Document:

EX-10.5

 Exhibit 10.5 

RECORDING REQUESTED BY AND 
 UPON RECORDATION RETURN
TO: 
 Katten Muchin Rosenman LLP 
 550 South Tryon Street,
Suite 2900 
 Charlotte, NC 28202 
 Attention: Daniel S.
Huffenus, Esq. 
  
  

SSSST 376 W WATSON ST, LLC, 

a Delaware limited liability company, as mortgagor 

(Borrower) 
 To 

INSURANCE STRATEGY FUNDING IX, LLC, 

a Delaware limited liability company, as mortgagee 

(Lender) 
  

 
 MORTGAGE,

 ASSIGNMENT OF LEASES AND RENTS 

AND SECURITY AGREEMENT 
  

 
  

											
		 		 	    Dated:	 	June 28, 2017	  		  	
		 		 	    Location:	 	 376 W Watson St.
 Fayetteville,
Arkansas 72701
	  	
		 		 	    County:	 	Washington	  		  	

  
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	 ARTICLE I GRANT OF SECURITY AND WARRANTY OF TITLE
	  	 	1	 
			
	1.1	  	Property Mortgaged	  	 	1	 
	1.2	  	Warranty of Title	  	 	6	 
		
	 ARTICLE II COVENANTS AND REPRESENTATIONS AND WARRANTIES OF BORROWER
	  	 	7	 
			
	2.1	  	General Covenants, Representations and Warranties	  	 	7	 
	2.2	  	Additional Covenants, Representations and Warranties Concerning the Property	  	 	12	 
	2.3	  	Insurance	  	 	19	 
	2.4	  	Damage and Destruction	  	 	23	 
	2.5	  	Condemnation	  	 	27	 
	2.6	  	Liens and Liabilities	  	 	30	 
	2.7	  	Taxes and Other Charges	  	 	31	 
	2.8	  	Tax and Insurance Deposits	  	 	33	 
	2.9	  	Inspection	  	 	34	 
	2.10	  	Records; Reports and Audits; Maintenance of Records	  	 	34	 
	2.11	  	Borrower’s Certificates	  	 	35	 
	2.12	  	Security Interest	  	 	35	 
	2.13	  	Security Agreement	  	 	36	 
	2.14	  	Reserves	  	 	38	 
	2.15	  	Asbestos O&M Plan	  	 	38	 
	2.16	  	Capital Expenditure Reserve	  	 	39	 
	2.17	  	Access Laws	  	 	40	 
	2.18	  	Future Advances; Secured Indebtedness	  	 	40	 
	2.19	  	OFAC	  	 	41	 
	2.20	  	ERISA	  	 	41	 
		
	 ARTICLE III ASSIGNMENT OF LEASES AND RENTS AND OTHER SUMS
	  	 	43	 
			
	3.1	  	Assignment	  	 	43	 
	3.2	  	Leases and Rents	  	 	44	 
		
	 ARTICLE IV ADDITIONAL ADVANCES; EXPENSES; INDEMNITY
	  	 	45	 
			
	4.1	  	Additional Advances and Disbursements	  	 	45	 
	4.2	  	Other Expenses	  	 	45	 
	4.3	  	Indemnity	  	 	46	 
	4.4	  	Interest After Default	  	 	48	 

  
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	 ARTICLE V SALE, TRANSFER OR MORTGAGING OF THE PROPERTY; CHANGE OF CONTROL
	  	 	48	 
			
	5.1	  	Continuous Ownership; Change of Control	  	 	48	 
	5.2	  	Intentionally Omitted	  	 	50	 
	5.3	  	No Subordinate Financing	  	 	50	 
		
	 ARTICLE VI DEFAULTS
	  	 	50	 
			
	6.1	  	Events of Default	  	 	50	 
	6.2	  	Equity Bridge Loan	  	 	53	 
		
	 ARTICLE VII REMEDIES
	  	 	54	 
			
	7.1	  	Remedies Available	  	 	54	 
	7.2	  	Application of Proceeds	  	 	58	 
	7.3	  	Right and Authority of Receiver or Lender in the Event of Default; Power of Attorney	  	 	58	 
	7.4	  	Occupancy After Foreclosure	  	 	60	 
	7.5	  	Notice to Account Debtors	  	 	61	 
	7.6	  	Cumulative Remedies	  	 	61	 
	7.7	  	Deficiency	  	 	61	 
	7.8	  	Borrower’s Waivers	  	 	62	 
		
	 ARTICLE VIII REPORTING AND WITHHOLDING REQUIREMENTS
	  	 	62	 
			
	8.1	  	Withholding	  	 	62	 
	8.2	  	Form 1099-S	  	 	62	 
	8.3	  	Transfer Tax	  	 	63	 
		
	 ARTICLE IX MISCELLANEOUS TERMS AND CONDITIONS
	  	 	63	 
			
	9.1	  	Time of Essence	  	 	63	 
	9.2	  	Release of This Security Instrument	  	 	63	 
	9.3	  	Certain Rights of Lender	  	 	63	 
	9.4	  	Additional Borrower’s Waivers	  	 	64	 
	9.5	  	Notices	  	 	65	 
	9.6	  	Successors and Assigns	  	 	65	 
	9.7	  	Severability	  	 	66	 
	9.8	  	Waiver; Discontinuance of Proceedings	  	 	66	 
	9.9	  	Construction of Provisions	  	 	66	 
	9.10	  	Counting of Days	  	 	67	 
	9.11	  	Application of the Proceeds of the Note	  	 	67	 
	9.12	  	Unsecured Portion of Indebtedness	  	 	68	 
	9.13	  	Cross-Default	  	 	68	 
	9.14	  	Publicity	  	 	68	 
	9.15	  	Construction of this Document	  	 	68	 
	9.16	  	No Merger	  	 	68	 

  
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	9.17	  	Lender May File Proofs of Claim	  	 	68	 
	9.18	  	Fixture Filing	  	 	68	 
	9.19	  	Assignment by Lender	  	 	68	 
	9.20	  	No Representation	  	 	69	 
	9.21	  	Limited Recourse	  	 	69	 
	9.22	  	Entire Agreement and Modifications	  	 	72	 
	9.23	  	Commissions	  	 	72	 
	9.24	  	Intentionally Omitted	  	 	73	 
	9.25	  	Usury Savings Clause	  	 	73	 
	9.26	  	Right to Deal	  	 	73	 
	9.27	  	Sole Discretion of Lender	  	 	73	 
	9.28	  	Intentionally Omitted	  	 	74	 
	9.29	  	No Joint Venture	  	 	74	 
	9.30	  	Indemnification Provisions	  	 	74	 
	9.31	  	Applicable Law; Consent to Jurisdiction; No Jury	  	 	74	 
		
	 ARTICLE X ADDITIONAL REPRESENTATIONS, WARRANTIES AND WAIVERS OF BORROWER
	  	 	76	 
			
	10.1	  	Conditions to Exercise of Rights	  	 	76	 
	10.2	  	Defenses	  	 	76	 
	10.3	  	Lawfulness and Reasonableness	  	 	77	 
	10.4	  	Enforceability	  	 	77	 
	10.5	  	Reinstatement of Lien	  	 	78	 
		
	 ARTICLE XI CASH MANAGEMENT
	  	 	78	 
			
	11.1	  	Deposit Account	  	 	78	 
	11.2	  	Cash Management Account	  	 	79	 
	11.3	  	Payments Received Under Cash Management Agreement	  	 	81	 
		
	 ARTICLE XII SERVICER
	  	 	81	 
			
	12.1	  	Servicer	  	 	81	 
		
	 ARTICLE XIII STATE SPECIFIC PROVISIONS
	  	 	82	 
			
	13.1	  	Principles of Construction	  	 	82	 
	13.2	  	Homestead Rights	  	 	82	 
	13.3	  	Exercise of Remedies	  	 	82	 

  
 iii 

 THIS MORTGAGE, ASSIGNMENT OF LEASES AND RENTS AND SECURITY AGREEMENT (this
“Security Instrument”) is made as of the 28th day of June, 2017, by SSSST 376 W WATSON ST, LLC, a Delaware limited liability company having an address at 10 Terrace Road, Ladera Ranch, California 92694, as mortgagor
(“Borrower”), to INSURANCE STRATEGY FUNDING IX, LLC, a Delaware limited liability company, having an address at 270 Park Avenue, 9th Floor, New York, New York 10017,
as mortgagee (“Lender”). 
 R E C I T A L S: 

A. Borrower is the owner of the fee simple estate in the Real Estate (as hereinafter defined). 

B. Borrower, by its promissory note of even date herewith given to Lender, is indebted to Lender in the principal sum of TWENTY-NINE MILLION
FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($29,500,000.00) in lawful money of the United States of America (the note, together with all extensions, renewals, modifications, substitutions and amendments thereof shall collectively be referred to as the
“Note”), with interest from the date thereof at the rates set forth in the Note, principal and interest to be payable in accordance with the terms and conditions provided in the Note. 

C. Borrower desires to secure the payment and performance of the Obligations as defined in Section 1.1 hereof. 

ARTICLE I 
 GRANT OF SECURITY AND
WARRANTY OF TITLE 
 1.1 Property Mortgaged. Borrower does hereby irrevocably mortgage, grant, bargain, sell, pledge, assign,
warrant, transfer and convey with mortgage covenants to Lender, and grant a security interest to Lender in, the following property, rights, interests and estates now owned, or hereafter acquired by Borrower (collectively, the
“Property”) described in the following paragraphs (a) through (p), inclusive (collectively, the “Granting Clauses”): 

(a) All that certain real property owned in fee simple absolute situated in the City of Fayetteville, Washington County, Arkansas, and more
particularly described in Exhibit A attached hereto and incorporated herein by this reference, as the description of such property may be amended, modified or supplemented from time to time, together with all of the easements (in
gross and/or appurtenant), rights-of-way, strips and gores of land, vaults, streets, ways, alleys, passages, sewer rights, waters, water courses, water rights, air rights, development rights and powers, and located on the real estate described on
Exhibit A or under, above or adjacent to the same or any part or parcel thereof, and all rights, privileges, franchises, tenements, hereditaments, and appurtenances and additions now or hereafter belonging or in any way appertaining
thereto, and all of the estate, right, title, interest, claim and demand whatsoever of Borrower in or to such property, either at law or in equity, in possession or in expectancy, now owned or hereafter acquired (collectively, the “Real
Estate”); 

 (b) All structures, buildings and improvements of every kind and description now or at any time
hereafter located or placed on the Real Estate, including, without limitation, those improvements known as The District Student Housing Apartments, including, without limitation, all gas and electric fixtures, radiators, heaters, washing machines,
dryers, refrigerators, ovens, engines and machinery, boilers, ranges, elevators and motors, plumbing and heating fixtures, antennas, carpeting and other floor coverings, water heaters, awnings and storm sashes, and cleaning apparatus which are or
shall be attached to, contained in or used in connection with the Real Estate or said buildings, structures or improvements and all appurtenances and additions thereto and betterments, renewals, substitutions and replacements thereof (collectively,
the “Improvements”); 
 (c) To the extent the same are not Improvements, all fixtures, appliances, machinery,
furniture, furnishings, decorations, tools and supplies, now owned or hereafter acquired or leased by Borrower, including, without limitation, radios, televisions, carpeting, telephones, cash registers, computers, lamps, glassware, restaurant and
kitchen equipment, and all building materials and equipment hereafter situated on or about the Real Estate to be attached to or used in or in connection with the Improvements, including, without limitation, all heating, lighting, incinerating, waste
removal and power equipment and fixtures, engines, pipes, tanks, motors, conduits, switchboards, security and alarm systems, plumbing, lifting, cleaning, fire prevention and fire extinguishing apparatus, refrigeration systems, washing machines,
dryers, stoves, ranges, refrigerators, ventilating, and communications apparatus, air cooling and air conditioning apparatus, escalators, elevators, ducts and compressors, materials and supplies and all other goods, equipment, machinery, apparatus,
chattels, tangible personal property, fixtures and fittings now owned or hereafter acquired by Borrower wherever located, together with all additions, replacements, substitutions, parts, fittings, accessions, attachments, accessories, modifications
and alterations of any of the foregoing, and all warranties and guaranties relating to the foregoing (collectively, the “Personal Property”); 

(d) All minerals, flowers, shrubs, crops, trees, timber and other emblements or landscaping features now or hereafter serving the Real Estate
or located on the Real Estate or under, above or adjacent to the same or any part or parcel thereof; 
 (e) All water, ditches, wells,
reservoirs and drains and all water, ditch, well, reservoir and drainage rights which are appurtenant to, located on, under or above or used in connection with the Real Estate or the Improvements, or any part thereof, whether now existing or
hereafter created or acquired; 
 (f) All funds (including, all reserve funds), accounts (including, operating accounts), deposits,
and other rights and evidence of rights to cash, now or hereafter created or held by Lender pursuant to this Security Instrument or any other of the Loan Documents (as hereinafter defined), including, without limitation, all funds now or hereafter
on deposit with the Depository (as hereinafter defined) pursuant to Section 2.8, Section 2.16, Article XI or as otherwise required pursuant to this Security Instrument; 

(g) All the ground leases, leases, subleases, lettings, licenses, concessions, occupancy and surrender agreements of the Real Estate or the
Improvements now or hereafter entered into, and all estates, rights, titles, liberties, privileges, interests, tenements, hereditaments and appurtenances, reversions and remainders whatsoever, in any way belonging, relating or appertaining to the
Real Estate or any part thereof, or which shall in any way belong, relate or be 

  
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appurtenant thereto, whether now owned or hereafter acquired by Borrower (collectively, the “Leases”) and all rents (whether denoted as advance rent, minimum rent,
percentage rent, additional rent or otherwise), maintenance payments, assessments, receipts, issues, income, royalties, profits, earnings, revenues, proceeds, bonuses, deposits (whether denoted as security deposits or otherwise), lease termination
fees or payments, rejection damages, buy-out fees and any other fees made or to be made in lieu of rent, any award made hereafter to Borrower in any court proceeding involving any tenant, subtenant, lessee, licensee or concessionaire under any
Leases in any bankruptcy, insolvency or reorganization proceedings in any state or federal court, and all other payments, rights and benefits of whatever nature from time to time arising from the use or enjoyment of all or any portion of the Real
Estate or the Improvements or from any Lease, or any license, concession, occupancy agreement or other agreement pertaining thereto or arising from any of the Contracts (as hereinafter defined) or any of the General Intangibles (as hereinafter
defined), including, without limitation, (i) rights to payment earned under Leases for space in the Improvements for the operation of ongoing businesses, if any, and (ii) all other income, consideration, issues, accounts, profits or
benefits of any nature arising from the ownership, possession, use or operation of the Property, including, without limitation, all revenues, receipts, income, receivables and accounts relating to or arising from rentals, rent equivalent income,
income and profits from vending machines, telephone and television systems, laundry facilities (collectively, the “Rents and Profits”) and all cash or securities deposited to secure performance by the tenants, subtenants,
lessees or licensees, as applicable, of their obligations under any such Leases, whether said cash or securities are to be held until the expiration of the terms of said Leases or applied to one or more of the installments of rent coming due prior
to the expiration of said terms; 
 (h) All contracts and agreements (including any license or franchise agreements) now or
hereafter entered into relating to any part of the Real Estate or the Improvements or any other portion of the Property (collectively, the “Contracts”) and all revenue, income and other benefits thereof, including, without
limitation, management agreements, operating agreements, parking agreements, masterplan documents, condominium documents, declarations, reciprocal easement agreements, development agreements, service contracts, maintenance contracts, equipment
leases, personal property leases, agreements relating to collection of receivables or the use of customer or tenant lists or other information, and any contracts or documents relating to construction on any part of the Real Estate or the
Improvements or other portions of the Property (including, without limitation, plans, drawings, surveys, tests, reports, bonds and governmental approvals) or to the management or operation of any part of the Real Estate or the Improvements;

 (i) All present and future monetary deposits given to any public or private utility with respect to utility services furnished to any
part of the Real Estate or the Improvements; 
 (j) All present and future funds, goods, accounts, instruments, accounts receivable,
documents, causes of action, claims, general intangibles (including, without limitation, copyrights, trademarks, trade names, intellectual property rights, servicemarks and symbols) now or hereafter used in connection with any part of the Real
Estate or the Improvements, all names by which the Real Estate or the Improvements may be operated or known, all rights to carry on business under such names, and all rights, interest and privileges 

  
 3 

 
which Borrower has or may have as developer or declarant under any covenants, restrictions or declarations now or hereafter relating to the Real Estate or the Improvements and all notes or
chattel paper now or hereafter arising from or by virtue of any transactions related to the Real Estate or the Improvements, and all customer or tenant lists, other lists and business information relating in any way to the Real Estate, the
Improvements, other portions of the Property or the use thereof (collectively, the “General Intangibles”); 

(k) All water taps, sewer taps, certificates of occupancy, permits (including any building permits and approvals), licenses, franchises,
certificates, consents, approvals and other rights and privileges now or hereafter obtained in connection with the Real Estate or the Improvements and all present and future warranties and guaranties relating to the Improvements or to any equipment,
fixtures, furniture, furnishings, personal property or components of any of the foregoing now or hereafter located or installed on the Real Estate or the Improvements; 

(l) All building materials, supplies and equipment now or hereafter placed on the Real Estate or in the Improvements, or to be attached to or
used in connection with the Improvements, and all architectural renderings, models, drawings, plans, specifications, studies and data now or hereafter relating to the Real Estate or the Improvements; 

(m) All right, title and interest of Borrower in any insurance policies or binders now or hereafter relating to and to the extent of the
Property (whether or not Borrower is required to carry such insurance by Lender hereunder), including, without limitation, any unearned premiums thereon, proceeds of hazard, title and other insurance and proceeds (including, without limitation,
those proceeds received pursuant to any sales or rental agreements of Borrower in respect of the property described in these Granting Clauses), and all judgments, damages, awards, settlements and compensation (including, without limitation, interest
thereon) heretofore or hereafter made to the present and all subsequent owners of the Real Estate and/or any other property or rights conveyed or encumbered hereby for any injury to or decrease in the value thereof for any reason; 

(n) All proceeds, products, substitutions, and accessions (including claims and demands therefor) of the conversion, voluntary or involuntary,
of any of the foregoing into cash or liquidated claims, including, without limitation, proceeds of insurance and condemnation or other awards, any awards for any change of grade of streets and all refunds, rights or credits arising from a reduction
in real estate taxes, assessments and/or other Impositions (as hereinafter defined) charged against the Real Estate or the Improvements as a result of tax certiorari or any other applications or proceedings for reduction of any Impositions; 

(o) All other or greater rights and interests of every nature in the Real Estate or the Improvements and in the possession or use thereof and
income therefrom, whether now owned or hereafter acquired by Borrower; 
 (p) All extensions, additions, improvements, betterments, renewals
and replacements, substitutions, or proceeds of any of the foregoing, and all inventory, accounts, chattel paper, documents, instruments, equipment, fixtures, farm products, consumer goods, general intangibles and other property of any nature
constituting proceeds acquired with proceeds of any of the property described hereinabove; and 
 (q) any and all other rights of Borrower
in and to the items set forth in clauses (a) through (p) above. 

  
 4 

 FOR THE PURPOSE OF SECURING: 

(1) The indebtedness (hereinafter sometimes referred to as the “Loan”) evidenced by the Note in the original principal
amount of TWENTY-NINE MILLION FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($29,500,000.00), together with interest, fees, late charges and any and all other amounts as provided in the Note, this Security Instrument and the other Loan Documents
(including, without limitation, interest at the Default Rate and any Late Charges (as such terms are defined in the Note)); 
 (2) The full
and prompt payment and performance of all of the provisions, agreements, covenants and obligations herein contained and contained in any other agreements, documents or instruments now or hereafter evidencing, securing or otherwise relating to the
indebtedness evidenced by the Note; 
 (3) Any and all additional advances made by Lender to protect or preserve the Property or the lien or
security interest created hereby on the Property, or for taxes, assessments or insurance premiums as hereinafter provided or for performance of any of Borrower’s obligations hereunder or under the other Loan Documents or for any other purpose
provided herein or in the other Loan Documents; and 
 (4) Any and all other indebtedness and obligations now owing or which may hereafter
be owing by Borrower or any other Borrower Party (as hereinafter defined) to Lender arising from, in connection with or in any way relating to the Loan and/or any of the Property, however and whenever incurred or evidenced, whether express or
implied, direct or indirect, absolute or contingent, or due or to become due, and all renewals, modifications, consolidations, replacements and extensions thereof. 

All of the indebtedness and other obligations and matters referred to in Paragraphs (1) through (4) above are herein sometimes referred to
collectively as the “Obligations”. The Note, this Security Instrument and such other agreements, documents and instruments executed and/or delivered in connection with the Loan, including, without limitation, each of the
following documents, each dated as of the date hereof: 
 (1) Assignment of Leases and Rents from Borrower, as assignor, to Lender, as
assignee (the “Assignment of Leases and Rents”); 
 (2) Guaranty from each of H. Michael Schwartz, an
individual and Strategic Student & Senior Housing Trust, Inc., a Maryland corporation (“SSSST”) (jointly and severally, and individually or collectively, as the case may be, “Indemnitor” so
long as H. Michael Schwartz is a Guarantor thereunder pursuant to the terms and conditions of the Guaranty, after which “Indemnitor” shall refer solely to SSSST ) in favor of Lender (the
“Guaranty”); 
 (3) Environmental Indemnity Agreement from Borrower and Indemnitor in favor of Lender (the
“Environmental Indemnity”); 

  
 5 

 (4) Assignment of Property Management Agreement from Borrower in favor of Lender and
consented to by Manager (as hereinafter defined) (the “Assignment of Property Management Agreement”); 
 (5)
Compliance with Law Certificate from Borrower in favor of Lender; 
 (6) No Adverse Change Certificate from Borrower in favor of Lender;

 (7) Diligence Delivery Certificate from Borrower in favor of Lender; and 

(8) Uniform Commercial Code (“UCC”) Financing Statements by Borrower, as debtor, in favor of Lender, as secured party;

 together with any and all renewals, amendments, extensions and modifications of any of the foregoing, are sometimes collectively referred to herein as
the “Loan Documents”. Each of Borrower and Indemnitor are sometimes referred to herein, individually, as a “Borrower Party”, and collectively, as the “Borrower Parties”). 

TO HAVE AND TO HOLD the above granted and described Property unto and to the use and benefit of Lender, and the successors and assigns of
Lender, forever; 
 PROVIDED, HOWEVER, these presents are upon the express condition that, if Borrower shall well and truly pay to Lender
the Obligations at the time and in the manner provided in the Note and this Security Instrument, shall well and truly perform the Obligations as set forth in this Security Instrument and shall well and truly abide by and comply with each and every
covenant and condition set forth herein and in the Note, these presents and the estate hereby granted shall cease, terminate and be void. 

PROVIDED FURTHER, HOWEVER, and subject to the terms and conditions of the Loan Documents, the Scheduled Maturity Date (as defined in the Note)
shall be July 1, 2024. 
 1.2 Warranty of Title. Borrower hereby represents, warrants, covenants and certifies:
(a) Borrower has good, marketable and insurable, indefeasible fee simple absolute title to the Real Estate and Improvements located thereon, free and clear of all Liens (as hereinafter defined), subject only to those exceptions shown in the
title insurance policy insuring the lien of this Security Instrument (the “Permitted Encumbrances”); (b) Borrower has and covenants that it will continue to have full power and lawful authority to encumber and convey the
Property as provided herein; (c) this Security Instrument is, and Borrower covenants that this Security Instrument will continue to remain a valid and enforceable first priority lien on and security interest in the Property; (d) other than
Asset Campus USA, LLC’s (“Manager”) right to receive management fees pursuant to the terms of that certain Student Housing Management Agreement dated April 27, 2017 between Manager and Borrower (the
“Property Management Agreement”) (which rights are subject to the Assignment of Property Management Agreement), Manager has no interest in any of the Property or the Collateral; and (e) Borrower hereby warrants and will
forever warrant and defend such title and the validity, enforceability and priority of the lien and security interest hereof against the claims of all Persons and parties whomsoever. 

  
 6 

 ARTICLE II 

COVENANTS AND REPRESENTATIONS AND WARRANTIES OF BORROWER 

2.1 General Covenants, Representations and Warranties. Borrower covenants, represents and warrants to Lender as follows: 

(a) Payment of Obligations. Borrower shall punctually pay when due and perform the Obligations as and when due in accordance with the
provisions set forth in this Security Instrument, the Note and the other Loan Documents. 
 (b) Authority; Continuation of Existence.
Borrower is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, is authorized to transact business in the State of Arkansas, and has all necessary licenses, authorizations,
registrations and/or approvals, and full power and authority, to own the Property. Borrower will maintain in good standing its existence, franchises, rights and privileges under the laws of the State of Delaware and its rights to transact business
in the State of Arkansas and will not, without the prior written consent of Lender, (i) dissolve, terminate or otherwise dispose, directly or indirectly or by operation of law, of all or substantially all of its assets or (ii) change its
name or its legal structure or organizational form from a limited liability company organized under the laws of the State of Delaware. 

(c) Further Assurances. Borrower will, at Borrower’s sole cost and expense, (i) promptly correct any defect or error which
may be discovered in the contents of this Security Instrument or any other Loan Documents or any other agreement to which Borrower is a party or in the execution, acknowledgment or recordation thereof, and (ii) promptly do, execute, acknowledge
and deliver, any and all such further acts, mortgages, security deeds, conveyances, deeds of trust, security agreements, assignments, estoppel certificates, financing statements and continuations thereof, assignments of rents or leases, notices of
assignment, transfers, certificates, assurances and other instruments as Lender may reasonably require from time to time in order to carry out more effectively the purposes of this Security Instrument, the rights or interests covered or intended to
be covered hereby, to perfect and maintain said lien and security interest, and to better assure, convey, grant, protect, continue, assign, transfer and confirm unto Lender the rights granted or intended to be granted to Lender hereunder or under
any other instrument executed in connection with this Security Instrument or which Borrower may be or become bound to confirm, convey, bargain, sell, release, warrant, transfer, mortgage, pledge, grant, assure, set over or assign to Lender in order
to carry out the intention or facilitate the performance of the provisions of this Security Instrument. 
 (d) Recordation and
Re-Recordation of Security Instrument. Borrower will, at the request of Lender, promptly record and re-record, file and refile and register and re-register this Security Instrument, any financing or continuation statements and every other
instrument in addition or supplemental to any thereof that shall be required by any present or future law in order to perfect and maintain the validity, effectiveness and priority of this Security Instrument and the lien and security interest
intended to be created hereby, or to subject after-acquired property of Borrower to such lien and security interest, in such manner and places and within such times as may be necessary to accomplish such purposes and to preserve and protect the
rights and remedies of Lender. Borrower will furnish to Lender evidence satisfactory to Lender 

  
 7 

 
of every such recording, filing or registration. Lender may, at Borrower’s sole expense, file copies or reproductions of this instrument as financing statements at any time and from time to
time at Lender’s option without further authorization from Borrower. It is further agreed that, effective after and during the continuance of an Event of Default, Borrower hereby appoints Lender as its attorney-in-fact, which appointment is
irrevocable and shall be deemed to be coupled with an interest, with respect to the execution, acknowledgment, delivery and filing, registering or recording for and in the name of Borrower of any of the documents or instruments referred to in this
Section 2.1(d). 
 (e) Defense of Title and Litigation. If the lien, security interest, validity, enforceability or
priority of this Security Instrument, or if title or any of the rights of Borrower or Lender in or to the Property, shall be endangered or questioned, or shall be attacked directly or indirectly, or if any action or proceeding is instituted against
Borrower or Lender with respect thereto, Borrower will promptly notify Lender thereof and will diligently cure any defect which may be developed or claimed, and will take all necessary and proper steps for the defense of such action or proceeding,
including, without limitation, the employment of counsel, the making of a demand for such defense under Borrower’s title insurance policy, the prosecution or defense of litigation and, subject to Lender’s prior written approval, the
compromise, release or discharge of any and all adverse claims. Lender (whether or not named as a party to such actions or proceedings) is hereby authorized and empowered (but shall not be obligated) to take such additional steps as it may deem
necessary or proper for the defense of any such action or proceeding for the protection of the lien, security interest, validity, enforceability or priority of this Security Instrument or of such title or rights, including the employment of counsel,
the prosecution or defense of litigation, the compromise, release or discharge of such adverse claims, the purchase of any tax title and the removal of such prior liens and security interests. Borrower shall, on demand, pay or reimburse Lender for
all expenses (including reasonable attorneys’ fees and disbursements) incurred by it in connection with the foregoing matters. All such costs and expenses of Lender, until paid or reimbursed by Borrower, shall be part of the Obligations and
shall be and shall be deemed to be secured by this Security Instrument. It is further agreed that Borrower hereby appoints Lender as its attorney-in-fact, which appointment is irrevocable and shall be deemed to be coupled with an interest, with
respect to the taking of such steps as may be necessary or proper in the reasonable discretion of Lender with respect to the matters referred to in this Section 2.1(e). 

(f) SPE Covenants. Borrower: 

(1) has not owned, does not own and will not own any asset or property other than (i) the Property and (ii) incidental personal
property necessary for the ownership, management or operation of the Property. 
 (2) has not engaged, does not engage, and will not engage
in any business other than the ownership, management and operation of the Property and Borrower will conduct and operate its business as presently conducted and operated. 

(3) has not entered and is not a party to and will not enter into or be a party to any contract or agreement with any Affiliate (as defined
herein) of Borrower, any constituent party of Borrower or any Affiliate of any constituent party, except in the ordinary course of business and on terms and conditions that are disclosed to Lender in advance and that are intrinsically fair,
commercially reasonable and substantially similar to those that would be available on an arms-length basis with third parties other than any such party. 

  
 8 

 (4) has not made and will not make any loans or advances to any Person (including any affiliate
or constituent party), and has not acquired and shall not acquire obligations or securities of its affiliates. 
 (5) is and intends to
remain solvent and Borrower has paid and will pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from net operating income and available reserve funds, as the same shall become due; provided, however,
that the foregoing shall not require any direct or indirect member, partner or shareholder of Borrower to make any additional capital contributions to Borrower. 

(6) has done or caused to be done and will do all things necessary to observe organizational formalities and preserve its existence, and
Borrower will not (i) terminate or fail to comply with the provisions of its organizational documents, or (ii) unless Lender has consented, amend, modify or otherwise change its partnership certificate, partnership agreement, articles of
incorporation and bylaws, operating agreement, trust or other organizational documents with respect to the matters set forth in this Section 2.1(f). 

(7) has maintained and will maintain all of its accounts, books, records, financial statements and bank accounts separate from those of its
Affiliates and any other Person. Borrower’s assets have not been and will not be listed as assets on the financial statement of any other Person; provided, however, that Borrower’s assets may be included in a consolidated financial
statement of its affiliates if (i) appropriate notation shall be made on such consolidated financial statements to indicate the separateness of Borrower and such affiliates and to indicate that Borrower’s assets and credit are not
available to satisfy the debts and other obligations of such affiliates or any other Person, and (ii) such assets shall be listed on Borrower’s own separate balance sheet. Borrower has and will file its own tax returns (to the extent
Borrower is required to file any such tax returns) and will not file a consolidated federal income tax return with any other Person. Borrower has maintained and shall maintain its books, records, resolutions and agreements as official records. 

(8) has been and will be, and has held and at all times will hold itself out to the public as, a legal entity separate and distinct from any
other entity (including any Affiliate of Borrower or any constituent party of Borrower), has corrected and shall correct any known misunderstanding regarding its status as a separate entity, has conducted and shall conduct business in its own name
or a trade name owned by Borrower, SmartStop Asset Management, LLC or an Affiliate thereof (so long as in using any such trade name, Borrower files an Application for Fictitious Name with the Arkansas Secretary of State, or the equivalent thereof
with the proper governmental authority) has not identified and shall not identify itself or any of its Affiliates as a division or part of the other, and has maintained and shall maintain and utilize separate stationery, invoices and checks bearing
its own name or a trade name owned by Borrower, SmartStop Asset Management, LLC or an Affilaite thereof (so long as in using any such trade name, Borrower files an Application for Fictitious Name with the Arkansas Secretary of State, or the
equivalent thereof with the proper governmental authority). 

  
 9 

 (9) has maintained and intends to maintain adequate capital for the normal obligations
reasonably foreseeable in a business of its size and character and in light of its contemplated business operations; provided, however, that the foregoing shall not require any direct or indirect member, partner or shareholder of Borrower to make
any additional capital contributions to Borrower. 
 (10) has not, nor has any constituent party sought or will seek or effect the
liquidation, dissolution, winding up, consolidation or merger, in whole or in part, of Borrower. 
 (11) has not commingled and will not
commingle the funds and other assets of Borrower with those of any Affiliate or constituent party or any other Person, and has held and will hold all of its assets in its own name. 

