borrower shall issue one or more new promissory notes, as applicable, to any such Assignee and, if Bank has retained any
of its rights and obligations hereunder following such assignment, to Bank, which new promissory notes shall be issued in replacement of, but not in discharge of, the liability evidenced by this Note and held by Bank prior to such assignment and
shall reflect the amount of the respective loans held by such Assignee and Bank after giving effect to such assignment, provided, however, that in no event shall the amount due under the subsequent notes exceed the amount due under this Note. Upon
the execution and delivery of appropriate assignment documentation, amendments and any other documentation required by Bank in connection with such assignment, and the payment by Assignee of the purchase price agreed to by Bank, and such Assignee,
such Assignee shall have all of the rights and obligations of Bank hereunder (and under any and all other guaranties, documents, instruments and agreements executed in connection herewith) to the extent that such rights and obligations have been
assigned by Bank pursuant to the assignment documentation between Bank and such Assignee. Bank may furnish any 

	 	information concerning Borrower in its possession from time to time to prospective Assignees, provided that Bank shall require any such prospective Assignee to agree in writing to
maintain the confidentiality of such information. 

  

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	18.	This Note is intended by the parties as the final. complete and exclusive statement of the transactions evidenced by this Note. All prior or contemporaneous promises, agreements and
understandings, whether oral or written, are deemed to be superseded by this Note, and no party is relying on any promise, agreement or understanding not set forth in this Note. This Note may not be amended or modified except by a written instrument
describing such amendment or modification executed by Borrower and Bank. 

  

	19.	By mutual agreement of Borrower and Bank, Bank may effect payment of any sums due hereunder by means of debiting any of Borrower’s demand deposit accounts with Bank.

  

	SECURITY:	Borrower hereby grants to Bank, a continuing lien, security interest and right of setoff as security for all liabilities and obligations to Bank, whether now existing or hereafter
arising, upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity under the control of Bank of America Corporation and its successors and assigns, or
in transit to any of them. At any time, without demand or notice (any such notice being expressly waived by Borrower), Bank may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured
and regardless of the adequacy of any other collateral securing this Note. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THIS NOTE, PRIOR TO EXERCISING ITS RIGHTS OF SETOFF
WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 

  

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 This Note is also secured by and entitled to the benefits of a Guarantee, an Open-End Mortgage and
Security Agreement, and a Collateral Assignment of Leases and Rents, all dated as of even date (collectively herein the “Security Documents”). 
  

							
	WITNESS:	 		 	BORROWER:
			
		 		 	Faith Realty, LLC
				
	 /s/ Steven Rosenbaum
	 		 	By:	 	 /s/ Jason P. Macari

		 		 	Name:	 	Jason P. Macari
		 		 	Title:	 	Member

  

 - 21 -Open End Mortgage and Security Agreement

 EXHIBIT 10.13 
 OPEN-END MORTGAGE AND SECURITY AGREEMENT 
 TO SECURE PRESENT AND FUTURE LOANS 
 UNDER CHAPTER 25 OF TITLE 34 OF THE GENERAL LAWS 
 KNOW ALL MEN BY THESE PRESENTS, That Faith Realty, LLC, a Rhode Island limited liability company with its principal place of business located at 582 Great Road, North Smithfield, Rhode Island (the
“Mortgagor”), for consideration paid to the Mortgagor by Bank of America, N.A., a national banking association with a place of business located at 111 Westminster Street, Providence, Rhode Island 02903 Attention: David J. Angell
(the “Mortgagee”), the receipt of which is hereby acknowledged, does hereby grant to the Mortgagee the following described real estate and other property: 
 I. LAND: All the land in the City of Woonsocket, County of Providence, State of Rhode Island, more particularly described in
Exhibit A attached hereto and hereby made a part hereof (the “Premises”). 
 II. IMPROVEMENTS AND OTHER
PROPERTY: All buildings and improvements now or hereafter situated upon the Premises, together with all fixtures now or hereafter owned by the Mortgagor or in which the Mortgagor has an interest (but only to the extent of such interest) and
placed in or upon the Premises or the buildings or improvements thereon or used in the maintenance or leasing of said buildings or improvements (the “Improvements”). 
 III. EASEMENTS: Any easement, bridge or right of way, contiguous to or adjoining the Premises and the Improvements thereon, and all
other easements, if any, inuring to the benefit of the Premises. 
 IV. EQUIPMENT AND FIXTURES: All equipment used in
the maintenance or cleaning of the Improvements and fixtures of every kind and description now or hereafter owned by the Mortgagor or in which the Mortgagor has any interest (but only to the extent of such interest) and situated or to be situated
upon or in, or used in connection with the operation of, the Premises or the Improvements, together with any renewals, replacements or additions thereto, substitutions therefor and proceeds thereof (collectively the “Personal Property and
Fixtures”). 
 The property hereby granted and conveyed is hereinafter generally referred to as the “Mortgaged Property”.

