Document:

Exhibit

Exhibit 10.19

ENVIRONMENTAL INDEMNITY AGREEMENT
(Loan No. 73100202)
THIS ENVIRONMENTAL INDEMNITY AGREEMENT (this “Indemnity”) is made and entered into effective as of this 14th day of August, 2015 by ARHC PPLVLGA01, LLC, a Delaware limited liability company (“Borrower”) whose address is 405 Park Avenue, 14th Floor, New York, New York, 10022, Attn: Healthcare Counsel, and AMERICAN REALTY CAPITAL HEALTHCARE TRUST III, INC., a Maryland corporation, whose address is 405 Park Avenue, 14th Floor, New York, New York, 10022, Attn: Healthcare Counsel (“Co-Indemnitor”) (Borrower and Co-Indemnitor are sometimes hereinafter collectively and individually referred to as “Indemnitor”), for the benefit of RGA REINSURANCE COMPANY, a Missouri corporation, its successors and assigns (“Lender”), whose address is c/o RGA Mortgage Loan Servicing LLC, P.O. Box 771320, St. Louis, Missouri 63177 and is made with reference to the recitals set forth below, and in consideration of the covenants and agreements set forth below, and other valuable consideration, the receipt and sufficiency of which are acknowledged.
Recitals of Fact
The following recitals are a material part of this instrument:
A.    Borrower has assumed a loan made by ICM VI- Philip Center, LP, a  Georgia limited partnership (the “Original Borrower”) evidenced by that certain Promissory Note in favor of Lender dated September 27, 2012 in the principal sum of $5,200,000.00 (the “Loan”).
B.    The Loan is secured, in part, by that certain Deed to Secure Debt, Assignment of Leases and Rents and Security Agreement dated September 27, 2012, executed by Original Borrower in favor of Lender, filed and recorded  in the office of the Clerk of the Superior Court for Gwinnett County, Georgia (the “Recorder’s Office”) on October 5, 2012 in Book 51698, Page 0177 (the “Security Instrument”) and encumbering the property commonly known as 455 Philip Boulevard, located in the City of Lawrenceville, County of Gwinnett, State of Georgia and legally described on Exhibit “A” attached hereto and by this reference made a part hereof (the real estate, together with all improvements thereon and personal property associated therewith, is hereinafter collectively called the “Property”).
C.      The Security Instrument, the Note evidencing the Loan, that certain Assignment of Leases and Rents dated September 27, 2012, executed by Original Borrower in favor of Lender and recorded with the Recorder’s Office on October 5, 2012, in Book 51698, Page 0213 (the “Assignment of Rents”), this Indemnity, the Separate Guaranty of Carveout Obligations of even date herewith executed by Co-Indemnitor in favor of Lender, the Assignment and Subordination of Management Agreement dated on or about the date hereof and executed by Borrower and property manager in favor of Lender and that certain Consent and Assumption Agreement With Release dated of even date herewith executed by, among others, Lender and Indemnitors are sometimes herein collectively referred to as the “Loan Documents.”  The Loan Documents are hereby incorporated by this reference as if fully set forth in this Indemnity.

Loan No. 73100202

C.    As a condition to Lender’s consent to the assumption of the Loan by Borrower, Lender is requiring one or more financially substantial persons or entities to be liable under this Indemnity.  Those parties executing this Indemnity in addition to Borrower have a financial or other significant interest in Borrower.  Lender has therefore required that Borrower and Co-Indemnitor execute and deliver this Indemnity, and each Indemnitor has agreed to do so on the terms and conditions set forth herein.
 
Agreement
NOW THEREFOR IN CONSIDERATION of the foregoing and of Lender making the Loan, and other valuable consideration, the receipt of which is hereby acknowledged, Indemnitor hereby agrees as follows:
1.Definitions.  As used in this Indemnity, the following terms shall have the following meanings:
“Debt” shall mean (a) the Note; (b) all indebtedness and obligations arising under the Security Instrument and the other Loan Documents; (c)  any and all renewals or extensions of any such item of indebtedness or obligation or any part thereof; (d) any future advances which may be made by Lender to Borrower, whether made to protect the security for the repayment of the Note or otherwise, and whether or not evidenced by additional promissory notes or other evidences of indebtedness; and (e) all interest due on all of the same.  Nothing herein shall be construed to obligate Lender to make any renewals or additional loans or advances, including, without limitation, increasing the amount of the Note as referred to herein.
“Environmental Laws” means, both collectively and individually, any and all present and future federal, state and local statutes, laws, ordinances, rules, regulations, rulings, orders, permits, and other requirements of governmental agencies or authorities relating to health, the environment or to any Hazardous Substance (as hereinafter defined) or Hazardous Substance Activity (as hereinafter defined), including without limitation the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C.A. § 9601, et seq. (“CERCLA”); the Resource Conservation and Recovery Act of 1976, 42 U.S.C.A. § 6901, et seq. (“RCRA”); the Hazardous Materials Transportation Act, 49 U.S.C.A. § 1801, et seq. (the “Hazardous Materials Transportation Act”); the Clean Water Act, 33 U.S.C.A. § 1251, et seq. (the “Clean Water Act”); the Clean Air Act, 42 U.S.C.A. § 7401, et seq.; and all environmental statutes, laws, ordinances, rules, regulations, rulings, orders, permits and other requirements of the State, County and City in which the Property is located.
“Hazardous Substance” or “Hazardous Substances” shall mean, at any time, one or more of the following substances:
(i)    those substances included within the definitions of “hazardous substances,” “pollutants,” “contaminants,” “hazardous materials,” “toxic substances,” or “solid waste” in any of the Environmental Laws or described, controlled or regulated under any of the Environmental Laws;

