Document:

Exhibit 10.17

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time,
this "Agreement") is entered into as of [                , 2017],
by and between MDR GREENSBORO HI TRS, LLC, a Delaware limited liability company, having an address at [                                                                                        ] (together with its
respective permitted successors and assigns, collectively "Debtor" and/or "Tenant'), and BENEFIT
STREET PARTNERS REALTY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an address at 9 West 57th Street,
Suite 4920, New York, New York 10019, Attention:
Micah Goodman, General Counsel (together with its successors and/or assigns and any servicer, "Secured
Party").

 

WITNESSETH:

 

A.
Pursuant to the Loan Agreement dated as of the date hereof (as amended, modified, supplemented, restated or replaced from time
to time, the "Loan Agreement"), among Secured
Party, PMI Greensboro, LLC, a Delaware limited liability
company ("TIC Borrower 1"), and MDR Greensboro, LLC, a Delaware limited liability company ("TIC Borrower 2"
and, together with TIC Borrower 1 and their respective permitted successors and assigns, "Borrower"), Secured Party has
agreed to provide financing to Borrower secured by a Deed of Trust, Security Agreement, Assignment of Leases and Fixture Filing
dated as of the date hereof (as amended, modified, supplemented, restated or replaced from time to time,
the "Security Instrument"),
on certain real property owned by Borrower and commonly known as the Hilton Inn Greensboro and more
particularly described on Exhibit A attached to the Security Instrument (the "Property") (capitalized terms used herein
and not herein defined shall have the meanings assigned to such terms in the Loan Agreement);

 

B.
Borrower leased the Property to Tenant pursuant to that certain Lease Agreement between Borrower and Tenant dated of even date
herewith (as the same may be amended, supplemented or modified from time to time, the "Lease");

 

C. Tenant
operates a hotel on the Property (the "Hotel”) and Marshall Hotels and Resorts, Inc., a Maryland corporation
("Manager"), manages the Hotel pursuant to that certain Management Agreement by ad between Tenant and Manager
dated as of the date hereof (the "Management Agreement ");

 

D. Pursuant
to certain of the Loan Documents, Borrower, Tenant and Manager have agreed to deposit all Rents in the Clearing Account as and
when required by the terms of the Loan Documents;

 

E. Debtor
hereby acknowledges and agrees that Secured Party is unwilling to make the Loan to Borrower unless Debtor grants Secured Party
the security interests described herein and Debtor will benefit from Secured Party making the Loan to Borrower.

 

NOW
THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration the sufficiency
of which is hereby acknowledged, the parties hereto agree
as follows:

 

1.          Grant.

 

To
secure the payment, performance and observance of the Obligations, Debtor hereby grants to Secured Party a continuing security
interest in all of the Collateral (as defined and described below) (the ("Security
Interest").  The Security Interest attaches immediately upon the execution hereof, or, as to any after-acquired Collateral,
as soon as Debtor acquires rights therein.

 

     

     

    

  

2.          Description
of Collateral

 

All
fixtures and personal property of any kind whatsoever now owned or hereafter acquired by Debtor, whether tangible or intangible,
which are or will be placed upon, derived from, or used in any connection with the Property and the improvements thereon (the "Improvements").
The foregoing property shall include all Accounts, Chattel Paper, Cash Proceeds, Commercial Tort Claims, Deposit Accounts, Documents,
Electronic Chattel Paper, Equipment, Fixtures, Goods, General
Intangibles, Instruments, Inventory, Investment Property, Letter of Credit Rights, Noncash Proceeds, Software, Supporting
Obligations and Tangible Chattel
Paper (as those terms are defined in the UCC (as defined below)),
including specifically and without
limitation all furniture, furnishings, goods, supplies, office equipment, office machines, office furnishings, fixtures, machines,
plans and specifications, books and records, contracts and contract
rights, licenses (including,
without limitation,
any alcoholic beverage license) causes of
action, claims, condemnation proceeds,
profits, concessions, fees, leases and lease guaranties,
rents, security deposits, utility deposits, utility contracts,
maintenance contracts and agreements, management contracts, service contracts, negotiable instruments, instruments, letters of
credit, policies and proceeds of insurance, cash bank accounts,
and refunds for taxes or premiums of any insurance, equipment, fixtures, furnishings, inventory and supplies, landscaping equipment,
tools and supplies, mowers,
sprinkler and irrigation systems,
facilities and equipment, accounts receivable and any Rents, including, without
limitation any payments
from users of the Hotel and
all other revenue arising from the operation of the Hotel
including, without limitation, income
and revenues from guest rooms, food
and beverages, banquets, telephone services laundry,
vending, television, movies, meetings,
and such other activities
related to the ownership, operation or management of the
Hotel all of which shall, to the extent provided in the
Loan Agreement, be deposited
in the Clearing Account. All of the foregoing property is collectively referred to herein as the
"Collateral."

 

With
respect to the defined terms in this Section 2, "UCC" shall mean the Uniform Commercial Code as in effect on the date
hereof in the State of Delaware.

 

For
the balance of this Agreement, "UCC" shall mean the Uniform Commercial Code as in effect on the date hereof in the State
of Delaware; provided that if by reason of mandatory provisions of law, the perfection or the
effect of perfection or non-perfection
of the Security Interests in any
of the Collateral or the availability of
any remedy hereunder is governed
by the Uniform Commercial Code as in effect on
or after the date hereof in any other jurisdiction, "UCC" means the Uniform Commercial Code as in
effect in such other jurisdiction for
purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such
remedy.

 

3.          Security
for Obligations

 

This Agreement
secures the payment and performance of the Obligations.

 

4.          Debtor
Remains Liable

 

Anything
herein to the contrary notwithstanding: (a) Debtor shall remain liable under the contracts and agreements included in the Collateral
to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement
had not been executed; (b) the exercise by Secured Party of any of the rights hereunder
shall not release Debtor from any of its duties or obligations under the contracts and agreements included in the Collateral; (c)
Secured Party shall have no obligation or liability under the contracts and agreements included in the Collateral by reason of
this Agreement, nor shall Secured Party be obligated to perform any of the obligations or duties of Debtor thereunder or to take
any action to collect or enforce any claim for payment assigned hereunder; and (d) Secured Party shall not have any liability in
contract or tort for Debtor's acts or omissions.

 

    	 	2	 

     

    

 

5.          Representations
and Warranties

 

Debtor represents and warrants as follows:

 

a.           Location
of Equipment. Inventory
and Fixtures. All
of the Equipment, Inventory and Fixtures are located at the Property. All hereafter acquired or arising Equipment, Inventory or
Fixtures will be located at the Property.

 

b.           State
of Organization. Debtor was organized and remains organized solely under the laws of the state identified in the first paragraph
of this Agreement.

 

c.           Ownership
of Collateral; Bailees.
Debtor owns the Collateral, and will own all after-acquired Collateral, free and clear of any lien other than Permitted Encumbrances.
No effective financing statement or other form of lien notice covering all or any part of the Collateral is on file in any recording
office and none of the Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor. No other Person
has Control (as defined below) of any of the Collateral. As used herein "Control' shall mean the manner in which
 "control" is achieved under the UCC with respect to that particular item of Collateral.

 

d.           Office
Locations; Fictitious Names. The mailing address,
chief place of business, chief executive office and office where Debtor keeps its books and records relating to the Accounts, Documents,
General Intangibles, Instruments and Investment Property is located at the place specified on Schedule I. Debtor has no
place of business except those separately set forth on Schedule I.
Debtor does not do business and has not done business during the past five years under any trade name
or fictitious business name.

