Document:

loanagreementwithpurhold

Execution Version   77353721v.8  LOAN AGREEMENT  This Loan Agreement, dated as of December 30, 2021, is by and between Strategic Realty  Trust, Inc., a Maryland corporation (the “Borrower”), and PUR Holdings Lender, LLC, a Delaware  limited liability company (the “Lender”).   R E C I T A L S:  WHEREAS, the Borrower has requested that the Lender make a loan facility available to  the Borrower, the proceeds of which will be used by the Borrower for working capital and other  general corporate purposes other than the acquisition of any real property.  WHEREAS, it is a condition precedent to the obligation of the Lender to make the Loans  that the Borrower shall have executed and delivered this Agreement; and  WHEREAS, the Borrower desires to execute this Agreement to satisfy the condition  described in the preceding paragraph and to induce the Lender to make the Loans, and the Lender  desires to make the Loans to the Borrower only on the terms and subject to the conditions set forth  herein and in the other Loan Documents.  NOW, THEREFORE, in consideration of the mutual covenants and undertakings herein  contained, and for other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, the parties hereto hereby agree as follows:  ARTICLE I  DEFINITIONS  As used in this Agreement, the following terms shall have the meanings set forth below:   “Agreement” means this Loan Agreement as from time to time amended, supplemented,  restated or otherwise modified and in effect.  “Borrower” has the meaning set forth in the introduction hereto.   “Business Day” means a day (other than a Saturday or Sunday) on which banks generally  are open in Chicago, Illinois for the conduct of substantially all of their commercial lending  activities.  “Contractual Obligation” means, as applied to any Person, any indenture, mortgage, deed  of trust, contract, undertaking, document, instrument or other agreement or instrument to which  that Person is a party or by which it or any of its properties is bound, or to which it or any of its  properties is subject (including, without limitation, any restrictive covenant affecting such Person  or any of its properties).  “Event of Default” has the meaning set forth in Section 6.01.  

 

2  77353721v.8  “Excluded Taxes” is defined in Section 2.06.  “GAAP” means generally accepted accounting principles as in effect from time to time in  the United States of America, as set forth in the opinions and pronouncements of the Accounting  Principles Board and the American Institute of Certified Public Accountants and statements and  pronouncements of the Financial Accounting Standards Board, or in such other statements by such  other entities as may be in general use by significant segments of the accounting profession, which  are applicable to the circumstances as of the date of determination.  “Governmental Authority” shall mean any nation or government, any federal, state, local  or other political subdivision thereof and any entity exercising executive, legislative, judicial,  regulatory or administrative functions of or pertaining to government.  “Indebtedness” of any Person means (a) all obligations of such Person for borrowed  money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar  instruments, (c) all obligations of such Person (other than in the nature of trade accounts payable)  under conditional sale or other title retention agreements relating to property or assets purchased  by such Person, (d) all obligations of such Person issued or assumed as the deferred purchase price  of property or services (excluding trade accounts payable), (e) all Indebtedness of others secured  by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to  be secured by) any Lien on property owned or acquired by such Person, whether or not the  obligations secured thereby have been assumed, (f) all guarantees by such Person of Indebtedness  of others; provided, that the Indebtedness attributed to such Person as a result of a guarantee by  such Person of the Indebtedness of others shall not exceed the then outstanding Indebtedness  subject to such guarantee, (g) all obligations of such Person as an account party in respect of letters  of credit and bankers’ acceptances, and (h) the obligations of such Person to pay rent or other  amounts under any lease of (or other arrangement conveying the right to use) real or personal  property, or a combination thereof, which obligations are required to be accounted for as capital  leases on a balance sheet of such Person under GAAP.  “Lender” means PUR Holdings Lender, LLC, a Delaware limited liability company, and  its successors and permitted assigns.  “Lien” means any judgment lien or execution, attachment, levy, distraint or similar legal  process and any mortgage, pledge, security interest, encumbrance, lien, charge or deposit  arrangement (other than a deposit in the ordinary course of business and not intended as security)  of any kind (including, without limitation, any conditional sale or other title retention agreement  or lease in the nature thereof, any sale of receivables with recourse (in whole or in part) against  the seller or any other Person except the account debtors, any filing or agreement to file a financing  statement as debtor under the Uniform Commercial Code of the State of Illinois or any similar  statute other than to reflect ownership by a third party of property leased to a Person under a lease  which is not in the nature of a conditional sale or title retention agreement, or any subordination  arrangement in favor of another Person).   “Loan” and “Loans” means each direct advance and the aggregate of all such direct  advances made by the Lender to the Borrower under and pursuant to this Agreement, as set forth  in Section 2.01 of this Agreement which Loans shall not exceed the Loan Commitment.  