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(ii)    those substances listed by the Environmental Protection Agency (or any successor agency) as hazardous substances (40 CFR Part 302.4 and amendments thereto); and
(iii)    any material, waste or substance which is:  (A) asbestos or which contains asbestos; (B) polychlorinated biphenyls or which contain the same, including transformers or other equipment containing dielectric fluid; (C) designated as a “hazardous substance” pursuant to Section 311 of the Clean Water Act, or listed pursuant to Section 307 of the Clean Water Act; (D) hydrocarbons, oil or petroleum, petroleum products, petroleum distillate or petroleum byproducts; (E) explosives; (F) radioactive materials; (G) radon gas; or (H) formaldehyde, including urea formaldehyde foam insulation.
“Hazardous Substance Activity” means any actual, proposed or threatened storage, holding, existence, release, emission, discharge, generation, processing, abatement, removal, disposition, handling or transportation of any Hazardous Substance from, under, into or on the Property or surrounding property(ies).
“Losses” means any and all losses, liabilities, damages, demands, claims, actions, judgments, causes of action, assessments, penalties, fines, punitive damages, fees, costs and expenses of any kind or nature (including, without limitation, remediation and clean-up costs), and the reasonable fees and disbursements of engineers, environmental consultants, legal counsel, accountants, and environmental specialists) and all foreseeable and unforeseeable consequential damages.
2.    Representations and Warranties.  Borrower represents and warrants to Lender that to the best of Borrower’s knowledge, that except as may have been previously disclosed to Lender in the environmental report delivered by Borrower to Lender in connection with this Loan prior to the date of this Indemnity, except as set forth on Exhibit “B” attached hereto and incorporated herein by this reference, and except as commonly used in the operation and maintenance of properties of similar kind and nature to the Property in accordance with prudent business management practices and in a manner that does not result in any contamination of the Property:
(a)    no Hazardous Substances exist on, under or about the Property;
(b)    no Hazardous Substances have been at any time transported to or from the Property or used, generated, manufactured, stored, discharged, released or disposed of on, under or about the Property;
(c)    the Property is not in violation of any Environmental Laws and there are no past, current, or threatened claims relating to Hazardous Substances or the Environmental Laws;
(d)    there are no aboveground or below ground storage tanks on the Property; and

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(e)    all necessary permits and licenses, if any, have been obtained with regard to the use of any Hazardous Substances in, on or about the Property.
3.    Covenants.  Borrower shall:
(a)    comply, and use its best efforts to require all tenants or occupants of the Property to comply, with all Environmental Laws;
(b)    not install, use, generate, manufacture, store, treat, release or dispose of, nor permit the installation, use, generation, storage, treatment, release or disposal of, any Hazardous Substances on, under or about the Property, nor transport any Hazardous Substances to or across the Property, except in full accordance with the Environmental Laws;
(c)    submit to Lender, upon Lender’s written request, copies of any reports or documentation relating to the installation, use, generation, storage, treatment, release or disposal of, or transportation of, any Hazardous Substances on, under or about the Property;
(d)    promptly advise Lender in writing of any and all (i) claims or assertions which may be received by Borrower or of which any Indemnitor may become aware, relating to alleged violations of any of the Environmental Laws; (ii) spills, releases, contaminations or other actions indicating the presence of Hazardous Substances on, under or about the Property; (iii) any remedial action taken by Indemnitor, or any tenants or occupants of the Property, in response to any of the items described in subsection (ii) above; and (iv) environmental conditions on neighboring or adjoining properties, of which Indemnitor becomes aware, which could possibly cause the Property to be subject to any restrictions or compliance obligations under any of the Environmental Laws;
(e)    not install or allow to be installed any fuel tanks, whether aboveground or below ground, on the Property;
(f)    not create or permit to continue in existence any lien upon the Property imposed under any Environmental Law;
(g)    not make any change in the use or condition of the Property which might lead to the presence on, under or about the Property of any Hazardous Substances which is not in accordance with any applicable Environmental Law, without the prior written consent of Lender; and
(h)    not make any change in the use or condition of the Property which would require, under any applicable Environmental Law, notice be given to or approval be obtained from any governmental agency in the event of a transfer of ownership or control of the Property, without the prior written consent of Lender.
4.    Notices from Indemnitor.  Each Indemnitor shall provide Lender with prompt written notices of:  (i) any proceeding or inquiry by any governmental or nongovernmental entity or person with respect to a Hazardous Substance Activity or the presence of any Hazardous Substance 

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on, under, from or about the Property, or the migration of such Hazardous Substance from or to other property(ies), (ii) all claims made or threatened by any third party against Indemnitor or the Property, or any other owner, tenant, or operator of the Property relating to any Environmental Laws, loss or injury resulting from any Hazardous Substance or Hazardous Substance Activity, and (iii) any Indemnitor’s discovery of any occurrence or condition on any real property adjoining or surrounding the Property that could cause the Property, or any portion thereof, to be subject to any investigation or cleanup of the Property pursuant to any Environmental Law, or that could result in Borrower or any Indemnitor becoming liable for any cost related to any investigation or cleanup of such Property.  Borrower shall deliver to Lender any documentation or records as Lender may reasonably request and which are susceptible of being obtained by Borrower without undue cost or expense and without the necessity for initiating legal proceedings to obtain the same.
5.    License.  Borrower grants to Lender and its employees, agents, consultants and contractors, an irrevocable license and authorization to enter upon the Property (upon reasonable prior notice) and inspect the Property, and perform such tests (including without limitation soils and subsurface testing) as Lender in its reasonable discretion deems necessary or desirable for the purpose of determining or verifying the presence or absence of Hazardous Substances on, under or about the Property, and verifying compliance with this Indemnity by Borrower and the tenants and occupants of the Property.  Lender agrees not to undertake such inspections and tests unless Lender has a reasonable good faith belief, based upon the receipt of information from an outside source, that Hazardous Substances may be present on, under or about the Property, or that a violation of the Environmental Laws may have occurred.  If Lender discovers the presence of any Hazardous Substances which were not previously disclosed by Indemnitor, then Indemnitor shall pay Lender’s actual costs for such inspections and tests, upon demand.  Lender shall be authorized, but shall not be required by Indemnitor, to release any information obtained through its inspections and testing to any governmental agency or authority which may demand the same.  Lender shall defend and indemnify Borrower against any losses, costs, expenses or liabilities incurred by Borrower as the result of any intentional act or gross negligence committed by Lender or its authorized agents or employees as a result of any activities of Lender or such employees or agents on or about the Property and pursuant to this Indemnity.
6.    Remedial Work.  Borrower shall promptly perform all necessary remedial work in response to the presence of any Hazardous Substances on the Property, any violation of any Environmental Laws, or any claims or requirements made by any governmental agency or authority.  All such work shall be conducted by licensed and reputable contractors pursuant to written plans approved by the agency or authority in question (if applicable), under proper permits and licenses (if applicable) with such insurance coverage as is customarily maintained by prudent property owners in similar situations.  If the cost of the work exceeds $50,000, then Lender shall have the right of prior approval over the environmental contractor and plans, which shall not be unreasonably withheld or delayed.  All costs and expenses of the remedial work shall be promptly paid by Indemnitor.  In the event Borrower fails to undertake the remedial work, or fails to complete the same within a reasonable time period after the same is undertaken, and if Lender is of the good faith opinion that Lender’s security in the Property is jeopardized thereby, then Lender shall have the right to undertake or complete the remedial work itself.  In such event all costs of Lender in doing so, including all fees and expenses of environmental consultants, engineers, attorneys, accountants 