 

e.           Perfection.
This Agreement and all necessary UCC filings (provided Secured Party properly records such UCC filings) together create a valid,
perfected, first priority (except as provided in the UCC) security interest in the Collateral (other than Deposit Accounts for
which there is no control agreement), securing the payment of the Obligations, and all filings (other than continuation statements),
registrations, recordings and other actions necessary or desirable to create, perfect and protect such security interests have
been duly taken (other than Deposit Accounts for which there is no control agreement), and such security interests are entitled
to all of the rights, priorities and benefits afforded by the UCC or other relevant law as enacted in any relevant jurisdiction
which relates to perfected security interests.

 

f.            Governmental
Authorizations; Consents. No authorization, approval or other action by, and no notice to or filing with, any domestic or foreign
governmental authority or regulatory body or consent of any other person is required either (a) for the grant by Debtor of the
Security Interests granted hereby or for the execution, delivery or performance of this Agreement by Debtor or (b) the perfection
of the Security Interests granted hereby and pursuant to any other Loan Documents, (except for the filing UCC financing statements
with the appropriate jurisdiction); or (c) the exercise by Secured Party of its rights and remedies hereunder.

 

g.           Accounts.
Each existing Account constitutes, and each hereafter arising Account will constitute, the legally valid and binding obligation
of the Account Debtor (as defined in the UCC) obligated to pay the same. No Account Debtor has any defense, set-off, claim or counterclaim
against Debtor that can be
asserted against Secured Party, whether in any proceeding
to enforce Secured Party's rights in the Collateral or otherwise except defenses, setoffs, claims or counterclaims that are not,
in the aggregate, material to the value of the Accounts. No Account is, nor will any hereafter arising Account be, evidenced by
a promissory note or other Instrument.

 

    	 	3	 

     

    

 

h.           Chattel
Paper. As of the date hereof, Debtor does not hold Chattel Paper in the
ordinary course of its business conducted at the Property.

 

i.            Commercial
Tort Claims.  As of the date hereof, Debtor does not own any Commercial
Tort Claims with respect to
the Property.

 

j.            Inventory.
Except for the rights of Franchisor, no Inventory is subject to any licensing, patent, trademark,
trade name or copyright agreement with any Person that restricts Debtor's ability
to sell the Inventory.

 

6.          Further
Assurance; Covenants.

 

a.           Other
Documents and Actions. Debtor will, from time to time, at its expense,
promptly execute and deliver
all further instruments and documents and take
all further action that may be necessary or desirable, or that Secured Party may reasonably request, in order to create, perfect
and protect the Security Interests or to enable Secured
Party to exercise and enforce its rights and
remedies hereunder or under any other Loan Document with respect
to any Collateral. Without limiting the generality of the foregoing, Debtor will: (a) authorize the filing of financing or continuation
statements, or amendments thereto, and execute and/or authorize the filing of such other instruments, documents or notices, as
Secured Party may reasonably request, in order to create, perfect and protect the Security Interests; (b) at any reasonable time,
upon demand by Secured Party, allow inspection of the Collateral by Secured Party or Persons designated by Secured Party
and allow Secured Party to examine
and make copies of the records of Debtor related thereto, and to discuss the Collateral and
the records of Debtor with respect thereto with, and to be advised as to the same
by, Debtor's officers and employees and, after
the occurrence and during the continuance of an Event of Default, with any other Person which is or may be obligated with
respect to any Collateral;
and (c) upon Secured Party's reasonable request, appear in and defend any action or proceeding that may affect Debtor's title to
or Secured Party's security interest in the Collateral.

 

b.           Secured
Party Authorized. Debtor hereby authorizes Secured Party to file one or
more financing or continuation statements, and amendments thereto (or similar documents required by any laws of any applicable
jurisdiction), relating to all or any part of the Collateral without
the signature of Debtor.

 

c.           Corporate
or Name Change.  Debtor will give Secured Party at least thirty (30) days
prior written notice of any change in Debtor's
jurisdiction of organization, name, identity, mailing address, jurisdiction of organization
or corporate structure. With respect to any such change, Debtor will
execute such instruments, documents and notices and take such actions as Secured
Party reasonably deems necessary or desirable to create, perfect and protect the Security Interests.

 

d.           Business
Locations. Subject to the next sentence, Debtor will keep the Collateral
(other than Collateral in the possession
of Secured Party and cash on
deposit in the Clearing Account) at the Property. Debtor will give Secured Party at least thirty (30) days prior written
notice of any change in Debtor's principal place of business or of any new location
of business or any new location for any of the Collateral. With respect to any new location (which in any event shall be within
the continental United States), Debtor will execute such instruments, documents
and notices and take such actions as Secured Party deems necessary to create, perfect and protect the Security Interests.

 

    	 	4	 

     

    

 

e.           Bailees.
No Collateral shall at any time be in the possession or control of any warehouseman, bailee or any of Debtor's agents or processors
without Secured Party's prior written consent. Debtor shall, upon the request of Secured Party, notify any such warehouseman, bailee,
agent or processor of the Security Interests created hereby and shall instruct such Person to hold all such Collateral for Secured
Party's account subject to Secured Party's instructions and shall obtain an acknowledgement from such Person that such Person holds
the Collateral for Secured Party's benefit. To the extent a Document is issued with respect to any Collateral in the possession
or control of any warehouseman, bailee or any of Debtor's agents or processors, such Document shall be delivered to Secured Party.

 

f.            Accounts. Collection of Accounts and distribution of such proceeds shall, at all times, be conducted
in accordance with Article 8 of the Loan Agreement.

 

g.           General
Intangibles. Debtor shall
use all commercially reasonable efforts to obtain any consents, waivers or agreements necessary to enable Secured Party to exercise
remedies hereunder and under the other Loan Documents during the continuance of an Event of Default with respect to any of Debtor's
rights under any General Intangibles, including Debtor's rights as a licensee of computer software.

 

h.           Protection
of Collateral. Debtor
will do nothing to impair the rights of Secured Party .in
the Collateral. Debtor will
at all times keep the Collateral insured in favor of the Secured Party in compliance with
the requirements of the Loan Documents. Debtor assumes all liability and responsibility
in connection with the Collateral acquired by it, and the liability of Debtor to pay the Obligations shall in no way be affected
or diminished by reason of the fact that such Collateral may be lost, stolen, damaged, or for any reason whatsoever unavailable
to Debtor.

 

i.            Taxes
and Claims.  Debtor will pay when due all property and other taxes, assessments
and governmental charges imposed upon, and all claims against, the Collateral; provided that no such tax, assessment or charge
need be paid if Debtor is contesting same in good faith by appropriate proceedings promptly instituted and diligently conducted
and if Debtor has established such reserve or other appropriate provision if any as shall be required in conformity with GAAP;
and provided further that the same can be
contested without risk of loss
or forfeiture or material impairment of any of the Collateral or the use thereof.

 

j.           Collateral
Description. Debtor will furnish to Secured Party, from time to time upon request, statements and schedules further identifying
and describing the Collateral and such other reports in connection with the Collateral as Secured Party may reasonably request,
all in reasonable detail. Debtor will, promptly upon request, provide to Secured Party all information and evidence it may reasonably
request concerning the Collateral, and in particular the Accounts, to enable Secured Party to enforce the provisions of this Agreement.

 

k.          Records
of Collateral. Debtor shall keep full and accurate
books and records relating to the Collateral.

 

l.          
Federal Claims. Debtor shall notify Secured Party
of any Collateral which, to its best knowledge, constitutes a claim against the United States government or any instrumentality
or agency thereof, the assignment of which claim is restricted by federal law. Upon the request of Secured Party, Debtor shall
take such steps as may be necessary to comply with any applicable federal assignment of claims laws.

