Document:

Loan Agreement, dated March 8, 2004 with General Electric

 Exhibit 10.4 
  
 Loan No. 76-0032033 
  

  
 GENERAL ELECTRIC CAPITAL
CORPORATION 
 (Lender) 
  
 to 
  
 EXTRA SPACE PROPERTIES THREE LLC 
 (Borrower) 
  

  
 AMENDED AND RESTATED 
 LOAN AGREEMENT 
  

  
 Dated as of: March 8, 2004 
  
 Location of Properties: CA, FL, MA, MO, PA 
  
 DOCUMENT PREPARED BY: 
  
 Sheppard,
Mullin, Richter & Hampton LLP 
 650 Town Center Drive, 4th Floor 
 Costa Mesa, California 92626-1925 
  
 Attention: Steven W. Cardoza, Esquire 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE 1 CERTAIN DEFINITIONS
	  	1
	 Section 1.1
	  	Certain Definitions	  	1
		
	 ARTICLE 2 LOAN TERMS
	  	5
	 Section 2.1
	  	The Loan	  	5
	 Section 2.2
	  	Interest Rate; Late Charge	  	5
	 Section 2.3
	  	Terms of Payment	  	5
	 Section 2.4
	  	Security	  	6
		
	 ARTICLE 3 INSURANCE, CONDEMNATION, AND IMPOUNDS
	  	7
	 Section 3.1
	  	Insurance	  	7
	 Section 3.2
	  	Use and Application of Insurance Proceeds	  	8
	 Section 3.3
	  	Condemnation Awards	  	9
	 Section 3.4
	  	Impounds	  	9
		
	 ARTICLE 4 ENVIRONMENTAL MATTERS
	  	10
	 Section 4.1
	  	Certain Definitions	  	10
	 Section 4.2
	  	Representations and Warranties on Environmental Matters	  	10
	 Section 4.3
	  	Covenants on Environmental Matters	  	10
	 Section 4.4
	  	Allocation of Risks and Indemnity	  	12
	 Section 4.5
	  	No Waiver	  	12
	 Section 4.6
	  	Lender Cure Rights	  	12
		
	 ARTICLE 5 LEASING MATTERS
	  	13
	 Section 5.1
	  	Representations and Warranties on Leases	  	13
	 Section 5.2
	  	Standard Lease Form; Approval Rights	  	13
	 Section 5.3
	  	Covenants	  	13
	 Section 5.4
	  	Tenant Estoppels	  	14
		
	 ARTICLE 6 REPRESENTATION AND WARRANTIES
	  	14
	 Section 6.1
	  	Organization, Power and Authority	  	14
	 Section 6.2
	  	Validity of Loan Documents	  	14
	 Section 6.3
	  	Liabilities; Litigation	  	14
	 Section 6.4
	  	Taxes and Assessments	  	15
	 Section 6.5
	  	Other Agreements; Defaults	  	15
	 Section 6.6
	  	Compliance with Law	  	15
	 Section 6.7
	  	Location of Borrower	  	15
	 Section 6.8
	  	ERISA	  	15
	 Section 6.9
	  	Forfeiture	  	16
	 Section 6.10
	  	Tax Filings	  	16
	 Section 6.11
	  	Solvency	  	16
	 Section 6.12
	  	Full and Accurate Disclosure	  	16
	 Section 6.13
	  	Flood Zone	  	16
	 Section 6.14
	  	Single Purpose Entity/Separateness	  	17
	 Section 6.15
	  	Compliance with Anti-Terrorism Orders	  	18
	 Section 6.16
	  	Prior Loan Documents	  	20

  

 TABLE OF CONTENTS – Page i 

					
	 ARTICLE 7 FINANCIAL REPORTING
	  	21
	 Section 7.1
	  	Financial Statements	  	21
	 Section 7.2
	  	Accounting Principles	  	21
	 Section 7.3
	  	Other Information; Access	  	21
	 Section 7.4
	  	Annual Budget	  	21
		
	 ARTICLE 8 COVENANTS
	  	22
	 Section 8.1
	  	Due On Sale and Encumbrance; Transfers of Interests	  	22
	 Section 8.2
	  	Taxes; Utility Charges	  	22
	 Section 8.3
	  	Control; Management	  	22
	 Section 8.4
	  	Operation; Maintenance; Inspection	  	22
	 Section 8.5
	  	Taxes on Security	  	22
	 Section 8.6
	  	Legal Existence; Name, Etc.	  	23
	 Section 8.7
	  	Further Assurances	  	23
	 Section 8.8
	  	Estoppel Certificates	  	23
	 Section 8.9
	  	Notice of Certain Events	  	23
	 Section 8.10
	  	Indemnification	  	24
	 Section 8.11
	  	Cooperation	  	24
	 Section 8.12
	  	Payment For Labor and Materials	  	25
		
	 ARTICLE 9 EVENTS OF DEFAULT
	  	25
	 Section 9.1
	  	Payments	  	25
	 Section 9.2
	  	Insurance	  	25
	 Section 9.3
	  	Sale, Encumbrance, Etc.	  	25
	 Section 9.4
	  	Covenants	  	25
	 Section 9.5
	  	Representations and Warranties	  	25
	 Section 9.6
	  	Other Encumbrances	  	25
	 Section 9.7
	  	Involuntary Bankruptcy or Other Proceeding	  	25
	 Section 9.8
	  	Voluntary Petitions, Etc.	  	26
	 Section 9.9
	  	Anti-Terrorism	  	26
	 Section 9.10
	  	Oakland Ground Lease	  	26
		
	 ARTICLE 10 REMEDIES
	  	26
	 Section 10.1
	  	Remedies - Insolvency Events	  	26
	 Section 10.2
	  	Remedies - Other Events	  	26
	 Section 10.3
	  	Lender’s Right to Perform the Obligations	  	27
		
	 ARTICLE 11 MISCELLANEOUS
	  	27
	 Section 11.1
	  	Notices	  	27
	 Section 11.2
	  	Amendments and Waivers	  	28
	 Section 11.3
	  	Limitation on Interest	  	28
	 Section 11.4
	  	Invalid Provisions	  	28
	 Section 11.5
	  	Reimbursement of Expenses	  	29
	 Section 11.6
	  	Approvals; Third Parties; Conditions	  	29
	 Section 11.7
	  	Lender Not in Control; No Partnership	  	29
	 Section 11.8
	  	Contest of Certain Claims	  	30
	 Section 11.9
	  	Time of the Essence	  	30
	 Section 11.10
	  	Successors and Assigns	  	30
	 Section 11.11
	  	Renewal, Extension or Rearrangement	  	30
	 Section 11.12
	  	Waivers	  	30
	 Section 11.13
	  	Cumulative Rights; Joint and Several Liability	  	30

  

 TABLE OF CONTENTS – Page ii 

					
	 Section 11.14
	  	Singular and Plural	  	30
	 Section 11.15
	  	Phrases	  	31
	 Section 11.16
	  	Exhibits and Schedules	  	31
	 Section 11.17
	  	Titles of Articles Sections and Subsections	  	31
	 Section 11.18
	  	Promotional Material	  	31
	 Section 11.19
	  	Survival	  	31
	 Section 11.20
	  	Waiver of Jury Trial	  	31
	 Section 11.21
	  	Waiver of Punitive or Consequential Damages	  	31
	 Section 11.22
	  	Governing Law	  	31
	 Section 11.23
	  	Entire Agreement	  	32
	 Section 11.24
	  	Counterparts	  	32
		
	 ARTICLE 12 LIMITATIONS ON LIABILITY
	  	32
	 Section 12.1
	  	Limitation on Liability	  	32
	 Section 12.2
	  	Limitation on Liability of Lender’s Officers, Employees, Etc.	  	33

  
 LIST OF EXHIBITS
AND SCHEDULES 
  

					
	 EXHIBIT A-l
	 	-	  	LEGAL DESCRIPTION OF EDISON PROJECT
			
	 EXHIBIT A-2
	 	-	  	LEGAL DESCRIPTION OF HARBOR PROJECT
			
	 EXHIBIT A-3
	 	-	  	LEGAL DESCRIPTION OF HOWELL PROJECT
			
	 EXHIBIT A-4
	 	-	  	LEGAL DESCRIPTION OF OLD BRIDGE PROJECT
			
	 EXHIBIT A-5
	 	-	  	LEGAL DESCRIPTION OF WOODBRIDGE PROJECT
			
	 SCHEDULED 1.1
	 	-	  	PROJECT INFORMATION
			
	 SCHEDULE I
	 	-	  	DEFEASANCE
			
	 SCHEDULE II
	 	-	  	REQUIRED REPAIRS

  

 TABLE OF CONTENTS – Page iii 

 AMENDED AND RESTATED 
 LOAN AGREEMENT 
  
 This Amended and Restated Loan Agreement (this “Agreement”) is entered into as of March 8, 2004 between GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation
(“Lender”), and EXTRA SPACE PROPERTIES THREE LLC, a Delaware limited liability company, whose organization number is 3260433 (“Borrower”). 
  
 RECITALS 
  
 Pursuant to the certain Loan Agreement dated as of August 9, 2000 by and
between Borrower and Lender, as amended by that certain First Amendment to Loan Agreement between Borrower and Lender dated as January 22, 2001 and by that certain Second Amendment to Loan Agreement between Borrower and Lender dated as September 25,
2002 (as amended, the “Loan Agreement”), Lender previously made a loan (the “Existing Loan”) to Borrower in the aggregate principal amount of $56,100,000. The Existing Loan is evidenced by that certain
Second Amended and Restated Promissory Note dated as of September 25, 2002 executed by Borrower in favor of Lender in the face amount of $56,100,000 (the “Existing Note”). 
  
 The Existing Loan is secured by, among other things, (a) that certain
Mortgage, Security Agreement and Fixture Financing Statement dated as of August 9, 2000, duplicate counterparts of which were recorded on August 16, 2000 in Official Records Book 19242, Page 548, Public Records of Miami-Dade County, Florida, and on
August 17, 2000 in Official Records Book 30772, Page 1274, Public Records of Broward County, Florida, and on August 17, 2000 in Official Records Book 11960, Page 1249, Public Records of Palm Beach County, Florida (as amended to date, the
“Existing Florida Mortgage”); and (b) that certain Assignment of Leases and Rents dated as of August 9, 2000 executed by Borrower for the benefit of Lender, duplicate counterparts of which were recorded on August 16, 2000 in
Official Records Book 19242, Page 582, Public Records of Miami-Dade County, Florida, and on August 17, 2000 in Official Records Book 30772, Page 1300, Public Records of Broward County, Florida, and on August 17, 2000 in Official Records Book 11960,
Page 1275, Public Records of Palm Beach County, Florida (the “Existing Florida Assignment of Leases”). 
  
 This Agreement shall renew, amend, restate, replace and supersede the Existing Loan Agreement in its entirety. The Loan described herein shall be secured
by, among other things, an Amended and Restated Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing which shall renew, amend, restate, replace and supersede the Existing Florida Mortgage in its entirety, and by an Amended
and Restated Assignment of Leases and Rents which shall renew, amend, restate, replace and supersede the Existing Florida Assignment of Leases in its entirety. The Note described below shall renew, amend, restate, replace and supersede the Existing
Note in its entirety. 
  
 ARTICLE 1 
  
 CERTAIN DEFINITIONS 
  
 Section 1.1 Certain Definitions. As used herein, the following
terms have the meanings indicated: 
  
 “Affiliate” means (a) any corporation in which Borrower or any partner, shareholder, director, officer, member, or manager of Borrower directly or indirectly owns or controls more than ten percent (10%) of the
beneficial interest, (b) any partnership, joint venture or limited liability company in which Borrower or any partner, shareholder, director, officer, member, or manager of Borrower is a partner, joint venturer or member, (c) any trust in which
Borrower or any partner, shareholder, director, officer, member or manager of Borrower is a trustee or beneficiary, (d) any entity of any type which is directly or indirectly owned or controlled by Borrower or any partner, shareholder, director,
officer, member or manager of Borrower, (e) any partner, shareholder, director, officer, member, manager or employee of Borrower, (f) any Person related by birth, adoption or marriage to any partner, shareholder, director, officer, member, manager,
or employee of Borrower, or (g) any Borrower Party. 
  

 LOAN AGREEMENT – Page 1 

 “Agreement” means this Loan Agreement, as amended from time to time. 

 
 “Assignment of Leases and Rents” means each
Assignment of Leases and Rents, executed by Borrower for the benefit of Lender, and pertaining to leases of space in a Project. 
  
 “Award” has the meaning assigned in Section 3.3.  
  
 “Bankruptcy Party” has the meaning assigned in Section 9.7. 
  
 “Borrower Party” means any Joinder Party, any manager
or managing member of Borrower, and any manager or managing member in any limited liability company that is a manager or managing member of Borrower, at any level. 
  
 “Business Day” means a day other than a Saturday, a Sunday, or a legal holiday on which national
banks located in the State of New York are not open for general banking business. 
  
 “Casualty” has the meaning assigned in Section 3.2.  
  
 “Closing Date” means the date the Loan is funded by Lender.  
  
 “Condemnation” has the meaning assigned in Section 3.3.  
  
 “Contract Rate” has the meaning assigned in Section
2.2. 
  
 “Debt” means, for any Person,
without duplication: (a) all indebtedness of such Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable, (b) all unfunded amounts under a
loan agreement, letter of credit, or other credit facility for which such Person would be liable, if such amounts were advanced under the credit facility, (c) all amounts required to be paid by such Person as a guaranteed payment to partners or a
preferred or special dividend, including any mandatory redemption of shares or interests, (d) all indebtedness guaranteed by such Person, directly or indirectly, (e) all obligations under leases that constitute capital leases for which such Person
is liable, and (f) all obligations of such Person under swaps, caps, floors, collars and other hedge agreements, in each case whether such Person is liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which
obligations such Person otherwise assures a creditor against loss. 
  
 “Debt Service” means the aggregate interest, fixed principal, and other payments due under the Loan, and on any other outstanding permitted Debt relating to the Projects approved by Lender for the period of time for
which calculated. 
  

 LOAN AGREEMENT – Page 2 

 “Default Rate” means the lesser of (a) the maximum rate of interest allowed by
applicable law, and (b) five percent (5%) per annum in excess of the Contract Rate. 
  
 “Defeasance Option” has the meaning assigned in Section 2.3(c).  
  
 “Environmental Laws” has the meaning assigned in Section 4.1(a).  
  
 “ERISA” has the meaning assigned in Section 6.8.
 
  
 “Event of Default” has
the meaning assigned in Article 9.  
  
 “Funds” means the Required Repair Fund and the Replacement Escrow Fund.  
  
 “Hazardous Materials” has the meaning assigned in Section 4.1(b).  
  
 “Independent Director” has the meaning assigned in
Section 6.14(p).  
  
 “Insurance
Premiums” has the meaning assigned in Section 3.1(c).  
  
 “Joinder Party” means the Persons, if any, executing the Joinder hereto. 
  
 “Lien” means, as to any Project, any interest, or claim thereof, in the Project securing an obligation owed to, or a claim by, any
Person other than the owner of the Project, whether such interest is based on common law, statute or contract, including the lien or security interest arising from a deed of trust, mortgage, assignment, encumbrance, pledge, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for security purposes. The term “Lien” shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and
other title exceptions and encumbrances affecting a Project. 
  
 “Loan” means the loan made by Lender to Borrower under this Agreement and all other amounts secured by the Loan Documents. 
  
 “Loan Documents” means: (a) this Agreement, (b) the Note, (c) the Mortgages, (d) the Assignments of Leases and Rents, (e) Uniform
Commercial Code financing statements, (f) such assignments of management agreements, contracts and other rights as may be required or otherwise requested by Lender, (g) all other documents evidencing, securing, governing or otherwise pertaining to
the Loan, and (h) all amendments, modifications, renewals, substitutions and replacements of any of the foregoing; provided however, in no event shall the term “Loan Documents” include that certain Hazardous Materials Indemnity Agreement
(the “Environmental Indemnity Agreement”) dated the date hereof in favor of Lender. 
  
 “Loan Year” means (a) for the first Loan Year, the period between the Closing Date and one calendar year from the last day of the
month in which the Closing Date occurs (unless the Closing Date is on the first day of a month, in which case the first Loan Year shall commence on such Closing Date and end one calendar year from the last day of the month immediately preceding the
Closing Date) and (b) each consecutive twelve month calendar period after the first Loan Year until the Maturity Date. 
  
 “Maturity Date” means, as applicable, the earlier of (a) April 1, 2009, or (b) any earlier date on which the entire Loan is
required to be paid in full, by acceleration or otherwise, under this Agreement or any of the other Loan Documents. 
  

 LOAN AGREEMENT – Page 3 

 “Mortgage” means each Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Filing, executed by Borrower in favor of Lender, covering a Project. 
  
 “Note” means the Amended and Restated Promissory Note of even date, in the stated principal amount of $35,715,000.00, executed by Borrower, and payable to the order of Lender in evidence of the
Loan. 
  
 “Oakland Ground Lease” means
that certain Commercial Lease dated as of July 6, 1984, executed by Southern Pacific Land Company, as Lessor, and Integrated Storage Partners, as Lessee, a memorandum of which was recorded on May 15, 1985, in the Official Records of Alameda County,
California as Instrument No. 85-093549, as amended by that certain Memorandum of Agreement entered into as of March 5, 1996, by Catellus Development Corporation, a Delaware corporation, as lessor (such lessor and its successors and assigns are
hereinafter referred to as the “Ground Lessor”), and Annie’s Attic II, a California general partnership, as lessee. 
  
 “Oakland Project” means the Project located on the land described in Exhibit A-4. 

 
 “Person” means any individual, corporation,
partnership, joint venture, association, joint stock company, trust, trustee, estate, limited liability company, unincorporated organization, real estate investment trust, government or any agency or political subdivision thereof, or any other form
of entity. 
  
 “Potential Default” means
the occurrence of any event or condition which, with the giving of notice, the passage of time, or both, would constitute an Event of Default. 
  
 “Project” means each of the self-storage facilities identified in Schedule 1.1 and all related facilities,
amenities, fixtures, and personal property owned by Borrower and any improvements now or hereafter located on the real property on which such self-storage facility is located, described in Exhibits A-1 through
A-10. 
  
 “Rating
Agencies” means each of Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc., Moody’s Investors Service, Inc. and Fitch, Inc., or any other nationally-recognized statistical rating agency which has been
approved by Lender. 
  
 “Replacement Escrow
Fund” has the meaning assigned in Section 2.4. 
  
 “Required Repair Fund” has the meaning assigned in Section 2.4. 
  
 “Secondary Market Transaction” has the meaning assigned in Section 8.11. 
  
 “Single Purpose Entity” shall mean a Person (other
than an individual, a government or any agency or political subdivision thereof), which exists solely for the purpose of owning the Projects, observes corporate, company or partnership formalities, as applicable, independent of any other entity, and
which otherwise complies with the covenants set forth in Section 6.14 hereof. 
  
 “Site Assessment” means an environmental engineering report for each Project prepared at Borrower’s expense by an engineer engaged by Borrower, or Lender on behalf of Borrower, and
approved by Lender, and in a manner reasonably satisfactory to Lender, based upon an investigation relating to and making appropriate inquiries concerning the existence of Hazardous Materials on or about such Project, and the past or present
discharge, disposal, release or escape of any such substances, all consistent with ASTM Standard E1527-93 (or any successor thereto published by ASTM) and good customary and commercial practice. 
  

 LOAN AGREEMENT – Page 4 

 “SPC Party” has the meaning assigned in Section 6.14(o). 
  
 “State” means the State of Utah. 
  
 “Tax and Insurance Escrow Fund” has the meaning
assigned in Section 3.4. 
  
 “Taxes” has
the meaning assigned in Section 8.2. 
  
 “Yield
Maintenance Amount” has the meaning assigned in Schedule I. 
  
 ARTICLE 2  
  
 LOAN TERMS 
  
 Section 2.1 The Loan. Upon satisfaction of all the terms and conditions of Lender to making the Loan, Lender agrees to make a Loan of
THIRTY-FIVE MILLION SEVEN HUNDRED FIFTEEN THOUSAND AND NO/100 DOLLARS ($35,715,000.00) to the Borrower, which shall be funded in one advance and repaid in accordance with the terms of this Agreement and the Note. Borrower hereby agrees to accept the
Loan on the Closing Date, subject to and upon the terms and conditions set forth herein. 
  
 Section 2.2 Interest Rate; Late Charge. The outstanding principal balance of the Loan shall bear interest at a rate of interest equal to four and seven-tenths percent (4.70%) per annum (the
“Contract Rate”). Interest at the Contract Rate shall be computed on the basis of a fraction, the denominator of which is three hundred sixty (360) days and the numerator of which is the actual number of days elapsed from the
date of the initial disbursement under the Loan or the date of the preceding interest installment due date, as the case may be, to the date of the next interest installment due date or the Maturity Date. If Borrower fails to pay any installment of
interest or principal within five (5) days of (and including) the date on which the same is due, Borrower shall pay to Lender a late charge on such past-due amount, as liquidated damages and not as a penalty, equal to five percent (5%) of such
amount, but not in excess of the maximum amount of interest allowed by applicable law. While any Event of Default exists, the Loan shall bear interest at the Default Rate. 
  
 Section 2.3 Terms of Payment. The Loan shall be payable as follows: 
  
 (a) Interest and Principal. A payment
of interest only on the Closing Date for the period from the Closing Date through the last day of the current month. Thereafter, a constant payment of $202,591.65, on the first day of May, 2004 and on the first day of each calendar month thereafter;
each of such payments, to be applied (i) to the payment of interest computed at the Contract Rate and (ii) the balance applied toward reduction of the principal sum. The constant payment required hereunder is calculated based on a twenty-five (25)
year amortization schedule. 
  
 (b)
Maturity. On the Maturity Date, Borrower shall pay to Lender all outstanding principal, accrued and unpaid interest, default interest, late charges and any and all other amounts due under the Loan Documents. 
  
 (c) Prepayment. Except as set forth
herein, the Loan is closed to prepayment in whole or in part. Notwithstanding the foregoing, (i) the Loan may be prepaid in whole, but not in part, on or after the scheduled monthly payment date for the fifty-eighth (58th) payment of principal and
interest, and (ii) from the earlier to occur of (x) two (2) years after the sale of the Loan in a Secondary Market Transaction or (y) the fourth (4th) anniversary of the Closing Date, provided no Event of Default exists, 

  

 LOAN AGREEMENT – Page 5 

 
Borrower may obtain the release of the Projects from the lien of the Mortgages in accordance with the terms and provisions of Schedule I
attached hereto (the “Defeasance Option”). 
  
 If the Loan is accelerated for any reason other than casualty or condemnation, and the Loan is otherwise closed to prepayment, Borrower shall pay, in addition to all other amounts outstanding under the Loan Documents,
a prepayment premium equal to the sum of (i) the Yield Maintenance Amount, if any, that would be required under the Defeasance Option and (ii) five percent (5%) of the outstanding balance of the Loan. If for any reason the Loan is prepaid on a day
other than a scheduled monthly payment date, the Borrower shall pay, in addition to the principal, interest and premium, if any, required under this Section, an amount equal to the interest that would have accrued on the Loan from the date of
prepayment to the next scheduled monthly payment date. In the event of a prepayment resulting from Lender’s application of insurance or condemnation proceeds pursuant to Article 3 hereof, no prepayment penalty or premium shall be imposed.

  
 Section 2.4 Security. 
  
 (a) Establishment of Funds. The Loan shall be
secured by the Mortgages creating a first lien on each Project, the Assignments of Leases and Rents and the other Loan Documents. Borrower agrees to establish the following reserves with Lender, to be held by Lender as further security for the Loan:
(i) on the Closing Date, Borrower shall deposit with Lender the amount of $131,531.00 (the “Required Repair Fund”) which shall be held by Lender for the completion of the required repairs set forth on Schedule
II annexed hereto on or before six months from the Closing Date; provided, however, that Borrower (A) shall complete leak repairs and mold removal at the “AAA Century (Inglewood)” Project within sixty (60) days
after the Closing Date, (B) shall complete the water hook-up and cut off access to the existing water well at the “North Oxford” Project within thirty (30) days after the Closing Date, and (C) shall permanently cap the existing water well
at the “North Oxford” Project within thirty (30) days after the date Borrower is first permitted to do so by the applicable regulatory bodies having jurisdiction over such water well and the capping thereof (and Borrower covenants to
pursue with all commercially reasonable diligence obtaining permission from such applicable regulatory bodies to cap such well); and (ii) Borrower shall deposit with Lender on the day of each calendar month a scheduled payment is due the amount of
$8,027.73 which shall be held by Lender for replacements and repairs required to be made to the Projects during the calendar year (the “Replacement Escrow Fund”). 
  
 (b) Pledge and Disbursement of Funds. Borrower hereby pledges to Lender, and grants a security
interest in, any and all monies now or hereafter deposited in the Funds as additional security for the payment of the Loan. Lender may reasonably reassess its estimate of the amount necessary for the Funds from time to time and may adjust the
monthly amounts required to be deposited into the Funds upon thirty (30) days notice to Borrower. Lender shall make disbursements from the Funds as requested by Borrower, and approved by Lender in its reasonable discretion, on a quarterly basis in
increments of no less than $5,000.00 upon delivery by Borrower of Lender’s standard form of draw request accompanied by copies of paid invoices for the amounts requested and, if required by Lender, lien waivers and releases from all parties
furnishing materials and/or services in connection with the requested payment. Lender may require an inspection of the applicable Project(s) at Borrower’s expense prior to making a quarterly disbursement in order to verify completion of
replacements and repairs for which reimbursement is sought. The Funds shall be held without interest in Lender’s name and may be commingled with Lender’s own funds at financial institutions selected by Lender in its reasonable discretion.
Upon the occurrence of an Event of Default, Lender may apply any sums then present in the Funds to the payment of the Loan in any order in its reasonable discretion. Until expended or applied as above provided, the Funds shall constitute additional
security for the Loan. Lender shall have no obligation to release any of the Funds while any Event of Default or Potential Default exists or any material adverse change has occurred in Borrower or any Joinder Party or any Project. All costs
and 

  

 LOAN AGREEMENT – Page 6 

 
expenses incurred by Lender in the disbursement of any of the Funds shall be paid by Borrower promptly upon demand or, at Lender’s sole discretion,
deducted from the Funds. 
  
 ARTICLE 3 
  
 INSURANCE, CONDEMNATION, AND IMPOUNDS 
  
 Section 3.1 Insurance. Borrower shall maintain insurance as
follows: 
  
 (a) Casualty; Business
Interruption. Borrower shall keep the Projects insured against damage by fire and the other hazards covered by a standard extended coverage and all-risk insurance policy for the full insurable value thereof on a replacement cost claim
recovery basis (without reduction for depreciation or co-insurance), and shall maintain such other casualty insurance as reasonably required by Lender. Such insurance shall include coverage against acts of terrorism. Lender reserves the right
to require from time to time the following additional insurance: boiler and machinery; flood; earthquake/sinkhole; windstorm; worker’s compensation; and/or building law or ordinance. Borrower shall keep each Project insured against loss by
flood if such Project is located currently or at any time in the future in an area identified by the Federal Emergency Management Agency as an area having special flood hazards and in which flood insurance has been made 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 such acts may from time to time be amended) in an amount at least equal to the lesser of the maximum amount of the Loan or
the maximum limit of coverage available under said acts. Any such flood insurance policy shall be issued in accordance with the requirements and current guidelines of the Federal Insurance Administration. Borrower shall maintain use and occupancy
insurance for each Project covering, as applicable, rental income or business interruption, with coverage in an amount not less than twelve (12) months anticipated gross rental income or gross business earnings, as applicable in each case,
attributable to such Project. Borrower shall not maintain any separate or additional insurance which is contributing in the event of loss unless it is properly endorsed and otherwise reasonably satisfactory to Lender in all respects. The proceeds of
insurance paid on account of any damage or destruction to any Project shall be paid to Lender to be applied as provided in Section 3.2. 
  
 (b) Liability. Borrower shall maintain (i) commercial general liability insurance with respect to each Project providing for
limits of liability of not less than $5,000,000 for both injury to or death of a person and for property damage per occurrence, and (ii) other liability insurance as reasonably required by Lender. 
  
 (c) Form and Quality. All insurance policies
shall be endorsed in form and substance acceptable to Lender to name Lender as an additional insured, loss payee or mortgagee thereunder, as its interest may appear, with loss payable to Lender, without contribution, under a standard New York (or
local equivalent) mortgagee clause. All such insurance policies and endorsements shall be fully paid for and contain such provisions and expiration dates and be in such form and issued by such insurance companies licensed to do business in the
State, with a general company and financial size rating of “A-:IX” or better as established by Best’s Rating Guide and “AA” or better by Standard & Poor’s Ratings Group. Each policy shall provide that such policy
may not be canceled or materially changed except upon thirty (30) days’ prior written notice of intention of non-renewal, cancellation or material change to Lender and that no act or thing done by Borrower shall invalidate any policy as against
Lender. Blanket policies shall be permitted only if Lender receives appropriate endorsements and/or duplicate policies containing Lender’s right to continue coverage on a pro rata pass-through basis and that coverage will not be affected by any
loss on other properties covered by the policies. Borrower authorizes Lender to pay the premiums for such policies (the “Insurance Premiums”) from the Tax and Insurance Escrow Fund as the same become due and payable annually
in advance. If Borrower fails to deposit funds into 

  

 LOAN AGREEMENT – Page 7 

 
the Tax and Insurance Escrow Fund sufficient to permit Lender to pay the premiums when due, Lender may obtain such insurance and pay the premium therefor and
Borrower shall, on demand, reimburse Lender for all expenses incurred in connection therewith. Borrower shall assign the policies or proofs of insurance to Lender, in such manner and form that Lender and its successors and assigns shall at all times
have and hold the same as security for the payment of the Loan. Borrower shall deliver copies of all original policies certified to Lender by the insurance company or authorized agent as being true copies, together with the endorsements required
hereunder. The proceeds of insurance policies coming into the possession of Lender shall not be deemed trust funds, and Lender shall be entitled to apply such proceeds as herein provided. 
  
 (d) Adjustments. Borrower shall give immediate
written notice of any loss to the insurance carrier and to Lender. Borrower hereby irrevocably authorizes and empowers Lender, as attorney-in-fact for Borrower coupled with an interest, to make proof of loss, to adjust and compromise any claim under
insurance policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Lender’s reasonable expenses incurred in the collection of such proceeds. Nothing
contained in this Section 3.1(d), however, shall require Lender to incur any expense or take any action hereunder. 
  
 Section 3.2 Use and Application of Insurance Proceeds. 
  
 (a) If any Project shall be damaged or destroyed, in whole or in part, by fire or other casualty (a
“Casualty”), Borrower shall give prompt notice thereof to Lender. Following the occurrence of a Casualty, Borrower, regardless of whether insurance proceeds are available, shall promptly proceed to restore, repair, replace or
rebuild the same to be of at least equal value and of substantially the same character as prior to such damage or destruction, all to be effected in accordance with applicable law. 
  
 (b) Lender shall apply insurance proceeds to costs of restoring a Project or to the payment of the Loan as
follows: 
  
 (i) if the loss is less than or
equal to $100,000, Lender shall apply the insurance proceeds to restoration provided (A) no Event of Default or Potential Default exists, and (B) Borrower promptly commences and is diligently pursuing restoration of the Project; 
  
 (ii) if the loss exceeds $100,000 but is not more than 25%
of the replacement value of the improvements, Lender shall apply the insurance proceeds to restoration provided that (A) at all times during such restoration no Event of Default or Potential Default exists; (B) Lender determines throughout the
restoration that there are sufficient funds available to restore and repair the Project to a condition approved by Lender; (C) Lender determines that the net operating income of the Projects during restoration, taking into account rent loss or
business interruption insurance, will be sufficient to pay Debt Service; (D) Lender determines (based on leases which will remain in effect after restoration is complete if the Project is not a multi-family project) that after restoration the ratio
of net operating income to Debt Service will equal at least the ratio that existed on the Closing Date; (E) Lender determines that the ratio of the outstanding principal balance of the Loan to appraised value of the Projects after restoration will
not exceed the loan-to-value ratio that existed on the Closing Date; (F) Lender determines that restoration and repair of the Project to a condition approved by Lender will be completed within six months after the date of loss or casualty and in any
event ninety (90) days prior to the Maturity Date; (G) Borrower promptly commences and is diligently pursuing restoration of the Project; and (H) the Project after the restoration will be in compliance with and permitted under all applicable zoning,
building and land use laws, rules, regulations and ordinances; and 
  

 LOAN AGREEMENT – Page 8 

 (iii) if the conditions set forth in (i) and (ii) above are not satisfied in
Lender’s reasonable discretion, Lender may apply any insurance proceeds it may receive to the payment of the Loan or allow all or a portion of such proceeds to be used for the restoration of the Project. 
  
 (c) Insurance proceeds applied to restoration will be
disbursed on receipt of reasonably satisfactory plans and specifications, contracts and subcontracts, schedules, budgets, lien waivers and architects’ certificates, and otherwise in accordance with prudent commercial construction lending
practices for construction loan advances (including appropriate retainages to ensure that all work is completed in a workmanlike manner). 
  
