Document:

United Realty Trust Incorporated 10-Q 

Exhibit 10.17

 

LOAN AGREEMENT

 

Dated as of May 21, 2014

 

Between

 

United
945 82nd Parkway Fee, LLC,

as Borrower

 

and

 

Starwood
Mortgage Capital LLC,

as Lender

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION	1
	Section 1.1	Specific Definitions	1
	Section 1.2	Principles of Construction	20
	 	 	 
	ARTICLE 2 THE LOAN	20
	Section 2.1	The Loan	20
	Section 2.2	Interest Rate	20
	Section 2.3	Loan Payments	21
	Section 2.4	Prepayments	23
	Section 2.5	Defeasance	24
	 	 	 
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES	27
	Section 3.1	Borrower Representations	27
	Section 3.2	Survival of Representations	41
	 	 	 
	ARTICLE 4 BORROWER COVENANTS	41
	Section 4.1	Borrower Affirmative Covenants	41
	Section 4.2	Borrower Negative Covenants	50
	 	 	 
	ARTICLE 5 INSURANCE, CASUALTY AND CONDEMNATION	53
	Section 5.1	Insurance	53
	Section 5.2	Casualty	58
	Section 5.3	Condemnation	59
	Section 5.4	Restoration	60
	 	 	 
	ARTICLE 6 CASH MANAGEMENT AND RESERVE FUNDS	65
	Section 6.1	Cash Management Arrangements	65
	Section 6.2	Required Repairs Funds	65
	Section 6.3	Tax Funds	65
	Section 6.4	Insurance Funds	66
	Section 6.5	Capital Expenditure Funds	67
	Section 6.6	Rollover Funds	68
	Section 6.7	Major Tenant Funds	70
	Section 6.8	Rent Concession Funds	71
	Section 6.9	Excess Cash Flow Funds	71
	Section 6.10	Security Interest in Reserve Funds	71
	Section 6.11	Property Cash Flow Allocation	72
	 	 	 
	ARTICLE 7 PROPERTY MANAGEMENT	73
	Section 7.1	The Management Agreement	73
	Section 7.2	Prohibition Against Termination or Modification	74
	Section 7.3	Replacement of Manager	74
	 	 	 
	ARTICLE 8 PERMITTED TRANSFERS	74
	Section 8.1	Permitted Transfer of the Property	74

 

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	 	 	Page
	 	 	 
	Section 8.2	Permitted Transfers of Interest in Borrower	75
	Section 8.3	Cost and Expenses	77
	 	 	 
	ARTICLE 9 SALE AND SECURITIZATION OF MORTGAGE	77
	Section 9.1	Sale of Mortgage and Securitization	77
	Section 9.2	Securitization Indemnification	79
	Section 9.3	Intentionally Omitted	81
	Section 9.4	Severance Documentation	81
	 	 	 
	ARTICLE 10 DEFAULTS	82
	Section 10.1	Events of Default	82
	Section 10.2	Remedies	85
	Section 10.3	Lender’s Right to Perform	87
	Section 10.4	Remedies Cumulative	87
	 	 	 
	ARTICLE 11 MISCELLANEOUS	87
	Section 11.1	Survival; Successors and Assigns	87
	Section 11.2	Lender’s Discretion	87
	Section 11.3	Governing Law	88
	Section 11.4	Modification, Waiver in Writing	88
	Section 11.5	Delay Not a Waiver	88
	Section 11.6	Notices	88
	Section 11.7	Trial by Jury	90
	Section 11.8	Headings	90
	Section 11.9	Severability	90
	Section 11.10	Preferences	91
	Section 11.11	Waiver of Notice	91
	Section 11.12	Remedies of Borrower	91
	Section 11.13	Expenses; Indemnity	91
	Section 11.14	Schedules Incorporated	93
	Section 11.15	Offsets, Counterclaims and Defenses	93
	Section 11.16	No Joint Venture or Partnership; No Third Party Beneficiaries	93
	Section 11.17	Publicity	93
	Section 11.18	Waiver of Marshalling of Assets	94
	Section 11.19	Waiver of Offsets/Defenses/Counterclaims	94
	Section 11.20	Conflict; Construction of Documents; Reliance	94
	Section 11.21	Brokers and Financial Advisors	95
	Section 11.22	Exculpation	95
	Section 11.23	Prior Agreements	98
	Section 11.24	Servicer	98
	Section 11.25	Joint and Several Liability	99
	Section 11.26	Creation of Security Interest	99
	Section 11.27	Assignments and Participations	99
	Section 11.28	Counterparts	99
	Section 11.29	Set-Off	100

 

    	- ii -

    	 

    

 

LOAN AGREEMENT

                
 

THIS LOAN AGREEMENT, dated
as of May 21, 2014 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”),
between STARWOOD MORTGAGE CAPITAL LLC, a Delaware limited liability company, having an address at 1601 Washington Avenue, Suite
800, Miami Beach, Florida 33139 (together with its successors and assigns, collectively, “Lender”), and United
945 82nd Parkway Fee, LLC, a Delaware limited liability company having an address at c/o United Realty Advisors, LP, 60
Broad Street, 34th Floor, New York, New York 10004 (together with its permitted successors and assigns, collectively, “Borrower”).

 

All capitalized terms used
herein shall have the respective meanings set forth in Article 1 hereof.

 

W
I T N E S S E T H :

                
 

WHEREAS, Borrower desires
to obtain the Loan from Lender; and

 

WHEREAS, Lender has advised
Borrower that subject to the terms of this Agreement and the documents to be executed in connection herewith, and based upon the
representations, warranties, covenants and undertakings of Borrower herein and therein contained, Lender is willing to make the
Loan to Borrower on the terms and conditions set forth herein and therein.

 

NOW, THEREFORE, in consideration
of the covenants set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree, represent and warrant as follows:

 

ARTICLE
1

DEFINITIONS; PRINCIPLES OF CONSTRUCTION

 

Section 1.1          Specific
Definitions.

 

For all purposes of this
Agreement, except as otherwise expressly provided:

 

“Accounts”
shall have the meaning set forth in Section 6.1.