(12) has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify
its individual assets from those of any Affiliate or constituent party or any other Person. 
 (13) has not assumed or guaranteed or become
obligated for the debts of any other Person and has not held itself out to be responsible for or have its credit available to satisfy the debts or obligations of any other Person, and Borrower will not assume or guarantee or become obligated for the
debts of any other Person and does not and will not hold itself out to be responsible for or have its credit available to satisfy the debts or obligations of any other Person. 

(14) has not permitted and will not permit any Affiliate or constituent party independent access to its bank accounts. 

(15) has paid and shall pay the salaries of its own employees (if any) from its own funds and has and shall maintain a sufficient number of
employees (if any) in light of its contemplated business operations; provided, however, that the foregoing shall not require any direct or indirect member, partner or shareholder of Borrower to make any additional capital contributions to Borrower.

 (16) has compensated and shall compensate each of its consultants and agents from its funds for services provided to it and pay from its
own assets all obligations of any kind incurred; provided, however, that the foregoing shall not require any direct or indirect member, partner or shareholder of Borrower to make any additional capital contributions to Borrower. 

(17) has not, and without the unanimous consent of all of its members, partners, directors or managers and without the written consent of
Lender, will not, take any action that might reasonably be expected to cause Borrower to become insolvent. 
 (18) has allocated and will
allocate fairly and reasonably any shared expenses, including shared office space. 

  
 10 

 (19) except in connection with the Loan, has not pledged and will not pledge its assets for the
benefit of any other Person. 
 (20) either (i) has no, and will have no, obligation to indemnify its officers, directors, managers,
members, shareholders or partners, as the case may be, or (ii) if it has any such obligation, such obligation is fully subordinated to the Obligations and will not constitute a claim against Borrower if cash flow in excess of the amount
required to pay the Obligations is insufficient to pay such obligation. 
 (21) will consider the interests of Borrower’s creditors in
connection with all limited liability company or limited partnership actions. 
 (22) except as provided in the Loan Documents, has not and
will not have any of its obligations guaranteed by any Affiliate. 
 (23) The organizational documents of Borrower shall provide that as
long as any portion of the Obligations remain outstanding, Borrower will not: 
 (i) dissolve, merge, liquidate or consolidate without the
prior written consent of Lender; 
 (ii) except in connection with a sale or other transfer permitted under the Loan Documents, sell or
lease, or otherwise dispose of, all or substantially all of its assets without the prior written consent of Lender; 
 (iii) amend its
organizational documents with respect to the matters set forth in this Section 2.1(f), without the prior written consent of Lender; or 

(iv) without the affirmative vote of each of its members or partners, and without the prior written consent of Lender (to the extent allowed
under applicable law), take any Material Action with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest. For the purposes of this clause (iv) “Material
Action” shall mean with respect to any Person, to institute proceedings to have such Person be adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency proceedings against such Person or file a
petition seeking, or consent to, reorganization or relief with respect to such Person under any applicable federal, state, local or foreign law relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of such Person or a substantial part of its property, or make any assignment for the benefit of creditors of such Person, or admit in writing such Person’s inability to pay its debts generally as they
become due, or declare or effectuate a moratorium on the payment of any obligation, or take action in furtherance of any such action. 

(24) The organizational documents of Borrower shall provide that as long as any portion of the Obligations remain outstanding, Borrower will
comply with each provision of this Section 2.1(f); 

  
 11 

 As used in this Security Instrument, the following terms shall have the following meanings: 

“Affiliate” shall mean, with respect to any Person, (i) in the case of any such Person which is a partnership or
limited liability company, any general partner or managing member in such partnership or limited liability company, respectively, (ii) any other Person which is directly or indirectly Controlled by, Controls or is under common Control (as each
is hereinafter defined) with such Person or one or more of the Persons referred to in the preceding clause (i), and (iii) any other Person who is a senior executive officer, director or trustee of such Person or any Person referred to in the
preceding clauses (i) and (ii); provided, however, in no event shall the Lender or any of its Affiliates be an Affiliate of Borrower. 

“Control” and the correlative terms “controlled by” and “controlling”
shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management and policies of the business and affairs of the entity in question by reason of the ownership of beneficial interests, by contract or
otherwise 
 (g) No Misrepresentations. 

(1) All materials, reports, financial statements, and other written information pertaining to the Borrower Parties and the Property which
were prepared by the Borrower Parties (and/or their Affiliates) and heretofore or hereafter delivered by the Borrower Parties to Lender, or delivered by any of the Borrower Parties (and/or their Affiliates) to any Person (e.g., an appraiser, an
engineer, an environmental engineer, etc.) preparing materials, reports, financial statements and/or other information heretofore or hereafter delivered to Lender, are true, correct and complete in all material respects; 

(2) All materials, reports, financial statements and other written information pertaining to the Borrower Parties and the Property which were
prepared by third parties unaffiliated with the Borrower Parties (as required by Lender or as to such matters Lender determines appropriate for the Borrower Parties to engage third parties to provide the same) and heretofore or hereafter delivered
to Lender by any of the Borrower Parties or their Affiliates are, to Borrower’s actual knowledge (after having reviewed such materials, reports, financial statements and other information), true, correct and complete in all material respects;
and 
 (3) All representations and warranties made in the Note, this Security Instrument and the other Loan Documents, are true and correct
in all material respects and do not omit to state any material fact or circumstances necessary to make the statements contained therein not materially misleading, except as otherwise disclosed in writing by Borrower to Lender. 

2.2 Additional Covenants, Representations and Warranties Concerning the Property. Borrower covenants, represents and warrants to Lender
as follows: 
 (a) Repair and Maintenance. 

(1) Borrower shall cause the Property to be maintained in a good and safe condition and repair. The Improvements and the Personal Property
shall not be removed, demolished or materially altered (except for normal replacement of the Personal Property and/or tenant improvements made in connection with a Lease which has been entered into by Borrower in accordance with the terms hereof)
without the prior consent of Lender. 

  
 12 

 (2) Borrower shall promptly repair, replace or rebuild any part of the Property which may be
destroyed by any casualty (to the extent insurance proceeds are made available by Lender for said purposes), or become damaged, worn or dilapidated or which may be affected by any proceeding of the character referred to in
Section 2.5 hereof (to the extent condemnation proceeds are made available by Lender for said purposes) and shall complete and pay for any structure at any time in the process of construction or repair on the Land. 

(3) Borrower shall not initiate, join in, acquiesce in, or consent to any change in any private restrictive covenant, zoning law or other
public or private restriction, limiting or defining the uses which may be made of the Property or any part thereof. If under applicable zoning provisions the use of all or any portion of the Property is or shall become a nonconforming use, Borrower
will not cause or permit the nonconforming use to be discontinued or abandoned without the express written consent of Lender. 
 (4)
Borrower will not permit any drilling or exploration for or extraction, removal or production of any minerals from the surface or the sub-surface of the Real Estate regardless of the depth thereof or the method of mining or extraction thereof. 

(b) Operation of the Property. 

(1) Borrower has and will maintain all necessary certificates, licenses, authorizations, registrations, permits and/or approvals necessary
for the operation of all or any part of the Property, and the conduct of Borrower’s business at the Property, including a permanent certificate of occupancy and all required zoning ordinance, building code, land use, environmental and other
similar permits or approvals, all of which as of the date hereof are in full force and effect and not subject to any revocation, amendment, release, suspension or forfeiture and Borrower shall, promptly upon request by Lender, deliver to Lender
copies of all of the same; 
 (2) Borrower represents and covenants that to Borrower’s actual knowledge, (i) the Property and the
present and contemplated use and/or occupancy of the Property comply with and do not conflict with or violate any of the applicable zoning ordinances, building codes, certificates of occupancy, handicapped accessibility laws, including, without
limitation, the Americans with Disabilities Act of 1990, environmental laws and other similar applicable Governmental Regulations; (ii) Borrower has and will maintain at the Property a sufficient number of on-site parking spaces to comply with
all Governmental Regulations and all Permitted Encumbrances with respect to the Property; and (iii) Borrower has delivered to Lender a true, correct and complete copy of the standard form of Lease used at the Property as of the date hereof
(which includes the form of lease used by Borrower’s predecessor-in-interest in the Property and the form of lease to be used by Manager) (collectively, the “Lender-Approved Lease Form”). As used herein the term
“Governmental Regulations” means, collectively, the provisions of all permits and licenses and all statutes, laws (including any health or safety law governing Borrower, its business, operations, property, assets or
equipment, or the Property), 

  
 13 

 
ordinances, rules, requirements, resolutions, policy statements, orders and regulations of any Governmental Authority (as such term is defined in the Note) having jurisdiction over Borrower or
the Property or any part thereof and interpretations thereof now or hereafter applicable to, or bearing on, the construction, development, maintenance, use, operation, sale, financing or leasing of the Property or any part thereof, or any adjoining
vaults, sidewalks, streets, ways, parking areas or driveways, or the formation, existence, business or good standing of Borrower, including, without limitation, those relating to land use, subdivision, zoning, occupational health and safety,
earthquake hazard reduction, if any, building and fire codes, Access Laws (as hereinafter defined), pollution or protection of the environment, including, without limitation, laws relating to the ADA (as hereinafter defined), laws relating to
emissions, discharges, releases or threatened releases of Hazardous Substances into the environment (including, ambient air, surface water, groundwater, land surface or subsurface strata) or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Substances. 
 (c) Compliance with Governmental
Regulations. Borrower will perform and comply promptly with, and cause the Property to be maintained, used and operated in accordance with, any and all (i) present and future Governmental Regulations, (ii) similarly applicable orders,
rules and regulations of any regulatory, licensing, accrediting, or rating organization or other body exercising similar functions, (iii) similarly applicable duties or obligations of any kind imposed under any Permitted Encumbrance or
otherwise by law, covenant, condition, agreement or easement, public or private, and (iv) policies of insurance or the rules and regulations of any insurance underwriting or rating organization, at any time in force with respect to the
Property. If Borrower receives any written notice that Borrower or the Property is in default under or is not in compliance with any of the foregoing (regardless of whether such notice involves de minimis or minor aspects of non-compliance), or
written notice of any proceeding initiated under or with respect to any of the foregoing, Borrower will promptly furnish a copy of such notice to Lender. 

(d) Status of the Property. 

(1) The Real Estate is not located in an area identified by the Federal Emergency Management Agency or a successor thereto as an area having
special flood hazards pursuant to the terms of the National Flood Insurance Act of 1968, or the Flood Disaster Protection Act of 1973, as amended, or any successor law, or if the Real Estate is located in such an area, Borrower has obtained and will
maintain the insurance for the Property as specified in Section 2.3(a)(iii) hereof; 
 (2) The Property is served by all
utilities in adequate supply required for the use thereof as herein contemplated; 
 (3) The Property is free from damage caused by fire or
other casualty as of the date hereof; 
 (4) All streets necessary to serve the Property have been completed and are serviceable, and
Borrower has unrestricted access from public roads to the Real Estate and the Improvements; and 

  
 14 

 (5) There is no condemnation or similar proceeding pending or threatened affecting any part of
the Property. 
 (e) Zoning; Title Matters. Borrower will not, without the prior written consent of Lender: 

(1) initiate, join in, support or acquiesce in any zoning reclassification of the Property or seek any variance under existing zoning
ordinances applicable to the Property or use or permit the use of the Property in a manner which would result in such use becoming a non-conforming use of all or any portion of the Property under applicable zoning ordinances; 

(2) modify, amend or supplement any of the Permitted Encumbrances; 

(3) impose any restrictive covenants or encumbrances upon the Property, or execute or file any subdivision plat affecting the Property, or
consent to the annexation of the Property to any municipality; or 
 (4) permit or suffer the Property to be used by the public or any
Person in such manner as might make possible a colorable claim of adverse usage or possession or of any implied dedication or easement. Borrower will perform and comply with, and cause the Property to be maintained, used and operated in accordance
with, the Permitted Encumbrances. 
 (f) Hazardous Substances; Asbestos. 

(1) To Borrower’s actual knowledge , except as otherwise disclosed to Lender in the Environmental Reports (as hereinafter defined), the
Property is not now nor has it ever been listed as a Super Fund Site on the National Priorities List or similar state registry. Borrower has not dumped, stored, released, discharged, disposed of, manufactured, or used any Hazardous Substances (as
hereinafter defined) at or about the Property except as disclosed to Lender in the environmental reports delivered to Lender in connection with the closing of the Loan (the “Environmental Reports”) or otherwise in compliance
with applicable Governmental Regulations (as hereinafter defined). Borrower represents that, to its actual knowledge, except as disclosed to Lender in the Environmental Reports, (i) there has been no dumping, discharge, storage (except for
storage in compliance with applicable Governmental Regulations), or disposal of any Hazardous Substances upon the Property; (ii) the Property is in compliance with all Governmental Regulations with respect to Hazardous Substances; and
(iii) there are no violations of any Governmental Regulations relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling or to any emissions, discharges, releases or threatened releases of
Hazardous Substances at or about the Property. Borrower further represents that, except as disclosed to Lender in the Environmental Reports, to Borrower’s actual knowledge, there are no claims or actions pending or threatened in writing against
Borrower or the Property by any governmental entity or agency or by any other Person relating to Hazardous Substances or pursuant to Governmental Regulations relating thereto (“Hazardous Substances Claims”). Borrower
covenants that the Property shall be kept free of Hazardous Substances, and is not and shall not be used to generate, manufacture, refine, transport, treat, store, handle, dispose, discharge, transfer, produce, or process Hazardous Substances except
as may be permitted in compliance with applicable Governmental Regulations, and Borrower shall not 

  
 15 

 
cause, and shall not permit any other party to cause, as a result of any intentional or unintentional act or omission on the part of Borrower, any other Borrower Party or any tenant, subtenant or
occupant, the installation of Hazardous Substances in the Property or a release of Hazardous Substances onto the Property or onto any other property or suffer the presence of Hazardous Substances on the Property, except as may be permitted in
compliance with applicable Governmental Regulations. Borrower covenants that, except as disclosed to Lender in the Environmental Reports, to Borrower’s actual knowledge, there are not now and shall not be any underground storage tanks
containing petroleum based products or other Hazardous Substances located on the Real Estate. Borrower shall comply, and require (and take commercially reasonable steps to pursue if Borrower becomes aware of non-compliance) compliance by all
tenants, subtenants and occupants with all Governmental Regulations with respect to Hazardous Substances, and shall keep the Property free and clear of any Liens imposed pursuant to Governmental Regulations with respect to Hazardous Substances. In
the event that Borrower receives any written notice from any Governmental Authority or any tenant, subtenant or occupant with regard to such Hazardous Substances, on, from or affecting the Property, or written notice of any Hazardous Substances
Claims, or if Borrower discovers any Hazardous Substances on, under or about the Property in violation of any applicable Governmental Regulations with respect to Hazardous Substances, Borrower shall promptly notify Lender in writing. Borrower shall
promptly conduct and complete all investigations, studies, sampling, and testing, and all remedial, removal, and other actions necessary to clean up, remove or otherwise respond to all Hazardous Substances on, from or affecting the Property as
required by all applicable Governmental Regulations with respect to Hazardous Substances. Upon reasonable prior notice to Borrower, Lender, its employees and agents, at Lender’s cost and expense, may, from time to time (whether before or after
the commencement of a foreclosure proceeding), during normal business hours (except if Lender, in its reasonable judgment, determines that there is an emergency, then at any time), enter and inspect the Property for the purpose of determining the
existence, location, nature and magnitude of any past or present release or threatened release of any Hazardous Substances into, onto, beneath or from the Property; provided, however, it being understood that if an Event of Default has occurred and
is continuing hereunder or under any other Loan Document with regard to any material environmental matter or if Lender determines that there may exist a condition which will result in a material breach of any representation, warranty or covenant
made by Borrower hereunder or under any of the other Loan Documents with respect to any material environmental matters, then, in any such event, Lender, its employees and agents may so inspect the Property at Borrower’s sole cost and expense.

 (2) Borrower hereby agrees to defend, indemnify and hold Lender, JPMorgan Chase Bank National Association and J.P. Morgan Investment
Management Inc. and each of their respective successors, assigns, partners, officers, directors, agents, attorneys, administrators, trustees, parents, subsidiaries, advisors, affiliates, beneficiaries, shareholders, representatives, servants and
employees (including, without limitation, any participants in the Loan) (hereinafter collectively referred to as the “Indemnitees”) harmless from and against any and all Losses and Liabilities (as hereinafter defined)
(including, without limitation, investigation, cleanup, removal and disposal costs, reasonable attorneys’ fees, reasonable consultants’ fees, disbursements and other out-of-pocket costs of defense reasonably incurred by the Indemnitees,
and reasonable costs of determining whether the Property is in compliance, and causing the Property to be in compliance, with Governmental Regulations) to the extent arising 

  
 16 

 
directly or indirectly from, out of or by reason of (A) the actual, alleged or threatened use, generation, manufacture, storage, treatment, release, threatened release, discharge, disposal,
transportation or the presence (either in the past, currently or in the future) of any Hazardous Substance at, from or affecting the Property or to or from the any other property, (B) Borrower’s failure to comply with any Governmental
Regulations relating to Hazardous Substances, (C) Lender’s exercise of its rights under this Security Instrument with respect to Hazardous Substances, or (D) the material breach of any covenants (or representation and warranty) of
Borrower under this Section 2.2(f), except to the extent that any of the foregoing shall result from the gross negligence or willful misconduct of the Indemnitees or shall arise as a result of a condition or circumstance first
arising after the taking of title to the Real Estate by Lender or any third party, whether as a result of an entry of judgment of foreclosure, acceptance by Lender of a deed in lieu of foreclosure, exercise of any power of sale, any other exercise
of similar remedies by Lender that result in the taking of title to the Real Estate by Lender or any third party, or otherwise. Notwithstanding anything herein to the contrary, if Borrower is not providing defense and indemnification satisfactory to
any Indemnitee, such Indemnitee, in its reasonable discretion, may engage its own attorneys to resist or defend, or assist therein with respect to any Losses and Liabilities, and Borrower shall pay, or, within ten (10) days of demand, shall
reimburse each Indemnitee for the payment of the reasonable fees and disbursements of said attorneys. Each Indemnitee shall have the right to settle such claim, action or proceeding with respect to Losses and Liabilities, without Borrower’s
consent, but with prior notice to Borrower. 
 (3) As used herein the term “Hazardous Substances” means all
materials and substances now or hereafter subject to any Governmental Regulations that pertain to hazardous substances or hazardous materials, including, without limitation, (i) all substances which are designated pursuant to
Section 311(b)(2)(A) of the Federal Water Pollution Control Act (“FWPCA”), 33 U.S.C. § 1251 et seq., (ii) any element, compound, mixture, solution, or substance which is designated pursuant to
Section 102 of the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq., (iii) any hazardous waste having the characteristics which are identified under
or listed pursuant to Section 3001 of the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., (iv) any toxic pollutant listed under Section 307(a) of FWPCA, (v) any hazardous air pollutant which is listed under
Section 112 of the Clean Air Act, 42 U.S.C. § 7401 et seq., (vi) any imminently hazardous chemical substance or mixture with respect to which action has been taken pursuant to Section 7 of the Toxic Substances Control Act,
15 U.S.C. § 2601 et seq., (vii) “hazardous materials” within the meaning of the Hazardous Materials Transportation Act, 49 U.S.C. § 1802 et seq., (viii) petroleum or petroleum by-products, (ix) asbestos
and any asbestos containing materials, (x) any radioactive material or substance, (xi) all toxic wastes, hazardous wastes and hazardous substances as defined by, used in, controlled by, or subject to all implementing regulations adopted
and publications promulgated pursuant to the foregoing statutes, (xii) bacteria, mold or fungus, and (xiii) any other hazardous or toxic substance or pollutant identified in or regulated under any other applicable federal, state or local
Governmental Regulations (including, without limitation, all applicable state, regional, county, municipal and local environmental, sanitation and health, conservation and pollution, waste disposal and control, clean air and water laws, codes, rules
and regulations, to the extent applicable to the Property). Notwithstanding the foregoing, Hazardous Substances shall not include cleaning and similar supplies used in the ordinary maintenance and repair of the Property and used, stored or disposed
of in compliance with all Governmental Regulations. 

  
 17 

 (4) Intentionally Omitted. 

(5) Borrower shall notify Lender promptly upon acquiring actual knowledge of any Environmental Condition (as hereinafter defined) and shall,
upon the prior written request of Lender, provide periodic written reports to Lender concerning the nature and extent of such Environmental Condition, the actions proposed to be taken by Borrower to remediate such Environmental Condition, the
progress of Borrower in remediating such Environmental Condition and the completion of such remediation, together with copies of any written notices and other written communications concerning such Remediation between Borrower and any Governmental
Authority. For purposes hereof, the term “Environmental Condition” shall mean (A) any presence of Hazardous Substances in violation of any applicable Governmental Regulations relating to Hazardous Substances on the
Property not expressly disclosed in the Environmental Reports or (B) any disposal, escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Substance at, from or affecting the Property in violation of any Governmental
Regulations. 
 (6) The obligations of Borrower and the rights of the Indemnitees under this Section 2.2(f) are in
addition to and not in substitution of the obligations of Indemnitor under the Environmental Indemnity. Subject to the last sentence of this Section 2.2(f)(6), the obligations and indebtedness of Borrower and the rights of the
Indemnitees under this Section 2.2(f) shall survive the repayment of the Obligations and the termination, release, satisfaction, cancellation or assignment of the Note, this Security Instrument and the other Loan Documents.
Borrower’s obligations under this Section 2.2(f) shall expire as of the Release Date (as hereinafter defined). For purposes hereof, the “Release Date” shall mean the second anniversary of the date on
which the Obligations are repaid in full, provided that: 
 (i) as of the second anniversary of the date on which the Obligations are repaid
in full, Lender shall have received new environmental reports prepared by a duly licensed environmental engineer reasonably acceptable to Lender of the same scope as the Environmental Reports, performed, at Borrower’s sole cost and expense,
within thirty (30) days of the proposed Release Date, and not reflecting any Environmental Conditions; and 
 (ii) there has
been no change, between the date hereof and the date the Obligations are paid in full, in any Governmental Regulations, the effect of which change may be to make a lender or mortgagee liable with respect to any matter for which any Indemnitee is
entitled to indemnification pursuant to this Section 2.2(f), notwithstanding that the Obligations are paid in full; and 

(iii) the liability of Borrower shall not terminate with respect to (A) any litigation, action, dispute, claim, notice of
violation, citation, order or directive which is outstanding at the proposed Release Date relating to any matters covered by this Section 2.2(f), and (B) any out-of-pocket costs or expenses (including reasonable
attorneys’ fees) reasonably incurred by the Indemnitees in connection with the enforcement of Borrower’s obligations hereunder. 

  
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 (g) Operating Agreements. To Borrower’s actual knowledge, as of the date hereof,
Borrower has delivered to Lender true, correct and complete executed copies of any and all operating agreements, reciprocal easement agreements, parking agreements, declarations, service and maintenance contracts, and development agreements
(together with any and all amendments and supplements thereto and all agreements collateral therewith) pertaining to the Property (collectively, “Operating Agreements”). Borrower shall (i) perform or cause to be
performed its obligations under all Operating Agreements, (ii) enforce with reasonable diligence, but in any event short of termination, the reasonable performance by each party to any Operating Agreement of all of such party’s obligations
thereunder, and (iii) give Lender prompt written notice, and a copy, of any notice of default, event of default, termination or cancellation sent or received by Borrower with respect to an Operating Agreement. Borrower shall not enter into any
new Operating Agreements or permit the amendment, modification, termination or surrender of any Operating Agreement without the prior written consent of Lender, provided, however, no such consent shall be required with regard to any Operating
Agreements which (x) are terminable on thirty (30) days’ notice, without penalty or other cost to Borrower or any successor or assignee, or (y) provide for normal and customary building services such as cleaning contracts,
elevator maintenance, fire safety, valet trash, internet, cable and similar building services. Borrower shall provide copies of any new or amended Operating Agreements to Lender on a monthly basis. 

(h) Management Agreements. Borrower has delivered to Lender a copy of the Property Management Agreement and any other existing property
management agreements and/or brokerage agreements, if any, affecting the Property (collectively, the “Management Agreements”). Borrower shall not enter into any new Management Agreements or permit the amendment or
modification of the Management Agreements, in any material respect, in each case, without the prior written consent of Lender, not to be unreasonably withheld. 

2.3 Insurance. 
 (a)
Coverages. Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the coverages set forth herein: 

(i) comprehensive all risk insurance on the Improvements and the Personal Property, including windstorm coverage, in each case
(A) in an amount equal to the lesser of (1) 100% of the “Full Replacement Cost,” which for purposes of this Security Instrument shall mean actual replacement value (exclusive of costs of excavations, foundations,
underground utilities and footings) and (2) $31,100,000 plus the business income/rental loss coverage required in Section 2.3(a)(ii) below, in either case written on a replacement cost basis with a waiver of depreciation;
(B) containing either an agreed amount endorsement or a waiver of all co- insurance provisions; (C) providing for a deductible of not greater than $25,000 except with respect to earthquake and windstorm/named storm which may provide for no
deductible in excess of 5% of the total insurable value of the Property; (D) if any of the Improvements or the use of the Property shall at any time constitute a legal non-conforming structure or use, Borrower shall obtain an
“Ordinance or Law Coverage” or “Enforcement” endorsement, which shall include sufficient coverage for (1) costs to comply with building and zoning codes and ordinances, (2) demolition costs,
and (3) increased costs of construction; and (E) with respect to the construction of any new Improvements, written on a so-called builder’s risk completed value form on a non-reporting basis; 

  
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 (ii) business income insurance (A) with loss payable to Lender; (B) covering
all risks required to be covered by the insurance provided for in Section 2.3(a)(i); (C) on an agreed value actual loss sustained basis in an amount equal to 100% of the projected effective gross income from the Property for
a period of twelve (12) months; and (D) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be
insured until such income either returns to the same level it was at prior to the loss, or the expiration of six (6) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs, and
notwithstanding that the policy may expire prior to the end of such period; and (E) if the Borrower is required to obtain an Ordinance or Law Coverage or Enforcement endorsement pursuant to Section 2.3(a)(i)(D), coverage for
the increased period of restoration. The amount of such business income insurance shall be determined prior to the date hereof and at least once each year thereafter based on Borrower’s reasonable estimate of the gross income from the Property
for the succeeding twelve (12) month period. All insurance proceeds payable to Lender pursuant to this Section 2.3(a)(ii) shall be held by Lender and shall be applied to the Obligations from time to time due and payable
hereunder and under the Note; provided, however, that nothing herein contained shall be deemed to relieve Borrower of its obligations to pay the Obligations on the respective dates of payment provided for in the Note, this Security Instrument and
the other Loan Documents, except to the extent such amounts are actually paid out of the proceeds of such business income insurance; 

(iii) if any portion of the Improvements is currently or at any time in the future located in a federally designated
“special flood hazard area”, Borrower shall obtain flood hazard insurance in an amount equal to (x) the maximum amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster
Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended plus (y) such greater amount as Lender shall require; 

(iv) the insurance required under this Section 2.3(a)(i), (ii) and (vii) above shall cover perils of terrorism
insurance for Certified Acts of Terrorism (as such terms are defined in means the Terrorism Risk Insurance Program Reauthorization Act of 2007) in an amount equal to the Full Replacement Cost plus twelve (12) months of business income insurance
consistent with the requirements of Section 2.3(a)(i), (ii) and (vii); 
 (v) steam boiler and machinery breakdown
direct damage insurance, in an amount acceptable to Lender, for all boilers and machinery which form a part of the Property, if applicable; 

(vi) commercial general liability insurance against claims for personal injury, bodily injury, death or property damage occurring upon, in or
about the Property, such insurance (A) to be on the “occurrence” form with a combined single limit (including “umbrella” coverage in place) of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate with
excess “umbrella coverage” in an amount not less than $25,000,000 providing for a deductible of not greater than $5,000; (B) to continue at not less than the aforesaid limit until required to be changed by Lender in writing by reason
of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent
contractors; and (4) contractual liability for all insured contracts, to the extent the same is available; 

  
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 (vii) at all times during which structural construction, material repairs or alterations are
being made with respect to the Improvements, owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability insurance policy; 

(viii) if Borrower owns or operates motor vehicles, motor vehicle liability coverage for all owned and non-owned vehicles, including rented
and leased vehicles containing minimum limits reasonably acceptable to Lender; 
 (ix) if Borrower has employees, workers’
compensation, subject to the statutory limits of the state in which the Property is located, and employer’s liability insurance with a limit of at least $1,000,000 per accident and per disease per employee, and $1,000,000 aggregate coverage for
disease in respect of any work or operations on or about the Property, or in connection with the Property or its operation; 
 (x) a
blanket fidelity bond or “Employee Dishonesty” coverage insuring against losses resulting from dishonest or fraudulent acts committed by personnel retained in connection with the operation of the Property, if applicable; and 

(xi) such other insurance and in such amounts as Lender from time to time may reasonably request against such other insurable hazards which
at the time are commonly insured against for property similar to the Property located in or around the region in which the Property is located. 

(b) Blanket Insurance; Separate Insurance. Borrower shall not obtain (i) any umbrella or blanket liability or casualty Policy
unless, in each case, such Policy is approved in advance in writing by Lender and Lender’s interest is included therein as provided in this Security Instrument and such Policy is issued by a Qualified Insurer (as hereinafter defined), or
(ii) separate insurance concurrent in form or contributing in the event of loss with that required in Section 2.3(a) to be furnished by, or which may be reasonably required to be furnished by, Borrower. In the event Borrower
obtains separate insurance or an umbrella or a blanket Policy, Borrower shall notify Lender of the same and shall cause certified copies of each Policy to be delivered as required in Section 2.3(e). Any blanket insurance Policy
shall specifically allocate to the Property the amount of coverage from time to time required hereunder and shall otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the provisions of
Section 2.3(a). 
 (c) Insurers. All policies of insurance required under this
Section 2.3 (collectively, the “Policies” and each, individually, a “Policy”) shall be issued by financially sound and responsible insurance companies authorized and/or licensed to
do business in the state in which the Property is located and approved by Lender. The insurance companies must have a general policy rating of “A” or better and a financial class of “X” or better by A.M. Best Company, Inc., and a
claims paying ability/financial strength rating of “A” (or its equivalent) or better by any of the rating agencies (any of such companies being referred to individually herein  

  
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as a “Qualified Insurer”), and shall be subject to the approval of Lender as to amount, content, form and expiration date; it being agreed that the approval by Lender
of any insurer shall not be construed to be a representation, certification or warranty of its solvency, and no approval by Lender as to the amount, type and/or form of any insurance shall be construed to be a representation, certification or
warranty of its sufficiency. Notwithstanding the foregoing, Lender shall accept Starr Surplus, rated ‘A XV’ with AM Best as the insurer for the property Policy, for so long as the rating of such insurer is not withdrawn or downgraded below
date hereof. In the event such insurer’s rating is withdrawn or downgraded below the rating, Borrower shall promptly notify the Lender and replace such insurer with an insurer meeting the rating requirements set forth herein. 

(d) Insured Parties. All Policies provided for or contemplated by Section 2.3(a) hereof, shall name Borrower as a named insured.
The insurance required under subsections (i) through (v), inclusive, of Section 2.3(a) shall name Lender, its successors and/or assigns, as mortgagee/loss payee under a Standard Mortgage Clause and a Lender’s Loss
Payable Endorsement or an equivalent standard form attached to, or otherwise made a part of such policy in favor of Lender, and provide that the insurers waive any and all subrogation rights against Lender. The insurance maintained under subsections
(vi) through (x), inclusive, of Section 2.3(a) shall name Lender, its successors and/or assigns, as an additional insured. It is agreed that, and each property policy shall expressly state that, losses shall be payable
jointly to Lender and Borrower notwithstanding (1) any act or negligence of Borrower or its agents or employees which might, absent such agreement, result in a forfeiture of all or part of such insurance payment, (2) the occupation or use
of the Property or any part thereof for purposes more hazardous than permitted by the terms of such policy, (3) any foreclosure or other action or proceeding taken pursuant to this Security Instrument, or (4) any change in title to or
ownership of the Property or any part thereof. The Policy shall not be canceled without at least thirty (30) days written notice to Lender, except ten (10) days’ notice for non-payment of premium. The issuers thereof shall give
written notice to Lender if the issuers elect not to renew prior to its expiration. Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 

(e) Delivery of Policies. If not previously delivered to Lender, Borrower shall deliver to Lender no later than thirty (30) days
after the date hereof certified copies of the existing Policies providing the insurance coverage required under Section 2.3(a) marked “premium paid” or accompanied by evidence satisfactory to Lender of payment of the
premiums due thereunder (the “Insurance Premiums”) annually in advance. In addition, no later than thirty (30) days prior to the expiration dates of the Policies which Borrower is now or hereafter required to maintain
hereunder, Borrower shall deliver to Lender certified copies of new or renewal Policies (also marked “premium paid” or accompanied by evidence satisfactory to Lender of payment of the Insurance Premiums due thereunder annually in advance),
together with certificates of insurance therefor, setting forth, among other things, the amounts of insurance maintained, the risks covered by such insurance and the insurance company or companies which carry such insurance. If requested by Lender,
Borrower shall furnish verification of the adequacy of such insurance by an independent insurance broker or appraiser acceptable to Lender. Under no circumstances shall Borrower be permitted to finance the payment of any portion of the Insurance
Premiums. 