 Section 3.3 Condemnation Awards. Borrower shall promptly give Lender written notice of the actual or threatened commencement of any
condemnation or eminent domain proceeding (a “Condemnation”) and shall deliver to Lender copies of any and all papers served in connection with such Condemnation. Following the occurrence of a Condemnation, Borrower,
regardless of whether any award or compensation (an “Award”) is available, shall promptly proceed to restore, repair, replace or rebuild the applicable Project to the extent practicable to be of at least equal value and of
substantially the same character as prior to such Condemnation, all to be effected in accordance with applicable law. Lender may participate in any such proceeding and Borrower will deliver to Lender all instruments necessary or required by Lender
to permit such participation. Without Lender’s prior consent, Borrower (a) shall not agree to any Award, and (b) shall not take any action or fail to take any action which would cause the Award to be determined. All Awards for the taking or
purchase in lieu of condemnation of any Project or any part thereof are hereby assigned to and shall be paid to Lender. Borrower authorizes Lender to collect and receive such Awards, to give proper receipts and acquittances therefor, and in
Lender’s sole discretion to apply the same toward the payment of the Loan, notwithstanding that the Loan may not then be due and payable, or to the restoration of the affected Project; provided, however, if the Award is less than or equal to
$100,000 and Borrower requests that such proceeds be used for non-structural site improvements (such as landscape, driveway, walkway and parking area repairs) required to be made as a result of such condemnation, Lender will apply the Award to such
restoration in accordance with disbursement procedures applicable to insurance proceeds provided there exists no Potential Default or Event of Default. Borrower, upon request by Lender, shall execute all instruments requested to confirm the
assignment of the Awards to Lender, free and clear of all liens, charges or encumbrances. 
  
 Section 3.4 Impounds. Borrower shall deposit with Lender, monthly, (a) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to
accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (b) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded
by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (a) and (b) above
hereinafter called the “Tax and Insurance Escrow Fund”). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of
such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender’s estimate from time to time of the charges for the current year (after giving
effect to any reassessment or, at Lender’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and
may be commingled with Lender’s general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied
in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application 

  

 LOAN AGREEMENT – Page 9 

 
shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges
for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are
payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a
bill for such charges. 
  
 ARTICLE 4 
  
 ENVIRONMENTAL MATTERS 
  
 Section 4.1 Certain Definitions. As used herein, the following
terms have the meanings indicated: 
  
 (a)
“Environmental Laws” means any federal, state or local law (whether imposed by statute, ordinance, rule, regulation, administrative or judicial order, or common law), now or hereafter enacted, governing health, safety,
industrial hygiene, the environment or natural resources, or Hazardous Materials, including, without limitation, such laws governing or regulating (i) the use, generation, storage, removal, recovery, treatment, handling, transport, disposal,
control, release, discharge of, or exposure to, Hazardous Materials, (ii) the transfer of property upon a negative declaration or other approval of a governmental authority of the environmental condition of such property, or (iii) requiring
notification or disclosure of releases of Hazardous Materials or other environmental conditions whether or not in connection with a transfer of title to or interest in property. 
  
 (b) “Hazardous Materials” means (i) petroleum or chemical products, whether in
liquid, solid, or gaseous form, or any fraction or by-product thereof, (ii) asbestos or asbestos-containing materials, (iii) polychlorinated biphenyls (pcbs), (iv) radon gas, (v) underground storage tanks, (vi) any explosive or radioactive
substances, (vii) lead or lead-based paint, or (viii) any other substance, material, waste or mixture which is or shall be listed, defined, or otherwise determined by any governmental authority to be hazardous, toxic, dangerous or otherwise
regulated, controlled or giving rise to liability under any Environmental Laws. 
  
 Section 4.2 Representations and Warranties on Environmental Matters. To Borrower’s knowledge, except as set forth in the Site Assessments obtained by Lender in connection with the Loan closing
(copies of which have been provided to Borrower), (a) no Hazardous Material is now or was formerly used, stored, generated, manufactured, installed, treated, discharged, disposed of or otherwise present at or about any Project or any property
adjacent to any Project (except for cleaning and other products currently used in connection with the routine maintenance or repair of the Projects in full compliance with Environmental Laws) and no Hazardous Material was removed or transported from
any Project, (b) all permits, licenses, approvals and filings required by Environmental Laws have been obtained, and the use, operation and condition of the Projects do not, and did not previously, violate any Environmental Laws, (c) no civil,
criminal or administrative action, suit, claim, hearing, investigation or proceeding has been brought or been threatened, nor have any settlements been reached by or with any parties or any liens imposed in connection with any Project concerning
Hazardous Materials or Environmental Laws; and (d) no underground storage tanks exist on any part of any Project. 
  
 Section 4.3 Covenants on Environmental Matters. 
  
 (a) Borrower shall (i) comply strictly and in all respects with applicable Environmental Laws; (ii) notify Lender immediately upon
Borrower’s discovery of any spill, discharge, 

  

 LOAN AGREEMENT – Page 10 

 
release or presence of any Hazardous Material at, upon, under, within, contiguous to or otherwise affecting any Project; (iii) promptly remove such Hazardous
Materials and remediate such Project in full compliance with Environmental Laws or as reasonably required by Lender based upon the recommendations and specifications of an independent environmental consultant approved by Lender; and (iv) promptly
forward to Lender copies of all orders, notices, permits, applications or other communications and reports in connection with any spill, discharge, release or the presence of any Hazardous Material or any other matters relating to the Environmental
Laws or any similar laws or regulations, as they may affect any Project or Borrower. 
  
 (b) Borrower shall not cause, shall prohibit any other Person within the control of Borrower from causing, and shall use prudent,
commercially reasonable efforts to prohibit other Persons (including tenants) from (i) causing any spill, discharge or release, or the use, storage, generation, manufacture, installation, or disposal, of any Hazardous Materials at, upon, under,
within or about any Project or the transportation of any Hazardous Materials to or from any Project (except for cleaning and other products used in connection with routine maintenance or repair of the Projects in full compliance with Environmental
Laws), (ii) installing any underground storage tanks at any Project, or (iii) conducting any activity that requires a permit or other authorization under Environmental Laws. 
  
 (c) Borrower shall provide to Lender, at Borrower’s expense promptly upon the written request of Lender
from time to time, a Site Assessment for each Project or, if required by Lender, an update to any existing Site Assessment for each Project, to assess the presence or absence of any Hazardous Materials and the potential costs in connection with
abatement, cleanup or removal of any Hazardous Materials found on, under, at or within such Project. Borrower shall pay the cost of no more than one such Site Assessment or update for each Project in any twelve (12)-month period, unless
Lender’s request for a Site Assessment is based on information provided under Section 4.3(a), a reasonable suspicion of Hazardous Materials at or near a Project, a breach of representations under Section 4.2, or an Event of Default, in which
case any such Site Assessment or update shall be at Borrower’s expense. 
  
 (d) Within ninety (90) days after the Closing Date, Borrower shall cause to be prepared by environmental engineers approved by Lender, and shall deliver to Lender, an Operations and Maintenance Program for the
“Forest Park” Project located on the land described in Exhibit A-1 for the removal or
encapsulation of, or other action for handling, asbestos-containing materials at such Project (the “O&M Program”). Borrower shall immediately implement the O&M Program. Prior to the commencement of any construction,
rehabilitation, modification or renovation at the Forest Park Project, including any such work which requires the removal of any materials or improvements of any kind in connection with the ceiling, subflooring, floor tiles, baseboard, wall texture,
pipe insulation and other portions of such Project containing (or which are identified in a Site Assessment for such Project as possibly containing) asbestos-containing materials (the “ACM-Related Work”), all ACM-Related Work
shall be implemented in accordance with the procedures and programs in the O&M Program and all applicable governmental requirements. The O&M Program and work resulting therefrom shall be conducted by an accredited, licensed, abatement
contractor using state-of-the-art work practices and procedures and shall include all monitoring and project management performed by an accredited asbestos consultant. Borrower shall deliver to Lender promptly when available, copies of all reports,
notices, submittals, permits, licenses, and certificates relating to the O&M Program. Until all matters in the O&M Program have been satisfied, Borrower shall deliver to Lender, on or before the first day of each Loan Year, evidence of an
annual inspection by the environmental engineer for the Forest Park Project, addressing the status of affected space requiring ACM-Related Work or other action with respect to Hazardous Materials. Borrower shall follow the procedures of the O&M
Program with respect to any additional Hazardous Materials revealed by any annual inspection. All fees and expenses incurred for all such inspections and review and approval of the O&M Program shall be paid by Borrower. 
  

 LOAN AGREEMENT – Page 11 

 (e) Within ninety (90) days after the Closing Date, Borrower shall provide Lender with
satisfactory evidence that Borrower has implemented the recommendations of the Florida Department of Environmental Resources Management with respect to the AAA Sentry (N. Lauderdale) Project located on the land described in Exhibit
A-8, including installation of secondary containment on the fuel lines for the emergency generator, and the replacement or repair of the emergency generator base with secondary containment to prevent future releases. In addition,
Borrower shall implement improved cleaning and maintenance practices at the AAA Sentry (North Lauderdale) Project to minimize potential for future releases near unit no. 63 where oily staining was observed, as noted in the Site Assessment for this
Project. 
  
 Section 4.4 Allocation of Risks and
Indemnity. As between Borrower and Lender, all risk of loss associated with non-compliance with Environmental Laws, or with the presence of any Hazardous Material at, upon, within, contiguous to or otherwise affecting the Projects, shall lie
solely with Borrower. Accordingly, Borrower shall bear all risks and costs associated with any loss (including any loss in value attributable to Hazardous Materials), damage or liability therefrom, including all costs of removal of Hazardous
Materials or other remediation required by Lender or by law. Borrower shall indemnify, defend and hold Lender and its shareholders, directors, officers, employees and agents harmless from and against all loss, liabilities, damages, claims, costs and
expenses (including reasonable costs of defense and consultant fees, investigation and laboratory fees, court costs, and other litigation expenses) arising out of or associated, in any way, with (a) the non-compliance with Environmental Laws, or (b)
the existence of Hazardous Materials in, on, or about any Project, (c) any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to Hazardous Materials; (d) any lawsuit brought or threatened,
settlement reached, or government order relating to such Hazardous Materials, (e) a breach of any representation, warranty or covenant contained in this Article 4, whether based in contract, tort, implied or express warranty, strict liability,
criminal or civil statute or common law, or (f) the imposition of any environmental lien encumbering any Project; provided, however, Borrower shall not be liable under such indemnification to the extent such loss, liability, damage, claim, cost or
expense results solely from Lender’s gross negligence or willful misconduct. Borrower’s obligations under this Section 4.4 shall arise whether or not any governmental authority has taken or threatened any action in connection with the
presence of any Hazardous Material, and whether or not the existence of any such Hazardous Material or potential liability on account thereof is disclosed in a Site Assessment and shall continue notwithstanding the repayment of the Loan or any
transfer or sale of any right, title and interest in the Projects (by foreclosure, deed in lieu of foreclosure or otherwise). Any amounts payable to Lender by reason of the application of this Section 4.4 shall become immediately due and payable and
shall bear interest at the Default Rate from the date loss or damage is sustained by Lender until paid. The obligations and liabilities of Borrower under this Section 4.4 shall survive any termination, satisfaction, assignment, entry of a judgment
of foreclosure or delivery of a deed in lieu of foreclosure. 
  
 Section 4.5 No Waiver. Notwithstanding any provision in this Article 4 or elsewhere in the Loan Documents, or any rights or remedies granted by the Environmental Indemnity Agreement or the Loan Documents, Lender does not waive
and expressly reserves all rights and benefits now or hereafter accruing to Lender under the “security interest” or “secured creditor” exception under applicable Environmental Laws, as the same may be amended. No action taken by
Lender pursuant to the Environmental Indemnity Agreement or the Loan Documents shall be deemed or construed to be a waiver or relinquishment of any such rights or benefits under the “security interest exception.” 
  
 Section 4.6 Lender Cure Rights. If there is a release of
Hazardous Materials affecting any Project, whether or not the release originates or emanates from such Project or any contiguous real estate, or if Borrower shall fail to comply with any Environmental Laws, Lender may at its election, but without
the obligation to do so, upon three (3) Business Days’ notice to Borrower (provided the delay caused by the giving of notice shall not, in Lender’s sole opinion, cause substantial damage such Project), take any 

  

 LOAN AGREEMENT – Page 12 

 
and all actions as Lender shall deem necessary or advisable in order to remedy the release of Hazardous Materials or cure said failure of compliance, and any
amounts paid by Lender as a result thereof, together with interest thereon at the Default Rate from the date of payment by Lender, shall be immediately due and payable by Borrower to Lender and until paid shall be added to and become part of the
Loan and shall have the benefit of the lien created by the Loan Documents. 
  
 ARTICLE 5 
  
 LEASING
MATTERS 
  
 Section 5.1 Representations and
Warranties on Leases. Borrower represents and warrants to Lender with respect to leases of each Project that: (a) the rent roll delivered to Lender is true and correct, and the leases are valid and in and full force and effect; (b) the
leases (including amendments) are in writing, and there are no oral agreements with respect thereto; (c) the copies of the leases (if any) delivered to Lender are true and complete; (d) the landlord is not in default under any of the leases, and not
more than (i) five percent (5%) of the tenants at any one Project, and (ii) three percent (3%) of all tenants at all Projects are more than 30 days delinquent in payment of rent or are otherwise in default in a manner entitling the landlord to
terminate their leases; (e) Borrower has not assigned or pledged any of the leases, the rents or any interests therein except to Lender; (f) no tenant or other party has an option to purchase all or any portion of any Project; (g) no tenant has the
right to terminate its lease prior to expiration of the stated term of such lease; (h) not more than five percent (5%) of the tenants at any Project have prepaid more than one month’s rent in advance (except for bona fide security deposits not
in excess of an amount equal to two months’ rent), and no tenants have prepaid more than twelve (12) months’ rent in advance; and (i) all existing leases are subordinate to the Mortgages either pursuant to their terms or a recorded
subordination agreement. 
  
 Section 5.2 Standard Lease
Form; Approval Rights. All leases and other rental arrangements shall in all respects be approved by Lender and shall be on a standard lease form approved by Lender with no modifications (except as approved by Lender, which approval will not
be unreasonably withheld or delayed). Borrower shall hold, in trust, all tenant security deposits in a segregated account, and, to the extent required by applicable law, shall not commingle any such funds with any other funds of Borrower. Within ten
(10) days after Lender’s request, Borrower shall furnish to Lender a statement of all tenant security deposits and copies of all leases, certified by Borrower as being true and correct. Notwithstanding anything contained in the Loan Documents,
Lender’s approval shall not be required for future leases or lease extensions at a Project if the following conditions are satisfied: (i) there exists no Potential Default or Event of Default; (ii) the lease is on the standard lease form
approved by Lender with no modifications (except as approved by Lender); (iii) the lease does not conflict with any restrictive covenant affecting the Project or any other lease for space in the Project; and (iv) the effective rental rate is at
least a market rate. 
  
 Section 5.3 Covenants.
Borrower (a) shall perform the obligations which Borrower is required to perform under the leases; (b) shall enforce the obligations to be performed by the tenants; (c) shall not collect from more than five percent (5%) of the tenants at any Project
(and then, only at the request of such tenants) any rents for more than thirty (30) days in advance of the time when the same shall become due (and in no event shall Borrower collect from any tenant any rents more than twelve (12) months in advance
of the time when the same shall become due), except for bona fide security deposits not in excess of an amount equal to two month’s rent; (d) shall not enter into any ground lease or master lease of any part of any Project; (e) shall not
further assign or encumber any lease; (f) shall not, except with Lender’s prior written consent, cancel or accept surrender or termination of any lease except in the ordinary course of business, consistent with prudent property management
practices for self-storage 

  

 LOAN AGREEMENT – Page 13 

 
facilities; (g) shall not, except with Lender’s prior written consent, modify or amend any lease (except for minor modifications and amendments entered
into in the ordinary course of business, consistent with prudent property management practices for self-storage facilities, not affecting the economic terms of the lease); and (h) shall maintain all last month’s rent and security deposits under
leases at each Project in accordance with the requirements of the laws of the state in which such Project is located Any action in violation of clauses (d), (e), (f), and (g) of this Section 5.3 shall be void at the election of Lender. 

 
 Section 5.4 Tenant Estoppels. At Lender’s request,
Borrower shall obtain and furnish to Lender, written estoppels in form and substance reasonably satisfactory to Lender, executed by tenants under any “corporate” or master leases of any part of any Project and confirming the term, rent,
and other provisions and matters relating to the leases. 
  
 ARTICLE 6 
  
 REPRESENTATIONS AND
WARRANTIES 
  
 Borrower represents, warrants and covenants
to Lender that: 
  
 Section 6.1 Organization, Power and
Authority. Borrower and each Borrower Party (a) is duly organized, validly existing and in good standing under the laws of the state of its formation or existence, (b) is in compliance with all legal requirements applicable to doing business
in the State, and (c) has the necessary governmental approvals to own and operate the Projects and conduct the business now conducted or to be conducted thereon. Borrower has the full power, authority and right to execute, deliver and perform its
obligations pursuant to this Loan Agreement and the other Loan Documents, and to mortgage the Projects pursuant to the terms of the Mortgages and to keep and observe all of the terms of this Loan Agreement and the other Loan Documents on
Borrower’s part to be performed. Borrower is not a “foreign person” within the meaning of § 1445(f)(3) of the Internal Revenue Code. 
  
 Section 6.2 Validity of Loan Documents. The execution, delivery and performance by Borrower and each Borrower Party of the Loan Documents:
(a) are duly authorized and do not require the consent or approval of any other party or governmental authority which has not been obtained; and (b) will not violate any law or result in the imposition of any lien, charge or encumbrance upon the
assets of any such party, except as contemplated by the Loan Documents. The Loan Documents constitute the legal, valid and binding obligations of Borrower and each Borrower Party, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, or similar laws generally affecting the enforcement of creditors’ rights. 
  
 Section 6.3 Liabilities; Litigation. 
  
 (a) The financial statements delivered by Borrower and each Borrower Party are true and correct with no significant change since the date
of preparation. Except as disclosed in such financial statements, there are no liabilities (fixed or contingent) affecting any Project, Borrower or any Borrower Party. Except as disclosed in such financial statements, there is no litigation,
administrative proceeding, investigation or other legal action (including any proceeding under any state or federal bankruptcy or insolvency law) pending or, to the knowledge of Borrower, threatened, against any Project, Borrower or any Borrower
Party which if adversely determined could have a material adverse effect on such party, such Project or the Loan. 
  
 (b) Neither Borrower nor any Borrower Party is contemplating either the filing of a petition by it under state or federal bankruptcy or
insolvency laws or the liquidation of all or a major 

  

 LOAN AGREEMENT – Page 14 

 
portion of its assets or property, and neither Borrower nor any Borrower Party has knowledge of any Person contemplating the filing of any such petition
against it. 
  
 Section 6.4 Taxes and
Assessments. Each Project is comprised of one or more parcels, each of which constitutes a separate tax lot and none of which constitutes a portion of any other tax lot. There are no pending or, to Borrower’s best knowledge,
proposed, special or other assessments for public improvements or otherwise affecting any Project, nor are there any contemplated improvements to any Project that may result in such special or other assessments. 
  
 Section 6.5 Other Agreements; Defaults. Neither Borrower
nor any Borrower Party is a party to any agreement or instrument or subject to any court order, injunction, permit, or restriction which might adversely affect any Project or the business, operations, or condition (financial or otherwise) of
Borrower or any Borrower Party. Neither Borrower nor any Borrower Party is in violation of any agreement which violation would have an adverse effect on any Project, Borrower, or any Borrower Party or Borrower’s or any Borrower Party’s
business, properties, or assets, operations or condition, financial or otherwise. 
  
 Section 6.6 Compliance with Law. 
  
 (a) Borrower and each Borrower Party have all requisite licenses, permits, franchises, qualifications, certificates of occupancy or other
governmental authorizations to own, lease and operate the Projects and carry on its business, and each Project is in compliance with all applicable legal requirements and is free of structural defects, and except as set forth in the property
condition reports obtained by Lender in connection with the Loan, all building systems contained therein are in good working order, subject to ordinary wear and tear. No Project constitutes, in whole or in part, a legally non-conforming use under
applicable legal requirements other than the “Margate” Project located on the land described in Exhibit A-9, which is legally non-conforming as to use; 
  
 (b) No condemnation has been commenced or, to Borrower’s knowledge, is contemplated with respect to all
or any portion of any Project or for the relocation of roadways providing access to any Project and, without limiting the foregoing, no redevelopment of the Oakland Project is pending or, to the best of Borrower’s knowledge, is contemplated by
the City of Oakland (or any redevelopment agency with jurisdiction over the Oakland Project); and 
  
 (c) Each Project has adequate rights of access to public ways and is served by adequate water, sewer, sanitary sewer and storm drain
facilities. All public utilities necessary or convenient to the full use and enjoyment of each Project are located in the public right-of-way abutting such Project, and all such utilities are connected so as to serve such Project without passing
over other property, except to the extent such other property is subject to a perpetual easement for such utility benefitting such Project. All roads necessary for the full utilization of each Project for its current purpose have been completed and
dedicated to public use and accepted by all governmental authorities. 
  
 Section 6.7 Location of Borrower. Borrower’s principal place of business and chief executive offices are located at the address stated in Section 11.1. 
  
 Section 6.8 ERISA. 
  
 (a) As of the Closing Date and throughout the term of the Loan, (i) Borrower is not and will not be an
“employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to Title I of ERISA, and (ii) the assets of 

  

 LOAN AGREEMENT – Page 15 

 
Borrower do not and will not constitute “plan assets” of one or more such plans for purposes of Title I of ERISA; and 
  
 (b) As of the Closing Date and throughout the term of the
Loan (i) Borrower is not and will not be a “governmental plan” within the meaning of Section 3(3) of ERISA and (ii) transactions by or with Borrower are not and will not be subject to state statutes applicable to Borrower regulating
investments of and fiduciary obligations with respect to governmental plans. 
  
 Section 6.9 Forfeiture. There has not been and shall never be committed by Borrower or any other person in occupancy of or involved with the operation or use of the Projects any act or omission
affording the federal government or any state or local government the right of forfeiture as against the Projects or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower hereby
covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. 
  
 Section 6.10 Tax Filings. Borrower and each Borrower Party have filed (or have obtained effective extensions for filing) all federal,
state and local tax returns required to be filed and have paid or made adequate provision for the payment of all federal, state and local taxes, charges and assessments payable by Borrower and each Borrower Party, respectively. Borrower and each
Borrower Party believe that their respective tax returns properly reflect the income and taxes of Borrower and each Borrower Party, respectively, for the periods covered thereby, subject only to reasonable adjustments required by the Internal
Revenue Service or other applicable tax authority upon audit. 
  
 Section 6.11 Solvency. Giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities, including,
without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities,
including the maximum amount of its contingent liabilities on its Debts as such Debts become absolute and matured, Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to
carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur Debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such
Debts as they mature (taking into account the timing and amounts of cash to be received by Borrower and the amounts to be payable on or in respect of obligations of Borrower). Except as expressly disclosed to Lender in writing, no petition in
bankruptcy has been filed against Borrower or any Borrower Party in the last seven (7) years, and neither Borrower or any Borrower Party in the last seven (7) years has ever made an assignment for the benefit of creditors or taken advantage of any
insolvency act for the benefit of debtors. 
  
 Section 6.12
Full and Accurate Disclosure. No statement of fact made by or on behalf of Borrower or any Borrower Party in this Agreement or in any of the other Loan Documents contains any untrue statement of a material fact or omits to state
any material fact necessary to make statements contained herein or therein not misleading. There is no fact presently known to Borrower which has not been disclosed to Lender which adversely affects, nor as far as Borrower can foresee, might
adversely affect, any Project or the business, operations or condition (financial or otherwise) of Borrower or any Borrower Party. 
  
 Section 6.13 Flood Zone. No portion of the improvements comprising any Project is located in an area identified by the Secretary of
Housing and Urban Development or any successor thereto as an area having special flood hazards pursuant to the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Act of 1994, as amended,
or any 

  

 LOAN AGREEMENT – Page 16 

 
successor law, or, if located within any such area, Borrower has obtained and will maintain the insurance prescribed in Section 3.1 hereof. 
  
 Section 6.14 Single Purpose Entity/Separateness.
Borrower represents, warrants and covenants as follows: 
  
 (a) Borrower has not owned, does not own, and will not own any asset or property other than (i) the Projects, and (ii) incidental personal property necessary for the ownership or operation of the Projects. 

 
 (b) Borrower will not engage in any business other than
the ownership, management and operation of the Projects and Borrower will conduct and operate its business as presently conducted and operated. 
  
 (c) Borrower will not enter into any contract or agreement with any Affiliate of the Borrower, any constituent party of Borrower, or any
Affiliate of any constituent party, except upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an arms-length basis with third parties other than any such party. 
  
 (d) Borrower has not incurred and will not incur any Debt
other than (i) the Loan, (ii) trade and operational debt incurred in the ordinary course of business with trade creditors and in amounts as are normal and reasonable under the circumstances, provided such debt is not evidenced by a note and is paid
when due, and (iii) Debt incurred in the financing of equipment and other personal property used on the Projects. No indebtedness other than the Loan may be secured (subordinate or pari passu) by any Project. 
  
 (e) Borrower has not made and will not make any loans or
advances to any third party (including any Affiliate or constituent party or any Affiliate of any constituent party), and shall not acquire obligations or securities of its Affiliates or any constituent party. 
  
 (f) Borrower is and will remain solvent and Borrower will
pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from its own funds and assets as the same shall become due. 
  
 (g) Borrower 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, nor will Borrower permit any constituent party to amend, modify or otherwise change the partnership certificate, partnership agreement, articles of incorporation and bylaws, operating agreement, trust or other
organizational documents of Borrower or such constituent party without the prior written consent of Lender. 
  
 (h) Borrower will maintain all of its books, records, financial statements and bank accounts separate from those of its Affiliates and any
constituent party and Borrower will file its own tax returns, if any, as may be required under applicable law, to the extent not part of a consolidated group filing a consolidated return, and pay any taxes so required to be paid under applicable
law. Borrower shall maintain its books, records, resolutions and agreements as official records. 
  
 (i) Borrower will be, 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, any constituent party of Borrower, or any Affiliate of any constituent party), shall correct any known misunderstanding regarding its status as a separate entity, shall conduct business in its own name, shall
not identify itself or 

  

 LOAN AGREEMENT – Page 17 

 
any of its Affiliates as a division or part of the other and shall maintain and utilize a separate telephone number, if any, and separate stationery,
invoices and checks. 
  
 (j) Borrower will
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. 
  
 (k) Neither Borrower nor any constituent party will seek the dissolution, winding up, liquidation,
consolidation or merger in whole or in part, of the Borrower. 
  
 (1) Borrower will not commingle the funds and other assets of Borrower with those of any Affiliate or constituent party, or any Affiliate of any constituent party, or any other Person. 
  
 (m) Borrower has 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 Affiliate of any constituent party, or any other Person. 
  
 (n) Borrower does not and will not hold itself out to be
responsible for the debts or obligations of any other Person. 
  
 (o) If Borrower is a limited partnership or a limited liability company, each general partner or managing member (each, an “SPC Party”) shall be a limited liability company whose
sole asset is its interest in Borrower and each such SPC Party will at all times comply, and will cause Borrower to comply, with each of the representations, warranties, and covenants contained in this Section 6.14 as if such representation,
warranty or covenant was made directly by such SPC Party. 
  
 (p) Borrower shall at all times cause there to be at least one duly appointed special manager (an “Independent Director”) of each SPC Party in Borrower who shall not have been at
the time of such individual’s appointment, and may not have been at any time during the preceding five years (i) a shareholder of, or an officer, director, partner, member, or employee of, Borrower or any of their Affiliates, (ii) affiliated
with a customer of, or supplier to, the SPC Party, Borrower or any of their Affiliates, or (iii) a spouse, parent, sibling, child, or other family relative of any person described by (i) or (ii) above. As used herein, the term
“Affiliate” means any Person other than the SPC Party (A) which owns beneficially, directly or indirectly, any outstanding shares of the SPC Party’s stock or interest in the Borrower or (B) which controls or is
under common control with the SPC Party or the Borrower. As used herein, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract or otherwise. 
  
 (q) Borrower shall not cause or permit the manager of each SPC Party in Borrower to take any action which, under the terms of such SPC
Party’s operating agreement, requires the vote of the Independent Director of such SPC Party unless at the time of such action there shall be at least one manager of such SPC Party who is an Independent Director. 
  
 (r) Borrower shall conduct its business so that the
assumptions made with respect to Borrower in that certain opinion letter dated as of the Closing Date (the “Insolvency Opinion”) delivered by Goodwin Procter LLP in connection with the Loan shall be true and
correct in all respects. 
  
 Section 6.15 Compliance with
Anti-Terrorism Orders. 
  
 (a)
Borrower, each member in Borrower, all beneficial owners of Borrower and, to the best of Borrower’s knowledge, all beneficial owners of any such member, are in compliance with all 

  

 LOAN AGREEMENT – Page 18 

 
laws, statutes, rules and regulations of any federal, state or local governmental authority in the United States of America applicable to such Persons,
including, without limitation, the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and other similar requirements contained in the rules and regulations of the Office of Foreign
Asset Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other Executive Orders in respect thereof (the Order and such other rules, regulations, legislation, or orders are collectively called the
“Orders”). Borrower agrees to make its policies, procedures and practices regarding compliance with the Orders of any Persons who, pursuant to transfers permitted by the Mortgage, become stockholders, members, partners or
other investors of Borrower available to Lender for its review and inspection during normal business hours and upon reasonable prior notice. 
  
 (b) Neither Borrower or any member in Borrower nor the beneficial owner of Borrower or any such member: 
  
 (i) is listed on the Specially Designated Nationals and
Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders (such lists
are collectively referred to as the “Lists”); 
  
 (ii) is a Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; 
  
 (iii) is owned or controlled by, nor acts for or on behalf of, any Person on the Lists or any other Person who has been determined by
competent authority to be subject to the prohibitions contained in the Orders; 
  
 (iv) shall transfer or permit the transfer of any interest in Borrower or any Borrower Party to any Person who is or whose beneficial
owners are listed on the Lists; or 
  
 (v) shall
knowingly lease space in any Project to any Person who is listed on the Lists or who is engaged in illegal activities. 
  
 (c) If Borrower obtains knowledge that Borrower or any of its members or their beneficial owners become listed on the Lists or are
indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Borrower shall immediately notify Lender. 
  
 (d) If Borrower obtains knowledge that any tenant in any Project has become listed on the Lists or is
convicted, pleads nolo contendere, indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Borrower shall immediately notify Lender. 
  
 (e) If Borrower obtains knowledge that a tenant at any
Project is listed on the Lists or is convicted or pleads nolo contendere to charges related to activity prohibited in the Orders, then proceeds from the rents of such tenant shall not be used to pay Debt Service and Borrower shall provide Lender
such representations and verifications as Lender shall reasonably request that such rents are not being so used. 
  
 (f) If a tenant at any Project is arrested on such charges, and such charge is not dismissed within thirty (30) days thereafter, Lender
may at its option notify Borrower to exclude such rents from the Debt Service payments. 
  

 LOAN AGREEMENT – Page 19 

 (g) If Borrower or any Borrower Party is listed on the Lists, no earn-out disbursements,
escrow disbursements, or other disbursements under the Loan Documents shall be made and all of such funds shall be paid in accordance with the direction of a court of competent jurisdiction. 
  
 Section 6.16 Prior Loan Documents. Borrower hereby represents,
warrants and covenants as follows: 
  
 (a) The
outstanding principal balance of the indebtedness evidenced by the Existing Note as of the Closing Date is $53,240,932.43 and all accrued interest and charges due thereon have been paid in full. Interest shall accrue from and after the Closing Date
at the rate set forth herein. 
  
 (b) The
Existing Florida Mortgage, Existing Note and all other documents evidencing, governing or securing the Existing Note (collectively, the “Prior Loan Documents”) have not been amended, restated or consolidated in any manner as
of the date hereof except as described in the Recitals to this Agreement and in the Recitals to the Mortgage encumbering the Florida Projects. All of the terms, provisions, covenants, warranties and agreements contained, and all liens and security
interests granted, in the Prior Loan Documents remain in full force and effect, and the liens and security interests granted therein are acknowledged to be valid and subsisting liens against the Projects. 
  
 (c) Except as previously disclosed to Lender in writing,
there has not occurred any act or event which constitutes, or which would have constituted, or by the giving of notice or the expiration of any grace period, or both, a default under any of the Prior Loan Documents. 
  
 (d) On the date hereof, there exist no defenses or offsets
to the obligations evidenced and secured by the Prior Loan Documents and Borrower hereby waives any right to assert any such claims or defenses existing as of the date hereof. 
  
 (e) Borrower, for itself and on behalf of each Borrower Party, hereby jointly and severally indemnify,
release, acquit, hold harmless and forever discharge Lender, and Lender’s subsidiaries, divisions, partners, affiliated corporations, officers, directors, agents, employees, attorneys and representatives, as well as their respective heirs,
executors, legal representatives, successors and assigns (herein collectively called the “Lender Related Parties”) from any and all claims, demands, debts, liabilities, contracts, agreements, obligations, accounts, defenses,
suits, offsets against any of the Prior Loan Documents, actions, causes of action or claims for relief of whatever kind of nature, known or unknown to Borrower or any Borrower Party as of the date hereof, which Borrower or any Borrower Party may
have, jointly or severally, against Lender or Lender Related Parties, for or by reason of any matter, cause or thing whatsoever occurring prior to the date of this certificate, which relate to, in whole or in part, directly or indirectly, the Prior
Loan Documents, the indebtedness evidenced thereby, the loan transactions evidenced thereby, or any prior forbearance granted by any predecessor in interest in connection with any obligations and liabilities of Borrower under the Prior Loan
Documents, including, without limitation, any such claims or defenses as fraud, mistake, duress, overreaching, usury, failure to disclose, and interference with business management or relationships relating to any of the matters, documents,
transactions, acts or omissions described above. 
  

 LOAN AGREEMENT – Page 20 

 ARTICLE 7 
  

FINANCIAL REPORTING 
  
 Section 7.1 Financial Statements. 
  