 

“Act”
shall have the meaning set forth in Section 3.1.24(r).

 

“Affiliate”
shall mean, as to any Person, any other Person that (i) owns directly or indirectly ten percent (10%) or more of all
equity interests in such Person, and/or (ii) is in control of, is controlled by or is under common ownership or control with
such Person, and/or (iii) is a director or officer of such Person or of an Affiliate of such Person, and/or (iv) is the
spouse, issue or parent of such Person or of an Affiliate of such Person. As used in this definition, the term “control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management, policies or activities
of such Person, whether through ownership of voting securities, by contract or otherwise.

 

    	 

    	 

    

 

“ALTA”
shall mean American Land Title Association, or any successor thereto.

 

“Alteration Threshold”
shall mean 4% of the outstanding principal amount of the Loan.

 

“Annual Budget”
shall mean the operating and capital budget for the Property setting forth, on a month-by-month basis, in reasonable detail, each
line item of Borrower’s good faith estimate of anticipated Operating Income, Operating Expenses and Capital Expenditures
for the applicable Fiscal Year.

 

“Approved Annual
Budget” shall have the meaning set forth in Section 4.1.7(g).

 

“Approved Capital
Expenditures” shall mean Capital Expenditures incurred by Borrower and either (i) included in the Approved Annual
Budget or (ii) approved by Lender, which approval shall not be unreasonably withheld, conditioned or delayed.

 

“Approved Leasing
Expenses” shall mean actual out-of-pocket expenses incurred by Borrower in leasing space at the Property pursuant to
existing Leases and Leases entered into in accordance with the Loan Documents, including brokerage commissions and tenant improvements,
which expenses (i) are (A) specifically approved by Lender in connection with approving the applicable Lease, (B) incurred
in the ordinary course of business and on market terms and conditions in connection with Leases which do not require Lender’s
approval under the Loan Documents, and Lender shall have received and approved a budget for such tenant improvement costs and a
schedule of leasing commissions payments payable in connection therewith (which schedule shall including the name of the applicable
brokerage company and state whether the applicable broker is an Affiliate of Borrower or Guarantor), or (C) otherwise approved
by Lender, which approval shall not be unreasonably withheld, conditioned or delayed, and (ii) are substantiated by executed
Lease documents and brokerage agreements.

 

“Approved Operating
Expenses” shall mean Operating Expenses incurred by Borrower which (i) are included in the Approved Annual Budget
for the current calendar month, (ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other
utility service to the Property, (iii) are for property management fees payable to Manager under the Management Agreement,
such amounts not to exceed 3% of the monthly Operating Income (and provided no Sweep Event Period is in effect, an additional incentive
fee not to exceed 2% of the monthly Operating Income), or (iv) have been approved by Lender.

 

“Assignment of Leases”
shall mean that certain first priority Assignment of Leases and Rents, dated as of the date hereof, from Borrower, as assignor,
to Lender, as assignee, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

 

“Assignment of Management
Agreement” shall mean that certain Assignment of Management Agreement and Subordination of Management Fees dated as of
the date hereof among Borrower, Manager and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time.

 

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“Award”
shall mean any compensation paid by any Governmental Authority in connection with a Condemnation.

 

“Bankruptcy Code”
shall mean Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor
statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating
to bankruptcy, insolvency or creditors’ rights.

 

“Borrower”
shall have the meaning set forth in the introductory paragraph hereto, together with its successors and permitted assigns.

 

“Borrower Operating
Account” shall mean an account specified to Lender by Borrower in writing from time to time as Borrower’s operating
account.

 

“Borrower’s
Recourse Liabilities” shall have the meaning set forth in Section 11.22.

 

“Broker”
shall have the meaning set forth in Section 11.21.

 

“Business Day”
shall mean any day other than a Saturday, a Sunday or a legal holiday on which national banks are not open for general business
in (i) the State of New York, (ii) the state where the corporate trust office of the Trustee is located, or (iii) the
state where the servicing offices of the Servicer are located.

 

“Capital Expenditure
Account” shall have the meaning set forth in Section 6.5.1.

 

“Capital Expenditure
Funds” shall have the meaning set forth in Section 6.5.1.

 

“Capital Expenditures”
for any period shall mean amounts expended for replacements and alterations to the Property (excluding tenant improvements) and
required to be capitalized according to GAAP.

 

“Capital Expenditures
Work” shall mean any labor performed or materials installed in connection with any Capital Expenditure.

 

“Cardiology/Gastro
Associates” shall mean Cardiology Gastroenterology Associates of Myrtle Beach, P.A., or any successor Tenant or Tenants
occupying the Cardiology/Gastro Associates Space.

 

“Cardiology/Gastro
Associates Space” shall mean that certain space at the Property demised on the date hereof to Cardiology/Gastro Associates
in the approximate size of 16,488 square feet.

 

“Cash Management
Account” shall have the meaning set forth in Section 6.1. Lender may in its sole discretion change the Cash
Management Account from time to time.

 

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“Cash Management
Agreement” shall mean that certain Cash Management Agreement of even date herewith among Lender, Borrower, and Manager.

 

“Cash Management
Bank” shall mean the bank or banks selected by Lender to maintain the Cash Management Account. Lender may in its sole
discretion change the Cash Management Bank from time to time.

 

“Casualty”
shall have the meaning set forth in Section 5.2.

 

“Casualty and Condemnation
Account” shall have the meaning set forth in the Cash Management Agreement.

 

“Casualty Consultant”
shall have the meaning set forth in Section 5.4(b(iii).

 

“Casualty Retainage”
shall have the meaning set forth in Section 5.4(b)(iv).

 

“Certification of
Borrower” shall mean that certain Borrower’s Closing Certificate dated as of the date hereof made by Borrower to
Lender.

 

“Clearing Account”
shall have the meaning set forth in Section 6.1.

 

“Clearing Account
Agreement” shall mean that certain Deposit Account Control Agreement dated the date hereof by and among Borrower, Lender
and Clearing Bank.

 

“Clearing Bank”
shall mean Wells Fargo Bank, National Association.