  
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 (f) Failure to Deliver Policies. If at any time Lender is not in receipt of written
evidence that all insurance required hereunder is in full force and effect, Lender shall have the right, without notice to Borrower to take such action as Lender deems necessary to protect its interest in the Property, including, without limitation,
the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate, and all expenses incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect, together with interest at the
Default Rate (as defined in the Note) from the date incurred by Lender, shall be secured by this Security Instrument and payable by Borrower to Lender immediately upon Lender’s demand. 

(g) Transfer of Title. In the event of foreclosure of this Security Instrument or other transfer of title or assignment of the
Property, by reason of a default hereunder, in extinguishment, in whole or in part, of the Obligations, all right, title and interest of Borrower in and to all policies of insurance (to the extent already paid for and assignable) required under this
Section 2.3 or otherwise then in force with respect to the Property (to the extent already paid for and assignable) and all proceeds payable thereunder and unearned premiums thereon shall immediately vest in the purchaser or other
transferee of the Property. 
 2.4 Damage and Destruction. 

(a) Borrower’s Obligations. In the event of any damage to or loss or destruction of the Property that shall require $50,000 or
more, in the aggregate, to repair or restore, Borrower shall (i) promptly notify Lender of such event and take such steps as shall be necessary to preserve any undamaged portion of the Property, and (ii) unless otherwise instructed by
Lender, promptly, regardless of whether the insurance proceeds, if any, shall be sufficient for the purpose (provided that Lender shall, subject to Section 2.4(b) hereof, make available any such insurance proceeds received by
Lender), commence and diligently pursue to completion the restoration, replacement and rebuilding of the Property, as nearly as possible to their value, condition and character immediately prior to such damage, loss or destruction in a good and
workmanlike manner and in accordance with all applicable Governmental Regulations and insurance requirements and otherwise pursuant to plans and specifications reasonably approved by Lender and developed in connection with such restoration. 

(b) Lender’s Rights; Application of Proceeds. In the event that any portion of the Property is damaged, lost or destroyed, and
such damage, loss or destruction is covered, in whole or in part, by insurance described in Section 2.3, then, (i) Lender may, but shall not be obligated to, make proof of loss if not made promptly by Borrower, and is hereby
authorized and empowered by Borrower to settle, adjust or compromise any claims for damage, loss or destruction thereunder, (ii) each insurance company concerned is hereby authorized and directed to make payment therefor directly to Lender, and
(iii) Lender shall apply the insurance proceeds, first, to reimburse Lender for all reasonable costs and expenses, including, without limitation, adjustors’ and reasonable attorneys’ fees and disbursements, incurred in connection with
the collection of such proceeds, and, second, the remainder of such proceeds shall be applied, at Lender’s option, (x) in payment of all or any part of the Obligations, in the order and manner determined by Lender (provided that to the
extent that any Obligations shall remain outstanding after such application, such unpaid Obligations shall continue in full force and effect and Borrower shall not be excused in the payment thereof), (y) to the cure of any then current default

  
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hereunder, or (z) to the restoration, replacement or rebuilding, in whole or in part, of the portion of the Property so damaged, lost or destroyed, provided that any insurance proceeds held
by Lender to be applied to the restoration, replacement or rebuilding of the Property shall be so held without payment or allowance of interest thereon and shall be paid out from time to time upon compliance by Borrower with such provisions and
requirements as reasonably may be imposed by Lender. Borrower acknowledges and agrees that Lender shall have sole and exclusive dominion and control over such proceeds. Notwithstanding the foregoing, and provided no Event of Default shall have
occurred and be continuing under this Security Instrument, the Note or any of the other Loan Documents, Borrower may adjust losses aggregating not in excess of $275,000 per occurrence with respect to any casualty which is a Minor Casualty (as
hereinafter defined), provided such adjustment is carried out in a competent and timely manner with respect to restoration of the Property; provided further, however, that, in the event no Event of Default shall have occurred, (A) insurance
proceeds adjusted by Borrower as permitted pursuant to this sentence shall be used for the restoration of the Property (it being understood and agreed that (x) Borrower shall cause such restoration to be performed in a good and workmanlike
manner and in accordance with all applicable Governmental Regulations and insurance company requirements and recommendations and otherwise pursuant to plans and specifications developed for such restoration, (y) upon Lender’s request,
Borrower shall obtain and deliver to Lender a copy of all waivers of liens for all restoration work, and (z) upon Lender’s request, all construction and trade contracts and contracts for material, equipment, supplies and labor shall be
collaterally assigned to Lender, and Borrower shall cause the general contractor to cause all other parties thereto to agree to perform for the benefit of Lender, at the request of Lender, provided Lender shall pay them for their respective
services), and (B) Lender agrees to make the proceeds (less all reimbursable costs and expenses set forth in clause (iii) above) received in connection with a Minor Casualty available for the restoration of the Property on the terms and
conditions hereinafter set forth. 
 For the purpose of this Security Instrument, a “Minor Casualty” shall mean any
fire, earthquake, flood, water damage, other catastrophe or insured event occurring not later than nine (9) months prior to the Scheduled Maturity Date (as defined in the Note) which (I) does not result in an Environmental Condition, (II)
does not damage or render untenantable (including, without limitation, as a result of the inability to access leased premises) more than 20% of the rentable square footage of the Improvements, and (III) does not result in more than 20% of the
tenants terminating or having the right to terminate their Leases. In addition, Lender shall not be required to advance any proceeds for the restoration of the Property, even if a Minor Casualty, unless Borrower shall deliver to Lender, and Lender
shall approve in writing, the plans, specifications and construction budget for the repair and/or restoration of the Property and Lender shall determine that the Improvements located on the Real Estate can be restored so as to constitute a
commercially viable building of the same quality and use and having the same rentable square footage and the same number of apartment units as existed immediately before the fire, other catastrophe or insured event for the amounts set forth in the
construction budget. Upon receipt by Lender of proceeds from a Minor Casualty and/or if Lender, in its sole discretion, shall otherwise agree to make insurance proceeds from a non-Minor Casualty available for repair and restoration of the Property,
the following shall apply: 
 (i) The actual out-of-pocket costs to Lender (including, without limitation, reasonable legal fees, appraisal
fees, engineering surveys, consultants’ and architects’ 

  
 24 

 
charges and adjustors’ fees) incurred in settling or adjusting any claim and in reviewing and approving all plans (collectively, “Lender’s Costs”) shall
first be paid to Lender out of the proceeds of the insurance. Lender shall have the right, but not the obligation, to retain an architectural or engineering consultant at any time and from time to time, at Borrower’s sole cost and expense, to
examine plans, specifications, change orders and budgets with respect to such repair or restoration, the progress of same and to render reports and conduct site inspections with respect to the foregoing; 

(ii) The contractor and major subcontractors engaged to perform the restoration work shall be subject to the prior written approval of
Lender, such approval not to be unreasonably withheld, conditioned or delayed; 
 (iii) The general contractor shall deliver a performance
bond in respect of the work to be performed at the Property or a guarantee of such work in form, scope and substance acceptable to Lender from an entity acceptable to Lender or other substitute for such performance bond or guarantee acceptable to
Lender in its sole discretion and the construction contract shall contain a time of the essence completion date satisfactory to Lender. All construction and trade contracts and contracts for material, equipment, supplies and labor shall be
collaterally assigned to Lender and Borrower shall cause the general contractor to cause all other parties thereto to agree to perform for the benefit of Lender, at the request of Lender, provided Lender shall pay them for their respective services;

 (iv) Borrower shall procure and deliver to Lender, from a licensed architect selected by Borrower and approved by Lender, a certified
statement setting forth the estimated cost of restoration and that the proceeds of such insurance are, in such architect’s reasonable estimation (after deducting all of the Lender’s Costs and such architect’s fees and all other
estimated costs for architects, plans, permits and approvals and other so-called “soft costs”), sufficient to perform the repair and/or restoration of the Property using similar quality materials as those presently installed therein. If
such proceeds are insufficient, and if Lender nevertheless agrees to make such proceeds available for repair and/or restoration, Lender may require Borrower to deposit with Lender (with interest) the amount of any such deficiency, which funds shall
be disbursed first in payment of such work. In addition, if thereafter it appears, at any time and from time to time, that the remaining proceeds shall be insufficient to pay for the remaining costs of construction, then Borrower shall deposit the
amount of such deficiency (from time to time determined) with Lender for use as aforesaid; 
 (v) All proceeds allocated for repair and/or
restoration shall be disbursed by Lender (not more frequently than monthly) based on the percentage of the work completed against a certification therefor by the aforesaid architect, invoices for the work to be paid for, waivers of lien for all
prior work for which a payment was made and a title endorsement for the Property showing no additional exceptions to title of the Property other than the Permitted Encumbrances. In addition, prior to any disbursement of proceeds, Borrower must
certify to Lender that (A) Borrower incurred the costs in the amount of the requested advance (as evidenced by a draw request signed by the general contractor and/or paid receipts), (B) such costs have not been the basis for any previous
requisition, (C) there has been no change in Borrower’s financial condition which would have an adverse effect, as reasonably determined by Lender, on the ability of Borrower to complete the repairs and/or restorations in question in

  
 25 

 
accordance with the terms of this Security Instrument, and (D) Borrower has no defenses, counterclaims or offsets to its obligations under the Loan Documents, and that, to Borrower’s
actual knowledge, there exists no Event of Default under the Loan Documents or event which with the giving of notice or passage of time, or both, would constitute an Event of Default under the Loan Documents. Lender shall be entitled to retain up to
ten (10%) percent of the amount of each such requisition unless the amount of the requisition already reflects ten (10%) percent retainage by Borrower. Such retainage shall be paid on a trade by trade basis upon final completion of the
work by the applicable trade free of liens. If Lender shall have engaged an architectural or engineering consultant, then, as an additional precondition to any disbursement of proceeds hereunder, such consultant shall have approved, in writing, the
progress of the work, conformity of the work with the approved plans and specifications and the quality and percentage of the work completed. For purposes of this provision, all work shall be deemed completed and all retainage shall be released upon
delivery to Lender of the following, all in form and substance satisfactory to Lender: (x) evidence that all applicable licenses, permits and approvals (including, without limitation, certificates of occupancy) related to the work for which
payment of the retainage therefor is sought have been obtained, (y) the certifications of Borrower’s architect, the general contractor and Lender’s consulting architect or engineering consultant, if any, that such work has been
completed in accordance with the approved plans and specifications (and approved change orders) therefor, and (z) all of the certificates, statements, waivers, title endorsements and other proofs required hereunder as a condition to any
disbursement; 
 (vi) No Event of Default or event which with the giving of notice or lapse of time, or both, would constitute an Event of
Default hereunder or under any other Loan Document shall exist; and 
 (vii) All work shall be performed in a good and workmanlike manner
and in accordance with all applicable Governmental Regulations and insurance company requirements and recommendations and otherwise pursuant to plans and specifications approved by the aforesaid architect. 

(c) Not Trust Funds. Subject to Borrower’s right to adjust losses aggregating not in excess of $275,000 per occurrence as
described in Section 2.4(b) above, in the event that Borrower shall have received all or any portion of such insurance proceeds or any other proceeds in respect of such damage or destruction, Borrower, upon demand from Lender,
shall pay to Lender an amount equal to the amount so received by Borrower, to be applied as Lender shall have the right pursuant to clause (iii) of Section 2.4(b). Notwithstanding anything herein or at law or in equity to the
contrary, none of the insurance proceeds or payments in lieu thereof paid to Lender as herein provided shall be deemed trust funds and Lender shall be entitled to dispose of such proceeds as provided in this Section 2.4. Borrower
expressly assumes all risk of loss, including a decrease in the use, enjoyment or value, of the Property from any casualty whatsoever, whether or not insurable or insured against. 

(d) Effect on the Obligations. Notwithstanding any fire or other casualty referred to in this Section 2.4 causing
injury to or decrease in value of the Property, or any interest therein, Borrower shall continue to pay and perform the Obligations as provided herein. Any reduction in the Obligations resulting from an application of insurance proceeds shall be

  
 26 

 
deemed to take effect only on the date of receipt by Lender of such insurance proceeds and application against the Obligations, provided that if prior to the receipt by Lender of such
insurance proceeds the Property shall have been sold on foreclosure of this Security Instrument, or shall have been transferred by deed in lieu of foreclosure of this Security Instrument, Lender shall have the right to receive the aforesaid
insurance proceeds to the extent of any deficiency found to be due upon such sale, with legal interest thereon together with reasonable attorneys’ fees and disbursements incurred by Lender in connection with the collection thereof.
Notwithstanding anything herein to the contrary, if Lender applies insurance proceeds to the reduction of the Obligations, no Make-Whole Amount (as defined in the Note) shall be payable with respect to any such application of proceeds by Lender or,
to the extent the application of such proceeds is greater than twenty percent (20%) of the Obligations and such application of proceeds materially restricts Borrower’s ability to rebuild the Property, with respect to Borrower’s
payment of the entire unpaid balance of the Obligations thereafter. The provisions of this Section 2.4 shall survive the repayment, release, satisfaction and termination of this Security Instrument. 

2.5 Condemnation. 
 (a)
Borrower’s Obligations; Proceedings. Borrower, promptly upon obtaining actual knowledge of any pending or threatened institution of any proceedings for the condemnation of the Property, or any part or interest therein or of any right of
eminent domain, or of any other proceedings arising out of injury or damage to or decrease in the value of the Property (including a change in grade of any street), or any part thereof or interest therein (a “Taking”), will
notify Lender of the threat or pendency thereof. Lender may participate in any such proceedings, at Borrower’s sole cost and expense, and Borrower from time to time will execute and deliver to Lender all instruments reasonably requested by
Lender or as may be required to permit such participation. Borrower shall, at its expense, diligently prosecute any proceedings involving a Taking, shall deliver to Lender copies of all papers served in connection therewith and shall consult and
cooperate with Lender, its attorneys and agents, in the carrying on and defense of any such proceedings; provided that no settlement of any such proceeding shall be made by Borrower without Lender’s prior written consent, not to be unreasonably
withheld. 
 (b) Lender’s Rights to Awards. All proceeds of condemnation awards or proceeds of sale in lieu of condemnation, and
all judgments, decrees and awards for injury or damage to the Property (an “Award” or “Awards”) are hereby assigned and shall be paid to Lender. Borrower agrees to execute and deliver such further
assignments thereof as Lender may request and authorizes Lender to collect and receive the same, to give receipts and acquittances therefor, and to appeal from any such judgment, decree or award. Lender shall in no event be liable or responsible for
failure to collect, or exercise diligence in the collection of, any of the same. 
 (c) Application of Awards. Lender shall have the
right to apply any Awards first, to reimburse Lender for all reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements incurred in connection with the proceeding in question or the collection of
such amounts, and, second, the remainder thereof as provided in Section 2.4(b) for insurance proceeds held by Lender. Notwithstanding the foregoing, and 

  
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provided no Event of Default shall have occurred under this Security Instrument, the Note or any of the other Loan Documents, Borrower may adjust Awards that shall not exceed $275,000, in the
aggregate, per occurrence, with respect to a Minor Taking (as hereinafter defined), provided such adjustment is carried out in a competent and timely manner with respect to restorations of the Property; provided further, however, that, in the event
no Event of Default shall have occurred and be continuing, Awards adjusted by Borrower as permitted pursuant to this sentence shall be used for the restoration of the Property (it being understood and agreed that (i) Borrower shall cause such
restoration to be performed in a good and workmanlike manner and in accordance with all applicable Governmental Regulations and insurance company requirements and recommendations and otherwise pursuant to plans and specifications developed for such
restoration, (ii) upon Lender’s request, Borrower shall obtain and deliver to Lender a copy of all waivers of liens for all restoration work, and (iii) upon Lender’s request, all construction and trade contracts and contracts for
material, equipment, supplies and labor shall be collaterally assigned to Lender and Borrower shall cause the general contractor to cause all other parties thereto to agree to perform for the benefit of Lender, at the request of Lender, provided
Lender shall pay them for their respective services). For the purpose of this Security Instrument, a “Minor Taking” shall mean any Taking occurring not later than nine (9) months prior to the Scheduled Maturity Date
which (x) does not unduly restrict or limit access to the Property, (y) affects less than 20% of the rentable square footage of the Improvements, and (z) does not result in more than 20% of the tenants at the Property terminating or
having the right to terminate their Leases. In addition, Lender shall not be required to advance any Awards for the restoration of the Property unless Borrower shall deliver to Lender, and Lender shall approve in writing, the plans, specifications
and construction budget for the restoration of the Property and Lender shall determine that the Improvements located on the Real Estate can be restored so as to constitute a commercially viable building of the same quality and having the same
rentable square footage and the same number of apartment units as existed immediately before the Taking for the amounts set forth in the construction budget. Upon receipt by Lender of an Award from a Minor Taking and/or if Lender, in its sole
discretion, shall otherwise elect to make such Awards available for the restoration of the Property, the following shall apply: 
 (i) The
actual out-of-pocket costs to Lender (including, without limitation, legal fees, appraisal fees, engineering surveys, consultants’ and architects’ charges and adjustors’ fees) reasonably incurred in connection with the recovery of the
Award and in reviewing and approving all plans (collectively, “Lender’s Award Costs”) shall first be paid to Lender out of the Award. Lender shall have the right, but not the obligation, to retain an architectural or
engineering consultant at any time and from time to time, at Borrower’s sole cost and expense, to examine plans, specifications, change orders and budgets with respect to such restoration, the progress of same and to render reports and conduct
site inspections with respect to the foregoing; 
 (ii) The contractor and major subcontractors engaged to perform the restoration work
shall be subject to the prior written approval of Lender, such approval not to be unreasonably withheld, conditioned or delayed; 

  
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 (iii) The general contractor shall deliver a performance bond in respect of the work to be
performed at the Property or a guarantee of such work in form, scope and substance reasonably acceptable to Lender from an entity reasonably acceptable to Lender or other substitute for such performance bond or guarantee acceptable to Lender in its
sole discretion and the construction contract shall contain a time of the essence completion date satisfactory to Lender. All construction and trade contracts and contracts for material, equipment, supplies and labor shall be collaterally assigned
to Lender and Borrower shall cause the general contractor to cause all other parties thereto to agree to perform for the benefit of Lender, at the request of Lender, provided Lender shall pay them for their respective services; 

(iv) Borrower shall procure and deliver to Lender, from a licensed architect selected by Borrower and approved by Lender, a certified
statement setting forth the estimated cost of restoration and that the Award, in such architect’s reasonable estimation, is (after deducting all of the Lender’s Award Costs and such architect’s fees and all other estimated costs for
architects, plans, permits and approvals and other so-called “soft costs”) sufficient to perform the restoration of the Property using similar quality materials as those presently installed therein. If such Award is insufficient, and if
Lender nevertheless agrees to make such Award available for the restoration, Lender may require Borrower to deposit with Lender (with interest) the amount of any such deficiency, which funds shall be disbursed first in payment of such work. In
addition, if thereafter it appears, at any time and from time to time, that the remaining portion of the Award shall be insufficient to pay for the remaining costs of construction, then Borrower shall deposit the amount of such deficiency (from time
to time determined) with Lender for use as aforesaid; 
 (v) All Awards allocated for restoration shall be disbursed by Lender (not more
frequently than monthly) based on the percentage of the work completed against a certification therefor by the aforesaid architect, invoices for the work to be paid for, waivers of lien for all prior work for which a payment was made and a title
endorsement for the Property showing no additional exceptions to title of the Property other than the Permitted Encumbrances. In addition, prior to any disbursement from the Award, Borrower must certify to Lender that (A) Borrower incurred the
costs in the amount of the requested advance (as evidenced by a draw request signed by the general contractor and/or paid receipts), (B) such costs have not been the basis for any previous requisition, (C) there has been no adverse change
in Borrower’s financial condition which would have a material adverse affect on the ability of Borrower to complete the repairs and/or restorations in question in accordance with the terms of this Security Instrument, and (D) Borrower has
no defenses, counterclaims or offsets to its obligations under the Loan Documents and that, to Borrower’s actual knowledge, there exists no Event of Default under the Loan Documents or event which with the giving of notice or passage of time,
or both, would constitute an Event of Default under the Loan Documents. Lender shall be entitled to retain up to ten (10%) percent of the amount of each such requisition unless the amount of the requisition already reflects ten
(10%) percent retainage by Borrower. Such retainage shall be paid on a trade by trade basis upon final completion of the work by the applicable trade free of liens. If Lender shall have engaged an architectural or engineering consultant, then,
as an additional precondition to any disbursement from the Award hereunder, such consultant shall have approved, in writing, the progress of the work, conformity of the work with the approved plans and specifications and the quality and percentage
of the work completed. For purposes of this provision, all work shall be deemed completed and all retainage shall be released upon delivery to Lender of the following, all in form and substance satisfactory to Lender: (x) evidence that all
applicable licenses, permits and approvals (including, without limitation, certificates of occupancy) related to the work for which payment of the retainage therefor is sought have been obtained, (y) the

  
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certifications of Borrower’s architect, the general contractor and Lender’s consulting architect or engineering consultant, if any, that such work has been completed in accordance with
the approved plans and specifications (and approved change orders) therefor, and (z) all of the certificates, statements, waivers, title endorsements and other proofs required hereunder as a condition to any disbursement; 

(vi) No Event of Default or event which with the giving of notice or lapse of time, or both, would constitute an Event of Default hereunder
or under any Loan Document shall exist; and 
 (vii) All work shall be performed in a good and workmanlike manner and in accordance with
all Governmental Regulations and insurance company requirements and recommendations and otherwise pursuant to plans and specifications approved by the aforesaid architect. 

(d) Not Trust Funds. Subject to Borrower’s right to adjust Awards not in excess of $275,000 in the aggregate, per occurrence, in
the event that Borrower shall have received all or any portion of such Award, Borrower, upon demand from Lender, shall pay to Lender an amount equal to the amount so received by Borrower. Notwithstanding anything herein or at law or in equity to the
contrary, none of the Awards paid to, or received by, Lender as herein provided shall be deemed trust funds and Lender shall be entitled to dispose of such proceeds as provided in this Section 2.5. 

(e) Effect on the Obligations. Notwithstanding any Taking, Borrower shall continue to pay and perform the Obligations as provided
herein. Any reduction in the Obligations resulting from an application of Awards shall be deemed to take effect only on the date of receipt by Lender of such Awards and application against the Obligations, provided that if prior to the receipt by
Lender of such Awards the Property shall have been sold on foreclosure of this Security Instrument, or shall have been transferred by deed in lieu of foreclosure of this Security Instrument, Lender shall have the right to receive the same to the
extent of any deficiency found to be due upon such sale, with legal interest thereon together with reasonable attorneys’ fees and disbursements incurred by Lender in connection with the collection thereof. Notwithstanding anything herein to the
contrary, if Lender applies Awards to the reduction of the Obligations, no Make-Whole Amount (as defined in the Note) shall be payable with respect to any such application of Awards by Lender or, to the extent the application of such Awards is
greater than twenty percent (20%) of the Obligations and such application of Awards materially restricts Borrower’s ability to rebuild the Property, with respect to Borrower’s payment of the entire unpaid balance of the Obligations
thereafter. The provisions of this Section 2.5 shall survive the repayment, release, satisfaction and termination of this Security Instrument. 

2.6 Liens and Liabilities. 

(a) Discharge of Liens. Borrower will pay, bond or otherwise discharge, from time to time when the same shall become due, all lawful
claims and demands of mechanics, materialmen, laborers and others which, if unpaid, might result in, or permit the creation of, a Lien on the Property or on the revenues, rents, issues, income or profits arising therefrom and, in general, Borrower
shall do, or cause to be done, at Borrower’s sole cost and expense, everything 

  
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necessary to fully preserve the lien and priority of this Security Instrument. For the purposes hereof, the term “Lien” (or “Liens” as the case may
be) shall mean any lien, mortgage, pledge, security interest, financing statement, or encumbrance of any kind (including any conditional sale or other title retention agreement or any lease in the nature thereof, but excluding Permitted
Encumbrances) and any agreement to give any lien, mortgage, pledge, security interest, or other encumbrance of any kind. 
 (b) Other
Debt/Creation of Liens. Borrower will not, without Lender’s consent, incur any other debt, whether unsecured or secured by all or any portion of the Property. In addition, Borrower will not create, place or permit to be created or placed,
or through any act or failure to act, acquiesce in the placing of, or allow to remain, any Lien against or covering the Property, which is prior to, on a parity with or subordinate to the lien of this Security Instrument. If any of the foregoing
becomes attached to the Property without such consent, Borrower will immediately cause the same to be discharged and released. Notwithstanding the above to the contrary, Borrower may incur unsecured trade payables, unsecured operational debt and
Permitted Equipment Leases (defined below), exclusive of real property taxes, in each case, not represented by a note and which are incurred in the ordinary course of Borrower’s ownership and operation of the Property, in amounts reasonable and
customary for similar properties and in all events not exceeding, in the aggregate, at any one time (other than with respect to the financing of capital expenditures approved in writing by Lender), 2% of the original Principal Amount (as defined in
the Note) of the Loan (“Permitted Trade Payables”). 
 The term “Permitted Equipment
Leases” shall mean equipment leases or other similar instruments entered into with respect to the personal property at the Property; provided that, in each case, such equipment leases or similar instruments (i) are entered into on
commercially reasonable terms and conditions and (ii) relate to personal property which is (A) used in connection with the operation and maintenance of the Property in the ordinary course of Borrower’s business and (B) readily
replaceable without material interference or interruption to the operation of the Property. 
 (c) No Consent. Nothing in the
Loan Documents shall be deemed or construed in any way as constituting the consent or request by Lender, express or implied, to any contractor, subcontractor, laborer, mechanic or materialman for the performance of any labor or the furnishing of any
material for any improvement, construction, alteration or repair of the Property. Borrower further agrees that Lender does not stand in any fiduciary relationship to Borrower. 

2.7 Taxes and Other Charges. 

(a) Taxes on the Property. Borrower will pay prior to delinquency and before any penalty, interest or cost for non-payment thereof may
be added thereto, (i) all taxes, assessments, vault, water and sewer rents, rates, charges and assessments, levies, inspection and license fees and other governmental and quasi-governmental charges, general and special, ordinary and
extraordinary, foreseen and unforeseen, heretofore or hereafter assessed, levied or otherwise imposed against or upon, or which may become a Lien upon, the Property, or any portion thereof, including, without limitation, any taxes with respect to
the Rents and Profits or arising in respect of the occupancy, use or possession of the Real Estate and Improvements, 

  
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(ii) income taxes, franchise taxes, and other taxes owing by Borrower the non-payment of which would result in a Lien against the Property or otherwise diminish or impair the security of
this Security Instrument and (iii) all taxes, charges, filing, registration, and recording fees, excises and levies imposed upon Lender by reason of or in connection with the execution, delivery and/or recording of the Loan Documents or the
ownership of this Security Instrument or any Security Instrument supplemental hereto, any security instrument with respect to any equipment or any instrument of further assurance, and all corporate, stamp and other taxes required to be paid in
connection with the Obligations (excluding, however, income taxes of Lender) (collectively, “Impositions”). Borrower will also pay any penalty, interest or cost for non-payment of
Impositions which may become due and payable, and such penalties, interest or cost shall be included within the term Impositions. 
 (b)
Receipts. Unless Borrower is making monthly deposits pursuant to Section 2.8 or unless Lender otherwise directs, Borrower will furnish to Lender upon Lender’s request, written proof of payment of the Impositions at the
time such payment is made, and thereafter, upon Borrower’s receipt, furnish to Lender validated receipts showing payment in full of all Impositions. 

(c) Additional Taxes. In the event of the enactment of or change in (including a change in interpretation of) any applicable
Governmental Regulation (i) deducting or allowing Borrower to deduct from the value of the Property for the purpose of taxation any Lien or security interest thereon, or (ii) imposing, modifying or deeming applicable any reserve or special
requirement against deposits of Lender, or (iii) subjecting Lender to any tax or changing in any way any Governmental Regulation for the taxation of mortgages, deeds of trust, deeds to secure debt or security agreements or other liens or debts
secured thereby, the interest of the grantee, mortgagee, Lender, trustee or secured party in the property covered thereby, or the manner of collection of such taxes, in each such case, so as to affect this Security Instrument, the Obligations or
Lender, and the result is to increase the taxes imposed upon or the cost to Lender or to reduce the amount of any payments receivable hereunder, then, and in any such event, Borrower shall, on demand, pay to Lender additional amounts to compensate
for such increased costs or reduced amounts, provided that if any such payment or reimbursement shall be unlawful or would constitute usury or render the Obligations wholly or partially usurious under applicable law, then Lender may, at its option,
declare the Obligations due and payable (without penalty or fee) after providing Borrower with forty-five (45) days advance written notice thereof or require Borrower to pay or reimburse Lender for payment of the lawful and non-usurious portion
thereof. 
 (d) Contest of Certain Claims. Notwithstanding anything to the contrary contained in Section 2.6 or
Section 2.7 hereof, Borrower may, to the extent and in the manner permitted by Governmental Regulations, at Borrower’s sole cost and expense, contest Governmental Regulations, Impositions or any other claim that can lead to a
Lien against the Property, and the failure of Borrower to pay the contested Imposition or other claim that may result in a Lien against the Property, pending such contest, shall not be or become a default, provided that (A) Borrower shall
notify Lender of Borrower’s intent to contest such payment at least ten (10) Business Days prior to commencing the contest; (B) Borrower shall deposit such payments or post such security as may be required by Governmental Regulation
in connection with such contest; (C) Borrower shall furnish to Lender a cash deposit reasonably satisfactory to 

  
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Lender, or an indemnity bond satisfactory to Lender, with a surety reasonably satisfactory to Lender, to assure payment (including, without limitation, interest, fines and penalties) of, and/or
compliance with, the matters under contest and/or to prevent any sale, loss or forfeiture of all or any part of the Property; (D) Borrower diligently and in good faith pursues such contest by appropriate legal proceedings which shall operate to
prevent the enforcement or collection of the same and/or the sale, loss or forfeiture of all or any part of the Property to satisfy the same; (E) Borrower, promptly upon final determination thereof, shall pay the amount of any such claim so
determined, together with all costs, fines, interest and penalties payable in connection therewith; (F) the failure to comply with the applicable Governmental Regulations or to make payment of any Imposition or other claim shall not subject
Lender to any civil or criminal liability or to any Losses and Liabilities; and (G) such contest shall not otherwise interfere with the payment of any amounts required to be paid under this Security Instrument or any of the other Loan Documents
or the satisfaction of any other Obligations. 
 2.8 Tax and Insurance Deposits. At Lender’s election and subject to the terms
and provisions of this Section 2.8, Lender may require, at any time during the term of the Loan, at Borrower’s expense, that Borrower deposit with Lender, or any servicer or financial institution that Lender may from time to
time designate (collectively, the “Depository”), into an account in the name of Lender, monthly, one-twelfth (l/12th) of the annual premiums for insurance and one-twelfth (1/12th) of the amount of all Impositions
estimated by Lender to be due for the immediately succeeding calendar year. In addition, if required by Lender, Borrower shall also deposit with the Depository a sum of money which, together with the aforesaid monthly installments, will be
sufficient to make each of said payments of Impositions and premiums at least thirty (30) days before such payments are due. All interest (if any) earned on the funds held by the Depository, less Depository’s administrative charges, shall
be credited to, and remain in an account with the Depository, but the amount thereof shall be credited against future deposit obligations under this Section 2.8. Borrower shall have no right to require that the Depository hold
funds herein in an interest bearing account and Lender shall bear no liability for the failure to achieve any particular rate of return or yield on funds held by the Depository. If the amount of any such payments is not ascertainable at the time any
such deposit is required to be made, the deposit shall be made on the basis of Lender’s reasonable estimate thereof, and, when such amount is fixed for the then-current year, Borrower shall promptly deposit any deficiency with the Depository,
or, in the event the estimate was in excess of the amount fixed, Lender shall refund to Borrower such excess amount. Notwithstanding the foregoing, by its acceptance of this Security Instrument, Lender shall be deemed to acknowledge and agree that
Borrower is not currently required to make the deposits pursuant to this Section 2.8, provided, however, that (i) in connection with deposits for Impositions, Lender retains the right to require Borrower to make the deposits
specified herein if an Event of Default or event which with the giving of notice or lapse of time, or both, would constitute an Event of Default hereunder or under any Loan Document shall exist and remain uncured, and (ii) in connection with
deposits for premiums for insurance, Lender shall not require Borrower to make such deposits provided that (A) no Event of Default or event which with the giving of notice or lapse of time, or both, would constitute an Event of Default
hereunder or under any Loan Document shall exist and remain uncured, (B) Borrower is maintaining the required insurance hereunder pursuant to a blanket insurance Policy approved by Lender in Lender’s sole and absolute discretion, and
(C) Borrower has provided Lender with evidence satisfactory to Lender of payment in advance of the annual Insurance Premiums. 