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and other professional advisors, shall become a part of the Loan described above and shall be due and payable from Indemnitor upon demand.  Such amount shall be secured by the Loan Documents, and failure to pay the same shall be an event of default under the Loan Documents.  In the event any Hazardous Substances are removed from the Property, either by Borrower or Lender, the number assigned by the United States Environmental Protection Agency to such Hazardous Substances shall be solely in the name of Borrower, and Borrower shall have any and all liability for such removed Hazardous Substances.  Promptly following completion the remedial work, Borrower shall obtain and deliver to Lender, an environmental report in form and substance acceptable to Lender from an environmental consultant acceptable to Lender, stating that all required action has been taken, and that upon completion of such action, the Property is, to the knowledge of such professional, then in compliance with the applicable Environmental Laws.
7.    Indemnity Agreement.  Each Indemnitor, jointly and severally, agrees to defend, unconditionally indemnify, and hold Lender harmless from and against any and all Losses which may occur as a result of any Hazardous Substance Activity or results directly or indirectly from the presence of Hazardous Substances on, under or around the Property, unless the Loss is the result of any intentional act or gross negligence committed by Lender or its authorized agents as a result of any activities of Lender or such agents on the Property.
Indemnitor shall assume the burden and expense of defending all suits, administrative proceedings and disputes of any description with all persons, entities, political subdivisions or government agencies arising out of the matters to be indemnified under this Indemnity.  Indemnitor shall pay, promptly upon entry, any nonappealable order, judgment or other final resolution of any claim or dispute arising out of the matters to be indemnified under this Indemnity and shall pay promptly when due any fines, penalties or agreed settlements arising out of the matters to be indemnified under this Indemnity.  In the event that such payment is not made, Lender, at its sole discretion, may proceed to file suit against Indemnitor to compel such payment.
8.    Payment of Lender’s Expenses.  Indemnitor shall pay to Lender all costs and expenses (including, without limitation, the reasonable fees and disbursements of Lender’s engineers, consultants, environmental specialists and the reasonable charges of Lender’s in‐house legal counsel) incurred by Lender in connection with this Indemnity or the enforcement hereof.  Indemnitor shall also pay to Lender all costs and expenses associated with Lender’s retention of outside counsel for advice or other representation in any litigation, contest, dispute, suit or proceeding (whether instituted by Lender, Borrower, or any other party, including any governmental agency charged with enforcement of any Environmental Law) in any way relating to this Indemnity or the enforcement hereof.
9.    Independent Liability.  The obligations of each Indemnitor under this Indemnity are independent of, and shall not be measured, limited or affected by (i) any amounts at any time owing under the Loan or secured by any of the Loan Documents, (ii) the sufficiency or insufficiency of any collateral (including, without limitation, the Property) given to Lender to secure repayment of the Loan, (iii) the consideration given by Lender or any other party in order to acquire the Property, or any portion thereof, if Lender has acquired title to or any interest in the Property, (iv) the modification, expiration or termination of the Note or any other Loan Document, (v) the discharge 

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or repayment in full of the Loan (including, without limitation, by amounts paid or credit bid at a foreclosure sale or by discharge in connection with a deed in lieu of foreclosure), or (vi) any indemnity contained in any of the Loan Documents which is similar or in addition hereto.
10.    Survival of Obligations.  Each Indemnitor’s obligations hereunder shall survive Borrower’s payment of the Debt and the subsequent sale or other transfer of the Property.  The rights of Lender under this Indemnity shall be in addition to any other rights and remedies of Lender against each Indemnitor under any other document or instrument now or hereafter executed by such Indemnitor, or at law or in equity (including, without limitation, any right of reimbursement or contribution pursuant to CERCLA), and shall not in any way be deemed a waiver of any such rights.  Indemnitor agrees that it shall have no right of contribution (including, without limitation, any right of contribution under CERCLA) or subrogation against Lender or any other party unless and until all obligations of Indemnitor hereunder have been satisfied and the Debt is repaid in full.  Each Indemnitor further agrees that, to the extent that the waiver of its rights of subrogation and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation or contribution of Indemnitor shall be junior and subordinate to the rights of Lender against Indemnitor hereunder.
11.    Payment of Obligations.  All obligations of Borrower hereunder shall be deemed a part of the Debt and the repayment of such obligations shall be secured by the same security that exists with respect to the Debt.  All such obligations shall be payable on demand, and any amount due and payable hereunder to Lender by any Indemnitor which is not paid within thirty (30) days after written demand therefor from Lender, with an explanation of the amounts demanded, shall bear interest from the date of such demand at the Default Rate as defined in the Note.  If Indemnitor consists of more than one person or entity, then the obligations and liabilities of each person or entity shall be joint and several.
12.    Recourse.  Borrower’s liability hereunder shall not be subject to, limited by or affected in any way by any “non-recourse” provisions, if any, contained in the Loan Documents.  Borrower agrees that the obligations of Borrower hereunder are separate, independent of and in addition to the undertakings of Borrower under the Note.  Indemnitor agrees that a separate action may be brought to enforce the provisions of this Indemnity which shall in no way be deemed to be an action on the Note, whether or not Lender would be entitled to a deficiency judgment following a judicial foreclosure or sale under the Security Instrument and Indemnitor waives any right to require that any action be brought by Lender against Borrower or any other person or that any other remedy under the Loan Documents be exercised.  Lender may, at its option, proceed against Borrower to collect monies when due or to obtain performance under this Indemnity, without first proceeding against the Borrower and without first resorting to the Note and Security Instrument or any other remedy under the Loan Documents.
13.    Obligations Absolute.
(a)    The obligations of Indemnitor hereunder shall remain in full force without regard to, and shall not be impaired by the following, any of which may be taken in such manner, upon such terms and at such times as Lender, in its sole discretion, deems advisable without the consent of, or notice to, Borrower, nor shall any of the following give Borrower 