 SUBJECT, HOWEVER, to those encumbrances described on Exhibit B attached hereto and hereby made a part hereof. 
 TO HAVE AND TO HOLD the Mortgaged Property unto the Mortgagee, and its successors and assigns forever, together with all and singular the
tenements, hereditaments and appurtenances belonging or in anywise appertaining thereto, whether now owned or acquired hereafter, with the reversions, remainders, rents, issues, incomes and profits thereof, and all of the estate, right, title,
interest and claim whatsoever which the Mortgagor now has or which it may hereafter acquire in and to the Mortgaged Property. 

 This conveyance is made for the purpose of securing: 
 (A) Payment of the principal and interest evidenced by that certain secured promissory note of the Mortgagor payable to the order of the Mortgagee of even
date herewith in the amount of Three Million One Hundred Forty-Five Thousand Dollars ($3,145,000), as said note may hereafter be amended, extended, or modified (the “Note”), which indebtedness will include future advances which will be
advanced from time to time from and after the date hereof, and all obligations arising from Hedging Contracts and Hedging Obligations, as such terms are defined in the Note, with respect to the indebtedness evidenced by the Note. 
 (B) Performance of each and every obligation of the Mortgagor contained herein and in the Note. 
 (C) Performance by the Mortgagor of all of its obligations and payment of any amounts due under that certain Construction Loan Agreement of even date
between the Mortgagor and the Mortgagee, together with any amendment or modification thereof (the “Loan Agreement”). 
 The Note,
the Loan Agreement, and all documents executed by the Mortgagor in connection therewith, including, but not limited to, other documents securing the Notes, shall hereinafter be referred to as the “Loan Documents”. At no time shall the
unpaid principal balance of the indebtedness secured by this Mortgage exceed Three Million One Hundred Forty-Five Thousand Dollars ($3,145,000). 
 The Mortgagor hereby covenants and agrees with the Mortgagee: 
 1. That the Mortgagor is the true, sole and lawful owner of the
Mortgaged Property; that the Mortgagor is lawfully seized and possessed of the Mortgaged Property in fee simple; that the Mortgaged Property is free from all encumbrances, except as set forth in Exhibit B attached hereto; and that the Mortgagor has
good right, full power and lawful authority to sell and convey the Mortgaged Property to the Mortgagee. 
 2. That the Mortgagor will warrant
and defend the Mortgaged Property to the Mortgagee forever against the lawful claims and demands of all persons, except as aforesaid. 
 3.
That the Mortgagor, in case a sale shall be made under the power of sale hereafter contained, will, upon request, execute, acknowledge and deliver to the purchaser or purchasers such deed or deeds confirmatory of said sale as may be required.