  
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 2.9 Inspection. Borrower will allow Lender and its authorized representatives to enter
upon and inspect the Property, and/or the books, records and accounts of Borrower at the office of Borrower or other Person maintaining such books, records and accounts (and in connection therewith, to make copies or extracts thereof as Lender shall
desire), upon not less than 48 hours prior notice at all times during regular business hours and will assist Lender and such representatives in effecting said inspection, provided, however, that in no event shall Lender conduct such an inspection
more frequently than once in any six month period. 
 2.10 Records; Reports and Audits; Maintenance of Records. 

(a) Borrower shall keep and maintain or will cause to be kept and maintained on a calendar year basis, in accordance with generally accepted
accounting principles consistently applied, proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower and all items of income and expense in connection with the operation of the Property or in connection
with any services, equipment or furnishings provided in connection with the operation of the Property, whether such income or expense be realized by Borrower or by any other Person whatsoever excepting tenants unrelated to and unaffiliated with
Borrower who have leased from Borrower portions of the Property for the purpose of occupying the same. 
 (b) Within ninety (90) days
following the end of each calendar year, Borrower shall furnish Lender: (i) income statements, balance sheets and cash flow statements of Borrower and the Property certified to Lender by an officer of Borrower (or after the occurrence of an
Event of Default, audited by a certified public accountant satisfactory to Lender) and stating that the same have been prepared in accordance with generally accepted accounting principles consistently applied, and (ii) a detailed rent roll for
the Property which shall list all expiring Leases and the applicable lease expiration dates. Prior to the end of each calendar year, Borrower shall furnish to Lender detailed operating and capital budgets with respect to the Property for the
following year (the “Annual Budget”). 
 (c) Within thirty (30) days following the date that Borrower is
required to file any state or federal income tax returns, Borrower shall deliver to Lender copies of such returns or extensions (if applicable, and Borrower shall deliver to Lender copies of such returns when ultimately filed) as filed with the
applicable taxing authorities together with evidence of the payment of all federal and state income taxes then required to be paid by Borrower. 

(d) Within forty-five (45) days following the end of each calendar quarter, Borrower shall deliver to Lender (i) operating
statements of the Property in form and substance satisfactory to Lender, and (ii) a detailed rent roll for the Property (which shall list all expiring Leases and the applicable Lease expiration dates), together with a delinquency report each in
substantially the same form as delivered to Lender in connection with its underwriting of the Loan or such other form as may be approved by Lender. 

(e) Within fifteen (15) Business Days after Lender’s request, Borrower shall deliver to Lender such additional financial information
concerning Borrower, any Indemnitor and/or the Property as may be reasonably requested by Lender, including, without limitation, a current budget and leasing or occupancy reports for the Property. 

  
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 2.11 Borrower’s Certificates. Borrower, within fifteen (15) Business Days after
Lender’s written request, shall furnish to Lender a written statement (a “Borrower’s Certificate”), duly acknowledged, certifying to Lender and/or any proposed assignee of this Security Instrument or other
prospective holder of the Loan or any portion thereof or interest therein, as to (a) the amount of the Obligations then owing under this Security Instrument, (b) the terms of payment and maturity date of the Obligations, (c) the date
to which interest has been paid under the Note, (d) whether any offsets or defenses exist against the Obligations and, if any are alleged to exist, a detailed description thereof, (e) that all Leases for the Property are in full force and
effect and have not been modified (or if modified, setting forth all modifications), (f) the date to which the rent, additional rent and other charges under such Leases have been paid, (g) whether or not, to the actual knowledge of
Borrower, any of the tenants under such Leases are in default under such Leases, and, if any of the tenants are in default, setting forth the specific nature of all such defaults, and (h) as to any other matters reasonably requested by Lender
provided, however, that in no event shall Lender request a Borrower’s Certificate more frequently than twice in any twelve month period. 

2.12 Security Interest. 

(a) This Security Instrument is also intended to, among other things, encumber and create a security interest in, and Borrower hereby
unconditionally and irrevocably grants, bargains, assigns, conveys, pledges, mortgages, transfers, sets over and confirms unto Lender and hereby grants to Lender a security interest in, all fixtures, chattels, accounts, deposit accounts, equipment,
inventory, contract rights, general intangibles and other personal property included within the Property, all renewals, replacements of any of the aforementioned items, or articles in substitution therefor or in addition thereto or the proceeds
thereof (said property is hereinafter referred to collectively as the “Collateral”), whether or not the same shall be attached to the Real Estate or the Improvements in any manner. It is hereby agreed that to the extent
permitted by law, all of the foregoing property is to be deemed and held to be a part of and affixed to the Real Estate and the Improvements. The foregoing security interest shall also cover Borrower’s leasehold interest in any of the foregoing
property which is leased by Borrower. Notwithstanding the foregoing, all of the foregoing property shall be owned by Borrower and no leasing or installment sales or other financing or title retention agreement in connection therewith, shall be
permitted without the prior written approval of Lender, not to be unreasonably withheld. Borrower shall, from time to time upon the request of Lender, supply Lender with a current inventory of all of the property in which Lender is granted a
security interest hereunder, in such detail as Lender may reasonably require. Borrower shall promptly replace all of the Collateral subject to the lien or security interest of this Security Instrument when worn out or obsolete with Collateral
comparable to the worn out or obsolete Collateral when new, and will not, without the prior written consent of Lender, remove from the Real Estate or the Improvements any of the Collateral subject to the lien or security interest of this Security
Instrument, except in the ordinary course of operating the Property and except such as is replaced by an article of equal suitability and value as above provided, owned by Borrower free and clear of any lien or security interest except that created
by this Security Instrument and the other Loan Documents and except as otherwise expressly permitted by the terms of this Security Instrument. Other than proceeds of the Collateral, all of the Collateral shall be kept at the location of the Real
Estate, except as otherwise required by the terms of the Loan Documents. Borrower shall not use any of the Collateral in violation of any Governmental Regulations. 

  
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 (b) As additional security for the payment and performance by Borrower of all duties,
responsibilities and obligations under the Note and the other Loan Documents, Borrower hereby unconditionally and irrevocably assigns, conveys, pledges, mortgages, transfers, delivers, deposits, sets over and confirms unto Lender, and hereby grants
to Lender a security interest in, (i) the amounts deposited with the Depository pursuant to the terms of Section 2.8, Section 2.16 or Article XI or as otherwise required herein (collectively, the
“Reserves”), (ii) the accounts into which the Reserves have been deposited, (iii) all insurance of said accounts, (iv) all accounts, contract rights and general intangibles or other rights and interests
pertaining thereto, (v) all sums now or hereafter therein or represented thereby, (vi) all replacements, substitutions or proceeds thereof, (vii) all instruments and documents now or hereafter evidencing the Reserves or such accounts,
(viii) all powers, options, rights, privileges and immunities pertaining to the Reserves (including the right to make withdrawals therefrom), and (ix) all proceeds of the foregoing. Borrower hereby authorizes and consents to the account or
accounts into which the Reserves have been deposited being held by Depository and hereby acknowledges and agrees that Lender shall have sole and exclusive dominion and control over said account or accounts. Notice of the assignment and security
interest granted to Lender herein may be delivered by Lender at any time to the Depository wherein the Reserves have been established, and Lender shall have possession of all passbooks or other evidences of such accounts. Borrower hereby assumes all
risk of loss with respect to amounts on deposit in the Reserves, except to the extent such loss is caused by the gross negligence or willful misconduct of Lender. Borrower hereby knowingly, voluntarily and intentionally stipulates, acknowledges and
agrees that the advancement of the funds from the Reserves as set forth herein is at Borrower’s direction and is not the exercise by Lender of any right of setoff or other remedy upon an Event of Default. Borrower hereby waives all right to
withdraw funds from the Reserves. If an Event of Default shall occur hereunder or under any other of the Loan Documents, then Lender may, without notice or demand on Borrower, at its option: (A) withdraw any or all of the funds (including,
without limitation, interest) then remaining in the Reserves and apply the same, after deducting all costs and expenses of safekeeping, collection and delivery (including, but not limited to, reasonable attorneys’ fees, costs and expenses) to
the indebtedness evidenced by the Note or any other Obligations of Borrower under the other Loan Documents in such manner or as Lender shall deem appropriate in its sole discretion, and the excess, if any, shall be paid to Borrower,
(B) exercise any and all rights and remedies of a secured party under any applicable UCC, or (C) exercise any other remedies available at law or in equity. No such use or application of the funds contained in the Reserves shall be deemed
to cure any default hereunder or under the other Loan Documents. Notwithstanding anything to the contrary set forth herein, Lender shall have no liability arising from or in connection with any act or omission of the Depository or the economic
failure of the Depository. 
 2.13 Security Agreement. This Security Instrument constitutes a security agreement between
Borrower and Lender with respect to the Collateral (including, without limitation, the Reserves) in which Lender is granted a security interest hereunder, and, cumulative of all other rights and remedies of Lender hereunder, Lender shall have all of
the rights and remedies of a secured party under any applicable UCC. Borrower hereby agrees to execute and deliver on demand and hereby irrevocably constitutes and appoints Lender the attorney-in-fact of Borrower to execute and deliver and, if
appropriate, to file with the appropriate filing officer or office such security agreements, financing statements or other instruments as Lender may request or require 

  
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in order to impose, perfect or continue the perfection of the lien or security interest created hereby. Without limiting the foregoing, to the extent permitted by applicable law, Borrower hereby
authorizes Lender to file any financing statements or continuation statements thereof on Borrower’s behalf. Except with respect to Rents and Profits to the extent specifically provided herein to the contrary, Lender shall have the right of
possession of all cash, securities, instruments, negotiable instruments, documents, certificates and any other evidences of cash or other property or evidences of rights to cash rather than property, which are now or hereafter a part of the
Property, and, upon the occurrence of an Event of Default hereunder or under any other Loan Document, Borrower shall promptly deliver the same to Lender, endorsed to Lender, without further notice from Lender. Borrower agrees to furnish Lender with
notice of any change in the name, identity, state of organization, residence, or principal place of business or mailing address of Borrower within ten (10) days of the effective date of any such change. Upon the occurrence of any Event of
Default hereunder, Lender shall have the rights and remedies as prescribed in this Security Instrument, or as prescribed by general law, or as prescribed by any applicable UCC, all at Lender’s election. Without implying any limitation upon the
foregoing, Lender may, at its option, proceed against the Collateral in accordance with the provisions of the UCC as enacted in the State of Arkansas, or Lender may proceed as to both the real and personal property comprising the Property in
accordance with this Security Instrument, or as otherwise provided at law or in equity. Any disposition of the Collateral may be conducted by an employee or agent of Lender. Any Person, including both Borrower and Lender, shall be eligible to
purchase any part or all of the Collateral at any such disposition. Expenses of retaking, holding, preparing for sale, selling or the like (including, without limitation, Lender’s reasonable attorneys’ fees and legal expenses), together
with interest thereon at the Default Rate from the date incurred by Lender until actually paid by Borrower, shall be paid by Borrower on demand and shall be secured by this Security Instrument and by all of the other Loan Documents securing all or
any part of the indebtedness evidenced by the Note. Lender shall have the right to enter upon the Real Estate and the Improvements or any real property where any of the property which is the subject of the security interests granted herein is
located to take possession of, assemble and collect the same or to render it unusable, or Borrower, upon demand of Lender, shall assemble such property and make it available to Lender at the Real Estate, a place which is hereby deemed to be
reasonably convenient to Lender and Borrower. If notice is required by law, Lender shall give Borrower not less than ten (10) days’ prior written notice of the time and place of any public sale of such property or of the time of or after
which any private sale or any other intended disposition thereof is to be made, and if such notice is sent to Borrower, as the same is provided for the mailing of notices herein, it is hereby deemed that such notice shall be and is reasonable notice
to Borrower. No such notice is necessary for any such property which is perishable, threatens to decline speedily in value or is of a type customarily sold on a recognized market. Furthermore, to the extent permitted by law, in conjunction with, in
addition to or in substitution for the rights and remedies available to Lender pursuant to any applicable UCC: 
 (a) In the event of a
foreclosure sale, the Collateral may, at the option of Lender, be sold as a whole; 
 (b) It shall not be necessary that Lender take
possession of the aforementioned Collateral, or any part thereof, prior to the time that any sale pursuant to the provisions of this Section 2.13 is conducted and it shall not be necessary that said Collateral, or any part
thereof, be present at the location of such sale; and 

  
 37 

 (c) Lender may appoint or delegate any one or more Persons as agent to perform any act or acts
necessary or incident to any sale held by Lender, including the sending of notices and the conduct of the sale, but in the name and on behalf of Lender. 

The name and address of Borrower (as Debtor under any applicable UCC) are: 

SSSST 376 W Watson St, LLC 
 10
Terrace Road 
 Ladera Ranch, California 92694 

The name and address of Lender (as Secured Party under any applicable UCC) are: 

Insurance Strategy Funding IX, LLC 

c/o JPMorgan Asset Management 

270 Park Avenue, 9th Floor 

New York, New York 10017 

Attention: William Mack 
 2.14
Reserves. 
 (a) Use of Reserves. All Reserves shall, until so disbursed by the Depository as set forth in the applicable
provisions, constitute additional security for the Obligations (and Borrower hereby grants to Lender a first priority security interest in the Reserves), and may be commingled with other funds of the Depository. If an Event of Default shall have
occurred hereunder, or if the Obligations shall be accelerated as herein provided, all Reserves may, at Lender’s option, be applied to the Obligations in the order determined by Lender or to cure said Event of Default or as further provided in
this Security Instrument. 
 (b) Transfer of Security Instrument. Upon an assignment or other transfer of this Security Instrument,
the Depository shall have the right to pay over the balance of any Reserves in its possession to the assignee or other successor, and the Depository shall thereupon be completely released from all liability with respect to such Reserves and Borrower
or the owner of the Property shall look solely to the assignee or transferee with respect thereto. This provision shall apply to every transfer of such Reserves to a new assignee or transferee. 

(c) Transfer of the Property. Subject to Article V hereof, transfer of record title to the Property shall automatically
transfer to the new owner all of Borrower’s beneficial interest in any Reserves, subject to the rights of Lender as provided herein. Upon full payment and satisfaction of this Security Instrument or, at Lender’s option, at any prior time,
the balance of any Reserves in the Depository’s possession shall be paid over to the record owner of the Property, and no other party shall have any right or claim thereto in any event. 

2.15 Asbestos O&M Plan. At all times while the Loan is outstanding Borrower shall keep in place an Asbestos-Containing Materials
Operating and Maintenance Plan approved by Lender. By acceptance of this Security Instrument, Lender acknowledges that the Asbestos-Containing Materials Operations and Maintenance Plan prepared by Property Solutions Inc. dated May 24, 2017 with
Project No. 20170316.130 is approved. 

  
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 2.16 Capital Expenditure Reserve. (a) At Lender’s election and subject to the
provisions of this Section 2.16, Lender may require at any time during the term, on each Monthly Payment Date during the term of the Loan, Borrower to deposit with Depository, into an account in the name of Lender, an amount equal
to the greater of (i) $4,950.00, or (ii) an amount recommended by a third party engineer retained by Lender at Borrower’s cost and expense (the “Monthly Capital Expenditure Deposit”), to pay for or reimburse
Borrower for any capital repairs, replacements and improvements necessary to keep the Property in good condition, order and repair and to prevent deterioration of the Property (a “Capital Expenditure Advance”). All such
amounts shall be held by Depository until released in accordance with the provisions of clause (b) below (the “Capital Expenditure Reserve Account”). Amounts deposited in the Capital Expenditure Reserve Account pursuant
to this Section 2.16 are referred to herein as the “Capital Expenditure Reserve Fund”. Lender may reassess the amount of the Monthly Capital Expenditure Reserve Deposit from time to time, and may require
Borrower to increase such monthly deposits upon thirty (30) days’ notice to Borrower if Lender reasonably determines that an increase is necessary to maintain the proper condition of the Property. Notwithstanding the foregoing, by its
acceptance of this Security Instrument, Lender shall be deemed to acknowledge and agree that Borrower is not currently required to make the deposits pursuant to this Section 2.16, provided, however, that Lender may require
Borrower at any time to make such deposits if (A) an Event of Default or event which with the giving of notice or lapse of time, or both, would constitute an Event of Default hereunder or under any Loan Document shall exist and remain uncured,
or (B) during Lender’s annual inspection of the Property, Lender’s or Lender’s representative or Servicer (defined below) identifies the need for deferred maintenance at the Property in an amount greater than $20,000.00. 

(b) Release of Capital Expenditure Reserve Fund. Lender shall cause Depository to disburse funds from the Capital Expenditure Reserve
Fund subject to satisfaction with the conditions: 
 (i) no Event of Default, or event which would, with the passage of time the giving of
notice or both, constitute an Event of Default, shall have occurred and be continuing at the time of the submission of a Capital Expenditure Requisition (as hereinafter defined) or as of the date of the disbursement of the Capital Expenditure
Advance. Borrower’s submission of a Capital Expenditure Requisition (as hereinafter defined) shall be deemed Borrower’s certification that no Event of Default, or event which would, with the passage of time, the giving of notice or both,
constitute an Event of Default, shall have occurred and be continuing at the time of the submission of such Capital Expenditure Requisition. 

(ii) Lender’s receipt of a certificate from an officer of Borrower certifying that the requested disbursement is for a capital
expenditure incurred by Borrower and approved by Lender. 
 (iii) Borrower shall provide evidence satisfactory to Lender that all the
capital expenditure work for which the Capital Expenditure Advance is being requested has been performed (1) in accordance with all Governmental Regulations, and (2) in a good and workmanlike manner. 

  
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 (iv) Borrower has delivered to Lender invoices and conditional lien releases from all
contractors, subcontractors and materialmen supplying labor or materials for the capital expenditures for which the Capital Expenditure Advance is being requested. 

(c) Disbursement of Capital Expenditure Advance. Lender shall disburse to Borrower each Capital Expenditure Advance pursuant to, and in
accordance with, the terms of this Section 2.16 not more than once in each calendar month upon simultaneous submission to Lender at least ten (10) days prior to the date on which Borrower desires a disbursement of a Capital
Expenditure Advance, of a written requisition (a “Capital Expenditure Requisition”), certified by Borrower on such form or forms as may be required by Lender. Each Capital Expenditure Requisition shall be for not less than
$10,000, except that the final Capital Expenditure Requisition may be for less than $10,000. Each Capital Expenditure Requisition shall be deemed a representation by Borrower that Borrower is in full compliance with the terms of this
Section 2.16. Lender shall not be obligated to make disbursements of the Capital Expenditure Reserve Fund to reimburse Borrower for the costs of routine maintenance to the Property, replacements of inventory or for costs which are
to be reimbursed from any other Reserves. 
 2.17 Access Laws. Borrower covenants to cause the Property to at all times comply to the
extent applicable with the requirements of the Americans with Disabilities Act of 1990 (as amended, the “ADA”), the Fair Housing Amendments Act of 1988, all state and local laws and ordinances related to handicapped access
and all rules, regulations, and orders issued pursuant thereto including, without limitation, the ADA Accessibility Guidelines for Buildings and Facilities (collectively, “Access Laws”). Notwithstanding any provisions set
forth herein or in any other document regarding Lender’s approval of alterations of the Property, Borrower shall not alter, or permit others to alter, the Property in any manner which would increase Borrower’s responsibilities for
compliance with the applicable Access Laws without the prior written approval of Lender. Lender may condition any such approval upon receipt of a certificate of Access Law compliance, in form and substance satisfactory to Lender, from an architect,
engineer, or other Person acceptable to Lender. Borrower agrees to give prompt notice to Lender of the receipt by Borrower of any written complaints related to violations of any Access Laws and of the commencement of any proceedings or
investigations which relate to compliance with applicable Access Laws. 
 2.18 Future Advances; Secured Indebtedness. It is
understood and agreed that this Security Instrument shall secure payment of not only the indebtedness evidenced by the Note, but also any and all substitutions, replacements, renewals and extensions of the Note, any and all indebtedness and
obligations arising pursuant to the terms hereof and any and all indebtedness and obligations arising pursuant to the terms of any of the other Loan Documents (other than the Environmental Indemnity), all of which indebtedness is equally secured
with and has the same priority as any amounts advanced as of the date hereof. It is agreed that any future advances made by Lender to or for the benefit of Borrower from time to time under this Security Instrument or the other Loan Documents and
whether or not such advances are obligatory or are made at the option of Lender, or otherwise, and all interest accruing thereon, shall be equally secured by this Security Instrument and shall have the same priority as all amounts, if any, advanced
as of the date hereof and shall be subject to all of the terms and provisions of this Security Instrument. 

  
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 2.19 OFAC. At all times throughout the term of the Loan, Borrower and all of its
respective Affiliates shall (i) not be a Prohibited Person (defined below), and (ii) be in full compliance with all applicable orders, rules, regulations and recommendations of The Office of Foreign Assets Control
(“OFAC”) of the U.S. Department of the Treasury. 
 The term “Prohibited Person” shall mean
any person or entity: 
 (a) listed in the Annex to, or otherwise subject to the provisions of, the Executive Order No. 13224 on
Terrorist Financing, effective September 24, 2001, and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (the “Executive Order”); 

(b) that is owned or controlled by, or acting for or on behalf of, any Person or entity that is listed to the Annex to, or is otherwise
subject to the provisions of, the Executive Order; 
 (c) with whom Lender is prohibited from dealing or otherwise engaging in any
transaction by any terrorism or money laundering law, including the Executive Order; 
 (d) who commits, threatens or conspires to commit or
supports “Terrorism” as defined in the Executive Order; or 
 (e) that is named as a “Specially
Designated National and Blocked Person” on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official website, www.ustreas.gov/offices/enforcement/ofac or at any replacement
website or other replacement official publication of such list; or who is an Affiliate of or affiliated with a Person or entity listed above. 

2.20 ERISA. 
 (a)
As of the date hereof and throughout the term of the Loan, (i) Borrower does not and shall not sponsor, is not obligated to contribute to and shall not contribute to and is not and shall not be an “employee benefit plan,” as defined
in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), subject to Title I of ERISA or Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”), (ii) none of the assets of Borrower constitutes or shall constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, (iii) Borrower is not and shall
not be a “governmental plan” within the meaning of Section 3(32) of ERISA, and (iv) transactions by or with Borrower are not and shall not be subject to any statute, rule or regulation regulating investments of, or fiduciary
obligations with respect to, “governmental plans” within the meaning of Section 3(32) of ERISA. 
 (b) Borrower shall
not engage in any transaction which would cause any obligation, or any action taken or to be taken, hereunder or under the other Loan Documents (or the exercise by Lender of any of its rights under this Agreement or the other Loan Documents) to be a
non-exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA. 

  
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 (c) Borrower shall deliver to Lender such certifications or other evidence from time to
time throughout the term of the Loan, as reasonably requested by Lender, that Borrower is in compliance with the representations, warranties and covenants contained in this Section 2.20, provided, however, that in no event shall
Lender request a such certifications or other evidence more frequently than twice in any twelve month period. 
 2.21 Property
Management Covenants. Borrower represents, covenants and agrees with Lender as follows: 
 (a) The Property Management Agreement is in
full force and effect, has not been amended or modified, and there is no material default, breach or violation existing thereunder by Borrower or, to Borrower’s actual knowledge, Manager, and, to Borrower’s actual knowledge, no event has
occurred that, with the passage of time or the giving of notice, or both, would constitute a material default, breach or violation by any party thereunder. 

(b) Neither the execution and delivery of the Loan Documents, the Borrower’s performance thereunder, nor the recordation of this Security
Instrument, will adversely affect Borrower’s rights under the Property Management Agreement. 
 (c) Borrower shall: 

(1) perform and/or observe in all material respects all of the covenants and agreements required to be performed and observed by it under the
Property Management Agreement prior to the expiration of any applicable notice and/or cure period and do all things necessary to preserve and to keep unimpaired its rights thereunder; 

(2) promptly deliver to Lender any written notice of default or other written notice under the Property Management Agreement received by
Borrower; 
 (3) promptly deliver to Lender a copy (if any) of each final financial statement, business plan and capital expenditures plan
with respect to the Property received by it under the Property Management Agreement; 
 (4) promptly enforce in a commercially reasonable
manner the performance and observance in all material respects of all of the covenants and agreements required to be performed and/or observed by Manager, under the Property Management Agreement; and 

(5) indemnify and hold Lender harmless from and against all Losses and Liabilities in any way arising in connection with any termination
payments under the Property Management Agreement and liquidated damages payable under the Property Management Agreement. 

  
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 (d) Borrower shall not, without Lender’s prior consent (which consent shall not be
unreasonably withheld, conditioned or delayed): 
 (1) terminate or replace the Manager, or surrender, terminate or cancel the Property
Management Agreement and, if at any time Lender consents to the appointment of a new manager, which consent shall not be unreasonably withheld. such new manager and Borrower shall, as a condition of Lender’s consent, execute a conditional
assignment of manager’s management agreement in a form then used by Lender with such changes as may be reasonably requested by Borrower or such new manager; 

(2) reduce or consent to the reduction of the term of the Property Management Agreement; 

(3) increase or consent to the increase of the amount of any fees or other amounts payable under the Property Management Agreement; or 

(4) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Property Management
Agreement in any material respect. 
 ARTICLE III 

ASSIGNMENT OF LEASES AND RENTS AND OTHER SUMS 

3.1 Assignment. 
 (a)
Borrower has, by the Assignment of Leases and Rents executed, delivered and recorded simultaneously herewith, assigned to Lender, all of its right, title and interest in and to the Leases and the Rents and Profits described therein. The Assignment
of Leases and Rents is intended to be and is an absolute present assignment from Borrower to Lender and not merely the passing of a security interest. Borrower represents and warrants to Lender that Borrower has delivered to Lender (i) a true,
correct and complete copy of the Lender-Approved Lease Form, and (ii) a true, correct and complete rent roll, certified by Borrower, to its actual knowledge, as being true, correct and complete, in all material respects, as of the date hereof.

 (b) So long as there shall exist no Event of Default and except as otherwise expressly provided herein, Borrower shall have the right and
license to exercise all rights, options and privileges extended to the landlord under the Leases, including the right to collect all Rents and Profits and the right to receive the proceeds of any claims arising pursuant to the Leases. Borrower
agrees to hold such Rents and Profits and the proceeds of any such claim, or a portion thereof in an amount sufficient to discharge and pay all then current Obligations which are or become due (to the extent such proceeds are so sufficient), in
trust and to use the same in the payment of such Obligations (including, without limitation, all Impositions and insurance premiums then payable) and all other costs, charges, accruals or expenses then incurred on, against or in connection with the
operation of the Property. 
 (c) Upon the occurrence of any Event of Default, the right and license set forth in subsection
(b) of this Section 3.1 shall be deemed automatically revoked by Lender as of the date of such Event of Default, whereupon Lender shall have the right and authority to exercise any of the rights or remedies referred to or set
forth in Article VII. In addition, upon the occurrence of any such Event of Default, Borrower shall promptly pay to Lender or cause to be delivered to Lender (i) all rent prepayments and security or other deposits paid to
Borrower pursuant to any Lease assigned hereunder, (ii) all original security deposits in the form of letters of credit, and (iii) all deposits for the payment of operating expenses and charges for services or facilities or for
escalations which were paid pursuant to any such Lease to the extent allocable to any period from and after such Event of Default. 

  
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 (d) Borrower will, as and when requested from time to time by Lender, execute, acknowledge and
deliver to Lender, in the same form as the Assignment of Leases and Rents, one or more general or specific assignments of the landlord’s interest under any Lease now or hereafter affecting the whole or any part of the Property. Borrower will,
on demand, pay to Lender, or reimburse Lender for the payment of any reasonable costs or expenses incurred in connection with the preparation and recording of any such assignment. 

3.2 Leases and Rents. 

(a) Borrower will perform or cause to be performed the landlord’s obligations under all Leases now or hereafter affecting the whole or
any part of the Property. 
 (b) Borrower will not enter into any new lease or consent to the amendment, modification, termination or
surrender of any of the Leases (herein “Leasing Activity”), without Lender’s prior written consent, except that with respect to Leases for individual multifamily and student units at the Property (which may be on a per
bed basis), Borrower may engage in Leasing Activity, without the prior written consent of Lender, provided such Leasing Activity complies with all of the Leasing Guidelines (as hereinafter defined). 

(c) For purposes hereof, the term Leasing Guidelines” shall mean: 

(i) all Leases shall be on the Lender-Approved Lease Form and at market rates; 

(ii) no Lease shall be for a term of less than 11.5 months and no Lease shall be for a term of greater than two (2) years; provided that
twenty percent (20%) of all Leases at any one time may be for a term of less than 11.5 months; 
 (iii) no Lease shall provide for the
payment of rent more than one (1) month in advance (expressly excluding the first month’s rent, which may be paid upon Lease execution); provided however, that Borrower shall be allowed to collect rents more than one (1) month in
advance for Leases of no more than twenty percent (20%) of the tenants of the Property; and 
 (iv) free rent periods shall not exceed
one (1) month; provided however, that Borrower shall be allowed to provide unlimited free rent for up to four (4) rental units at the Property. 

(d) Notwithstanding anything to the contrary contained herein, Borrower shall not, without Lender’s prior written consent: 

(i) reduce the rents payable under any of the Leases except in the ordinary course of business; 

  
 44 

 (ii) except in the ordinary course of business, amend, modify or otherwise alter any letter of
credit or other security or any guaranty given in connection with any Lease, or waive, excuse, condone, discount, set off, compromise or in any manner release or discharge any such security or any guarantor under any guaranty given in connection
with any Lease of and from any obligation, condition and/or agreement to be kept, observed and/or performed by such guarantor; or 
 (iii)
modify the provisions of the Lender-Approved Lease Form (A) which limit or exculpate Lender from liability for certain damages or (B) which concern the subordination of each Lease to this Security Instrument. 

ARTICLE IV 
 ADDITIONAL ADVANCES;
EXPENSES; INDEMNITY 
 4.1 Additional Advances and Disbursements. Borrower agrees that upon the occurrence of an Event of Default, or
upon Borrower’s failure to in any way perform its obligations under this Security Instrument or any other Loan Document, Lender shall have the right, but not the obligation, in Borrower’s name or in Lender’s own name, and without
notice to Borrower, to advance all or any part of amounts owing or to perform any or all required actions, and, Borrower expressly grants to Lender, in addition and without prejudice to any other rights and remedies hereunder, the right to enter
upon and take possession of the Property to such extent and as often as it may deem necessary or desirable to prevent or remedy any such default. No such advance or performance shall be deemed to have cured such default by Borrower or any Event of
Default with respect thereto. All sums advanced and all expenses incurred by Lender in connection with such advances or actions, and all other sums advanced or expenses incurred by Lender hereunder or under applicable law (whether required or
optional and whether indemnified hereunder or not) shall be part of the Obligations, shall bear interest at the Default Rate until paid in full and shall be secured by this Security Instrument. Lender, upon making any such advance, shall be
subrogated to all of the rights of the Person receiving such advance. 
 4.2 Other Expenses. 