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any recourse or right of action against Lender:  (1) any express or implied amendment, modification, renewal, addition, supplement, extension or acceleration of or to the Note, the Security Instrument or any of the Loan Documents; (2) any exercise or non-exercise by Lender of any right or privilege under any of the Documents; (3) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to any indemnitors or borrower, or any affiliate of Borrower or any action taken with respect to this Indemnity by any trustee or receiver, or by any court, in any such proceeding, whether or not Borrower shall have had notice of knowledge of any of the foregoing; (4) any release, waiver or discharge of the Borrower or any endorser from liability under any of the Loan Documents or any Borrower’s grant to Lender of a security interest, lien or encumbrance in any of the Borrower’s property; (5) any subordination, compromise settlement, release (by operation of law or otherwise), discharge, compound, collection, or liquidation of any of the Loan Documents or any collateral described in any of the Documents or otherwise, or any substitution with respect thereto; (6) any assignment or other transfer of any of the Documents by Lender, in whole or in part; (7) any acceptance of partial performance of any of the obligations of Borrower under the Documents; and (8) any bid or purchase at any sale of the collateral described in the Loan Documents or otherwise.
(b)    Indemnitor unconditionally waives any defense to the enforcement of this Indemnity including, without limitation:  (1) all presentments, demands, demands for performance, notices of nonperformance, protests, notices of protest, dishonor, nonpayment, partial payment, default and protest, notices of acceptance of this Indemnity and all other notices and formalities to which Indemnitor may be entitled, except as specifically provided for herein; (2) any right to require Lender to proceed against or exhaust any collateral described in the Loan Documents or to pursue any other remedy whatsoever; (3) any defense arising by reason of any invalidity or unenforceability of any of the Loan Documents or of the manner in which Lender has exercised its remedies under the Loan Documents; and (4) any defense based upon an election of remedies by Lender including, without limitation, any election to proceed by judicial or nonjudicial foreclosure of any security, whether real property or personal property security, or by deed in lieu thereof, and whether or not every aspect of any foreclosure sale is commercially reasonable, or any election of remedies, including but not limited to remedies relating to real property or personal property security, which destroys or otherwise impairs the subrogation rights of Indemnitor.
14.    Successors and Assigns.  This Indemnity shall be binding upon each Indemnitor, its heirs, personal representatives, successors and assigns, and shall inure to the benefit of and shall be enforceable by Lender and its successors, endorsees and assigns and by any transferee of the Loan or (after foreclosure or deed in lieu thereof) the Property, by any party to whom Lender assigns this Indemnity.
15.    Governing Law/Jurisdiction and Venue.  This Indemnity shall be governed by and construed in accordance with the laws of jurisdiction in which the Property is located without regard to the conflicts of law provisions thereof (“Governing State”).  EACH INDEMNITOR HEREBY CONSENTS TO PERSONAL JURISDICTION IN THE GOVERNING STATE.  VENUE OF ANY ACTION BROUGHT TO ENFORCE THIS INDEMNITY OR ANY OTHER 

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LOAN DOCUMENT OR ANY ACTION RELATING TO THE LOAN OR THE RELATIONSHIPS CREATED BY OR UNDER THE LOAN DOCUMENTS (“ACTION”) SHALL, AT THE ELECTION OF LENDER, BE IN (AND IF ANY ACTION IS ORIGINALLY BROUGHT IN ANOTHER VENUE, THE ACTION SHALL AT THE ELECTION OF LENDER BE TRANSFERRED TO) A STATE OR FEDERAL COURT OF APPROPRIATE JURISDICTION LOCATED IN THE GOVERNING STATE.  INDEMNITOR HEREBY CONSENTS AND SUBMITS TO THE PERSONAL JURISDICTION OF THE GOVERNING STATE AND OF FEDERAL COURTS LOCATED IN THE GOVERNING STATE IN CONNECTION WITH ANY ACTION AND HEREBY WAIVES ANY AND ALL PERSONAL RIGHTS UNDER THE LAWS OF ANY OTHER STATE TO OBJECT TO JURISDICTION WITHIN SUCH STATE FOR PURPOSES OF ANY ACTION.  Each Indemnitor hereby waives and agrees not to assert, as a defense to any Action or a motion to transfer venue of any Action, (i) any claim that it is not subject to such jurisdiction, (ii) any claim that any Action may not be brought against it or is not maintainable in those courts or that this Indemnity may not be enforced in or by those courts, or that it is exempt or immune from execution, (iii) that the Action is brought in an inconvenient forum, or (iv) that the venue for the Action is in any way improper.
16.    Severability.  Every provision of this Indemnity is intended to be severable.  If any provision of this Indemnity or the application of any provision hereof to any party or circumstance is declared to be illegal, invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction, such invalidity shall not affect the balance of the terms and provisions hereof or the application of the provision in question to any other party or circumstance, all of which shall continue in full force and effect.
17.    Waivers.  No failure or delay on the part of Lender to exercise any power, right or privilege under this Indemnity shall impair any such power, right or privilege, or be construed to be a waiver of any default or an acquiescence therein, nor shall any single or partial exercise of such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.  No provision of this Indemnity, including but not limited to this Section, may be changed, waived, discharged or terminated except by an instrument in writing signed by the party against whom enforcement of the change, waiver, discharge or termination is sought, and the parties hereby:  (a) expressly agree that it shall not be reasonable for any of them to rely on any alleged, non-written amendment to this Indemnity; (b) irrevocably waive any and all right to enforce any alleged, non-written amendment to this Indemnity; and (c) expressly agree that it shall be beyond the scope of authority (apparent or otherwise) for any of their respective agents to agree to any non-written modification of this Indemnity.
18.    Notices.  All notices hereunder shall be in writing.  All notices to be given hereunder (including, without limitation, notices of sale or default) may be given by any of the following means:  (i) personal service, (ii) overnight delivery by a reliable nationally-recognized overnight courier, (iii) U.S. Mail, postage thereon prepaid, return receipt requested, or (iv) facsimile transmission, followed by U.S. Mail.  Written notice shall be deemed effective as follows:  (i) if by personal service or overnight delivery, upon delivery or first attempted delivery (whether or not actually received), (ii) if by U.S. Mail, three (3) days after deposit in the U.S. Mail, and (iii) if by facsimile transmission, followed by U.S. Mail, upon electronic confirmation of receipt in the 

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recipient’s office prior to 5:00 p.m. local time at the recipient’s office.  Notices to Indemnitor or Lender shall be addressed to the mailing address for the applicable party shown in the caption hereof, and a copy of any notice to Lender shall also be delivered to Lender at 16600 Swingley Ridge Road, Chesterfield, Missouri 63017, “Attention:  Global Legal Services.”  Each of the parties may hereafter designate a different address for notices hereunder by providing notice of such designation to the other parties pursuant to the procedures set forth above.
19.    Waiver of Jury Trial.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH INDEMNITOR AND LENDER EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION-BASED ON THE LOAN OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THE LOAN, THIS INDEMNITY, THE NOTE, THE SECURITY INSTRUMENT, OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN), OR ACTION OF ANY INDEMNITOR OR LENDER.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER’S MAKING OF THE LOAN.
20.    No Waiver.  Notwithstanding any provision herein or in the Loan Documents, or any rights or remedies granted by 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 Loan Documents shall be deemed or construed to be a waiver or relinquishment of any such rights or benefits under the “security interest exception.”
21.    Counterparts.  This Indemnity may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one in the same agreement.
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IN WITNESS WHEREOF, this Indemnity is executed effective as of the day and year first written above.