 (a) Monthly Reports. Until the Loan is sold in a Secondary Market Transaction, Borrower shall furnish to Lender within
twenty-one (21) days after the end of each calendar month, a current rent roll and a detailed operating statement (showing monthly activity and year-to-date) for each Project stating operating revenues, operating expenses, operating income and net
cash flow for the calendar month just ended. 
  
 (b) Quarterly Reports. Within forty-five (45) days after the end of each calendar quarter, Borrower shall furnish to Lender a current rent roll and a detailed operating statement (showing quarterly activity and year-to-date)
for each Project stating operating revenues, operating expenses, operating income and net cash flow for the calendar quarter just ended. 
  
 (c) Annual Reports. Within ninety (90) days after the end of each fiscal year of Borrower’s operation of the Projects
(on a Project-by-Project basis and on a consolidated basis), Borrower shall furnish to Lender a current (as of the end of such fiscal year) balance sheet, a detailed operating statement stating operating revenues, operating expenses, operating
income and net cash flow for each of Borrower and the Projects, and, if required by Lender, audited financial statements prepared by an independent public accountant reasonably satisfactory to Lender. 
  
 (d) Certification; Supporting Documentation.
Each such financial statement shall be in scope and detail reasonably satisfactory to Lender and certified by the chief financial representative of Borrower. 
  
 Section 7.2 Accounting Principles. All financial statements shall be prepared in accordance with generally accepted accounting principles in
the United States of America in effect on the date so indicated and consistently applied (or such other accounting basis reasonably acceptable for Lender). 
  
 Section 7.3 Other Information; Access. Borrower shall deliver to Lender such additional information regarding Borrower, its
subsidiaries, its business, any Borrower Party, and the Projects within 30 days after Lender’s request therefor. Borrower shall permit Lender to examine such records, books and papers of Borrower which reflect upon its financial condition and
the income and expenses of the Projects. In the event that Borrower fails to forward the financial statements required in this Article 7 within thirty (30) days after written request, Lender shall have the right to audit such records, books and
papers at Borrower’s expense. 
  
 Section 7.4 Annual
Budget. At least thirty (30) days prior to the commencement of each fiscal year, Borrower will provide to Lender its proposed annual operating and capital improvements budget for each Project for such fiscal year for review and approval by
Lender. 
  

 LOAN AGREEMENT – Page 21 

 ARTICLE 8 
  

COVENANTS 
  
 Borrower covenants and agrees with Lender as follows: 
  
 Section 8.1 Due On Sale and Encumbrance; Transfers of Interests. Without the prior written consent of Lender, neither Borrower nor any other
Person having an ownership or beneficial interest in Borrower shall sell, transfer, convey, mortgage, pledge, or assign any interest in any Project or any part thereof or further encumber, alienate, grant a Lien or grant any other interest in any
Project or any part thereof, whether voluntarily or involuntarily, in violation of the covenants and conditions set forth in the Mortgages. 
  
 Section 8.2 Taxes; Utility Charges. Except to the extent sums sufficient to pay all Taxes (defined herein) have been previously deposited
with Lender as part of the Tax and Insurance Escrow Fund and subject to Borrower’s right to contest in accordance with Section 11.8 hereof, Borrower shall pay before any fine, penalty, interest or cost may be added thereto, and shall not enter
into any agreement to defer, any real estate taxes and assessments, franchise taxes and charges, and other governmental charges (the “Taxes”) that may become a Lien upon any Project or become payable during the term of the
Loan. Borrower’s compliance with Section 3.4 of this Agreement relating to impounds for Taxes shall, with respect to payment of such Taxes, be deemed compliance with this Section 8.2. Borrower shall not suffer or permit the joint assessment of
any Project with any other real property constituting a separate tax lot or with any other real or personal property. Borrower shall promptly pay for all utility services provided to the Projects. 
  
 Section 8.3 Control; Management. Except as expressly permitted
in Section 3.9 of the Mortgages, there shall be no change in the day-to-day control and management of Borrower or Borrower’s general partner or managing member without the prior written consent of Lender. Borrower shall not terminate, replace
or appoint any property manager or terminate or amend the property management agreement for any Project without Lender’s prior written approval, which approval shall not be unreasonably withheld. Any change in ownership or control of the
property manager shall be cause for Lender to re-approve such property manager and property management agreement. Each property manager shall hold and maintain all necessary licenses, certifications and permits required by law. Borrower shall fully
perform all of its covenants, agreements and obligations under the property management agreements. The properly management fee payable under each property management agreement shall not exceed six percent (6.0%) of gross revenues collected.

  
 Section 8.4 Operation; Maintenance; Inspection.
Borrower shall observe and comply with all legal requirements applicable to the ownership, use and operation of the Projects. Borrower shall maintain the Projects in good condition and promptly repair any damage or casualty. Borrower shall permit
Lender and its agents, representatives and employees, upon reasonable prior notice to Borrower, to inspect the Projects and conduct such environmental and engineering studies as Lender may require, provided such inspections and studies do not
materially interfere with the use and operation of the Projects. 
  
 Section 8.5 Taxes on Security. Borrower shall pay all taxes, charges, filing, registration and recording fees, excises and levies payable with respect to the Note or the Liens created or secured by the Loan Documents, other
than income, franchise and doing business taxes imposed on Lender. If there shall be enacted any law (a) deducting all or a portion of the Loan from the value of any Project for the purpose of taxation, (b) affecting any Lien on any Project, or (c)
changing existing laws of taxation of mortgages, deeds of trust, security deeds, or debts secured by real property, or changing the manner of 

  

 LOAN AGREEMENT – Page 22 

 
collecting any such taxes, Borrower shall promptly pay to Lender, on demand, all taxes, costs and charges for which Lender is or may be liable as a result
thereof; however, if such payment would be prohibited by law or would render the Loan usurious, then instead of collecting such payment, Lender may declare all amounts owing under the Loan Documents to be immediately due and payable. Borrower hereby
agrees that, in the event that it is determined that additional documentary stamp tax or intangible tax is due on any Mortgage or promissory note executed in connection herewith (including, without limitation, the Note), Borrower shall pay same
within ten (10) days after demand of payment from Lender and the payment of such sums shall be secured by the Mortgages and such sums shall bear interest at the Default Rate until paid in full, and Borrower shall indemnify and hold harmless Lender
for all such documentary stamp tax and/or intangible tax, including all penalties and interest assessed or charged in connection therewith. 
  
 Section 8.6 Legal Existence; Name, Etc. Borrower and each SPC Party shall preserve and keep in full force and effect its entity status,
franchises, rights and privileges under the laws of the state of its formation, and all qualifications, licenses and permits applicable to the ownership, use and operation of the Projects. Neither Borrower nor any general partner or managing member
of Borrower shall wind up, liquidate, dissolve, reorganize, merge, or consolidate with or into, or convey, sell, assign, transfer, lease, or otherwise dispose of all or substantially all of its assets, or acquire all or substantially all of the
assets of the business of any Person, or permit any subsidiary or Affiliate of Borrower to do so (except as permitted in Section 3.9 of the Mortgages with respect to Extra Space Storage LLC). Borrower shall not change its name, identity, state of
formation, or organizational structure, or the location of its chief executive office or principal place of business unless Borrower (a) shall have obtained the prior written consent of Lender to such change, and (b) shall have taken all actions
necessary or requested by Lender to file or amend any financing statement or continuation statement to assure perfection and continuation of perfection of security interests under the Loan Documents. The name of Borrower, type of entity,
organization number, and state of formation set forth in this Agreement accurately reflect such information as shown on the public record of Borrower’s jurisdiction of organization. 
  
 Section 8.7 Further Assurances. Borrower shall promptly (a) cure any defects in the execution and delivery of
the Loan Documents and the Environmental Indemnity Agreement, and (b) execute and deliver, or cause to be executed and delivered, all such other documents, agreements and instruments as Lender may reasonably request to further evidence and more
fully describe the collateral for the Loan, to correct any omissions in the Loan Documents, to perfect, protect or preserve any liens created under any of the Loan Documents and the Environmental Indemnity Agreement, or to make any recordings, file
any notices, or obtain any consents, as may be necessary or appropriate in connection therewith. Borrower grants Lender an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and all rights and
remedies available to Lender under the Loan Documents and the Environmental Indemnity Agreement, at law and in equity, including without limitation such rights and remedies available to Lender pursuant to this Section 8.7. 
  
 Section 8.8 Estoppel Certificates. Borrower, within ten (10)
days after request, shall furnish to Lender a written statement, duly acknowledged, setting forth the amount due on the Loan, the terms of payment of the Loan, the date to which interest has been paid, whether any offsets or defenses exist against
the Loan and, if any are alleged to exist, the nature thereof in detail, and such other matters as Lender reasonably may request. 
  
 Section 8.9 Notice of Certain Events. Borrower shall promptly notify Lender of (a) any Potential Default or Event of Default, together with
a detailed statement of the steps being taken to cure such Potential Default or Event of Default; (b) any notice of default received by Borrower under other obligations relating to any Project or otherwise material to Borrower’s business; and
(c) any threatened or 

  

 LOAN AGREEMENT – Page 23 

 
pending legal, judicial or regulatory proceedings, including any dispute between Borrower and any governmental authority, affecting Borrower or any Project.

  
 Section 8.10 Indemnification. Except for matters
caused by Lender’s gross negligence or willful misconduct, Borrower shall protect, defend, indemnify and save harmless Lender its shareholders, directors, officers, employees and agents from and against all liabilities, obligations, claims,
damages, penalties, causes of action, costs and expenses (including without limitation reasonable attorneys’ fees and expenses), imposed upon or incurred by or asserted against Lender by reason of (a) ownership of the Mortgages, the Projects or
any interest therein or receipt of any rents; (b) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about any Project or any part thereof or on the adjoining sidewalks, curbs, adjacent property or
adjacent parking areas, streets or ways; (c) any use, nonuse or condition in, on or about any Project or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (d) performance of any
labor or services or the furnishing of any materials or other property in respect of any Project or any part thereof; and (e) 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 Agreement, or to supply a copy thereof in a timely fashion to the recipient of the proceeds of the transaction in
connection with which this Agreement is made. Any amounts payable to Lender by reason of the application of this section shall become immediately due and payable and shall bear interest at the Default Rate from the date loss or damage is sustained
by Lender until paid. 
  
 Section 8.11 Cooperation.
Borrower acknowledges that Lender and its successors and assigns may (a) sell this Agreement, the Mortgages, the Note, the other Loan Documents, and the Environmental Indemnity Agreement, and any and all servicing rights thereto to one or more
investors as a whole loan, (b) participate the Loan to one or more investors, (c) deposit this Agreement, the Note, other Loan Documents, and the Environmental Indemnity Agreement with a trust, which trust may sell certificates to investors
evidencing an ownership interest in the trust assets, or (d) otherwise sell the Loan or interest therein to investors (the transactions referred to in clauses (a) through (d) are hereinafter each referred to as a “Secondary Market
Transaction”). Borrower shall cooperate with Lender in effecting any such Secondary Market Transaction and shall cooperate to implement all requirements imposed by any Rating Agency involved in any Secondary Market Transaction. Borrower
shall provide such information, legal opinions and documents relating to the Borrower, the Projects and any tenants of the Projects as Lender may reasonably request in connection with such Secondary Market Transaction at no third-party professional
expense to Borrower unless otherwise required by the Loan Documents. In addition, Borrower shall make available to Lender all information concerning its business and operations, and any other matters contemplated by the Loan Documents, that Lender
may reasonably request. Lender shall be permitted to share all such information with the investment banking firms, Rating Agencies, accounting firms, law firms and other third-party advisory firms involved with the Loan and the Loan Documents or the
applicable Secondary Market Transaction. It is understood that the information provided by Borrower to Lender may ultimately be incorporated into the offering documents for the Secondary Market Transaction and thus various investors may also see
some or all of the information. Lender and all of the aforesaid third-party advisors and professional firms shall be entitled to rely on the information supplied by, or on behalf of, Borrower and Borrower indemnifies Lender as to any losses, claims,
damages or liabilities that arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in such information or arise out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated in such information or necessary in order to make the statements in such information, or in light of the circumstances under which they were made, not misleading. 
  

 LOAN AGREEMENT – Page 24 

 Section 8.12 Payment For Labor and Materials. Subject to Borrower’s right to contest
in accordance with Section 11.8 hereof, Borrower will promptly pay when due all bills and costs for labor, materials, and specifically fabricated materials incurred in connection with any Project and never permit to exist beyond the due date thereof
in respect of such Project or any part thereof any Lien, even though inferior to the Liens hereof, and in any event never permit to be created or exist in respect of any Project or any part thereof any other or additional Lien other than the Liens
hereof, except for the Permitted Encumbrances (defined in the Mortgage encumbering such Project). 
  
 ARTICLE 9 
  
 EVENTS OF DEFAULT 
  
 Each of the following
shall constitute an Event of Default under the Loan: 
  
 Section 9.1 Payments. Borrower’s failure to pay any regularly scheduled installment of principal, interest or other amount due under the Loan Documents within five (5) days of (and including) the date when due, or
Borrower’s failure to pay the Loan at the Maturity Date, whether by acceleration or otherwise. 
  
 Section 9.2 Insurance. Borrower’s failure to maintain insurance as required under Section 3.1 of this Agreement. 
  
 Section 9.3 Sale, Encumbrance, Etc. The sale, transfer,
conveyance, pledge, mortgage or assignment of any part or all of any Project, or any interest therein, or of any interest in Borrower, in violation of the Mortgage encumbering such Project. 
  
 Section 9.4 Covenants. Borrower’s failure to perform or
observe any of the agreements and covenants contained in this Agreement or in any of the other Loan Documents (other than payments under Section 9.1, insurance requirements under Section 9.2, transfers and encumbrances under Section 9.3, and the
Events of Default described in Sections 9.7, 9.8 and 9.9 below), and the continuance of such failure for ten (10) days after notice by Lender to Borrower; however, subject to any shorter period for curing any failure by Borrower as specified in any
of the other Loan Documents, Borrower shall have an additional sixty (60) days to cure such failure if (a) such failure does not involve the failure to make payments on a monetary obligation; (b) such failure cannot reasonably be cured within ten
(10) days; (c) Borrower is diligently undertaking to cure such default; and (d) Borrower has provided Lender with security reasonably satisfactory to Lender against any interruption of payment or impairment of collateral as a result of such
continuing failure. 
  
 Section 9.5 Representations and
Warranties. Any representation or warranty made in any Loan Document proves to be untrue in any material respect when made or deemed made. 
  
 Section 9.6 Other Encumbrances. Any default under any document or instrument, other than the Loan Documents, evidencing or creating a Lien
on any Project or any part thereof, not cured within any applicable grace or cure period therein. 
  
 Section 9.7 Involuntary Bankruptcy or Other Proceeding. Commencement of an involuntary case or other proceeding against Borrower, any
Borrower Party or any other Person having an ownership or security interest in any Project (each, a “Bankruptcy Party”) which seeks liquidation, reorganization or other relief with respect to it or its debts or other
liabilities under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeks the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any of its property, and such involuntary case or

  

 LOAN AGREEMENT – Page 25 

 
other proceeding shall remain undismissed or unstayed for a period of 60 days; or an order for relief against a Bankruptcy Party shall be entered in any such
case under the Federal Bankruptcy Code. 
  
 Section 9.8
Voluntary Petitions, Etc. Commencement by a Bankruptcy Party of a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its Debts or other liabilities under any bankruptcy,
insolvency or other similar law or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official for it or any of its property, or consent by a Bankruptcy Party to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding commenced against it, or the making by a Bankruptcy Party of a general assignment for the benefit of creditors, or the failure by a Bankruptcy Party, or the admission by a
Bankruptcy Party in writing of its inability, to pay its debts generally as they become due, or any action by a Bankruptcy Party to authorize or effect any of the foregoing. 
  
 Section 9.9 Anti-Terrorism. If Borrower or any Borrower Party is listed on the Lists or is convicted or pleads
nolo contendere to charges related to activity prohibited in the Orders, or if Borrower or any Borrower Party is arrested on charges related to activity prohibited in the Orders and such charge is not dismissed within sixty (60) days thereafter.

  
 Section 9.10 Oakland Ground Lease. The
occurrence of any one of the following events with respect to the Oakland Ground Lease: (a) Borrower fails in the payment of any rent or other charge mentioned in or made payable by the Oakland Ground Lease as and when such rent or other charge is
payable; or (b) there shall occur any default by Borrower, as tenant under the Oakland Ground Lease, in the observance or performance of any term, covenant or condition of the Oakland Ground Lease on the part of Borrower, to be observed or
performed, and said default is not cured within thirty (30) days prior to the expiration of any applicable grace period therein provided; or (c) if any one or more of the events referred to in the Oakland Ground Lease shall occur which would cause
the Oakland Ground Lease to terminate without notice or action by the Ground Lessor or which would entitle the Ground Lessor to terminate the Oakland Ground Lease and the term thereof by giving notice to Borrower, as tenant thereunder; or (d) if the
leasehold estate created by the Oakland Ground Lease shall be surrendered or the Oakland Ground Lease shall be terminated or cancelled for any reason or under any circumstances whatsoever; or (e) if any of the terms, covenants or conditions of the
Oakland Ground Lease shall in any manner be modified, changed, supplemented, altered, or amended without consent of Lender. 
  
 ARTICLE 10  
  
 REMEDIES 
  
 Section 10.1 Remedies - Insolvency Events. Upon the occurrence of any Event of Default described in Section 9.7 or 9.8, all amounts due
under the Loan Documents immediately shall become due and payable, all without written notice and without presentment, demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the
maturity thereof, or any other notice of default of any kind, all of which are hereby expressly waived by Borrower; however, if the Bankruptcy Party under Section 9.7 or 9.8 is other than Borrower, then all amounts due under the Loan Documents shall
become immediately due and payable at Lender’s election, in Lender’s sole discretion. 
  
 Section 10.2 Remedies - Other Events. Except as set forth in Section 10.1 above, while any Event of Default exists, Lender may (a) declare
the entire Loan to be immediately due and payable without presentment, demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or other notice of default of
any kind, all 

  

 LOAN AGREEMENT – Page 26 

 
of which are hereby expressly waived by Borrower, and (b) exercise all rights and remedies therefor under the Loan Documents and at law or in equity.

  
 Section 10.3 Lender’s Right to Perform the
Obligations. If Borrower shall fail, refuse or neglect to make any payment or perform any act required by the Loan Documents, then while any Event of Default exists, and without notice to or demand upon Borrower and without waiving or
releasing any other right, remedy or recourse Lender may have because of such Event of Default, Lender may (but shall not be obligated to) make such payment or perform such act for the account of and at the expense of Borrower, and shall have the
right to enter upon the Projects for such purpose and to take all such action thereon and with respect to the Projects as it may deem necessary or appropriate. If Lender shall elect to pay any sum due with reference to any Project, Lender may do so
in reliance on any bill, statement or assessment procured from the appropriate governmental authority or other issuer thereof without inquiring into the accuracy or validity thereof. Similarly, in making any payments to protect the security intended
to be created by the Loan Documents, Lender shall not be bound to inquire into the validity of any apparent or threatened adverse title, lien, encumbrance, claim or charge before making an advance for the purpose of preventing or removing the same.
Borrower shall indemnify Lender for all losses, expenses, damages, claims and causes of action, including reasonable attorneys’ fees, incurred or accruing by reason of any acts performed by Lender pursuant to the provisions of this Section
10.3. All sums paid by Lender pursuant to this Section 10.3, and all other sums expended by Lender to which it shall be entitled to be indemnified, together with interest thereon at the Default Rate from the date of such payment or expenditure until
paid, shall constitute additions to the Loan, shall be secured by the Loan Documents and shall be paid by Borrower to Lender upon demand. 
  
 ARTICLE 11 
  
 MISCELLANEOUS 
  
 Section 11.1 Notices. Any notice required or permitted to be given under this Agreement shall be in writing and either shall be mailed by certified mail, postage prepaid, return receipt requested, or
sent by overnight air courier service, or personally delivered to a representative of the receiving party, or sent by telecopy (provided an identical notice is also sent simultaneously by mail, overnight courier, or personal delivery as otherwise
provided in this Section 11.1). All such communications shall be mailed, sent or delivered, addressed to the party for whom it is intended at its address set forth below. 
  

			
	If to Borrower:	  	 Extra Space Properties Three LLC
 2795 East Cottonwood
Parkway, Suite 400
 Salt Lake City, Utah 84121
 Attention: David
L. Rasmussen, General Counsel
 Telecopy: (801) 365-4947

		
	If to Lender:	  	 General Electric Capital Corporation
 c/o GEMSA Loan
Services, L.P.
 1500 City West Boulevard, Suite 200
 Houston,
Texas 77042-2300
 Attention: Portfolio Manager/Access Program
 Telecopy: (713) 458-7500

  

 LOAN AGREEMENT – Page 27 

			
	 with a copy to:
	  	General Electric Capital Corporation
	 	  	 Two Bent Tree Tower
 16479 Dallas Parkway, Suite
500
 Addison, Texas 75001
 Attention: David R.
Martindale
 Telecopy: (972) 728-7650

  
 Any communication so addressed and
mailed shall be deemed to be given on the earliest of (a) when actually delivered, (b) on the first Business Day after deposit with an overnight air courier service, or (c) on the third Business Day after deposit in the United States mail, postage
prepaid, in each case to the address of the intended addressee, and any communication so delivered in person shall be deemed to be given when receipted for by, or actually received by Lender or Borrower, as the case may be. If given by telecopy, a
notice shall be deemed given and received when the telecopy is transmitted to the party’s telecopy number specified above and confirmation of complete receipt is received by the transmitting party during normal business hours or on the next
Business Day if not confirmed during normal business hours. Either party may designate a change of address by written notice to the other by giving at least ten (10) days prior written notice of such change of address. 
  
 Section 11.2 Amendments and Waivers. No amendment or waiver of
any provision of the Environmental Indemnity Agreement and the Loan Documents shall be effective unless in writing and signed by the party against whom enforcement is sought. 
  
 Section 11.3 Limitation on Interest. It is the intention of the parties hereto to conform strictly to
applicable usury laws. Accordingly, all agreements between Borrower and Lender with respect to the Loan are hereby expressly limited so that in no event, whether by reason of acceleration of maturity or otherwise, shall the amount paid or agreed to
be paid to Lender or charged by Lender for the use, forbearance or detention of the money to be lent hereunder or otherwise, exceed the maximum amount allowed by law. If the Loan would be usurious under applicable law (including the laws of the
State and the laws of the United States of America), then, notwithstanding anything to the contrary in the Loan Documents: (a) the aggregate of all consideration which constitutes interest under applicable law that is contracted for, taken,
reserved, charged or received under the Loan Documents shall under no circumstances exceed the maximum amount of interest allowed by applicable law, and any excess shall be credited on the Note by the holder thereof; and (b) if maturity is
accelerated by reason of an election by Lender, or in the event of any prepayment, then any consideration which constitutes interest may never include more than the maximum amount allowed by applicable law. In such case, excess interest, if any,
provided for in the Loan Documents or otherwise, to the extent permitted by applicable law, shall be amortized, prorated, allocated and spread from the date of advance until payment in full so that the actual rate of interest is uniform through the
term hereof. If such amortization, proration, allocation and spreading is not permitted under applicable law, then such excess interest shall be canceled automatically as of the date of such acceleration or prepayment and, if theretofore paid, shall
be credited on the Note. The terms and provisions of this Section 11.3 shall control and supersede every other provision of the Loan Documents. The Loan Documents are contracts made under and shall be construed in accordance with and governed by the
laws of the State, except that if at any time the laws of the United States of America permit Lender to contract for, take, reserve, charge or receive a higher rate of interest than is allowed by the laws of the State (whether such federal laws
directly so provide or refer to the law of any state), then such federal laws shall to such extent govern as to the rate of interest which Lender may contract for, take, reserve, charge or receive under the Loan Documents. 
  
 Section 11.4 Invalid Provisions. If any provision of any Loan
Document or the Environmental Indemnity Agreement is held to be illegal, invalid or unenforceable, such provision shall be fully severable; the Environmental Indemnity Agreement and the Loan Documents shall be construed 

  

 LOAN AGREEMENT – Page 28 

 
and enforced as if such illegal, invalid or unenforceable provision had never comprised a part thereof; the remaining provisions thereof shall remain in full
effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance therefrom; and in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as a part of such Environmental
Indemnity Agreement and such Loan Document a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible to be legal, valid and enforceable. 
  
 Section 11.5 Reimbursement of Expenses. Borrower shall pay all reasonable expenses incurred by Lender in
connection with the Loan, including reasonable fees and expenses of Lender’s attorneys, environmental, engineering and other consultants, and fees, charges or taxes for tie recording or filing of Loan Documents. Borrower shall pay all expenses
of Lender in connection with the administration of the Loan, including audit costs, inspection fees, settlement of condemnation and casualty awards, premiums for title insurance and endorsements thereto, and Rating Agency fees and expenses in
connection with confirmation letters, if required. Borrower shall, upon request, promptly reimburse Lender for all amounts expended, advanced or incurred by Lender to collect the Note, or to enforce the rights of Lender under this Agreement, the
Environmental Indemnity Agreement, or any Loan Document, or to defend or assert the rights and claims of Lender under the Environmental Indemnity Agreement or the Loan Documents or with respect to the Projects (by litigation or other proceedings),
which amounts will include all court costs, reasonable attorneys’ fees and expenses, fees of auditors and accountants, and investigation expenses as may be incurred by Lender in connection with any such matters (whether or not litigation is
instituted), together with interest at the Default Rate on each such amount from the date of disbursement until the date of reimbursement to Lender, all of which shall constitute part of the Loan and shall be secured by the Loan Documents.

  
 Section 11.6 Approvals; Third Parties;
Conditions. All approval rights retained or exercised by Lender with respect to leases, contracts, plans, studies and other matters are solely to facilitate Lender’s credit underwriting, and shall not be deemed or construed as a
determination that Lender has passed on the adequacy thereof for any other purpose and may not be relied upon by Borrower or any other Person. This Agreement is for the sole and exclusive use of Lender and Borrower and may not be enforced, nor
relied upon, by any Person other than Lender and Borrower. All conditions of the obligations of Lender hereunder, including the obligation to make advances, are imposed solely and exclusively for the benefit of Lender, its successors and assigns,
and no other Person shall have standing to require satisfaction of such conditions or be entitled to assume that Lender will refuse to make advances in the absence of strict compliance with any or all of such conditions, and no other Person shall,
under any circumstances, be deemed to be a beneficiary of such conditions, any and all of which may be freely waived in whole or in part by Lender at any time in Lender’s sole discretion. 
  
 Section 11.7 Lender Not in Control; No Partnership. None of the
covenants or other provisions contained in this Agreement shall, or shall be deemed to, give Lender the right or power to exercise control over the affairs or management of Borrower, the power of Lender being limited to the rights to exercise the
remedies referred to in the Environmental Indemnity Agreement or the Loan Documents. The relationship between Borrower and Lender is, and at all times shall remain, solely that of debtor and creditor. No covenant or provision of the Environmental
Indemnity Agreement or the Loan Documents is intended, nor shall it be deemed or construed, to create a partnership, joint venture, agency or common interest in profits or income between Lender and Borrower or to create an equity in the Projects in
Lender. Lender neither undertakes nor assumes any responsibility or duty to Borrower or to any other person with respect to the Projects or the Loan, except as expressly provided in the Environmental Indemnity Agreement and the Loan Documents; and
notwithstanding any other provision of the Environmental Indemnity Agreement or the Loan Documents: (a) Lender is not, and shall not be construed as, a partner, joint venturer, alter ego, manager, controlling person or other business associate or
participant of any kind of Borrower or its stockholders, members, or partners and Lender does not 

  

 LOAN AGREEMENT – Page 29 

 
intend to ever assume such status; (b) Lender shall in no event be liable for any Debts, expenses or losses incurred or sustained by Borrower; and (c) Lender
shall not be deemed responsible for or a participant in any acts, omissions or decisions of Borrower or its stockholders, members, or partners. Lender and Borrower disclaim any intention to create any partnership, joint venture, agency or common
interest in profits or income between Lender and Borrower, or to create an equity in the Projects in Lender, or any sharing of liabilities, losses, costs or expenses. 
  
 Section 11.8 Contest of Certain Claims. Borrower may contest the validity of Taxes or any mechanic’s or
materialman’s lien asserted against any Project so long as (a) Borrower notifies Lender that it intends to contest such Taxes or liens, as applicable, (b) Borrower provides Lender with an indemnity, bond or other security reasonably
satisfactory to Lender assuring the discharge of Borrower’s obligations for such Taxes or lens, as applicable, including interest and penalties, (c) Borrower is diligently contesting the same by appropriate legal proceedings in good faith and
at its own expense and concludes such contest prior to the tenth (10th) day preceding the earlier to occur of the Maturity Date or the date on which such Project is scheduled to be sold for non-payment, (d) Borrower promptly upon final determination
thereof pays the amount of any such Taxes or liens, as applicable, together with all costs, interest and penalties which may be payable in connection therewith, and (e) notwithstanding the foregoing, Borrower shall immediately upon request of Lender
pay any such Taxes or liens, as applicable, notwithstanding such contest if, in the opinion of Lender, such Project or any part thereof or interest therein may be in danger of being sold, forfeited, foreclosed, terminated, canceled or lost. Lender
may pay over any cash deposit or part thereof to the claimant entitled thereto at any time when, in the reasonable judgment of Lender, the entitlement of such claimant is established. 
  
 Section 11.9 Time of the Essence. Time is of the essence with respect to this Agreement and the other Loan
Documents. 
  
 Section 11.10 Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of Lender and Borrower and their respective successors and assigns, provided that neither Borrower nor any other Borrower Party shall, without the prior written consent of Lender, assign
any rights, duties or obligations hereunder. 
  
 Section 11.11
Renewal, Extension or Rearrangement. All provisions of the Environmental Indemnity Agreement and the Loan Documents shall apply with equal effect to each and all promissory notes and amendments thereof hereinafter executed which in whole
or in part represent a renewal, extension, increase or rearrangement of the Loan. 
  
 Section 11.12 Waivers. No course of dealing on the part of Lender, its officers, employees, consultants or agents, nor any failure or delay by Lender with respect to exercising any right, power or
privilege of Lender under the Environmental Indemnity Agreement and any of the Loan Documents, shall operate as a waiver thereof. 
  
 Section 11.13 Cumulative Rights; Joint and Several Liability. Rights and remedies of Lender under the Environmental Indemnity Agreement and
the Loan Documents shall be cumulative, and the exercise or partial exercise of any such right or remedy shall not preclude the exercise of any other right or remedy. If more than one person or entity has executed this Agreement as
“Borrower,” the obligations of all such persons or entities hereunder shall be joint and several. 
  
 Section 11.14 Singular and Plural. Words used in this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement in the
singular, where the context so permits, shall be deemed to include the plural and vice versa. The definitions of words in the singular in this 

  

 LOAN AGREEMENT – Page 30 

 
Agreement, the other Loan Documents, and the Environmental Indemnity Agreement shall apply to such words when used in the plural where the context so permits
and vice versa. 
  
 Section 11.15 Phrases.
Except as otherwise expressly provided herein, when used in this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement, the phrase “including” shall mean “including, but not limited to,” the phrase
“satisfactory to Lender” shall mean “in form and substance satisfactory to Lender in all respects,” the phrase “with Lender’s consent” or “with Lender’s approval” shall mean such consent or approval
at Lender’s sole discretion, and the phrase “acceptable to Lender” shall mean “acceptable to Lender at Lender’s sole discretion.” 
  

Section 11.16 Exhibits and Schedules. The exhibits and schedules attached to this Agreement are incorporated herein and shall be
considered a part of this Agreement for the purposes stated herein. 
  
 Section 11.17 Titles of Articles, Sections and Subsections. All titles or headings to articles, sections, subsections or other divisions of this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement or
the exhibits hereto and thereto are only for the convenience of the parties and shall not be construed to have any effect or meaning with respect to the other content of such articles, sections, subsections or other divisions, such other content
being controlling as to the agreement between the parties hereto. 
  
 Section 11.18 Promotional Material. Borrower authorizes Lender to issue press releases, advertisements and other promotional materials in connection with Lender’s own promotional and marketing activities, including
in connection with a Secondary Market Transaction, and such materials may describe the Loan in general terms or in detail and Lender’s participation therein in the Loan. All references to Lender contained in any press release, advertisement or
promotional material issued by Borrower shall be approved in writing by Lender in advance of issuance. 
  
 Section 11.19 Survival. All of the representations, warranties, covenants, and indemnities hereunder (including environmental matters
under Article 4), under the indemnification provisions of the other Loan Documents and under the Environmental Indemnity Agreement, shall survive the repayment in full of the Loan and the release of the liens evidencing or securing the Loan, and
shall survive the transfer (by sale, foreclosure, conveyance in lieu of foreclosure or otherwise) of any or all right, title and interest in and to the Projects to any party, whether or not an Affiliate of Borrower. 
  
 Section 11.20 Waiver of Jury Trial. To the maximum
extent permitted by law, Borrower and Lender hereby knowingly, voluntarily and intentionally waive the right to a trial by jury in respect of any litigation based hereon, arising out of, under or in connection with this Agreement, any other Loan
Document, or the Environmental Indemnity Agreement, or any course of conduct, course of dealing, statement (whether verbal or written) or action of either party or any exercise by any party of their respective rights under the Loan Documents and the
Environmental Indemnity Agreement or in any way relating to the Loan or the Projects (including, without limitation, any action to rescind or cancel this Agreement, and any claim or defense asserting that this Agreement was fraudulently induced or
is otherwise void or voidable). This waiver is a material inducement for Lender to enter this Agreement. 
  