(a) Borrower will pay or, on demand, reimburse Lender for the payment of, all appraisal fees, recording and filing fees, taxes, brokerage fees
and commissions, abstract fees, title insurance premiums and fees, UCC search fees, escrow fees, consultants’ fees and disbursements, environmental engineers’ fees and disbursements, reasonable attorneys’ fees and disbursements,
servicing fees, and all other reasonable costs and expenses of every character incurred by Lender in connection with the closing of the transactions contemplated hereunder or under the other Loan Documents (including the granting and preparation of
the Loan Documents), the administration and enforcement of the Loan Documents, and/or otherwise attributable or chargeable to Borrower as owner of the Property. 

(b) Borrower will pay or, on demand, reimburse Lender for the payment of any costs or expenses (including reasonable attorneys’ fees and
disbursements and collection costs) incurred or expended in connection with or incidental to (i) the occurrence of any default or Event of Default by Borrower hereunder or under any of the other Loan Documents, (ii) the exercise or
enforcement by or on behalf of Lender of any of its rights or remedies or Borrower’s 

  
 45 

 
obligations under this Security Instrument or under the other Loan Documents, including, without limitation, the enforcement, compromise or settlement of this Security Instrument or the
Obligations or the defense or assertion of the rights and claims of Lender hereunder in respect thereof, by litigation or otherwise, or (iii) any legal advice as to Lender’s rights, remedies and obligations under this Security Instrument
and the other Loan Documents arising from or in connection with any actual or threatened default hereunder or under any of the other Loan Documents. 

4.3 Indemnity. 
 (a)
Borrower agrees to indemnify, defend and hold harmless any Indemnitees from and against any and all Losses and Liabilities (as defined herein) which may be imposed on, incurred or paid by or asserted against any Indemnitee by reason or on account
of, or in connection with or arising from: 
 (i) any default or Event of Default by Borrower or any other Borrower Party hereunder or under
the other Loan Documents; 
 (ii) Lender’s exercise of any of its rights and remedies, or the performance of any of its duties,
hereunder (including, without limitation, under any Lease or in connection with the enforcement of any Lease) or under the other Loan Documents to which Borrower or any other Borrower Party is a party; 

(iii) the demolition, construction, reconstruction or alteration of the Property; 

(iv) an actual, alleged or threatened Environmental Condition; 

(v) any negligence or willful misconduct of Borrower, any other Borrower Party, any tenant of the Property, or any of their respective
agents, contractors, subcontractors, servants, employees, licensees or invitees or any affiliates of any of the foregoing; 
 (vi) any
accident, injury, death or damage to any Person or property occurring in, on or about the Property or any street, drive, sidewalk, curb or passageway adjacent thereto; 

(vii) any of the foregoing which may be instituted against, or alleged with respect to, any Indemnitee by reason of any alleged obligation or
undertaking on Lender’s part to perform or discharge any of the terms, covenants or agreements contained in any Lease, agreement or contract relating to the Property to which Lender is not a direct and express party, unless caused by the gross
negligence or willful misconduct of Lender; 
 (viii) any and all claims for brokerage, leasing, finders or similar fees which may be made
relating to the Property, the Loan or the Obligations hereunder; 

  
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 (ix) the failure of any Person to file timely with the Internal Revenue Service an accurate Form
1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be required in connection with this Security Instrument, or to supply a copy thereof in a timely fashion to the recipient of the
proceeds of the transaction in connection with which this Security Instrument is made; or 
 (x) any other transaction arising out of the
ownership, management, leasing or operation of the Property or Borrower’s obligations under the Loan Documents except to the extent caused by the willful misconduct or gross negligence of Lender. 

Any amount payable to Lender under this Section 4.3 shall be deemed a demand obligation, shall be part of the Obligations, shall bear
interest at the Default Rate and shall be secured by this Security Instrument. 
 (b) Borrower’s obligations under this
Section 4.3 (and any other obligation of Borrower to indemnify or defend Lender or any other Indemnitee under this Security Instrument or any other Loan Document) shall not be affected by the absence or unavailability of insurance
covering the same or by the failure or refusal by any insurance carrier to perform any obligation on its part under any such policy of covering insurance. If any claim, action or proceeding is made or brought against any Indemnitee which is subject
to the indemnity set forth in this Section 4.3 (or any such other indemnity, as aforesaid), Borrower shall resist or defend against the same, if necessary in the name of Lender, by attorneys for Borrower’s insurance carrier
(if the same is covered by insurance) or otherwise by attorneys approved by Lender. A waiver of subrogation shall be obtained by Borrower from its insurance carrier and consequently, Borrower waives any and all right to claim or recover against
Lender or Lender’s officers, employees, agents and representatives, for loss of or damage to Borrower, any other Borrower Party, the Property, Borrower’s property or the property of others under Borrower’s or any other Borrower
Parties’ control from any cause insured against or required to be insured against by the provisions of this Security Instrument. Notwithstanding the foregoing, any Indemnitee, in its discretion, may engage its own attorneys to resist or defend,
or assist therein, and Borrower shall pay, or, on demand, shall reimburse such Indemnitee for the payment of, the reasonable fees and disbursements of said attorneys. Any Indemnitee shall have the right to settle any such claim, action or proceeding
without Borrower’s consent. THE INDEMNITIES HEREIN PROVIDED BY BORROWER SHALL APPLY REGARDLESS OF WHETHER THE MATTER FROM WHICH THE INDEMNIFICATION OBLIGATION ARISES WAS CAUSED IN WHOLE OR IN PART BY SIMPLE NEGLIGENCE (BUT NOT WILLFUL
MISCONDUCT OR GROSS NEGLIGENCE) OF ANY APPLICABLE INDEMNITEE.  
 (c) As used herein the term “Losses and
Liabilities” shall mean, collectively, all claims, losses, liabilities (including, without limitation, strict liabilities and/or any environmental liability), suits, causes of actions, actions, proceedings, obligations, fines, debts,
damages, injuries, diminutions in value, judgments, awards, demands, administrative orders, consent agreements and orders, amounts paid in settlement, punitive damages, foreseeable and unforeseeable consequential damages, penalties, interest,
demands, claims, charges, fees, costs and expenses (including, without limitation, environmental inspection and clean-up costs, reasonable attorneys’ and paralegals’ fees and disbursements and other costs of defense) of whatever kind or
nature, except to the extent caused by the gross negligence or willful misconduct of Lender. 

  
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 4.4 Interest After Default. If any payment due hereunder or under the other Loan Documents
is not paid in full when due (taking into account the twice per twelve month five (5) day grace period set forth in Section 3 of the Note), whether on any stated due date, any accelerated due date or on demand or at any other time
specified under any of the provisions hereof or thereof, then the same shall bear interest hereunder at the Default Rate from the due date until fully paid (except to the extent such payment is subject to a grace period as described above in which
case the payment shall bear interest at the Default Rate from and after the expiration of such grace period until fully paid), whether or not an action against Borrower shall have been commenced, and if commenced whether or not a judgment against
Borrower shall have been obtained, and such interest shall be added to and become a part of the Obligations and shall be secured hereby. 

ARTICLE V 
 SALE, TRANSFER OR
MORTGAGING OF THE PROPERTY; CHANGE OF CONTROL 
 5.1 Continuous Ownership; Change of Control. 

(a) Borrower acknowledges that Lender has examined and relied on the experience of Borrower and its general partners, managing members,
principals and (if Borrower is a trust) beneficial owners in owning and operating properties such as the Property in agreeing to make the Loan, and will continue to rely on Borrower’s ownership of the Property as a means of maintaining the
value of the Property as security for payment and performance of the Obligations. Borrower acknowledges that Lender has a valid interest in maintaining the value of the Property so as to ensure that, should Borrower default in the payment or the
performance of the Obligations, Lender can recover the Debt by a sale of the Property. Borrower shall not, whether voluntarily or involuntarily, (i) sell, grant, convey, assign or otherwise transfer, by operation of law or otherwise
(collectively, “Transfer”), (ii) permit to be the subject of a Transfer, (iii) enter into an agreement to Transfer while the Loan is outstanding (unless such agreement provides for the payment in full of the
Obligations in accordance with the terms of the Loan Documents), or (iv) grant an option, or take any action, which, pursuant to the terms of any agreement to which Borrower is a party, may result in a Transfer of, the Property, or any legal,
beneficial or equitable interest therein, or the management thereof while the Loan is outstanding, without Lender’s prior written consent (which consent shall be granted or withheld in Lender’s sole and absolute discretion, except as
otherwise provided herein). For purposes of this Security Instrument, but without limiting the foregoing, except as expressly set forth in this sentence, (i) the issuance of, or any Transfer of, any equity interest in Borrower (whether stock,
partnership interest or otherwise) to any Person or group of related Persons, whether in a single transaction or a series of related or unrelated transactions, in such quantities that after such issuance such Person or group shall have Control of
Borrower, shall be deemed a Transfer of the Property, (ii)a Transfer of more than 49% in interest of Borrower (whether stock, partnership interest or otherwise) by any party or parties in interest whether in a single transaction or a series of
related or unrelated transactions shall be deemed a Transfer, (iii) a take-over agreement shall be deemed a Transfer, (iv) a Transfer of all or substantially all of the assets of any of Borrower, or any Indemnitor under the Environmental
Indemnity, shall be deemed a Transfer of the Property, and (v) any Person or legal representative of Borrower to whom Borrower’s interest in the Property passes by operation of law, or otherwise, shall be bound by the provisions of this
clause (a). 

  
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 For purposes hereof, a “Transfer” shall not include (A) the
issuances of shares in Strategic Student & Senior Housing Trust, Inc., a Maryland corporation (“REIT Guarantor”) so long as (i) REIT Guarantor is publicly traded on a nationally recognized exchange or
(ii) such shares are sold through a Financial Industry Regulatory Authority, Inc. (FINRA) regulated broker-dealer, and (iii) in the case of (i) or (ii) above, (a) prior to REIT Guarantor raising $20,000,000.00 in private or
public equity, such issuance of shares does not result in a change in the Board of Directors of REIT Guarantor, and (b) after REIT Guarantor raises $20,000,000.00 in private or public equity, such issuance of shares does not result in a change
in Control of REIT Guarantor or Borrower; (B) a sale, transfer or hypothecation of a membership interest in Borrower, by the current members to an immediate family member (i.e., parents, spouses, siblings, children or grandchildren) of such
member (or a trust for the benefit of any such Persons) that does not result in a change in Control of the Borrower, (C) other than as explicitly set forth in subsection (D) below, the issuance, transfer or redemption of up to forty-nine
percent (49%) of the stock in REIT Guarantor or the limited partnership interests in Affiliated Operating Partnership so long as (i) no change in Control of REIT Guarantor, Affiliated Operating Partnership or Borrower results therefrom and
(ii) if pursuant to such issuance, transfer or redemption, the transferee (together with its Affiliates) will either (a) invest greater than $20,000,000.00 to acquire shares in REIT Guarantor or (b) acquire greater than twenty percent
(20%) of the outstanding interests in Affiliated Operating Partnership, then Lender shall have performed and be reasonably satisfied with its customary know-your-customer due diligence, or (D) the issuance or redemption of preferred
limited partnership interests in Affiliated Operating Partnership to SmartStop Asset Management, LLC, a Delaware limited liability company, so long as (i) (a) prior to REIT Guarantor raising $20,000,000.00 in private or public equity, such
issuance or redemption of preferred limited partnership interests does not result in a change in the Board of Directors of REIT Guarantor and (b) after REIT Guarantor raises $20,000,000.00 in private or public equity, such issuance or
redemption of preferred limited partnership interests does not result in a change in Control of REIT Guarantor or Borrower and (ii) if pursuant to such issuance, transfer or redemption the transferee (together with its Affiliates) will either
(a) invest greater than $20,000,000.00 to acquire shares in REIT Guarantor or (b) acquire greater than twenty percent (20%) of the outstanding interests in Affiliated Operating Partnership, then Lender shall have performed and be
reasonably satisfied with its customary know-your-customer due diligence. 
 (b) In the event that (i) Borrower shall Transfer
the Property or any legal, beneficial or equitable interest therein, (ii) Borrower shall Transfer responsibility for the management of the Property in violation of the terms hereof, or (iii) any other Transfer shall otherwise occur in
violation of the terms of this Security Instrument or any other Loan Document, the same shall constitute an “Event of Default” and Lender may elect to declare the Obligations, together with any other sums secured hereby,
immediately due and payable. Lender may withhold its consent to any proposed Transfer for no reason or any reason, including the failure of the prospective transferee of the Property to reach an agreement in writing with Lender increasing the
interest payable on the Obligations to such rate as Lender shall request. 
 (c) The provisions of this
Section 5.1 shall apply to each and every such Transfer of all or any portion of the Property or any legal or equitable interest therein or the management thereof, regardless of whether or not Lender has consented to, or waived by
its action or inaction its rights hereunder with respect to any previous Transfer of all or any portion of the Property or any legal or equitable interest therein, or the management thereof. 

  
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 (d) Until the Obligations are paid in full, Borrower shall have the option (which may be
exercised by Borrower not more than once) to Transfer the Property subject to this Security Instrument and pursuant to this Section 5.1(d); provided, however, (i) Lender shall have received a notice from Borrower requesting
Lender’s consent to such Transfer not less than sixty (60) days prior to the proposed date of such Transfer, (ii) no Event of Default shall have occurred and remain outstanding, (iii) the organizational documents of such
transferee and any managing member or general partner thereof shall be reasonably satisfactory to Lender, and (iv) at the time of the Transfer, Borrower shall be obligated to pay Lender an assumption fee equal to one (1%) percent of the
Loan. If Borrower transfers the Property pursuant to this Section 5.1(d), Lender shall release Indemnitor from the Guaranty and the Environmental Indemnity with respect to matters first arising from and after the date of such
Transfer, provided, and on the condition, that an acceptable replacement guarantor that (a) satisfies the Minimum Net Worth and Liquidity Standard (as defined in the Guaranty), (b) Controls such transferee, directly or indirectly,
(c) is not a Prohibited Person, (d) has not been the subject to bankruptcy proceedings in the previous seven (7) years, (e) has experience in owning and operating real estate of similar size and character as the Property, and
(f) passes Lender’s customary due diligence searches, in each case, as approved and determined by Lender in Lender’s sole and absolute discretion, enters into a replacement nonrecourse carveout guaranty and environmental indemnity
agreement substantially similar in form and substance to the Guaranty and the Environmental Indemnity executed on the date hereof by Indemnitor. The foregoing Transfer described in this Section 5.1(d) shall be subject to the
Lender’s sole and absolute discretion. 
 5.2 Intentionally Omitted. 

5.3 No Subordinate Financing. Borrower covenants and agrees that it will not further encumber, mortgage, pledge, or grant a security
interest in the Property or any part thereof or any direct or indirect interest therein. Borrower further covenants and agrees that it will not obtain any Property-Assessed Clean Energy financing (a “PACE Loan”) with respect
to the Property. 
 ARTICLE VI 

DEFAULTS 
 6.1 Events of
Default. The term “Event of Default,” as used in this Security Instrument, shall mean the occurrence of any of the following events: 

(a) If Borrower fails to (i) make any Monthly Payment within five (5) days after the applicable Monthly Payment Date (as defined in
the Note), provided that Borrower shall only have such five (5) day grace period twice per twelve (12) month period and shall otherwise be required to make Monthly Payments on the applicable Monthly Payment Date, or (ii) within five
(5) days after Borrower’s receipt of written notice from Lender, pay any other amounts required to be paid or expended by Borrower under this Security Instrument, the Note, the Environmental Indemnity or under any other Loan Document,
whether of principal, interest, prepayment premium, Impositions or otherwise, and whether on any stated due date, upon demand, at maturity or upon acceleration; it being understood and agreed that other than as expressly set forth above, Borrower
shall not be entitled to receive from Lender or any party any notice of such failure to timely make any such payment; 

  
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 (b) any representation or warranty made herein or in the other Loan Documents (including any
certificates, schedules, and financial statements delivered in connection with any of the foregoing), or otherwise made by or on behalf of Borrower or any other Borrower Party in connection with the transactions contemplated hereunder, shall be
false or misleading in any material respect when made; 
 (c) any Transfer shall be made in violation of the terms of this Security
Instrument or the other Loan Documents; 
 (d) if (i) Borrower or any other Borrower Party shall commence any case, proceeding or other
action (A) under any existing or future Governmental Regulations of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or (ii) Borrower or any other Borrower Party shall make a general assignment for the benefit of its
creditors; or (iii) there shall be commenced against Borrower or any other Borrower Party, any case, a proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an order for relief or any
such adjudication or appointment, or (B) remains undismissed, undischarged or unbonded for a period of sixty (60) days; or (iv) there shall be commenced against Borrower or any other Borrower Party, any case, proceeding or other
action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of any order for any such relief which shall not have been vacated, discharged,
stayed or bonded pending appeal within sixty (60) days from the entry thereof; or (v) Borrower or any other Borrower Party or any of their affiliates shall take any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clauses (i), (ii), (iii) or (iv) above; or (vi) Borrower or any other Borrower Party shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts
as they become due; 
 (e) Borrower abandons the Property or ceases to do business or subjects the Property to actual physical waste; 

(f) there shall occur any event of default or non-performance (beyond any applicable notice and/or cure periods, if any) under the terms of
any other mortgage, deed of trust, deed to secure debt or other security agreement covering any part of the Property, whether it be superior or junior in lien to this Security Instrument, provided that nothing contained herein shall be deemed to
represent Lender’s consent to any such mortgage, deed of trust, deed to secure debt or other security agreement; 
 (g) Borrower shall
fail at any time to obtain, provide, maintain, keep in force the insurance policies required by Section 2.3 hereof; 

  
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 (h) Borrower shall consent to any claim that this Security Instrument or any other document or
instrument securing the Obligations is junior to any other Lien or any such claim shall be upheld by any court of competent jurisdiction; 

(i) the existence of any Environmental Condition which is not fully remediated in accordance with the requirements of all applicable
Governmental Regulations within thirty (30) days following the date that Borrower first acquires actual knowledge of such Environmental Condition; provided, however, if such remediation cannot be accomplished within such thirty (30) day
period, the time for Borrower’s completion of such remediation shall be extended for such additional period as may be reasonably required by Borrower for such completion, provided further that Borrower (1) shall commence such remediation
within thirty (30) days following the date Borrower first acquires actual knowledge of such Environmental Condition and thereafter exercises its best efforts to prosecute the completion of such remediation and (ii) Borrower is diligently
pursuing such remediation in accordance with the timeline established by the applicable Governmental Regulations; 
 (j) subject to the
Borrower’s rights of contest set forth in Section 2.7(d) hereof, if the Property becomes subject to any mechanic’s, materialmen’s or other Lien (including without limitation, any federal tax lien but excluding any
Lien for local real estate taxes and assessments not then due and payable) and such Lien shall remain undischarged of record (by payment, bonding or otherwise) for a period of thirty (30) days after notice thereof to Borrower; 

(k) if Borrower shall fail to reimburse Lender within ten (10) days after written demand, with interest calculated at the Default Rate,
for all insurance premiums or Impositions, together with interest and penalties imposed thereon, paid by Lender pursuant to this Security Instrument; 

(l) if any default occurs in the performance of any guarantor’s or indemnitor’s obligations under any guaranty or indemnity executed
in connection herewith and such default continues after the expiration of applicable grace periods set forth in such guaranty or indemnity, or if any representation or warranty of any guarantor or indemnitor thereunder shall be false or misleading
in any material respect when made; 
 (m) there shall have occurred any default, event of default or non-performance by Borrower under the
terms of any of the Leases which default, event of default or non-performance shall not have been cured within any applicable grace period therefor under any such Leases and thereafter results in the
termination of any such Leases at the Property such that it is reasonably likely that Borrower will fail to perform its obligations under the Loan Documents; 

(n) any other event occurs and continues beyond any express grace period applicable thereto which, under the terms of the Loan Documents,
would permit Lender to accelerate the Obligations; 
 (o) if Borrower shall fail to observe any covenants herein with respect to additional
financing, including obtaining any PACE loan; 

  
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 (p) if a default by Borrower beyond applicable notice or cure period (if any) shall occur under
the Management Agreement (or any successor management agreement); 
 (q) if the Management Agreement is modified or amended in any material
respect without the prior written consent of Lender as required herein, or the Borrower or Manager, as applicable, waives or releases any of its rights or remedies under the Management Agreement in any material respect; 

(r) if the Management Agreement terminates or expires pursuant to its terms or a successor management or accounting agreement is executed by
Borrower and such successor agreement is not approved by Lender; 
 (s) Intentionally Omitted; 

(t) if REIT Guarantor shall, at any time after the Individual Guarantor Release Date (as defined in the Guaranty), fail to maintain (x) a
net worth equal to or greater than the Minimum Net Worth and/or (v) the Minimum Liquidity Standard (each as defined in the Guaranty), as required by Section 5 of the Guaranty; 

(u) the occurrence of an event of default under any loan subordinate to this Security Instrument, which is not an independent default under
this Security Instrument; or 
 (v) if (i) for more than ten (10) days, in the aggregate, after written notice from Lender,
Borrower shall continue to be in default under any term, covenant or condition of the Note, this Security Instrument or any of the other Loan Documents not otherwise described in this Section 6.1 in the case of any default which
can be cured by the payment of a sum of money (other than payments of money covered by Section 6.1(a) above), or (ii) for more than thirty (30) days, in the aggregate, after notice from Lender in the case of any other
default, provided that if such default cannot reasonably be cured within such thirty (30) day period and Borrower shall have commenced to cure such default within such thirty (30) day period and thereafter diligently and expeditiously
proceeds to cure the same, said thirty (30) day period shall be extended for so long as it shall require Borrower in the exercise of due diligence to cure such default, it being agreed that no such extension shall be for a period in excess of
ninety (90) days, in the aggregate. 
 6.2 Equity Bridge Loan. Notwithstanding anything in this Security Instrument to the
contrary, Lender hereby acknowledges that the existence of an equity bridge loan (the “Equity Bridge Loan”) to SSSST Operating Partnership, L.P., a Delaware limited liability company (“Affiliated Operating
Partnership”), Noble PPS, LLC, a Nevada limited liability company (“Noble”), and H. Michael Schwarz (“Schwartz”), pursuant to that certain Credit Agreement dated on or about the date
hereof among Affiliated Operating Partnership, Noble, Schwartz and Keybank National Association, shall not create an Event of Default hereunder, provided that no equity in Borrower or in any direct or indirect owner of Borrower has been or is
pledged as collateral for such Equity Bridge Loan. 

  
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 ARTICLE VII 

REMEDIES 
 7.1 Remedies
Available. Upon the occurrence of any Event of Default, Borrower agrees that Lender may take such action, without notice or demand, as Lender deems advisable to protect and enforce Lender’s rights against Borrower and in and to the
Property, including, but not limited to, the following actions, each of which may be pursued concurrently or otherwise, at such time and in such order as Lender may determine, in its sole discretion, without impairing or otherwise affecting the
other rights and remedies of Lender: 
 (a) Acceleration. Accelerate the maturity date of the Note and declare any or all of the
indebtedness secured hereby to be immediately due and payable without any presentment, demand, protest, notice of nonpayment or nonperformance, notice of protest, notice of intent to accelerate, notice of acceleration or any other notice or action
of any kind whatever (each of which is hereby expressly waived by Borrower), whereupon the same shall become immediately due and payable. Upon any such acceleration of the Note, payment of such accelerated amount shall constitute a prepayment of the
principal balance of the Note and any applicable prepayment fee and/or any amount payable upon such prepayment provided for in the Note shall then be immediately due and payable. 

(b) Entry on the Property. Either in Person or by agent, with or without bringing any action or proceeding, or by a receiver appointed
by a court and without regard to the adequacy of its security, enter upon and take possession of the Property, or any part thereof, without force or with such force as is permitted by law, without notice or process or with such notice or process as
is required by law unless such notice and process is waivable, in which case Borrower hereby waives such notice and process, and without liability for trespass, damages or otherwise, and do any and all acts, perform any and all work and take
possession of any and all books, records and accounts which may be desirable or necessary in Lender’s judgment to complete any unfinished construction on the Real Estate, to preserve the value, marketability or rentability of the Property, to
increase the income therefrom, to manage and operate the Property or to protect the security hereof and all sums expended by Lender therefor, together with interest thereon at the Default Rate, shall be immediately due and payable to Lender by
Borrower on demand and shall be secured hereby and by all of the other Loan Documents securing all or any part of the indebtedness evidenced by the Note. 

(c) Collect Rents and Profits. With or without taking possession of the Property, sue for or otherwise collect the Rents and Profits,
including those past due and unpaid. 
 (d) Appointment of Receiver. Upon, or at any time prior or after, instituting any judicial
foreclosure or instituting any other foreclosure of the liens and security interests provided for herein or any other legal proceedings hereunder, make application to a court of competent jurisdiction for appointment of a receiver for all or
any part of the Property, as a matter of strict right and without notice to Borrower and without regard to the adequacy of the Property for the repayment of the Obligations or the solvency of Borrower or any Person or Persons liable for the
payment of the indebtedness secured hereby, and Borrower does hereby irrevocably consent to such appointment, waives any and all notices of and defenses to such appointment and agrees not to oppose any application therefor by Lender, but nothing
herein is 

  
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to be construed to deprive Lender of any other right, remedy or privilege Lender may now have under the law to have a receiver appointed; provided, however, that, the appointment of such
receiver, trustee or other appointee by virtue of any court order, statute or regulation shall not impair or in any manner prejudice the rights of Lender to receive payment of the Rents and Profits pursuant to other terms and provisions hereof. Any
such receiver shall have all of the usual powers and duties of receivers in similar cases, including, without limitation, the full power to hold, develop, rent, lease, manage, maintain, operate and otherwise use or permit the use of
the Property upon such terms and conditions as said receiver may deem to be prudent and reasonable under the circumstances as more fully set forth in Section 7.3 hereinbelow. Such receivership shall, at the option of Lender,
continue until full payment of all of the indebtedness secured hereby or until title to the Property shall have passed by foreclosure sale under this Security Instrument or deed in lieu of foreclosure. 

(e) Foreclosure. Institute a proceeding or proceedings, judicial or otherwise (including, without limitation, by power of sale to the
extent available to Lender under applicable law, it being understood and agreed that Borrower hereby expressly grants Lender such power of sale), for the complete foreclosure of this Security Instrument under any applicable law. Institute a
proceeding or proceedings, judicial or otherwise (including, without limitation, by power of sale to the extent available to Lender under applicable law, it being understood and agreed that Borrower hereby expressly grants Lender such power of
sale), for the partial foreclosure of this Security Instrument under any applicable law for the portion of the Obligations then due and payable, subject to the lien of this Security Instrument continuing unimpaired and without loss of priority so as
to secure the balance of the Obligations not then due and payable. 
 (1) If Lender is the purchaser of the Property, or any part thereof,
at any sale thereof, whether such sale be under the powers of sale hereinabove, or upon any other foreclosure of the liens and security interests hereof, or otherwise, Lender shall, upon any such purchase, unless otherwise indicated in any writing
evidencing such purchase, acquire good title to the Property so purchased, free of the liens and security interests created by the Loan Documents. 

(2) In the event a foreclosure hereunder should be commenced, Lender may at any time before the sale abandon the sale, and may then institute
suit for the collection of the Loan, or for the foreclosure of the liens and security interests hereof. If Lender should institute a suit for the collection of the Loan, or for a foreclosure of the liens and security interests hereof, it may at any
time before the entry of a final judgment in said suit dismiss the same, and dispose of the Property, or any part thereof, in accordance with the provisions of this Security Instrument. 

(3) It is agreed that in any deed or deeds given, any and all statements of fact or other recitals therein made as to the identity of the
Lender or as to the occurrence or existence of any Event of Default or other default, or as to the acceleration of the maturity of the Loan, or as to the request to sell, notice of sale, time, place, terms, and manner of sale, and receipt,
distribution and application of the money realized therefrom, and, without being limited by the foregoing, as to any other act or thing having been duly done by Lender shall be accepted by all courts of law and equity as prima facie evidence that
the said statements or recitals are correct and are without further questions to be so accepted. 

  
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 (f) Other Remedies. If an Event of Default shall have occurred, this Security Instrument
may, to the maximum extent permitted by law, be enforced, and Lender may exercise any right, power or remedy permitted to it hereunder, under the Loan Documents or by law or in equity, and, without limiting the generality of the foregoing, Lender
may, personally or by its agents, to the maximum extent permitted by law: 
 (1) enter into and take possession of the Property or any part
thereof, exclude Borrower and all parties claiming under Borrower whose claims are junior to this Security Instrument, wholly or partly therefrom, and use, operate, manage and control the Property or any part thereof either in the name of Borrower
or otherwise as Lender shall deem best, and upon such entry, from time to time at the expense of Borrower and the Property, make all such repairs, replacements, alterations, additions or improvements to the Property or any part thereof as Lender may
deem proper and, whether or not Lender has so entered and taken possession of the Property or any part thereof, collect and receive all Rents and Profits and apply the same to the payment of all expenses that Lender may be authorized to make under
this Security Instrument, the remainder to be applied to the payment of obligations under the Loan Documents until the same shall have been repaid in full; if Lender demands or attempts to take possession of the Property or any part thereof in the
exercise of any rights hereunder, Borrower shall promptly turn over and deliver complete possession thereof to Lender; 
 (2) cause any or
all of the Property to be sold under the power of sale in any manner permitted by applicable law. For any sale under the power of sale granted by this Security Instrument, Lender shall record and give all notices required by law and then, upon the
expiration of such time as is required by law, may sell the Property, and all estate, right, title, interest, claim and demand of Borrower therein, and all rights of redemption thereof, at one or more sales, as an entity or in parcels, with such
elements of real and/or personal property (and, to the extent permitted by applicable law, may elect to deem all of the Property to be real property for purposes thereof), and at such time or place and upon such terms as Lender may deem expedient,
or as may be required by applicable law. Upon any sale, Lender shall execute and deliver to the purchaser or purchasers a deed or deeds conveying the property sold, but without any covenant or warranty, express or implied, and the recitals in the
deed or deeds of any facts affecting the regularity or validity of the sale will be conclusive against all Persons. In the event of a sale, by foreclosure or otherwise, of less than all of the Property, this Security Instrument shall continue as a
lien and security interest on the remaining portion of the Security Instrument Property; 
 (3) proceed to protect and enforce their rights
under this Security Instrument, by suit for specific performance of any covenant contained herein or in the Loan Documents or in aid of the execution of any power granted herein or in the Loan Documents, or for the enforcement of any other right as
Lender shall elect, provided, that in the event of a sale, by foreclosure or otherwise, of less than all of the Property, this Security Instrument shall continue as a lien on, and security interest in, the remaining portion of the Property; or 

  
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 (4) exercise any or all of the remedies available to a secured party under the applicable UCC,
including, without limitation: 
 (i) either personally or by means of a court-appointed receiver, take possession of all or any of the
Property and exclude therefrom Borrower and all parties claiming under Borrower, and thereafter hold, store, use, operate, manage, maintain and control, make repairs, replacements, alterations, additions and improvements to and exercise all rights
and powers of Borrower in respect of the Property or any part thereof; if Lender demands or attempts to take possession of the Property in the exercise of any rights hereunder, Borrower shall promptly turn over and deliver complete possession
thereof to Lender; 
 (ii) without further notice to or demand upon Borrower, make such payments and do such acts as Lender may deem
necessary to protect its security interest in the Property, including, without limitation, paying, purchasing, contesting or compromising any encumbrance that is prior to or superior to the security interest granted hereunder, and in exercising any
such powers or authority paying all expenses incurred in connection therewith which expenses shall thereafter become part of the obligations secured by this Security Instrument; 

(iii) require Borrower to assemble the Property or any portion thereof, at a place designated by Lender and reasonably convenient to both
parties, and promptly to deliver the Property to Lender, or an agent or representative designated by it; Lender, and each of its agents and representatives, shall have the right to enter upon the premises and property of Borrower to exercise the
rights of Lender hereunder; 
 (iv) sell, lease or otherwise dispose of the Property, with or without having the Property at the place of
sale, and upon such terms and in such manner as Lender may determine (and Lender may be a purchaser at any such sale); provided, however, that Lender, may dispose of the Property in accordance with Lender’s rights and remedies in respect of the
Property pursuant to the provisions of this Security Instrument in lieu of proceeding under the applicable UCC; and 
 (v) Lender shall
give Borrower at least ten (10) days’ prior notice of the time and place of any sale of the Property or other intended disposition thereof, which notice Borrower agrees is commercially reasonable. 

(g) Lender may resort for the payment of the Loan to any other security for the debt held by Lender in such order and manner as Lender, in its
discretion, may elect. Lender may take action to recover the Loan, or any portion thereof, or to enforce any covenant hereof without prejudice to the right of Lender thereafter to foreclose this Security Instrument. The rights of Lender under this
Security Instrument shall be separate, distinct and cumulative and none shall be given effect to the exclusion of the others. No act of Lender shall be construed as an election to proceed under any one provision herein to the exclusion of any other
provision. Lender shall not be limited exclusively to the rights and remedies herein stated but shall be entitled to every right and remedy now or hereafter afforded at law or in equity. 