BORROWER:

ARHC PPLVLGA01, LLC, a Delaware 
limited liability company 

By:    /s/ Jesse C. Galloway
Print Name: Jesse C. Galloway
Title: Authorized Signatory

CO-INDEMNITOR:

AMERICAN REALTY CAPITAL HEALTHCARE TRUST III, INC., a Maryland corporation 

By:    /s/ Thomas P. D’Arcy
Print Name: Thomas P. D’Arcy
Title: President

Environmental Indemnity Agreement – Signature Page

Loan No. 73100202

Exhibit “A”
Environmental Indemnity Agreement
EXHIBIT A
LEGAL DESCRIPTION

All that tract or parcel of land lying and being in Land Lot 9, 7th District, Gwinnett County, Georgia and being more particularly described as follows:

BEGINNING at an iron pin set at the northeast corner of a mitered  intersection of the northerly right-of-way line of Philips Boulevard (having an 80-foot right-of-way) and the easterly right-of-way line of Katherine Oak Court (having a 60-foot right-of-way); Thence running along the easterly  right-of-way  line of  Katherine  Oak  Court,  South 79°02'41" West,  15.56 feet to an iron pin set; Thence, North 55°57'19" West, 250.78 feet to a :W' rebar found; Thence leaving said easterly right-of-way line of Katherine Oak Court and running, North 34°02'41" East, 87.26 feet to a %" rebar found; Thence, North 51°26'15" East,  227.21 feet  to  a  point; Thence,  North 74°19'54"  East,  304.39 feet  to  a  point; Thence,  South 72°25'50"  East, 231.02 feet to a parker kalon nail set; Thence,  South 15°44'52" East, 50.93 feet to an iron pin set along the northerly right-of-way line of Philip Boulevard;  Thence  running  along  the  northerly  right-of-way  line of  Philip  Boulevard, South 68°24'39" West, 141.25 feet to a point; Thence, North 21°35'17" West, 4.54 Feet to  a  point;  Thence,  South  68°34'22"  West,  89.34  feet  to  a  point;  Thence,  South 66°53'15" West, 63.97 feet to a point; Thence, South 61°52'30" West, 61.94 feet to a point; Thence, 50.90 feet along the arc of a curve to the left having a radius of 684.47 feet and being scribed by a chord bearing South 58°02'10" West, 50.89 feet to a point; Thence, South 34°05'39" East, 3.11 feet to a point; Thence, 220.36 feet along the arc of a curve to the left having a radius of 681.36 feet and being scribed by a chord bearing South 46°38'35" West, 219.40 Feet to an iron pin set and the true POINT OF BEGINNNING.

Said tract contains 3.41 acres (148,721 square feet) more or less, as shown in a survey prepared for Grove Street Lawrenceville, LLC, ICM VI - Philip Centre, LP, RGA Reinsurance Company, its successors and/or assigns, Republic Commercial Title Company, LLC and First American Title Insurance Company by Point To Point Land Surveyors, Inc. dated July 25, 2012 and last revised September 26, 2012.

Being all of Tract I as shown on Plat entitled "A Subdivision Plat Prepared for: Grove Street Lawrenceville, LLC" recorded in Plat Book 129, Page 154, 155 of the  
Public Records of Gwinnett County, Georgia.  

                                               
TOGETHER WITH, the rights, privileges, easements and appurtenances created by the
following:

Loan No. 73100202

		
	a.
	Terms and conditions of that certain Easement Agreement between Oxford Lane JV LLC and Grove Street Lawrenceville, LLC, dated March 16, 2007, filed March 19, 2007 and recorded in Deed Book 47688, Page 63, aforesaid records.

		
	b.
	Terms  and condition of that  certain  Storm Water  Easement  and  Maintenance

Agreement between Oxford Lane JV LLC and Grove Street Lawrenceville, LLC, dated March 16, 2007, filed March 19, 2007 and recorded in Deed Book 47688, Page 50, aforesaid records.

		
	c.
	Terms and conditions of that certain Reciprocal Easement Agreement  by and between Grove Street Lawrenceville, LLC and ICM VI-Philip Centre, LP, dated September 27, 2012 and recorded in Deed Book 51698, Page 177 aforesaid records.

2

Loan No. 73100202

Exhibit “B”
Environmental Indemnity Agreement
Exceptions to Representations and Warranties

None.

Exhibit “B” - 1Exhibit

Exhibit 10.20
Loan No. 73100202

SEPARATE GUARANTY OF CARVEOUT OBLIGATIONS
(Loan No. 73100202)
This Separate Guaranty of Carveout Obligations (the “Guaranty”) is made as of the 14th day of August, 2015 (the “Effective Date”), by AMERICAN REALTY CAPITAL HEALTHCARE TRUST III, INC., a Maryland corporation, whose address is 405 Park Avenue, 14th Floor, New York, New York, 10022, Attn: Healthcare Counsel (the “Guarantor”), in favor of RGA REINSURANCE COMPANY, a Missouri corporation, whose address is c/o RGA Mortgage Loan Servicing LLC, P.O. Box 771320, St. Louis, Missouri  63177, and its successors and assigns (the “Lender”).
For and in consideration of the premises set forth herein and in order to induce the Lender to consent to the assumption of the loan evidenced that certain Promissory Note dated September 27, 2012 (the “Note”) in the principal amount of $5,200,000.00 (the “Loan”) by ARHC PPLVLGA01, LLC, a Delaware limited liability company (“Borrower”) pursuant to that certain Consent and Assumption Agreement With Release dated of even date herewith  executed by, among others, Lender, Borrower and Guarantor (the “Assumption Agreement”), being recorded on or about the date hereof in the office of the Clerk of the Superior Court for Gwinnett County, Georgia (the “Recorder’s Office”), which Note was originally made by ICM VI- Philip Center, LP, a Georgia limited partnership (the “Original Borrower”) in favor of Lender, the Guarantor hereby agrees as follows:

1.GUARANTEE OF CARVEOUT OBLIGATIONS
In consideration of Lender agreeing to make the Loan, Guarantor hereby irrevocably, absolutely, unconditionally and jointly and severally guarantees the full and prompt payment to Lender of all amounts due or arising from or in connection with the following obligations (the “Carve out Obligations”):  (a) the obligation to pay any amounts advanced or expenses incurred by Lender under the Note, the Deed to Secure Debt, Assignment of Leases and Rents and Security Agreement dated September 27, 2012, executed by Original Borrower in favor of Lender and recorded in the Recorder’s Office on October 5, 2012 in Book 51698, Page 0177 securing the Note (the “Security Instrument”) or any other instrument executed by Borrower or, to the extent assumed by Borrower, Original Borrower in connection with or given as security for the Note, including but not limited to, that certain Environmental Indemnity Agreement dated of even date herewith executed by Borrower and Guarantor in favor of Lender and the Assumption Agreement (the “Loan Documents”) with respect to any of those matters set forth in (i) through (x) below (the “Carveouts”), (b) the obligation to defend and hold Lender harmless from and against any claims, judgments, causes of action or proceedings arising from any of the Carveouts; (c) the obligation to indemnify Lender with respect to any costs, damages, losses, including attorney’s fees, suffered or incurred by Lender in connection with or arising from any of the Carveouts, and (d) the obligation to repay the entire indebtedness evidenced by the Note, the Security Instrument and other Loan Documents, if Lender’s exculpation of Borrower from personal liability has become void as set forth in the Loan Documents.  The Carveouts are:

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(i)    material written misrepresentation by the Borrower with respect to the Loan;
(ii)    waste of the property described in the Security Instrument (the “Property”) (which shall include damage, destruction or disrepair of the Property caused by a willful act or grossly negligent omission of the Borrower, but shall exclude ordinary wear and tear in the absence of gross negligence);
(iii)    misappropriation of tenant security deposits (including proceeds of tenant letters of credit), insurance proceeds or condemnation proceeds with regard to the Property;
(iv)    failure to pay ground rent, property taxes, assessments or other lienable impositions with regard to the Property, except to the extent funds for payment of such items were placed and remain in escrow with the Lender;
(v)    failure to pay to the Lender (a) all rents, income and profits collected more than one month in advance, and (b) all rents, income and profits (including  any rent for the last month of the lease term under any lease in force at the time of default), received with respect to the Property during any period when there exists a default under the Note or any of the Loan Documents, net of amounts used to pay the reasonable and customary operating and maintenance expenses of the Property;
(vi)    removal of fixtures or Personal Property (as defined in the Security Instrument) from the Property, unless replaced in a commercially reasonable manner;
(vii)    any amounts expended by Lender in connection with the foreclosure of the Security Instrument or expenses incurred by Lender in connection with any proceeding brought to enforce the terms of the other Loan Documents following default;
(viii)    terminating or amending a lease of the Property in violation of the Loan Documents;
(ix)    failure to maintain all insurance as required by the Security Instrument, except to the extent funds for payment of said insurance premiums were placed and remain in escrow with the Lender; and
(x)    liability of the Borrower under the Environmental Indemnity Agreement or the provisions set forth in the Security Instrument pertaining to hazardous materials or toxic substances found in, on or under the Property.
Guarantor acknowledges that the Loan is made solely for business purposes and that the Guarantor will be liable for a deficiency judgment after any foreclosure or trustee’s sale or deed in lieu of foreclosure or trustee’s sale that the Lender elects to prosecute or accept, to the extent that liability for the Carveout Obligations have remained unsatisfied.  Any such deficiency or any 

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judgment therefor shall bear interest at the Default Rate (as defined in the Note) from and after the date of such foreclosure or trustee’s sale or the Lender’s or its affiliate’s acceptance of a deed in lieu thereof until and including the date the deficiency or judgment is paid.
2.    INDEMNITY AND HOLD HARMLESS
Guarantor jointly and severally agree to indemnify the Lender and hold it harmless, to the extent of the Lender’s actual damages and losses, with respect to any circumstance or event comprising a Carveout Obligation.  This obligation includes the protection of the Lender from, and the defense of the Lender against, any and all actions, suits, proceedings, demands, assessments, adjustments, penalties or other assertions of liability arising as a result of or in connection with the Carveouts, and the indemnification of the Lender from and against all out‐of-pocket costs and expenses sustained by the Lender in enforcing this Guaranty, including reasonable attorneys’ fees and expenses, actually incurred.
3.    CONDITIONAL GUARANTEE OF ENTIRE INDEBTEDNESS
Notwithstanding anything herein to the contrary set forth herein or in any instrument given as security for the Note, Guarantor hereby irrevocably, absolutely, unconditionally and jointly and severally guarantees the full and prompt payment to Lender of the entire indebtedness evidenced by the Note and secured by the Loan Documents in the event of (a) any fraud or intentional misrepresentation by the Borrower, (b) a voluntary transfer or encumbrance of the Property, or any direct or indirect beneficial ownership interest therein, in violation of the Loan Documents, or (c) Borrower’s filing of a voluntary petition for reorganization under Title 11 of the United States Code (or under any other present or future law, domestic or foreign, relating to bankruptcy, insolvency, reorganization proceedings or otherwise similarly affecting the rights of creditors), unless, prior to filing, Borrower offers to enter into Lender’s choice of either an agreement to permit an uncontested foreclosure, or an agreement to deliver a deed in lieu of foreclosure, Lender accepts Borrower’s offer and the agreement is consummated within sixty (60) days of Lender’s acceptance of the offer.  After the Lender accepts such an offer, default by the Borrower in fulfilling the terms of the accepted offer shall trigger personal liability of the Borrower for the entire indebtedness due under the Note and other Loan Documents and Guarantor’s guarantee thereof.  No such offer shall be conditioned on any payment by the Lender, on the release of Borrower or any Guarantor from any obligation or liability under the Loan Documents, or on any other concession.  Guarantor’s personal liability for the Carveout Obligations shall survive foreclosure of the Security Instrument (or Lender’s acquisition of the Property by a deed in lieu of foreclosure).
This Guaranty is not a guarantee of collection, but rather is an irrevocable, absolute and unconditional, continuing guarantee of payment and performance.  In this regard, the Guarantor hereby acknowledges and consents that the guarantee set forth in this Guaranty may not be revoked as to any present or future advances to or existing or additional liability incurred by the Borrower under the terms of the Note or any of the Loan Documents.  The guarantee set forth in this Section shall terminate when the Note and the indebtedness evidenced thereby has been paid in full.

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Guarantor hereby recognizes and acknowledges that they will derive substantial economic benefit from the loan from Lender to Borrower in accordance with said Note and Security Instrument and, in consideration therefore, Guarantor has agreed to enter into this Guaranty.
4.    REPRESENTATIONS AND WARRANTIES
The Guarantor hereby covenants, represents and warrants to the Lender as follows:
(a)    The execution and performance of this Guaranty and all guaranties, indemnities and covenants herein will not result in any breach of, or constitute a default under, any contract, guarantee, document or other instrument to which any of the Guarantor is a party or by which the Guarantor may be bound or affected, and do not and will not violate or contravene any law to which the Guarantor is subject; nor do any such other instruments impose or contemplate any obligations which are or will be inconsistent with this Guaranty.
(b)    No approval by, authorization of, or filing with any federal, state or municipal or other governmental commission, board or agency or other governmental authority is necessary in connection with the authorization, execution and delivery of this Guaranty.
(c)    This Guaranty has been duly executed and delivered and constitutes the legal, valid and binding obligations of the Guarantor, and is enforceable against the Guarantor in accordance with its terms.  
(d)    All financial information furnished by the Guarantor to Lender is true, correct and complete in all material respects and does not omit to state any fact or circumstance necessary to make the statements contained therein not misleading.
(e)    The financial statement of each of the Guarantor furnished to Lender is true and accurate as of its date.  There has been no material adverse change in the Guarantor’s financial condition since the date of said financial statement.
(f)    No Guarantor is currently the subject of, nor intends to take any action to become the subject of any bankruptcy court filing, insolvency proceeding, receivership, composition or assignment for the benefit of creditors.
(g)    There are no material actions, suits or proceedings pending or, to the actual knowledge of the Guarantor, threatened against or affecting any Guarantor.
5.    FINANCIAL REPORTS
On or before March 31 of each year hereafter during the term of the Loan, Guarantor shall deliver to the Lender, its successors and assigns or authorized servicer, copies of their financial statements.  The Guarantor shall certify that such statements are true and correct, and are based upon records compiled in conformity with recognized accounting practices.  Lender expressly reserves the right to require such a certification by an independent certified public accountant if it 