 Section 11.21 Waiver of Punitive or Consequential Damages. Neither Lender nor Borrower shall be responsible or liable to the other or
to any other Person for any punitive, exemplary or consequential damages which may be alleged as a result of the Loan or the transaction contemplated hereby, including any breach or other default by any party hereto. 
  
 Section 11.22 Governing Law. Except as otherwise
expressly provided in any of the other Loan Documents, in all respects, including all matters of construction, validity and performance, this 

  

 LOAN AGREEMENT – Page 31 

 
Agreement, the other Loan Documents and the Environmental Indemnity Agreement, and the obligations arising hereunder and thereunder, shall be governed by,
and construed and enforced in accordance with, the laws of the State of Utah applicable to contracts made and performed in such state, without regard to the principals thereof regarding conflict of laws, and any applicable laws of the United States
of America. Lender and Borrower agree to submit to personal jurisdiction and to waive any objection as to venue in the County of Salt Lake, State of Utah. Nothing herein shall preclude Lender or Borrower from bringing suit or taking other legal
action in any other jurisdiction. 
  
 Section 11.23 Entire
Agreement. This Agreement, the other Loan Documents and the Environmental Indemnity Agreement embody the entire agreement and understanding between Lender and Borrower and supersede all prior agreements and understandings between such
parties relating to the subject matter hereof and thereof. Accordingly, the Loan Documents and the Environmental Indemnity Agreement may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There
are no unwritten oral agreements between the parties. 
  
 Section 11.24 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute an original, but all of which shall constitute one document. 
  
 ARTICLE 12 
  
 LIMITATIONS ON LIABILITY 
  
 Section 12.1 Limitation on Liability. Except as provided
below, Borrower shall not be personally liable for amounts due under the Loan Documents. Borrower shall be personally liable to Lender for any deficiency, loss or damage suffered by Lender because of: (a) Borrower’s commission of a criminal
act; (b) the failure to comply with provisions of the Loan Documents prohibiting the sale, transfer or encumbrance of the Projects, any other collateral, or any direct or indirect ownership interest in Borrower; (c) the misapplication by Borrower or
any Borrower Party of any funds derived from the Projects, including security deposits, insurance proceeds and condemnation awards in violation of this Agreement or any of the other Loan Documents; (d) the fraud or misrepresentation by Borrower or
any Borrower Party made in or in connection with the Loan Documents or the Loan; (e) Borrower’s collection of rents more than one month in advance or entering into or modifying leases, or receipt of monies by Borrower or any Borrower Party in
connection with the modification of any leases, in violation of this Agreement or any of the other Loan Documents; (f) Borrower’s failure to apply proceeds of rents or any other payments in respect of the leases and other income of the Projects
or any other collateral when received to the costs of maintenance and operation of the Projects and to the payment of taxes, lien claims, insurance premiums, Debt Service, the Funds, and other amounts due under the Loan Documents to the extent the
Loan Documents require such proceeds to be then so applied; (g) Borrower’s interference with Lender’s exercise of rights under the Assignments of Leases and Rents; (h) Borrower’s failure to maintain insurance as required by this
Agreement; (i) damage or destruction to any Project caused by the acts or omissions of Borrower, its agents, employees, or contractors; (j) Borrower’s obligations with respect to environmental matters under Article 4; (k) Borrower’s
failure to pay for any loss, liability or expense (including attorneys’ fees) incurred by Lender arising out of any claim or allegation made by Borrower, its successors or assigns, or any creditor of Borrower, that this Agreement or the
transactions contemplated by the Loan Documents and the Environmental Indemnity Agreement establishes a joint venture, partnership or other similar arrangement between Borrower and Lender; (1) any brokerage commission or finder’s fees claimed
in connection with the transactions contemplated by the Loan Documents; (m) the filing by Borrower or any of its members, partners, or shareholders, or the filing against Borrower, of a petition under the United States Bankruptcy Code or similar
state insolvency laws; (n) uninsured damage to any Project resulting from acts of terrorism; (o) Borrower’s obligations set forth 

  

 LOAN AGREEMENT – Page 32 

 
in Section 6.16 and in the last sentence of Section 8.5 of this Agreement; (p) any termination of the Oakland Ground Lease, regardless of the reason
therefor; (q) in the event of a condemnation of the Oakland Project, Borrower’s failure to receive an Award equal to the value of the improvements and the value of the remaining unexpired term of the Oakland Ground Lease, or (r) in the
event of flood damage to a Project for which Borrower is required to maintain flood insurance, the failure of Borrower’s flood insurance coverage to be sufficient to pay for all costs incurred in repairing or replacing the damaged structures.
Nothing herein shall be deemed to be a waiver of any right which Lender may have under Sections 506(a), 506(b), 111l(b) or any other provision of the United States Bankruptcy Code, to file a claim for the full amount due to Lender under the Loan
Documents or to require that all collateral shall continue to secure the amounts due under the Loan Documents. 
  
 Section 12.2 Limitation on Liability of Lender’s Officers, Employees, Etc. Any obligation or liability whatsoever of Lender which may
arise at any time under this Agreement, any other Loan Document, or the Environmental Indemnity Agreement shall be satisfied, if at all, out of the Lender’s assets only. No such obligation or liability shall be personally binding upon, nor
shall resort for the enforcement thereof be had to, the property of any of Lender’s shareholders, directors, officers, employees or agents, regardless of whether such obligation or liability is in the nature of contract, tort or otherwise.

  
 [Remainder of page intentionally left blank.]

  

 LOAN AGREEMENT – Page 33 

 EXECUTED as of the date first written above. 
  

			
	LENDER:
	
	 GENERAL ELECTRIC CAPITAL CORPORATION,
 a Delaware corporation

		
	By:	 	 
	 	 	 David R. Martindale
 Managing Director

	
	BORROWER:
	
	EXTRA SPACE PROPERTIES THREE LLC,
	a Delaware limited liability company
		
	By:	 	 
	 	 	 Kent W. Christensen
 Manager

  

 LOAN AGREEMENT – Page S-1 

 EXHIBIT A-1 
  
 [LEGAL DESCRIPTION OF FOREST PARK PROJECT] 
  
 THAT CERTAIN LAND SITUATED IN THE STATE OF MISSOURI, CITY OF ST. LOUIS AND DESCRIBED AS FOLLOWS: 
  
 PARCEL 1: 
  
 A LOT IN BLOCK 3917 OF THE CITY OF ST. LOUIS, MISSOURI, BEGINNING AT A POINT IN THE SOUTH
LINE OF FOREST PARK BOULEVARD DISTANT 535 FEET EAST OF THE EAST LINE OF BOYLE AVENUE, THENCE SOUTHWARDLY PARALLEL WITH THE EAST LINE OF BOYLE AVENUE AND ALONG THE EAST LINE OF PROPERTY OF LINDE AIR PRODUCTS COMPANY 176 FEET 1-3/8 INCHES TO A POINT,
THENCE SOUTHEASTWARDLY ALONG A CURVE TO THE LEFT, HAVING A RADIUS OF 232 FEET 6 INCHES TO A POINT IN THE NORTH LINE OF A 16 FOOT RAILROAD RIGHT OF WAY DISTANT 609 FEET EAST OF THE EAST LINE OF BOYLE AVENUE, THENCE EAST ALONG SAID RAILROAD RIGHT OF
WAY 93 FEET 3 INCHES, TO A POINT, THENCE NORTHWEST ALONG A CURVE TO THE RIGHT WITH A RADIUS OF 232 FEET 6 INCHES TO A POINT IN A LINE PARALLEL WITH AND DISTANT 121 FEET 3 INCHES EAST OF THE EAST LINE OF LINDE AIR PRODUCTS COMPANY AND DISTANT 9 FEET
NORTH OF THE NORTH LINE OF SAID RAILROAD RIGHT OF WAY THENCE NORTH PARALLEL WITH THE EAST LINE OF LINDE AIR PRODUCTS COMPANY 184 FEET 4-7/8 INCHES TO THE SOUTH LINE OF FOREST PARK BOULEVARD, THENCE WEST ALONG THE SOUTH LINE OF FOREST PARK BOULEVARD
121 FEET 3 INCHES TO THE PLACE OF BEGINNING. 
  
 PARCEL 2: 
  
 A LOT IN BLOCK 3917 OF THE CITY OF ST. LOUIS, MISSOURI:
STARTING AT A POINT IN THE SOUTH LINE OF FOREST PARK BOULEVARD DISTANT 535 FEET EAST OF THE EAST LINE OF BOYLE AVENUE, THENCE SOUTHWARDLY PARALLEL WITH THE EAST LINE OF BOYLE AVENUE AND ALONG THE EAST LINE OF PROPERTY OF LINDE AIRE PRODUCTS COMPANY,
176 FEET 1-3/8 INCHES TO A POINT; THENCE, SOUTHEASTWARDLY ALONG A CURVE TO THE LEFT, HAVING A RADIUS OF 232 FEET 6 INCHES TO THE POINT OF BEGINNING, AT THE NORTH LINE OF A 16 FOOT WABASH RAILROAD COMPANY RIGHT OF WAY DISTANT 609 FEET EAST OF THE
EAST LINE OF BOYLE AVENUE; THENCE, SOUTHWARDLY PARALLEL WITH SAID BOYLE AVENUE A DISTANCE OF 8.0 FEET TO THE CENTERLINE OF SAID RIGHT OF WAY; THENCE, EASTWARDLY ALONG SAID CENTERLINE A DISTANCE OF 93.25 FEET TO A POINT; THENCE, NORTHWARDLY AND
PARALLEL TO SAID BOYLE AVENUE A DISTANCE OF 8.0 FEET TO THE NORTH LINE OF SAID RIGHT OF WAY; THENCE WESTWARDLY ALONG THE NORTH LINE OF SAID RIGHT OF WAY A DISTANCE OF 93.25 FEET TO THE POINT OF BEGINNING. 
  
 LOCATOR NO.: 3917-00-00700 
  

 EXHIBIT A-l – Page 1 

 PARCEL 3: 
  
 EASEMENT FOR VEHICULAR INGRESS AND EGRESS, FOR THE BENEFIT OF PARCEL NO. 1, AS CREATED AND ESTABLISHED BY EASEMENT AGREEMENT FOR DRIVEWAY,
DATED JUNE 26, 1986 AND RECORDED JULY 3, 1986 IN BOOK M541 PAGE 1252. 
  

 EXHIBIT A-l – Page 2 

 EXHIBIT A-2 
  
 [LEGAL DESCRIPTION OF HALLS FERRY PROJECT] 
  
 THAT CERTAIN LAND SITUATED IN THE STATE OF MISSOURI, COUNTY OF ST. LOUIS AND DESCRIBED AS FOLLOWS: 
  
 PARCEL 1: 
  
 LOTS 2 AND 3 OF THE RESUBDIVISION OF TRACT 2 OF CHARLES ADAMS PLAT NO. 1, ACCORDING TO THE PLAT THEREOF RECORDED IN PLAT BOOK 346 PAGE 34 OF
THE ST. LOUIS COUNTY RECORDS; 
  
 EXCEPTING THEREFROM THAT PART CONVEYED TO ST.
LOUIS COUNTY, MISSOURI FOR WIDENING OF ST. CYR ROAD, ACCORDING TO INSTRUMENT RECORDED IN BOOK 11512 PAGE 1990. 
  
 PARCEL 2: 
  
 LOT IB OF THE RESUBDIVISION
OF LOT 1 OF RESUBDIVISION OF TRACT 2 OF CHARLES ADAMS PLAT NO. 1, ACCORDING TO THE PLAT THEREOF RECORDED IN PLAT BOOK 347 PAGE 527 OF THE ST. LOUIS COUNTY RECORDS. 
  

 EXHIBIT A-2 – Page 1 

 EXHIBIT A-3 
  
 [LEGAL DESCRIPTION OF NORTH OXFORD PROJECT] 
  
 The land in Oxford, Worcester County, Massachusetts, situated on Route 20, and more particularly described in a Deed of Louis Padula dated
February 5, 1982, and recorded at the Worcester District Registry of Deeds in Book 7438, Page 393, and also being a portion of a survey plan by Walter N. Brown dated November 30, 1959; 
  
 EXCEPTION therefrom the following sale out to William F. Musante, by Deed of Patrick L. Blomberg, Jr., dated February 16, 1984, and recorded
at the Worcester District Registry of Deeds in Book 8093, Page 108; 
  
 TRACT I
BEGINNING at the most easterly corner of the tract to be conveyed at an iron pipe driven in the ground on the northwesterly line of Southbridge Street, also being the southerly corner of land now or formerly of Philip Little et ux, and said pipe is
located 789.55 feet southwesterly measured along the northwesterly line of said Street, from the southwesterly corner of land now or formerly of John Peon from said pipe; 
  
 THENCE by land now or formerly of Philip Little et ux N. 51° 30’ W. two hundred thirteen and nine-tenths (213.9) feet to an iron
pipe set in a stone wall; 
  
 THENCE by wall and land now or formerly of Philip
Little et ux, N. 3° 52’ W. 103.2 feet to an iron pipe in the stone wall at land now or formerly of Romeo LaFortune; 
  
 THENCE by land of said LaFortune S. 80° W. 215.5 feet to a stake at the southerly end of a stone wall at the southeasterly corner of land now or formerly of J. Lucien
Arnold; 
  
 THENCE by land of said Arnold S. 80° W. 137.2 feet to a stake at
other land now or formerly of Philip Little et ux; 
  
 THENCE by said land of
Philip Little et ux as follows: S. 17° 30’ W. 107.6 feet to a stake; S. 5° 30’ E. 139.6 feet to a stake; S. 16° 45’ E. 53.2 feet to a stake; S. 58° 52’ E. 134.5 feet to a stake; and S. 52° 52’ E. 202.6
feet to an iron pipe driven in the ground on the northwesterly line of Southbridge Street; 
  
 THENCE by the northwesterly line of Southbridge Street N. 38° 40’ E. 282 feet to a Massachusetts State Highway boundary post; 
  
 THENCE Northeasterly by the northwesterly line of Southbridge Street by a curve to the right whose radius is 1533 feet and length is 119.5
feet to the place of beginning. 
  
 ALSO another tract of land in North Oxford,
Worcester county, Massachusetts, situated on the northwesterly side of Southbridge Street, bounded and described as follows: 
  
 TRACT II – BEGINNING at the most southerly corner of the tract to be conveyed at an iron pipe driven in the ground on the northwesterly line of Southbridge Street
and also being the most easterly corner of land now or formerly of Eugene A. Barton et ux.; 
  
 THENCE by land now or formerly of said Barton, N. 51° 30’ W. 213.9 feet by pipe set in a stone wall; 
  

 EXHIBIT A-3 – Page 1 

 THENCE by wall and by land of said Barton, N. 3° 52’ West, 103.2 feet to an iron pipe set in a corner of walls
at land of Charles J. Burke, Jr., and Elizabeth P. Burke; 
  
 THENCE by land of
said Burkes, North 80° East, 139.2 feet to an iron pipe driven in the ground at land now or formerly of Philip Little et ux; 
  
 THENCE by said land now or formerly of Philip Little, South 41° 48’ E. 210.4 feet to an iron pipe driven in the ground on the northwesterly line of Southbridge
Street; 
  
 THENCE Southwesterly by the northwesterly line of said street by a
curve to the left whose radius is 1533 feet and length of 140.0 feet to the place of beginning. 
  

 EXHIBIT A-3 – Page 2 

 EXHIBIT A-4 
  
 [LEGAL DESCRIPTION OF OAKLAND PROJECT] 
  
 That certain real property located in the City of Oakland, County of Alameda, State of California, more particularly
described as follows: 
  
 PARCEL ONE: 
  
 ALL BUILDINGS AND IMPROVEMENTS COMPLETED ON OR AFTER NOVEMBER 14, 1985 PURSUANT TO THAT
CERTAIN LEASE DATED JULY 6, 1984 MADE BY AND BETWEEN SOUTHERN PACIFIC LAND CO., A CORPORATION, AS LESSOR AND INTEGRATED STORAGE INVESTORS, A LIMITED PARTNERSHIP, AS LESSEE DISCLOSED BY MEMORANDUM OF LEASE RECORDED MAY 15, 1985, SERIES NO. 85-093549,
OFFICIAL RECORDS, SITUATED ON THE FOLLOWING: 
  
 A PIECE OR PARCEL OF LAND
SITUATED IN THE CITY OF OAKLAND, COUNTY OF ALAMEDA, STATE OF CALIFORNIA BEING ALL OF PARCEL “A” OF PARCEL MAP 1220, A RESUBDIVISION OF A PORTION OF THE SOUTHERN PACIFIC TRANSPORTATION COMPANY, FILED AUGUST 8, 1973, IN BOOK 80 OF MAPS AT
PAGE 2, RECORDS OF ALAMEDA COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
  
 COMMENCING AT THE POINT OF INTERSECTION OF THE SOUTHERN LINE OF THE LAND DESCRIBED IN THE DEED FROM J.S. CUNNINGHAM TO STANDARD REALTY AND DEVELOPMENT COMPANY, RECORDED JUNE 19, 1913, IN BOOK 2157 OF DEEDS, PAGE 454, ALAMEDA COUNTY RECORDS
(SAID SOUTHERN LINE BEING ALSO THE NORTHERN LINE OF THE LAND OF THE SOUTHERN PACIFIC TRANSPORTATION COMPANY) WITH THE AGREED LOW TIDE LINE OF 1852 AS ESTABLISHED BY PORT ORDINANCE NO. 53, ADOPTED BY THE BOARD OF PORT COMMISSIONERS OF THE CITY OF
OAKLAND, APRIL 1, 1929, THENCE SOUTH 26° 15’ WEST ALONG SAID AGREED LOW TIDE LINE 257.21 FEET; THENCE NORTH 77° 55’ 40” WEST 263.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG LAST SAID LINE NORTH 77°
55’ 40” WEST 98.45 FEET TO AN ARC OF A CURVE TO THE RIGHT FROM WHICH POINT A RADIAL LINE 8,544 FEET LONG BEARS NORTH 14° 58’ 56” 5” EAST (A PORTION OF SAID CURVE BEING ALSO THE NORTHEASTERN LINE OF FIRST STREET, 100 FEET
WIDE, AS SAME NOW EXISTS); THENCE ALONG SAID CURVE TO THE RIGHT THROUGH A CENTRAL ANGLE OF 2° 02’41”, 304.91 FEET TO THE INTERSECTION THEREOF WITH THE SOUTHEASTERN LINE OF FALLON STREET; THENCE NORTH 26° 15’ EAST ALONG SAID
SOUTHEASTERN LINE OF FALLON STREET 270.19 FEET TO THE INTERSECTION THEREOF WITH THE SOUTHERN LINE OF THAT PARCEL OF LAND DESCRIBED IN THE DEED TO STANDARD REALTY AND DEVELOPMENT COMPANY, HEREIN BEFORE REFERRED TO; THENCE ALONG SAID LAST-NAMED LINE
SOUTH 75° 02’ EAST 336.88 FEET; THENCE SOUTH 12° 04’ 20” WEST 265.86 FEET TO THE POINT OF BEGINNING, AS GRANTED IN A CONVEYANCE FROM INTEGRATED STORAGE INVESTORS, A LIMITED PARTNERSHIP TO ANNIE’S ATTIC II, A CALIFORNIA
GENERAL PARTNERSHIP DATED JUNE 20, 1995, RECORDED JUNE 30, 1995, SERIES NO. 95143850, OFFICIAL RECORDS, WHICH BUILDINGS AND IMPROVEMENTS ARE AND SHALL REMAIN REAL PROPERTY. 
  
 A.P. NO.: 0000-0440-012 
  

 EXHIBIT A-4 – Page 1 

 PARCEL TWO: 
  
 A PIECE OR PARCEL OF LAND SITUATED IN THE CITY OF OAKLAND, COUNTY OF ALAMEDA, STATE OF CALIFORNIA BEING ALL OF PARCEL “A” OF PARCEL MAP 1220, A RESUBDIVISION OF
A PORTION OF THE SOUTHERN PACIFIC TRANSPORTATION COMPANY, FILED AUGUST 8, 1973, IN BOOK 80 OF MAPS AT PAGE 2, RECORDS OF ALAMEDA COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
  
 COMMENCING AT THE POINT OF INTERSECTION OF THE SOUTHERN LINE OF THE LAND DESCRIBED IN THE DEED FROM J.S. CUNNINGHAM TO STANDARD REALTY AND
DEVELOPMENT COMPANY, RECORDED JUNE 19, 1913, IN BOOK 2157 OF DEEDS, PAGE 454, ALAMEDA COUNTY RECORDS (SAID SOUTHERN LINE BEING ALSO THE NORTHERN LINE OF THE LAND OF THE SOUTHERN PACIFIC TRANSPORTATION COMPANY) WITH THE AGREED LOW TIDE LINE OF 1852
AS ESTABLISHED BY PORT ORDINANCE NO. 53, ADOPTED BY THE BOARD OF PORT COMMISSIONERS OF THE CITY OF OAKLAND, APRIL 1, 1929; THENCE SOUTH 26° 15’ WEST ALONG SAID AGREED LOW TIDE LINE 257.21 FEET; THENCE NORTH 77° 55’ 40” WEST
263.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG LAST SAID LINE NORTH 77°55’40” WEST 98.45 FEET TO AN ARC OF A CURVE TO THE RIGHT FROM WHICH POINT A RADIAL LINE 8,500 FEET LONG BEARS NORTH 14° 58’ 56.5”
EAST (A PORTION OF SAID CURVE BEING ALSO THE NORTHEASTERN LINE OF FIRST STREET, 100 FEET WIDE, AS SAME NOW EXISTS); THENCE ALONG SAID CURVE TO THE RIGHT THROUGH A CENTRAL ANGLE OF 2° 02’ 41”, 304.91 FEET TO THE INTERSECTION THEREOF
WITH THE SOUTHEASTERN LINE OF FALLON STREET; THENCE NORTH 26° 15’ EAST ALONG SAID SOUTHEASTERN LINE OF FALLON STREET 270.19 FEET TO THE INTERSECTION THEREOF WITH THE SOUTHERN LINE OF THAT PARCEL OF LAND DESCRIBED IN THE DEED TO STANDARD
REALTY AND DEVELOPMENT COMPANY, HEREIN BEFORE REFERRED TO; THENCE ALONG SAID LAST NAMED LINE SOUTH 75° 02’ EAST 336.88 FEET; THENCE SOUTH 12° 04’ 20” WEST 265.86 FEET TO THE POINT OF BEGINNING. 
  
 EXCEPTING THEREFROM ALL BUILDINGS AND IMPROVEMENTS SITUATED THEREON COMPLETED ON OR AFTER
NOVEMBER 14, 1985 PURSUANT TO THAT CERTAIN LEASE DATED JULY 6, 1984 MADE BY AND BETWEEN SOUTHERN PACIFIC LAND CO., A CORPORATION, AS LESSOR AND INTEGRATED STORAGE INVESTORS, A LIMITED PARTNERSHIP, AS LESSEE DISCLOSED BY MEMORANDUM OF LEASE RECORDED
MAY 15, 1985, SERIES NO. 85-093549, OFFICIAL RECORDS 
  
 A.P. NO. 0000-0440-012

  

 EXHIBIT A-4 – Page 2 

 EXHIBIT A-5 
  
 [LEGAL DESCRIPTION OF BANKSVILLE PROJECT] 
  
 All that certain lot or piece of ground situate in the Twentieth Ward of the City of Pittsburgh, County of Allegheny and Commonwealth of
Pennsylvania, being Parcel A in the Banksville Center Plan of Lots No. 2 of record in the Recorder’s Office of Allegheny County in Plan Book Volume 204, page 64, being bounded and described as follows: 
  
 Beginning at a point on the Southerly right of way line of Crane Avenue and the Northeasterly
corner of now or formerly Germinaro Markouitz; thence from said point of beginning in Southerly direction along the right of way line South 60° 13’18” East a distance of 37.71 feet to a point; thence from said point on a curve to the
right a radius of 170.00 feet, a length of 114.26 feet to a point; thence South 21°42’48” East a distance of 88.63 feet to a point; thence South 05°09’08” East, a distance of 190.73 feet; thence North
89°50’52” East, a distance of 35.00 feet to a point; thence South 03°54’08” East a distance of 274.44 feet to a point; thence North 79°23’53” West a distance of 82.17 feet to a point; thence South
10°13’00” West a distance of 213.68 feet to a point; thence North 83° 12’53” West a distance of 303.78 feet to a point; thence North 02°41’11” West, a distance of 588.32 feet to a point; thence from said
point North 47° 07’ 10” East a distance of 324.82 feet to a point and place of beginning. 
  
 Together with an easement for ingress, egress and regress to and from Crane Avenue over, across and upon East Entry Drive as shown on the Banksville Center Plan of Lots of record in the Recorder’s Office of
Allegheny County in Plan Book Volume 76, pages 129 and 130. 
  
 Together with an
easement for access to and from Crane Avenue over the existing road known as East Entry Drive as reserved in deed from H. Ward Olander et al. to East Entry Associates dated December 1, 1982 and recorded in Deed Book Volume 6575, page 19. 

 
 Being designated as Block 16-N, Lot 1 in the Deed Registry Office of Allegheny County,
Pennsylvania. 
  

 EXHIBIT A-5 – Page 1 

 EXHIBIT A-6 
  
 [LEGAL DESCRIPTION OF KENDALL SUNSET PROJECT] 
  
 Tract A, of NATIONAL SELF STORAGE, according to the plat thereof as recorded in Plat Book 128, Page 64, of the Public Records of Miami
– Dade County, Florida. 
  

 EXHIBIT A-6 – Page 1 

 EXHIBIT A-7 
  
 [LEGAL DESCRIPTION OF FOUNTAINBLEAU PROJECT] 
  
 Tract D, of SECOND ADDITION TO EXPRESSWAY INDUSTRIAL PARK, according to the plat thereof as recorded in Plat Book 118, Page 25, of the
Public Records of Miami – Dade County, Florida. 
  

 EXHIBIT A-7 – Page 1 

 EXHIBIT A-8 
  
 [LEGAL DESCRIPTION OF AAA SENTRY (N. LAUDERDALE) PROJECT] 
  
 All that part of Tract 7 in Block 96 of PALM BEACH FARMS COMPANY PLAT NO. THREE, according to the Plat thereof, as recorded in Plat Book 2,
at Pages 45 through 54, inclusive, of the Public Records of Palm Beach County, Florida, described as follows: 
  
 Beginning at the intersection of the North line of said Tract 7, and the West right-of-way line of Sunshine State Parkway (300 feet right-of-way) thence North 89° 08’ 44” West, along the North line of
said Tract 7, a distance of 352.84 feet to a point 237.78 feet East of (as measured along the North line) of the Northwest corner of said Tract 7; thence South 01° 51’ 16” West a distance of 300 feet; thence North 89° 08’
44” West, along a line 300 feet South of (as measured at right angles) and parallel with the North line of said Tract 7, a distance of 200 feet to a point on the proposed Easterly non-vehicular access right-of-way line of State Road No. 7 (U.S.
#441) and a point on a curve; thence Southerly along said proposed Easterly non-vehicular access right-of-way line and along a curve to the right whose tangent bears South 01° 00’ 09” West; with a radius of 17,288.73 feet and a central
angle of 01° 08’ 55” an arc distance of 95.12 feet to a point; thence South 80° 52’ 24” East, a distance of 225.98 feet to a point on the said West right-of-way line of Sunshine State Parkway; thence North 38°
30’ 33” East along West right-of-way line a distance of 540.09 feet to the Point of Beginning. 
  
 N/K/A as a portion of Tract A, THE CUMMINGS PLAT NO. 1, according to the Plat thereof, recorded in Plat Book 126, Page 35, of the Public Records of Broward County, Florida. 
  

 EXHIBIT A-8 – Page 1 

 EXHIBIT A-9 
  
 [LEGAL DESCRIPTION OF MARGATE PROJECT] 
  
 Lot 6, of Mears Commercial Park, according to the plat thereof as recorded in Plat Book 107, Page 12, of the Public Records of Broward
County, Florida. 
  

 EXHIBIT A-9 – Page 1 

 EXHIBIT A-10 
  
 [LEGAL DESCRIPTION OF AAA CENTURY (INGLEWOOD) PROJECT] 
  
 That certain real property situated in the City of Inglewood and County of Los Angeles, State of California, described as follows:

  
 LOTS 8, 9 AND THE WEST 50 FEET OF LOT 10 OF THE LOCKHAVEN TRACT, IN THE CITY
OF INGLEWOOD, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 17, PAGE 87 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 
  

 EXHIBIT A-10 – Page 1 

 SCHEDULE 1.1 
  
 PROJECT INFORMATION 
  

									
	 Name

	  	Address

	  	City

	  	State

	  	Project Type

	 Forest Park
	  	4210 Forest Park Blvd.	  	St. Louis	  	MO	  	Self Storage
					
	 Halls Ferry
	  	9702 Halls Ferry Road	  	St. Louis	  	MO	  	Self Storage
					
	 North Oxford
	  	103 Southridge Road	  	North Oxford	  	MA	  	Self Storage
					
	 Oakland
	  	210 Fallon Street	  	Oakland	  	CA	  	Self Storage
					
	 Banksville
	  	1005 East Entry Drive	  	Pittsburgh	  	PA	  	Self Storage
					
	 Kendall Sunset
	  	8890 SW 72nd Street	  	Miami	  	FL	  	Self Storage
					
	 Fountainbleau
	  	8900 NW 12th Street	  	Miami	  	FL	  	Self Storage
					
	 AAA Sentry (N. Lauderdale)
	  	2048 S. State Road 7	  	N. Lauderdale	  	FL	  	Self Storage
					
	 Margate
	  	1880 N. State Road 7	  	Margate	  	FL	  	Self Storage
					
	 AAA Century (Inglewood)
	  	3846 W. Century Blvd.	  	Inglewood	  	CA	  	Self Storage

  

 SCHEDULE 1.1 – Page 1 

 SCHEDULE I 
  
 DEFEASANCE 
  
 1. In accordance with Section 2.3 of the Loan Agreement, Borrower may obtain the release of all, but not less than all, of the Projects from the lien of
the Mortgages upon the satisfaction of the following conditions precedent: 
  
 (a) not less than thirty (30) days prior written notice to Lender specifying a regularly scheduled payment date (the “Release Date”) on which the Defeasance Deposit (hereinafter defined) is to
be made; 
  
 (b) the payment to Lender of
interest accrued and unpaid on the principal balance of the Note to and including the Release Date; 
  
 (c) the payment to Lender of all other sums, not including scheduled interest or principal payments, due under the Note, the Mortgages,
the Assignments of Leases and Rents, and the other Loan Documents; 
  
 (d) the payment to Lender of the Defeasance Deposit and a $5,000 non-refundable processing fee; 
  
 (e) the delivery to Lender of: 
  

	 	(i)	a security agreement in form and substance satisfactory to Lender, creating a first priority lien on the Defeasance Deposit and the U.S. Obligations (hereinafter defined) purchased
on behalf of Borrower with the Defeasance Deposit in accordance with this Schedule I (the “Security Agreement”); 

  

	 	(ii)	a release of each Project from the lien of the Mortgage encumbering such Project (for execution by Lender) in a form appropriate for the jurisdiction in which such Project is
located; 

  

	 	(iii)	an officer’s certificate of Borrower certifying that the requirements set forth in this subparagraph (e) have been satisfied; 

  

	 	(iv)	an opinion of counsel in form and substance, and rendered by counsel satisfactory to Lender at the expense of Borrower, stating, among other things, that Lender has a perfected
first priority security interest in the Defeasance Deposit and the U.S. Obligations purchased by or on behalf of Borrower and pledged to Lender and as to enforceability of the Security Agreement and other documents delivered in connection therewith;

  

	 	(v)	 if required by the Rating Agencies and/or pooling and servicing agreement relating to the Secondary Market Transaction, evidence in writing from the applicable
Rating Agencies to the effect that such release will not result in a qualification, downgrade or withdrawal of any 

  

 SCHEDULE I – Page 1 

	 	 
rating in effect immediately prior to such defeasance for any securities issued in connection with a Secondary Market Transaction; and

  

	 	(vi)	such other certificates, documents or instruments as Lender may reasonably request. 

  
 (f) if the Loan has been sold in a Secondary Market Transaction, Lender shall have received an opinion of
counsel acceptable to Lender in form satisfactory to Lender stating, among other things, that the substitution of collateral shall not cause the holder of the Loan to fail to maintain its status as a real estate mortgage investment conduit (REMIC);
and 
  
 (g) Lender shall have received a
certificate from a nationally recognized independent certified public accountant acceptable to Lender, in form and substance satisfactory to Lender, certifying that the U.S. Obligations purchased with the Defeasance Deposit will generate sufficient
sums to satisfy the obligations of Borrower under the Note and this Schedule I as and when such obligations become due. 
  
 In connection with the conditions set forth above, Borrower hereby appoints Lender as its agent and attorney-in-fact for the purpose of using the Defeasance Deposit to
purchase or cause to be purchased U.S. Obligations which provide payments on or prior to, but as close as possible to, all successive scheduled payment dates after the Release Date upon which interest and principal payments are required under the
Note (including the amounts due on the Maturity Date) and in amounts equal to the scheduled payments due on such dates under the Note plus Lender’s estimate of administrative expenses and applicable federal income taxes associated with or to be
incurred by the Successor Borrower during the remaining term of, and applicable to, the Loan (the “Scheduled Defeasance Payments”). Borrower, pursuant to the Security Agreement or other appropriate document, shall authorize
and direct that the payments received from the U.S. Obligations may be made directly to Lender and applied to satisfy the obligations of Borrower under the Note and this Schedule I. 
  