 

    	 	5	 

     

    

 

7.          Remedies

 

If
any event of Default shall have occurred and be continuing, Secured Party may exercise in respect of the Collateral, in addition
to all other rights and remedies provided for herein, under the Loan Documents or otherwise available to it, all the rights and
remedies of a secured party on default under the UCC (whether or not the UCC applies to the affected Collateral) and also may:
(i) require Debtor to, and Debtor hereby agrees that it will, at its expense and upon request of Secured Party forthwith, assemble
all or part of the Collateral as directed by Secured Party and make it available to Secured Party at any place or places designated
by Secured Party, in which event Debtor shall at its own expense (A) forthwith cause the same to be moved to the place or places
so designated by Secured Party and there delivered to Secured Party, (B) store and keep any Collateral so delivered to Secured
Party at such place or places pending further action by Secured Party, and (C) while the Collateral shall be so stored and kept,
provide such guards and maintenance services as shall be necessary to protect the same and to preserve and maintain the Collateral
in good condition; (ii) withdraw all cash in the Clearing Account, Cash Management Account and/or Reserve Accounts and apply such
monies in accordance with the Loan Agreement; and (iii) without notice, except as specified below, sell, lease, license or otherwise
dispose of the Collateral or any part thereof by one or more contracts, in one or more parcels at public or private sale, and without
the necessity of gathering at the place of sale of the property to be sold, at any of Secured Party's offices or elsewhere, at
such time or times, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as Secured
Party may deem commercially reasonable.

 

Debtor
agrees that, to the extent notice of sale shall be required by law, a reasonable authenticated notification of disposition shall
be a notification given at least ten (10) days prior to any such sale and such notice shall (i) describe Secured Party and Debtor,
(ii) describe the Collateral that is the subject of the intended disposition, (iii) state the method of intended disposition, (iv)
state that the Debtor is entitled to an accounting of the Obligations and stating the charge, if any, for an accounting, and (v)
state the time and place of any public disposition or the time after which any private sale is to be made. At any sale of the Collateral,
if permitted by law, Secured Party may bid (which bid may be, in whole or in part, in the form of cancellation of indebtedness)
for the purchase, lease, license or other disposition of the Collateral or any portion thereof for the account of Secured Party.
Secured Party shall not be obligated to make any sale of Collateral regardless of notice of sale having
been given. Secured Party may disclaim any warranties that might arise in connection with the sale, lease, license or other disposition
of the Collateral and shall have no obligation to provide any warranties at such time. Secured Party may adjourn any public or
private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice,
be made at the time and place to which it was so adjourned. To the extent permitted by law, Debtor hereby specifically waives all
rights of redemption, stay or appraisal which it has or may have under any law now existing or hereafter enacted.

 

Upon
the occurrence and during the continuance of an Event of Default, Secured Party or its agents or attorneys shall have the right
without notice or demand or legal process (unless the same shall be required by applicable law), personally, or by agents or attorneys,
(i) to enter upon, occupy and use the Property until the Obligations are paid in full without any obligation to pay rent, to render
the Collateral useable or saleable and to remove the Collateral or any part thereof therefrom to the premises of Secured Party
or any agent or bailee of Secured Party for such time as Secured Party may desire in order to effectively collect or liquidate
the Collateral and use in connection with such removal any and all services, supplies and other facilities of Debtor; (ii) to take
possession of Debtor's original books and records with respect to the operation of the Property, to obtain access to Debtor's data
processing equipment, computer hardware and software relating to the Collateral and to use all of the foregoing and the information
contained therein in any manner Secured Party deems appropriate.

 

    	 	6	 

     

    

 

Debtor
acknowledges and agrees that a breach of any of the covenants contained herein will cause irreparable injury to Secured Party and
that Secured Party has no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of
Secured Party to seek and obtain specific performance of other obligations of Debtor contained in this Agreement, that the covenants
of Debtor contained herein shall be specifically enforceable against Debtor.

 

8.          Assigned
Contracts

 

If
an Event of Default shall have occurred and be continuing, Debtor hereby irrevocably authorizes and empowers Secured Party, without
limiting any other authorizations or empowerments contained in any of the other Loan Documents, to assert, either directly or on
behalf of Debtor, any claims Debtor may have, from time to time, against any other party to any contract relating to the Hotel
or the operation thereof or to otherwise exercise any right or remedy of Debtor under any such contract (including without limitation,
the right to enforce directly against any party to any such contract, all of Debtor's rights thereunder, to make all demands and
give all notices and to make all requests required or permitted to be made by Debtor thereunder).

 

9.          Limitation
on Duty of Secured Party with Respect to
Collateral

 

Beyond
the safe custody thereof, Secured Party shall have no duties concerning the custody and preservation of any Collateral in its possession
or control (or in the possession of any Secured Party or bailee) or with respect to any income thereon, other than to account for
the same, or the preservation of rights against prior parties or any other rights pertaining thereto. Secured Party shall be deemed
to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded
treatment substantially equal to that which it accords its own property. Secured Party shall not be liable or responsible for any
loss or damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman,
carrier, forwarding agency, consignee or other Secured Party or bailee selected by Secured Party in good faith.

 

10.         Application
of Proceeds

 

Upon
the occurrence and during the continuance of an Event of Default, the proceeds of any sale of, or other realization upon, all or
any part of the Collateral and any cash held in the Clearing Account, Cash Management Account and/or Reserve Accounts shall be
applied to the Obligations subject to and in accordance with the Loan Agreement.

 

11.         Expenses

 

Debtor
shall pay all costs, fees and expenses of Secured Party (a) protecting, storing, warehousing, appraising, insuring, handling, maintaining
and shipping the Collateral, (b) perfecting, maintaining and enforcing the Security Interests, and (c) collecting, enforcing, retaking,
holding, preparing for disposition, processing and disposing of the Collateral. Debtor shall also pay any and all excise, property,
sales and use taxes imposed by any state, federal or local authority on any of the Collateral, or with respect to periodic appraisals
and inspections of the Collateral as may be required under the terms of the Loan Agreement, or with respect to the sale or other
disposition thereof.

 

12.         Termination
of Security Interests; Release of Collateral

 

Upon
satisfaction and performance of all Obligations under the Loan Agreement, the Security Interests shall terminate and all rights
to the Collateral shall revert to Debtor. Upon such termination of the Security Interests or release of any Collateral, Secured
Party will, at Debtor's expense, file termination statements (or authorize Debtor to do so) terminating all financing statements
filed naming Secured Party as secured party and covering the Collateral, and execute and deliver to Debtor such documents as Debtor
shall reasonably request to evidence the termination of the Security Interests or the release of such Collateral, as the case may
be.

 

    	 	7	 

     

    

 

13.         Notices

 

Notices
to Tenant should be sent to the address first above and notices to Secured Party should be sent to the address first above written
or, in each case, to such other address as shall be designated in writing by the respective party to the other parties hereto.
Unless otherwise expressly provided herein, all such notices shall be given and deemed received in accordance with Section 15.5
of the Loan Agreement.

 

14.         Successors
and Assigns

 

This
Agreement is for the benefit of Secured Party and its successors and assigns, and in the event of an assignment of all or any of
the Obligations, the rights hereunder, to the extent applicable to the Obligations so assigned, may be transferred with such Obligations.
This Agreement shall be binding on Debtor and its successors and assigns; provided that
Debtor may not delegate its obligations under this Agreement without Secured Party's prior written consent.

 

15.         Changes
in Writing

 

No
amendment, modification, termination or waiver of any provision of this Agreement shall be effective unless the same shall be in
writing signed by Debtor and Secured Party.