 

3  77353721v.8  “Loan Commitment” shall mean Four Million and 00/100 Dollars ($4,000,000.00).   “Loan Documents” means this Agreement, the Note , and any and all other documents or  agreements contemplated hereby or thereby, as the same may be amended, supplemented, restated  or otherwise modified from time to time and in effect.  “Material Adverse Effect” means, as to any Person, a material adverse effect on the  business, properties, assets, operations or financial condition of such Person, or an event that would  materially adversely affect the ability of such Person to perform its obligation under this  Agreement and the other Loan Documents to which such Person is a party.  “Maturity Date” means December 30, 2022.  “Net Cash Proceeds” means the aggregate cash proceeds (including cash proceeds received  pursuant to policies of insurance or by way of deferred payment of principal pursuant to a note,  installment receivable or otherwise, but only as and when received) received by Borrower pursuant  to such Property Disposition net of (i) the direct costs relating to such sale (including transfer taxes,  sales commissions, and legal, accounting, and investment banking fees), (ii) any portion of such  proceeds deposited in an escrow account pursuant to the documentation related to such Property  Disposition (provided that such amounts shall be treated as Net Cash Proceeds upon the release  from such escrow account), and (iii) amounts required to be applied to the repayment of any  Indebtedness secured by a Lien on the real property subject to such Property Disposition.  “Non-Excluded Taxes” is defined in Section 2.06.  “Note” is defined in Section 2.02.  “Obligations” means all unpaid principal of and accrued and unpaid interest on each Loan,  all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations  of the Borrower to the Lender or any indemnified party hereunder or under any other Loan  Document, in each case, arising under any of the Loan Documents.   “Person” means any natural person, corporation, firm, joint venture, partnership, limited  liability company, association, enterprise, trust or other entity or organization, or any government  or political subdivision or any agency, department or instrumentality thereof.  “Property Disposition” means the sale by Borrower to any Person of any real property  owned, in whole or in part, by Borrower.   “Unmatured Event” means an event which, but for the giving of notice and passage of  time, would constitute an Event of Default.  The foregoing definitions shall be equally applicable to both the singular and plural forms  of the defined terms.  The words “herein,” “hereof” and words of similar import as used in this  Agreement shall refer to this Agreement as a whole and not to any particular provision in this  Agreement.  References to “Articles,” “Sections,” “subsections,” “paragraphs,” “Exhibits” and  “Schedules” in this Agreement shall refer to Sections, subsections, paragraphs, Exhibits and  Schedules of this Agreement unless otherwise expressly provided; references to Persons include  

 

4  77353721v.8  their respective permitted successors and assigns or, in the case of governmental Persons, Persons  succeeding to the relevant functions of such persons; and all references to statutes and related  regulations shall include any amendments of same and any successor statutes and regulations.  ARTICLE II  LOAN TERMS  2.01 Loans.    (a) Subject to the satisfaction in full of the terms and conditions set forth in this  Agreement, the Lender agrees to make Loans at such times as the Borrower may from time to time  request until, but not including, the Maturity Date, and in such amounts as the Borrower may from  time to time request pursuant to the terms of this Agreement, provided, however, that the aggregate  principal balance of all Loans outstanding or otherwise repaid at any time shall not exceed the  Loan Commitment. Loans made by the Lender and repaid by the Borrower may not be borrowed  again.  The Loans shall be used by the Borrower for working capital and other general corporate  purposes other than the acquisition of any real property. It is acknowledged and agreed by the  Lender and the Borrower that the obligations of the Borrower hereunder are full-recourse  obligations of the Borrower.     (b) Borrowing Procedures.   Each Loan shall be made available to the Borrower,  subject to the terms and conditions set forth in this Agreement, not later than five (5) business days  after any written loan request (including e-mail) from an authorized representative of the  Borrower.  Each such request shall be effective upon receipt by the Lender, shall be irrevocable,  and shall specify the date and amount of borrowing. Each request for a Loan must be (i) received  by the Lender no later than 11:00 a.m. Central time, five Business Days before the day it is to be  funded, and (ii) in an amount no less than Two Hundred Fifty Thousand and 00/100 Dollars  ($250,000.00).  The proceeds of each Loan shall be made available at the office of the Lender by  any means requested by the Borrower and acceptable to the Lender.  The Borrower does hereby  irrevocably confirm, ratify and approve all such advances by the Lender.  2.02 Note.  The Loans made to the Borrower, and the Borrower’s obligation to repay the  Loans, shall be evidenced by a Note in the form attached hereto as Exhibit A issued by the  Borrower to the Lender (as amended, restated or supplemented from time to time, the “Note”),  which shall provide, among other things, that (a) such Note shall mature, and the outstanding  principal amount thereof and the unpaid accrued interest thereon shall be due and payable, on the  Maturity Date, and (b) the Borrower shall pay interest on the unpaid principal amount of the Loans  from the date of the Loans until paid in full, payable to the Lender, in the manner specified by  Section 2.03 of this Agreement.  2.03 Interest.  (a)  The Borrower promises to pay interest to the Lender on the  outstanding principal amount of the Loans (and on any accrued interest not paid at the time  required by this Agreement) until the Loans are paid in full, payable to the Lender at the interest  rate specified in this Section 2.03(a).  The Loans shall bear interest from the funding date thereof  until paid in full at a rate equal to 7% per annum, compounded on a monthly basis.   