 

“Closing Date”
shall mean the date of the funding of the Loan.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes
thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

 

“Condemnation”
shall mean a temporary or permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise
of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof.

 

“Control”
shall mean, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of such Person, through the ownership of voting securities, by contract or otherwise, and the terms
Controlled, Controlling and Common Control shall have correlative meanings.

 

“Creditors’
Rights Laws” shall mean any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other
relief with respect to its debts or debtors.

 

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“Debt”
shall mean the Outstanding Principal Balance together with all interest accrued and unpaid thereon and all other sums (including
the Prepayment Fee, if applicable) due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage, the Environmental
Indemnity or any other Loan Document.

 

“Debt Service”
shall mean, with respect to any particular period of time, the aggregate amount of scheduled principal and interest (if applicable)
payments due and payable under the Note.

 

“Debt Service Account”
shall have the meaning set forth in the Cash Management Agreement.

 

“Debt Service Coverage
Ratio” shall mean, a ratio, as determined by Lender in its sole discretion for the applicable period in which:

 

(a)          the numerator
is the Net Operating Income for such period; and

 

(b)          the denominator
is the Debt Service (disregarding any interest-only period and based on a thirty (30) year amortization) due for such period.

 

“Default”
shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or passage
of time, or both, would constitute an Event of Default.

 

“Default Rate”
shall mean, with respect to the Loan, a rate per annum equal to the lesser of (i) the Maximum Legal Rate or (ii) five
percent (5%) above the Interest Rate.

 

“Defeasance Collateral”
shall have the meaning set forth in Section 2.5.1(c)(i).

 

“Defeasance Lockout
Expiration Date” shall have the meaning set forth in Section 2.5.1.

 

“Defeasance Rights
and Obligations” shall have the meaning set forth in Section 2.5.3.

 

“Defeasance Security
Agreement” shall have the meaning set forth in Section 2.5.1(c)(ii).

 

“Disclosure Document”
shall have the meaning set forth in Section 9.2(a).

 

“Discount Rate”
shall mean the rate which, when compounded monthly, is equivalent to the Treasury Rate when compounded semiannually.

 

“Easements”
shall have the meaning set forth in Section 3.1.12.

 

    	- 5 -

    	 

    

 

“Eligible
Account” shall mean a separate and identifiable account from all other funds held by the holding institution that
is either (i) an account or accounts (or subaccounts thereof) maintained with a federal or state-chartered depository
institution or trust company which complies with the definition of Eligible Institution or (ii) a segregated trust
account or accounts (or subaccounts thereof) maintained with a federal or state chartered depository institution or trust
company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company is
subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in any case a combined capital and
surplus of at least Fifty Million and No/100 Dollars ($50,000,000.00) and subject to supervision or examination by federal
and state authorities. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other
instrument.

 

“Eligible Institution”
shall mean a depository institution or trust company the short term unsecured debt obligations or commercial paper of which are
rated at least A-1+ by S&P, P-1 by Moody’s, and F-1+ by Fitch in the case of accounts in which funds are held for thirty (30)
days or less or, in the case of Letters of Credit or accounts in which funds are held for more than thirty (30) days, the
long term unsecured debt obligations of which are rated at least “A” by Fitch and S&P and “Aa2” by
Moody’s.

 

“Embargoed Person”
shall have the meaning set forth in Section 4.2.15.

 

“Environmental Indemnity”
shall mean that certain Environmental Indemnity Agreement dated as of the date hereof executed by Borrower and Guarantor in connection
with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time.

 

“Equipment”
shall have the meaning set forth in the granting clause of the Mortgage.

 

“ERISA”
shall have the meaning set forth in Section 4.2.13.

 

“Event of Default”
shall have the meaning set forth in Section 10.1.

 

“Excess Cash Flow
Account” shall have the meaning set forth in Section 6.9.

 

“Excess Cash Flow
Funds” shall have the meaning set forth in Section 6.9.

 

“Exchange Act”
shall have the meaning set forth in Section 9.2(a).

 

“Exchange Act Filing”
shall have the meaning set forth in Section 9.2(c).

 

“Extraordinary Expense”
shall have the meaning set forth in Section 4.1.7(g).

 

“Fiscal Year”
shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during each year of the
Term.

 

“Fitch”
shall mean Fitch, Inc.

 

“FRBNY”
shall mean the Federal Reserve Bank of New York.

 

“Full Replacement
Cost” shall have the meaning set forth in Section 5.1.1(a)(i).

 

    	- 6 -

    	 

    

 

“GAAP”
shall mean generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board (or agencies with similar functions of comparable stature and authority within the accounting profession), or in such other
statements by such entity as may be in general use by significant segments of the U.S. accounting profession.

 

“Governmental Authority”
shall mean any court, board, agency, commission, office or authority of any nature whatsoever or any governmental unit (federal,
state, commonwealth, county, district, municipal, city or otherwise) whether now or hereafter in existence.

 

“Government Lists”
shall have the meaning set forth in Section 4.1.14(b).

 

“Gross Revenue”
shall mean all revenue derived from the ownership and operation of the Property from whatever source, including Rents and any Insurance
Proceeds, but only if and to the extent Lender elects to treat any such Insurance Proceeds as business or rental interruption Insurance
Proceeds pursuant to Section 5.4(e) hereof.

 

“Guarantor”
shall mean Jacob Frydman, an individual.

 

“Guaranty”
shall mean that certain Guaranty of Recourse Obligations of even date herewith from Guarantor for the benefit of Lender, as the
same may be amended, restated, replaced, supplemented or otherwise amended from time to time.

 

“Improvements”
shall have the meaning set forth in the granting clause of the Mortgage.

 

“Indebtedness”
shall mean, for any Person, without duplication: (i) all indebtedness of such Person for borrowed money, for amounts drawn
under a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable, (ii) all
unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable if such
amounts were advanced thereunder, (iii) all amounts required to be paid by such Person as a guaranteed payment to partners
or a preferred or special dividend, including any mandatory redemption of shares or interests, (iv) all indebtedness guaranteed
by such Person, directly or indirectly, (v) all obligations under leases that constitute capital leases for which such Person
is liable, and (vi) all obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge
agreements, in each case for which such Person is liable or its assets are liable, whether such Person (or its assets) is liable
contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures
a creditor against loss.