 2. Upon compliance with the requirements of this Schedule I, each Project shall be released from the lien of the Mortgage
encumbering such Project and the pledged U.S. Obligations shall be the sole source of collateral securing the Note. Any portion of the Defeasance Deposit in excess of the amount necessary to purchase the U.S. Obligations required by the preceding
paragraph and to otherwise satisfy the Borrower’s obligations under this Schedule I shall be remitted to Borrower with the release of the Projects from the lien of the Mortgages. In connection with such release, a successor entity meeting
Lender’s Single Purpose Entity criteria, adjusted, as applicable, for the Defeasance contemplated by this Schedule (the “Successor Borrowed”) shall be established by Borrower subject to Lender’s approval (or at
Lender’s option, by Lender) and Borrower shall transfer and assign all obligations, rights and duties under and to the Note together with the pledged U.S. Obligations to such Successor Borrower pursuant to an assignment and assumption agreement
in form and substance satisfactory to Lender (the “Assignment Agreement”). Such Successor Borrower shall assume the obligations under the Note and the Security Agreement and Borrower shall be relieved of its obligations
thereunder, except that Borrower shall be required to perform its obligations pursuant to this Schedule I, including maintenance of the Successor Borrower, if applicable. Borrower shall pay $1,000.00 to any such Successor Borrower as consideration
for assuming the obligations under the Note and the Security Agreement pursuant to the Assignment Agreement. Notwithstanding anything in the Mortgages to the contrary, no other assumption fee shall be payable upon a transfer of the Note in
accordance with this paragraph, but Borrower shall pay all costs and expenses incurred by Lender in connection with this Schedule, including Lender’s reasonable attorneys’ fees and expenses, costs and expenses in obtaining review and
confirmation by the applicable Rating Agencies as required herein, and any administrative and tax expenses associated with or incurred by the Successor Borrower. 
  

 SCHEDULE I – Page 2 

 3. For purposes of this Schedule I, the following terms shall have the following meanings: 
  
 (a) The term “Defeasance Deposit”
shall mean an amount equal to the Yield Maintenance Amount, any costs and expenses incurred or to be incurred in the purchase of U.S. Obligations necessary to meet the Scheduled Defeasance Payments (including Lender’s estimate of administrative
expenses and applicable federal income taxes associated with or to be incurred by the Successor Borrower during the remaining term of, and applicable to, the Loan) and any revenue, documentary stamp or intangible taxes or any other tax or charge due
in connection with the transfer of the Note or otherwise required to accomplish the agreements of this Schedule I. 
  
 (b) The term “Yield Maintenance Amount” shall mean the amount which will be sufficient to purchase U.S.
Obligations providing the required Schedule Defeasance Payments; and 
  
 (c) The term “U.S. Obligations” shall mean “Government Securities” as defined in the REMIC regulations, specifically, Treasury Regulation § 1.860G-2(a)(8)(i). 
  

 SCHEDULE I – Page 3 

 SCHEDULE II 
  
 REQUIRED REPAIRS 
  

				
	 AAA Century (Inglewood) Project:
	  	 	 
		
	 Trim trees and bushes/shrubs away from buildings A and D
	  	$	3,000
		
	 Replace roof coverings on all buildings
	  	$	42,500
		
	 Replace dry rot damaged wood siding at building A and on the balcony railing at the manager’s apartment
	  	$	1,000
		
	 Repair the chipped and worn paint on plywood sheathing at the second floor corridors and replace damaged plywood sheathing near storage units
192/193
	  	$	3,000
		
	 Repair damage to storage units and common areas caused by roof leaks including replacement of mold and moisture damaged drywall ceilings and
walls, and plywood sheathing floors at the storage buildings. Lender’s consultant (Project Resource) shall oversee the work and provide final inspection/signoff.
	  	$	7,500
		
	 Install seismic straps on the water heater at the leasing office/manager’s apartment
	  	 	 
		
	 Replace Hotpoint brand dishwasher at manager’s apartment
	  	 	 
		
	 Replace damaged illuminated sign and repair all unlit illuminated signs at building C
	  	 	 
		
	 Perform corrective compliance actions for the elevators and the elevator equipment rooms and obtain current inspection
certificates
	  	$	4,500
		
	 ADA compliance (i.e., provide ADA-compliant van accessible parking space with proper pole signage, install piping insulation beneath the
restroom sinks and provide an ADA-compliant sink handle in the common area restroom)
	  	 	 
		
	 Total
	  	$	61,500
		
	 Oakland Project:
	  	 	 
		
	 Repair roof (i.e., repair damaged roof mounted light supports, apply waterproof coating, repair roof leak at section 1000 near storage unit
1051 and replace moisture damaged plywood sheathing near storage unit 1051 and 6099)
	  	$	2,600
		
	 Replace flood damaged carpet in the leasing office
	  	$	675
		
	 Remove mold in storage unit 1051
	  	 	 

  

 SCHEDULE II – Page 1 

				
		
	 Properly strap the water heater in the leasing office
	  	 	 
		
	 Obtain and display a current inspection certificate/permit for elevators
	  	 	 
		
	 Repair hole in the overhead steel roll up door in the elevator in section 6000
	  	$	1,000
		
	 ADA Compliance (i.e., install one ADA van accessible parking space with proper signage, install lever door hardware at the public restroom and
a bar type handle at the leasing office entry door, install ADA restroom signage on doors and install piping insulation beneath the restroom sinks)
	  	$	500
		
	 Total
	  	$	4,775
		
	 Fountainbleau Project:
	  	 	 
		
	 Trim trees from buildings A and C
	  	$	1,000
		
	 Remove and replace dry rot damaged wood fascias
	  	$	1,000
		
	 Remove and replace water damaged drywall ceiling at second floor areas near a/c vents
	  	$	3,000
		
	 Repair or replace damaged illuminated exit signs in building B
	  	 	 
		
	 Obtain and display a current inspection certificate/permit for elevators
	  	 	 
		
	 ADA compliance (i.e., install wall mounted sink with disabled accessible hardware and install piping insulation beneath the sinks in the
leasing office)
	  	$	500
		
	 Total
	  	$	5,500
		
	 Kendall Sunset Project:
	  	 	 
		
	 Regrade soil eroded areas along building A, install erosion protection matting, and install splash blocks or extend roof
downspouts
	  	$	1,200
		
	 ADA compliance (i.e., install wall mounted sink with disabled accessible hardware and install piping insulation beneath the sinks in two
restrooms)
	  	$	500
		
	 Total
	  	$	1,700
		
	 Margate Project:
	  	 	 
		
	 Repair or replace the roof ridge trim, drainage gutters and/or downspouts on buildings E, F & G
	  	$	1,000
		
	 ADA compliance (i.e., install lever door and sink hardware at the public restrooms, install ADA restroom signage on doors and install piping
insulation beneath the restroom sinks)
	  	$	500
		
	 Total
	  	$	1,500

  

 SCHEDULE II – Page 2 

				
		
	 AAA Sentry (N. Lauderdale) Proiect:
	  	 	 
		
	 Trim trees from buildings E and D
	  	$	2,000
		
	 Repair damaged EPDM roof coverings at building E
	  	$	1,500
		
	 Repair or replace damaged illuminated exit signs in buildings A and B
	  	 	 
		
	 ADA compliance (i.e., install wall mounted sink with disabled accessible hardware and install piping insulation beneath the sinks in the
leasing office public restroom)
	  	$	500
		
	 Total
	  	$	4,000
		
	 North Oxford Proiect:
	  	 	 
		
	 Connect project to municipal water supply and cut-off all access to the water currently supplied by the existing water well located at the
project
	  	$	6,800
		
	 Permanently cap water well located at the project in accordance with applicable laws
	  	$	2,250
		
	 Repair retaining wall and install landscaping edging
	  	$	1,200
		
	 Install protective pipe bollard at building N
	  	$	500
		
	 Repair damaged light fixtures at buildings H, J, D, E & F
	  	$	500
		
	 Repair damaged metal roof edges at buildings N, E & F
	  	$	1,500
		
	 ADA compliance (i.e., install an ADA accessible parking space at the leasing office)
	  	 	 
		
	 Total
	  	$	12,750
		
	 Forest Park Proiect:
	  	 	 
		
	 Repair reinforced concrete floor beam in the basement
	  	$	1,500
		
	 Inspect electrical system
	  	$	1,500
		
	 Inspect elevator
	  	 	 
		
	 ADA compliance (i.e., install building or pole mounted signage for two parking stalls and restripe one stall as van
accessible)
	  	 	 
		
	 Total
	  	$	3,000
		
	 Halls Ferry Proiect:
	  	 	 
		
	 Repair asphalt pavement crack routing and sealing
	  	$	8,000
		
	 Repair roofs throughout property
	  	$	1,000

  

 SCHEDULE II – Page 3 

				
	 ADA compliance (i.e., install one ADA van accessible parking space with proper signage at leasing office, install lever or push door hardware
at the public restroom, and install international signage at public restroom)
	  	 	 
	 Total
	  	$	9,000
		
	 Banksville Project:
	  	 	 
		
	 Repair damaged metal roof edges on various storage buildings
	  	$	1,500
		
	 ADA compliance (i.e., install an ADA accessible parking space at the leasing office)
	  	 	 
		
	 Total
	  	$	1,500
		
	 TOTAL (ALL PROJECTS)
	  	$	105,225
	 	  	
	

		
	 125%
	  	$	131,531
	 	  	
	

  

 SCHEDULE II – Page 4Loan Agreement, dated March 8, 2004 with General Electric

 Exhibit 10.5 
  
 Loan No. 76-0031382 
  

  
 GENERAL ELECTRIC CAPITAL
CORPORATION 
 (Lender) 
  
 to 
  
 EXTRA SPACE OF NEW JERSEY, L.L.C. 
 (Borrower) 
  

  
 LOAN AGREEMENT 
  

  
 Dated as of: March 8, 2004 
  
 Location of Properties: New Jersey 
  
 DOCUMENT PREPARED BY: 
  
 Sheppard, Mullin, Richter & Hampton LLP 
 650 Town Center Drive, 4th Floor 
 Costa Mesa,
California 92626-1925 
  
 Attention: Steven W. Cardoza, Esquire

  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1 CERTAIN DEFINITIONS
	  	1
	 Section 1.1
	  	Certain Definitions	  	1
		
	 ARTICLE 2 LOAN TERMS
	  	4
	 Section 2.1
	  	The Loan	  	4
	 Section 2.2
	  	Interest Rate; Late Charge	  	4
	 Section 2.3
	  	Terms of Payment	  	4
	 Section 2.4
	  	Security	  	5
		
	 ARTICLE 3 INSURANCE, CONDEMNATION, AND IMPOUNDS
	  	6
	 Section 3.1
	  	Insurance	  	6
	 Section 3.2
	  	Use and Application of Insurance Proceeds	  	7
	 Section 3.3
	  	Condemnation Awards	  	8
	 Section 3.4
	  	Impounds	  	8
		
	 ARTICLE 4 ENVIRONMENTAL MATTERS
	  	9
	 Section 4.1
	  	Certain Definitions	  	9
	 Section 4.2
	  	Representations and Warranties on Environmental Matters	  	9
	 Section 4.3
	  	Covenants on Environmental Matters	  	10
	 Section 4.4
	  	Allocation of Risks and Indemnity	  	11
	 Section 4.5
	  	No Waiver	  	12
	 Section 4.6
	  	Lender Cure Rights	  	12
		
	 ARTICLE 5 LEASING MATTERS
	  	12
	 Section 5.1
	  	Representations and Warranties on Leases	  	12
	 Section 5.2
	  	Standard Lease Form; Approval Rights	  	13
	 Section 5.3
	  	Covenants	  	13
	 Section 5.4
	  	Tenant Estoppels	  	13
		
	 ARTICLE 6 REPRESENTATIONS AND WARRANTIES
	  	13
	 Section 6.1
	  	Organization, Power and Authority	  	13
	 Section 6.2
	  	Validity of Loan Documents	  	14
	 Section 6.3
	  	Liabilities; Litigation	  	14
	 Section 6.4
	  	Taxes and Assessments. Each	  	14
	 Section 6.5
	  	Other Agreements; Defaults	  	14
	 Section 6.6
	  	Compliance with Law	  	14
	 Section 6.7
	  	Location of Borrower	  	15
	 Section 6.8
	  	ERISA	  	15
	 Section 6.9
	  	Forfeiture	  	15
	 Section 6.10
	  	Tax Filings	  	15
	 Section 6.11
	  	Solvency	  	15
	 Section 6.12
	  	Full and Accurate Disclosure	  	16
	 Section 6.13
	  	Flood Zone	  	16
	 Section 6.14
	  	Single Purpose Entity/Separateness	  	16
	 Section 6.15
	  	Compliance with Anti-Terrorism Orders	  	18

  

 TABLE OF CONTENTS – Page i 

					
	 ARTICLE 7 FINANCIAL REPORTING
	  	19
	 Section 7.1
	  	Financial Statements	  	19
	 Section 7.2
	  	Accounting Principles	  	20
	 Section 7.3
	  	Other Information; Access	  	20
	 Section 7.4
	  	Annual Budget	  	20
		
	 ARTICLE 8 COVENANTS
	  	20
	 Section 8.1
	  	Due On Sale and Encumbrance; Transfers of Interests	  	20
	 Section 8.2
	  	Taxes; Utility Charges	  	20
	 Section 8.3
	  	Control; Management	  	20
	 Section 8.4
	  	Operation; Maintenance; Inspection	  	21
	 Section 8.5
	  	Taxes on Security	  	21
	 Section 8.6
	  	Legal Existence; Name, Etc.	  	21
	 Section 8.7
	  	Further Assurances	  	21
	 Section 8.8
	  	Estoppel Certificates	  	22
	 Section 8.9
	  	Notice of Certain Events	  	22
	 Section 8.10
	  	Indemnification	  	22
	 Section 8.11
	  	Cooperation	  	22
	 Section 8.12
	  	Payment For Labor and Materials	  	23
		
	 ARTICLE 9 EVENTS OF DEFAULT
	  	23
	 Section 9.1
	  	Payments	  	23
	 Section 9.2
	  	Insurance	  	23
	 Section 9.3
	  	Sale Encumbrance, Etc.	  	23
	 Section 9.4
	  	Covenants	  	23
	 Section 9.5
	  	Representations and Warranties	  	24
	 Section 9.6
	  	Other Encumbrances	  	24
	 Section 9.7
	  	Involuntary Bankruptcy or Other Proceeding	  	24
	 Section 9.8
	  	Voluntary Petitions, Etc.	  	24
	 Section 9.9
	  	Anti-Terrorism	  	24
		
	 ARTICLE 10 REMEDIES
	  	24
	 Section 10.1
	  	Remedies - Insolvency Events	  	24
	 Section 10.2
	  	Remedies - Other Events	  	24
	 Section 10.3
	  	Lender’s Right to Perform the Obligations	  	25
		
	 ARTICLE 11 MISCELLANEOUS
	  	25
	 Section 11.1
	  	Notices	  	25
	 Section 11.2
	  	Amendments and Waivers	  	26
	 Section 11.3
	  	Limitation on Interest	  	26
	 Section 11.4
	  	Invalid Provisions	  	27
	 Section 11.5
	  	Reimbursement of Expenses	  	27
	 Section 11.6
	  	Approvals; Third Parties; Conditions	  	27
	 Section 11.7
	  	Lender Not in Control; No Partnership	  	27
	 Section 11.8
	  	Contest of Certain Claims	  	28
	 Section 11.9
	  	Time of the Essence	  	28
	 Section 11.10
	  	Successors and Assigns	  	28
	 Section 11.11
	  	Renewal Extension or Rearrangement	  	28
	 Section 11.12
	  	Waivers	  	28
	 Section 11.13
	  	Cumulative Rights; Joint and Several Liability	  	28
	 Section 11.14
	  	Singular and Plural	  	29

  

 TABLE OF CONTENTS – Page ii 

					
	 Section 11.15
	  	Phrases	  	29
	 Section 11.16
	  	Exhibits and Schedules	  	29
	 Section 11.17
	  	Titles of Articles, Sections and Subsections	  	29
	 Section 11.18
	  	Promotional Material	  	29
	 Section 11.19
	  	Survival	  	29
	 Section 11.20
	  	Waiver of Jury Trial	  	29
	 Section 11.21
	  	Waiver of Punitive or Consequential Damages	  	30
	 Section 11.22
	  	Governing Law	  	30
	 Section 11.23
	  	Entire Agreement	  	30
	 Section 11.24
	  	Counterparts	  	30
		
	 ARTICLE 12 LIMITATIONS ON LIABILITY
	  	30
	 Section 12.1
	  	Limitation on Liability	  	30
	 Section 12.2
	  	Limitation on Liability of Lender’s Officers, Employees, Etc.	  	31

  
 LIST OF EXHIBITS
AND SCHEDULES 
  

							
	 EXHIBIT A-l
	 	 -
	 	LEGAL DESCRIPTION OF EDISON PROJECT
			
	 EXHIBIT A-2
	 	 -
	 	LEGAL DESCRIPTION OF HARBOR PROJECT
			
	 EXHIBIT A-3
	 	 -
	 	LEGAL DESCRIPTION OF HOWELL PROJECT
			
	 EXHIBIT A-4
	 	 -
	 	LEGAL DESCRIPTION OF OLD BRIDGE PROJECT
			
	 EXHIBIT A-5
	 	 -
	 	LEGAL DESCRIPTION OF WOODBRIDGE PROJECT
			
	 SCHEDULED 1.1
	 	 -
	 	PROJECT INFORMATION
			
	 SCHEDULE I
	 	 -
	 	DEFEASANCE
			
	 SCHEDULE II
	 	 -
	 	REQUIRED REPAIRS

  

 TABLE OF CONTENTS – Page iii 

 LOAN AGREEMENT 
  
 This Loan Agreement (this “Agreement”) is entered into as of March 8, 2004 between GENERAL
ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“Lender”), and EXTRA SPACE OF NEW JERSEY, L.L.C., a New Jersey limited liability company, whose organization number is 0600129572
(“Borrower”). 
  
 ARTICLE 1

  
 CERTAIN DEFINITIONS 
  
 Section 1.1 Certain Definitions. As used herein, the following
terms have the meanings indicated: 
  
 “Affiliate” means (a) any corporation in which Borrower or any partner, shareholder, director, officer, member, or manager of Borrower directly or indirectly owns or controls more than ten percent (10%) of the
beneficial interest, (b) any partnership, joint venture or limited liability company in which Borrower or any partner, shareholder, director, officer, member, or manager of Borrower is a partner, joint venturer or member, (c) any trust in which
Borrower or any partner, shareholder, director, officer, member or manager of Borrower is a trustee or beneficiary, (d) any entity of any type which is directly or indirectly owned or controlled by Borrower or any partner, shareholder, director,
officer, member or manager of Borrower, (e) any partner, shareholder, director, officer, member, manager or employee of Borrower, (f) any Person related by birth, adoption or marriage to any partner, shareholder, director, officer, member, manager,
or employee of Borrower, or (g) any Borrower Party. 
  
 “Agreement” means this Loan Agreement, as amended from time to time. 
  
 “Assignment of Leases and Rents” means each Assignment of Leases and Rents, executed by Borrower for the benefit of Lender, and
pertaining to leases of space in a Project. 
  
 “Award” has the meaning assigned in Section 3.3. 
  
 “Bankruptcy Party” has the meaning assigned in Section 9.7. 
  
 “Borrower Party” means any Joinder Party, any manager or managing member of Borrower, and any manager or managing member in any
limited liability company that is a manager or managing member of Borrower, at any level. 
  
 “Business Day” means a day other than a Saturday, a Sunday, or a legal holiday on which national banks located in the State of New York are not open for general banking business.

  
 “Casualty” has the meaning assigned in
Section 3.2. 
  
 “Closing Date” means the
date the Loan is funded by Lender. 
  
 “Condemnation” has the meaning assigned in Section 3.3. 
  
 “Contract Rate” has the meaning assigned in Section 2.2. 
  

 LOAN AGREEMENT – Page 1 

 “Debt” means, for any Person, without duplication: (a) all indebtedness of such
Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable, (b) all unfunded amounts under a loan agreement, letter of credit, or other credit
facility for which such Person would be liable, if such amounts were advanced under the credit facility, (c) all amounts required to be paid by such Person as a guaranteed payment to partners or a preferred or special dividend, including any
mandatory redemption of shares or interests, (d) all indebtedness guaranteed by such Person, directly or indirectly, (e) all obligations under leases that constitute capital leases for which such Person is liable, and (f) all obligations of such
Person under swaps, caps, floors, collars and other hedge agreements, in each case whether such Person is liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a
creditor against loss. 
  
 “Debt Service”
means the aggregate interest, fixed principal, and other payments due under the Loan, and on any other outstanding permitted Debt relating to the Projects approved by Lender for the period of time for which calculated. 
  
 “Default Rate” means the lesser of (a) the maximum
rate of interest allowed by applicable law, and (b) five percent (5%) per annum in excess of the Contract Rate. 
  
 “Defeasance Option” has the meaning assigned in Section 2.3(c). 
  
 “Environmental Laws” has the meaning assigned in Section 4.1 (a). 
  
 “ERISA” has the meaning assigned in Section 6.8.

  
 “Event of Default” has the meaning
assigned in Article 9. 
  
 “Funds” means
the Required Repair Fund and the Replacement Escrow Fund. 
  
 “Hazardous Materials” has the meaning assigned in Section 4.1(b). 
  
 “Independent Director” has the meaning assigned in Section 6.14(p). 
  
 “Insurance Premiums” has the meaning assigned in Section 3.1(c). 
  
 “Joinder Party” means the Persons, if any, executing
the Joinder hereto. 
  
 “Lien” means, as
to any Project, any interest, or claim thereof, in the Project securing an obligation owed to, or a claim by, any Person other than the owner of the Project, whether such interest is based on common law, statute or contract, including the lien or
security interest arising from a deed of trust, mortgage, assignment, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. The term “Lien” shall include
reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances affecting a Project. 
  
 “Loan” means the loan made by Lender to Borrower under this Agreement and all other amounts secured
by the Loan Documents. 
  
 “Loan
Documents” means: (a) this Agreement, (b) the Note, (c) the Mortgages, (d) the Assignments of Leases and Rents, (e) Uniform Commercial Code financing statements, (f) such assignments of management agreements, contracts and other rights
as may be required or otherwise 

  

 LOAN AGREEMENT – Page 2 

 
requested by Lender, (g) all other documents evidencing, securing, governing or otherwise pertaining to the Loan, and (h) all amendments, modifications,
renewals, substitutions and replacements of any of the foregoing; provided however, in no event shall the term “Loan Documents” include that certain Hazardous Materials Indemnity Agreement (the “Environmental Indemnity
Agreement”) dated the date hereof in favor of Lender. 
  
 “Loan Year” means (a) for the first Loan Year, the period between the Closing Date and one calendar year from the last day of the month in which the Closing Date occurs (unless the Closing Date is on the first day of
a month, in which case the first Loan Year shall commence on such Closing Date and end one calendar year from the last day of the month immediately preceding the Closing Date) and (b) each consecutive twelve month calendar period after the first
Loan Year until the Maturity Date. 
  
 “Maturity
Date” means, as applicable, the earlier of (a) April 1, 2009, or (b) any earlier date on which the entire Loan is required to be paid in full, by acceleration or otherwise, under this Agreement or any of the other Loan Documents.

  
 “Mortgage” means each Mortgage,
Assignment of Leases and Rents, Security Agreement and Fixture Filing, executed by Borrower in favor of Lender, covering a Project. 
  
 “Note” means the Promissory Note of even date, in the stated principal amount of $27,010,000.00, executed by Borrower, and payable
to the order of Lender in evidence of the Loan. 
  
 “Person” means any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited liability company, unincorporated organization, real estate investment trust,
government or any agency or political subdivision thereof, or any other form of entity. 
  
 “Potential Default” means the occurrence of any event or condition which, with the giving of notice, the passage of time, or both, would constitute an Event of Default. 
  
 “Project” means each of the self-storage facilities
identified in Schedule 1.1 and all related facilities, amenities, fixtures, and personal property owned by Borrower and any improvements now or hereafter located on the real property on which such
self-storage facility is located, described in Exhibits A-1 through
A5. 
  
 “Rating
Agencies” means each of Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc., Moody’s Investors Service, Inc. and Fitch, Inc., or any other nationally-recognized statistical rating agency which has been
approved by Lender. 
  
 “Replacement Escrow
Fund” has the meaning assigned in Section 2.4. 
  
 “Required Repair Fund” has the meaning assigned in Section 2.4. 
  
 “Secondary Market Transaction” has the meaning assigned in Section 8.11. 
  
 “Single Purpose Entity” shall mean a Person (other
than an individual, a government or any agency or political subdivision thereof), which exists solely for the purpose of owning the Projects, observes corporate, company or partnership formalities, as applicable, independent of any other entity, and
which otherwise complies with the covenants set forth in Section 6.14 hereof. 
  
 “Site Assessment” means an environmental engineering report for each Project prepared at Borrower’s expense by an engineer engaged by Borrower, or Lender on behalf of Borrower, and
approved 

  

 LOAN AGREEMENT – Page 3 

 
by Lender, and in a manner reasonably satisfactory to Lender, based upon an investigation relating to and making appropriate inquiries concerning the
existence of Hazardous Materials on or about such Project, and the past or present discharge, disposal, release or escape of any such substances, all consistent with ASTM Standard El527-93 (or any successor thereto published by ASTM) and good
customary and commercial practice. 
  
 “SPC
Party” has the meaning assigned in Section 6.14(o). 
  
 “State” means the State of New Jersey. 
  
 “Tax and Insurance Escrow Fund” has the meaning assigned in Section 3.4. 
  
 “Taxes” has the meaning assigned in Section 8.2. 
  
 “Yield Maintenance Amount” has the meaning assigned in Schedule
I. 
  
 ARTICLE 2  
  
 LOAN TERMS 
  
 Section 2.1 The Loan. Upon satisfaction of all the terms
and conditions of Lender to making the Loan, Lender agrees to make a Loan of TWENTY-SEVEN MILLION TEN THOUSAND AND NO/100 DOLLARS ($27,010,000.00) to the Borrower, which shall be funded in one advance and repaid in accordance with the terms of this
Agreement and the Note. Borrower hereby agrees to accept the Loan on the Closing Date, subject to and upon the terms and conditions set forth herein. 
  
 Section 2.2 Interest Rate; Late Charge. The outstanding principal balance of the Loan shall bear interest at a rate of interest equal
to four and seven-tenths percent (4.70%) per annum (the “Contract Rate”). Interest at the Contract Rate shall be computed on the basis of a fraction, the denominator of which is three hundred sixty (360) days and the
numerator of which is the actual number of days elapsed from the date of the initial disbursement under the Loan or the date of the preceding interest installment due date, as the case may be, to the date of the next interest installment due date or
the Maturity Date. If Borrower fails to pay any installment of interest or principal within five (5) days of (and including) the date on which the same is due, Borrower shall pay to Lender a late charge on such past-due amount, as liquidated damages
and not as a penalty, equal to five percent (5%) of such amount, but not in excess of the maximum amount of interest allowed by applicable law. While any Event of Default exists, the Loan shall bear interest at the Default Rate. 
  
 Section 2.3 Terms of Payment. The Loan shall be payable
as follows: 
  
 (a) Interest and
Principal. A payment of interest only on the Closing Date for the period from the Closing Date through the last day of the current month. Thereafter, a constant payment of $153,212.95, on the first day of May, 2004 and on the first day of
each calendar month thereafter; each of such payments, to be applied (i) to the payment of interest computed at the Contract Rate and (ii) the balance applied toward reduction of the principal sum. The constant payment required hereunder is
calculated based on a twenty-five (25) year amortization schedule. 
  
 (b) Maturity. On the Maturity Date, Borrower shall pay to Lender all outstanding principal, accrued and unpaid interest, default interest, late charges and any and all other amounts due under the Loan
Documents. 
  

 LOAN AGREEMENT – Page 4 

 (c) Prepayment. Except as set forth herein, the Loan is closed to
prepayment in whole or in part. Notwithstanding the foregoing, (i) the Loan may be prepaid in whole, but not in part, on or after the scheduled monthly payment date for the fifty-eighth (58th) payment of principal and interest, and (ii) from the
earlier to occur of (x) two (2) years after the sale of the Loan in a Secondary Market Transaction or (y) the fourth (4th) anniversary of the Closing Date, provided no Event of Default exists, Borrower may obtain the release of the Projects from the
lien of the Mortgages in accordance with the terms and provisions of Schedule I attached hereto (the “Defeasance Option”). 
  
 If the Loan is accelerated for any reason other than casualty or condemnation, and the Loan is otherwise closed to
prepayment, Borrower shall pay, in addition to all other amounts outstanding under the Loan Documents, a prepayment premium equal to the sum of (i) the Yield Maintenance Amount, if any, that would be required under the Defeasance Option and (ii)
five percent (5%) of the outstanding balance of the Loan. If for any reason the Loan is prepaid on a day other than a scheduled monthly payment date, the Borrower shall pay, in addition to the principal, interest and premium, if any, required under
this Section, an amount equal to the interest that would have accrued on the Loan from the date of prepayment to the next scheduled monthly payment date. In the event of a prepayment resulting from Lender’s application of insurance or
condemnation proceeds pursuant to Article 3 hereof, no prepayment penalty or premium shall be imposed. 
  
 Section 2.4 Security. 
  
 (a) Establishment of Funds. The Loan shall be secured by the Mortgages creating a first lien on each Project, the
Assignments of Leases and Rents and the other Loan Documents. Borrower agrees to establish the following reserves with Lender, to be held by Lender as further security for the Loan: (i) on the Closing Date, Borrower shall deposit with Lender the
amount of $24,894.00 (the “Required Repair Fund”) which shall be held by Lender for the completion of the required repairs set forth on Schedule II annexed hereto on or before six months
from the Closing Date; and (ii) Borrower shall deposit with Lender on the day of each calendar month a scheduled payment is due the amount of $5,221.75 which shall be held by Lender for replacements and repairs required to be made to the Projects
during the calendar year (the “Replacement Escrow Fund”). 
  
 (b) Pledge and Disbursement of Funds. Borrower hereby pledges to Lender, and grants a security interest in, any and all
monies now or hereafter deposited in the Funds as additional security for the payment of the Loan. Lender may reasonably reassess its estimate of the amount necessary for the Funds from time to time and may adjust the monthly amounts required to be
deposited into the Funds upon thirty (30) days notice to Borrower. Lender shall make disbursements from the Funds as requested by Borrower, and approved by Lender in its reasonable discretion, on a quarterly basis in increments of no less than
$5,000.00 upon delivery by Borrower of Lender’s standard form of draw request accompanied by copies of paid invoices for the amounts requested and, if required by Lender, lien waivers and releases from all parties furnishing materials and/or
services in connection with the requested payment. Lender may require an inspection of the applicable Project(s) at Borrower’s expense prior to making a quarterly disbursement in order to verify completion of replacements and repairs for which
reimbursement is sought. The Funds shall be held without interest in Lender’s name and may be commingled with Lender’s own funds at financial institutions selected by Lender in its reasonable discretion. Upon the occurrence of an Event of
Default, Lender may apply any sums then present in the Funds to the payment of the Loan in any order in its reasonable discretion. Until expended or applied as above provided, the Funds shall constitute additional security for the Loan. Lender shall
have no obligation to release any of the Funds while any Event of Default or Potential Default exists or any material adverse change has occurred in Borrower or any Joinder Party or any Project. All costs and expenses incurred by Lender in the
disbursement of any of the Funds shall be paid by Borrower promptly upon demand or, at Lender’s sole discretion, deducted from the Funds. 
  

 LOAN AGREEMENT – Page 5 

 ARTICLE 3 
  

INSURANCE, CONDEMNATION, AND IMPOUNDS  
  
 Section 3.1 Insurance. Borrower shall maintain insurance as follows: 
  
 (a) Casualty; Business Interruption. Borrower shall keep the Projects insured against damage
by fire and the other hazards covered by a standard extended coverage and all-risk insurance policy for the full insurable value thereof on a replacement cost claim recovery basis (without reduction for depreciation or co-insurance), and shall
maintain such other casualty insurance as reasonably required by Lender. Such insurance shall include coverage against acts of terrorism. Lender reserves the right to require from time to time the following additional insurance: boiler and
machinery; flood; earthquake/sinkhole; worker’s compensation; and/or building law or ordinance. Borrower shall keep each Project insured against loss by flood if such Project is located currently or at any time in the future in an area
identified by the Federal Emergency Management Agency as an area having special flood hazards and in which flood insurance has been made 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 such acts may from time to time be amended) in an amount at least equal to the lesser of the maximum amount of the Loan or the maximum limit of coverage available under said acts. Any such flood
insurance policy shall be issued in accordance with the requirements and current guidelines of the Federal Insurance Administration. Borrower shall maintain use and occupancy insurance for each Project covering, as applicable, rental income or
business interruption, with coverage in an amount not less than twelve (12) months anticipated gross rental income or gross business earnings, as applicable in each case, attributable to such Project. Borrower shall not maintain any separate or
additional insurance which is contributing in the event of loss unless it is properly endorsed and otherwise reasonably satisfactory to Lender in all respects. The proceeds of insurance paid on account of any damage or destruction to any Project
shall be paid to Lender to be applied as provided in Section 3.2. 
  
 (b) Liability. Borrower shall maintain (i) commercial general liability insurance with respect to each Project providing for limits of liability of not less than $5,000,000 for both injury to or death of
a person and for property damage per occurrence, and (ii) other liability insurance as reasonably required by Lender. 
  