 

5  77353721v.8  (b) During the continuance of an Event of Default, upon written demand from Lender  to Borrower (or automatically during the continuance of an Event of Default pursuant to Section  6.01(g)), the Loans shall bear interest at a rate equal to 12% per annum, compounded on a monthly  basis, or the maximum default interest rate if a lower rate is required by applicable law; provided  however, that such increased rate shall automatically and without action of any kind by the Lender  be rescinded at such time as the Event of Default causing such increased rate is cured or waived  by the Lender.  (c) Interest shall be payable in arrears (i) on the date of any prepayment (on the amount  prepaid), (ii) on the Maturity Date, (iii) on the date of any acceleration of the Loans, and (iv) on  demand during the existence of an Event of Default.    (d) Interest on the Loans and any fees shall be calculated on the basis of a 360 day year  and paid for actual days elapsed.  2.04 Payment of Principal.  Unless sooner paid in full due to early termination or  otherwise, the outstanding principal balance of the Loans (along with all other outstanding  Obligations at such time, including all accrued interest) shall be paid in full on the Maturity Date.  Notwithstanding anything to the contrary contained herein, accrued interest and/or principal  balance of the Loans may be prepaid, in whole or in part, at any time by the Borrower without  premium or penalty.       2.05 Mandatory Prepayment Event. Notwithstanding anything contained to the contrary  herein, within five (5) Business Days of receipt by the Borrower of any Net Cash Proceeds from  any Property Disposition, the Borrower shall make a prepayment of the then outstanding Loans  (until paid in full), in an amount equal to 100% of such Net Cash Proceeds.  2.06 Method of Payment. All payments of the Obligations hereunder shall first apply to  outstanding interest and then principal and shall be made, without deduction or counterclaim, in  immediately available funds to the Lender at its address set forth on the signature page hereto by  1:00 p.m. (Chicago time) on the date when due.      2.07 Taxes.  Any payments made by the Borrower to the Lender under this Agreement  shall be made free and clear of, and without deduction or withholding for or on account of, any  present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or  withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any  Governmental Authority, excluding net income taxes and franchise taxes or any other tax based  upon any income imposed on the Lender by the jurisdiction in which the Lender is incorporated  or has its principal place of business (“Excluded Taxes”).  If any such non-excluded taxes, levies,  imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded Taxes”) are required  to be withheld from any amounts payable to the Lender hereunder, the amounts so payable to the  Lender shall be increased to the extent necessary to yield to the Lender (after payment of all Non- Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in the  amounts specified in or pursuant to this Agreement.  Whenever any Non-Excluded Taxes are  payable by the Borrower, as promptly as practicable thereafter the Borrower shall send to the  Lender a certified copy of an original official receipt received by the Borrower showing payment  thereof.  If the Borrower fails to pay any Non-Excluded Taxes when due to the appropriate taxing  

 

6  77353721v.8  authority or fails to remit to the Lender the required receipts or other required documentary  evidence, the Borrower shall indemnify the Lender for any incremental taxes, interest or penalties  that may become payable by the Lender as a result of any such failure.  The agreements in this  Section 2.07 shall survive the termination of this Agreement and the payment of all other  Obligations hereunder.  2.08 Exit Fee.  In addition to any other fees payable hereunder, on the earlier of the  Maturity Date and the date the Obligations are paid in full (by early termination, repayment, or  otherwise), the Borrower shall pay to Lender a fee equal to 0.5% of the total aggregate amount of  Loans drawn under this Agreement up to such date (regardless of whether such Loans have been  repaid). Such fee shall be earned and due and payable in full by the Borrower on the earlier of the  Maturity Date and the date the Obligations are paid in full.    ARTICLE III  CONDITIONS PRECEDENT  3.01 Conditions to Loan.  The obligation of the Lender to make the Loans to the  Borrower shall be subject to the fulfillment of each of the following conditions precedent and/or  receipt by the Lender of (each such document to be in form and substance reasonably satisfactory  to the Lender and its counsel): (a) Agreement.  An executed counterpart of this Agreement, together with all  schedules, exhibits, certificates, instruments, documents and financial statements required to be  delivered pursuant hereto.  (b) Note.  An executed counterpart of the Note evidencing the Loans and payable to  the order of the Lender, in form and substance reasonably acceptable to the Lender.  (c) Certificate - Borrower.  A certificate signed by an authorized officer of the  Borrower, which certificate shall include an officer incumbency certification, good standing  certificate, and complete copies of the articles of incorporation and bylaws of the Borrower shall  be attached thereto. (d) Other Documents.  Such other documents as the Lender or its counsel may  reasonably request. (e) Representations and Warranties.  All representations and warranties of the  Borrower under this Agreement and the other Loan Documents shall be true and correct in all  respects.  (f) No Events of Default.  There shall exist no Event of Default or Unmatured Event.  (g) Expenses and Closing Fee.  The Borrower shall have paid and/or reimbursed all  invoiced fees, costs and expenses owed to the Lender pursuant to this Agreement, and the  Borrower shall have paid to the Lender a one-time $20,000 closing fee.  

 