 

“Indemnified Liabilities”
shall have the meaning set forth in Section 11.13(b).

 

“Independent”
shall mean, when used with respect to any Person, a Person who: (i) does not have any direct financial interest or any
material indirect financial interest in Borrower or in any Affiliate of Borrower, (ii) is not connected with Borrower or
any Affiliate of Borrower as an officer, employee, promoter, underwriter, trustee, partner, member, manager, creditor,
director, supplier, customer or person performing similar functions and (iii) is not a member of the immediate family of
a Person defined in (i) or (ii) above.

 

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“Independent Accountant”
shall mean a certified public accounting firm which is Independent and which is selected by Borrower and reasonably acceptable
to Lender.

 

“Initial Interest
Period” shall have the meaning set forth in Section 2.3.1.

 

“Insurance Account”
shall have the meaning set forth in Section 6.4.1.

 

“Insurance Funds”
shall have the meaning set forth in Section 6.4.1.

 

“Insurance Premiums”
shall have the meaning set forth in Section 5.1.1(b).

 

“Insurance Proceeds”
shall have the meaning set forth in Section 5.4(b).

 

“Interest Period”
shall have the meaning set forth in Section 2.3.3.

 

“Interest Rate”
shall mean a rate of four and seven hundred eighty-eight thousandths percent (4.788%) per annum.

 

“Investor Member”
shall have the meaning set forth in Section 8.2.

 

“Lease”
shall mean any lease, sublease or sub-sublease, letting, license, concession or other agreement (whether written or oral and whether
now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy, all or
any portion of any space in the Property, and every modification, amendment or other agreement relating to such lease, sublease,
sub-sublease or other agreement entered into in connection with such lease, sublease, sub-sublease or other agreement and every
guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other
party thereto.

 

“Lease Termination
Payments” shall have the meaning set forth in Section 6.6.1(b).

 

“Legal Requirements”
shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances,
building codes, land laws, judgments, decrees and injunctions of Governmental Authorities affecting the Loan, any Secondary Market
Transaction with respect to the Loan, the Borrower or the Property or any part thereof or the construction, use, alteration or
operation thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation, zoning and
land use laws and the Americans with Disabilities Act of 1990, and all permits, licenses and authorizations and regulations relating
thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to
Borrower, at any time in force affecting the Property or any part thereof, including any which may (i) require repairs, modifications
or alterations in or to the Property or any part thereof, or (ii) in any way limit the use and enjoyment thereof.

 

    	- 8 -

    	 

    

 

“Lender Affiliate”
shall have the meaning set forth in Section 9.2(b).

 

“Lender Group”
shall have the meaning set forth in Section 9.2(b).

 

“Letter of Credit”
shall mean an irrevocable, unconditional, transferable (without payment of any transfer fee), clean sight draft letter of credit
acceptable to Lender and the Rating Agencies (either an evergreen letter of credit or one which does not expire until at least
thirty (30) Business Days after the Stated Maturity Date) in favor of Lender and entitling Lender to draw thereon in New York,
New York, issued by a domestic Eligible Institution or the U.S. agency or branch of a foreign Eligible Institution. If at
any time the bank issuing any such Letter of Credit shall cease to be an Eligible Institution, Lender shall have the right immediately
to draw down the same in full and hold the proceeds of such draw in accordance with the applicable provisions hereof.

 

“Liabilities”
shall have the meaning set forth in Section 9.2(b).

 

“Lien”
shall mean any mortgage, deed of trust, lien (statutory or otherwise), pledge, hypothecation, easement, restrictive covenant, preference,
assignment, security interest, or any other encumbrance, charge or transfer of, or any agreement to enter into or create any of
the foregoing, on or affecting all or any portion of the Property or any interest therein, or any direct or indirect interest in
Borrower or any SPC Party, including any conditional sale or other title retention agreement, any financing lease having substantially
the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s, materialmen’s
and other similar liens and encumbrances.

 

“Loan”
shall mean the loan in the original principal amount of Ten Million Three Hundred Thousand and No/100 Dollars ($10,300,000) made
by Lender to Borrower pursuant to this Agreement.

 

“Loan Documents”
shall mean, collectively, this Agreement, the Note, the Mortgage, the Assignment of Leases, the Cash Management Agreement, the
Clearing Account Agreement, the Environmental Indemnity, the Assignment of Management Agreement, the Guaranty, the Certificate
of Borrower and any other documents, agreements and instruments now or hereafter evidencing, securing or delivered to Lender in
connection with the Loan.

 

“Loan to Value Ratio”
shall mean the ratio, as of a particular date, in which the numerator is equal to the Outstanding Principal Balance and the denominator
is equal to the appraised value of the Property as determined by Lender in its sole discretion.

 

“Major Contract”
shall mean (i) any management, brokerage or leasing agreement, or (ii) any cleaning, maintenance, service or other contract
or agreement of any kind (other than Leases) of a material nature (materiality for these purposes to include, without limitation,
contracts which have monetary obligations of either party of $50,000 or more, or extend beyond one year (unless cancelable on thirty (30)
days or less notice without requiring the payment of termination fees or payments of any kind)), in either case relating to the
ownership, leasing, management, use, operation, maintenance, repair or restoration of the Property, whether written or oral.

 

    	- 9 -

    	 

    

 

“Major Lease”
shall mean any Lease which, either individually, or when taken together with any other Lease with the same Tenant or its Affiliates,
(i) covers more than 6,650 square feet at the Property or (ii) constitutes more than 15% of the total annual Rents.

 

“Major Tenant Account”
shall have the meaning set forth in Section 6.7.1.

 

“Major Tenant Funds”
shall have the meaning set forth in Section 6.7.1.