 4. That the Mortgagor shall not cause or permit strip or waste. 
 5. That the Mortgagor shall pay to the Mortgagee all reasonable costs, fees and expenses (including reasonable counsel fees) suffered or incurred by the
Mortgagee in the enforcement, exercise or defense of its rights or powers hereunder or in collecting the indebtedness hereby secured, and all taxes and assessments of every kind and nature assessed, imposed or constituting a lien upon this Mortgage
or upon the Mortgagee in respect to this Mortgage, the Loan Documents or the indebtedness evidenced hereby and thereby, whether under statutes now in force or that may be hereafter enacted, and any sums expended by the Mortgagee in making 

  

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any repairs to the Mortgaged Property which the Mortgagee, at its option but without obligation to do so, may make in keeping the Mortgaged Property in good
condition and repair, all of which sums shall be secured by this Mortgage and shall bear interest at the same rate provided in the Revolving Note until payment thereof. 
 6. That no waiver, forbearance, extension of time or indulgence shown by the Mortgagee to the Mortgagor or any other person now or hereafter interested herein or in the Mortgaged Property or in the Loan Documents with
respect to any combination of conditions, covenants or agreements on the part of the Mortgagor to be paid, performed or observed as set forth or referred to herein or in the Loan Documents will affect the right of the Mortgagee thereafter to require
payment, performance or observance of the same or of any other covenant, condition or agreement. 
 7. That the Mortgagor does hereby assign
to the Mortgagee all rents due or to become due in the future from the occupants of the Mortgaged Property, or any part thereof, on any existing or future lease or tenancy, hereby constituting and appointing the Mortgagee its true and lawful
attorney, with full power of substitution and revocation, to sue for and collect the same at any time and from time to time when any default exists hereunder. 
 8. That the Mortgagor shall not further mortgage, pledge, hypothecate, sell, assign or otherwise transfer the Mortgaged Property, or any part thereof, without the prior written consent of the Mortgagee; provided,
however, that the Mortgagor may sell or otherwise transfer the Mortgaged Property to Summer Infant, Inc., a Rhode Island corporation, subject to this Mortgage, without the prior written consent of the Mortgagee but upon prior written notice to
Mortgagee. 
 9. That the Mortgagor shall pay (a) the indebtedness secured hereby in accordance with the terms of the Loan Documents;
(b) all taxes and assessments of every nature levied or to be levied upon the Mortgaged Property prior to the full payment and discharge of said indebtedness, whether under any present or future law; (c) all premiums for insurance
maintained upon the Mortgaged Property; (d) all water rates and other expenses hereby secured as herein provided; and (e) all indebtedness to third parties authorized by the Mortgagee and secured by the Mortgaged Property. 
 10. That the Mortgagor shall keep and maintain insurance against loss by fire and by such other hazards, casualties and contingencies, and public
liability insurance, in such amounts, for such periods, in such form and with such company or companies as the Mortgagee or other holder of this Mortgage may at any time and from time to time specify, and shall pay promptly when due all premiums on
such insurance. The Mortgagor shall make all policies of insurance payable in case of loss to the Mortgagee and shall name the Mortgagee as additional insured, by clauses satisfactory to the Mortgagee, and shall deliver the policies to the
Mortgagee. The Mortgagee or other holder of this Mortgage for the time being is hereby made, constituted and appointed the true and lawful attorney irrevocable of the Mortgagor to demand, adjust, sue for, compromise and collect any and all losses
which may occur under any such insurance and to give releases for any and all sums received in settlement of such losses, and to apply the same, after deducting any expenses incurred in connection therewith, upon the mortgage indebtedness secured
hereby, whether or not then due, or in reimbursement for any taxes, assessments, insurance premiums or other sums paid by the Mortgagee, or to the cost of replacing 

  