 (c) Form and Quality. All insurance policies shall be endorsed in form and substance acceptable to Lender to name Lender as
an additional insured, loss payee or mortgagee thereunder, as its interest may appear, with loss payable to Lender, without contribution, under a standard New York (or local equivalent) mortgagee clause. All such insurance policies and endorsements
shall be fully paid for and contain such provisions and expiration dates and be in such form and issued by such insurance companies licensed to do business in the State, with a general company and financial size rating of “A-:IX” or better
as established by Best’s Rating Guide and “AA” or better by Standard & Poor’s Ratings Group. Each policy shall provide that such policy may not be canceled or materially changed except upon thirty (30) days’ prior
written notice of intention of non-renewal, cancellation or material change to Lender and that no act or thing done by Borrower shall invalidate any policy as against Lender. Blanket policies shall be permitted only if Lender receives appropriate
endorsements and/or duplicate policies containing Lender’s right to continue coverage on a pro rata pass-through basis and that coverage will not be affected by any loss on other properties covered by the policies. Borrower authorizes Lender to
pay the premiums for such policies (the “Insurance Premiums”) from the Tax and Insurance Escrow Fund as the same become due and payable annually in advance. If Borrower fails to deposit funds into the Tax and
Insurance Escrow Fund sufficient to permit Lender to pay the premiums when due, Lender may obtain such insurance and pay the premium therefor and Borrower shall, on demand, reimburse Lender for all expenses incurred in connection therewith. Borrower
shall assign the policies or proofs of 

  

 LOAN AGREEMENT – Page 6 

 
insurance to Lender, in such manner and form that Lender and its successors and assigns shall at all times have and hold the same as security for the payment
of the Loan. Borrower shall deliver copies of all original policies certified to Lender by the insurance company or authorized agent as being true copies, together with the endorsements required hereunder. The proceeds of insurance policies coming
into the possession of Lender shall not be deemed trust funds, and Lender shall be entitled to apply such proceeds as herein provided. 
  
 (d) Adjustments. Borrower shall give immediate written notice of any loss to the insurance carrier and to Lender.
Borrower hereby irrevocably authorizes and empowers Lender, as attorney-in-fact for Borrower coupled with an interest, to make proof of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action arising
from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Lender’s reasonable expenses incurred in the collection of such proceeds. Nothing contained in this Section 3.1(d), however, shall require Lender
to incur any expense or take any action hereunder. 
  
 Section
3.2 Use and Application of Insurance Proceeds. 
  
 (a) If any Project shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall give prompt notice thereof to Lender. Following the occurrence of
a Casualty, Borrower, regardless of whether insurance proceeds are available, shall promptly proceed to restore, repair, replace or rebuild the same to be of at least equal value and of substantially the same character as prior to such damage or
destruction, all to be effected in accordance with applicable law. 
  
 (b) Lender shall apply insurance proceeds to costs of restoring a Project or to the payment of the Loan as follows: 
  
 (i) if the loss is less than or equal to $100,000, Lender shall apply the insurance proceeds to restoration provided (A) no Event of
Default or Potential Default exists, and (B) Borrower promptly commences and is diligently pursuing restoration of the Project; 
  
 (ii) if the loss exceeds $100,000 but is not more than 25% of the replacement value of the improvements, Lender shall apply the insurance
proceeds to restoration provided that (A) at all times during such restoration no Event of Default or Potential Default exists; (B) Lender determines throughout the restoration that there are sufficient funds available to restore and repair the
Project to a condition approved by Lender; (C) Lender determines that the net operating income of the Projects during restoration, taking into account rent loss or business interruption insurance, will be sufficient to pay Debt Service; (D) Lender
determines (based on leases which will remain in effect after restoration is complete if the Project is not a multi-family project) that after restoration the ratio of net operating income to Debt Service will equal at least the ratio that existed
on the Closing Date; (E) Lender determines that the ratio of the outstanding principal balance of the Loan to appraised value of the Projects after restoration will not exceed the loan-to-value ratio that existed on the Closing Date; (F) Lender
determines that restoration and repair of the Project to a condition approved by Lender will be completed within six months after the date of loss or casualty and in any event ninety (90) days prior to the Maturity Date; (G) Borrower promptly
commences and is diligently pursuing restoration of the Project; and (H) the Project after the restoration will be in compliance with and permitted under all applicable zoning, building and land use laws, rules, regulations and ordinances; and

  
 (iii) if the conditions set forth in (i) and
(ii) above are not satisfied in Lender’s reasonable discretion, Lender may apply any insurance proceeds it may receive to the payment of the Loan or allow all or a portion of such proceeds to be used for the restoration of the Project.

  

 LOAN AGREEMENT – Page 7 

 (c) Insurance proceeds applied to restoration will be disbursed on receipt of reasonably
satisfactory plans and specifications, contracts and subcontracts, schedules, budgets, lien waivers and architects’ certificates, and otherwise in accordance with prudent commercial construction lending practices for construction loan advances
(including appropriate retainages to ensure that all work is completed in a workmanlike manner). 
  
 Section 3.3 Condemnation Awards. Borrower shall promptly give Lender written notice of the actual or threatened commencement of any
condemnation or eminent domain proceeding (a “Condemnation”) and shall deliver to Lender copies of any and all papers served in connection with such Condemnation. Following the occurrence of a Condemnation, Borrower,
regardless of whether any award or compensation (an “Award”) is available, shall promptly proceed to restore, repair, replace or rebuild the applicable Project to the extent practicable to be of at least equal value and of
substantially the same character as prior to such Condemnation, all to be effected in accordance with applicable law. Lender may participate in any such proceeding and Borrower will deliver to Lender all instruments necessary or required by Lender
to permit such participation. Without Lender’s prior consent, Borrower (a) shall not agree to any Award, and (b) shall not take any action or fail to take any action which would cause the Award to be determined. All Awards for the taking or
purchase in lieu of condemnation of any Project or any part thereof are hereby assigned to and shall be paid to Lender. Borrower authorizes Lender to collect and receive such Awards, to give proper receipts and acquittances therefor, and in
Lender’s sole discretion to apply the same toward the payment of the Loan, notwithstanding that the Loan may not then be due and payable, or to the restoration of the affected Project; provided, however, if the Award is less than or equal to
$100,000 and Borrower requests that such proceeds be used for non-structural site improvements (such as landscape, driveway, walkway and parking area repairs) required to be made as a result of such condemnation, Lender will apply the Award to such
restoration in accordance with disbursement procedures applicable to insurance proceeds provided there exists no Potential Default or Event of Default. Borrower, upon request by Lender, shall execute all instruments requested to confirm the
assignment of the Awards to Lender, free and clear of all liens, charges or encumbrances. 
  
 Section 3.4 Impounds. Borrower shall deposit with Lender, monthly, (a) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order
to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (b) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage
afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (a) and (b) above
hereinafter called the “Tax and Insurance Escrow Fund”). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of
such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender’s estimate from time to time of the charges for the current year (after giving
effect to any reassessment or, at Lender’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and
may be commingled with Lender’s general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied
in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of
law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the
amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, 

  

 LOAN AGREEMENT – Page 8 

 
is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount
on deposit with Lender is sufficient to pay such charges and Lender has received a bill for such charges. 
  
 ARTICLE 4 
  
 ENVIRONMENTAL MATTERS 
  
 Section 4.1
Certain Definitions. As used herein, the following terms have the meanings indicated: 
  
 (a) “Environmental Laws” means any federal, state or local law (whether imposed by statute, ordinance, rule,
regulation, administrative or judicial order, or common law), now or hereafter enacted, governing health, safety, industrial hygiene, the environment or natural resources, or Hazardous Materials, including, without limitation, such laws governing or
regulating (i) the use, generation, storage, removal, recovery, treatment, handling, transport, disposal, control, release, discharge of, or exposure to, Hazardous Materials, (ii) the transfer of property upon a negative declaration or other
approval of a governmental authority of the environmental condition of such property, or (iii) requiring notification or disclosure of releases of Hazardous Materials or other environmental conditions whether or not in connection with a transfer of
title to or interest in property, which laws include, without limitation, the New Jersey Industrial Site Recovery Act (N.J.S.A. 13:1K-6, et seq.) (“ISRA”) and the New Jersey Spill Compensation and Control Act
(N.J.S.A. 58:10-23.11 et seq.) 
  
 (b) “Hazardous Materials” means (i) petroleum or chemical products, whether in liquid, solid, or gaseous form, or any fraction or by-product thereof, (ii) asbestos or asbestos-containing materials, (iii)
polychlorinated biphenyls (pcbs), (iv) radon gas, (v) underground storage tanks, (vi) any explosive or radioactive substances, (vii) lead or lead-based paint, or (viii) any other substance, material, waste or mixture which is or shall be listed,
defined, or otherwise determined by any governmental authority to be hazardous, toxic, dangerous or otherwise regulated, controlled or giving rise to liability under any Environmental Laws. 
  
 Section 4.2 Representations and Warranties on Environmental
Matters. To Borrower’s knowledge, except as set forth in the Site Assessments obtained by Lender in connection with the Loan closing (copies of which have been provided to Borrower), (a) no Hazardous Material is now or was
formerly used, stored, generated, manufactured, installed, treated, discharged, disposed of or otherwise present at or about any Project or any property adjacent to any Project (except for cleaning and other products currently used in connection
with the routine maintenance or repair of the Projects in full compliance with Environmental Laws) and no Hazardous Material was removed or transported from any Project, (b) all permits, licenses, approvals and filings required by Environmental Laws
have been obtained, and the use, operation and condition of the Projects do not, and did not previously, violate any Environmental Laws, (c) no civil, criminal or administrative action, suit, claim, hearing, investigation or proceeding has been
brought or been threatened, nor have any settlements been reached by or with any parties or any liens imposed in connection with any Project concerning Hazardous Materials or Environmental Laws; (d) no underground storage tanks exist on any part of
any Project; (e) Borrower has not received any written notice of potential liability with respect to any site other than the Projects arising from Hazardous Materials manufactured, refined, generated, stored, treated, handled, disposed of,
discharged, spilled or transported at or from any Project, or by Borrower at any other location within the State of New Jersey or otherwise; (f) in connection with Borrower’s purchase of any portion of the Projects after December 31, 1983, if
any, Borrower has required that the seller thereof comply with the provisions of ISRA and the regulations issued thereunder, and Borrower further represents that said seller has complied therewith; (g) no lien has been attached to any revenues, to
any Project or to any other real 

  

 LOAN AGREEMENT – Page 9 

 
or personal property owned by Borrower as a result of the Chief Executive of the New Jersey Spill Compensation Fund expending monies from said fund to pay
for “cleanup and removal costs,” as such term is defined in N.J.S.A. 58:10-23.11b (hereinafter, “Cleanup and Removal Costs”), arising from an intentional or unintentional action or omission of Borrower or any
previous owner and/or operator of said real property, including, but not limited to, any Project, resulting in the releasing, spilling, leaking, pumping, pouring, emitting, emptying or dumping of Hazardous Materials either: (1) into the waters of
the State of New Jersey; (2) onto the lands of the State of New Jersey; or (3) into waters outside the jurisdiction of the State of New Jersey when damage may result in the lands, waters, fish, shellfish, wildlife, biota, air and other natural
resources owned, managed, held in trust or otherwise controlled by, and within the jurisdiction of, the State of New Jersey; (h) Borrower has not received a summons, citation, directive, letter or other communication, written or oral, from the
Department of Environmental Protection of the State of New Jersey concerning any intentional or unintentional action or omission on Borrower’s part resulting in the releasing, spilling, leaking, pumping, pouring, emitting, emptying or dumping
of Hazardous Materials into the water or onto the lands of the State of New Jersey, or into the waters outside the jurisdiction of the State of New Jersey resulting in damage to the lands, waters, fish, shellfish, wildlife, biota, air and other
natural resources owned, managed, held in trust or otherwise controlled by, and within the jurisdiction of, the State of New Jersey; and (i) in the event that there shall be filed a lien against any Project by the Department of Environmental
Protection of the State of New Jersey, or other state or federal governmental official or entity, (1) pursuant to and in accordance with the provisions of the Spill Compensation and Control Act (N.J.S.A. 58:10-23.11 et seq.), as a
result of the Chief Executive of the New Jersey Spill Compensation Fund having expended monies from said fund to pay for Cleanup and Removal Costs arising from an intentional or unintentional action or omission of Borrower, resulting in the
releasing, spilling, pumping, emitting, emptying or dumping of Hazardous Materials into waters of the State of New Jersey or onto lands from which it might flow or drain into said waters, or (2) pursuant to and in accordance with the provisions of
ISRA, or (3) pursuant to and in accordance with any other of the Environmental Laws, then Borrower shall, within thirty (30) days from the date that Borrower has given notice that the lien has been placed against such Project or within such shorter
period of time if the State of New Jersey has commenced steps to cause such Project to be sold pursuant to the lien, either (A) pay the claim and remove the lien from such Project; or (B) furnish (i) a bond satisfactory to Lender and its title
issuer in the amount of the claim out of which the lien arises, (ii) a cash deposit in the amount of the claim out of which the lien arises, or (iii) other security reasonably satisfactory to Lender in an amount sufficient to discharge the lien out
of which the lien arises. 
  
 Section 4.3 Covenants on
Environmental Matters. 
  
 (a) Borrower
shall (i) comply strictly and in all respects with applicable Environmental Laws; (ii) notify Lender immediately upon Borrower’s discovery of any spill, discharge, release or presence of any Hazardous Material at, upon, under, within,
contiguous to or otherwise affecting any Project; (iii) promptly remove such Hazardous Materials and remediate such Project in full compliance with Environmental Laws or as reasonably required by Lender based upon the recommendations and
specifications of an independent environmental consultant approved by Lender; and (iv) promptly forward to Lender copies of all orders, notices, permits, applications or other communications and reports in connection with any spill, discharge,
release or the presence of any Hazardous Material or any other matters relating to the Environmental Laws or any similar laws or regulations, as they may affect any Project or Borrower. 
  
 (b) Borrower shall not cause, shall prohibit any other Person within the control of Borrower from causing,
and shall use prudent, commercially reasonable efforts to prohibit other Persons (including tenants) from (i) causing any spill, discharge or release, or the use, storage, generation, manufacture, installation, or disposal, of any Hazardous
Materials at, upon, under, within or about any Project or the transportation of any Hazardous Materials to or from any Project (except for cleaning and 

  

 LOAN AGREEMENT – Page 10 

 
other products used in connection with routine maintenance or repair of the Projects in full compliance with Environmental Laws), (ii) installing any
underground storage tanks at any Project, or (iii) conducting any activity that requires a permit or other authorization under Environmental Laws. 
  
 (c) Borrower shall provide to Lender, at Borrower’s expense promptly upon the written request of Lender from time to time, a Site
Assessment for each Project or, if required by Lender, an update to any existing Site Assessment for each Project, to assess the presence or absence of any Hazardous Materials and the potential costs in connection with abatement, cleanup or removal
of any Hazardous Materials found on, under, at or within such Project. Borrower shall pay the cost of no more than one such Site Assessment or update for each Project in any twelve (12)-month period, unless Lender’s request for a Site
Assessment is based on information provided under Section 4.3(a), a reasonable suspicion of Hazardous Materials at or near a Project, a breach of representations under Section 4.2, or an Event of Default, in which case any such Site Assessment or
update shall be at Borrower’s expense. 
  
 (d) Within ninety (90) days after the Closing Date, Borrower shall cause to be prepared by environmental engineers approved by Lender, and shall deliver to Lender, an Operations and Maintenance Program for each Project for the removal or
encapsulation of, or other action for handling, asbestos-containing materials at such Project (each, an “O&M Program”). Borrower shall immediately implement the O&M Programs. Prior to the commencement of any
construction, rehabilitation, modification or renovation at any Project, including any such work which requires the removal of any materials or improvements of any kind in connection with the ceiling, subflooring, floor tiles, baseboard, wall
texture, pipe insulation and other portions of such Project containing (or which are identified in a Site Assessment for such Project as possibly containing) asbestos-containing materials (the “ACM-Related Work”), all
ACM-Related Work shall be implemented in accordance with the procedures and programs in the O&M Program for such Project and all applicable governmental requirements. The O&M Programs and work resulting therefrom shall be conducted by an
accredited, licensed, abatement contractor using state-of-the-art work practices and procedures and shall include all monitoring and project management performed by an accredited asbestos consultant. Borrower shall deliver to Lender promptly when
available, copies of all reports, notices, submittals, permits, licenses, and certificates relating to the O&M Programs. Until all matters in the O&M Programs have been satisfied, Borrower shall deliver to Lender, on or before the first day
of each Loan Year, evidence of an annual inspection by the environmental engineers for each Project, addressing the status of affected space requiring ACM-Related Work or other action with respect to Hazardous Materials. Borrower shall follow the
procedures of the O&M Programs with respect to any additional Hazardous Materials revealed by any annual inspection. All fees and expenses incurred for all such inspections and review and approval of the O&M Programs shall be paid by
Borrower. 
  
 Section 4.4 Allocation of Risks and
Indemnity. As between Borrower and Lender, all risk of loss associated with non-compliance with Environmental Laws, or with the presence of any Hazardous Material at, upon, within, contiguous to or otherwise affecting the Projects, shall lie
solely with Borrower. Accordingly, Borrower shall bear all risks and costs associated with any loss (including any loss in value attributable to Hazardous Materials), damage or liability therefrom, including all costs of removal of Hazardous
Materials or other remediation required by Lender or by law. Borrower shall indemnify, defend and hold Lender and its shareholders, directors, officers, employees and agents harmless from and against all loss, liabilities, damages, claims, costs and
expenses (including reasonable costs of defense and consultant fees, investigation and laboratory fees, court costs, and other litigation expenses) arising out of or associated, in any way, with (a) the non-compliance with Environmental Laws, or (b)
the existence of Hazardous Materials in, on, or about any Project, (c) any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to Hazardous Materials; (d) any lawsuit brought or threatened,
settlement reached, or government order relating to such Hazardous Materials, 

  

 LOAN AGREEMENT – Page 11 

 
(e) a breach of any representation, warranty or covenant contained in this Article 4, whether based in contract, tort, implied or express warranty, strict
liability, criminal or civil statute or common law, or (f) the imposition of any environmental lien encumbering any Project; provided, however, Borrower shall not be liable under such indemnification to the extent such loss, liability, damage,
claim, cost or expense results solely from Lender’s gross negligence or willful misconduct. Borrower’s obligations under this Section 4.4 shall arise whether or not any governmental authority has taken or threatened any action in
connection with the presence of any Hazardous Material, and whether or not the existence of any such Hazardous Material or potential liability on account thereof is disclosed in a Site Assessment and shall continue notwithstanding the repayment of
the Loan or any transfer or sale of any right, title and interest in the Projects (by foreclosure, deed in lieu of foreclosure or otherwise). Any amounts payable to Lender by reason of the application of this Section 4.4 shall become immediately due
and payable and shall bear interest at the Default Rate from the date loss or damage is sustained by Lender until paid. The obligations and liabilities of Borrower under this Section 4.4 shall survive any termination, satisfaction, assignment, entry
of a judgment of foreclosure or delivery of a deed in lieu of foreclosure. 
  
 Section 4.5 No Waiver. Notwithstanding any provision in this Article 4 or elsewhere in the Loan Documents, or any rights or remedies granted by the Environmental Indemnity Agreement or the Loan
Documents, Lender does not waive and expressly reserves all rights and benefits now or hereafter accruing to Lender under the “security interest” or “secured creditor” exception under applicable Environmental Laws, as the same
may be amended. No action taken by Lender pursuant to the Environmental Indemnity Agreement or the Loan Documents shall be deemed or construed to be a waiver or relinquishment of any such rights or benefits under the “security interest
exception.” 
  
 Section 4.6 Lender Cure Rights.
If there is a release of Hazardous Materials affecting any Project, whether or not the release originates or emanates from such Project or any contiguous real estate, or if Borrower shall fail to comply with any Environmental Laws, Lender may at its
election, but without the obligation to do so, upon three (3) Business Days’ notice to Borrower (provided the delay caused by the giving of notice shall not, in Lender’s sole opinion, cause substantial damage such Project), take any and
all actions as Lender shall deem necessary or advisable in order to remedy the release of Hazardous Materials or cure said failure of compliance, and any amounts paid by Lender as a result thereof, together with interest thereon at the Default Rate
from the date of payment by Lender, shall be immediately due and payable by Borrower to Lender and until paid shall be added to and become part of the Loan and shall have the benefit of the lien created by the Loan Documents. 
  
 ARTICLE 5 
  
 LEASING MATTERS 
  
 Section 5.1 Representations and Warranties on Leases. Borrower represents and warrants to Lender with respect to leases of each Project
that: (a) the rent roll delivered to Lender is true and correct, and the leases are valid and in and full force and effect; (b) the leases (including amendments) are in writing, and there are no oral agreements with respect thereto; (c) the copies
of the leases (if any) delivered to Lender are true and complete; (d) the landlord is not in default under any of the leases, and not more than (i) five percent (5%) of the tenants at any one Project, and (ii) three percent (3%) of all tenants at
all Projects are more than thirty (30) days delinquent in payment of rent or are otherwise in default in a manner entitling the landlord to terminate their leases; (e) Borrower has not assigned or pledged any of the leases, the rents or any
interests therein except to Lender; (f) no tenant or other party has an option to purchase all or any portion of any Project; (g) no tenant has the right to terminate its lease prior to expiration of the stated term of such lease; (h) not more than
five percent (5%) of the tenants at any Project have prepaid more than one month’s rent in advance (except for bona fide security deposits 

  

 LOAN AGREEMENT – Page 12 

 
not in excess of an amount equal to two months’ rent), and no tenants have prepaid more than twelve (12) months’ rent in advance; and (i) all
existing leases are subordinate to the Mortgages either pursuant to their terms or a recorded subordination agreement. 
  
 Section 5.2 Standard Lease Form; Approval Rights. All leases and other rental arrangements shall in all respects be approved by Lender and
shall be on a standard lease form approved by Lender with no modifications (except as approved by Lender, which approval will not be unreasonably withheld or delayed). Borrower shall hold, in trust, all tenant security deposits in a segregated
account, and, to the extent required by applicable law, shall not commingle any such funds with any other funds of Borrower. Within ten (10) days after Lender’s request, Borrower shall furnish to Lender a statement of all tenant security
deposits and copies of all leases, certified by Borrower as being true and correct. Notwithstanding anything contained in the Loan Documents, Lender’s approval shall not be required for future leases or lease extensions at a Project if the
following conditions are satisfied: (i) there exists no Potential Default or Event of Default; (ii) the lease is on the standard lease form approved by Lender with no modifications (except as approved by Lender); (iii) the lease does not conflict
with any restrictive covenant affecting the Project or any other lease for space in the Project; and (iv) the effective rental rate is at least a market rate. 
  

Section 5.3 Covenants. Borrower (a) shall perform the obligations which Borrower is required to perform under the leases; (b) shall
enforce the obligations to be performed by the tenants; (c) shall not collect from more than five percent (5%) of the tenants at any Project (and then, only at the request of such tenants) any rents for more than thirty (30) days in advance of the
time when the same shall become due (and in no event shall Borrower collect from any tenant any rents more than twelve (12) months in advance of the time when the same shall become due), except for bona fide security deposits not in excess of an
amount equal to two month’s rent; (d) shall not enter into any ground lease or master lease of any part of any Project; (e) shall not further assign or encumber any lease; (f) shall not, except with Lender’s prior written consent, cancel
or accept surrender or termination of any lease except in the ordinary course of business, consistent with prudent property management practices for self-storage facilities; and (g) shall not, except with Lender’s prior written consent, modify
or amend any lease (except for minor modifications and amendments entered into in the ordinary course of business, consistent with prudent property management practices for self-storage facilities, not affecting the economic terms of the lease). Any
action in violation of clauses (d), (e), (f), and (g) of this Section 5.3 shall be void at the election of Lender. 
  
 Section 5.4 Tenant Estoppels. At Lender’s request, Borrower shall obtain and furnish to Lender, written estoppels in form and substance
reasonably satisfactory to Lender, executed by tenants under any “corporate” or master leases of any part of any Project and confirming the term, rent, and other provisions and matters relating to the leases. 
  
 ARTICLE 6 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Borrower represents, warrants and covenants to Lender that: 
  
 Section 6.1 Organization, Power and Authority. Borrower and each Borrower Party (a) is duly organized, validly
existing and in good standing under the laws of the state of its formation or existence, (b) is in compliance with all legal requirements applicable to doing business in the State, and (c) has the necessary governmental approvals to own and operate
the Projects and conduct the business now conducted or to be conducted thereon. Borrower has the full power, authority and right to execute, deliver and perform its obligations pursuant to this Loan Agreement and the other Loan Documents, and

  

 LOAN AGREEMENT – Page 13 

 
to mortgage the Projects pursuant to the terms of the Mortgages and to keep and observe all of the terms of this Loan Agreement and the other Loan Documents
on Borrower’s part to be performed. Borrower is not a “foreign person” within the meaning of § 1445(f)(3) of the Internal Revenue Code. 
  
 Section 6.2 Validity of Loan Documents. The execution, delivery and performance by Borrower and each Borrower Party of the Loan Documents:
(a) are duly authorized and do not require the consent or approval of any other party or governmental authority which has not been obtained; and (b) will not violate any law or result in the imposition of any lien, charge or encumbrance upon the
assets of any such party, except as contemplated by the Loan Documents. The Loan Documents constitute the legal, valid and binding obligations of Borrower and each Borrower Party, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, or similar laws generally affecting the enforcement of creditors’ rights. 
  
 Section 6.3 Liabilities; Litigation. 
  
 (a) The financial statements delivered by Borrower and each Borrower Party are true and correct with no significant change since the date
of preparation. Except as disclosed in such financial statements, there are no liabilities (fixed or contingent) affecting any Project, Borrower or any Borrower Party. Except as disclosed in such financial statements, there is no litigation,
administrative proceeding, investigation or other legal action (including any proceeding under any state or federal bankruptcy or insolvency law) pending or, to the knowledge of Borrower, threatened, against any Project, Borrower or any Borrower
Party which if adversely determined could have a material adverse effect on such party, such Project or the Loan. 
  
 (b) Neither Borrower nor any Borrower Party is contemplating either the filing of a petition by it under state or federal bankruptcy or
insolvency laws or the liquidation of all or a major portion of its assets or property, and neither Borrower nor any Borrower Party has knowledge of any Person contemplating the filing of any such petition against it. 
  
 Section 6.4 Taxes and Assessments. Each Project is comprised of
one or more parcels, each of which constitutes a separate tax lot and none of which constitutes a portion of any other tax lot. There are no pending or, to Borrower’s best knowledge, proposed, special or other assessments for public
improvements or otherwise affecting any Project, nor are there any contemplated improvements to any Project that may result in such special or other assessments. 
  
 Section 6.5 Other Agreements; Defaults. Neither Borrower nor any Borrower Party is a party to any agreement or
instrument or subject to any court order, injunction, permit, or restriction which might adversely affect any Project or the business, operations, or condition (financial or otherwise) of Borrower or any Borrower Party. Neither Borrower nor any
Borrower Party is in violation of any agreement which violation would have an adverse effect on any Project, Borrower, or any Borrower Party or Borrower’s or any Borrower Party’s business, properties, or assets, operations or condition,
financial or otherwise. 
  
 Section 6.6 Compliance with
Law. 
  
 (a) Borrower and each Borrower
Party have all requisite licenses, permits, franchises, qualifications, certificates of occupancy or other governmental authorizations to own, lease and operate the Projects and carry on its business, and each Project is in compliance with all
applicable legal requirements and is free of structural defects, and except as set forth in the property condition reports obtained by Lender in connection with the Loan, all building systems contained therein are in good working order, subject to
ordinary wear and tear. No Project constitutes, in whole or in part, a 

  

 LOAN AGREEMENT – Page 14 

 
legally non-conforming use under applicable legal requirements other than the “Egg Harbor” Project located on the land described in
Exhibit A-2 and the “Howell” Project located on the land described in Exhibit A-3, each of which is legally non-conforming as
to use; 
  
 (b) No condemnation has been
commenced or, to Borrower’s knowledge, is contemplated with respect to all or any portion of any Project or for the relocation of roadways providing access to any Project; and 
  
 (c) Each Project has adequate rights of access to public ways and is served by adequate water, sewer,
sanitary sewer and storm drain facilities. All public utilities necessary or convenient to the full use and enjoyment of each Project are located in the public right-of-way abutting such Project, and all such utilities are connected so as to serve
such Project without passing over other property, except to the extent such other property is subject to a perpetual easement for such utility benefitting such Project. All roads necessary for the full utilization of each Project for its current
purpose have been completed and dedicated to public use and accepted by all governmental authorities. 
  
 Section 6.7 Location of Borrower. Borrower’s principal place of business and chief executive offices are located at the address stated
in Section 11.1. 
  
 Section 6.8 ERISA. 

 
 (a) As of the Closing Date and throughout the term of the
Loan, (i) Borrower is not and will not be an “employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to Title I
of ERISA, and (ii) the assets of Borrower do not and will not constitute “plan assets” of one or more such plans for purposes of Title I of ERISA; and 
  
 (b) As of the Closing Date and throughout the term of the Loan (i) Borrower is not and will not be a
“governmental plan” within the meaning of Section 3(3) of ERISA and (ii) transactions by or with Borrower are not and will not be subject to state statutes applicable to Borrower regulating investments of and fiduciary obligations with
respect to governmental plans. 
  
 Section 6.9
Forfeiture. There has not been and shall never be committed by Borrower or any other person in occupancy of or involved with the operation or use of the Projects any act or omission affording the federal government or any state or local
government the right of forfeiture as against the Projects or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower hereby covenants and agrees not to commit, permit or suffer to
exist any act or omission affording such right of forfeiture. 
  
 Section 6.10 Tax Filings. Borrower and each Borrower Party have filed (or have obtained effective extensions for filing) all federal, state and local tax returns required to be filed and have paid or made adequate provision
for the payment of all federal, state and local taxes, charges and assessments payable by Borrower and each Borrower Party, respectively. Borrower and each Borrower Party believe that their respective tax returns properly reflect the income and
taxes of Borrower and each Borrower Party, respectively, for the periods covered thereby, subject only to reasonable adjustments required by the Internal Revenue Service or other applicable tax authority upon audit. 
  
 Section 6.11 Solvency. Giving effect to the Loan, the fair
saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The
fair saleable value of Borrower’s assets is and will, immediately following the making of the Loan, be greater 

  

 LOAN AGREEMENT – Page 15 

 
than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its Debts as such Debts become absolute and matured,
Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe
that it will, incur Debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such Debts as they mature (taking into account the timing and amounts of cash to be received by Borrower and the amounts to
be payable on or in respect of obligations of Borrower). Except as expressly disclosed to Lender in writing, no petition in bankruptcy has been filed against Borrower or any Borrower Party in the last seven (7) years, and neither Borrower or any
Borrower Party in the last seven (7) years has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. 
  
 Section 6.12 Full and Accurate Disclosure. No statement of fact made by or on behalf of Borrower or any
Borrower Party in this Agreement or in any of the other Loan Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. There is no fact
presently known to Borrower which has not been disclosed to Lender which adversely affects, nor as far as Borrower can foresee, might adversely affect, any Project or the business, operations or condition (financial or otherwise) of Borrower or any
Borrower Party. 
  
 Section 6.13 Flood Zone.
No portion of the improvements comprising any Project is located in an area identified by the Secretary of Housing and Urban Development or any successor thereto as an area having special flood hazards pursuant to the National Flood Insurance
Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Act of 1994, as amended, or any successor law, or, if located within any such area, Borrower has obtained and will maintain the insurance prescribed in Section
3.1 hereof. 
  
 Section 6.14 Single Purpose
Entity/Separateness. Borrower represents, warrants and covenants as follows: 
  
 (a) Borrower has not owned, does not own, and will not own any asset or property other than (i) the Projects, and (ii) incidental personal
property necessary for the ownership or operation of the Projects. 
  
 (b) Borrower will not engage in any business other than the ownership, management and operation of the Projects and Borrower will conduct and operate its business as presently conducted and operated. 
  
 (c) Borrower will not enter into any contract or agreement
with any Affiliate of the Borrower, any constituent party of Borrower, or any Affiliate of any constituent party, except upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an
arms-length basis with third parties other than any such party. 
  
 (d) Borrower has not incurred and will not incur any Debt other than (i) the Loan, (ii) trade and operational debt incurred in the ordinary course of business with trade creditors and in amounts as are normal and
reasonable under the circumstances, provided such debt is not evidenced by a note and is paid when due, and (iii) Debt incurred in the financing of equipment and other personal property used on the Projects. No indebtedness other than the Loan may
be secured (subordinate or pari passu) by any Project. 
  

 LOAN AGREEMENT – Page 16 

 (e) Borrower has not made and will not make any loans or advances to any third party
(including any Affiliate or constituent party or any Affiliate of any constituent party), and shall not acquire obligations or securities of its Affiliates or any constituent party. 
  
 (f) Borrower is and will remain solvent and Borrower will pay its debts and liabilities (including, as
applicable, shared personnel and overhead expenses) from its own funds and assets as the same shall become due. 
  
 (g) Borrower 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, nor will Borrower permit any constituent party to amend, modify or otherwise change the partnership certificate, partnership agreement, articles of incorporation and bylaws, operating agreement, trust or other
organizational documents of Borrower or such constituent party without the prior written consent of Lender. 
  
 (h) Borrower will maintain all of its books, records, financial statements and bank accounts separate from those of its Affiliates and any
constituent party and Borrower will file its own tax returns, if any, as may be required under applicable law, to the extent not part of a consolidated group filing a consolidated return, and pay any taxes so required to be paid under applicable
law. Borrower shall maintain its books, records, resolutions and agreements as official records. 
  
 (i) Borrower will be, 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, any constituent party of Borrower, or any Affiliate of any constituent party), shall correct any known misunderstanding regarding its status as a separate entity, shall conduct business in its own name, shall
not identify itself or any of its Affiliates as a division or part of the other and shall maintain and utilize a separate telephone number, if any, and separate stationery, invoices and checks. 
  