 

“Major Tenant Trigger
Period” shall mean, with respect to Cardiology/Gastro Associates, the period commencing upon the date on which:

 

(a) such Tenant (A) “goes
dark” or otherwise ceases operations in its space at the Property, (B) defaults under the terms of its Lease, (C) terminates
its Lease, or (D) vacates or otherwise fails to occupy its premises, or such Tenant provides written notice of its intention to
commence any of the foregoing;

 

(b) such Tenant (A) commences
any case, proceeding or other action (1) under any Creditors’ Rights Laws seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, or (2) seeking appointment
of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets,
or makes a general assignment for the benefit of its creditors; (B) there shall be commenced against such Tenant any case,
proceeding or other action of a nature referred to in the immediately preceding clause (A); or

 

(c) such Tenant fails to
extend the term of its Lease, on terms and conditions acceptable to Lender in its sole discretion and in accordance with the terms
of this Agreement, for a period of no less than five (5) years, on or prior to the date occurring twelve (12) months prior to such
Lease’s expiration date, or Borrower’s receipt of written notice from such Tenant of its intention to not renew its
Lease;

 

and terminating, provided
that no other Major Tenant Trigger Period has occurred and is continuing, upon:

 

(A) with regard to a Major
Tenant Trigger Period described in clause (a) above, upon the first to occur of (I) the date on which such Tenant is not in default
under its Lease, has been in occupancy of and in operation in its space at the Property for thirty (30) days (other than in connection
with a termination of its Lease, which can only be cured pursuant to clause (II)) and has delivered to Lender a tenant estoppel
certificate in form and substance satisfactory to Lender confirming the foregoing and stating that such Tenant does not intend
to vacate its space in the future, and (II) a Re-Tenanting Event;

 

(B) with regard to a Major
Tenant Trigger Period described in clause (b) above, upon the first to occur of (I) Lender’s receipt of evidence in form
and substance satisfactory to Lender that such Tenant is no longer a debtor in such proceeding and the applicable Lease has been
assumed in such proceeding and remains in full force and effect and (II) a Re-Tenanting Event; and

 

    	- 10 -

    	 

    

 

(C) with regard to a Major
Tenant Trigger Period described in clause (c) above, upon the first to occur of (I) Lender’s receipt of evidence in form
and substance satisfactory to Lender that such Tenant has extended the term of its Lease, on terms and conditions acceptable to
Lender and in accordance with the terms of this Agreement, for a period of no less than five (5) years together with a tenant estoppel
certificate from such Tenant in form and substance acceptable to Lender, and (II) a Re-Tenanting Event.

 

“Management Agreement”
shall mean the management agreement entered into by and between Borrower and the Manager, pursuant to which the Manager is to provide
management and other services with respect to the Property.

 

“Manager”
shall mean URA Property Management LLC, a Delaware limited liability company, or any other manager approved by Lender and the Rating
Agencies in accordance with the terms and conditions of the Loan Documents.

 

“Manager Termination
Ratio” shall have the meaning set forth in Section 7.3.

 

“Material Alteration”
shall have the meaning set forth in Section 4.1.11.

 

“Maturity Date”
shall mean the date on which the final payment of principal of the Note becomes due and payable as herein and therein provided,
whether at the Stated Maturity Date, by declaration of acceleration, extension or otherwise.

 

“Maximum Legal Rate”
shall mean the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved,
charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the
laws of such Governmental Authority whose laws are held by any court of competent jurisdiction to govern the interest rate provisions
of the Loan.

 

“Monthly Debt Service
Payment Amount” shall mean (i) for the Monthly Payment Date occurring in July, 2014 and for each Monthly Payment Date
occurring thereafter up to and including the Monthly Payment Date occurring in June, 2016, a payment equal to the amount of interest
which has accrued during the preceding Interest Accrual Period computed at the Interest Rate and (ii) for the Monthly Payment Date
occurring in July, 2016, and for each Monthly Payment occurring thereafter, a constant monthly payment of $53,965.85.

 

“Monthly Operating
Expense Budgeted Amount” shall mean the monthly amount for Operating Expenses set forth in the Approved Annual Budget
for the calendar month in which such Monthly Payment Date occurs.

 

“Monthly Payment
Date” shall mean the sixth (6th) day of every calendar month occurring during the Term.

 

“Moody’s”
shall mean Moody’s Investors Service, Inc.

 

“Mortgage”
shall mean that certain first priority Mortgage, Assignment of Leases and Rents and Security Agreement, dated the date
hereof, executed and delivered by Borrower as security for the Loan and encumbering the Property, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

 

    	- 11 -

    	 

    

 

“Net Operating Income”
shall mean the amount obtained by subtracting Operating Expenses from Operating Income.

 

“Net Proceeds”
shall mean: (i) the net amount of all Insurance Proceeds payable as a result of a Casualty to the Property, after deduction
of reasonable costs and expenses (including reasonable attorneys’ fees and costs), if any, in collecting such Insurance Proceeds,
or (ii) the net amount of the Award, after deduction of reasonable costs and expenses (including reasonable attorneys’
fees and costs), if any, in collecting such Award.

 

“Net Proceeds Deficiency”
shall have the meaning set forth in Section 5.4(b)(vi).

 

“Note”
shall have the meaning set forth in Section 2.1.3.

 

“Notice”
shall have the meaning set forth in Section 11.6.

 

“Obligations”
shall mean, collectively, Borrower’s obligations for the payment of the Debt and the performance of the Other Obligations.

 

“OFAC”
shall have the meaning set forth in Section 4.1.14(b).

 

“Officer’s
Certificate” shall mean a certificate delivered to Lender by Borrower which is signed by an authorized senior officer
of the manager of Borrower.

 

“Open Prepayment
Date” shall mean March 6, 2024.

 

“Operating Agreements”
shall mean the REA, and any other covenants, restrictions, easements, declarations or agreements of record relating to the construction,
operation or use of the Property.