 

16.         Applicable
Law

 

This
Agreement shall be governed by, and construed in accordance with, the laws of the State of North Carolina.

 

13.         Headings

 

Section
and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part
of this Agreement for any other purpose or be given any substantive effect.

 

14.         Survival

 

All
representations and warranties of Debtor contained in this Agreement shall survive the execution and delivery of this Agreement.

 

[The remainder of
this page intentionally left blank.]

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF, the undersigned
Debtor has executed this Security Agreement the day and year first written above.

 

	 	TENANT:
	 	 
	 	MDR GREENSBORO HI TRS, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:  	Medalist Diversified Holdings, L.P. 

a Delaware limited partnership
	 	 	Its: Manager and member

 

	 	By: 	Medalist Diversified REIT, Inc.
	 	Maryland corporation
	 	Its: General Partner

 

	 	By:	 /s/ William R. Elliot
	 	Name:	 William R. Elliot
	 	Its: 	Co-President

 

[signature page to Hampton Inn Greensboro
Tenant Security Agreement]

 

    	 		 

     

    

 

[OFFICIAL SEAL]

STATE OF VIRGINIA

CITY OF RICHMOND

. I       

I,
Laura C. Bunton,  a Notary Public of Richmond City, Virginia, do hereby certify that William R. Elliott, Co-President of
MEDALIST DIVERSIFIED REIT, INC., a Maryland corporation, general partner of MEDALIST DIVERSIFIED HOLDINGS, L.P., a Delaware limited
partnership, manager and member of MDR GREENSBORO HI TRS, LLC, a Delaware limited liability company, personally came before me
this day and acknowledged that he, as Co-President, being
authorized to do so, executed the foregoing on behalf of MEDALIST DIVERSIFIED REIT, INC., general partner of MEDALIST DIVERSIFIED
REIT, INC., manager and member of MDR GREENSBORO HI TRS, LLC.

 

Witness my hand and official seal
this the 27th day of October 2017.

 

	 	/s/Laura Bunton
	 	Notary Public
	 	Print Name: Laura C. Bunton
	 	 
	 	My Commission expires: 11/30/20
	 	 
	 	[OFFICIAL SEAL]
	 	 
	 	[Signatures continue on next page]

 

[signature page to Hampton Inn Greensboro
Tenant Security Agreement]

 

    	 		 

     

    

 

IN WITNESS WHEREOF,
the undersigned Debtor has executed this Security Agreement the day and year first written above.

 

	 	TENANT:
	 	 
	 	[SIGNATURE PAGES TO BE CIRCULATED FOR REVIEW SEPARATELY AND     ATTACHED AT CLOSING]

 

STATE SPECIFIC
NOTARY BLOCK TO BE
INSERTED

 

	 	SECURED PARTY:
	 	 
	 	[SIGNATURE PAGES TO BE CIRCULATED FOR REVIEW SEPARATELY AND ATTACHED AT CLOSING]

 

STATE SPECIFIC NOTARY
BLOCK TO BE INSERTED

 

    	 	9	 

     

    

 

SCHEDULE I

 

Chief Executive
Office, Locations of Books and 

Records, Equipment, Inventory and FixturesExhibit 10.18

 

	RECORDING REQUESTED BY	)
	WHEN RECORDED MAIL TO:	)
	 	)
	[Hirschler Fleischer	)
	P. O. Box 500	)
	Richmond, VA  23218-0500	)
	Attn :  David S. Lionberger, Esquire	)
	VSB No.:  39625 ]	)
	 	 

 

Above Space
for Recorder’s Use

 

TENANTS IN COMMON AGREEMENT

 

This Tenants in Common
Agreement (“Agreement”) is made and effective as of ___________, __, 2017, by and among PMI Greensboro, LLC, a Delaware
limited liability company, with an address at 406 Page Road, Nashville, TN 37205 (“PMI Greensboro”), and MDR Greensboro,
LLC, a Delaware limited liability company, with an address at 11 S. 12th Street, Suite 401, Richmond, VA 23219 (“Medalist”)
(PMI Greensboro and Medalist are each sometimes referred to as a “Tenant in Common” or collectively as the “Tenants
in Common”), with reference to the facts set forth below.

 

RECITALS

 

A.           PMI
Greensboro owns an undivided [thirty-three and 85/100th percent (33.85%)] tenant in common interest, and Medalist owns
an undivided [sixty-six and 15/100th percent (66.15%) ] tenant in common interest (each such percentage interest being
referred to as the “Interest” of such Tenant in Common), in certain real property and improvements thereon, currently
including a Hampton Inn hotel, located at ______________________, Greensboro, North Carolina as more particularly described in
Exhibit A attached hereto and incorporated herein (“Property”). The percentage interest in the Property of
any Tenant in Common, as adjusted from time to time pursuant to the terms hereof, shall be such Tenant in Common’s “Pro
Rata Share”.

 

B.           The Tenants in Common desire to enter into
this Agreement to provide for the orderly administration of the Property, to delegate authority and responsibility for the operation
and management of the Property and to further set forth the rights and obligations of the Tenants in Common concerning the Property.

 

NOW, THEREFORE, in
consideration of the mutual covenants and conditions contained in this Agreement and for other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties agree as set forth below.

 

1.            Nature
of Relationship Between Co-Tenants.

 

1.1         Tenants
in Common Relationship; No Partnership. The Tenants in Common shall each hold their respective undivided tenancy in common
interests in the Property (the “Interests”) as tenants-in-common. The Tenants in Common intend to take and hold the
Property for investment purposes only. The Tenants in Common do not intend by this Agreement to create a partnership or joint venture
among themselves, but merely to set forth the terms and conditions upon which each of them shall hold their respective Interests.
In addition, the Tenants in Common do not intend to create a partnership or joint venture with the Property Manager (as defined
below). Therefore, each Tenant in Common hereby elects to be excluded from the provisions of Subchapter K of Chapter 1
of the Internal Revenue Code of 1986, as amended (the “Code”) pursuant to Section 761(a) of the Code, with respect
to the tenancy in common ownership of the Property. The exclusion elected by the Tenants in Common hereunder shall commence with
the execution of this Agreement.

 

1.2         Reporting
as Direct Owners and Not a Partnership. Each Tenant in Common hereby covenants and agrees to report on his federal and state
income tax returns all items of income, deduction and credits which result from his Interests. All such reporting shall be consistent
with the exclusion of the Tenants in Common from Subchapter K of Chapter 1 of the Code, commencing with the first taxable
year following the execution of this Agreement. Further, each Tenant in Common covenants and agrees not to notify the Commissioner
of Internal Revenue that he desires that Subchapter K of Chapter 1 of the Code apply to the Tenants in Common. No Tenant in
Common shall file a partnership or corporate tax return, conduct business under a common name, or execute any agreement identifying
any or all of the Tenants in Common as partners, shareholders or members of a business entity, or otherwise hold themselves out
as partners, shareholders, or members of a business entity.

 

     

     

    

 

1.3         Indemnity.
Each Tenant in Common hereby agrees to indemnify, protect, defend and hold the other Tenant in Common free and harmless from all
costs, liabilities, tax consequences and expenses (for example, taxes, interest and penalties), including, without limitation,
attorneys’ fees and costs, which may result from any Tenant in Common so notifying the Commissioner in violation of this
Agreement or otherwise taking a contrary position on any tax return, report or other document.

 

1.4         No
Agency. No Tenant in Common is authorized to act as agent for, to act on behalf of, or to do any act that will bind, any other
Tenant in Common, or to incur any obligations with respect to the Property.