 (j) Borrower will 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. 
  
 (k) Neither Borrower nor any constituent party will seek the dissolution, winding up, liquidation, consolidation or merger in whole or in
part, of the Borrower. 
  
 (l) Borrower will not
commingle the funds and other assets of Borrower with those of any Affiliate or constituent party, or any Affiliate of any constituent party, or any other Person. 
  
 (m) Borrower has 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 Affiliate of any constituent party, or any other Person. 
  
 (n) Borrower does not and will not hold itself out to be responsible for the debts or obligations of any
other Person. 
  
 (o) If Borrower is a limited
partnership or a limited liability company, each general partner or managing member (each, an “SPC Party”) shall be a limited liability company whose sole asset is its interest in Borrower and each such SPC Party will at all
times comply, and will cause Borrower to comply, with each of the representations, warranties, and covenants contained in this Section 6.14 as if such representation, warranty or covenant was made directly by such SPC Party. 
  
 (p) Borrower shall at all times cause there to be at least
one duly appointed special manager (an “Independent Director”) of each SPC Party in Borrower who shall not have been at the 

  

 LOAN AGREEMENT – Page 17 

 
time of such individual’s appointment, and may not have been at any time during the preceding five years (i) a shareholder of, or an officer, director,
partner, member, or employee of, Borrower or any of their Affiliates, (ii) affiliated with a customer of, or supplier to, the SPC Party, Borrower or any of their Affiliates, or (iii) a spouse, parent, sibling, child, or other family relative of any
person described by (i) or (ii) above. As used herein, the term “Affiliate” means any Person other than the SPC Party (A) which owns beneficially, directly or indirectly, any outstanding shares of the SPC
Party’s stock or interest in the Borrower or (B) which controls or is under common control with the SPC Party or the Borrower. As used herein, the term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
  
 (q) Borrower shall not cause or permit the manager of each SPC Party in Borrower to take any action which,
under the terms of such SPC Party’s operating agreement, requires the vote of the Independent Director of such SPC Party unless at the time of such action there shall be at least one manager of such SPC Party who is an Independent Director.

  
 (r) Borrower shall conduct its business so
that the assumptions made with respect to Borrower in that certain opinion letter dated as of the Closing Date (the “Insolvency Opinion”) delivered by Goodwin Procter LLP in connection with the Loan shall be true and
correct in all respects. 
  
 Section 6.15 Compliance with
Anti-Terrorism Orders. 
  
 (a) Borrower,
each member in Borrower, all beneficial owners of Borrower and, to the best of Borrower’s knowledge, all beneficial owners of any such member, are in compliance with all laws, statutes, rules and regulations of any federal, state or local
governmental authority in the United States of America applicable to such Persons, including, without limitation, the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and other
similar requirements contained in the rules and regulations of the Office of Foreign Asset Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other Executive Orders in respect thereof (the Order
and such other rules, regulations, legislation, or orders are collectively called the “Orders”). Borrower agrees to make its policies, procedures and practices regarding compliance with the Orders of any Persons who, pursuant
to transfers permitted by the Mortgage, become stockholders, members, partners or other investors of Borrower available to Lender for its review and inspection during normal business hours and upon reasonable prior notice. 
  
 (b) Neither Borrower or any member in Borrower nor the
beneficial owner of Borrower or any such member: 
  
 (i) is listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations
of OFAC or pursuant to any other applicable Orders (such lists are collectively referred to as the “Lists”); 
  
 (ii) is a Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; 
  
 (iii) is owned or controlled by, nor acts for or on behalf
of, any Person on the Lists or any other Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; 
  

 LOAN AGREEMENT – Page 18 

 (iv) shall transfer or permit the transfer of any interest in Borrower or any Borrower
Party to any Person who is or whose beneficial owners are listed on the Lists; or 
  
 (v) shall knowingly lease space in any Project to any Person who is listed on the Lists or who is engaged in illegal activities.

  
 (c) If Borrower obtains knowledge that
Borrower or any of its members or their beneficial owners become listed on the Lists or are indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Borrower shall immediately notify
Lender. 
  
 (d) If Borrower obtains knowledge
that any tenant in any Project has become listed on the Lists or is convicted, pleads nolo contendere, indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Borrower shall
immediately notify Lender. 
  
 (e) If Borrower
obtains knowledge that a tenant at any Project is listed on the Lists or is convicted or pleads nolo contendere to charges related to activity prohibited in the Orders, then proceeds from the rents of such tenant shall not be used to pay Debt
Service and Borrower shall provide Lender such representations and verifications as Lender shall reasonably request that such rents are not being so used. 
  
 (f) If a tenant at any Project is arrested on such charges, and such charge is not dismissed within thirty (30) days thereafter, Lender
may at its option notify Borrower to exclude such rents from the Debt Service payments. 
  
 (g) If Borrower or any Borrower Party is listed on the Lists, no earn-out disbursements, escrow disbursements, or other disbursements
under the Loan Documents shall be made and all of such funds shall be paid in accordance with the direction of a court of competent jurisdiction. 
  
 ARTICLE 7 
  
 FINANCIAL REPORTING 
  
 Section 7.1 Financial Statements. 
  
 (a) Monthly Reports. Until the Loan is sold in a Secondary Market Transaction, Borrower shall furnish to Lender within
twenty-one (21) days after the end of each calendar month, a current rent roll and a detailed operating statement (showing monthly activity and year-to-date) for each Project stating operating revenues, operating expenses, operating income and net
cash flow for the calendar month just ended. 
  
 (b) Quarterly Reports. Within forty-five (45) days after the end of each calendar quarter, Borrower shall furnish to Lender a current rent roll and a detailed operating statement (showing quarterly activity and year-to-date)
for each Project stating operating revenues, operating expenses, operating income and net cash flow for the calendar quarter just ended. 
  
 (c) Annual Reports. Within ninety (90) days after the end of each fiscal year of Borrower’s operation of the Projects
(on a Project-by-Project basis and on a consolidated basis), Borrower shall furnish to Lender a current (as of the end of such fiscal year) balance sheet, a detailed operating statement stating operating revenues, operating expenses, operating
income and net cash flow for each of 

  

 LOAN AGREEMENT – Page 19 

 
Borrower and the Projects, and, if required by Lender, audited financial statements prepared by an independent public accountant reasonably satisfactory to
Lender. 
  
 (d) Certification; Supporting
Documentation. Each such financial statement shall be in scope and detail reasonably satisfactory to Lender and certified by the chief financial representative of Borrower. 
  
 Section 7.2 Accounting Principles. All financial statements shall be prepared in accordance with
generally accepted accounting principles in the United States of America in effect on the date so indicated and consistently applied (or such other accounting basis reasonably acceptable for Lender). 
  
 Section 7.3 Other Information; Access. Borrower shall
deliver to Lender such additional information regarding Borrower, its subsidiaries, its business, any Borrower Party, and the Projects within 30 days after Lender’s request therefor. Borrower shall permit Lender to examine such records, books
and papers of Borrower which reflect upon its financial condition and the income and expenses of the Projects. In the event that Borrower fails to forward the financial statements required in this Article 7 within thirty (30) days after written
request, Lender shall have the right to audit such records, books and papers at Borrower’s expense. 
  
 Section 7.4 Annual Budget. At least thirty (30) days prior to the commencement of each fiscal year, Borrower will provide to Lender
its proposed annual operating and capital improvements budget for each Project for such fiscal year for review and approval by Lender. 
  
 ARTICLE 8 
  
 COVENANTS 
  
 Borrower covenants and agrees with Lender as follows: 
  
 Section 8.1 Due On Sale and Encumbrance; Transfers of Interests. Without the prior written consent of Lender, neither Borrower nor any other Person having an ownership or beneficial interest in
Borrower shall sell, transfer, convey, mortgage, pledge, or assign any interest in any Project or any part thereof or further encumber, alienate, grant a Lien or grant any other interest in any Project or any part thereof, whether voluntarily or
involuntarily, in violation of the covenants and conditions set forth in the Mortgages. 
  
 Section 8.2 Taxes; Utility Charges. Except to the extent sums sufficient to pay all Taxes (defined herein) have been previously deposited with Lender as part of the Tax and Insurance Escrow Fund
and subject to Borrower’s right to contest in accordance with Section 11.8 hereof, Borrower shall pay before any fine, penalty, interest or cost may be added thereto, and shall not enter into any agreement to defer, any real estate taxes and
assessments, franchise taxes and charges, and other governmental charges (the “Taxes”) that may become a Lien upon any Project or become payable during the term of the Loan. Borrower’s compliance with Section 3.4 of this
Agreement relating to impounds for Taxes shall, with respect to payment of such Taxes, be deemed compliance with this Section 8.2. Borrower shall not suffer or permit the joint assessment of any Project with any other real property constituting a
separate tax lot or with any other real or personal property. Borrower shall promptly pay for all utility services provided to the Projects. 
  
 Section 8.3 Control; Management. Except as expressly permitted in Section 3.9 of the Mortgages, there shall be no change in the
day-to-day control and management of Borrower or Borrower’s general partner or managing member without the prior written consent of Lender. Borrower 

  

 LOAN AGREEMENT – Page 20 

 
shall not terminate, replace or appoint any property manager or terminate or amend the property management agreement for any Project without Lender’s
prior written approval, which approval shall not be unreasonably withheld. Any change in ownership or control of the property manager shall be cause for Lender to re-approve such property manager and property management agreement. Each property
manager shall hold and maintain all necessary licenses, certifications and permits required by law. Borrower shall fully perform all of its covenants, agreements and obligations under the property management agreements. The property management fee
payable under each property management agreement shall not exceed six percent (6.0%) of gross revenues collected. 
  
 Section 8.4 Operation; Maintenance: Inspection. Borrower shall observe and comply with all legal requirements applicable to the
ownership, use and operation of the Projects. Borrower shall maintain the Projects in good condition and promptly repair any damage or casualty. Borrower shall permit Lender and its agents, representatives and employees, upon reasonable prior notice
to Borrower, to inspect the Projects and conduct such environmental and engineering studies as Lender may require, provided such inspections and studies do not materially interfere with the use and operation of the Projects. 
  
 Section 8.5 Taxes on Security. Borrower shall pay all
taxes, charges, filing, registration and recording fees, excises and levies payable with respect to the Note or the Liens created or secured by the Loan Documents, other than income, franchise and doing business taxes imposed on Lender. If there
shall be enacted any law (a) deducting all or a portion of the Loan from the value of any Project for the purpose of taxation, (b) affecting any Lien on any Project, or (c) changing existing laws of taxation of mortgages, deeds of trust, security
deeds, or debts secured by real property, or changing the manner of collecting any such taxes, Borrower shall promptly pay to Lender, on demand, all taxes, costs and charges for which Lender is or may be liable as a result thereof; however, if such
payment would be prohibited by law or would render the Loan usurious, then instead of collecting such payment, Lender may declare all amounts owing under the Loan Documents to be immediately due and payable. 
  
 Section 8.6 Legal Existence; Name, Etc. Borrower and
each SPC Party shall preserve and keep in full force and effect its entity status, franchises, rights and privileges under the laws of the state of its formation, and all qualifications, licenses and permits applicable to the ownership, use and
operation of the Projects. Neither Borrower nor any general partner or managing member of Borrower shall wind up, liquidate, dissolve, reorganize, merge, or consolidate with or into, or convey, sell, assign, transfer, lease, or otherwise dispose of
all or substantially all of its assets, or acquire all or substantially all of the assets of the business of any Person, or permit any subsidiary or Affiliate of Borrower to do so (except as permitted in Section 3.9 of the Mortgages with respect to
Extra Space Storage LLC). Borrower shall not change its name, identity, state of formation, or organizational structure, or the location of its chief executive office or principal place of business unless Borrower (a) shall have obtained the prior
written consent of Lender to such change, and (b) shall have taken all actions necessary or requested by Lender to file or amend any financing statement or continuation statement to assure perfection and continuation of perfection of security
interests under the Loan Documents. The name of Borrower, type of entity, organization number, and state of formation set forth in this Agreement accurately reflect such information as shown on the public record of Borrower’s jurisdiction of
organization. 
  
 Section 8.7 Further Assurances.
Borrower shall promptly (a) cure any defects in the execution and delivery of the Loan Documents and the Environmental Indemnity Agreement, and (b) execute and deliver, or cause to be executed and delivered, all such other documents, agreements
and instruments as Lender may reasonably request to further evidence and more fully describe the collateral for the Loan, to correct any omissions in the Loan Documents, to perfect, protect or preserve any liens created under any of the Loan
Documents and the Environmental Indemnity Agreement, or to make any recordings, file any notices, or obtain any consents, as may be necessary or appropriate in connection 

  

 LOAN AGREEMENT – Page 21 

 
therewith. Borrower grants Lender an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and all rights
and remedies available to Lender under the Loan Documents and the Environmental Indemnity Agreement, at law and in equity, including without limitation such rights and remedies available to Lender pursuant to this Section 8.7. 
  
 Section 8.8 Estoppel Certificates. Borrower, within ten
(10) days after request, shall furnish to Lender a written statement, duly acknowledged, setting forth the amount due on the Loan, the terms of payment of the Loan, the date to which interest has been paid, whether any offsets or defenses exist
against the Loan and, if any are alleged to exist, the nature thereof in detail, and such other matters as Lender reasonably may request. 
  
 Section 8.9 Notice of Certain Events. Borrower shall promptly notify Lender of (a) any Potential Default or Event of Default,
together with a detailed statement of the steps being taken to cure such Potential Default or Event of Default; (b) any notice of default received by Borrower under other obligations relating to any Project or otherwise material to Borrower’s
business; and (c) any threatened or pending legal, judicial or regulatory proceedings, including any dispute between Borrower and any governmental authority, affecting Borrower or any Project. 
  
 Section 8.10 Indemnification. Except for matters caused
by Lender’s gross negligence or willful misconduct, Borrower shall protect, defend, indemnify and save harmless Lender its shareholders, directors, officers, employees and agents from and against all liabilities, obligations, claims, damages,
penalties, causes of action, costs and expenses (including without limitation reasonable attorneys’ fees and expenses), imposed upon or incurred by or asserted against Lender by reason of (a) ownership of the Mortgages, the Projects or any
interest therein or receipt of any rents; (b) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about any Project or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (c) any use, nonuse or condition in, on or about any Project or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (d) performance of any labor or
services or the furnishing of any materials or other property in respect of any Project or any part thereof; and (e) 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 Agreement, or to supply a copy thereof in a timely fashion to the recipient of the proceeds of the transaction in connection with which
this Agreement is made. Any amounts payable to Lender by reason of the application of this section shall become immediately due and payable and shall bear interest at the Default Rate from the date loss or damage is sustained by Lender until paid.

  
 Section 8.11 Cooperation. Borrower
acknowledges that Lender and its successors and assigns may (a) sell this Agreement, the Mortgages, the Note, the other Loan Documents, and the Environmental Indemnity Agreement, and any and all servicing rights thereto to one or more investors as a
whole loan, (b) participate the Loan to one or more investors, (c) deposit this Agreement, the Note, other Loan Documents, and the Environmental Indemnity Agreement with a trust, which trust may sell certificates to investors evidencing an ownership
interest in the trust assets, or (d) otherwise sell the Loan or interest therein to investors (the transactions referred to in clauses (a) through (d) are hereinafter each referred to as a “Secondary Market Transaction”).
Borrower shall cooperate with Lender in effecting any such Secondary Market Transaction and shall cooperate to implement all requirements imposed by any Rating Agency involved in any Secondary Market Transaction. Borrower shall provide such
information, legal opinions and documents relating to the Borrower, the Projects and any tenants of the Projects as Lender may reasonably request in connection with such Secondary Market Transaction at no third-party professional expense to Borrower
unless otherwise required by the Loan Documents. In addition, Borrower shall make available to Lender all information concerning its business and operations, 

  

 LOAN AGREEMENT – Page 22 

 
and any other matters contemplated by the Loan Documents, that Lender may reasonably request. Lender shall be permitted to share all such information with
the investment banking firms, Rating Agencies, accounting firms, law firms and other third-party advisory firms involved with the Loan and the Loan Documents or the applicable Secondary Market Transaction. It is understood that the information
provided by Borrower to Lender may ultimately be incorporated into the offering documents for the Secondary Market Transaction and thus various investors may also see some or all of the information. Lender and all of the aforesaid third-party
advisors and professional firms shall be entitled to rely on the information supplied by, or on behalf of, Borrower and Borrower indemnifies Lender as to any losses, claims, damages or liabilities that arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in such information or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated in such information or necessary in
order to make the statements in such information, or in light of the circumstances under which they were made, not misleading. 
  
 Section 8.12 Payment For Labor and Materials. Subject to Borrower’s right to contest in accordance with Section 11.8 hereof,
Borrower will promptly pay when due all bills and costs for labor, materials, and specifically fabricated materials incurred in connection with any Project and never permit to exist beyond the due date thereof in respect of such Project or any part
thereof any Lien, even though inferior to the Liens hereof, and in any event never permit to be created or exist in respect of any Project or any part thereof any other or additional Lien other than the Liens hereof, except for the Permitted
Encumbrances (defined in the Mortgage encumbering such Project). 
  
 ARTICLE 9 
  
 EVENTS OF DEFAULT

  
 Each of the following shall constitute an Event of Default
under the Loan: 
  
 Section 9.1 Payments.
Borrower’s failure to pay any regularly scheduled installment of principal, interest or other amount due under the Loan Documents within five (5) days of (and including) the date when due, or Borrower’s failure to pay the Loan at the
Maturity Date, whether by acceleration or otherwise. 
  
 Section 9.2 Insurance. Borrower’s failure to maintain insurance as required under Section 3.1 of this Agreement. 
  
 Section 9.3 Sale, Encumbrance, Etc. The sale, transfer, conveyance, pledge, mortgage or assignment of any part or all
of any Project, or any interest therein, or of any interest in Borrower, in violation of the Mortgage encumbering such Project. 
  
 Section 9.4 Covenants. Borrower’s failure to perform or observe any of the agreements and covenants contained in this Agreement
or in any of the other Loan Documents (other than payments under Section 9.1, insurance requirements under Section 9.2, transfers and encumbrances under Section 9.3, and the Events of Default described in Sections 9.7, 9.8 and 9.9 below), and the
continuance of such failure for ten (10) days after notice by Lender to Borrower; however, subject to any shorter period for curing any failure by Borrower as specified in any of the other Loan Documents, Borrower shall have an additional sixty (60)
days to cure such failure if (a) such failure does not involve the failure to make payments on a monetary obligation; (b) such failure cannot reasonably be cured within ten (10) days; (c) Borrower is diligently undertaking to cure such default; and
(d) Borrower has provided Lender with security reasonably satisfactory to Lender against any interruption of payment or impairment of collateral as a result of such continuing failure. 
  

 LOAN AGREEMENT – Page 23 

 Section 9.5 Representations and Warranties. Any representation or warranty made in
any Loan Document proves to be untrue in any material respect when made or deemed made. 
  
 Section 9.6 Other Encumbrances. Any default under any document or instrument, other than the Loan Documents, evidencing or creating a Lien on any Project or any part thereof, not cured within any
applicable grace or cure period therein. 
  
 Section 9.7
Involuntary Bankruptcy or Other Proceeding. Commencement of an involuntary case or other proceeding against Borrower, any Borrower Party or any other Person having an ownership or security interest in any Project (each, a
“Bankruptcy Party”) which seeks liquidation, reorganization or other relief with respect to it or its debts or other liabilities under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeks the
appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any of its property, and such involuntary case or other proceeding shall remain undismissed or unstayed for a period of 60 days; or an order for relief
against a Bankruptcy Party shall be entered in any such case under the Federal Bankruptcy Code. 
  
 Section 9.8 Voluntary Petitions, Etc. Commencement by a Bankruptcy Party of a voluntary case or other proceeding
seeking liquidation, reorganization or other relief with respect to itself or its Debts or other liabilities under any bankruptcy, insolvency or other similar law or seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official for it or any of its property, or consent by a Bankruptcy Party to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or the making by
a Bankruptcy Party of a general assignment for the benefit of creditors, or the failure by a Bankruptcy Party, or the admission by a Bankruptcy Party in writing of its inability, to pay its debts generally as they become due, or any action by a
Bankruptcy Party to authorize or effect any of the foregoing. 
  
 Section 9.9 Anti-Terrorism. If Borrower or any Borrower Party is listed on the Lists or is convicted or pleads nolo contendere to charges related to activity prohibited in the Orders, or if Borrower or any Borrower
Party is arrested on charges related to activity prohibited in the Orders and such charge is not dismissed within sixty (60) days thereafter. 
  
 ARTICLE 10 
  
 REMEDIES 
  
 Section 10.1 Remedies - Insolvency Events. Upon the occurrence of any Event of Default described in Section 9.7 or 9.8, all amounts due under the Loan Documents immediately shall become due and
payable, all without written notice and without presentment, demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or any other notice of default of any
kind, all of which are hereby expressly waived by Borrower; however, if the Bankruptcy Party under Section 9.7 or 9.8 is other than Borrower, then all amounts due under the Loan Documents shall become immediately due and payable at Lender’s
election, in Lender’s sole discretion. 
  
 Section 10.2
Remedies - Other Events. Except as set forth in Section 10.1 above, while any Event of Default exists, Lender may (a) declare the entire Loan to be immediately due and payable without presentment, demand,
protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or other notice of default of any kind, all of which are hereby expressly waived by Borrower, and (b)
exercise all rights and remedies therefor under the Loan Documents and at law or in equity. 
  

 LOAN AGREEMENT – Page 24 

 Section 10.3 Lender’s Right to Perform the Obligations. If Borrower shall fail,
refuse or neglect to make any payment or perform any act required by the Loan Documents, then while any Event of Default exists, and without notice to or demand upon Borrower and without waiving or releasing any other right, remedy or recourse
Lender may have because of such Event of Default, Lender may (but shall not be obligated to) make such payment or perform such act for the account of and at the expense of Borrower, and shall have the right to enter upon the Projects for such
purpose and to take all such action thereon and with respect to the Projects as it may deem necessary or appropriate. If Lender shall elect to pay any sum due with reference to any Project, Lender may do so in reliance on any bill, statement or
assessment procured from the appropriate governmental authority or other issuer thereof without inquiring into the accuracy or validity thereof. Similarly, in making any payments to protect the security intended to be created by the Loan Documents,
Lender shall not be bound to inquire into the validity of any apparent or threatened adverse title, lien, encumbrance, claim or charge before making an advance for the purpose of preventing or removing the same. Borrower shall indemnify Lender for
all losses, expenses, damages, claims and causes of action, including reasonable attorneys’ fees, incurred or accruing by reason of any acts performed by Lender pursuant to the provisions of this Section 10.3. All sums paid by Lender pursuant
to this Section 10.3, and all other sums expended by Lender to which it shall be entitled to be indemnified, together with interest thereon at the Default Rate from the date of such payment or expenditure until paid, shall constitute additions to
the Loan, shall be secured by the Loan Documents and shall be paid by Borrower to Lender upon demand. 
  
 ARTICLE 11 
  
 MISCELLANEOUS 
  
 Section 11.1
Notices. Any notice required or permitted to be given under this Agreement shall be in writing and either shall be mailed by certified mail, postage prepaid, return receipt requested, or sent by overnight air courier service, or
personally delivered to a representative of the receiving party, or sent by telecopy (provided an identical notice is also sent simultaneously by mail, overnight courier, or personal delivery as otherwise provided in this Section 11.1). All such
communications shall be mailed, sent or delivered, addressed to the party for whom it is intended at its address set forth below. 
  

			
	 If to Borrower:
	  	 Extra Space of New Jersey, L.L.C.
 2795 East Cottonwood Parkway, Suite 400
 Salt Lake City, Utah 84121
 Attention: David L. Rasmussen, General Counsel
 Telecopy:
(801)365-4947

		
	 If to Lender:
	  	 General Electric Capital Corporation
 c/o GEMSA Loan Services, L.P.
 1500 City West Boulevard, Suite 200
 Houston, Texas 77042-2300
 Attention: Portfolio Manager/Access Program
 Telecopy:
(713)458-7500

  

 LOAN AGREEMENT – Page 25 

			
	 with a copy to:
	  	 General Electric Capital Corporation
 Two Bent Tree Tower
 16479 Dallas Parkway, Suite 500
 Addison, Texas 75001
 Attention: David R. Martindale
 Telecopy: (972)728-7650

  
 Any communication so addressed and
mailed shall be deemed to be given on the earliest of (a) when actually delivered, (b) on the first Business Day after deposit with an overnight air courier service, or (c) on the third Business Day after deposit in the United States mail, postage
prepaid, in each case to the address of the intended addressee, and any communication so delivered in person shall be deemed to be given when receipted for by, or actually received by Lender or Borrower, as the case may be. If given by telecopy, a
notice shall be deemed given and received when the telecopy is transmitted to the party’s telecopy number specified above and confirmation of complete receipt is received by the transmitting party during normal business hours or on the next
Business Day if not confirmed during normal business hours. Either party may designate a change of address by written notice to the other by giving at least ten (10) days prior written notice of such change of address. Borrower’s registered
agent for service of process in New Jersey is: 
  

			
	 	  	 The Corporation Trust Company
 820 Bear Tavern Road
 West Trenton, New Jersey 08628

  
 Section 11.2
Amendments and Waivers. No amendment or waiver of any provision of the Environmental Indemnity Agreement and the Loan Documents shall be effective unless in writing and signed by the party against whom enforcement is sought.

  
 Section 11.3 Limitation on Interest. It
is the intention of the parties hereto to conform strictly to applicable usury laws. Accordingly, all agreements between Borrower and Lender with respect to the Loan are hereby expressly limited so that in no event, whether by reason of acceleration
of maturity or otherwise, shall the amount paid or agreed to be paid to Lender or charged by Lender for the use, forbearance or detention of the money to be lent hereunder or otherwise, exceed the maximum amount allowed by law. If the Loan would be
usurious under applicable law (including the laws of the State and the laws of the United States of America), then, notwithstanding anything to the contrary in the Loan Documents: (a) the aggregate of all consideration which constitutes interest
under applicable law that is contracted for, taken, reserved, charged or received under the Loan Documents shall under no circumstances exceed the maximum amount of interest allowed by applicable law, and any excess shall be credited on the Note by
the holder thereof; and (b) if maturity is accelerated by reason of an election by Lender, or in the event of any prepayment, then any consideration which constitutes interest may never include more than the maximum amount allowed by applicable law.
In such case, excess interest, if any, provided for in the Loan Documents or otherwise, to the extent permitted by applicable law, shall be amortized, prorated, allocated and spread from the date of advance until payment in full so that the actual
rate of interest is uniform through the term hereof. If such amortization, proration, allocation and spreading is not permitted under applicable law, then such excess interest shall be canceled automatically as of the date of such acceleration or
prepayment and, if theretofore paid, shall be credited on the Note. The terms and provisions of this Section 11.3 shall control and supersede every other provision of the Loan Documents. The Loan Documents are contracts made under and shall be
construed in accordance with and governed by the laws of the State, except that if at any time the laws of the United States of 

  

 LOAN AGREEMENT – Page 26 

 
America permit Lender to contract for, take, reserve, charge or receive a higher rate of interest than is allowed by the laws of the State (whether such
federal laws directly so provide or refer to the law of any state), then such federal laws shall to such extent govern as to the rate of interest which Lender may contract for, take, reserve, charge or receive under the Loan Documents. 

 
 Section 11.4 Invalid Provisions. If any provision of
any Loan Document or the Environmental Indemnity Agreement is held to be illegal, invalid or unenforceable, such provision shall be fully severable; the Environmental Indemnity Agreement and the Loan Documents shall be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a part thereof; the remaining provisions thereof shall remain in full effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance
therefrom; and in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as a part of such Environmental Indemnity Agreement and such Loan Document a provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible to be legal, valid and enforceable. 
  
 Section 11.5 Reimbursement of Expenses. Borrower shall pay all reasonable expenses incurred by Lender in connection with the Loan, including reasonable fees and expenses of Lender’s
attorneys, environmental, engineering and other consultants, and fees, charges or taxes for the recording or filing of Loan Documents. Borrower shall pay all expenses of Lender in connection with the administration of the Loan, including audit
costs, inspection fees, settlement of condemnation and casualty awards, premiums for title insurance and endorsements thereto, and Rating Agency fees and expenses in connection with confirmation letters, if required. Borrower shall, upon request,
promptly reimburse Lender for all amounts expended, advanced or incurred by Lender to collect the Note, or to enforce the rights of Lender under this Agreement, the Environmental Indemnity Agreement, or any Loan Document, or to defend or assert the
rights and claims of Lender under the Environmental Indemnity Agreement or the Loan Documents or with respect to the Projects (by litigation or other proceedings), which amounts will include all court costs, reasonable attorneys’ fees and
expenses, fees of auditors and accountants, and investigation expenses as may be incurred by Lender in connection with any such matters (whether or not litigation is instituted), together with interest at the Default Rate on each such amount from
the date of disbursement until the date of reimbursement to Lender, all of which shall constitute part of the Loan and shall be secured by the Loan Documents. 
  

Section 11.6 Approvals; Third Parties; Conditions. All approval rights retained or exercised by Lender with respect to leases,
contracts, plans, studies and other matters are solely to facilitate Lender’s credit underwriting, and shall not be deemed or construed as a determination that Lender has passed on the adequacy thereof for any other purpose and may not be
relied upon by Borrower or any other Person. This Agreement is for the sole and exclusive use of Lender and Borrower and may not be enforced, nor relied upon, by any Person other than Lender and Borrower. All conditions of the obligations of Lender
hereunder, including the obligation to make advances, are imposed solely and exclusively for the benefit of Lender, its successors and assigns, and no other Person shall have standing to require satisfaction of such conditions or be entitled to
assume that Lender will refuse to make advances in the absence of strict compliance with any or all of such conditions, and no other Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and all of which may be
freely waived in whole or in part by Lender at any time in Lender’s sole discretion. 
  
 Section 11.7 Lender Not in Control; No Partnership. None of the covenants or other provisions contained in this Agreement shall, or shall be deemed to, give Lender the right or power to exercise
control over the affairs or management of Borrower, the power of Lender being limited to the rights to exercise the remedies referred to in the Environmental Indemnity Agreement or the Loan Documents. The relationship between Borrower and Lender is,
and at all times shall remain, solely that of debtor and creditor. No covenant or provision of the Environmental Indemnity Agreement or the Loan 

  

 LOAN AGREEMENT – Page 27 

 
Documents is intended, nor shall it be deemed or construed, to create a partnership, joint venture, agency or common interest in profits or income between
Lender and Borrower or to create an equity in the Projects in Lender. Lender neither undertakes nor assumes any responsibility or duty to Borrower or to any other person with respect to the Projects or the Loan, except as expressly provided in the
Environmental Indemnity Agreement and the Loan Documents; and notwithstanding any other provision of the Environmental Indemnity Agreement or the Loan Documents: (a) Lender is not, and shall not be construed as, a partner, joint venturer, alter ego,
manager, controlling person or other business associate or participant of any kind of Borrower or its stockholders, members, or partners and Lender does not intend to ever assume such status; (b) Lender shall in no event be liable for any Debts,
expenses or losses incurred or sustained by Borrower; and (c) Lender shall not be deemed responsible for or a participant in any acts, omissions or decisions of Borrower or its stockholders, members, or partners. Lender and Borrower disclaim any
intention to create any partnership, joint venture, agency or common interest in profits or income between Lender and Borrower, or to create an equity in the Projects in Lender, or any sharing of liabilities, losses, costs or expenses. 

 
 Section 11.8 Contest of Certain Claims. Borrower may contest
the validity of Taxes or any mechanic’s or materialman’s lien asserted against any Project so long as (a) Borrower notifies Lender that it intends to contest such Taxes or liens, as applicable, (b) Borrower provides Lender with an
indemnity, bond or other security reasonably satisfactory to Lender assuring the discharge of Borrower’s obligations for such Taxes or liens, as applicable, including interest and penalties, (c) Borrower is diligently contesting the same by
appropriate legal proceedings in good faith and at its own expense and concludes such contest prior to the tenth (10th) day preceding the earlier to occur of the Maturity Date or the date on which such Project is scheduled to be sold for
non-payment, (d) Borrower promptly upon final determination thereof pays the amount of any such Taxes or liens, as applicable, together with all costs, interest and penalties which may be payable in connection therewith, and (e) notwithstanding the
foregoing, Borrower shall immediately upon request of Lender pay any such Taxes or liens, as applicable, notwithstanding such contest if, in the opinion of Lender, such Project or any part thereof or interest therein may be in danger of being sold,
forfeited, foreclosed, terminated, canceled or lost. Lender may pay over any cash deposit or part thereof to the claimant entitled thereto at any time when, in the reasonable judgment of Lender, the entitlement of such claimant is established.

  
 Section 11.9 Time of the Essence. Time is of the
essence with respect to this Agreement and the other Loan Documents. 
  
 Section 11.10 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Lender and Borrower and their respective successors and assigns, provided that neither Borrower nor any other Borrower
Party shall, without the prior written consent of Lender, assign any rights, duties or obligations hereunder. 
  
 Section 11.11 Renewal, Extension or Rearrangement. All provisions of the Environmental Indemnity Agreement and the Loan Documents shall
apply with equal effect to each and all promissory notes and amendments thereof hereinafter executed which in whole or in part represent a renewal, extension, increase or rearrangement of the Loan. 
  
 Section 11.12 Waivers. No course of dealing on the part of
Lender, its officers, employees, consultants or agents, nor any failure or delay by Lender with respect to exercising any right, power or privilege of Lender under the Environmental Indemnity Agreement and any of the Loan Documents, shall operate as
a waiver thereof. 
  