7  77353721v.8  ARTICLE IV  REPRESENTATIONS AND WARRANTIES OF THE BORROWER  4.01 Representations and Warranties of the Borrower.  The Borrower represents and  warrants to the Lender as follows (each of which representations and warranties shall be true and  correct on the date hereof and remain true and correct in all material respects after the date hereof  until payment in full of the Obligations):  (a) Each Loan Document to which the Borrower is a party has been duly executed and  delivered by the Borrower and constitutes the legal, valid, binding and enforceable obligation of  such Person.  (b) The execution and delivery of, and performance by the Borrower of its obligations  under, each Loan Document to which it is a party will not result in a breach or violation of, conflict  with, or constitute a default under any Contractual Obligation of such Person, and will not result  in, or require the creation or imposition of, any Lien on any of such Person’s properties pursuant  to any Contractual Obligation.  (c) To the knowledge of the Borrower, no actions, proceedings or claims are pending  or threatened against the Borrower which purport to affect the legality, validity or enforceability  of any Loan Document, to which such Person is a party or which could reasonably be expected to  have a Material Adverse Effect on the financial condition of such Person.    (d) No Event of Default or Unmatured Event exists or would result from the incurrence  by Borrower of any of the Obligations hereunder and Borrower is not in default (without regard to  grace or cure periods) under any other contract or agreement to which it is a party, the effect of  which would have a Material Adverse Effect upon Borrower.    (e) The exact legal name of the Borrower is as set forth in the signature page to this  Agreement.  (f) Borrower has timely filed all tax returns and reports required by law to have been  filed by it and has paid all taxes, governmental charges and assessments due and payable with  respect to such returns, except any such taxes or charges which are being diligently contested in  good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP  shall have been set aside on its books.  (g) (i) The fair value of the Borrower’s assets are greater than the amount of its  liabilities (including disputed, contingent and unliquidated liabilities) as such value is established  and liabilities evaluated as required under the Section 548 of the United States Bankruptcy Code,  (ii) the Borrower is able to realize upon its assets and pay its debts and other liabilities (including  disputed, contingent and unliquidated liabilities) as they mature in the normal course of business,  and (iii) the Borrower does not intend to, and does not believe it will, incur debts or liabilities  beyond its ability to pay as such debts and liabilities mature.  

 

8  77353721v.8  (h) This Agreement and all other Loan Documents, financial statements, schedules,  certificates, confirmations, and other materials and information heretofore or contemporaneously  herewith furnished in writing by Borrower to Lender for purposes of, or in connection with, this  Agreement and the transactions contemplated hereby are, and all written information hereafter  furnished by or on behalf of Borrower to Lender pursuant hereto or in connection herewith will  be, true and accurate in every material respect on the date as of which such information is dated or  certified, and none of such information is or will be incomplete by omitting to state any material  fact necessary to make such information not misleading in light of the circumstances under which  made.  (i) Neither Borrower nor, to the knowledge of Borrower, any director, officer,  employee, agent or affiliate of Borrower, is a Person that is, or is owned  or controlled by Persons  that are:  (i) the subject of any sanctions administered or enforced by the U.S. Department of the  Treasury’s Office of Foreign Assets Control, the U.S. Department of State,  the United Nations  Security Council, the European Union, or other relevant sanctions authority (collectively,  “Sanctions”), or (ii) located, organized or resident in a country or territory that is, or whose  government is, the subject of Sanctions (including, without limitation, currently, Crimea, Cuba,  Iran, North Korea, Sudan and Syria).  ARTICLE V  COVENANTS OF THE BORROWER  5.01 Until the payment in full of the Obligations, the Borrower shall comply with the  following requirements:  (a) Borrower Financial Information.  Borrower shall from time to time furnish to  Lender such information and reports of Borrower’s financial condition as Lender may reasonably  request.  (b) Notice of Event of Default.  Promptly upon the Borrower becoming aware of the  occurrence of an Event of Default, the Borrower shall provide written notice thereof to the Lender.   ARTICLE VI   EVENTS OF DEFAULT  6.01 Events of Default.  Each of the following events shall constitute an “Event of  Default”:  (a) The Borrower shall fail to pay any amount of principal on the Loans when due, or  the Borrower shall fail to pay any amount of interest on, or other amount due under, the Loans or  the Loan Documents when due and such failure to pay shall continue for five (5) Business Days.  

 

9  77353721v.8  (b) Any representation or warranty made by or on behalf of the Borrower to the Lender  under or in connection with this Agreement or any other Loan Document shall prove to have been  incorrect in any material respect when made.  (c) The Borrower shall fail to perform or observe any other term, covenant or  agreement contained in this Agreement or any other Loan Document on its part to be performed  or observed if the failure to perform or observe such other term, covenant or agreement shall  remain unremedied for twenty (20) days after the earlier to occur of (x) Borrower’s actual  knowledge of such failure or (y) written notice thereof shall have been given to the Borrower by  the Lender.  (d) The Borrower shall become insolvent, generally fail to pay, or state in writing or  publicly such Person’s inability or unwillingness to pay, such Person’s debts as they become due  or call a meeting of creditors for the purpose of adjusting such Person’s debts; or the Borrower  shall become insolvent or shall voluntarily commence any proceeding or file any petition under  any bankruptcy, insolvency or similar law seeking dissolution or reorganization or the appointment  of a receiver, trustee, custodian or liquidator for such Person or a substantial portion of such  Person’s property, assets or business, or to effect a plan or other arrangement with such Person’s  creditors, or shall file any answer admitting the jurisdiction of the court and the material allegations  of an involuntary petition filed against such Person in any bankruptcy, insolvency or similar  proceeding, or shall be adjudicated bankrupt, or shall make a general assignment for the benefit of  creditors, or shall consent to, or acquiesce in the appointment of, a receiver, trustee, custodian or  liquidator for a substantial portion of such Person’s property, assets or business.  (e) Involuntary proceedings or an involuntary petition shall be commenced or filed  against the Borrower under any bankruptcy, insolvency or similar law or seeking the dissolution  or reorganization of such Person or the appointment of a receiver, trustee, custodian or liquidator  for such Person or of a substantial part of such Person’s property, assets or business, or any writ,  judgment, warrant of attachment, execution or similar process shall be issued or levied against a  substantial part of such Person’s property, assets or business, and such proceedings or petition  shall not be dismissed, or such writ, judgment, warrant of attachment, execution or similar process  shall not be released, vacated or fully bonded, within sixty (60) days after commencement, filing  or levy, as the case may be, or any order for relief shall be entered in any such proceeding.  (f) Any Loan Document executed by the Borrower shall fail to remain in full force and  effect in any material respect (other than as a result of the action or inaction of the Lender) or the  Borrower shall file a judicial proceeding adverse to the Lender to discontinue or to assert the  invalidity or unenforceability thereof, or the Borrower denies in writing that the Borrower has any  further liability hereunder, or gives notice to such effect.  (g) Any termination or non-renewal of that certain Advisory Agreement between the  Borrower and SRT Advisor, LLC, a Delaware limited liability company dated August 10, 2013  (“Advisory Agreement”) other than for cause pursuant to the terms of the Advisory Agreement.  (h) Any default by Borrower in the payment of any Indebtedness for any other  obligation beyond any period of grace provided with respect thereto or in the performance of any  other term, condition or covenant contained in any agreement under which any such obligation is  