No Treatment of Co-Ownership
as an Entity. The Owners shall not file a partnership or corporate tax return, conduct business under a common name, execute an
agreement identifying any or all of the Owners as partners, shareholders or members of a business entity, or otherwise hold themselves
out as partners, shareholders, or members of a business entity.

 

2.            Management.

 

2.1         Management
Agreement. Concurrently with the acquisition of the Property, the Tenants in Common will enter into a Management Agreement
(“Management Agreement”) with [Shockoe Commercial Properties], LLC (“Property Manager”). Pursuant to the
Management Agreement, the Property Manager shall be the sole and exclusive manager of the Property to act on behalf of the Tenants
in Common with respect to the management, operation, maintenance and leasing of the Property until the Management Agreement is
terminated in accordance with its terms. All of the terms, covenants and conditions of the Management Agreement are hereby incorporated
herein. The Management Agreement shall be renewable no less frequently than annually. Fees paid to the Property Manager shall
not depend in whole or in part on the income or profits derived by any person from the Property and shall not exceed the fair
market value of the Property Manager’s services.

 

2.2         Management
Services. The Property Manager’s services shall be limited to customary services typically performed to manage the Property
on behalf of the Tenants in Common, such as collecting rents, paying property taxes and insurance premiums, arranging for repair
and maintenance of the Property, utilities, heat, air conditioning, trash removal, parking for the Property and paying such expenses,
and providing other customary services. The amount of rent paid by a lessee shall not be based on a percentage of net income, cash
flow, increases in equity, or otherwise depend in whole or in part on the income or profits derived by the lessee.

 

2.3         Accounts,
Books and Records and Statements. The Property Manager, on behalf of the Owners, shall open and maintain all accounts necessary
or desirable in connection with ownership of the Property, shall maintain adequate books and records of the Property operations,
and shall provide monthly reports to the Tenants in Common on the operations of the Property.

 

3.            Decisions
of the Tenants in Common.

 

3.1.        Approvals.
The Tenants in Common shall unanimously approve (i) any lease, sublease, deed restriction, or grant of easement of/on all or any
portion of the Property, provided that the conveyance of leases or subleases or portions of the Property pursuant to contracts
with third parties that have been previously approved by the Tenants in Common shall not require the further approval of the Tenants
in Common, (ii) any sale or exchange of the Property, (iii) any indebtedness or loan, and any negotiation or refinancing thereof,
secured by a lien on the Property, (iv) any successor or replacement Property Manager, (v) annual budgets for development and operations
of the Property, (vi) any contracts, renewals and amendments thereof, and any transactions with parties affiliated with any Tenant
in Common or the Property Manager including the Management Agreement, and (vii) any successor or replacement Property Manager.
Whenever this Agreement provides that the Tenants in Common shall be entitled to vote upon a matter, each Tenant in Common shall
be entitled to vote in proportion to its Pro Rata Share.

 

3.2.        Deadlock.
In the event the Tenants in Common cannot agree on any matter requiring unanimous approval under this Section, any Tenant in Common
shall have the right to invoke the dispute resolution provisions of Exhibit B, and if such Deadlock (as defined in Exhibit
B attached hereto) is not resolved under the provisions of Exhibit B then any Tenant in Common may invoke the buy/sell procedures
set forth in Section 10.

 

    	 	2	 

     

    

 

3.3         Meetings.
There shall be no scheduled or periodic meetings of the Tenants in Common, but a meeting of the Tenants in Common may be called
by the Property Manager or by any Tenant in Common by providing written notice of such meeting to all parties hereto not less than
ten (10) nor more than sixty (60) days prior to the date of such meeting (unless all Tenants in Common agree to an earlier date).
The notice shall state the nature of the business to be discussed at the meeting. The Property Manager and each Tenant in Common
shall exert reasonable efforts to attend such meeting (or participate in such meeting via telephone).

 

3.4         Approval
of Benefit Street Partners Loan. The Tenants in Common are concurrently herewith obtaining a $[10,600,000].00 commercial mortgage
loan from BENEFIT STREET PARTNERS REALTY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (together with any of its
respective affiliates and/or any of its or their respective successors and/or assigns, being referred to herein as the “Lender”)
for the financing of the Property (the "Mortgage Loan") and, in connection therewith, entering into various documents
evidencing and securing the Mortgage Loan, secured by a blanket lien on the Property, but may execute contribution and indemnity
agreements, subordinate to the Lender’s Loan, to share the liability as between the Tenants in Common in proportion to their
Pro Rata Shares. The Tenants in Common hereby ratify, approve and confirm the Loan Agreement dated as of ___________, 2017 with
Lender and Loan Documents with respect to the Mortgage Loan. The execution and delivery by the Tenants in Common of all documents,
instruments and agreements in connection with the Mortgage Loan (collectively, the “Mortgage Loan Documents”) conclusively
evidences that such execution and delivery has been duly authorized by all requisite action on the part of the Tenants in Common
as tenants in common under this Agreement. In addition, for so long as any obligations of the Tenants in Common under the Mortgage
Loan remain outstanding, the Tenants in Common shall comply with the covenants and restrictions set forth on the Addendum to this
Agreement.

 

4.            Income
and Liabilities; Bank Accounts.

 

4.1         Income
and Liabilities. Except as otherwise provided herein and in the Management Agreement, each of the Tenants in Common shall be
entitled to all benefits and obligations of ownership of the Property based on their Pro Rata Shares. Accordingly, each of the
Tenants in Common shall (a) be entitled to all benefits of ownership of the Property, on a gross and not a net basis, including,
without limitation, all items of income and proceeds from sale or refinance or condemnation, in proportion to their respective
Interests, and (b) bear, and shall be liable for, payment of all expenses of ownership of the Property, on a gross and not a net
basis, including by way of illustration, but not limitation, all operating expenses and expenses of sale or refinancing or condemnation,
burdens, obligations, duties, liabilities, costs and expenses of the Property, in proportion to their respective Interests, except
for such amounts as may be reasonably determined by the Property Manager to be retained for reserves or improvements in accordance
with the Management Agreement.

 

4.2         Bank
Accounts. Subject to the Mortgage Loan Documents, the funds, income and revenues of the Property shall be deposited in such
separate co- tenancy bank account or accounts in such bank or banks as shall be determined by, and in the sole discretion of the
Tenants in Common. The Tenants in Common shall be entitled to receive copies of monthly bank statements from all accounts maintained
for the benefit of the Property or Tenants in Common. In all events, the Property Manager shall cause the disbursement to the Tenants
in Common of their respective shares of net revenues from the Property within 3 months from the date of receipt of those revenues.

 

5.            Co-Tenant’s
Obligations. The Tenants in Common each agree to perform such acts as may be reasonably necessary to carry out the terms and
conditions of this Agreement, including, without limitation:

 

5.1         Documents.
Executing documents required in connection with a sale or refinancing of the Property in accordance with Section 6 below and such
additional documents as may be required under this Agreement or may be reasonably required to affect the intent of the Tenants
in Common with respect to the Property or any loans encumbering the Property.

 

5.2         Additional
Funds. Each Tenant in Common will be responsible for its Pro Rata Share of any future cash needed in connection with the ownership,
operation and maintenance of the Property. If a Tenant in Common (the “Defaulting Owner”) fails for any reason to timely
contribute its proportionate share of funds required by this Agreement, the other Tenant in Common who has made the required contribution
(the “Non-Defaulting Owner”) shall have the right, but not the obligation, to contribute all or any portion of the
amount which the Defaulting Owner has failed to contribute (on behalf of the Defaulting Owner). If the Non-Defaulting Owner contributes
all or any portion of an amount required to be contributed by the Defaulting Owner (the “Default Contribution”), the
Non-Defaulting Owner shall be entitled to enforce its common law rights as a co-tenant of the Property.