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or repairing the damaged Improvements. In the event of foreclosure under this Mortgage or other transfer of the title to the Mortgaged Property in
satisfaction of the indebtedness secured hereby, or any part thereof, all right, title and interest of the Mortgagor in and to any insurance policies, or to any refund or return of premiums or dividends thereon, shall pass to the Mortgagee, and the
Mortgagee may surrender said policies and collect any sums due thereon, or may, at its option, transfer its right, title and interest in said policies and the proceeds thereof to any purchaser of the Mortgaged Property; provided that any sums
received on said policies by way of refunds, dividends or otherwise, shall be applied on account of the indebtedness secured hereby and any surplus paid over as a surplus on foreclosure. If the Mortgagor fails to provide such insurance or to pay the
premiums thereon, the Mortgagee may effect such insurance or pay the premiums thereon, and all premiums so paid shall be secured by this Mortgage and shall bear interest at the rate provided upon the indebtedness secured hereby until payment
thereof. 
 11. That (a) if by reason of any damage or destruction to the Mortgaged Property, any sums are paid under any insurance
policy mentioned in or contemplated by Section 10 hereof, such sums (after deducting all expenses, including reasonable legal fees, incurred by the Mortgagee in the enforcement, settlement, collection and handling of any claim for such damage
or destruction) shall be paid as follows: 
 (1) If the aggregate net insurance proceeds received by reason of any single instance of such
damage or destruction shall be Five Hundred Thousand Dollars ($500,000) or less, such insurance proceeds shall be paid over, subject to the terms of this Section 11, to the Mortgagee and the Mortgagor jointly or, at the option of the Mortgagee,
to the Mortgagor alone, to be held as a trust fund to be used first for the payment of the entire cost of restoring, repairing, rebuilding or replacing the damaged or destroyed Mortgaged Property before using the same for any other purpose;
provided, however, that if any event of default shall exist hereunder at the time such proceeds are so to be paid over, such proceeds shall be paid over to the Mortgagee alone, to be applied in the Mortgagee’s discretion to the
payment of the indebtedness secured hereby or the repair of the Mortgaged Property; 
 (2) If the aggregate insurance proceeds received by
reason of any single instance of such damage or destruction shall exceed Five Hundred Thousand Dollars ($500,000), such proceeds shall be paid to the Mortgagee alone, to be applied toward reimbursement of all costs and expenses of the Mortgagee in
collecting such proceeds, and, at the option of the Mortgagee, either toward payment of the indebtedness secured hereby or any portion thereof, whether or not due and payable, or to the repair, restoration, rebuilding or replacement of that part of
the Mortgaged Property so damaged or destroyed; 
 (3) If insurance proceeds are to be applied to the restoration of the Mortgaged Property,
such restoration shall be done subject to the following conditions: 
 (i) the Mortgagor shall submit to the Mortgagee plans and
specifications and a budget of all costs for such restoration, which items shall be satisfactory to the Mortgagee; 
  

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 (ii) at any time and from time to time, to the extent the estimated cost of completion of such
restoration exceeds then available insurance proceeds during such restoration, the Mortgagor shall deposit with the Mortgagee the amount of such deficiency or otherwise demonstrate the availability of funds for such deficiency within twenty
(20) days after demand by the Mortgagee; 
 (iii) the deficiency referred to in clause (ii) of this Section 11(a)(3) shall be
spent on such restoration of the Mortgaged Property prior to use of insurance proceeds for such restoration; 
 (iv) the Mortgagee shall
determine, in its sole discretion, that such restoration can be accomplished on or prior to the maturity date of the Note; and 
 (v) such
proceeds shall be disbursed subject to such other reasonable terms and conditions as the Mortgagee shall require. 
 (b) Nothing contained
herein shall relieve the Mortgagor of its duty to pay all installments of principal and interest and to make all other payments called for or required by the Note subsequent to the occurrence of any fire or other casualty. 
 12. That the Mortgagor shall keep and maintain the exterior and interior of the Mortgaged Property at all times until full payment and discharge hereof,
in as good condition and repair as the same now are or may hereafter be put in, normal wear and tear and damage by casualty excepted, but without making any material alterations thereto unless the consent in writing of the Mortgagee has first been
obtained, which consent shall not be unreasonably withheld, and shall permit the Mortgagee and its officers, agents and servants, to enter upon the Mortgaged Property at all reasonable times upon reasonable prior notice during normal business hours
to view and inspect the same. 
 13. That the Mortgagee may pay all taxes, assessments, water rates or insurance premiums not paid by the
Mortgagor when due, and all of such sums shall be immediately repaid unless otherwise provided and until repaid shall be secured by this Mortgage and shall bear interest at the same rate as provided in the Revolving Note until paid, and, together
with such interest, shall be a further lien upon the Mortgaged Property. 
 14. That in the event the Mortgaged Property or any part thereof
shall be taken or condemned for public or quasi-public purposes by the proper authorities, the Mortgagor shall have no claim against the award for damages superior to that of the Mortgagee, or be entitled to any portion of the award until the
indebtedness secured hereby shall be paid in full. All rights of the Mortgagor to such damages, or such awards, are hereby assigned to the Mortgagee to the extent that any of the indebtedness secured hereby remains unpaid. The Mortgagor, however,
shall have the right to appeal such award, at its own expense, to a court of competent jurisdiction. 
 15. That the term
“Mortgagor” wherever used herein and any pronoun referring thereto shall be construed in the singular, plural, masculine, feminine or neuter in accordance with the manner in which this instrument is executed, and whenever the context
hereof permits, said tern shall be deemed to include his, her, its or their heirs, executors, administrators, successors and assigns. The term “Mortgagee” shall be deemed to include the successors and assigns of the Mortgagee. 