 

“Operating Expenses”
shall mean, for any period, without duplication, all expenses actually paid or payable by Borrower during such period in connection
with the operation, management, maintenance, repair and use of the Property, determined on an accrual basis, and, except to the
extent otherwise provided in this definition, in accordance with GAAP. Operating Expenses specifically shall include (i) all
expenses incurred in the immediately preceding twelve (12) month period based on quarterly financial statements delivered
to Lender in accordance with Section 4.1.7 hereof, (ii) all payments required to be made pursuant to any Operating
Agreements, (iii) property management fees in an amount equal to the greater of three percent (3%) of Operating Income
and the management fees actually paid under the Management Agreement, (iv) administrative, payroll, security and general expenses
for the Property, (v) the cost of utilities, inventories and fixed asset supplies consumed in the operation of the Property,
(vi) a reasonable reserve for uncollectible accounts, (vii) costs and fees of independent professionals (including, without
limitation, legal, accounting, consultants and other professional expenses), technical consultants, operational experts (including
quality assurance inspectors) or other third parties retained to perform services required or permitted hereunder, (viii) cost
of attendance by employees at training and manpower development programs,

 

    	- 12 -

    	 

    

 

(ix) association dues,
(x) computer processing charges, (xi) operational equipment and other lease payments as reasonably approved by Lender,
(xii) Taxes and Other Charges (other than income taxes or Other Charges in the nature of income taxes) and insurance premiums
and (xiii) all underwritten reserves required by Lender hereunder (without duplication). Notwithstanding the foregoing, Operating
Expenses shall not include (1) depreciation or amortization, (2) income taxes or Other Charges in the nature of income
taxes, (3) any expenses (including legal, accounting and other professional fees, expenses and disbursements) incurred in
connection with the making of the Loan or the sale, exchange, transfer, financing or refinancing of all or any portion of the Property
or in connection with the recovery of Insurance Proceeds or Awards which are applied to prepay the Note, (4) Capital Expenditures,
(5) Debt Service, (6) intentionally omitted and (7) any item of expense which would otherwise be considered within Operating
Expenses pursuant to the provisions above but is paid directly by any Tenant.

 

“Operating Income”
shall mean, for any period, all income of Borrower during such period from the use, ownership or operation of the Property, including:

 

(a)          all amounts
payable to Borrower by any Person as Rent and other amounts under Leases or other agreements relating to the Property;

 

(b)          business
interruption insurance proceeds allocable to the applicable reporting period; and

 

(c)          all other
amounts which in accordance with GAAP, are included in Borrower’s annual financial statements as operating income attributable
to the Property.

 

Notwithstanding the foregoing,
Operating Income shall not include (a) any Insurance Proceeds (other than business interruption insurance proceeds and only
to the extent allocable to the applicable reporting period), (b) any proceeds resulting from the Transfer of all or any portion
of the Property, (c) any Rent attributable to a Lease prior to the date in which the Tenant thereunder has taken occupancy
or in which the actual payment of rent is required to commence thereunder, (d) any item of income otherwise included in Operating
Income but paid directly by any Tenant to a Person other than Borrower as an offset or deduction against Rent payable by such Tenant,
provided such item of income is for payment of an item of expense (such as payments for utilities paid directly to a utility company)
and such expense is otherwise excluded from the definition of Operating Expenses pursuant to clause ”(6)” of the
definition thereof, (e) security deposits received from Tenants until forfeited or applied, and (f) any Rents paid by
or on behalf of any Tenant under a Lease which is the subject of any proceeding or action relating to its bankruptcy, reorganization
or other arrangement pursuant to federal bankruptcy law or any similar federal or state law or which has been adjudicated a bankrupt
or insolvent unless such Lease has been assumed by the trustee in such proceeding or action. Operating Income shall be calculated
on the accrual basis of accounting and, except to the extent otherwise provided in this definition, in accordance with GAAP.

 

“Other
Charges” shall mean all ground rents, maintenance charges, impositions other than Taxes and any other charges,
including vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or
hereafter levied or assessed or imposed against the Property or any part thereof.

 

    	- 13 -

    	 

    

 

“Other Obligations”
shall mean (a) the performance of all obligations of Borrower contained herein; (b) the performance of each obligation
of Borrower contained in any other Loan Document; and (c) the performance of each obligation of Borrower contained in any
renewal, extension, amendment, modification, consolidation, change of, or substitution or replacement for, all or any part of this
Agreement, the Note or any other Loan Document.

 

“Outstanding Principal
Balance” shall mean, as of any date, the outstanding principal balance of the Loan.

 

“Patriot Act”
shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
(USA PATRIOT ACT) of 2001, as the same may be amended from time to time, and corresponding provisions of future laws.

 

“Patriot Act Offense”
shall have the meaning set forth in Section 4.1.14(b).

 

“Permitted Encumbrances”
shall mean, collectively, (i) the Liens and security interests created by the Loan Documents, (ii) all encumbrances and
other matters disclosed in the Title Insurance Policy and otherwise acceptable to Lender in its sole discretion, (iii) Liens,
if any, for Taxes or Other Charges imposed by any Governmental Authority not yet due or delinquent, and (iv) such other title
and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion.

 

“Permitted Indebtedness”
shall have the meaning set forth in Section 3.1.24(d).

 

“Permitted Investments”
shall have the meaning set forth in the Cash Management Agreement.

 

“Permitted Transfer”
shall have the meaning set forth in Section 8.2(a).

 

“Permitted Transferee”
shall mean a corporation, partnership or limited liability company (i) acceptable to Lender in its sole discretion, (ii) that
qualifies as a single purpose, bankruptcy remote entity under criteria established by the Rating Agencies, and (iii) such
entity, together with the direct and indirect owners of such entity and any related guarantor, are reputable Persons of good character,
creditworthy and with sufficient financial worth considering the obligations assumed and undertaken, as evidenced by financial
statements and other information reasonably requested by Lender.

 

“Person”
shall mean any individual, corporation, partnership, limited liability company, joint venture, estate, trust, unincorporated association,
any other entity, any Governmental Authority and any fiduciary acting in such capacity on behalf of any of the foregoing.