(h) Lost Documents. All rights of action under the Note, this Security Instrument or any of the other Loan Documents may be enforced by
Lender without the possession of the original Loan Documents and without the production thereof at any trial or other proceeding relative thereto. 

  
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 7.2 Application of Proceeds. (a) To the fullest extent permitted by law, the proceeds
of any foreclosure sale under this Security Instrument shall be applied to the extent funds are so available to the following items in such order as Lender in its discretion may determine: 

(i) to payment of the costs, expenses and fees of taking possession of the Property, and of holding, operating, maintaining, using, leasing,
repairing, improving, marketing and selling the same and of otherwise enforcing Lender’s right and remedies hereunder and under the other Loan Documents, including, but not limited to, receivers’ fees, court costs, attorneys’,
accountants’, appraisers’, managers’ and other professional fees, title charges and transfer taxes. 
 (ii) to payment of
all sums expended by Lender under the terms of any of the Loan Documents and not yet repaid, together with interest on such sums at the Default Rate. 

(iii) to payment of the secured indebtedness and all other obligations secured by this Security Instrument, including, without limitation,
interest at the Default Rate and, to the extent permitted by applicable law, any payment due upon a deemed prepayment of the principal balance of the Note, and any applicable prepayment fee, charge or premium required to be paid under the Note in
order to prepay principal, in any order that Lender chooses in its sole discretion. 
 (iv) to the extent permitted by Governmental
Regulations, to be set aside by Lender as adequate security in its judgment for the payment of sums which would have been paid by application under clauses (i) through (iii) above to Lender, arising out of an obligation or liability with
respect to which Borrower has agreed to indemnify Lender, but which sums are not yet due and payable or liquidated, provided, however, that in no event shall Lender retain any such proceeds for a period in excess of 1 year from the date of any
foreclosure sale unless a lawsuit has been filed against Lender for an obligation or liability with respect to which Borrower has agreed to indemnify Lender and a final judgment has not yet been entered in said lawsuit. 

The remainder, if any, of such funds shall be disbursed to Borrower or to the Person or Persons legally entitled thereto, except as otherwise
provided by law. 
 (b) No sale or other disposition of all or any part of the Property pursuant to Section 7.1 shall be
deemed to relieve Borrower of its obligations under the Loan Documents, except to the extent the proceeds thereof are applied to the payment of such obligations. If the proceeds of sale, collection or other realization of or upon the Property are
insufficient to cover the costs and expenses of such realization and the payment in full of any amounts due under the Loan Documents, Borrower shall remain liable for any deficiency pursuant to the terms of Section 7.7 hereof,
subject to the terms of Section 9.21 hereof. 
 7.3 Right and Authority of Receiver or Lender in the Event of Default;
Power of Attorney. Upon the occurrence of an Event of Default and entry upon the Property pursuant to Section 7.1(b) hereof or appointment of a receiver pursuant to Section 7.1(d) hereof, and under
such terms and conditions as may be prudent and reasonable under the circumstances in Lender’s 

  
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or the receiver’s sole discretion, all at Borrower’s expense, Lender or said receiver, or such other Persons or entities as they shall hire, direct or engage, as the case may be, may
(but shall have no obligation to) do or permit one or more of the following, successively or concurrently: 
 (a) enter upon and take
possession and control of any and all of the Property; 
 (b) take and maintain possession of all documents, books, records, papers and
accounts relating to the Property; 
 (c) exclude Borrower and its agents, servants and employees wholly from the Property; 

(d) manage and operate the Property; 

(e) preserve and maintain the Property; 

(f) make repairs and alterations to the Property; 

(g) complete any construction or repair of the Improvements, with such changes, additions or modifications of the plans and specifications or
intended disposition and use of the Improvements as Lender may in its sole discretion deem appropriate or desirable to place the Property in such condition as will, in Lender’s sole discretion, make it or any part thereof readily marketable or
rentable; 
 (h) conduct a marketing or leasing program with respect to the Property, or employ a marketing or leasing agent or agents to do
so, directed to the leasing or sale of the Property under such terms and conditions as Lender may in its sole discretion deem appropriate or desirable; 

(i) employ such contractors, subcontractors, materialmen, architects, engineers, consultants, managers, brokers, marketing agents, or other
employees, agents, independent contractors or professionals, as Lender may in its sole discretion deem appropriate or desirable to implement and effectuate the rights and powers herein granted; 

(j) execute and deliver, in the name of Borrower as attorney-in-fact and agent of Borrower or in its own name as Lender, such documents and
instruments as are necessary or appropriate to consummate authorized transactions; 
 (k) enter into such leases, whether of real or
personal property, or tenancy agreements, under such terms and conditions as Lender may in its sole discretion deem appropriate or desirable; 

(l) collect and receive the Rents and Profits from the Property; 

(m) eject tenants or repossess personal property, as provided by law, for breaches of the conditions of their leases or other agreements; 

  
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 (n) sue for unpaid Rents and Profits, payments, income or proceeds in the name of Borrower or
Lender or such receiver; 
 (o) maintain actions in forcible entry and detainer, ejectment for possession and actions in distress for rent;

 (p) compromise or give acquitance for Rents and Profits, payments, income or proceeds that may become due; 

(q) delegate or assign any and all rights and powers given to Lender by this Security Instrument; and/or 

(r) do any other acts which Lender in its sole discretion deems appropriate or desirable to protect the security hereof and use such measures,
legal or equitable, as Lender may in its sole discretion deem appropriate or desirable to implement and effectuate the provisions of this Security Instrument. This Security Instrument shall constitute a direction to and full authority to any tenant,
or other third party who has heretofore dealt or contracted or may hereafter deal or contract with Borrower or Lender, at the request of Lender upon the occurrence of an Event of Default, to pay all amounts owing under any lease, contract,
concession, license or other agreement to Lender without proof of the default relied upon. Any such tenant or third party is hereby irrevocably authorized to rely upon and comply with (and shall be fully protected by Borrower in so doing) any
request, notice or demand by Lender for the payment to Lender of any Rents and Profits or other sums which may be or thereafter become due under its lease, contract, concession, license or other agreement, or for the performance of any undertakings
under any such lease, contract, concession, license or other agreement, and shall have no right or duty to inquire whether any default under this Security Instrument or under any of the other Loan Documents has actually occurred or is then existing.
Borrower hereby constitutes and appoints Lender, its assignees, successors, transferees and nominees, as Borrower’s true and lawful attorney-in-fact and agent, with full power of substitution in the Property, in Borrower’s name, place and
stead, upon an Event of Default to do or permit any one or more of the foregoing described rights, remedies, powers and authorities, successively or concurrently, and said power of attorney shall be deemed a power coupled with an interest and
irrevocable so long as any indebtedness secured hereby is outstanding. Any money advanced by Lender in connection with any action taken under this Section 7.3, together with interest thereon at the Default Rate from the date of
making such advancement by Lender until actually paid by Borrower, shall be a demand obligation owing by Borrower to Lender and shall be secured by this Security Instrument and by every other instrument securing the secured indebtedness. 

7.4 Occupancy After Foreclosure. In case the liens or security interests of this Security Instrument shall be foreclosed, and Borrower
or Borrower’s representatives, successors or assigns, or any other Persons claiming any interest in the Property by, through or under Borrower (which, for purposes of this Section 7.4 does not include any tenant under a
written Lease, provided such tenant is not an Affiliate of Borrower) are occupying or using the Property, or any part thereof, then, to the extent not prohibited by applicable law, each and all shall, at the option of Lender or the purchaser at such
sale, as the case may be, immediately become the tenant of the purchaser at such sale, which tenancy shall be a tenancy at sufferance, terminable at the will of landlord, at a reasonable rental per day based upon the value of the Property occupied

  
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or used, such rental to be due daily to the purchaser. Further, to the extent permitted by applicable law, in the event the tenant fails to forthwith surrender possession of the Property upon the
termination of such tenancy, the purchaser shall be entitled to institute and maintain an action for unlawful detainer of the Property in the appropriate court of the county in which the Real Estate is located, and anyone occupying the Property
after demand made for possession thereof shall be subject to eviction and removal, forcible or otherwise, with or without process of law, and all damages by reason thereof are hereby expressly waived. 

7.5 Notice to Account Debtors. Lender may, at any time after an Event of Default, notify the account debtors and obligors of any
accounts, chattel paper, negotiable instruments or other evidences of indebtedness to Borrower included in the Property to pay Lender directly. Borrower shall at any time or from time to time upon the request of Lender provide to Lender a current
list of all such account debtors and obligors and their addresses. 
 7.6 Cumulative Remedies. All remedies contained in this
Security Instrument are cumulative and Lender shall also have all other remedies provided at law and in equity or in any other Loan Documents. Such remedies may be pursued separately, successively or concurrently at the sole subjective direction of
Lender and may be exercised in any order and as often as occasion therefor shall arise. No act of Lender shall be construed as an election to proceed under any particular provisions of this Security Instrument to the exclusion of any other provision
of this Security Instrument or as an election of remedies to the exclusion of any other remedy which may then or thereafter be available to Lender. No delay or failure by Lender to exercise any right or remedy under this Security Instrument shall be
construed to be a waiver of that right or remedy or of any default hereunder. Lender may exercise any one or more of its rights and remedies at its option without regard to the adequacy of its security. 

7.7 Deficiency. Subject to the terms of Section 9.21 hereof, Borrower acknowledges and agrees as follows: 

(a) In the event an interest in any of the Property is foreclosed, Borrower agrees as follows: Lender shall be entitled to seek a deficiency
judgment from Borrower and any other party obligated on the Note equal to the difference between the amount upon which Borrower is personally liable under the Note and the amount for which the Property was sold pursuant to judicial or nonjudicial
foreclosure sale. Borrower expressly recognizes that this Section 7.7 constitutes a waiver of any and all State of Arkansas Governmental Regulations which would otherwise permit Borrower and other Persons (if any) against whom
recovery of deficiencies is sought (even absent the initiation of deficiency proceedings against them) to present competent evidence of the fair market value of the Property as of the date of the foreclosure sale and to offset against any deficiency
the amount by which the foreclosure sale price is determined to be less than such fair market value. Borrower further recognizes and agrees that this waiver creates an irrebuttable presumption that the foreclosure sale price is equal to the fair
market value of the Property for purposes of calculating deficiencies owed by Borrower and others (if any) against whom recovery of a deficiency is sought. 

  
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 (b) In connection with any valuation of the Property as part of a foreclosure and sale, the
following shall be the basis for the finder of fact’s determination of the fair market value of the Property as of the date of the foreclosure sale in proceedings: (a) the Property shall be valued in an “as is” condition as of
the date of the foreclosure sale, without any assumption or expectation that the Property will be repaired or improved in any manner before a resale of the Property after foreclosure; (b) the valuation shall be based upon an assumption that the
foreclosure purchaser desires a resale of the Property for cash promptly (but no later than twelve (12) months) following the foreclosure sale; (c) all reasonable closing costs customarily borne by the seller in commercial real estate
transactions should be deducted from the gross fair market value of the Property, including, without limitation, brokerage commissions, title insurance, a survey of the Property, tax prorations, reasonable attorneys’ fees and marketing costs;
(d) the gross fair market value of the Property shall be further discounted to account for any estimated holding costs associated with maintaining the Property pending sale, including, without limitation, utilities expenses, property management
fees, taxes and assessments (to the extent not accounted for in (c) above), and other maintenance, operational and ownership expenses; and (e) any expert opinion testimony given or considered in connection with a determination of the fair
market value of the Property must be given by Persons having at least five (5) years experience in appraising property similar to the Property and who have conducted and prepared a complete written appraisal of the Property taking into
consideration the factors set forth above. 
 7.8 Borrower’s Waivers. BORROWER HEREBY WAIVES, TO THE MAXIMUM EXTENT PERMITTED
BY LAW, ANY RIGHT IT MAY HAVE UNDER APPLICABLE LAWS TO NOTICE, EXCEPT AS OTHERWISE HEREIN SPECIFICALLY PROVIDED, OR TO A JUDICIAL HEARING PRIOR TO THE EXERCISE OF ANY RIGHT OR REMEDY PROVIDED BY THIS SECURITY INSTRUMENT TO LENDER, AND WAIVES ITS
RIGHTS, IF ANY, TO SET ASIDE OR INVALIDATE ANY SALE DULY CONSUMMATED IN ACCORDANCE WITH THE PROVISIONS HEREOF ON THE GROUND (IF SUCH BE THE CASE) THAT THE SALE WAS CONSUMMATED WITHOUT A PRIOR JUDICIAL HEARING. BORROWER’S WAIVERS UNDER THIS
SECTION 7.8 HAVE BEEN MADE VOLUNTARILY, INTELLIGENTLY, AND KNOWINGLY AND AFTER BORROWER HAS BEEN APPRISED AND COUNSELED BY ITS ATTORNEY AS TO THE NATURE THEREOF AND ITS POSSIBLE ALTERNATIVE RIGHTS. 

ARTICLE VIII 
 REPORTING AND
WITHHOLDING REQUIREMENTS 
 8.1 Withholding. In the event of a foreclosure or delivery of a deed-in-lieu of foreclosure, Borrower
agrees that Lender shall have the right to withhold any and all amounts necessary to comply with the requirements of Section l445 of the Code, any successor statutes thereto and applicable U.S. Department of Treasury regulations issued pursuant
thereto in temporary or final form. 
 8.2 Form 1099-S. Borrower shall have supplied or caused to be supplied to Lender either
(a) a copy of a completed Form 1099-S, Statement for Recipients of Proceeds from Real Estate Transactions prepared by Borrower’s attorney together with a certification from Borrower’s attorney to the effect that such form has, to the
best of such Person’s knowledge, been accurately prepared and that such Person will timely file such form, or (b) a certification from Borrower that the mortgage loan is a refinancing of the Property or is otherwise not required to be
reported to the Internal Revenue Service pursuant to Section 6045(e) of the Code. 

  
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 8.3 Transfer Tax. 

(a) Covenants. Borrower covenants and agrees that, in the event of a sale or other Transfer, it will duly complete, execute and
deliver to Lender contemporaneously with their submission to the applicable taxing authority or recording officer, all forms and supporting documentation required by such taxing authority or recording officer to estimate and fix the real estate
transfer tax (“Transfer Tax”), if any, payable by reason of such sale or other Transfer or recording of the deed evidencing such sale or other Transfer. This Section 8.3 shall apply only if this
Security Instrument is outstanding after any such sale or transfer. 
 (b) Payment. Borrower agrees to pay all Transfer Taxes
that may hereafter become due and payable with respect to any Transfer, and in default thereof Lender shall have the right, but not the obligation, to pay the same and the amount of such payment shall be added to the Obligations and be secured by
this Security Instrument. The provisions of this Article shall survive any Transfer, foreclosure or deed in lieu of foreclosure and the delivery of the deed in connection with any Transfer, foreclosure or deed in lieu of foreclosure. Nothing in this
Article shall be deemed to limit Lender’s rights hereunder in the event any Transfer shall be made in violation of the provisions of this Security Instrument. 

(c) Foreclosure. The provisions of this Section 8.3 shall be applicable also in the event of a foreclosure or
delivery of a deed in lieu of foreclosure to the extent that Lender shall, in its sole judgment and discretion, determine that any tax (including a Transfer Tax) shall be payable by it. 

ARTICLE IX 
 MISCELLANEOUS TERMS
AND CONDITIONS 
 9.1 Time of Essence. Time is of the essence for the performance of each and every covenant of Borrower hereunder.
No excuse, delay, act of G-d, or other reason, whether or not within the control of Borrower, shall operate to defer, reduce or waive Borrower’s performance of any such payment covenants or obligations. 

9.2 Release of This Security Instrument. If all of the Obligations secured hereby shall have been paid and/or performed, then and in
that event only, all rights under this Security Instrument shall terminate, except for any indemnities granted by Borrower hereunder to Lender and any other provisions hereof which by their terms survive, and the Property shall become wholly clear
of the liens, security interests, conveyances and assignments evidenced hereby, which shall be released by Lender, to the extent required by law to effect a full and proper termination, release and reconveyance in due form at Borrower’s cost.
No release of this Security Instrument or the lien hereof shall be valid unless executed by Lender, which Lender agrees to provide on a timely basis. 

9.3 Certain Rights of Lender. Without affecting Borrower’s liability for the payment of any of the indebtedness secured hereby,
Lender may from time to time and without notice to Borrower: (a) release any Person liable for the payment of the indebtedness secured hereby; (b) extend or modify the terms of payment of the indebtedness secured hereby; (c) accept
additional real or personal property of any kind as security or alter, substitute or release any 

  
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property securing the indebtedness secured hereby; (d) release any part of the Property; (e) consent in writing to the making of any subdivision map or plat thereof; (f) join in
granting any easement therein; or (g) join in any extension agreement of this Security Instrument or any agreement subordinating any lien or security interest granted hereby. 

9.4 Additional Borrower’s Waivers. To the full extent permitted by law, Borrower agrees that Borrower shall not at any time insist
upon, plead, claim or take the benefit or advantage of any law now or hereafter in force providing for any appraisement, valuation, stay, moratorium or extension, or any law now or hereafter in force providing for the reinstatement of the
Obligations prior to any sale of the Property to be made pursuant to any provisions contained herein or prior to the entering of any decree, judgment or order of any court of competent jurisdiction, or any right under any statute to redeem all or
any part of the Property so sold. Borrower, for Borrower and Borrower’s successors and assigns, and for any and all Persons ever claiming any interest in the Property including, without limitation, any Borrower Party, to the full extent
permitted by law, hereby knowingly, intentionally and voluntarily with and upon the advice of competent counsel: (a) waives, releases, relinquishes and forever forgoes all rights of valuation, appraisement, stay of execution, reinstatement and
notice of election or intention to mature or declare due the Obligations (except such notices as are specifically provided for herein); (b) waives, releases, relinquishes and forever forgoes all right to a marshaling of the assets of Borrower
or any other Borrower Party, including the Property, to a sale in the inverse order of alienation, or to direct the order in which any of the Property shall be sold in the event of foreclosure of the liens and security interests hereby created and
agrees that any court having jurisdiction to foreclose such liens and security interests may order the Property sold as an entirety; (c) waives, releases, relinquishes and forever forgoes all rights and periods of redemption provided under
Governmental Regulations; and (d) waives notice of intention to accelerate the indebtedness, notice of acceleration of the indebtedness, demand, protest and notice of demand, protest and nonpayment and all other notices. To the full extent
permitted by law, Borrower shall not have or assert any right under any Governmental Regulations pertaining to the exemption of homestead or other exemption under any Governmental Regulations now or hereafter in effect, the administration of estates
of decedents or other matters whatever to defeat, reduce or affect the right of Lender under the terms of this Security Instrument to a sale of the Property, for the collection of the Obligations without any prior or different resort for collection,
or the right of Lender under the terms of this Security Instrument to the payment of the Obligations out of the proceeds of sale of the Property in preference to every other claimant whatever. Further, Borrower hereby knowingly, intentionally and
voluntarily, with and upon the advice of competent counsel, waives, releases, relinquishes and forever forgoes all present and future statutes of limitations as a defense to any action to enforce the provisions of this Security Instrument or to
collect any of the Obligations to the fullest extent permitted by law. Borrower covenants and agrees that upon the commencement of a voluntary or involuntary bankruptcy proceeding by or against Borrower, Borrower shall not seek a supplemental stay
or otherwise pursuant to 11 U.S.C. § 105 or any other provision of the United States Bankruptcy Code, or any other debtor relief law (whether statutory, common law, case law, or otherwise) of any jurisdiction whatsoever, now or hereafter
in effect, which may be or become applicable, to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any rights of Lender against any guarantor or indemnitor of the Obligations or any other party liable with respect
thereto by virtue of any indemnity, guaranty or otherwise. 

  
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 9.5 Notices. Any notice, demand, consent, approval, direction, waiver, agreement or other
communication (any “Notice”) required or permitted hereunder or under any other documents in connection herewith shall be in writing and shall be directed as follows: 

If to Borrower: 
 SSSST 376 W
Watson St, LLC 
 c/o SmartStop Asset Management 

10 Terrace Road 
 Ladera Ranch,
California 92694 
 Attn: H. Michael Schwartz 

If to Lender: 
 Insurance
Strategy Funding IX, LLC 
 c/o JPMorgan Asset Management 

270 Park Avenue, 9th Floor 

New York, New York 10017 

Attention: William Mack 
 with a
copy to: 
 Katten Muchin Rosenman LLP 

550 South Tryon Street, Suite 2900 

Charlotte, NC 28202 
 Attention:
Daniel S. Huffenus, Esq. 
 or to such changed address as a party hereto shall designate to the other party hereto from time to time in writing. Any counsel
designated above or replacement counsel which may be designated respectively by each party by written notice to the other party hereto is hereby authorized to give notices hereunder on behalf of its respective client. 

Notices shall be (a) personally delivered to the offices set forth above, in which case they shall be deemed delivered on the date of
delivery or first (1st) Business Day thereafter if delivered other than on a Business Day (or after 5:00 p.m. New York City time) to said offices; (b) sent by registered or certified mail, postage prepaid, return receipt requested, in
which case they shall be deemed delivered on the date shown on the receipt unless delivery is refused or delayed by the addressee in which event they shall be deemed delivered on the earliest to occur of the first (1st) Business Day on or after
the date of delivery or the third (3rd) Business Day after such notice has been deposited in the U.S. Mail in accordance with the terms hereof; or (c) sent by a nationally recognized overnight courier, in which case they shall be deemed
delivered on the first (1st) Business Day following the date such notice was delivered to or picked up by the courier. 
 9.6
Successors and Assigns. The provisions hereof shall be binding upon Borrower and the heirs, devisees, representatives, permitted successors and permitted assigns of Borrower, including successors in interest of Borrower in and to all or any
part of the Property, and shall inure to the benefit of Lender and its heirs, successors and assigns. All references in this 

  
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Security Instrument to Borrower or Lender shall be construed as including all of such other Persons with respect to the Person referred to. Where two or more Persons have executed this Security
Instrument, the obligations of such Persons shall be joint and several except to the extent the context clearly indicates otherwise. 
 9.7
Severability. In the event that any provision of this Security Instrument or the application thereof to Borrower shall, to any extent, be invalid or unenforceable under any applicable statute, regulation, or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute, regulation or rule of law, and the remainder of this Security Instrument and the application of any such invalid or
unenforceable provision to parties, jurisdictions, or circumstances other than to whom or to which it shall be held invalid or unenforceable, shall not be affected thereby nor shall same affect the validity or enforceability of any other provision
of this Security Instrument. 
 9.8 Waiver; Discontinuance of Proceedings. Lender may waive any single default by Borrower hereunder
without waiving any other prior or subsequent default. Lender may remedy any default by Borrower hereunder without waiving the default remedied. Neither the failure by Lender to exercise, nor the delay by Lender in exercising, any right, power or
remedy upon any default by Borrower hereunder shall be construed as a waiver of such default or as a waiver of the right to exercise any such right, power or remedy at a later date. No single or partial exercise by Lender of any right, power or
remedy hereunder shall exhaust the same or shall preclude any other or further exercise thereof, and every such right, power or remedy hereunder may be exercised at any time and from time to time. No modification or waiver of any provision hereof
nor consent to any departure by Borrower therefrom shall in any event be effective unless the same shall be in writing and signed by Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific
purpose given. No notice to nor demand on Borrower in any case shall of itself entitle Borrower to any other or further notice or demand in similar or other circumstances. Acceptance by Lender of any payment in an amount less than the amount then
due on any of the secured indebtedness shall be deemed an acceptance on account only and shall not in any way affect the existence of a default hereunder. In case Lender shall have proceeded to invoke any right, remedy or recourse permitted
hereunder or under the other Loan Documents and shall thereafter elect to discontinue or abandon the same for any reason, Lender shall have the unqualified right to do so and, in such an event, Borrower and Lender shall be restored to their former
positions with respect to the indebtedness secured hereby, the Loan Documents, the Property and otherwise, and the rights, remedies, recourses and powers of Lender shall continue as if the same had never been invoked. 

9.9 Construction of Provisions. The following rules of construction shall be applicable for all purposes of this Security Instrument
and of the other Loan Documents or instruments supplemental hereto, unless the context otherwise requires: 
 (a) All references herein to
numbered Articles or Sections or to lettered Exhibits are references to the Articles and Sections hereof and the Exhibits annexed to this Security Instrument, unless expressly otherwise designated in context. 

(b) The terms “include”, “including” and similar terms shall be construed as if followed by
the phrase “without being limited to.” 

  
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 (c) The term “Property” shall be construed as if followed by the phrase
“or any part thereof.” 
 (d) The term “Obligations” shall be construed as if followed by the
phrase “or any other sums secured hereby, or any part thereof.” 
 (e) Words of masculine, feminine or neuter gender
shall mean and include the correlative words of the other genders, and words importing the singular number shall mean and include the plural number, and vice versa. 

(f) The term “Person” shall include natural persons, firms, partnerships, corporations and any other public and
private legal entities. 
 (g) The term “provisions”, when used with respect hereto or to any other
document or instrument, shall be construed as if preceded by the phrase “terms, covenants, agreements, requirements, conditions and/or”. 

(h) All Article, Section and Exhibit captions herein are used for convenience and reference only and in no way define, limit or
describe the scope or intent of, or in any way affect, this Security Instrument. 
 (i) No inference in favor of any party
shall be drawn from the fact that such party has drafted any portion hereof. 
 (j) The cover page of and all recitals set
forth in, and all Exhibits to, this Security Instrument are hereby incorporated in this Security Instrument. 
 (k) All
obligations of Borrower hereunder shall be performed and satisfied by or on behalf of Borrower at Borrower’s sole cost and expense. 

(l) The term “landlord” shall mean “landlord, sublandlord, lessor and sublessor”, as
the case may be, and the term “tenant” shall mean “tenant, subtenant, lessee and sublessee”, as the case may be. 

(m) The term “Business Day” shall mean any day of the year other than (a) Saturday, Sunday, (b) a day
on which banks in the City of New York are authorized or required by law to remain closed, or (c) a day on which the New York Stock Exchange is closed. 

9.10 Counting of Days. The term “days” when used herein shall mean calendar days. If any time period ends on a
day which is not a Business Day, the period shall be deemed to end on the next succeeding Business Day. 
 9.11 Application of the
Proceeds of the Note. To the extent that proceeds of the Note are used to pay indebtedness secured by any outstanding Lien, security interest, charge or prior encumbrance against the Property, such proceeds have been advanced by Lender at
Borrower’s request and Lender shall be subrogated to any and all rights, security interests and Liens owned by any owner or holder of such outstanding Liens, security interests, charges or encumbrances, irrespective of whether said Liens,
security interests, charges or encumbrances are released. 

  
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 9.12 Unsecured Portion of Indebtedness. If any part of the secured indebtedness cannot be
lawfully secured by this Security Instrument or if any part of the Property cannot be lawfully subject to the lien and security interest hereof to the full extent of such indebtedness, then all payments made shall be applied on said indebtedness
first in discharge of that portion thereof which is unsecured by this Security Instrument. 
 9.13 Cross-Default. An Event of Default
hereunder which has not been cured within any applicable notice, grace or cure period shall constitute a default under each of the other Loan Documents. 

9.14 Publicity. Neither Borrower nor any Borrower Party (or their affiliates) shall use the name of Lender, J.P. Morgan Investment
Management Inc., JPMorgan Chase Bank, N.A., or any subsidiary or affiliate thereof, in any advertising, press release, “tombstone,” or on any sign erected on the Property without the prior written approval of Lender in each instance. 

9.15 Construction of this Document. This document may be construed as a mortgage, security deed, chattel mortgage, conveyance,
assignment, security agreement, pledge, financing statement, hypothecation or contract, or any one or more of the foregoing, in order to fully effectuate the liens and security interests created hereby and the purposes and agreements herein set
forth. 
 9.16 No Merger. It is the desire and intention of the parties hereto that this Security Instrument and the lien hereof do
not merge in fee simple title to the Property. It is hereby understood and agreed that should Lender acquire any additional or other interests in or to the Property or the ownership thereof, then, unless a contrary intent is manifested by Lender as
evidenced by an appropriate document duly recorded, this Security Instrument and the lien hereof shall not merge in such other or additional interests in or to the Property, toward the end that this Security Instrument may be foreclosed as if owned
by a stranger to said other or additional interests. 
 9.17 Lender May File Proofs of Claim. In the case of any receivership,
insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting Borrower or the members, principals or general partners in Borrower, or their respective creditors or property, Lender, to the extent
permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of Lender allowed in such proceedings for the entire secured indebtedness at the date of the
institution of such proceedings and for any additional amount which may become due and payable by Borrower hereunder after such date. 

9.18 Fixture Filing. This Security Instrument shall be effective from the date of its recording as a financing statement filed as a
fixture filing under the applicable UCC with respect to all goods constituting part of the Property which are or are to become fixtures. 

9.19 Assignment by Lender. Borrower agrees that Lender may assign, sell or transfer the Loan, its rights under this Security Instrument
and the other Loan Documents and any servicing rights with respect to the Loan, whether in whole or in part, and/or grant participations in the Loan. In the event of any assignment of the Loan by Lender, Lender (and its partners, 

  
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officers, directors, agents, attorneys, administrators, trustees, parents, subsidiaries, advisors, affiliates, beneficiaries, shareholders, representatives, servants and employees and their
respective affiliates) will be deemed released of and from any obligation or liability (including, without limitation, any Losses and Liabilities of any Person) with respect to the Loan, this Security Instrument and the other Loan Documents (without
any further action or agreement required) with respect to the Loan. Lender may forward to any potential assignee or transferee of any interest in the Loan or any servicing rights with respect to the Loan any and all documents and information which
Lender now has or may hereafter acquire relating to the Loan and to the Borrower Parties and the Property, whether furnished by the Borrower Parties or otherwise, as Lender determines necessary or desirable. Borrower, on behalf of itself and the
Borrower Parties, agrees to cooperate with Lender in connection with any transaction contemplated in this Section 9.19. Lender shall notify Borrower within ten (10) days after any such sale, assignment or transfer, including
the name and address of any transferee and/or new servicer of the Loan. 
 9.20 No Representation. By accepting delivery of
any item required to be observed, performed or fulfilled or to be given to Lender pursuant to the Loan Documents, including, but not limited to, any officer’s certificate, balance sheet, statement of profit and loss or other financial
statement, survey, appraisal or insurance policy, Lender shall not be deemed to have warranted, consented to, or affirmed the sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof, and such
acceptance of delivery thereof shall not be or constitute any warranty, consent or affirmation with respect thereto by Lender. 
 9.21
Limited Recourse. 
 (a) Except as otherwise provided in this Section 9.21, Lender shall not enforce the liability and
obligation of Borrower to perform and observe the obligations contained in the Note or this Security Instrument or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower, except that Lender may
sell the Property under any power of sale or right of non-judicial foreclosure or bring a foreclosure action, confirmation action, action for specific performance or other appropriate action or proceeding to enable Lender to enforce and realize upon
the Note, this Security Instrument, the other Loan Documents, and the Property, the Rents and Profits and any other collateral given to Lender created by the Note, this Security Instrument and the other Loan Documents; provided, however, that any
judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest in the Property, the Rents and Profits and any other collateral given to Lender. Lender, by accepting the Note and this
Security Instrument, agrees that it shall not, except as provided in Sections 9.21(b) and (c) below, sue for, seek or demand any deficiency judgment against Borrower in any such action or proceeding, under or by reason of or under or in
connection with the Note, this Security Instrument or the other Loan Documents. The provisions of this Section 9.21 shall not, however, (i) constitute a waiver, release or impairment of any obligation evidenced or secured by the
Note, this Security Instrument or the other Loan Documents; (ii) impair the right of Lender to obtain a deficiency judgment in any action or proceeding with respect to the Loan Documents in order to preserve its rights and remedies including,
without limitation, foreclosure, non-judicial foreclosure, or the exercise of a power of sale, under this Security Instrument and the other Loan Documents; however, Lender agrees that, it shall not enforce such deficiency judgment against any assets
of Borrower other than Borrower’s interest in the Property; (iii) impair the right of Lender to name 

  
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Borrower as a party defendant in any action or suit for judicial foreclosure and sale under this Security Instrument; (iv) affect the validity or enforceability of any indemnity, pledge,
master lease or similar instrument made in connection with the Note, this Security Instrument, or the other Loan Documents; (v) impair the right of Lender to obtain the appointment of a receiver; (vi) impair the enforcement of the
Assignment of Leases and Rents executed in connection herewith; (vii) impair the right of Lender to obtain a deficiency judgment or judgment on the Note against Borrower if necessary to obtain any insurance proceeds or condemnation awards to
which Lender would otherwise be entitled under this Security Instrument; provided however, Lender shall only enforce such judgment against the insurance proceeds and/or condemnation awards; or (viii) impair, release or limit the liability of
Borrower (or any other Person) under the Environmental Indemnity, affect in any way the validity, enforceability or recourse of such Environmental Indemnity, or affect in any way the validity or enforceability of any of the other Loan Documents.