 

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 16.(a) That for the purpose of this Mortgage, the term “Hazardous Materials” shall mean any
“oil”, “hazardous material”, “hazardous wastes” or “hazardous substances” as defined in the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601 et seq., as
amended or in any other federal, state or local law governing the existence, release, generation, storage or disposal of any Hazardous Materials, and the regulations adopted pursuant thereto (collectively, the “Hazardous Waste Laws”), and
shall include, without limitation (whether or not included in the definition contained in said laws), petroleum, solvents, asbestos and other chemicals which would be materially dangerous to the environment or to human beings. 
 (b) That the Mortgagor does hereby warrant and represent to the Mortgagee that the Mortgagor (i) has never released, generated, stored or disposed
of any Hazardous Materials on the Mortgaged Property in violation of any Hazardous Waste Laws, (ii) is not aware of the existence, release or threat of release of any Hazardous Materials on the Mortgaged Property in violation of any Hazardous
Waste Laws except as disclosed in writing to the Mortgagee prior to the date hereof, and (iii) has not received any notice, order, claim or demand from any governmental authority with respect to the existence, release or threat of release of
any Hazardous Materials. 
  

	 	(c)      (i)	That the Mortgagor shall not release, generate or dispose of any Hazardous Materials on the Mortgaged Property or on any properties adjacent to the Mortgaged Property in violation
of any Hazardous Waste Laws; 

  

	 	(ii)	That in the event that any Hazardous Materials are found on the Mortgaged Property, the Mortgagor shall immediately contain and remove the same in compliance with and to the extent
required by all Hazardous Waste Laws; and 

  

	 	(iii)	That in general, the Mortgagor shall ensure that all of its properties and operations, and those of its lessees, are in material compliance with all Hazardous Waste Laws.

 (d) That the Mortgagor agrees to indemnify and hold the Mortgagee harmless from and against any and all claims, liabilities,
costs and expenses incurred by the Mortgagee, including attorneys’ fees and costs of litigation, arising from the release, existence or removal of, whether now or hereafter and whether before or after payment in full of the obligations under
the Loan Documents, any Hazardous Materials on the Mortgaged Property in violation of any Hazardous Waste Laws caused by the Mortgagor. This indemnification shall survive the indebtedness secured hereby, notwithstanding any cancellation or discharge
of this Mortgage. 
 (e) That the Mortgagee, at its election, upon a reasonable belief that there has been a violation of any Hazardous Waste
Laws, and with notice, may at any time and from time to time, whether or not an Event of Default shall exist under the Loan Documents, cause one or more environmental site assessments of the Mortgaged Property to be undertaken. Environmental site

  