 

10  77353721v.8  created, the effect of which default is to cause such obligation to become due prior to its stated  maturity.  If any Event of Default occurs and is continuing, the Lender may take one or more  of the following actions: (A) declare the Lender’s commitments hereunder terminated, whereupon  the same shall terminate immediately, and all Obligations, fees and other amounts accrued in  accordance with this Agreement shall forthwith become due and payable without any other notice  of any kind; (B) declare all of the Obligations and other sums then owing by the Borrower  hereunder or any other Loan Document to be forthwith due and payable, whereupon all such sums  shall become and be immediately due and payable without presentment, demand, protest or notice  of any kind, all of which are hereby expressly waived by the Borrower; and (C) exercise all rights  and remedies available to it under the Loan Documents or applicable law; provided, however, that  if an Event of Default specified in paragraph (h) or (i) of this Section shall occur, the result which  would occur upon the giving of notice by the Lender, as specified in clauses (A) or (B) above,  shall occur automatically without the giving of any such notice.  Promptly following the making  of any such declaration, the Lender shall give notice thereof to the Borrower, but failure to notify  the Borrower shall not impair the effect of such declaration.    ARTICLE VII  GENERAL PROVISIONS  7.01 Amendments.  No amendment, waiver, modification or supplement of any  provision of this Agreement shall be effective without the written consent of the Borrower and the  Lender.  7.02 Preservation of Rights.  No delay or omission of the Lender to exercise any right  under the Loan Documents shall impair such right or be construed to be a waiver of any Event of  Default or an acquiescence therein.  Any single or partial exercise of any such right shall not  preclude other or further exercise thereof or the exercise of any other right, and no waiver,  amendment or other variation of the terms, conditions or provisions of the Loan Documents  whatsoever shall be valid unless in writing signed by the Lender as required pursuant to Section  7.01, and then only to the extent in such writing specifically set forth.  All remedies contained in  the Loan Documents or by law afforded shall be cumulative and all shall be available to the Lender  until the Obligations have been paid in full.  7.03 Survival of Representations.  All representations and warranties of the Borrower  contained in this Agreement or any other Loan Document shall survive delivery of such Loan  Documents and the making of the Loans.  The representations and warranties of the Borrower  under this Agreement shall expire upon the payment in full of the Obligations under this  Agreement and each other Loan Document.  7.04 Taxes.  Any stamp, documentary or similar taxes, assessments or charges payable  or ruled payable by any Governmental Authority in respect of the Loan Documents (other than  any Excluded Taxes) shall be paid by the Borrower, together with interest and penalties, if any.  

 

11  77353721v.8  7.05 Headings.  Section headings in the Loan Documents are for convenience of  reference only, and shall not govern the interpretation of any of the provisions of the Loan  Documents.  7.06 Entire Agreement.  The Loan Documents embody the entire agreement and  understanding between the Borrower and the Lender and supersede all prior agreements and  understandings between the Borrower and the Lender relating to the subject matter hereof and  thereof.  7.07 Benefits of this Agreement.  This Agreement shall not be construed so as to confer  any right or benefit upon any Person other than the parties to this Agreement and their respective  successors and assigns.  7.08 Expenses; Indemnification.  The Borrower shall reimburse the Lender for any  reasonable and documented costs and out-of-pocket expenses (including the reasonable fees and  expenses of outside legal counsel for the Lender) paid or incurred by the Lender in connection  with the preparation, negotiation, execution, delivery, review, amendment and modification of the  Loan Documents.  The Borrower also agrees to reimburse the Lender for any reasonable and  documented out-of-pocket costs and expenses (including the reasonable fees and expenses of  outside legal counsel for the Lender) paid or incurred by the Lender in connection with the  collection and enforcement of the Loans and Loan Documents.  The Borrower further agrees to  indemnify the Lender, its directors, officers and employees (each an “Indemnified Party”) against  all actual losses, claims, damages, penalties, judgments, liabilities and expenses (including,  without limitation, all expenses of litigation or preparation therefor whether or not the Lender is a  party thereto) (collectively, “Losses”) which any Indemnified Party may pay or incur and which  arise as a result of a breach by the Borrower of any representation or warranty made by the  Borrower under any Loan Document other than Losses which were the result of acts or omissions  on the part of the Lender constituting gross negligence or willful misconduct as determined by a  judgment of a court that is binding on the Lender.   7.09 Accounting.  Except as provided to the contrary herein, all accounting terms used  herein shall be interpreted and all accounting determinations hereunder shall be made in  accordance with GAAP.  7.10 Severability of Provisions.  Any provision in any Loan Document that is held to be  inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be  inoperative, unenforceable, or invalid without affecting the remaining provisions in that  jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction,  and to this end the provisions of all Loan Documents are declared to be severable.  7.11 Nonliability of Lender.  The relationship between the Borrower and the Lender  shall be solely that of borrower and lender.  The Lender shall not have any fiduciary responsibilities  to the Borrower.  The Borrower shall rely entirely upon its own judgment with respect to its  business, and any review, inspection or supervision of, or information supplied to the Borrower by  the Lender is for the protection of the Lender and neither the Borrower nor any other Person is  entitled to rely thereon.  The Borrower agrees that the Lender shall have no liability to any such  Person (whether sounding in tort, contract or otherwise) for Losses suffered by any such Person in  