 

“Physical
Condition Report” shall mean a report prepared by a company satisfactory to Lender regarding the physical condition
of the Property, satisfactory in form and substance to Lender in its sole discretion, which report shall, among other things,
(i) confirm that the Property and its use comply, in all material respects, with all applicable Legal Requirements
(including zoning, subdivision and building laws), and (ii) include a copy of a final certificate of occupancy with
respect to all Improvements.

 

    	- 14 -

    	 

    

 

“Policies”
shall have the meaning set forth in Section 5.1.1(b).

 

“Prepayment Date”
shall mean the date of a prepayment of the Loan pursuant to the provisions of Section 2.4 hereof.

 

“Prepayment Fee”
shall mean an amount equal to the greater of (i) the Yield Maintenance Amount, or (ii) five percent (5%) of the
unpaid principal balance of the Note as of the Prepayment Date.

 

“Prepayment Notice”
shall mean a prior irrevocable written notice to Lender specifying the proposed Business Day on which a prepayment is to be made
pursuant to Section 2.4 hereof, which date must be a Monthly Payment Date and shall be no earlier than thirty (30)
days after the date of such Prepayment Notice and no later than sixty (60) days after the date of such Prepayment Notice.

 

“Property”
shall mean the parcel of real property described on Exhibit A attached hereto and made a part hereof, the Improvements
now or hereafter erected or installed thereon and all personal property owned by Borrower and encumbered by the Mortgage, together
with all rights pertaining to such property and Improvements, all as more particularly described in the Granting Clauses of the
Mortgage.

 

“Rating Agencies”
shall mean, prior to the final Securitization of the Loan, each of S&P, Moody’s, Fitch, Realpoint LLC and DBRS, Inc.
or any other nationally-recognized statistical rating agency which has been designated by Lender and, after the final Securitization
of the Loan, shall mean any of the foregoing that have rated any of the Securities.

 

“Rating
Agency Confirmation” shall mean a written affirmation from each of the Rating Agencies that the credit rating of
the Securities by such Rating Agency immediately prior to the occurrence of the event with respect to which such Rating
Agency Confirmation is sought will not be qualified, downgraded or withdrawn as a result of the occurrence of such event,
which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion. For the purposes of
this Agreement and the other Loan Documents, if any Rating Agency shall waive, decline or refuse to review or otherwise
engage any request for a Rating Agency Confirmation hereunder or under the other Loan Documents (hereinafter a “RA
Consent”), such RA Consent shall be deemed to eliminate, for such request only, the condition that a Rating Agency
Confirmation by such Rating Agency (only) be obtained for purposes of this Agreement or the other Loan Documents, as
applicable; provided, however, if Lender does not have a separate and independent approval right with respect to such event
set forth herein or in the other Loan Documents, as applicable, then the term “Rating Agency Confirmation” shall
be deemed instead to require the approval of Lender based on its good faith determination of whether the applicable Rating
Agency would issue a Rating Agency Confirmation for the applicable event. For purposes of clarity, any such waiver,
declination or refusal to review or otherwise engage in any request for a Rating Agency Confirmation hereunder or under the
other Loan Documents shall not be deemed a waiver, declination or refusal to review or otherwise engage in any subsequent
request for a Rating Agency Confirmation hereunder or under the other Loan Documents, and the condition for Rating Agency
Confirmation pursuant to this Agreement and the other Loan Documents for any subsequent request shall apply regardless of any
previous waiver, declination or refusal to review or otherwise engage in such prior request.

 

    	- 15 -

    	 

    

 

“REA”
shall mean, collectively, as the same may be amended, restated, supplemented or otherwise modified from time to time, any reciprocal
easement agreement or similar document affecting the Property now or hereafter of record.

 

“Registration Statement”
shall have the meaning set forth in Section 9.2(b).

 

“Regulation AB”
shall mean Regulation AB under the Securities Act and the Exchange Act, as such Regulation may be amended from time to time.

 

“Related Loan”
shall mean a loan to an Affiliate of Borrower or any Guarantor or secured by a Related Property, that is included in a Securitization
with the Loan, and any other loan that is cross-collateralized with the Loan.

 

“Related Property”
shall mean a parcel of real property, together with improvements thereon and personal property related thereto, that is “related”
within the meaning of the definition of Significant Obligor, to the Property.

 

“Release Date”
shall have the meaning set forth in Section 2.5.1(a).

 

“Remaining Receipts”
shall have the meaning set forth in Section 6.11.1.

 

“REMIC Trust”
shall mean a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds
the Note.

 

“Rents”
shall mean all rents, rent equivalents, moneys payable as damages (including payments by reason of the rejection of a Lease in
a bankruptcy proceeding) or in lieu of rent or rent equivalents, royalties (including all oil and gas or other mineral royalties
and bonuses), income, fees, receivables, receipts, revenues, deposits (including security, utility and other deposits), accounts,
cash, issues, profits, charges for services rendered, and other payment and consideration of whatever form or nature received by
or paid to or for the account of or benefit of Borrower, Manager or any of their respective agents or employees from any and all
sources arising from or attributable to the Property and the Improvements, including all receivables, customer obligations, installment
payment obligations and other obligations now existing or hereafter arising or created out of the sale, lease, sublease, license,
concession or other grant of the right of the use and occupancy of the Property or rendering of services by Borrower, Manager or
any of their respective agents or employees, and Insurance Proceeds, if any, from business interruption or other loss of income
insurance, but only to the extent Lender elects to treat such Insurance Proceeds as business or rental interruption Insurance Proceeds
pursuant to Section 5.4(e) hereof.

 

“Reporting Failure”
shall have the meaning set forth in Section 4.1.7(i).

 

“Required Financial
Item” shall have the meaning set forth in Section 4.1.7(i).

 

    	- 16 -

    	 

    

 

“Reserve Funds”
shall mean, collectively, all funds deposited by Borrower with Lender or Cash Management Bank pursuant to Article 6
of this Agreement, including, but not limited to, the Capital Expenditure Funds, the Insurance Funds, the Tax Funds, the Major
Tenant Funds, the Excess Cash Flow Funds and the Rollover Funds.

 

“Reserve Items”
shall have the meaning set forth in Section 6.10.4.