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assessments may include a detailed visual inspection of the Mortgaged Property, including, without limitation, all storage areas, storage tanks, drains, dry
wells and leaching areas, as well as the taking of soil samples, surface water samples and ground water samples, and such other investigation or analysis as is necessary or appropriate for a complete assessment of the compliance of the Mortgaged
Property and the use and operation thereof with all Hazardous Waste Laws. If any such environmental site assessment concludes that there has been a violation of any Hazardous Waste Law, then such environmental site assessment shall be at
Mortgagor’s expense. If any such environmental site assessment concludes that there has not been a violation of any Hazardous Waste Law, then such environmental site assessment shall be at Mortgagee’s expense. 
 (f) That the Mortgagee, at its election and in its sole discretion and with notice, may (but shall not be obligated to) cure any failure on the part of
the Mortgagor or any occupant of the Mortgaged Property to comply with the Hazardous Waste Laws, including, without limitation the following: 
  

	 	(i)	arrange for the cleanup or containment of Hazardous Materials found in or on the Mortgaged Property and pay for such cleanup and containment costs and costs associated therewith;

  

	 	(ii)	pay on behalf of the Mortgagor or any occupant of the Mortgaged Property, any fines or penalties imposed on the Mortgagor or any occupant by any federal, state or local governmental
agency or authority in connection with such Hazardous Materials; and 

  

	 	(iii)	make any other payment or perform any other act which may prevent a release of Hazardous Materials, facilitate the cleanup thereof and/or prevent a lien from attaching to the
Mortgaged Property. 

 Any partial exercise by the Mortgagee of the remedies hereinabove set forth or any partial undertaking
on the part of the Mortgagee to cure the failure of the Mortgagor or any occupant of the Mortgaged Property to comply with the Hazardous Waste Laws, shall not obligate the Mortgagee to complete the actions taken or require the Mortgagee to expend
further sums to cure the Mortgagor’s or any such occupant’s noncompliance; neither shall the exercise of any such remedies operate to place upon the Mortgagee any responsibility for the operation, control, care, management or repair of the
Mortgaged Property, or make the Mortgagee the “owner” or “operator” of the Mortgaged Property or a “responsible party” within the meaning of the Hazardous Waste Laws. 
 Any amounts paid or costs incurred by the Mortgagee as a result of any of the above, together with interest thereon at the rate set forth in the Loan
Documents from the date of payment, shall be immediately due and payable by the Mortgagor to the Mortgagee, and until paid shall be added to and become a part of the obligations secured hereby, and the same may be collected as part of said
obligations in any suit herein or upon the Loan Documents or any other instrument included in the collateral or upon a foreclosure of this Mortgage; and the Mortgagee, by making any such payment or incurring any such costs, shall be subrogated to
any rights of the 

  