 (b) Notwithstanding anything to the contrary contained herein, Borrower shall be personally liable to Lender for the Recourse
Obligations of Borrower (as hereinafter defined). Unless a Full Recourse Event (as hereinafter defined) shall have occurred, the term “Recourse Obligations of Borrower” shall mean any and all Losses and Liabilities, in each
case, to the extent actually sustained or incurred by Lender to the extent arising out of or with respect to: 
 (i) fraud or any
willful and material misrepresentation by Borrower or any other Borrower Party set forth in or otherwise made in connection with this Security Instrument or any of the other Loan Documents; 

(ii) Borrower’s misapplication (i.e., application in violation of the terms of the Loan Documents) or misappropriation of Rents and
Profits or condemnation or insurance proceeds; 
 (iii) Material physical waste of the Property by Borrower, Indemnitor or any of their
respective Affiliates or expressly authorized agents, excluding neglect resulting from the Property’s failure to generate sufficient cash flow; 

(iv) Borrower’s failure to pay to Lender all Rents and Profits and other sums attributable to the Property or other collateral for the
Obligations from and after the occurrence of any Event of Default; 
 (v) Borrower’s failure to pay any Impositions or insurance
premiums to the extent there is sufficient net cash flow generated by the Property to pay the same; 
 (vi) any violation of
Section 2.1(f) hereof; 
 (vii) any violation of Section 2.6 hereof, subject to the right to contest
set forth in Section 2.7; 
 (viii) any violation of Section 8.3 hereof; 

(ix) any Environmental Condition; 

  
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 (x) after an Event of Default has occurred, Borrower (or any other member of the Borrower Group)
in any way, directly or indirectly, takes any action to stay, hinder, interfere, delay or impede Lender from foreclosing the Security Instrument or exercising its other remedies under the Loan Documents; provided that neither Borrower nor any other
member of the Borrower Group shall be liable to the extent of any applicable Losses and Liabilities arising solely from a defense of Borrower or any member of the Borrower Group raised in good faith; 

(xi) the removal or disposal of any portion of the Property after an Event of Default, unless any personal property that is removed or
disposed of is replaced with personal property of the same utility and the same or greater value; or 
 (xii) any violation of
Borrower’s obligations under Article XI hereof upon a Cash Management Trigger Event Period (defined herein). 

(c) Notwithstanding anything to the contrary contained herein, in the event of the occurrence of any Full Recourse Event, the term
“Recourse Obligations of Borrower” shall be deemed to include all the Obligations. For purposes hereof, the term “Full Recourse Event” shall mean: 

(i) Borrower, or any member of the Borrower Group (as hereinafter defined) challenging or disputing the validity or enforceability of any of
the provisions of this Security Instrument or any of the other Loan Documents or the validity, enforceability or priority of the liens and security interests securing payment of amounts owing or payable under the terms of the Note, this Security
Instrument or any of the other Loan Documents. As used in this Security Instrument, the term “Borrower Group” shall mean Borrower and Borrower’s Affiliates or any other party having Control of Borrower (which shall
include, but not be limited to, any creditor or claimant acting in concert with Borrower); 
 (ii) (A) Borrower files any petition or
commences any proceeding pursuant to any reorganization, bankruptcy, insolvency or similar law or any such petition or any such proceeding is filed or commenced against Borrower and is not dismissed within thirty (30) days of filing;
(B) Borrower or any other member of the Borrower Group objects to a motion by Lender for relief from any stay or injunction from pursuing a foreclosure or any other remedial action permitted under the Loan Documents; (C) the Property or
any part thereof shall become an asset in (1) a voluntary bankruptcy or insolvency proceeding, or (2) an involuntary bankruptcy or insolvency proceeding that is not dismissed within sixty (60) days of filing; (C) if a court of
competent jurisdiction holds that the granting, execution or delivery of this Security Instrument or any other Loan Documents is or constitutes a fraudulent conveyance under any bankruptcy, insolvency or fraudulent conveyance law or is otherwise
voidable under any such laws; or (D) if at any time while the Equity Bridge Loan is outstanding, SSSST Student Holdco, LLC, a Delaware limited liability company (“Sole Member”), Affiliated Operating Partnership or REIT
Guarantor files any petition or commences any proceeding pursuant to any reorganization, bankruptcy, insolvency or similar law or any such petition or proceeding is filed or commenced against Sole Member, Affiliated Operating Partnership or REIT
Guarantor that is not dismissed within sixty (60) days of filing; 

  
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 (iii) any Transfer is made in violation of the provisions of Section 5.1
hereof; 
 (iv) a court of competent jurisdiction holds that the granting, execution or delivery of this Security Instrument or any other
Loan Documents or the acquisition of the Property by Borrower constitutes a fraudulent conveyance under any bankruptcy, insolvency or fraudulent conveyance law or is otherwise voidable under any such laws; or 

(v) any violation of Section 2.1(f) hereof, and such violation is a factor in the substantive consolidation of the assets
and liabilities of Borrower and any other Person. 
 (d) Nothing herein shall be deemed to be a waiver of any right which Lender may have
under Sections 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Obligations or to require that all collateral shall continue to secure all of the Obligations owing to Lender in
accordance with the Note, this Security Instrument and the other Loan Documents. 
 9.22 Entire Agreement and Modifications. This
Security Instrument cannot be altered, amended, modified, terminated or discharged, except in a writing signed by the party against whom enforcement of such alteration, amendment, modification, termination or discharge is sought. It is expressly
understood and agreed that neither this Security Instrument nor any of the other Loan Documents can be modified orally and no oral modifications or other agreements with respect to this Security Instrument or any other Loan Document shall be valid
or enforceable. Borrower agrees that the written agreements evidenced by this Security Instrument and the other Loan Documents represent the final agreement between the parties hereto and thereto and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements among the parties. 
 9.23
Commissions. Borrower agrees to pay and to indemnify and hold Lender harmless from any and all loss, cost or expense (including reasonable attorneys’ fees and expenses) arising from the claims of any brokers or anyone claiming a right to
any fees in connection with the financing of the Property by, through or under Borrower or its Affiliates (as defined in the Note). Notwithstanding the foregoing, Borrower acknowledges that Lender or its affiliates may have a contractual
relationship with the broker, if any, that arranged the Loan on Borrower’s behalf, and that such broker may be entitled to fees from Lender or its affiliates in connection with the origination, closing or servicing of the Loan, which fees shall
be in addition to any brokerage fees owed by Borrower to such broker. Borrower shall not be responsible for any such additional fees. Borrower acknowledges and agrees that it has made and will make such inquiries of the broker, if any, that arranged
the Loan with respect to the nature or existence of such arrangement. No agreement by Lender to pay any such fees or compensation to such broker (if any) shall be binding upon Lender unless it is set forth in separate written instrument that has
been duly executed by Lender and such broker. 

  
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 9.24 Intentionally Omitted. 

9.25 Usury Savings Clause. It is the intention of Borrower and Lender to conform strictly to all applicable usury laws now or
hereinafter in force. All agreements in this Security Instrument and in the other Loan Documents are expressly limited so that in no contingency or event whatsoever, whether by reason of advancement or acceleration of maturity of the Obligations, or
otherwise, shall the amount paid or agreed to be paid hereunder or thereunder for the use, forbearance or detention of money, to the extent that any sums secured hereby or by the other Loan Documents shall not be exempt from such laws, exceed the
highest lawful rate permitted under applicable usury laws as now or hereafter construed by the court having jurisdiction over such matters. If, from any circumstance whatsoever, fulfillment of any provision of the Loan Documents, at the time
performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law which a court of competent jurisdiction may deem applicable hereto, then, ipso facto, the obligation to be fulfilled shall be reduced to
the limit of such validity and if, from any circumstance whatsoever, Lender shall ever receive as interest an amount which would exceed the highest lawful rate, the receipt of such excess shall, at the option of Lender, be deemed a mistake and such
excess shall be rebated to Borrower or, held in trust by Lender for the benefit of Borrower and shall be credited against the principal amount of the Obligations to which the same may lawfully be credited, and any portion of such excess not capable
of being so credited shall be rebated to Borrower. The aggregate of all interest (whether designated as interest, service charges, points or otherwise) contracted for, chargeable, or receivable under the Note, this Security Instrument, or any other
Loan Document shall under no circumstances exceed the maximum legal rates upon the unpaid principal balance of the Note remaining from time to time. In the event such interest does exceed the maximum legal rate, it shall be deemed a mistake and such
excess shall be canceled automatically and if theretofore paid, rebated to Borrower or credited on the principal amount of the Note, or if the Note has been repaid, then such excess shall be rebated to Borrower. 

9.26 Right to Deal. In the event that ownership of the Property becomes vested in a Person other than Borrower, Lender may, without
notice to Borrower, deal with such successor or successors in interest with reference to this Security Instrument or the Obligations in the same manner as with Borrower, without in any way vitiating or discharging Borrower’s liability hereunder
or for the payment of the Obligations or being deemed a consent to such vesting. It being agreed that Lender’s dealing with any such successor or successors as aforesaid shall not relieve Borrower of its obligations or liabilities hereunder or
under the Loan Documents (including, without limitation, the Obligations), all of which shall remain the primary obligations and liabilities of Borrower as a principal hereunder and thereunder, and not as merely a guarantor or by way of stand-by
liability. 
 9.27 Sole Discretion of Lender. 

(a) Whenever Lender’s judgment, consent or approval is required under this Security Instrument or any of the other Loan Documents
for any matter, or Lender shall have an option or election under this Security Instrument or any of the other Loan Documents, such judgment, the decision as to whether or not to consent to or approve the same or the exercise of such option or
election shall (except as otherwise expressly provided herein or therein) be made in the sole, absolute, unfettered and subjective discretion of Lender, and as to which decision no standard of reasonableness shall apply or be deemed to apply, and,
furthermore, shall be final and conclusive. The use of the phrase “in Lender’s sole discretion”, “in the sole discretion of 

  
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Lender” and words of similar import, when used in this Security Instrument or any other Loan Document (as well as the absence thereof) with respect to a particular matter shall
not be deemed in any way to limit or modify the provisions of the preceding sentence with respect to such matter. 
 (b) If at any
time Borrower believes that Lender has not acted reasonably in granting or withholding any approval or consent under this Security Instrument or any of the other Loan Documents as to which approval or consent Lender has expressly agreed to act
reasonably, then Borrower’s sole and exclusive remedy shall be to seek injunctive relief or specific performance and no action for monetary damages, punitive damages or any other Losses and Liabilities shall in any event or under any
circumstances be sought or maintained by Borrower against Lender. 
 9.28 Intentionally Omitted. 

9.29 No Joint Venture. The parties intend and agree that the relationship between them shall be solely that of contracting parties.
Nothing contained in this Security Instrument or in any of the Loan Documents shall be deemed or construed to create a partnership, tenancy-in-common, joint tenancy,
joint venture or co-ownership by or between Borrower and Lender. Lender shall not in any way be responsible for the debts, losses or obligations of Borrower with respect to the Property or otherwise. All obligations to pay the Impositions arising
from the ownership, operation or occupancy of the Property and to perform all other agreements and contracts relating to the Property shall be the sole responsibility of Borrower. Borrower, subject to the terms and provisions of the Loan Documents
(including this Security Instrument), shall be free to determine and follow its own policies and practices in the conduct of its business. 

9.30 Indemnification Provisions. THIS SECURITY INSTRUMENT CONTAINS INDEMNIFICATION PROVISIONS WHICH, AMONG OTHER MATTERS AND IN CERTAIN
CIRCUMSTANCES, INDEMNIFY LENDER AND OTHER INDEMNITEES AGAINST THE CONSEQUENCES OF THEIR OWN NEGLIGENCE AND AGAINST ANY STRICT LIABILITY WHICH COULD BE IMPOSED ON LENDER AND SUCH OTHER INDEMNITEES. 

9.31 Applicable Law; Consent to Jurisdiction; No Jury. BORROWER AND LENDER HEREBY AGREE THAT THIS SECURITY INSTRUMENT SHALL BE
INTERPRETED, CONSTRUED, GOVERNED AND ENFORCED ACCORDING TO THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OF CHOICE OF LAW OR CONFLICTS OF LAW THAT WOULD DEFER TO THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION,
EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR CREATION, PERFECTION AND ENFORCEMENT OF THE LIENS AND SECURITY INTEREST CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS WITH RESPECT TO THE PROPERTY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF ARKANSAS, IT BEING UNDERSTOOD THAT BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT 

  
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THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS SECURITY INSTRUMENT OR THE OTHER LOAN DOCUMENTS. BORROWER HEREBY IRREVOCABLY: (A) SUBMITS IN ANY LEGAL PROCEEDING RELATING TO THIS
SECURITY INSTRUMENT TO THE NON-EXCLUSIVE IN PERSONAM JURISDICTION OF ANY STATE OR THE UNITED STATES COURT OF COMPETENT JURISDICTION SITTING IN THE STATE OF NEW YORK, COUNTY OF NEW YORK, IN CONNECTION WITH ANY
MATTER GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK LAW PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND AGREES TO SUIT BEING BROUGHT IN SUCH COURTS, AS LENDER MAY ELECT; (B) WAIVES ANY OBJECTION IT MAY NOW
OR HEREAFTER HAVE TO THE VENUE OF SUCH PROCEEDING IN ANY SUCH COURT OR THAT SUCH PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT; (C) AGREES TO SERVICE OF PROCESS IN ANY LEGAL PROCEEDING BY MAILING OF COPIES THEREOF (BY REGISTERED OR CERTIFIED
MAIL, IF PRACTICABLE) POSTAGE PREPAID, OR BY TELECOPY, TO ITS ADDRESS SET FORTH ABOVE OR SUCH OTHER ADDRESS OF WHICH LENDER SHALL HAVE BEEN NOTIFIED IN WRITING; AND (D) AGREES THAT NOTHING HEREIN SHALL AFFECT LENDER’S RIGHT TO EFFECT
SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, AND THAT LENDER SHALL HAVE THE RIGHT TO BRING ANY LEGAL PROCEEDINGS (INCLUDING A PROCEEDING FOR THE ENFORCEMENT OF A JUDGMENT ENTERED BY ANY OF THE AFOREMENTIONED COURTS) AGAINST BORROWER IN
ANY OTHER COURT OR JURISDICTION IN ACCORDANCE WITH APPLICABLE LAW. 
 BORROWER AND LENDER EACH WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING BASED UPON, OR RELATED TO, THE LOAN SECURED BY THIS SECURITY INSTRUMENT, OR ANY OF THE LOAN DOCUMENTS. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY BORROWER AND LENDER AND BORROWER ACKNOWLEDGES THAT NEITHER LENDER NOR
ANY PERSON ACTING ON BEHALF OF LENDER HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. BORROWER FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS
SECURITY INSTRUMENT AND THE OTHER LOAN DOCUMENTS IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. BORROWER FURTHER ACKNOWLEDGES THAT IT
HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER PROVISION AND AS EVIDENCE OF THIS FACT HAS EXECUTED THIS SECURITY INSTRUMENT BELOW. BORROWER SHALL NOT SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY SUCH ACTION IN WHICH
A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY LENDER EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY
LENDER. 

  
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 ARTICLE X 

ADDITIONAL REPRESENTATIONS, WARRANTIES 

AND WAIVERS OF BORROWER 
 10.1
Conditions to Exercise of Rights. Borrower hereby waives any right it may now or hereafter have to require Lender, as a condition to the exercise of any remedy or other right against Borrower hereunder or under any other document executed by
Borrower in connection with the Loan and the Obligations: 
 (a) to pursue any other right or remedy in Lender’s power; or 

(b) to make or give (except as otherwise expressly provided in the Loan Documents) any presentment, demand, protest, notice of dishonor,
notice of protest or other demand or notice of any kind in connection with any Obligation or any collateral (other than the Property) for any Obligation secured by this Security Instrument or any of the other Loan Documents. 

10.2 Defenses. Borrower hereby waives any defense it may now or hereafter have that relates to: 

(a) any disability or other defense of any other Borrower Party or other Person; 

(b) the unenforceability or invalidity of any collateral assignment (other than this Security Instrument) or guaranty with respect to any
Obligation, or the lack of perfection or continuing perfection or lack of priority of any Lien (other than the lien hereof) which secures any Obligation; 

(c) any failure of Lender to marshal assets in favor of Borrower or any other Person; 

(d) any modification of any Obligation to which Borrower agrees pursuant to the terms and conditions of the Loan Documents, including any
renewal, extension, acceleration or increase in any applicable interest rate; 
 (e) any and all rights and defenses arising out of an
election of remedies by Lender; 
 (f) any failure of Lender to file or enforce a claim in any bankruptcy proceeding of any Person, of the
application or non-application of Section 1111(b)(2) of the United States Bankruptcy Code; 
 (g) any extension of credit or the grant
of any Lien under Section 364 of the United States Bankruptcy Code; 

  
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 (h) any use of cash collateral under Section 363 of the United States Bankruptcy Code; or

 (i) any agreement or stipulation with respect to the provision of adequate protection in any bankruptcy proceeding of any Person. 

10.3 Lawfulness and Reasonableness. Borrower warrants that all of the waivers in this Security Instrument are made with full knowledge
of their significance, and of the fact that events giving rise to any defense or other benefit waived by Borrower may destroy or impair rights which Borrower would otherwise have against Lender, any other Borrower Party and other Persons, or against
Collateral. Borrower agrees that all such waivers are reasonable under the circumstances and further agrees that, if any such waiver is determined (by a court of competent jurisdiction) to be contrary to any law or public policy, the other waivers
herein shall nonetheless remain in full force and effect. 
 10.4 Enforceability. 

(a) Borrower hereby acknowledges that: 

(1) the obligations undertaken by Borrower in this Security Instrument are complex in nature; 

(2) numerous possible defenses to the enforceability of these obligations may presently exist and/or may arise hereafter; 

(3) as part of Lender’s consideration for entering into this transaction, Lender has specifically bargained for the waiver and
relinquishment by Borrower of all such defenses; and 
 (4) Borrower has had the opportunity to seek and receive legal advice from skilled
legal counsel in the area of financial transactions of the type contemplated herein. 
 (b) Borrower does hereby represent and confirm to
Lender that Borrower is fully informed regarding, and that Borrower does thoroughly understand: 
 (1) the nature of all of the possible
defenses to the enforceability of these obligations that may presently exist and/or may arise hereafter; 
 (2) the circumstances under
which such defenses may arise; 
 (3) the benefits which such defenses might confer upon Borrower; and 

(4) the legal consequences to Borrower of waiving such defenses. 

(c) Borrower acknowledges that Borrower makes this Security Instrument with the intent that this Security Instrument and all of the informed
waivers herein shall each and all be fully enforceable by Lender, and that Lender is induced to enter into this transaction in material reliance upon the presumed full enforceability thereof. 

  
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 10.5 Reinstatement of Lien. Lender’s rights hereunder shall be reinstated and
revived, and the enforceability of this Security Instrument shall continue, with respect to any amount at any time paid on account of any Obligation which Lender is thereafter required to restore or return in connection with a bankruptcy,
insolvency, reorganization or similar proceeding with respect to any Person. 
 ARTICLE XI 

CASH MANAGEMENT 
 11.1 Deposit
Account. 
 (a) Upon the first occurrence of a Cash Management Trigger Event Period, Borrower shall promptly establish and maintain an
account (the “Deposit Account”) with Wells Fargo Bank, National Association, or other bank selected by Borrower and approved by Lender (the “Deposit Bank”) in trust for the benefit of Lender in
accordance with an agreement among Borrower, Lender and Deposit Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time (the “Deposit Account Agreement”). The Deposit Account
shall be under the sole dominion and control of Lender. Lender and its servicer shall have the sole right to make withdrawals from the Deposit Account in accordance with the Deposit Account Agreement. All costs and expenses for establishing and
maintaining the Deposit Account shall be paid by Borrower. 
 (b) On the date hereof, Borrower shall deliver to Lender, and Lender will hold
in escrow until the occurrence of a Cash Management Trigger Event Period, a notification executed by Borrower (the “Rent Direction Letter”), which shall irrevocably notify and direct Manager that upon receipt of such Rent
Direction Letter, all Rents and Profits or other amounts due under any Lease and received by Manager or Borrower, shall be delivered within one (1) business day after receipt to the Deposit Account. Borrower hereby authorizes Lender to, upon
the first occurrence of a Cash Management Trigger Event Period, deliver the Rent Direction Letter to Manager and Borrower shall otherwise cause all Rents and Profits to be delivered to the Deposit Account within one (1) business day of receipt
of same by Borrower (including by directing credit card banks and credit card companies with which Borrower or Manager has entered into agreements for the clearance of credit card receipts). Notwithstanding anything to the contrary contained herein
or in any other Loan Documents, in the event Borrower or Manager shall receive any amounts constituting Rents and Profits during a Cash Management Trigger Event Period, Borrower shall, and shall cause Manager to, deposit all such amounts received by
Borrower or Manager into the Deposit Account within one (1) Business Day after receipt thereof. 
 (c) Borrower shall obtain from
Deposit Bank its agreement to transfer, from and after such time as the Deposit Bank has received a Cash Management Activation Notice (as hereinafter defined) and until such time as the Deposit Bank has received a Cash Management De-Activation
Notice (as hereinafter defined), all amounts on deposit in the Deposit Account to the Cash Management Account (as hereinafter defined) in immediately available funds by federal wire transfer once every Business Day. 

  
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 (d) Upon the occurrence and during the continuation of an Event of Default, Lender may, in
addition to any and all other rights and remedies available to Lender, apply any amounts then on deposit in the Deposit Account to the payment of the Obligations in any order, proportion and priority as Lender may determine in its sole and absolute
discretion. 
 (e) The Deposit Account shall not be commingled with other monies held by Borrower or Deposit Bank. 

(f) Borrower shall not further pledge, assign or grant any security interest in the Deposit Account or the monies deposited therein or permit
any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. 

(g) Borrower shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities,
losses, damages, obligations and costs and expenses (including reasonable attorneys’ fees and expenses) arising from or in any way connected with the Deposit Account and/or the Deposit Account Agreement or the performance of the obligations for
which the Deposit Account was established, excluding any such actions, suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses resulting from Lender’s gross negligence or willful misconduct. 

(h) For purposes of this Article XI, (i) the term “Cash Management Trigger Event Period” shall mean
any period commencing on the occurrence of an Event of Default and continuing until the cure of any and all Events of Default, (ii) the term “Cash Management Activation Notice” shall mean a written notice from Lender or
its servicer to the Deposit Bank stating that a Cash Management Trigger Event Period has commenced and instructing the Deposit Bank to transfer all available funds in the Deposit Account to the Cash Management Account in accordance with the Deposit
Account Agreement, and (iii) the term “Cash Management Deactivation Notice” shall mean a written notice from Lender or its servicer to the Deposit Bank stating that a Cash Management Trigger Event Period no longer exists
and instructing the Deposit Bank to transfer all available funds in the Deposit Account to an account designated by Borrower in accordance with the Deposit Account Agreement. 

11.2 Cash Management Account. 

(a) Upon the first occurrence of a Cash Management Trigger Event Period, Borrower shall establish and maintain a segregated account (the
“Cash Management Account”) to be held by a bank selected by Lender (a “Cash Management Bank”) in trust and for the benefit of Lender in accordance with an agreement among Borrower, Lender and Cash
Management Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time (the “Cash Management Agreement”). The Cash Management Account shall be under the sole dominion and control
of Lender. Lender and its servicer shall have the sole right to make withdrawals from the Cash Management Account in accordance with the Cash Management Agreement. All costs and expenses for establishing and maintaining the Cash Management Account
shall be paid by Borrower. 

  
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 (b) On each Business Day during a Cash Management Trigger Event Period, all funds on deposit in
the Cash Management Account shall be applied in the following amounts and order of priority: 
 (i) First, if required by Lender, funds
sufficient to pay the next monthly deposit in accordance with the terms and conditions of Section 2.8 hereof for Impositions and insurance premiums; 

(ii) Second, funds sufficient to pay the fees and expenses of Cash Management Bank and Deposit Bank then due and payable to Cash Management
Bank and Deposit Bank in accordance with the Cash Management Agreement and Deposit Account Agreement; 
 (iii) Third, funds sufficient to
pay the next Monthly Payment Amount; 
 (iv) Fourth, if required by Lender, funds sufficient to pay the next monthly deposit to the Capital
Expenditure Reserves in accordance with the terms and conditions of Section 2.16 hereof; 
 (v) Fifth, funds sufficient
to pay any interest accruing at the Default Rate, late payment charges and any other amounts then due and payable under the Loan Documents 

(vi) Sixth, funds sufficient to pay for monthly Property operating expenses incurred in accordance with the Annual Budget for the Property as
approved by Lender or as certified by the Manager (and reasonably approved by Lender), and as set forth in a request for payment submitted by Borrower to Lender specifying the individual operating expenses in form and substance reasonably acceptable
to Lender; and 
 (vii) Seventh, the remaining amount (the “Excess Cash Flow”) shall be deposited into an account
held by Lender as additional security for the Obligations. Upon the termination of a Cash Management Trigger Event Period, Lender shall release the Excess Cash Flow to Borrower. 

(c) Notwithstanding anything to the contrary contained in this Security Instrument, the Note or the other Loan Documents, upon the occurrence
and during the continuation of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any amounts then on deposit in the Cash Management Account to the payment of the Obligations in any
order, proportion and priority as Lender may determine in its sole and absolute discretion. 
 (d) Borrower hereby agrees that Lender may
modify the Cash Management Agreement for the purpose of establishing additional sub-accounts in connection with any payments otherwise required under this Security Instrument, the Note and the other Loan Documents, which sub-accounts may be ledger
or book entry accounts and not actual accounts. All costs and expenses for establishing and maintaining such accounts shall be paid by Borrower. 

  
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 11.3 Payments Received Under Cash Management Agreement. The insufficiency of funds on
deposit in the Cash Management Account shall not relieve Borrower from the obligation to make any payments, as and when due pursuant to this Security Instrument, the Note and the other Loan Documents, and such obligation shall be separate and
independent, and not conditioned on any event or circumstance whatsoever. Notwithstanding anything to the contrary contained in this Security Instrument, the Note or the other Loan Documents, Borrower’s obligations with respect to the payment
of the Monthly Payment Amount and amounts required to be deposited into the Reserve Funds, if any, shall be deemed satisfied to the extent sufficient amounts are deposited in the Cash Management Account to satisfy such obligations pursuant to the
Cash Management Agreement on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender. 

ARTICLE XII 
 SERVICER 

12.1 Servicer. 

(a) At the option of Lender, the Loan may be serviced by a servicer (together with its agents, nominees or designees, are collectively
referred to herein as “Servicer”) selected by Lender and Lender may delegate all or any portion of its responsibilities under this Security Agreement and the other Loan Documents to Servicer pursuant to a servicing agreement
and/or other agreement providing for the servicing of one or more mortgage loans (collectively, the “Servicing Agreement”) between Lender and Servicer. Borrower shall be responsible for (i) any reasonable set-up fees or
any other initial costs and expenses relating to or arising under the Servicing Agreement in connection with the Loan, and (ii) any reasonable fees and expenses of Servicer (including, without limitation, reasonable attorneys’ fees and
disbursements) in connection with any release of the Property, any cash management duties or activities, any prepayment, defeasance, assumption, amendment or modification of the Loan, any documents or matters requested by Borrower, or work-out of
the Loan or enforcement of the Loan Documents. Without limiting the generality of the foregoing, Servicer shall be entitled to reimbursement of reasonable costs and expenses as and to the same extent (but without duplication) as Lender is entitled
thereto under this Security Agreement and the other Loan Documents. 
 (b) Upon notice thereof from Lender, Servicer shall have the
right to exercise all rights of Lender and enforce all obligations of Borrower and Indemnitor pursuant to the provisions of this Security Agreement and the other Loan Documents. 

(c) Provided Borrower shall have been given notice of Servicer’s address by Lender, Borrower shall deliver, or cause to be delivered, to
Servicer duplicate originals of all notices and other documents and instruments which Borrower or Indemnitor may or shall be required to deliver to Lender pursuant to this Security Agreement and the other Loan Documents (and no delivery of such
notices or other documents and instruments by Borrower or Indemnitor shall be of any force or effect unless delivered to Lender and Servicer as provided above). 

  
 81 

 ARTICLE XIII 

STATE SPECIFIC PROVISIONS 
 13.1
Principles of Construction. In the event of any inconsistencies between the terms and conditions of this Article XIII and any other terms and conditions of this Security Instrument, the terms and conditions of this
Article XIII shall control and be binding. 
 13.2 Homestead Rights. Borrower hereby waives all rights of
homestead exemption in and all right of appraisement of the Property, and relinquishes all rights of curtsey and dower in the Property. Borrower further waives all rights of redemption of the Property, including the right of statutory redemption as
provided by Act 153 of the Acts of 1899, presently codified as Arkansas Code Annotated Sections 18-49-106 and 16-66-502 and all rights of appraisal which otherwise might be available to Borrower pursuant to applicable law. 

13.3 Exercise of Remedies. Any other term of this Security Instrument notwithstanding, Borrower acknowledges that Lender’s
exercise of its remedies hereunder shall be subject to the following terms: Lender specifically reserves the right to pursue statutory foreclosure of Borrower’s rights under this Security Instrument pursuant to Arkansas Code Annotated
Section 18-50-101, et seq., or, alternatively, to pursue judicial foreclosure of all of Borrower’s rights under this Security Instrument pursuant to Arkansas Code Annotated Section 18-49-101, et seq. No remedy shall be deemed
exclusive, and pursuit of one remedy shall not be deemed to be an election of that remedy to the exclusion of any other remedy. In particular, Lender may pursue statutory foreclosure and abandon that remedy before completion and proceed to
foreclosure judicially. 
 [SIGNATURE PAGE FOLLOWS] 

  
 82 

 IN WITNESS WHEREOF, Borrower has executed this Security Instrument as of the day and year
first above written. 
  

					
	BORROWER:
	
	 SSSST 376 W WATSON ST, LLC,

a Delaware limited liability company

		
	By:	 	 Strategic Student & Senior Housing Trust, Inc.,

a Maryland corporation, its Manager

			
		 	By:	 	/s/ H. Michael Schwartz
		 	Name:	 	H. Michael Schwartz
		 	Title:	 	Chief Executive Officer

 ACKNOWLEDGMENT 

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document. 
 STATE OF CALIFORNIA     } 

COUNTY OF ORANGE        } 

On 6/28/17 before me, Francesca Lozano, Notary Public personally appeared H. Michael Schwartz who proved to me on the basis of satisfactory evidence to be the
person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted,
executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

  

					
		  	        WITNESS my hand and official seal.
			
		  	        /s/ Francesca Lozano	  	
			
		  	        Signature of Notary Public	  	
		  		  	(Seal)

 Sterling District - Signature Page to Mortgage, Assignment of Leases and Rents and Security Agreement -
Borrower 

 EXHIBIT A 

LEGAL DESCRIPTION 
 TRACT 1: 

Lots 1 and 16, and part of Lot 15, all in Block 6, of the County Court Addition, an Addition to the city of Fayetteville, Arkansas per the plat of said
Addition on file in the Office of the Circuit Clerk and Ex-Officio Recorder of Washington County, Arkansas, and as also described in Document No. 2014-00020697, as seen on Plat Book 24A, page 42, as follows: 

LOTS 1 AND 16, AND PART OF LOT 15, ALL IN BLOCK 6, OF THE COUNTY COURT ADDITION, AN ADDITION TO THE CITY OF FAYETTEVILLE, ARKANSAS, PER SURVEY PLAT BOOK 4,
PAGE 2, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 16, THENCE SOUTH 02 DEGREES 35 MINUTES 29 SECONDS WEST A DISTANCE OF 248.64 FEET; THENCE SOUTH 02 DEGREES 57 MINUTES 32 SECONDS WEST A DISTANCE
OF 105.00 FEET; THENCE NORTH 87°31’10” WESTA DISTANCE OF 12.75 FEET TO THE POINT OF BEGINNING; THENCE NORTH 87 DEGREES 31 MINUTES 10 SECONDS WEST A DISTANCE OF 290.41 FEET TO THE WEST LINE OF LOT 15 IN BLOCK 6; THENCE ALONG SAID WEST
LINE NORTH 02 DEGREES 38 MINUTES 44 SECONDS EAST A DISTANCE OF 105.40 FEET; THENCE ALONG THE WEST LINE OF SAID LOT 1, NORTH 01 DEGREES 50 MINUTES 27 SECONDS EAST A DISTANCE OF 244.45 FEET TO THE PROPOSED SOUTH RIGHT OF WAY OF LAFAYETTE STREET;
THENCE LEAVING SAID WEST LINE AND ALONG PROPOSED RIGHT OF WAY SOUTH 87 DEGREES 11 MINUTES 51 SECONDS EAST A DISTANCE OF 291.46 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE 4.71 FEET ALONG SAID CURVE, HAVING A RADIUS OF 3.00 FEET AND A LONG
CHORD OF SOUTH 42°13’31” EAST, 4.24 FEET; THENCE SOUTH 02°44’50” WEST A DISTANCE OF 345.19 FEET TO THE POINT OF BEGINNING. CONTAINING 2.34 ACRES MORE OR LESS. 