 

    	 	3	 

     

    

 

6.            Sale
or Encumbrance of Property.

 

6.1         Approval.
Subject to the terms of the Addendum attached hereto, any sale or exchange of the Property, and any loan encumbering the Property
and any sale of the Property, shall be subject to unanimous approval by the Tenants in Common.

 

6.2         Distribution
of Loan or Sales Proceeds. Notwithstanding any other provisions of this Agreement, each Tenant in Common’s share of the
proceeds of a loan encumbering the Property or sale of the Property shall be applied at the closing of the loan or the sale as
set forth below.

 

6.2.1           To
the extent necessary, the proceeds shall first be used to pay in full his share of any loans encumbering title to the Property.

 

6.2.2           To
the extent necessary, the proceeds shall next be used to pay in full any unsecured loan made to such Tenant in Common with respect
to the Property.

 

6.2.3           The
proceeds shall next be used to pay his share of all outstanding costs and expenses incurred in connection with the holding, marketing
and sale of the Property.

 

6.2.4           The
proceeds shall next be used to pay all outstanding fees and costs as set forth in the Management Agreement.

 

6.2.5           Any
proceeds remaining shall be paid to such Tenant in Common.

 

7.            Transfer
or Encumbrance. Except as specifically provided in this Agreement and subject to compliance with applicable securities laws
and loan (and associated loan agreement and documents) secured by the Property, each Tenant in Common may sell, transfer, convey,
pledge, encumber or hypothecate their Interest or any part thereof, provided that any transferee shall take such Interests subject
to this Agreement.

 

8.            Right
of Partition. The Tenants in Common agree that any Tenant in Common (and any of his successors-in-interest) shall have the
right at any time to file a complaint or institute any proceeding at law or in equity to have the Property partitioned in accordance
with and to the extent provided by applicable law. The Tenants in Common acknowledge and agree that partition of the Property
may result in a forced sale by all of the Tenants in Common. To avoid the inequity of a forced sale and the potential adverse
effect on the investment by the other Tenant in Common, the Tenants in Common agree that, as a condition precedent to filing a
partition action, the Tenant in Common filing such action shall follow the buy-sell procedure set forth in Section 10.

 

9.            Bankruptcy.
The Tenants in Common agree that the following shall constitute an Event of Bankruptcy with respect to any Tenant in Common (and
in any of his successors-in-interests): if a receiver, liquidator or trustee is appointed for any Tenant in Common, if any Tenant
in Common becomes insolvent, makes an assignment for the benefit of creditors or admits in writing his inability to pay its debts
generally as they become due, if any petition for bankruptcy, reorganization, liquidation or arrangement pursuant to federal bankruptcy
law, or similar federal or state law shall be filed by or against, consented to, or acquiesced in by, any Tenant in Common; provided,
however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by such Tenant in Common
then, upon the same not being discharged, stayed or dismissed within sixty (60) days thereof. To avoid the inequity of a forced
sale and the potential adverse effect on the investment of the other Tenants in Common, the Tenants in Common agree that, as a
condition precedent to entering into this Agreement, the Tenant in Common causing such Event of Bankruptcy shall follow the buy-sell
procedure set forth in Section 9.

 

10.          Buy-Sell Procedure. Before filing
a partition action in accordance with Section 8, or

 

(i) upon a Tenant in
Common defaulting its obligations under this Agreement (including, but limited to, (a) for failing to offer its interest for sale
prior to filing a partition; or (b) for filing a partition), or

 

    	 	4	 

     

    

 

(ii) upon the occurrence
of an Event of Bankruptcy in accordance with Section 9, or

 

(iii) in the event
a Tenant in Common sues another Tenant in Common or any guarantor of the Lender’s Loan to the Tenants in Common, or

 

(iv) in the event of
a Deadlock that is not resolved by the invocation of the provisions of Exhibit B;

 

the Tenant in Common filing such partition
action, or defaulting under this Agreement, or the subject of the Event of Bankruptcy, or suing another Tenant in Common or Loan
guarantor, or any Tenant in Common on the event of a Deadlock (hereinafter, “Seller”) shall first make a written offer
(“Offer”) to sell its undivided interest to the other Tenant in Common at a price equal to the Fair Market Value (as
defined below) of Seller’s undivided interest. “Fair Market Value” shall mean the fair market value of Seller’s
undivided interest in the Property on the date the Offer is made as determined in accordance with the procedures set forth below.
The other Tenant in Common shall have ten (10) days after delivery of the Offer to accept the Offer. If the other Tenant in Common
(“Purchaser”) accepts the Offer (hereafter, the date of such acceptance is the “Acceptance Date”), Seller
and Purchaser shall commence negotiation of the Fair Market Value. If the parties do not agree, after good faith negotiations,
within five (5) days after the Acceptance Date, then each party shall submit to the other a proposal containing the Fair Market
Value the submitting party believes to be correct (“Proposal”) within seven (7) days after the Acceptance Date. If
either party fails to timely submit a Proposal, the other party’s submitted proposal shall determine the Fair Market Value.
If both parties timely submit Proposals, then the Fair Market Value shall be determined in accordance with the procedures set forth
below. Within ten (10) days after the Acceptance Date, the parties shall appoint a certified MAI real estate appraiser who shall
have been active full-time over the previous ten (10) years in the appraisal of comparable properties located in the County or
City in which the Property is located (the “Appraiser”). If the parties are unable to agree upon a single Appraiser
within ten (10) days after the Acceptance Date, then the parties each shall each select an Appraiser that meets the foregoing qualifications
within twelve (12) days after the Acceptance Date. The two (2) Appraisers so appointed shall, within five (5) days after their
appointment, appoint a third Appraiser meeting the foregoing qualifications. The determination of the Appraisers(s) shall be limited
solely to the issue of whether Seller’s or Purchaser’s Proposal most closely approximates the fair market value. The
decision of the single Appraiser or of the Appraisers shall be made within ten (10) days after the appointment of the single Appraiser
or the third Appraiser, as applicable. The Appraiser(s) shall have no authority to create an independent structure of fair market
value or prescribe or change any or several of the components or the structure thereof; the sole decision to be made shall be which
of the parties’ Proposals most closely corresponds to the fair market value of the Property. The decision of the single Appraiser
or majority of the three (3) Appraisers shall be binding upon the parties. If either party fails to appoint an Appraiser within
the time period specified above, the Appraiser appointed by one of them shall reach a decision which shall be binding upon the
parties. The cost of the Appraisers shall be paid equally by Seller and Purchaser. In the event that the Seller’s Interest
is not purchased by the other Tenant in Common, the Seller shall have the right to exercise his partition rights and any purchaser
thereunder shall acquire any Interest or portion of the Property free of the terms of this Agreement.