 

12  77353721v.8  connection with, arising out of, or in any way related to, the transactions contemplated and the  relationship established by the Loan Documents, or any act, omission or event occurring in  connection therewith, unless it is determined by a judgment of a court that is binding on the Lender,  that such Losses were the result of acts or omissions on the part of the Lender constituting gross  negligence or willful misconduct of the party from which recovery is sought.  Whether or not such  damages are related to a claim that is subject to the waiver effected above and whether or not such  waiver is effective, the Lender shall not have any liability with respect to, and the Borrower hereby  waives, releases and agrees not to sue for, any special, indirect or consequential damages suffered  by the Borrower in connection with, arising out of, or in any way related to the Loan Documents  or the transactions contemplated thereby or the relationship established by the Loan Documents,  or any act, omission or event occurring in connection therewith.  7.12 Governing Law.  This Agreement shall be delivered and accepted in and shall be  deemed to be a contract made under and governed by the internal laws of the State of Illinois  applicable to contracts made and to be performed entirely within such state, without regard to  conflict of laws principles.  7.13 FORUM SELECTION AND CONSENT TO JURISDICTION.  ANY  LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION  WITH THIS AGREEMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN  THE COURTS OF THE STATE OF ILLINOIS OR IN THE UNITED STATES DISTRICT  COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN  THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE LENDER  FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER  JURISDICTION.  THE BORROWER EXPRESSLY AND IRREVOCABLY SUBMITS TO THE  JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE UNITED  STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE  PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE.  THE BORROWER  FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY  REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR  WITHOUT THE STATE OF ILLINOIS.  THE BORROWER HEREBY EXPRESSLY AND  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY  OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE  OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE  AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN  INCONVENIENT FORUM.  7.14 WAIVER OF JURY TRIAL.  EACH PARTY HERETO, AFTER CONSULTING  OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, KNOWINGLY,  VOLUNTARILY AND INTENTIONALLY WAIVES IRREVOCABLY, ANY RIGHT TO A  TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY  RIGHTS UNDER THIS AGREEMENT, OR ANY AMENDMENT, INSTRUMENT,  DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE  DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY RELATIONSHIP  EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, OR ANY COURSE OF  CONDUCT OR COURSE OF DEALING IN WHICH THE BORROWER AND THE LENDER  ARE ADVERSE PARTIES, AND EACH AGREES THAT ANY SUCH ACTION OR  

 

13  77353721v.8  PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THIS  PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDER GRANTING ANY  FINANCIAL ACCOMMODATION TO THE BORROWER UNDER THIS AGREEMENT.  7.15 Counterparts.  This Agreement may be executed in any number of counterparts, all  of which taken together shall constitute one agreement, and any of the parties hereto may execute  this Agreement by signing any such counterpart.  This Agreement shall be effective when it has  been executed by the Borrower and the Lender.  7.16 Notices.  All notices, requests, demands and other communications provided for  hereunder shall be in writing and addressed as follows:  To the Borrower:  With a copy to:  Matthew Schreiber  550 W. Adams Street  Suite 200  Chicago, IL 60661   Ginsberg Jacobs LLC  300 S. Wacker Drive, Suite 2750  Chicago, IL 60606  Attention: David A. Lapins  To the Lender: Domenic Lanni   550 W. Adams Street  Suite 200  Chicago, IL 60661  With copy to: Seyfarth Shaw LLP  233 S. Wacker Drive, Suite 8000  Chicago, Illinois  60606  Attention:  Joel D. Rubin  or, as to each party, at such other address as shall be designated by such party in a written notice  to each other party complying as to delivery with the terms of this subsection.  All notices  addressed as above shall be deemed to have been properly given (i) if served in person, upon  acceptance or refusal of delivery; (ii) if sent by facsimile, upon receipt by the sender of a facsimile  confirmation or some other evidence that the recipient has received such notice; (iii) if mailed by  certified or registered mail, return receipt requested, postage prepaid, on the third (3rd) day  following the day such notice is deposited in any post office station or letter box; or (iv) if sent by  recognized overnight courier, on the first (1st) day following the day such notice is delivered to  such carrier.  No notice to or demand on the Borrower in any case shall entitle the Borrower to any  other or further notice or demand in similar or other circumstances.    7.17 Successors and Assigns.  This Agreement shall be binding upon and inure to the  benefit of the Borrower and the Lender and their respective estates, successors and assigns, except  that the Borrower may not transfer or assign any of its rights or interest hereunder without the prior  

 