 Section 11.13 Cumulative Rights; Joint
and Several Liability. Rights and remedies of Lender under the Environmental Indemnity Agreement and the Loan Documents shall be cumulative, and 

  

 LOAN AGREEMENT – Page 28 

 
the exercise or partial exercise of any such right or remedy shall not preclude the exercise of any other right or remedy. If more than one person or entity
has executed this Agreement as “Borrower,” the obligations of all such persons or entities hereunder shall be joint and several. 
  
 Section 11.14 Singular and Plural. Words used in this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement in the
singular, where the context so permits, shall be deemed to include the plural and vice versa. The definitions of words in the singular in this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement shall apply to such words
when used in the plural where the context so permits and vice versa. 
  
 Section 11.15 Phrases. Except as otherwise expressly provided herein, when used in this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement, the phrase “including” shall mean
“including, but not limited to,” the phrase “satisfactory to Lender” shall mean “in form and substance satisfactory to Lender in all respects,” the phrase “with Lender’s consent” or “with
Lender’s approval” shall mean such consent or approval at Lender’s sole discretion, and the phrase “acceptable to Lender” shall mean “acceptable to Lender at Lender’s sole discretion.” 
  
 Section 11.16 Exhibits and Schedules. The exhibits and
schedules attached to this Agreement are incorporated herein and shall be considered a part of this Agreement for the purposes stated herein. 
  
 Section 11.17 Titles of Articles, Sections and Subsections. All titles or headings to articles, sections, subsections or other divisions of
this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement or the exhibits hereto and thereto are only for the convenience of the parties and shall not be construed to have any effect or meaning with respect to the other
content of such articles, sections, subsections or other divisions, such other content being controlling as to the agreement between the parties hereto. 
  
 Section 11.18 Promotional Material. Borrower authorizes Lender to issue press releases, advertisements and other promotional materials in
connection with Lender’s own promotional and marketing activities, including in connection with a Secondary Market Transaction, and such materials may describe the Loan in general terms or in detail and Lender’s participation therein in
the Loan. All references to Lender contained in any press release, advertisement or promotional material issued by Borrower shall be approved in writing by Lender in advance of issuance. 
  
 Section 11.19 Survival. All of the representations, warranties, covenants, and indemnities hereunder
(including environmental matters under Article 4), under the indemnification provisions of the other Loan Documents and under the Environmental Indemnity Agreement, shall survive the repayment in full of the Loan and the release of the liens
evidencing or securing the Loan, and shall survive the transfer (by sale, foreclosure, conveyance in lieu of foreclosure or otherwise) of any or all right, title and interest in and to the Projects to any party, whether or not an Affiliate of
Borrower. 
  
 Section 11.20 Waiver of Jury Trial. To
the maximum extent permitted by law, Borrower and Lender hereby knowingly, voluntarily and intentionally waive the right to a trial by jury in respect of any litigation based hereon, arising out of, under or in connection with this Agreement, any
other Loan Document, or the Environmental Indemnity Agreement, or any course of conduct, course of dealing, statement (whether verbal or written) or action of either party or any exercise by any party of their respective rights under the Loan
Documents and the Environmental Indemnity Agreement or in any way relating to the Loan or the Projects (including, without limitation, any action to rescind or cancel this Agreement, and any claim or defense asserting that this Agreement was
fraudulently induced or is otherwise void or voidable). This waiver is a material inducement for Lender to enter this Agreement. 
  

 LOAN AGREEMENT – Page 29 

 Section 11.21 Waiver of Punitive or Consequential Damages. Neither Lender nor Borrower
shall be responsible or liable to the other or to any other Person for any punitive, exemplary or consequential damages which may be alleged as a result of the Loan or the transaction contemplated hereby, including any breach or other default by any
party hereto. 
  
 Section 11.22 Governing Law. The
Loan Documents and the Environmental Indemnity Agreement shall be governed by and construed in accordance with the laws of the State and the applicable laws of the United States of America. 
  
 Section 11.23 Entire Agreement. This Agreement, the other Loan
Documents and the Environmental Indemnity Agreement embody the entire agreement and understanding between Lender and Borrower and supersede all prior agreements and understandings between such parties relating to the subject matter hereof and
thereof. Accordingly, the Loan Documents and the Environmental Indemnity Agreement may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the
parties. 
  
 Section 11.24 Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall constitute an original, but all of which shall constitute one document. 
  
 ARTICLE 12 
  
 LIMITATIONS ON LIABILITY 
  
 Section 12.1 Limitation on Liability. Except as provided below, Borrower shall not be personally liable for amounts due under the Loan Documents. Borrower shall be personally liable to Lender for any
deficiency, loss or damage suffered by Lender because of: (a) Borrower’s commission of a criminal act; (b) the failure to comply with provisions of the Loan Documents prohibiting the sale, transfer or encumbrance of the Projects, any other
collateral, or any direct or indirect ownership interest in Borrower; (c) the misapplication by Borrower or any Borrower Party of any funds derived from the Projects, including security deposits, insurance proceeds and condemnation awards in
violation of this Agreement or any of the other Loan Documents; (d) the fraud or misrepresentation by Borrower or any Borrower Party made in or in connection with the Loan Documents or the Loan; (e) Borrower’s collection of rents more than one
month in advance or entering into or modifying leases, or receipt of monies by Borrower or any Borrower Party in connection with the modification of any leases, in violation of this Agreement or any of the other Loan Documents; (f) Borrower’s
failure to apply proceeds of rents or any other payments in respect of the leases and other income of the Projects or any other collateral when received to the costs of maintenance and operation of the Projects and to the payment of taxes, lien
claims, insurance premiums, Debt Service, the Funds, and other amounts due under the Loan Documents to the extent the Loan Documents require such proceeds to be then so applied; (g) Borrower’s interference with Lender’s exercise of rights
under the Assignments of Leases and Rents; (h) Borrower’s failure to maintain insurance as required by this Agreement; (i) damage or destruction to any Project caused by the acts or omissions of Borrower, its agents, employees, or contractors;
(j) Borrower’s obligations with respect to environmental matters under Article 4; (k) Borrower’s failure to pay for any loss, liability or expense (including attorneys’ fees) incurred by Lender arising out of any claim or allegation
made by Borrower, its successors or assigns, or any creditor of Borrower, that this Agreement or the transactions contemplated by the Loan Documents and the Environmental Indemnity Agreement establishes a joint venture, partnership or other similar
arrangement between Borrower and Lender; (l) any brokerage commission or finder’s fees claimed in connection with the transactions contemplated by the Loan Documents; (m) the filing by Borrower or any of its members, partners, or shareholders,
or the filing against Borrower, of a petition under the United States Bankruptcy Code or similar state insolvency laws; or (n) uninsured damage to any Project resulting from acts of terrorism. Nothing herein shall be deemed 

  

 LOAN AGREEMENT – Page 30 

 
to be a waiver of any right which Lender may have under Sections 506(a), 506(b), 1111(b) or any other provision of the United States Bankruptcy Code, to file
a claim for the full amount due to Lender under the Loan Documents or to require that all collateral shall continue to secure the amounts due under the Loan Documents. 
  
 Section 12.2 Limitation on Liability of Lender’s Officers, Employees, Etc. Any obligation or liability
whatsoever of Lender which may arise at any time under this Agreement, any other Loan Document, or the Environmental Indemnity Agreement shall be satisfied, if at all, out of the Lender’s assets only. No such obligation or liability shall be
personally binding upon, nor shall resort for the enforcement thereof be had to, the property of any of Lender’s shareholders, directors, officers, employees or agents, regardless of whether such obligation or liability is in the nature of
contract, tort or otherwise. 
  
 [Remainder of page intentionally left blank.] 
  

 LOAN AGREEMENT – Page 31 

 EXECUTED as of the date first written above. 
  

			
	 LENDER:
  
 GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation

		
	By:	 	 /s/ David R. Martindale

	 	 	 David R. Martindale
 Managing Director

  

							
	 BORROWER:
  
 EXTRA SPACE OF NEW JERSEY, L.L.C.,
 a New Jersey limited liability company

		
	By:	 	ESS New Jersey LLC, a Delaware limited liability company, its sole member
			
	 	 	By:	 	/s/ Kent W. Christensen
	 	 	 	 	 Name:
	 	 Kent W. Christensen

	 	 	 	 	 Title:
	 	 Manager

  

 LOAN AGREEMENT – Page S-1 

 JOINDER 
  
 By executing this Joinder (the “Joinder”), the undersigned (“Joinder Parties”) jointly and severally
guaranty the performance by Borrower of all obligations and liabilities for which Borrower is personally liable under Section 12.1 of this Agreement. This Joinder is a guaranty of full and complete payment and performance and not of collectability.

  
 1. Waivers. To the fullest extent permitted by
applicable law, each Joinder Party waives all rights and defenses of sureties, guarantors, accommodation parties and/or co-makers and agrees that its obligations under this Joinder shall be primary, absolute and unconditional, and that its
obligations under this Joinder shall be unaffected by any of such rights or defenses, including: 
  
 (a) the unenforceability of any Loan Document against Borrower and/or any other Joinder Party; 
  
 (b) any release or other action or inaction taken by Lender
with respect to the collateral, the Loan, Borrower and/or other Joinder Party, whether or not the same may impair or destroy any subrogation rights of any Joinder Party, or constitute a legal or equitable discharge of any surety or indemnitor;

  
 (c) the existence of any collateral or other
security for the Loan, and any requirement that Lender pursue any of such collateral or other security, or pursue any remedies it may have against Borrower and/or any other Joinder Party; 
  
 (d) any requirement that Lender provide notice to or obtain
a Joinder Party’s consent to any modification, increase, extension or other amendment of the Loan, including the guaranteed obligations; 
  
 (e) any right of subrogation (until payment in full of the Loan, including the guaranteed obligations, and the expiration of any
applicable preference period and statute of limitations for fraudulent conveyance claims); 
  
 (f) any defense based on any statute of limitations; 
  
 (g) any payment by Borrower to Lender if such payment is held to be a preference or fraudulent conveyance
under bankruptcy laws or Lender is otherwise required to refund such payment to Borrower or any other party; and 
  
 (h) any voluntary or involuntary bankruptcy, receivership, insolvency, reorganization or similar proceeding affecting Borrower or any of
its assets. 
  
 2. Agreements. Each Joinder Party
further represents, warrants and agrees that: 
  
 (a) The obligations under this Joinder are enforceable against each such party and are not subject to any defenses, offsets or counterclaims; 
  
 (b) The provisions of this Joinder are for the benefit of Lender and its successors and assigns; 
  

 JOINDER – Page 1 

 (c) Lender shall have the right to (i) renew, modify, extend or accelerate the Loan, (ii)
pursue some or all of its remedies against Borrower or any Joinder Party, (iii) add, release or substitute any collateral for the Loan or party obligated thereunder, and (iv) release Borrower or any Joinder Party from liability, all without notice
to or consent of any Joinder Party (or other Joinder Party) and without affecting the obligations of any Joinder Party (or other Joinder Party) hereunder; 
  
 (d) Each Joinder Party covenants and agrees to furnish to Lender, within ninety (90) days after the end of each fiscal year of such
Joinder Party, a current (as of the end of such fiscal year) balance sheet of such Joinder Party, in scope and detail reasonably satisfactory to Lender, certified by the chief financial representative of such Joinder Party and, if required by
Lender, prepared on a review basis and certified by an independent public accountant reasonably satisfactory to Lender; and 
  
 (e) To the maximum extent permitted by law, each Joinder Party hereby knowingly, voluntarily and intentionally waives the right to a trial
by jury in respect of any litigation based hereon. This waiver is a material inducement to Lender to enter into this Agreement. 
  
 This Joinder shall be governed by the laws of the State. 
  
 Executed as of March 8, 2004. 
  

	
	JOINDER PARTIES:
	
	 /s/ Kenneth M. Woolley

	 KENNETH M. WOOLLEY

  

 JOINDER – Page 2 

 EXHIBIT A-1 
  
 [LEGAL DESCRIPTION OF EDISON PROJECT] 
  
 ALL that certain lot, parcel or tract of land, situate and lying in the TOWNSHIP OF EDISON, County of MIDDLESEX and State of
New Jersey being more particularly described as follows: 
  
 BEGINNING at a point
on the Northerly sideline of Oak Tree Road, (36 feet from centerline) said point being distant 129.00 feet on a course of North 81 degrees 49 minutes 0 seconds West along said Northerly sideline of Oak Tree Road from its intersection with the
Westerly sideline of Henry Street; thence 
  

	(1)	Along the Northerly line of Oak Tree Road North 81 degrees 49 minutes 0 seconds West a distance of 357.39 feet to a point; thence 

  

	(2)	North 6 degrees 21 minutes 0 seconds East a distance of 102.00 feet to a point; thence 

  

	(3)	South 83 degrees 39 minutes 47 seconds East a distance of 22.24 feet to a point; thence 

  

	(4)	North 6 degrees 21 minutes 0 seconds East a distance of 204.80 feet to a point; thence 

  

	(5)	North 81 degrees 49 minutes 0 seconds West a distance of 147.22 feet to a point; thence 

  

	(6)	North 4 degrees 8 minutes 45 seconds East a distance of 214.13 feet to a point; thence 

  

	(7)	South 81 degrees 51 minutes 15 seconds East a distance of 147.13 feet to a point; thence 

  

	(8)	South 75 degrees 3 minutes 5 seconds East distance of 250.97 feet to a point; thence 

  

	(9)	South 5 degrees 28 minutes 0 seconds West a distance of 62.53 feet to a point; thence 

  

	(10)	South 82 degrees 20 minutes 0 seconds East a distance of 123.15 feet to a point; thence 

  

	(11)	South 6 degrees 21 minutes 0 seconds West a distance of 197.30 feet to a point; thence 

  

	(12)	North 83 degrees 39 minutes 0 seconds West a distance of 28.93 feet to a point; thence 

  

	(13)	South 6 degrees 21 minutes 0 seconds West a distance of 232.13 feet to the point and place of BEGINNING. 

  
 Together with appurtenant rights under the sewer line easement, water line easement and access easement granted under the Declaration and
Deed of Easement, dated March 29, 1990 and recorded in Deed Book 3846, Page 324, and 
  
 Together with non exclusive rights under emergency access easement granted under Deed of Emergency Access Easement dated May 12, 1998 and recorded in Deed Book 4513, Page 16. 
  
 Being in accordance with a survey prepared by Robert R. Stout, PE, LS, dated January 30, 2004, last revised February 3, 2004. 
  
 Being also known as (reported for informational purposes only): Lot 39.A, Block 546.I, on the
official tax map of the Township of Edison, Middlesex County, New Jersey. 
  

 EXHIBIT A-1 – Page 1 

 EXHIBIT A-2 
  
 [LEGAL DESCRIPTION OF EGG HARBOR PROJECT] 
  
 ALL that certain lot, parcel or tract of land, situate and lying in the TOWNSHIP OF EGG HARBOR, County of ATLANTIC and State
of New Jersey being more particularly described as follows: 
  
 BEGINNING at a
point in the Northwesterly sideline of Fire Road (90 feet wide) where the same is intersected by the Northeasterly sideline of Delilah Road (90 feet wide) and running; thence 
  

	(1)	North 50 degrees 15 minutes 56 seconds West, leaving said sideline of Fire Road and along said sideline of Delilah Road 324.28 feet to a point; thence 

  

	(2)	North 39 degrees 44 minutes 05 seconds East, leaving said sideline of Delilah Road, 440.02 feet to a point; thence 

  

	(3)	North 50 degrees 15 minutes 56 seconds West, 417.83 feet to a corner of Lot 3, Block 399 A; thence 

  

	(4)	North 18 degrees 59 minutes 56 seconds West, along said Lot 3, 125 feet to another corner of said Lot 3;thence 

  

	(5)	North 71 degrees 00 minutes 04 seconds East, still along said Lot 3, 50.00 feet to another corner of Lot 3; thence 

  

	(6)	North 18 degrees 59 minutes 56 seconds West, still along said Lot 3, 125.00 feet to another corner of said Lot 3; thence 

  

	(7)	North 71 degrees 00 minutes 04 seconds East, still along said Lot 3, 245.55 feet to a concrete monument found in the Southwesterly line of the Atlantic City Electric Co. right of
way (200 feet wide); thence 

  

	(8)	South 54 degrees 22 minutes 12 seconds East, along said right of way and passing over a concrete monument found at 304 feet a distance of 598.04 feet to a point; thence

  

	(9)	South 39 degrees 44 minutes 05 seconds West, leaving said Southwesterly right of way line, 438.77 feet to a point; thence 

  

	(10)	South 50 degrees 15 minutes 56 seconds East, 321.46 feet to the aforementioned Northwesterly sideline of Fire Road; thence 

  

	(11)	South 54 degrees 53 minutes 48 seconds West, along said sideline of Fire Road, 441.816 feet to the point and place of BEGINNING. 

  
 The above description is in accordance with a survey prepared by Bock &
Clarks’ National Surveyors Network, Robert R. Stout, LS, dated January 30, 2004, last revised February 9, 2004. 
  
 Being also known as (reported for informational purposes only): Lot 13, Block 704, on the official tax map of Egg Harbor Township. 
  

 EXHIBIT A-2 – Page 1 

 EXHIBIT A-3 
  
 [LEGAL DESCRIPTION OF HOWELL PROJECT] 
  
 ALL that certain lot, parcel or tract of land, situate and lying in the TOWNSHIP OF HOWELL, County of MONMOUTH and State of
New Jersey being more particularly described as follows: 
  
 BEGINNING at an iron
rod in the Westerly Right of Way line of State Highway Route 9 (110.00 feet wide), leading from Lakewood to Freehold, a distance of 199.80 feet from the Northerly Right of Way line of Mathews lane, thence. 
  

	(1)	North 70 degrees 00 minutes 42 seconds West a distance of 601.45 feet to a concrete monument found; thence 

  

	(2)	North 79 degrees 46 minutes 26 seconds West a distance of 417.46 feet to a concrete monument found; thence 

  

	(3)	North 02 degrees 30 minutes 06 seconds East a distance of 281.40 feet to a concrete monument found; thence 

  

	(4)	South 84 degrees 09 minutes 40 seconds East a distance of 931.36 feet to a point on a curve where an iron rod was set; thence 

  

	(5)	Along a curve to the left having a radius of 18,057.25 feet and an arc length of 171.69 feet to the point of tangency on the Westerly Right of Way line of State Highway Route 9;
thence 

  

	(6)	South 04 degrees 40 minutes 08 seconds East a distance of 295.89 feet along the Westerly Right of Way of State Highway Route 9 to the point and place of BEGINNING.

  
 The above description is in accordance with a
survey prepared by Bock & Clarks’ National Surveyors Network, Robert R. Stout, LS, dated January 30, 2004, last revised February 9, 2004. 
  
 Being also known as (reported for informational purposes only): Lot 19, Block 73, on the official tax map of Howell Township. 
  

 EXHIBIT A-3 – Page 1 

 EXHIBIT A-4 
  
 [LEGAL DESCRIPTION OF OLD BRIDGE PROJECT] 
  
 ALL that certain lot, parcel or tract of land, situate and lying in the TOWNSHIP OF OLD BRIDGE, County of MIDDLESEX and
State of New Jersey being more particularly described as follows: 
  
 BEGINNING at
a concrete monument on the new Northerly right of way of Old Bridge Matawan Road (Middlesex County Rt. 516) being at the end of the following 2 courses: BEGINNING at the intersection of the center of Old Bridge Matawan Road (Middlesex County Rt.
516) with the center of Jake Brown Road; thence 
  

	a.	Southeasterly along the center of Old Bridge Matawan Road (Middlesex County Rt. 516), 936.69 feet to a point; thence 

  

	b.	North 25 degrees 26 minutes 00 seconds East, 40.00 feet to a concrete monument and BEGINNING point and continuing; thence 

  

	(1)	North 25 degrees 16 minutes 00 seconds East along the Easterly line of Lot 2 in Block 9000 a distance of 478.48 feet to a pipe (found); thence 

  

	(2)	South 64 degrees 44 minutes 00 seconds East along the Southerly line of Lot 2 in Block 9000, a distance of 700.00 feet to a pipe (found); thence 

  

	(3)	South 25 degrees 16 minutes 00 seconds West along the line of Lot 5 in Block 9000, a distance of 298.48 feet to a point; thence 

  

	(4)	North 64 degrees 44 minutes 00 seconds West along the Northerly line of Lot 43 in Block 9000, a distance of 100 feet to a point; thence 

  

	(5)	South 25 degrees 16 minutes 00 seconds West along the Westerly line of Lot 43 in Block 9000, a distance of 180.00 feet to a monument on the new North right of way of Old Bridge
Matawan Road; thence 

  

	(6)	North 64 degrees 44 minutes 00 seconds West along said right of way of Old Bridge Matawan Road, 600.00 feet to the point or place of BEGINNING. 

  
 Being in accordance with a survey prepared by Robert R. Stout, PE, LS, dated
January 30, 2004, last revised February 3, 2004. 
  
 Being also known as (reported
for informational purposes only): Lot 4, Block 9000, on the official tax map of the Township of Old Bridge, Middlesex County, New Jersey. 
  

 EXHIBIT A-4 – Page 1 

 EXHIBIT A-5 
  
 [LEGAL DESCRIPTION OF WOODBRIDGE PROJECT] 
  
 ALL that certain lot, parcel or tract of land, situate and lying in the TOWNSHIP OF WOODBRIDGE, County of MIDDLESEX and
State of New Jersey being more particularly described as follows: 
  
 BEGINNING at
a point in the Northeasterly right of way line of the Conrail Port Reading Branch Railroad, 100 feet wide; said point being distant 86.10 feet on a course bearing on North 58 degrees 08 minutes 57 seconds West from the point of intersection formed
by the Northeasterly right of way line of the Conrail Port Reading Branch Railroad with the Northwesterly right of way line of the Conrail Port Reading Branch Railroad with the Northwesterly right of way line of New Jersey State Highway Route No. 25
(also known as U.S. Route No. 1) as shown and delineated on a certain Map entitled, “New Jersey Department of Transportation General Property Parcel Map Route U.S. 1 (1953) Section 7” Sheet 1 of 8; running thence from said beginning point:

  

	(1)	Along the Northeasterly right of way line of the Conrail Port Reading Branch Railroad North 58 degrees 08 minutes 57 seconds West a distance of 729.78 feet to a point and corner;
thence 

  

	(2)	Along lands formerly of Brown and now belonging to Elizabethtown Gas Company North 34 degrees 59 minutes 41 seconds East a distance of 154.68 feet to a point and corner in the
Southwesterly line of formerly of Freeman, now belonging to Elizabethtown Gas Company; thence 

  

	(3)	Along the Southwesterly line of lands of Elizabethtown Gas Company formerly of Freeman South 44 degrees 53 minutes 00 seconds East a distance of 34.34 feet to a point and corner;
thence 

  

	(4)	Along the Southeasterly line of said lands North 55 degrees 34 minutes 00 seconds East a distance of 186.12 feet to a point and corner; thence 

  

	(5)	Continuing along the Southwesterly line of the aforementioned lands South 45 degrees 24 minutes 15 seconds East a distance of 283.18 feet to an angle point, also being the Northwest
corner of lands formerly of Murray now belonging to Elizabethtown Gas Company; thence 

  

	(6)	Along the Southwesterly line of said lands South 45 degrees 15 minutes 45 seconds East a distance of 128.28 feet to a point and corner; thence 

  

	(7)	Along the Northwesterly line of lands belonging to Elizabethtown Gas Company formerly of Murray South 56 degrees 24 minutes 15 seconds West a distance of 176.13 feet to a point and
corner; thence 

  

	(8)	Along the Southeasterly line of lands formerly of Murray now belonging to Elizabethtown Gas Company, South 45 degrees 10 minutes 05 seconds East a distance of 195.93 feet to a point
and corner; thence 

  

	(9)	Along the Northeasterly line of a tract of land conveyed by Elizabethtown Gas Company to Hazel Hannan, Deed Book 2959 Page 828, South 57 degrees 28 minutes 15 seconds East a
distance of 86.95 feet to a point and corner in the Northwesterly line of lands belonging to the State of New Jersey (DOT); thence 

  

 EXHIBIT A-5 – Page 1 

	(10)	Along said line South 58 degrees 24 minutes 37 seconds West a distance of 19.06 feet to a point and corner; thence 

  

	(11)	Along the Southwesterly line of lands belonging to the State of New Jersey (D.O.T.) South 45 degrees 10 minutes 05 seconds East, a distance of 16.02 feet returning to the point and
place of BEGINNING. 

  
 TOGETHER WITH: 
  

	(1)	Appurtenant rights for water drainage granted under Deed of Easement dated October 9, 1986 and recorded in Deed Book 3568, Page 020. 

  

	(2)	Non exclusive sign easement and access easement granted under Sign Easement Agreement dated March 27, 2001 and recorded in Deed Book 4893, Page 307. 

  
 Being in accordance with a survey prepared by Robert R. Stout, PE, LS, dated
January 30, 2004, last revised February 3, 2004. 
  
 Being also known as (reported
for informational purposes only): Lots 3.A1 & 3B1, Block 383, on the official tax map of the Township of Woodbridge, Middlesex County, New Jersey. 
  

 EXHIBIT A-5 – Page 2 

 SCHEDULE 1.1 
  
 PROJECT INFORMATION 
  

									
	 Name

	 	 Address

	 	 City

	 	 State

	 	 Project Type

	 Edison
	 	1660 Oak Tree Road	 	Edison	 	NJ	 	Self Storage
					
	 Egg Harbor
	 	6730 Delilah Road	 	Egg Harbor	 	NJ	 	Self Storage
					
	 Howell
	 	5440 Route 9 South	 	Howell	 	NJ	 	Self Storage
					
	 Old Bridge
	 	2540 Country Road 516	 	Old Bridge	 	NJ	 	Self Storage
					
	 Woodbridge
	 	725 Route 1 South	 	Woodbridge	 	NJ	 	Self Storage

  

 SCHEDULE 1.1 – Page 1 

 SCHEDULE I 
  
 DEFEASANCE 
  
 1. In accordance with Section 2.3 of the Loan Agreement, Borrower may obtain the release of all, but not less than all, of the Projects from the lien of
the Mortgages upon the satisfaction of the following conditions precedent: 
  
 (a) not less than thirty (30) days prior written notice to Lender specifying a regularly scheduled payment date (the “Release Date”) on which the Defeasance Deposit (hereinafter defined) is to
be made; 
  
 (b) the payment to Lender of
interest accrued and unpaid on the principal balance of the Note to and including the Release Date; 
  
 (c) the payment to Lender of all other sums, not including scheduled interest or principal payments, due under the Note, the Mortgages,
the Assignments of Leases and Rents, and the other Loan Documents; 
  
 (d) the payment to Lender of the Defeasance Deposit and a $5,000 non-refundable processing fee; 
  
 (e) the delivery to Lender of: 
  

	 	(i)	a security agreement in form and substance satisfactory to Lender, creating a first priority lien on the Defeasance Deposit and the U.S. Obligations (hereinafter defined) purchased
on behalf of Borrower with the Defeasance Deposit in accordance with this Schedule I (the “Security Agreement”); 

  

	 	(ii)	a release of each Project from the lien of the Mortgage encumbering such Project (for execution by Lender) in a form appropriate for the jurisdiction in which such Project is
located; 

  

	 	(iii)	an officer’s certificate of Borrower certifying that the requirements set forth in this subparagraph (e) have been satisfied; 

  

	 	(iv)	an opinion of counsel in form and substance, and rendered by counsel satisfactory to Lender at the expense of Borrower, stating, among other things, that Lender has a perfected
first priority security interest in the Defeasance Deposit and the U.S. Obligations purchased by or on behalf of Borrower and pledged to Lender and as to enforceability of the Security Agreement and other documents delivered in connection therewith;

  

	 	(v)	 if required by the Rating Agencies and/or pooling and servicing agreement relating to the Secondary Market Transaction, evidence in writing from the applicable
Rating Agencies to the effect that such release will not result in a qualification, downgrade or withdrawal of any 

  

 SCHEDULE I – Page 1 

	 	 
rating in effect immediately prior to such defeasance for any securities issued in connection with a Secondary Market Transaction; and

  

	 	(vi)	such other certificates, documents or instruments as Lender may reasonably request. 

  
 (f) if the Loan has been sold in a Secondary Market Transaction, Lender shall have received an opinion of
counsel acceptable to Lender in form satisfactory to Lender stating, among other things, that the substitution of collateral shall not cause the holder of the Loan to fail to maintain its status as a real estate mortgage investment conduit (REMIC);
and 
  
 (g) Lender shall have received a
certificate from a nationally recognized independent certified public accountant acceptable to Lender, in form and substance satisfactory to Lender, certifying that the U.S. Obligations purchased with the Defeasance Deposit will generate sufficient
sums to satisfy the obligations of Borrower under the Note and this Schedule I as and when such obligations become due. 
  
 In connection with the conditions set forth above, Borrower hereby appoints Lender as its agent and attorney-in-fact for the purpose of using the Defeasance Deposit to
purchase or cause to be purchased U.S. Obligations which provide payments on or prior to, but as close as possible to, all successive scheduled payment dates after the Release Date upon which interest and principal payments are required under the
Note (including the amounts due on the Maturity Date) and in amounts equal to the scheduled payments due on such dates under the Note plus Lender’s estimate of administrative expenses and applicable federal income taxes associated with or to be
incurred by the Successor Borrower during the remaining term of, and applicable to, the Loan (the “Scheduled Defeasance Payments”). Borrower, pursuant to the Security Agreement or other appropriate document, shall authorize
and direct that the payments received from the U.S. Obligations may be made directly to Lender and applied to satisfy the obligations of Borrower under the Note and this Schedule I. 
  
 2. Upon compliance with the requirements of this Schedule I, each Project shall be released from the lien of the Mortgage
encumbering such Project and the pledged U.S. Obligations shall be the sole source of collateral securing the Note. Any portion of the Defeasance Deposit in excess of the amount necessary to purchase the U.S. Obligations required by the preceding
paragraph and to otherwise satisfy the Borrower’s obligations under this Schedule I shall be remitted to Borrower with the release of the Projects from the lien of the Mortgages. In connection with such release, a successor entity meeting
Lender’s Single Purpose Entity criteria, adjusted, as applicable, for the Defeasance contemplated by this Schedule (the “Successor Borrower”) shall be established by Borrower subject to Lender’s approval (or at
Lender’s option, by Lender) and Borrower shall transfer and assign all obligations, rights and duties under and to the Note together with the pledged U.S. Obligations to such Successor Borrower pursuant to an assignment and assumption agreement
in form and substance satisfactory to Lender (the “Assignment Agreement”). Such Successor Borrower shall assume the obligations under the Note and the Security Agreement and Borrower shall be relieved of its obligations
thereunder, except that Borrower shall be required to perform its obligations pursuant to this Schedule I, including maintenance of the Successor Borrower, if applicable. Borrower shall pay $1,000.00 to any such Successor Borrower as consideration
for assuming the obligations under the Note and the Security Agreement pursuant to the Assignment Agreement. Notwithstanding anything in the Mortgages to the contrary, no other assumption fee shall be payable upon a transfer of the Note in
accordance with this paragraph, but Borrower shall pay all costs and expenses incurred by Lender in connection with this Schedule, including Lender’s reasonable attorneys’ fees and expenses, costs and expenses in obtaining review and
confirmation by the applicable Rating Agencies as required herein, and any administrative and tax expenses associated with or incurred by the Successor Borrower. 
  

 SCHEDULE I – Page 2 

 3. For purposes of this Schedule I, the following terms shall have the following meanings: 
  
 (a) The term “Defeasance Deposit”
shall mean an amount equal to the Yield Maintenance Amount, any costs and expenses incurred or to be incurred in the purchase of U.S. Obligations necessary to meet the Scheduled Defeasance Payments (including Lender’s estimate of administrative
expenses and applicable federal income taxes associated with or to be incurred by the Successor Borrower during the remaining term of, and applicable to, the Loan) and any revenue, documentary stamp or intangible taxes or any other tax or charge due
in connection with the transfer of the Note or otherwise required to accomplish the agreements of this Schedule I. 
  
 (b) The term “Yield Maintenance Amount” shall mean the amount which will be sufficient to purchase U.S.
Obligations providing the required Schedule Defeasance Payments; and 
  
 (c) The term “U.S. Obligations” shall mean “Government Securities” as defined in the REMIC regulations, specifically, Treasury Regulation § 1.860G-2(a)(8)(i). 
  

 SCHEDULE I – Page 3 

 SCHEDULE II 
  
 REQUIRED REPAIRS 
  

				
	 Edison Project:
	  	 	 
		
	 Asphalt pavement crack routing and sealing
	  	$	5,000
		
	 Replace door hardware with lever type
	  	 	300
		
	 Clean rust off entrance signage
	  	 	 
		
	 Replace asphalt shingles
	  	 	 
		
	 Replace missing knockout panels
	  	 	 
		
	 Old Bridge Project:
	  	 	 
		
	 Remove algae growth on exterior walls
	  	 	7,875
		
	 Woodbridge Project:
	  	 	 
		
	 Asphalt pavement crack routing and sealing
	  	 	6,250
		
	 Replace door hardware with lever type
	  	 	200
		
	 Modify door threshold height
	  	 	140
		
	 Provide ADA parking stall
	  	 	150
		
	 Wire brush and clean rust along base of buildings
	  	 	 
		
	 Clean and wire brush rusted storage room floors
	  	 	 
		
	 Seal slab-on-grade cracks
	  	 	 
		
	 Identify electrical disconnect switches
	  	 	 
		
	 Remove storage material and debris from electrical switch room
	  	 	 
		
	 Total
	  	$	19,915
	 	  	
	

	 125%
	  	$	24,894
	 	  	
	

  

 SCHEDULE II – Page 1

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