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Mortgagor or any occupant of the Mortgaged Property to seek reimbursement from any third parties, including, without limitation, a predecessor in interest to
the Mortgagor’s title or a predecessor to the occupant’s use of the Mortgaged Property, who may be a “responsible party” under the Hazardous Waste Laws, in connection with the presence of such Hazardous Materials in, on or near
the Mortgaged Property. 
 PROVIDED, NEVERTHELESS, that if the Mortgagor shall pay to the Mortgagee the principal amount of the
indebtedness secured hereby, together with interest, in the manner and at the time or times specified in the Loan Documents, and shall pay, perform and observe all of the other covenants, agreements and conditions set forth herein and in the Loan
Documents on the part of the Mortgagor to be paid, performed or observed, then this Mortgage shall, subject to Section 16(d) hereof, become and be absolutely void to all intents and purposes whatsoever. 
 BUT IF DEFAULT shall be made in the payment of the indebtedness secured hereby or any part thereof, or of the interest thereon, at the times and
in the manner aforesaid, or of the taxes or assessments aforesaid as the same first become payable, or of any or either of them or of any part thereof, or if breach shall be made in any of the covenants contained in this Mortgage or the Loan
Documents, or upon the occurrence of any event of default as defined in any of the Loan Documents, or if any “notice of responsibility” or “notice of violation” or any similar notice is issued by any governmental authority
against the Mortgagor or the Mortgaged Property under any Hazardous Waste Law and remains unsatisfied for a period of sixty (60) days after the issuance thereof, or such lesser period of time as may be specified in said notice or in any
Hazardous Waste Law (provided, however, if such violation is not curable within such sixty (60) day, or lesser, period and Mortgagor diligently commences to cure such violation within such period, then Mortgagor shall be granted such additional
time as is reasonably necessary to cure such violation, as long as such governmental authority also consents to such additional cure period), or if any lien or claim is filed against the Mortgaged Property under any Hazardous Waste Law (each of the
foregoing herein an “event of default”), then the Mortgagee shall have the following remedies: 
 A. To the extent permitted by law,
the Mortgagee, at its option, without notice, without any liability to the Mortgagor, and without regard to the adequacy of the security for the indebtedness secured hereby, may: 
 (1) exercise the STATUTORY POWER OF SALE pursuant to §34-11-22 of the Rhode Island General Laws, as amended, the teens and provisions of which are
hereby incorporated herein by reference; or 
 (2) enter upon the Mortgaged Property and take possession of the Mortgaged Property; or

 (3) demand and receive payment of all rents, benefits and profits of the Mortgaged Property, including those past due and unpaid (whether
or not the Mortgagee has taken possession of the Mortgaged Property); or 
  

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 (4) foreclose upon the Mortgaged Property and, as a matter of right, have a receiver immediately
appointed for the Mortgaged Property and the earnings, revenues, rents, issues, profits and other income thereof and therefrom, with all such powers as the court making such appointment shall confer; or 
 (5) take any other action permitted under the Loan Documents or by applicable law. 
 B. If the Mortgagee enters upon and takes possession of the Mortgaged Property as provided in paragraph 2 immediately above, the Mortgagee or its assigns
may operate and manage the Mortgaged Property and perform any acts which the Mortgagee reasonably deems necessary or desirable to protect and preserve the rentability or conserve the value of the Mortgaged Property, provided that the Mortgagee shall
act in a commercially reasonable manner in performing any such acts. The Mortgagee shall have no liability for any action or inaction while in possession of the Mortgaged Property so long as such action or inaction is taken or refrained from being
taken in good faith and in the absence of gross negligence. 
 C. Acceptance by the Mortgagee of any payment in an amount less than the amount
then due on the indebtedness secured hereby shall be deemed an acceptance on account only and the failure to pay the entire amount then due shall be and continue to be an event of default hereunder. At any time thereafter and until the entire amount
then due on the indebtedness secured hereby has been paid, the Mortgagee shall be entitled to exercise all rights conferred upon it in this Mortgage upon the occurrence of an event of default. 
 D. No remedy herein conferred upon the Mortgagee shall be exclusive of any other remedy herein, in the Loan Documents or by law provided or permitted, but
such shall be cumulative and in addition to every other remedy given herein or now or hereafter existing at law or in equity. 
 E. The
exercise of any option in this Mortgage by the Mortgagee shall not be deemed a waiver of its rights to exercise any other option; and the filing of a suit for collection of the indebtedness secured hereby shall not preclude sale pursuant to the
power of sale contained in this Mortgage after a dismissal of the suit. 
 F. The Mortgagor agrees, to the extent that it may lawfully so
agree, that if an event of default shall occur hereunder or under the Loan Documents, neither the Mortgagor nor anyone claiming through or under the Mortgagor shall or will set up, seek or claim to take advantage of any extension, redemption,
moratorium or marshalling laws now or hereafter in force in the locality where the Mortgaged Property may be situated, in order to prevent or hinder the enforcement or foreclosure of this Mortgage, or the absolute sale of the Mortgaged Property, or
the final or absolute putting into possession thereof, immediately after such sale, of the purchaser thereof, and the Mortgagor hereby waives, to the full extent that it may lawfully do so, the benefit of all such laws and any and all right to have
the estates comprised in the security intended to be created hereby marshalled upon any foreclosure of the lien hereof. 
  