14  77353721v.8  written consent of the Lender.  The Lender may from time to time (i) grant participations in its  rights hereunder in whole or in part, and (ii) after the occurrence and during the continuance of an  Event of Default, assign its rights hereunder in whole or in part.  7.18 Setoff.  In addition to, and without limitation of, any rights of the Lender under  applicable law, if any Event of Default occurs, any and all deposits (including all account balances,  whether provisional or final and whether or not collected or available) and any other Indebtedness  at any time held or owing by the Lender to or for the credit or account of the Borrower may be  offset and applied toward the payment of the Obligations owing to the Lender, whether or not the  Obligations, or any part hereof, shall then be due.  [SIGNATURE PAGE FOLLOWS]  

 

 

 

16  Error! Unknown document property name. 77353721v.8  Exhibit A  PROMISSORY NOTE  $4,000,000 [________, 2021]  Chicago, Illinois  1. Promise to Pay.  FOR VALUE RECEIVED, Strategic Realty Trust, Inc., a  Maryland corporation (the “Borrower”), hereby promises to pay to the order of PUR Holdings  Lender, LLC, a Delaware limited liability company (the “Lender”), the principal amount of  $4,000,000 (Four Million Dollars), or such lesser amount as may be advanced, to the Borrower by  the Lender pursuant to the Loan Agreement referred to below, together with interest thereon and  all other Obligations arising under the Loan Agreement.  2. Interest and Principal.  Interest on the principal amount shall be computed and paid  in accordance with the terms of the Loan Agreement.  The principal amount shall be due and  payable in accordance with the Loan Agreement.  This Note may be prepaid in whole or in part at  any time from time to time without penalty, except as provided in the Loan Agreement.  All  payments hereunder shall be applied in the order of priority set forth in the Loan Agreement.  3. Loan Agreement.  This Note evidences the Loans incurred under, and payment  hereof may be accelerated as provided in, that certain Loan Agreement dated as of the date hereof  (as amended, restated, modified or supplemented from time to time and in effect, the “Loan  Agreement”), by and among the Borrower and the Lender.  Reference is hereby made for a  statement of the terms and provisions under which this Note may or must be paid prior to its due  date or its due date accelerated.  Terms not otherwise defined herein are used herein as defined in  the Loan Agreement.  4. Waivers; Enforcement Costs.  The Borrower hereby waives protest, demand, notice  of nonpayment and all other notices in connection with the performance or enforcement of this  Note.  No delay on the part of the Lender in the exercise of any right or remedy shall operate as a  waiver thereof.  The remedies of the Lender are cumulative and no single or partial exercise of any  right or remedy available to the Lender shall preclude other or further exercise thereof or the  exercise of any other right or remedy.  The Borrower promises to pay all costs of collection,  including attorneys’ fees and legal expenses as set forth in the Loan Agreement.  5. Governing Law.  This Note shall be governed by the laws of the State of Illinois,  which laws shall govern the enforceability, validity and interpretation of this Note.  SIGNATURE TO FOLLOW  

 

77353721v.8  IN WITNESS WHEREOF,  the Borrower has executed this Note as of the day and year  first above written.  Strategic Realty Trust, Inc.,   a Maryland corporation  By:   Name:                                                                           Title:assignmentandassumptiona

ASSIGNMENT AND ASSUMPTION AGREEMENT  (VARIOUS PROPERTY AND ASSET MANAGEMENT AGREEMENTS)     This Assignment and Assumption Agreement (Various Property and Asset Management  Agreements) is made as of _______, 2022 (the “Effective Date”), by Glenborough, LLC (“Glenborough”),  in favor of PUR SRT Advisors, LLC (“PUR”).    R E C I T A L S    Whereas Glenborough is currently the Manager under the terms of the various Property and Asset  Management Agreements described on Exhibit A attached hereto (the “Management Agreements”); and    Whereas Glenborough desires to assign its rights and obligations as Manager under the Management  Agreements to PUR, and PUR desires to accept such assignment.   FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of which are  hereby acknowledged, the parties hereto agree as follows:    1. Assignment.  Glenborough hereby sells, assigns, transfers and conveys to PUR Glenborough’s  right, title and interest as Manager under the Management Agreements, including the right to  receive all future management fees, payments, reimbursements and other amounts as may be due  to the Manager under per the Management Agreements.    2. Assumption.  PUR hereby assumes all obligations, duties and liabilities of Glenborough as Manager  under the Management Agreements.  PUR further acknowledges that Glenborough entered into  that certain Consent and Subordination of Manager relating to certain of the Management  Agreements, dated as of  December 24, 2019 (the “Subordination”) in favor of PFP Holding  Company VI, LLC (“Prime”), and hereby further assumes all obligations, duties and liabilities of  Manager under the terms of the Subordination, and hereby further agrees that Prime and its  successors and assigns under the terms of its loan documents shall be explicitly considered to be a  third party beneficiary of this Agreement for purposes of enforcing its rights under this Paragraph  2 and under the Subordination against PUR.      3. Indemnification by PUR.  L3 shall indemnify, defend and hold Glenborough and its shareholders,  officers, directors, members, managers, partners, representatives and employees harmless from any  and all claims, demands, causes of action, losses, damages, fines, penalties, liabilities, costs and  expenses, including reasonable attorneys’ fees and court costs (collectively, “Claims”), sustained  or incurred by or asserted against Glenborough related to the performance of the Manager under  the terms of the Management Agreements occurring after the Effective Date or which otherwise  arise after the Effective Date.      Feb. 2 