TRACT 2: 
 PART OF LOTS NUMBERED 3 AND 4 IN BLOCK NUMBERED 6 IN
THE COUNTY COURT ADDITION TO THE CITY OF FAYETTEVILLE, ARKANSAS, AS DESIGNATED UPON THE RECORDED PLAT OF SAID ADDITION AND SAID PART BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: 

COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 3, THENCE SOUTH 01 DEGREES 50 MINUTES 27 SECONDS WEST A DISTANCE OF 80.00 FEET TO THE POINT OF BEGINNING
(P.O.B.); THENCE SOUTH 01 DEGREES 50 MINUTES 27 SECONDS WEST A DISTANCE OF 71.79 FEET; THENCE SOUTH 02 DEGREES 38 MINUTES 45 SECONDS WEST A DISTANCE OF 105.40 FEET TO THE NORTH LINE OF WATSON STREET; THENCE ALONG SAID NORTH LINE NORTH 87 DEGREES 31
MINUTES 10 SECONDS WEST A DISTANCE OF 92.00 FEET; THENCE LEAVING SAID NORTH LINE NORTH 02 DEGREES 43 MINUTES 30 SECONDS EAST A DISTANCE OF 178.12 FEET; THENCE SOUTH 86 DEGREES 56 MINUTES 12 SECONDS EAST A 

District – Exhibit A to Mortgage, Assignment of Leases and Rents and Security Agreement 

 
DISTANCE OF 90.75 FEET TO THE POINT OF BEGINNING (P.O.B.), CONTAINING 16256 SQUARE FEET OR 0.37 ACRES, AS SURVEYED. AND BEING SUBJECT TO AN EASEMENT, ALLEY OR RIGHT OF WAY FOR INGRESS AND EGRESS
OVER, UPON AND ACROSS A 20 FOOT WIDE STRIP OF LAND, THE SOUTH LINE OF WHICH IS 60 FEET NORTH OF AND PARALLEL TO THE NORTH LINE OF WATSON STREET AND EXTENDING FROM THE EAST LINE OF WEST STREET TO THE WEST LINE OF THE ABOVE DESCRIBED PARCEL. 

District – Exhibit A to Mortgage, Assignment of Leases and Rents and Security AgreementEX-10.6

 Exhibit 10.6 

GUARANTY 
 THIS
GUARANTY (this “Guaranty”) is made as of June 28, 2017, by each of H. MICHAEL SCHWARTZ, an individual having an address at 10 Terrace Road, Ladera Ranch, California 92694 (“Individual
Guarantor”), and STRATEGIC STUDENT & SENIOR HOUSING TRUST, INC., a Maryland corporation having an address at 10 Terrace Road, Ladera Ranch, California 92694 (“REIT Guarantor”; and
jointly, severally and collectively with Individual Guarantor, “Guarantor”), jointly and severally in favor of INSURANCE STRATEGY FUNDING IX, LLC, a Delaware limited liability company having an address at 270 Park
Avenue, 9th Floor, New York, New York 10017 (together with its successors and assigns, “Lender”). 
 W I T N E S S E
T H: 
 Pursuant to the terms of that certain Promissory Note (the “Note”), dated as of the date hereof, made
by SSSST 376 W Watson St, LLC, a Delaware limited liability company (“Borrower”), in favor of Lender, Borrower has borrowed from Lender the principal sum of $29,500,000.00 (the “Loan”). The Loan is
evidenced by, among other things, the Note and is secured by, among other things, that certain Mortgage, Assignment of Leases and Rents and Security Agreement dated as of the date hereof, made by Borrower in favor of Lender, as the same may be
amended, modified, supplemented, restated, consolidated, spread, split, extended, replaced or renewed from time to time (the “Security Instrument”; all defined terms used herein which are not otherwise defined herein shall
have the meaning assigned to such terms in the Security Instrument), and the other Loan Documents. 
 It is a condition to
Lender’s making the Loan that this Guaranty be executed and delivered by Guarantor; and in order to induce Lender to make the Loan which Lender would not do but for the execution, delivery and performance of this Guaranty, Guarantor has agreed
to guarantee certain obligations as more fully and particularly set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing
premises and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guarantor unconditionally guarantees and agrees as follows: 

1. Agreement. Guarantor hereby irrevocably and unconditionally guarantees the payment to Lender of the Recourse Obligations of Borrower,
as more particularly described in Section 9.21 of the Security Instrument. 
 2. Remedies. If Guarantor fails to
promptly perform its obligations under this Guaranty, Lender may from time to time, and without first requiring performance by Borrower or exhausting any or all security for the Loan, bring any action at law or in equity or both to compel Guarantor
to perform its obligations hereunder, and to collect in any such action compensation for all Losses and Liabilities, in each case, to the extent actually sustained or incurred by Lender for the failure of Guarantor to perform its obligations,
together with interest thereon at the highest rate of interest then applicable to the Principal Amount of the Loan as set forth in the Note or the Security Instrument. 

 3. Rights of Lender. Guarantor authorizes Lender, without giving notice to Guarantor or
obtaining Guarantor’s consent and without affecting the liability of Guarantor, from time to time to (a) renew or extend all or any portion of Borrower’s obligations under the Note or any of the other Loan Documents; (b) declare
all sums owing to Lender under the Note and the other Loan Documents due and payable upon the occurrence of any Event of Default under the Security Instrument or any of the other Loan Documents; (c) make changes in the dates specified for
payments of any sums payable under the Note or any of the other Loan Documents; (d) otherwise modify the terms of any of the Loan Documents; (e) take and hold security for the performance of Borrower’s obligations under the Note or
the other Loan Documents and exchange, enforce, waive and release any such security; (f) apply such security and direct the order or manner of sale thereof as Lender in its discretion may determine; (g) release, substitute or add any one
or more endorsers of the Note or guarantors of Borrower’s obligations under the Note or the other Loan Documents; (h) apply payments received by Lender from Borrower to any obligations of Borrower to Lender, in such order as Lender shall
determine in its sole discretion, whether or not any such obligations are covered by this Guaranty; (i) accept a conveyance of all or part of the Property conveyed by the Security Instrument in partial satisfaction of the Obligations; and/or
(j) assign this Guaranty in whole or in part. 
 4. Guarantor’s Waivers. Guarantor waives, to the fullest extent permitted
under applicable law, and agrees that its obligations under this Guaranty will not be impaired or affected by (a) any defense based upon any legal disability or other defense of Borrower, Guarantor or other person, or by reason of the cessation
or limitation of the liability of Borrower from any cause other than full payment of all sums payable under the Note or any of the other Loan Documents; (b) any defense based upon any lack of authority of the officers, directors, partners,
members or agents acting or purporting to act on behalf of Borrower or any principal of Borrower and/or Guarantor or any defect in the formation of Borrower or any principal of Borrower and/or Guarantor; (c) any defense based upon the
application by Borrower of the proceeds of the Loan for purposes other than the purposes represented by Borrower to Lender or intended or understood by Lender or Guarantor; (d) any defense of Guarantor based upon Lender’s election of any
remedy against either Guarantor or Borrower; (e) any defense based upon Lender’s failure to disclose to Guarantor any information concerning Borrower’s financial condition or any other circumstances bearing on Borrower’s ability
to pay all sums payable under the Note or any of the other Loan Documents; (f) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any other respects more
burdensome than that of a principal; (g) any defense based upon Lender’s election, in any proceeding instituted under the U.S. Bankruptcy Code, of the application of Section 1111(b)(2) of the U.S. Bankruptcy Code or any successor
statute; (h) any defense based upon any borrowing or any grant of a security interest under Section 364 of the U.S. Bankruptcy Code; (i) any right of subrogation, any right to enforce any remedy which Lender may have against Borrower
and any right to participate in, or benefit from, any security for the Note or the other Loan Documents now or hereafter held by Lender; (j) presentment, demand, protest and notice of any kind; (k) the benefit of any statute of limitations
affecting the liability of Guarantor hereunder or the enforcement hereof; (l) any illegality, irregularity, invalidity or unenforceability in whole or in part of the obligations guaranteed hereunder or under the Loan Documents or any provision
thereof; and/or (m) any defense based on any exercise or non-exercise by Lender of any right, power or remedy under or in respect of the Loan Documents or any security held by Lender with respect thereto, or any waiver of any such right, 

  
 2 

 
power or remedy. Guarantor agrees that the payment of all sums payable under the Note or any of the other Loan Documents or any part thereof or other act which tolls any statute of limitations
applicable to the Note or the other Loan Documents shall similarly operate to toll the statute of limitations applicable to Guarantor’s liability hereunder. Without limitation of any waiver otherwise set forth herein, Guarantor waives all
rights and defenses arising out of an election of remedies by Lender even though that election of remedies, such as a nonjudicial foreclosure with respect to the security for a guaranteed obligation, has destroyed Guarantor’s rights and
reimbursement against the principal. 
 5. REIT Guarantor’s Financial Covenants. Subject to Section 20 hereof, REIT
Guarantor represents and warrants to, and covenants with, Lender, that as of the Individual Guarantor Release Date (defined below), and until such time as the Obligations under the Security Instrument shall be satisfied in full, REIT Guarantor
shall, at all times, maintain (a) a net worth equal to or greater than $40,000,000.00 (“Minimum Net Worth”), as determined by Lender, in its reasonable discretion on a fair market value basis (and which shall not include
REIT Guarantor’s indirect interest in the Property (as defined in the Security Instrument)), and (b) liquid assets which are totally unencumbered (whether in favor of Lender or anyone else) and as to which there are no restrictions upon
the use thereof of not less than $3,000,000.00 (“Minimum Liquidity Standard”), as determined by Lender in Lender’s reasonable discretion, consisting of cash or cash equivalents (classified as such in accordance with
GAAP) or obligations of, or guaranteed by, the United States of America, having a maturity of not more than one year and certificates of deposit (with a maturity of two years or less) issued by, or savings account with, any bank or other financial
institution having net assets of at least $500,000,000.00 (including securities traded daily on any nationally recognized securities exchange) and otherwise reasonably acceptable to Lender. From and after the Individual Guarantor Release Date (as
defined below), REIT Guarantor shall provide reasonably satisfactory evidence to Lender every six (6) months to establish compliance with the Minimum Net Worth and Minimum Liquidity Standard. Failure to maintain either or both of the Minimum
Net Worth and/or the Minimum Liquidity Standard following the Individual Guarantor Release Date shall constitute an Event of Default under the Loan, but shall not, by itself, result in personal liability of REIT Guarantor under this Guaranty. 

6. Guarantor’s Warranties. Guarantor acknowledges and agrees that (a) Lender would not make the Loan but for this Guaranty;
(b) there are no conditions precedent to the effectiveness of this Guaranty; (c) Guarantor has established adequate means of obtaining from sources other than Lender, on a continuing basis, financial and other information pertaining to
Borrower’s financial condition, the Property and Borrower’s activities relating thereto and the status of Borrower’s performance of obligations under the Loan Documents; (d) Guarantor shall keep adequately informed of any facts
or circumstances which might in any way affect Guarantor’s financial risks in entering into this Guaranty; and (e) Lender has made no representation to Guarantor as to any such matters. 

7. Subordination. Guarantor subordinates all present and future indebtedness owing by Borrower or any affiliate of Borrower to
Guarantor (including, but not limited to, any indebtedness owed by REIT Guarantor to Individual Guarantor or by Individual Guarantor to REIT Guarantor, and any rights to subrogation Guarantor may have as a result of any payment by Guarantor under
this Guaranty), together with any interest thereon, to the Obligations. Until 

  
 3 

 
payment in full of the Obligations (and including interest accruing on the Note after the commencement of a proceeding by or against Borrower under the U.S. Bankruptcy Code which interest the
parties agree shall remain a claim that is prior and superior to any claim of Guarantor notwithstanding any contrary practice, custom or ruling in cases under the U.S. Bankruptcy Code generally), Guarantor agrees not to accept any payment or
satisfaction of any kind of indebtedness of Borrower to Guarantor and hereby assigns such indebtedness to Lender, including the right to file proof of claim and to vote thereon in connection with any such proceeding under the U.S. Bankruptcy
Code, including the right to vote on any plan of reorganization. Further, if Guarantor shall comprise more than one person, firm or corporation, Guarantor agrees that until such payment in full of the Obligations, (a) no one of them shall
accept payment from the others by way of contribution on account of any payment made hereunder by such party to Lender, (b) no one of them will take any action to exercise or enforce any rights to such contribution, and (c) if any of
Guarantor should receive any payment, satisfaction or security for any indebtedness of Borrower to any of Guarantor or for any contribution by the others of Guarantor for payment made hereunder by the recipient to Lender, the same shall be delivered
to Lender in the form received, endorsed or assigned as may be appropriate for application on account of, or as security for, the Obligations and until so delivered, shall be held in trust for Lender as security for the Obligations. 

8. Bankruptcy of Borrower or Guarantor. In any bankruptcy or other proceeding in which the filing of claims is required by law,
Guarantor shall file all claims which Guarantor may have against Borrower relating to any indebtedness of Borrower to Guarantor and shall assign to Lender all rights of Guarantor thereunder. If Guarantor does not file any such claim, Lender, as
attorney-in-fact for Guarantor, is hereby authorized to do so in the name of Guarantor or, in Lender’s discretion, to assign the claim to a nominee and to cause proof of claim to be filed in the name of Lender’s nominee. The foregoing
power of attorney is coupled with an interest and cannot be revoked. Lender or its nominee shall have the right, in its sole and absolute discretion, to accept or reject any plan proposed in such proceeding and to take any other action which a party
filing a claim is entitled to do. In all such cases, whether in administration, bankruptcy or otherwise, the person or persons authorized to pay such claim shall pay to Lender the amount payable on such claim and, to the full extent necessary for
that purpose, Guarantor hereby assigns to Lender all of Guarantor’s rights to any such payments or distributions; provided, however, Guarantor’s obligations hereunder shall not be satisfied except to the extent that Lender receives cash by
reason of any such payment or distribution. If Lender receives anything hereunder other than cash, the same shall be held as collateral for amounts due under this Guaranty. If all or any portion of the obligations guarantied hereunder are paid or
performed, the obligations of Guarantor hereunder shall continue and shall remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from Lender as a preference,
fraudulent transfer or otherwise under the U.S. Bankruptcy Code or other similar laws, irrespective of (a) any notice of revocation given by Guarantor prior to such avoidance or recovery, or (b) full payment and performance of all of the
indebtedness and obligations evidenced and secured by the Loan Documents. 

  
 4 

 9. Assignment of Interest. Guarantor agrees that Lender may assign all or any part of the
Loan or its interest in this Guaranty and its rights granted herein or under any of the Loan Documents in accordance with the terms of Section 9.19 of the Security Instrument, which terms are hereby incorporated by reference into
this Guaranty and made a part hereof. 
 10. Independent Obligations. This is an agreement of payment and not of collection and the
obligations of Guarantor hereunder shall be in addition to and shall not limit or in any way affect the obligations of Guarantor under any other existing or future guaranties or indemnities unless said other guaranties or indemnities are expressly
modified or revoked in writing. This Guaranty is independent of the obligations of Borrower under the Note and the other Loan Documents. Lender may bring a separate action to enforce the provisions hereof against Guarantor without taking action
against Borrower or any other party or joining Borrower or any other party as a party to such action. 
 11. Attorneys’ Fees;
Enforcement. Notwithstanding anything contained herein to the contrary, if any attorney is engaged by Lender to enforce or defend any provision of this Guaranty, or as a consequence of any default under this Guaranty, with or without the filing
of any legal action or proceeding, Guarantor shall pay to Lender, within ten (10) days following demand, all reasonable attorneys’ fees and costs incurred by Lender in connection therewith, together with interest thereon following such ten
(10) day period until paid at the Default Rate. 
 12. Rules of Construction. The word “Borrower” as used herein shall
include the named Borrower and any other person at any time assuming or otherwise becoming primarily liable for all or any part of the obligations of the named Borrower under the Note and the other Loan Documents. The term “person” as used
herein shall include any individual, company, trust or other legal entity of any kind whatsoever. If this Guaranty is executed by more than one person or entity, the term “Guarantor” shall include all such persons or entities, jointly
and severally. When the context and construction so require, all words used in the singular herein shall be deemed to have been used in the plural and vice versa. All headings appearing in this Guaranty are for convenience only and shall be
disregarded in construing this Guaranty. 
 13. Credit Reports. Each legal entity and individual obligated on this Guaranty hereby
authorizes Lender to order and obtain, from a credit reporting agency of Lender’s choice, a third party credit report on such legal entity and individual. 

14. Governing Law; Waivers. 

(a) GUARANTOR AND LENDER HEREBY AGREE THAT THIS GUARANTY SHALL BE INTERPRETED, CONSTRUED, GOVERNED AND ENFORCED ACCORDING TO THE
SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OF CHOICE OF LAW OR CONFLICTS OF LAW THAT WOULD DEFER TO THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION, PROVIDED THAT AT ALL TIMES THE PROVISIONS FOR CREATION,
PERFECTION AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS WITH RESPECT TO THE PROPERTY CREATED PURSUANT TO THE SECURITY INSTRUMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ARKANSAS, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY LAW, GUARANTOR HEREBY 

  
 5 

 
UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION OTHER THAN THE STATE OF NEW YORK AND/OR THE STATE OF ARKANSAS, AS AFORESAID, SHALL GOVERN THIS
GUARANTY OR THE OTHER LOAN DOCUMENTS. 
 (b) GUARANTOR HEREBY CONSENTS FOR ITSELF AND IN RESPECT OF ITS PROPERTIES, GENERALLY,
UNCONDITIONALLY AND IRREVOCABLY, TO THE NONEXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS IN THE COUNTY AND STATE OF NEW YORK WITH RESPECT TO ANY PROCEEDING RELATING TO ANY MATTER, CLAIM OR DISPUTE ARISING UNDER THIS GUARANTY OR THE
TRANSACTIONS CONTEMPLATED THEREBY. GUARANTOR FURTHER CONSENTS, GENERALLY, UNCONDITIONALLY AND IRREVOCABLY, TO THE NONEXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS OF THE COUNTY AND STATE IN WHICH ANY OF THE PROPERTY IS LOCATED IN RESPECT OF
ANY PROCEEDING RELATING TO ANY MATTER, CLAIM OR DISPUTE ARISING WITH RESPECT TO SUCH PROPERTY. GUARANTOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS, GENERALLY, UNCONDITIONALLY AND IRREVOCABLY, AT THE ADDRESSES SET FORTH ABOVE IN
CONNECTION WITH ANY OF THE AFORESAID PROCEEDINGS IN ACCORDANCE WITH THE RULES APPLICABLE TO SUCH PROCEEDINGS AND/OR PURSUANT TO THE LAST PARAGRAPH HEREOF. TO THE EXTENT PERMITTED BY APPLICABLE LAW, GUARANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION
WHICH IT MAY NOW HAVE OR HAVE IN THE FUTURE TO THE LAYING OF VENUE IN RESPECT OF ANY OF THE AFORESAID PROCEEDINGS BROUGHT IN THE COURTS REFERRED TO ABOVE AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING HEREIN SHALL AFFECT THE RIGHT OF LENDER TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW OR TO COMMENCE PROCEEDINGS OR OTHERWISE PROCEED AGAINST GUARANTOR IN ANY JURISDICTION.

 (c) PROCESS MAY BE SERVED BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO GUARANTOR AT ITS ADDRESS REFERRED TO ABOVE.

 (d) GUARANTOR AND LENDER EACH WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO,
THIS GUARANTY, THE LOAN SECURED BY THE SECURITY INSTRUMENT, OR ANY OF THE LOAN DOCUMENTS. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY GUARANTOR AND LENDER AND GUARANTOR ACKNOWLEDGES THAT NEITHER LENDER NOR ANY PERSON ACTING ON
BEHALF OF LENDER HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. GUARANTOR SHALL NOT SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY SUCH ACTION IN WHICH A JURY TRIAL
HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. 

  
 6 

 (e) GUARANTOR HEREBY ACKNOWLEDGES THAT: (A) THE OBLIGATIONS UNDERTAKEN BY
GUARANTOR IN THIS GUARANTY ARE COMPLEX IN NATURE, (B) NUMEROUS POSSIBLE DEFENSES TO THE ENFORCEABILITY OF THESE OBLIGATIONS MAY PRESENTLY EXIST AND/OR MAY ARISE HEREAFTER, (C) AS PART OF LENDER’S CONSIDERATION FOR ENTERING INTO THIS
TRANSACTION, LENDER HAS SPECIFICALLY BARGAINED FOR THE WAIVER AND RELINQUISHMENT BY GUARANTOR OF ALL SUCH DEFENSES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, AS WELL AS GUARANTOR’S RIGHT TO A TRIAL BY JURY, AND (D) GUARANTOR HAS
HAD THE OPPORTUNITY TO SEEK AND RECEIVE LEGAL ADVICE FROM SKILLED LEGAL COUNSEL IN THE AREA OF FINANCIAL TRANSACTIONS OF THE TYPE CONTEMPLATED HEREIN. GUARANTOR DOES HEREBY REPRESENT AND CONFIRM TO LENDER THAT GUARANTOR IS FULLY INFORMED REGARDING,
AND THAT GUARANTOR FULLY UNDERSTANDS (I) THE NATURE OF ALL SUCH POSSIBLE DEFENSES, (II) THE CIRCUMSTANCES UNDER WHICH SUCH DEFENSES MAY ARISE, (III) THE BENEFITS WHICH SUCH DEFENSES MIGHT CONFER UPON GUARANTOR, AND (IV) THE LEGAL CONSEQUENCES
TO GUARANTOR OF WAIVING SUCH DEFENSES AND ITS RIGHT TO A TRIAL BY JURY. GUARANTOR ACKNOWLEDGES THAT GUARANTOR MAKES THIS GUARANTY WITH THE INTENT THAT THIS GUARANTY AND ALL OF THE INFORMED WAIVERS HEREIN SHALL EACH AND ALL BE FULLY ENFORCEABLE BY
LENDER, AND THAT LENDER IS INDUCED TO ENTER INTO THIS TRANSACTION IN MATERIAL RELIANCE UPON THE PRESUMED FULL ENFORCEABILITY THEREOF. 

(f) GUARANTOR FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN CONNECTION WITH THE DELIVERY OF THIS GUARANTY AND IN MAKING THE
WAIVERS CONTAINED HEREIN BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS SUCH WAIVERS WITH COUNSEL. 

(g) THE PROVISIONS OF THIS GUARANTY SHALL NOT BE MODIFIED OR DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY LENDER
EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY LENDER. 
 15. Notices. Any notice, demand, consent, approval, direction, waiver,
agreement or other communication (any “Notice”) required or permitted hereunder or under any other documents in connection herewith shall be in writing and shall be directed as follows: 

If to Individual Guarantor: 
 H.
Michael Schwartz 
 10 Terrace Road 

Ladera Ranch, California 92694 

Email: hms@sam.com 

  
 7 

 If to REIT Guarantor: 

Strategic Student & Senior Housing Trust, Inc. 

10 Terrace Road 
 Ladera Ranch,
California 92694 
 Attn: H. Michael Schwartz 

Email: hms@sam.com 
 If
to Lender: 
 Insurance Strategy Funding IX, LLC 

c/o JPMorgan Asset Management 

270 Park Avenue, 9th Floor 
 New
York, New York 10017 
 Attention: William Mack 

Email: william.c.mack@jpmchase.com 

with a copy to: 
 Katten Muchin
Rosenman LLP 
 550 South Tryon Street, Suite 2900 

Charlotte, NC 28202 
 Attention:
Daniel S. Huffenus, Esq. 
 Email: dan.huffenus@kattenlaw.com 

or to such changed address as a party hereto shall designate to the other party hereto from time to time in writing. Any counsel designated above or
replacement counsel which may be designated respectively by each party by Notice to the other party hereto is hereby authorized to give Notices hereunder on behalf of its respective client. 

Notices shall be (i) personally delivered to the offices set forth above, in which case they shall be deemed delivered on the date of
delivery or first (1st) Business Day thereafter if delivered other than on a Business Day (or after 5:00 p.m. New York City time) to said offices; (ii) sent by registered or certified mail, postage prepaid, return receipt requested, in
which case they shall be deemed delivered on the date shown on the receipt unless delivery is refused or delayed by the addressee in which event they shall be deemed delivered on the earliest to occur of the first (1st) Business Day on or after
the date of delivery or the third (3rd) Business Day after such notice has been deposited in the U.S. Mail in accordance with the terms hereof; or (iii) sent by a nationally recognized overnight courier, in which case they shall be deemed
delivered on the first (1st) Business Day following the date such notice was delivered to or picked up by the courier; or (iv) sent by e-mail provided that the sender shall also promptly deliver a hard copy in the manner set forth in
subsection (i) or (iii) of this Section 15. 

  
 8 

 16. Miscellaneous. The provisions of this Guaranty will bind and benefit the heirs,
executors, administrators, legal representatives, nominees, successors and assigns of Guarantor and Lender. The liability of all persons and entities who are in any manner obligated hereunder shall be joint and several. If any provision of this
Guaranty shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed from this Guaranty and the remaining parts shall remain in full force as though the invalid, illegal or
unenforceable portion had never been part of this Guaranty. 
 17. Additional Representations of Guarantor. Guarantor represents and
warrants to Lender that: (a) this Guaranty constitutes the legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
receivership and similar laws of general application to creditors’ rights from time to time in effect; (b) there is no action, suit, proceeding, inquiry or investigation, at law or in equity, or before or by any Governmental Authority
pending, or to the Guarantor’s actual knowledge, threatened in writing, against Guarantor wherein an unfavorable decision, ruling or finding would have a material adverse effect on Guarantor’s financial condition or the validity or
enforceability of this Guaranty; (c) neither the execution and delivery of this Guaranty, the consummation of the transactions contemplated hereunder nor the fulfillment of, or compliance with, the terms and conditions contained herein is
prevented, limited by, conflicts with, or results in a breach of the terms, conditions or provisions of any (i) applicable law, or (ii) indebtedness, agreement or instrument of whatever nature to which Guarantor is now a party or by which
Guarantor is bound, or constitutes a default under any of the foregoing (nor will such execution, delivery, consummation and performance result in the creation or imposition of any Lien upon any of Guarantor’s property or assets);
(d) Guarantor is solvent, is able to pay its Obligations as they become due and has capital sufficient to carry on its business and all businesses in which it is engaged or is about to engage, and now owns property having a value both at fair
valuation and at present fair salable value greater than the amount required to pay its Obligations as they mature. 
 18. Interest.
Any amounts that become due and payable by Guarantor under this Guaranty shall bear interest at a rate per annum equal to the Default Rate from the date such sums first become due and payable to the date that such sums are paid to Lender. 

19. Counterparts. This Guaranty may be executed in any number of counterparts with the same effect as if all parties hereto had
executed the same document. All such counterparts shall be construed together and shall constitute one instrument, but in making proof hereof it shall only be necessary to produce one such counterpart. The failure of any party hereto to execute this
Guaranty, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder. 
 20. Release of
Individual Guarantor. Notwithstanding anything herein to the contrary, at such time as REIT Guarantor provides reasonably satisfactory evidence to Lender establishing that REIT Guarantor satisfies both the Minimum Net Worth and the Minimum
Liquidity Standard, Lender shall provide Individual Guarantor with a written release, releasing Individual Guarantor from liability under to this Guaranty, and this Guaranty shall have no further force or effect with respect to Individual Guarantor
(but shall remain in full force and 

  
 9 

 
effect with respect to REIT Guarantor) (the date of such written release from Lender, the “Individual Guarantor Release Date”). Any reasonable costs or expenses incurred
by Lender with respect to this Section 20 (including reasonable attorney’s fees) shall be paid by Borrower or Guarantor on or prior to the Individual Guarantor Release Date as a condition for such release. 

21. Replacement of REIT Guarantor. Following the Individual Guarantor Release Date, Borrower shall be permitted to substitute a
replacement guarantor for REIT Guarantor hereunder, provided that (a) no Event of Default hereunder or under any of the other Loan Documents has occurred and is then continuing; and (b) each of the following terms and conditions are
satisfied: (i) Borrower delivers Lender at least thirty (30) days’ written notice of its intent to provide a replacement guarantor for REIT Guarantor, (ii) such replacement guarantor is a Satisfactory Replacement Guarantor (as
defined below), (iii) within thirty (30) days after delivery of the written notice described in the preceding subclause (i), such Satisfactory Replacement Guarantor assumes, in a writing in form and substance acceptable to Lender, all
of the obligations of REIT Guarantor hereunder and under the other Loan Documents (including the Environmental Indemnity Agreement executed by REIT Guarantor on the date hereof), (iv) concurrently with such assumption, each of Borrower and such
Satisfactory Replacement Guarantor affirms each of their respective obligations under the Loan Documents, and (v) prior to or concurrently with such assumption, as applicable, Lender receives such information, documentation and opinions as may
be required by Lender in connection with such assumption and the foregoing at Borrower’s sole cost and expense. As used herein, the term “Satisfactory Replacement Guarantor” shall mean a replacement guarantor that
(1) satisfies the Minimum Net Worth and Minimum Liquidity Standard, (2) Controls Borrower, directly or indirectly, (3) is not a Prohibited Person, and (4) is acceptable to Lender in Lender’s sole and absolute discretion. Any
costs or expenses incurred by Lender with respect to this Section 21 (including reasonable attorney’s fees and search costs) shall be paid by Borrower and/or REIT Guarantor on or prior to the replacement of REIT Guarantor as a
condition for such replacement. In the event that a Satisfactory Replacement Guarantor replaces REIT Guarantor, then Lender shall provide REIT Guarantor with a written release, releasing REIT Guarantor from liability under this Guaranty and the
Environmental Indemnity Agreement. 
 [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] 

  
 10 

 IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date appearing on the first
page of this Guaranty. 
  

	
	GUARANTOR: INDIVIDUAL GUARANTOR
	
	/s/ H. Michael Schwartz
	H. MICHAEL SCHWARTZ

 ACKNOWLEDGMENT 

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this
certificate is attached, and not the truthfulness, accuracy, or validity of that document. 
 STATE OF CALIFORNIA
        } 
 COUNTY OF ORANGE            } 

On 6/28/17 before me, Francesca Lozano, Notary Public personally appeared H. Michael Schwartz who proved to me on the basis of satisfactory evidence to be the
person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted,
executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 WITNESS my hand and official seal. 

	
	
	/s/ Francesca Lozano
	Signature of Notary Public

 (Seal) 

[Signatures continue on following page.] 

Sterling District – Signature Page to Guaranty – Individual Guarantor 

 
			
	 GUARANTOR: REIT GUARANTOR
  

STRATEGIC STUDENT & SENIOR HOUSING TRUST, INC., a Maryland corporation

		
	By:	 	/s/ H. Michael Schwartz
	 Name: H. Michael Schwartz
 Title:
Chief Executive Officer

 ACKNOWLEDGMENT 

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this
certificate is attached, and not the truthfulness, accuracy, or validity of that document. 
 STATE OF CALIFORNIA
        } 
 COUNTY OF ORANGE            } 

On 6/28/17 before me, Francesca Lozano, Notary Public personally appeared H. Michael Schwartz who proved to me on the basis of satisfactory evidence to be the
person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted,
executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 WITNESS my hand and official seal. 

	
	
	/s/ Francesca Lozano
	Signature of Notary Public

 (Seal) 

Sterling District – Signature Page to Guaranty – REIT Guarantor

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