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 It is the intent of the parties hereto that this Mortgage shall also constitute a Security Agreement
within the meaning of the Uniform Commercial Code as in effect in the State of Rhode Island (the “Uniform Commercial Code”) with respect to all Personal Property and Fixtures above referred to and all replacements thereof, substitutions
therefor or additions thereto (said property being sometimes hereinafter referred to as the “Collateral”), and that a security interest shall attach thereto for the benefit of the Mortgagee to secure the indebtedness evidenced by the Note
and secured by this Mortgage, and all other sums and charges which may become due hereunder or thereunder. The Mortgagor hereby authorizes the Mortgagee to file financing and continuation statements with respect to the Collateral without the
signature of Mortgagor whenever lawful. Upon the occurrence of an Event of Default and to the extent permitted by law, the Mortgagee shall have the option of proceeding as to both real and personal property in accordance with its rights and remedies
in respect of the real property, in which event the default provisions of the Uniform Commercial Code shall not apply. The parties agree that in the event the Mortgagee elects to proceed with respect to the Collateral separately from the real
property, ten (10) days’ notice of the sale of the Collateral shall be sufficient notice. The Mortgagor agrees that, without the written consent of the Mortgagee, the Mortgagor will not remove or permit to be removed from the Premises or
the Improvements thereon any of the Collateral unless the same is immediately replaced with unencumbered fixtures or articles of personal property, as the case may be, of a quality and value equal or superior to those which they replace. All such
replacements, renewals and additions shall become and be immediately subject to the security interest of this Mortgage and this agreement and be covered thereby. The Mortgagor shall, from time to time, on request of the Mortgagee, deliver to the
Mortgagee an inventory of the Collateral in detail, including an itemization of all items leased to the Mortgagor or subject to a conditional bill of sale, security agreement or other title retention agreement. 
 In case any one or more of the provisions contained in this Mortgage shall for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provision hereof, but each shall be construed as if such invalid, illegal or unenforceable provision had never been included. 
 The rights and obligations hereunder shall be governed by the laws of the State of Rhode Island. In the event that any provision or clause of this
Mortgage or the Note secured hereby conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage or said Note which can be given effect without the conflicting provision, and to this end the provisions of this
Mortgage and said Note are declared to be severable. 
 All notices, requests, demands, consents or other communications given hereunder or
in connection herewith (including any notice to the Mortgagee pursuant to Sections 34-25-10(b) and 34-25-11 of the Rhode Island General Laws, as amended) (collectively the “Notice”) shall be in writing and shall be sent by registered or
certified mail, return receipt requested, postage prepaid, addressed to the party to receive such Notice at its address set forth above. Either party may, by Notice given as aforesaid, change its address for all subsequent Notice. Any Notice by or
in behalf of the Mortgagee herein named shall be deemed sufficient if signed by any one of its directors, officers or counsel and if otherwise given or made in compliance with this paragraph. 
  

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 IN WITNESS WHEREOF, this Mortgage has been executed this 21st day of December, 2006. 

 

							
	 WITNESS
	 		 	Faith Realty, LLC
				
	 /s/ Steven Rosenbaum
	 		 	By:	 	 /s/ Jason P. Macari

		 		 	Name:	 	Jason P. Macari
		 		 	Title	 	Member

 STATE OF RHODE ISLAND 
 COUNTY OF PROVIDENCE 
 In Providence in said county on the 21st day of December, 2006, before me personally appeared Jason Macari,
to me known and known by me to be the Member of Faith Realty, LLC and the party executing the foregoing instrument and he/she acknowledged said instrument by him/her executed to be his/her free act and deed and the free act and deed of said Faith
Realty, LLC. 
  

	
	 /s/ Steven Rosenbaum

	 Notary Public STEVEN ROSENBAUM

	 My Commission Expires: 7/22/09

  

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