 

4. Representations of Glenborough.  Glenborough represents and warrants to PUR that as of the  Effective Date to the actual knowledge of Andrew Batinovich without duty of inquiry:    a. The Management Agreements identified on Exhibit A attached hereto have not been  modified or amended by Glenborough other than pursuant to the documents referenced in  Exhibit A.    b. No Defaults.  Glenborough has received no notice from any of the Companies, the  Operating Partnership or the REIT, of any breach or default on the part of Glenborough  under any Management Agreement.      5. Further Assurances.  Each of the parties hereto shall, and shall cause their respective Affiliates to,  execute and deliver such additional documents, instruments, conveyances and assurances, and take  such further actions as may be reasonably required to carry out the provisions hereof and give effect  to the transactions contemplated by this Assignment.    6. Severability.  If any term or provision of this Assignment is invalid, illegal or unenforceable in  any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or  provision of this Assignment or invalidate or render unenforceable such term or provision in any  other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or  unenforceable, the parties hereto shall negotiate in good faith to modify this Assignment so as to  effect the original intent of the parties as closely as possible in a mutually acceptable manner in  order that the transactions contemplated hereby be consummated as originally contemplated to the  greatest extent possible.    7. Entire Agreement.  This Assignment constitutes the sole and entire agreement of the parties to  this Assignment with respect to the subject matter contained herein, and supersede all prior and  contemporaneous representations, warranties, understandings and agreements, both written and  oral, with respect to such subject matter. In the event of any inconsistency between the statements  in the body of this Assignment and the Exhibits, the statements in the body of this Assignment will  control.    8. Successors and Assigns.  This Assignment shall be binding upon and shall inure to the benefit of  the parties hereto and their respective successors and permitted assigns. Neither party may assign  its rights or obligations hereunder without the prior written consent of the other party, which  consent shall not be unreasonably withheld, conditioned or delayed. No assignment shall relieve  the assigning party of any of its obligations hereunder.    9. Amendment and Modification; Waiver.  This Assignment may only be amended, modified or  supplemented by an agreement in writing signed by each party hereto. No waiver by any party of  any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by  the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect  of any failure, breach or default not expressly identified by such written waiver, whether of a similar  or different character, and whether occurring before or after that waiver. No failure to exercise, or  delay in exercising, any right, remedy, power or privilege arising from this Assignment shall  operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right,  remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise  of any other right, remedy, power or privilege.  

 

  10. Governing Law; Submission to Jurisdiction.     a. Governing Law.  This Assignment shall be governed by and construed in accordance with  the internal laws of the State of California without giving effect to any choice or conflict  of law provision or rule (whether of the State of California or any other jurisdiction).    b. Jurisdiction.  ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR  BASED UPON THIS ASSIGNMENT OR THE TRANSACTIONS CONTEMPLATED  HEREBY OR THEREBY MAY BE INSTITUTED IN THE NORTHERN DISTRICT OF  THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN  SAN FRANCISCO OR THE COURTS OF THE STATE OF CALIFORNIA LOCATED  IN THE CITY AND COUNTY OF SAN MATEO, AND EACH PARTY  IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH  COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS,  SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S  ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS  FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH  COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY  OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY  PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT  TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION  OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN  INCONVENIENT FORUM.    11. Counterparts.  This Assignment may be executed in counterparts, each of which shall be deemed  an original, but all of which together shall be deemed to be one and the same agreement. A signed  copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission  shall be deemed to have the same legal effect as delivery of an original signed copy of this  Agreement.    IN WITNESS WHEREOF, Glenborough and PUR have executed this Agreement as of the date  first set forth above.    (signatures continued on next page)       

 

GLENBOROUGH:  GLENBOROUGH, LLC,   a Delaware limited liability company  By:  Name:     Title:    L3:  PUR SRT ADVISORS, LLC,  a Delaware limited liability company  By:  Name:   Title:   Consent: The undersigned, as President of all of the SRT subsidiaries that are parties to the  PAMA’s listed on Exhibit A attached hereto, hereby consents to the above Assignment, and relieves  Glenborough of any and all responsibility under the Management Agreements from and after the  Effective Date hereto.    __________________________  Matthew Schreiber, President  President Andrew Batinovich Domenic Lanni COO 

 

EXHIBIT A  LIST OF MANAGEMENT AGREEMENTS    Property Address Title Date    3032 Wilshire Blvd. Property and Asset Management Agreement July 1, 2019  Santa Monica, CA    388 Fulton Street  Property and Asset Management Agreement January __, 2017  San Francisco, CA     Los Angeles, CA Property and Asset Management Agreement January 11, 2017  3701 Sunset Blvd.  3705 Sunset Blvd.  3703 Sunset Blvd.  1601 Griffith Park Blvd.    450 Hayes Street  Property and Asset Management Agreement  December __, 2016  San Francisco, CA     1720-1790 Fulton Street  Property and Asset Management Agreement July __, 2016  San Francisco, CA     400 Grove Street  Property and Asset Management Agreement June 14, 2016  San Francisco, CA     8 Octavia Boulevard  Property and Asset Management Agreement June 14, 2016  Units 102, 307 and 308,  San Francisco, CA     Topaz Marketplace  (outparcel pad)  Property and Asset Management Agreement  August 10, 2013  Hesperia, CA

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