 

11.          General
Provisions.

 

11.1       Mutuality;
Reciprocity; Runs With the Land. Except as otherwise provided herein all provisions, conditions, covenants, restrictions, obligations
and agreements contained herein are made for the direct, mutual and reciprocal benefit of each and every part of the Property;
shall be binding upon and shall inure to the benefit of each of the Tenants in Common and their respective heirs, executors, administrators,
successors, assigns, devisees, representatives, lessees and all other persons acquiring any undivided interest in the Property
or any portion thereof whether by operation of law or any manner whatsoever (collectively, “Successors”); shall create
mutual, equitable servitudes and burdens upon the undivided interest in the Property of each Tenant in Common in favor of the interest
of every other Tenant in Common; shall create reciprocal rights and obligations between the respective Tenants in Common, their
interests in the Property, and their Successors; and shall, as to each of the Tenants in Common and their Successors operate as
covenants running with the land, for the benefit of the other Tenants in Common pursuant to applicable law. Except as otherwise
provided herein it is expressly agreed that each covenant contained herein (i) is for the benefit of and is a burden upon the undivided
interests in the Property of each of the Tenants in Common, (ii) runs with the undivided interest in the Property of each Tenant
in Common and (iii) benefits and is binding upon each Successor owner during its ownership of any undivided interest in the Property,
and each owner having any interest therein derived in any manner through any Tenant in Common or Successor. Every person or entity
who now or hereafter owns or acquires any right, title or interest in or to any portion of the Property is and shall be conclusively
deemed to have consented and agreed to every restriction, provision, covenant, right and limitation contained herein, whether or
not such person or entity expressly assumes such obligations or whether or not any reference to this Agreement is contained in
the instrument conveying such interest in the Property to such person or entity. The Tenants in Common agree that, subject to the
restrictions on transfer contained herein, any Successor shall become a party to this Agreement upon acquisition of an undivided
interest in the Property as if such person was a Tenant in Common initially executing this Agreement.

 

    	 	5	 

     

    

 

11.2       Attorneys’
Fees. If any action or proceeding is instituted between all or any of the Tenants in Common arising from or related to or with
this Agreement, the Tenant in Common or Tenants in Common prevailing in such action or arbitration shall be entitled to recover
from the other Tenant in Common or Tenants in Common all of his or their costs of action or arbitration, including, without limitation,
reasonable attorneys’ fees and costs as fixed by the court or arbitrator therein.

 

11.3       Entire
Agreement. This Agreement, together with and as amended by (i) the Addendum to Tenants in Common Agreement attached hereto,
and (ii) the First Amendment to Tenants in Common Agreement dated of even date herewith, constitutes the entire agreement between
the parties hereto pertaining to the subject matter hereof and all prior and contemporaneous agreements, representations, negotiations
and understandings of the parties hereto, oral or written, are hereby superseded and merged herein.

 

11.4       Governing
Law. This Agreement shall be governed by and construed under the internal laws of the Commonwealth of Virginia without regard
to choice of law rules.

 

11.5       Modification.
No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed
by the party against which the enforcement of such modification, waiver, amendment, discharge or change is or may be sought.

 

11.6       Notice
and Payments. Any notice to be given or other document or payment to be delivered by any party to any other party hereunder
may be delivered in person, or may be deposited in the United States mail, duly certified or registered, return receipt requested,
with postage prepaid, or by Federal Express or other similar overnight delivery service, and addressed to the Tenants in Common
at the addresses specified herein. Any party hereto may from time to time, by written notice to the others, designate a different
address which shall be substituted for the one above specified. Unless otherwise specifically provided for herein, all notices,
payments, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given and received
(i) upon personal delivery, or (ii) as of the third business day after mailing by United States registered or certified mail, return
receipt requested, postage prepaid, addressed as set forth above, or (iii) the immediately succeeding business day after deposit
with Federal Express or other similar overnight delivery system.

 

11.7       Successors
and Assigns. All provisions of this Agreement shall inure to the benefit of and shall be binding upon the successors-in-interest,
assigns, and legal representatives of the parties hereto.

 

11.8       Term.
This Agreement shall commence as of the date of recordation and shall terminate at such time as the Tenants in Common or their
successors-in-interest or assigns no longer own the Property as tenants-in-common.

 

11.9       Waivers.
No act of any Tenant in Common shall be construed to be a waiver of any provision of this Agreement, unless such waiver is in writing
and signed by the Tenant in Common affected. Any Tenant in Common hereto may specifically waive any breach of this Agreement by
any other Tenant in Common, but no such waiver shall constitute a continuing waiver of similar or other breaches.

 

11.10     Counterparts.
This Agreement may be executed in counterparts, each of which, when taken together, shall be deemed one fully executed original.

 

11.11     Severability.
If any portion of this Agreement shall become illegal, null or void or against public policy, for any reason, or shall be held
by any court of competent jurisdiction to be illegal, null or void or against public policy, the remaining portions of this Agreement
shall not be affected thereby and shall remain in full force and effect to the fullest extent permissible by law.

 

11.12     Time
is of the Essence. Time is of the essence of each and every provision of this Agreement.

 

    	 	6	 

     

    

 

11.13     Representations
and Warranties. Each Tenant in Common represents and warrants that all state and federal securities laws and regulations have
been and will be complied with in connection with the solicitation, offering and sale of Tenant in Common interests. Each Tenant
in Common further represents and acknowledges that the Property is "single asset real estate" as defined in 11 U.S.C.
 §101(51B) and pursuant to 11 U.S.C. §362(d)(3).

 

[BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	7	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date set forth above.

 

	 	PMI GREENSBORO, LLC
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	Peter Mueller, Inc.
	 	 	a Virginia corporation
	 	Its:	Manager
	 	 	 	 
	 	 	By:	/s/Kurt A. Schirm
	 	 	Name:	Kurt A. Schirm
	 	 	Title:	President

 

	STATE OF TENNESSEE 	)
	 	) ss:
	COUNTY OF BLOUNT	)

 

The foregoing instrument
was acknowledged before me on this 27 day of October, 2017 by Kurt A. Schirm as President of Peter Mueller, Inc.,
a Virginia corporation, the Manager of PMI Greensboro, LLC, a Delaware limited liability company, on behalf of the company.

 

My commission expires:   05/27/2020       

Reg. No.:_________________

	 	/s/Rachel Wiers
	 	Notary Public

 

    	 	8	 

     

    

 

	 	TENANTS IN COMMON:
	 	 
	 	MDR GREENSBORO, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Medalist Diversified Holdings, L.P.,
	 	 	a Delaware limited partnership
	 	Its:	Manager
	 	 	 
	 	By:	Medalist Diversified REIT, Inc.,
	 	 	a Maryland Corporation
	 	Its:	General Partner
	 	 	 
	 	By:	/s/William R. Elliot
	 	Name:	William R. Elliot
	 	Title:	Co-President

 

	STATE OF VIRGINIA	)
	 	) ss:
	COUNTY OF RICHMOND	)

 

The foregoing instrument
was acknowledged before me on this 27 day of October, 2017 by William R. Elliot as Co-President of Medalist Diversified
REIT, Inc., the General Partner of Medalist Diversified Holdings, L.P., a Delaware limited partnership, the sole owner of MDR Greensboro,
LLC, a Delaware limited liability company, on behalf of the company.

 

My commission expires:   011/30/2020       

Reg. No.: 224214

	 	/s/Laura Bunton
	 	Notary Public

 

    	 	9	 

     

    

 

EXHIBIT A

 

DESCRIPTION OF PROPERTY

 

     

     

    

 

EXHIBIT B

 

BUY/SELL

 

At any time in the event that the Tenants
in Common are unable to agree on the matters set forth in Section 3 (“Deadlock”), the Deadlock shall be broken by the
invocation of the provisions of this Section.

 

(a)          Negotiated
Resolution. If any dispute (a “Dispute”) arises (i) out of or relating to, this Agreement or the Addendum (collectively,
the “Documents”), or any alleged breach or default under the Documents, or (ii) with respect to any of the transactions
or events contemplated by the Documents, the party desiring to resolve such Dispute shall deliver a letter or other written notice
(the “Dispute Notice”) to the other parties to such Dispute, describing the Dispute in reasonable detail. If any party
delivers a Dispute Notice pursuant to this Exhibit B subpart (a), the parties involved in the Dispute shall meet at least twice
at the Property Manager’s principal place of business (unless otherwise agreed by the parties) within the thirty (30) day
period commencing on the date of the Dispute Notice and in good faith attempt to resolve such Dispute.