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has reason to believe that any previously provided financial statement is misleading in any material respect.
6.    DEFAULT
A “Default” shall exist under this Guaranty if any of the following events occur:
(a)    Any Guarantor shall fail to pay any monetary obligation resulting from the Agreement within five (5) business days after written notice and demand by Lender.
(b)    Any Guarantor shall fail to perform, observe, or comply with any non‐monetary covenant under this Guaranty, other than those specifically identified below in this Section 6, within thirty (30) days after written notice from the Lender demanding such performance, observance, or compliance; provided, however, if Guarantor is diligently in good faith pursuing the cure within such thirty (30) day period, and thereafter diligently in good faith pursues the same to completion, the cure period shall be extended as necessary but not more than sixty (60) days from the date of written notice.
(c)    Any Guarantor shall file a petition in bankruptcy or for relief from creditors under any present or future law that affords general protection from creditors; or any other person shall file an involuntary petition in bankruptcy against any Guarantor; or the filing of any other action that may result in a composition of debts, provide for the marshaling of assets for the satisfaction of such Guarantor debts, or result in the judicially ordered sale of assets for the purpose of satisfying obligations to creditors (unless a motion for the dismissal of the petition or other action is filed within ten (10) days and results in its dismissal within sixty (60) days of the filing of the petition or other action).
(d)    The dissolution, liquidation or winding up of any Guarantor that is not a natural person shall commence, or its legal existence shall cease, or any Guarantor who is a natural person shall die, unless either (A) following the related event, any one or more of the remaining Guarantors have an aggregate net worth equal to or in excess of the Guarantors’ aggregate net worth (excluding the value of the Carveout Guarantors’ equity in the Property) represented to the Lender as of the date hereof (“Guarantor Net Worth Requirement”), or (B) the Lender is promptly advised of the event, and the Borrower or remaining Guarantors (or the executor of their estate, as applicable) succeed in obtaining a replacement Guarantor acceptable to Lender, in its sole discretion (a “Replacement Guarantor”), within one hundred eighty (180) days of the subject event.  If required for the determination of compliance with the Guarantor Net Worth Requirement, the Guarantors and any prospective replacement Guarantors shall have the burden of proving their compliance by providing current financial statements.  Any Replacement Guarantor shall jointly and severally assume the obligations of the Guarantor under this Guaranty and the Environmental Indemnity Agreement, in a written agreement approved in writing by Lender, so that the other Guarantors and all Replacement Guarantors in the aggregate meet the Guarantor Net Worth Requirement.
7.    APPLICATION OF PAYMENTS

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All payments with respect to the indebtedness evidenced by the Note received by the Lender from the Borrower, or any party other than the Guarantor, may be applied by the Lender to the indebtedness evidenced by the Note and secured by the Loan Documents in such manner and order as the Lender desires, in its sole discretion, whether or not such application reduces the liability of the Guarantor with respect to the Carveout Obligations.  If a foreclosure sale of the property securing the Note (the “Property”) takes place, the proceeds of the sale (whether received in cash or by credit bid) shall be applied first to reduce that portion of the indebtedness which is not guaranteed under this Guaranty.
8.    UNSECURED OBLIGATION
This Guaranty is not secured by any of the Loan Documents securing the Loan.
9.    WAIVERS
9.1    Subrogation Rights Against Borrower
The Guarantor waives (a) any right of reimbursement, subrogation, exoneration, contribution, or indemnity from or by the Borrower with respect to the satisfaction by the Guarantors of any obligation of the Borrower, and (b) any “claim,” as that term is defined in the Bankruptcy Code, which the Guarantor might now have or hereafter acquire against the Borrower by virtue of the Guarantor’s performance of any obligation of the Borrower.  In connection with the waiver set forth in clause (a), the Guarantor expressly waives (i) any and all rights to subrogation to the Lender against the Borrower and (ii) any rights to enforce any remedy which the Lender may have against the Borrower and any right of participate in any collateral for the Loan.  In addition, the Guarantor hereby subordinates any and all indebtedness of the Borrower now or hereafter owed to the Guarantor to all indebtedness of the Borrower to the Lender, and covenant with the Lender not to demand or accept any payment of principal or interest on any such indebtedness while any default exists under the terms of any of the Loan Documents.
9.2    Waiver of Jury Trial
TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS GUARANTY IS HEREBY WAIVED BY THE GUARANTOR, AND IT IS AGREED BY THE GUARANTOR THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A JUDGE AND NOT BEFORE A JURY.
9.3    Marshaling of Assets
The Guarantor waives any right to cause a marshaling of the Borrower’s assets.
9.4    Homestead Laws and Exemptions
The Guarantor waives all rights and exemptions under homestead and similar laws.
9.5    Valuation of Collateral

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The Guarantor waives any right to assert that the amount paid for the property securing the Note at a lawfully conducted judicial or nonjudicial foreclosure sale is less than the value of the Property.
9.6    Protest, Demand, Dishonor
The Guarantor waives all rights of protest, demand, dishonor, presentment or any other notices or demands which might otherwise be required by any statute or rule of law now or hereafter in effect with respect to this Guaranty or any of the Carveouts.
9.7    Additional Waivers
The Guarantor waives (A) any defense based upon the Lender’s election of any remedy, (B) any defense of the statute of limitations and (C) any defense based on the Lender’s failure to disclose any information concerning the financial condition of the Borrower or any other circumstances bearing on the ability of the Borrower to pay and perform its obligations under the Loan Documents, or the Lender’s failure to provide notice of any act or omission by the Borrower from which any liability for a Carveout Obligation may have arisen.
10.    MISCELLANEOUS
10.1    Independence of Obligations
The Guarantor shall be fully and personally liable for the Carveout Obligations, and the Lender shall be entitled to maintain an independent action against the Guarantor regardless of whether Lender has commenced or completed any action against the Borrower or the Property.  The Guarantor disclaims any status as beneficiaries of any obligation of the Lender to the Borrower to provide notice of default under the Loan Documents.  If the Lender has initiated any action against the Borrower to enforce the Loan Documents, the Lender may join the Guarantor or refrain from doing so, at its sole and absolute discretion.  The liability of the Guarantor under this Guaranty shall be reinstated with respect to any amount at any time paid to Lender by the Borrower on account of the Carveout Obligations which shall thereafter be required to be restored or returned by the Lender upon the bankruptcy, insolvency or reorganization of the Borrower or any other Guarantor other than the party against whom the Lender has sought to enforce this Guaranty, as though such amount had not been paid.  Except as expressly agreed in writing by the Lender, Guarantor’s liability for the Carveout Obligations shall not be released, diminished, impaired, reduced or otherwise affected by (a) the reconveyance of the interest created by the Security Instrument, (b) the consent by the Lender to any transfer of a direct or indirect interest in the Property (whether through sale of the Property, transfers of interests in the Borrower, or a change in the form of business organization of the Borrower), or (c) any forbearance by the Lender to exercise any rights under the Loan Documents, unless those rights are expressly waived or modified in a written instrument duly executed by the Lender; provided, however, that any written modification of the Loan that affects the amount of the indebtedness evidenced by the Note may be considered in ascertaining the amount of the indebtedness for purposes of determining the amount of the Guarantor’s liability arising under Section 3 of this Guaranty, absent fraud or material written misrepresentation in connection with such a modification.

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10.2    Offsets and Defenses
No liability of the Guarantor under this Guaranty shall be released, diminished, impaired, reduced or otherwise affected by any existing or future offset, claim, or defense of the Guarantor against the Lender.  No liability of any Guarantor shall be affected because the liability of any other guarantor is limited, impaired or released by reason of a trustee’s sale or any other agreement is made or remedy is exercised by Lender, whether such limitation, impairment or release results from such person also being the Borrower or liable by reason of being any entity, natural person or general partner comprising Borrower or otherwise.
10.3    Notices
All notices hereunder shall be in writing.  All notices to be given hereunder (including, without limitation, notices of sale or default) may be given by any of the following means:  i) personal service, ii) overnight delivery by a nationally-recognized overnight courier, iii) U.S. Mail, postage thereon prepaid, return receipt requested, or iv) facsimile transmission, followed by U.S. Mail.  Written notice shall be deemed effective as follows:  i) if by personal service or overnight delivery, upon delivery or first attempted delivery, ii) if by U.S. Mail, two (2) days after deposit in the U.S. Mail, and iii) if by facsimile transmission, followed by U.S. Mail, upon electronic confirmation of receipt in the recipient’s office prior to 5:00 p.m. local time at the recipient’s office.  Notices to Guarantor or Lender shall be addressed to the mailing address for the applicable party shown in the caption hereof, and a copy of any notice to the Lender shall also be delivered to Lender at the following address: 16600 Swingley Ridge Road, Chesterfield, Missouri 63017 “Attention:  Global Legal Services.”  Each of the parties may hereafter designate a different address for notices hereunder by providing notice of such designation to the other parties pursuant to the procedures set forth above.
10.4    Entire Guaranty and Modification
This Guaranty contains the entire agreement of the Guarantor relating to the subject matter hereof, and all prior guaranties relative hereto which are not contained herein are hereby terminated.  This Guaranty may not be amended, revised, waived, discharged, released or terminated orally but only by a written instrument or instruments executed by the Lender.  Any alleged amendment, revision, waiver, discharge, release or termination that is not so documented shall not be effective as to the Lender.
10.5    Counterparts
This Guaranty may be executed in multiple counterparts, all of which taken together shall constitute one and the same Guaranty.
10.6    Governing Law
This Guaranty shall be construed and enforced according to, and governed by, the laws of Georgia without reference to conflicts of laws provisions which, but for this provision, would require the application of the law of any other jurisdiction.

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10.7    Cumulative Remedies
Every right and remedy provided in this Guaranty shall be cumulative of every other right or remedy of the Lender whether herein or by law conferred and may be enforced concurrently with any such right or remedy.  No acceptance of performance of any Carveout Obligation as to which the Guarantor shall be in Default, or waiver of particular or single performance of any obligation or observance of any covenant, shall be construed as a waiver of the obligation or covenant or as a waiver of any other Default then, theretofore or thereafter existing.
10.8    Severability
In the event that any one or more of the provisions of this Guaranty shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part, or in any respect, or in the event that any one or more of the provisions of this Guaranty shall operate, or would prospectively operate, to invalidate this Guaranty, then, and in any such event, such provision or provisions only shall be deemed to be null and void and of no force or effect and shall not affect any other provision of this Guaranty, and the remaining provisions of this Guaranty shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby.
10.9    Settlements
Upon the Lender’s request, the Guarantor shall participate in good faith and in a commercially reasonable manner in any settlement between the Borrower and the Lender which includes or may include a deed in lieu of a foreclosure or of a trustee’s sale.
10.10    Reference to Particulars
The scope of a general statement made in this Guaranty shall not be construed as having been reduced through the inclusion of references to particular items that would be included within the statement’s scope.  Therefore, unless the relevant provision of this Guaranty contains specific language to the contrary, the term “include” shall mean “include, but shall not be limited to” and the term “including” shall mean “including, without limitation.”
10.11    Assignment
The Lender may assign its rights under this Guaranty without notice to any holder of the Note and assignee of the Lender’s rights under the Loan Documents.
10.12    Survival
Except as otherwise provided in Section 6, all obligations under this Guaranty shall be binding upon the Guarantor’s heirs, personal representatives, successors and assigns, and shall survive foreclosure of the Property, delivery and acceptance of a deed to the Property in lieu of foreclosure, and the repayment of the Indebtedness.
10.13    Costs and expenses

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In addition to all other amounts payable by Guarantor hereunder, the Guarantor hereby jointly and severally agrees to pay to Lender upon demand any and all costs and expenses, including court costs and reasonable attorney’s fees which the Lender may incur in preparing to enforce, or in enforcing the obligations of the Guarantor hereunder, whether or not suit or action is filed.

SEE NEXT PAGE FOR SIGNATURE

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Loan No. 73100202    

IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed as of the Effective Date.
	
		
	 
	GUARANTOR:
 

 
AMERICAN REALTY CAPITAL 
HEALTHCARE TRUST III, INC., 
a Maryland corporation 

By:   /s/ Thomas P. D’Arcy
Print Name: Thomas P. D’Arcy
Title: President

 

 

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