 

(b)          Mediation.
If any Dispute is not resolved or settled by the parties as a result of negotiation pursuant to Section 13.14(a) above, the parties
shall submit the Dispute to non-binding mediation before a retired judge of a federal District Court or Circuit Court or another
similarly qualified, mutually agreeable individual, in Richmond, Virginia. The parties shall bear the costs of such mediation equally.

 

(c)          Arbitration.
If the Dispute is not resolved by mediation pursuant to Exhibit B subpart (b) above, or if the parties fail to agree upon a mediator,
then within ninety (90) days after the date of the Dispute Notice, the Dispute shall be settled in accordance with the rules and
procedures of the American Arbitration Association then in effect with respect to commercial disputes. Arbitration shall be held
before one impartial arbitrator in Richmond, Virginia. If the parties cannot agree within thirty (30) days after receipt of notice
of intent to arbitrate (the “Arbitration Notice”) to the appointment of an arbitrator, an arbitrator shall be appointed
in accordance with Section 8.01-576.5 of the Code of Virginia (1950), as amended. Any arbitration shall allow for production of
relevant documents and depositions, and sanctions, at the discretion of the arbitrator, for failure to comply with any such discovery
requests. The arbitration of such issues, including the determination of any amount of damages suffered by any party hereto by
reason of the acts or omissions of any party, shall be final and binding upon all parties. The parties shall instruct the arbitrator
to render its decision no later than thirty (30) days after the submission of the Dispute.

 

(d)          Costs
and Attorneys’ Fees. The parties shall equally share the administrative costs and fees of the mediation and arbitration,
and the reasonable attorneys’ fees incurred by the party determined to be the prevailing party by the arbitrator shall be
paid by the party determined by the arbitrator not to be the prevailing party or as otherwise equitably determined by the arbitrator;
provided, however, that if a party refuses to participate in meeting procedure and/or in a mediation (including by unreasonably
withholding consent to a mediator or setting a date to meet) then (i) such refusing party shall pay all (100%) of the administrative
fees and costs of the mediation and/or arbitration (including of the mediator and/or arbitrator), and (ii) even if such refusing
party is determined by the arbitrator to be the prevailing party, such refusing party shall not be entitled to an award of such
party’s attorneys’ fees. The foregoing is intended to create an incentive for the parties to attempt to resolve any
Dispute by negotiated resolution and/or mediation prior to arbitration.

 

     

     

    

 

ADDENDUM TO TENANTS IN COMMON AGREEMENT

DATED __________ ___, 2017

 

For so long as any
obligations are owed to Lender under the Mortgage Loan Documents, Owners shall observe and comply with the following provisions
with regard to their ownership and operation of the Property, notwithstanding any provision to the contrary in this Agreement:

 

1.            Subject
to Loan Documents. At all times while any obligations are owed to Lender under the Mortgage Loan Documents, any and all rights
and remedies, including any rights of first refusal with respect to or options to purchase the Property, transfer rights, rights
of indemnity, or otherwise, shall be fully subordinate to the lien of the Mortgage Loan and all other terms and provisions of the
Mortgage Loan Documents. At all times while any obligations are owed to Lender under the Mortgage Loan Documents, the Owners agree
to stand still with respect to the enforcement of any of their rights and remedies and shall take no enforcement action with respect
thereto. All payments due under the Mortgage Loan Documents shall be made before any distributions to the Owners are made and all
of such payments under the Mortgage Loan shall have priority over all such distributions to the Owners. The Lender is a third-party
beneficiary of this Agreement and may enforce the provisions hereof against any party hereto.

 

2.            Management
of Property.

 

(a)          The
Managing Co-Owner (defined below) shall be responsible to sign all documents and take all actions it deems necessary and appropriate
in its sole discretion to deal with the Lender and to cause the Tenants in Common to be in compliance with all of Lender’s
operational requirements under the Mortgage Loan Documents including, but not limited to, the requirements concerning annual property
inspections and reports, collection of loan impounds, maintenance and repair of the Property, coordination of any late loan payments
and other loan coordination and servicing requirements. For such purposes, the Managing Co-Owner is hereby granted an irrevocable
power-of-attorney to deal with Lender on matters relating to the operation and maintenance of the Property. The “Managing
Co-Owner” shall be MDR Greensboro, LLC.

 

(i)          The
Managing Co-Owner shall oversee and supervise the Property Manager.

(ii)         The
Managing Co-Owner shall be the only party to whom the Lender is required to send notices except as otherwise may be required by
law.

 

(b)          The
Property Manager must at all times be a “Qualifying Manager” as set forth below. To be eligible, the Qualifying Manager
must meet the following requirements:

 

(i)          The
Qualifying Manager must be a reputable management company having at least five years’ experience in the management of commercial
properties and in the metropolitan area or other appropriate geographic area in which the Property is located;

(ii)         The
Qualifying Manager must be approved by Lender (which such approval may, at Lender’s option, be conditioned upon Lender’s
receipt of a Rating Agency Confirmation, as such term is defined in the Mortgage Loan Documents, with regard to both the identity
of the proposed Property Manager and the replacement management agreement pursuant to which such Property Manager will be employed);
and

(iii)        The
Qualifying Manager must not be the subject of a bankruptcy or similar insolvency proceeding.

 

(c)          The
Lender and any servicer of the Loan has the right to participate by telephone in any regular, special or called meetings of the
Tenants in Common.

 

(d)          Each
Tenant in Common shall execute an investor certificate, which provides the Managing Co-Owner with an irrevocable power of attorney
to correspond with (and receive correspondence from) the Lender/servicer on behalf of each Tenant in Common.

 

     

     

    

 

3.            Ownership
Interest Transfers or Liens. No Owner shall transfer any interest in the Property, whether voluntarily, involuntarily or by operation
of law, to any other party (including, without limitation, any other Owner) which may result in the acceleration of the Mortgage
Loan in accordance with the terms of the Mortgage Loan Documents unless all required consents under the Mortgage Loan Documents
have been obtained. Each Tenant in Common shall not allow its interest in the Property to become subject to any liens from any
third parties, and if a Tenant in Common’s interest in the Property becomes subject to an involuntary lien, such lien will
be discharged within 30 days (or promptly discharged as soon as possible thereafter).

 

4.            Notices.
A copy of all notices given hereunder shall be provided to the Lender at the address below. The foregoing addresses and/or telephone
numbers may be changed from time to time by written notice to the other parties indicated above, including Lender. Notices shall
be deemed received upon the earlier of actual receipt or forty-eight (48) hours after deposit in the case of United States express
mail or first class mail, registered or certified, return receipt requested, or twenty-four (24) hours after delivery to the overnight
courier.

Lender’s address for notice:

 

Benefit Street Partners Realty Operating
Partnership, L.P.

9 West 57th Street, Suite 4920

New York, New York 10019

Attention: Micah Goodman, General Counsel

 

with a copy to:

 

Seyfarth Shaw LLP

Two Seaport Lane, Suite 300

Boston, MA 02210

Attention: Sean O’Brien, Esq.

 

5.            Further
Assurances. Each Tenant in Common shall respond promptly to any requests for information from the other Tenants in Common and/or
the Lender, and will promptly take all actions and sign all documents that the other Tenants in Common and/or the Lender deem necessary
or appropriate in connection with the Mortgage Loan. At all times while the Mortgage Loan is outstanding, each Tenant in Common
agrees to waive any and all lien rights it holds, including any capital calls, against any other Tenant in Common for a failure
to perform its obligations as tenant in common, either under this Agreement or at law.

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