 

“Restoration”
shall mean the repair and restoration of the Property after a Casualty or Condemnation as nearly as possible to the condition the
Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender.

 

“Restoration DSCR”
shall mean, as of any date of determination, the ratio of (a) the Net Operating Income of the Property, based on rents in
place (annualized) and trailing 12-month expenses, to (b) an amount equal to twelve (12) times the Monthly Debt Service
Payment Amount.

 

“Restoration Threshold”
shall mean 1% of the outstanding principal amount of the Loan.

 

“Re-Tenanting Event”
shall mean, with respect to the Cardiology/Gastro Associates Space, Lender’s receipt of evidence in form and substance satisfactory
to Lender that one or more replacement tenants reasonably satisfactory to Lender are in full occupancy of such premises, open for
business and paying full, unabated rent pursuant to a lease with a term of no less than five (5) years and a net effective rental
payment of no less than $23.00 per foot, on a triple net basis (however, in the event that such lease provides for a term of less
than five (5) years or a net effective rental payment of less than $23.00 per foot, on a triple net basis, such lease terms shall
be acceptable to Lender in its sole discretion), such evidence to include, without limitation, (i) a fully-executed Lease entered
into in accordance with the terms of the Loan Agreement and satisfactory to Lender and (ii) a tenant estoppel certificate from
such replacement tenant that confirms the foregoing.

 

“RICO”
shall have the meaning set forth in Section 11.22.

 

“Rollover Account”
shall have the meaning set forth in Section 6.6.1(a).

 

“Rollover Funds”
shall have the meaning set forth in Section 6.6.1(a).

 

“S&P”
shall mean Standard & Poor’s Ratings Group, a division of the McGraw-Hill Companies.

 

“Secondary Market
Transaction” shall have the meaning set forth in Section 9.1(a).

 

“Securities”
shall have the meaning set forth in Section 9.1(a).

 

“Securities Act”
shall have the meaning set forth in Section 9.2(a).

 

    	- 17 -

    	 

    

  

“Securitization”
shall have the meaning set forth in Section 9.1(a).

 

“Servicer”
shall have the meaning set forth in Section 11.24.

 

“Servicing Agreement”
shall have the meaning set forth in Section 11.24.

 

“Severed Loan Documents”
shall have the meaning set forth in Section 10.2(c).

 

“Significant Obligor”
shall have the meaning set forth in Item 1101(k) of Regulation AB under the Securities Act.

 

“SPC Party”
shall have the meaning set forth in Section 3.1.24(o).

 

“Special Member”
shall have the meaning set forth in Section 3.1.24(r).

 

“Sponsor Member”
shall have the meaning set forth in Section 8.2.

 

“Springing Recourse
Event” shall have the meaning set forth in Section 11.22.

 

“State”
shall mean the State of South Carolina.

 

“Stated Maturity
Date” shall mean June 6, 2024.

 

“Successor Borrower”
shall have the meaning set forth in Section 2.5.3.

 

“Survey”
shall mean a survey of the Property prepared by a surveyor licensed in the State and satisfactory to Lender and the company or
companies issuing the Title Insurance Policy, and containing a certification of such surveyor satisfactory to Lender.

 

“Sweep Event Period”
shall mean (I) a Major Tenant Trigger Period or (II) a period of time commencing with the occurrence of (i) an Event of Default;
or (ii) the Debt Service Coverage Ratio (based on the trailing twelve (12) calendar months and as determined by Lender) is at any
time less than 1.10 to 1.00; and such Sweep Event Period shall expire, provided that no other Sweep Event Period has occurred and
is continuing, (1) with regard to any Sweep Event Period commenced in connection with clause (i) above, upon the cure (if applicable)
of such Event of Default and acceptance by Lender of such cure in Lender’s sole and absolute discretion, and (2) with regard
to any Sweep Event Period commenced in connection with clause (ii) above, upon the date on which the Debt Service Coverage Ratio
(based on the trailing twelve (12) calendar months and as determined by Lender) is at least 1.15 to 1.00 for two (2) consecutive
calendar quarters.

 

“Tax Account”
shall have the meaning set forth in Section 6.3.1.

 

“Tax Funds”
shall have the meaning set forth in Section 6.3.1.

 

“Taxes”
shall mean all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed
or imposed against the Property or part thereof, together with all interest and penalties thereon.

 

    	- 18 -

    	 

    

 

“Tenant”
shall mean any Person obligated by contract or otherwise to pay monies (including a percentage of gross income, revenue or profits)
under any Lease now or hereafter affecting all or any part of the Property.

 

“Term”
shall mean the entire term of this Agreement, which shall expire upon repayment in full of the Debt and full performance of each
and every obligation to be performed by Borrower pursuant to the Loan Documents.

 

“Title Insurance
Policy” shall mean an ALTA mortgagee title insurance policy in the form acceptable to Lender issued with respect to the
Property and insuring the Lien of the Mortgage.

 

“Transfer”
shall have the meaning set forth in Section 4.2.1.

 

“Treasury Rate”
shall mean the yield calculated by the linear interpolation of the yields, as reported in Federal Reserve Statistical Release H.15
Selected Interest Rates under the heading U.S. Government Securities/Treasury Constant Maturities for the week ending prior to
the Prepayment Date, of U.S. Treasury constant maturities with maturity dates (one longer and one shorter) most nearly approximating
the Stated Maturity Date. (In the event Release H.15 is no longer published, Lender shall select a comparable publication to determine
the Treasury Rate.)

 

“Trustee”
shall mean any trustee holding the Loan in a Securitization.

 

“UCC”
or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State.

 

“Underwriter Group”
shall have the meaning set forth in Section 9.2(b).

 

“Updated Information”
shall have the meaning set forth in Section 9.1(b)(i).

 

“U.S. Obligations”
shall mean securities evidencing an obligation to timely pay principal and/or interest in a full and timely manner that are (i) direct
obligations of the United States of America for the payment of which its full faith and credit is pledged, (ii) not subject
to prepayment, call or early redemption and (iii) “government securities” as defined in the Treasury Regulations Section 1.860G-2(a)(8)(ii).

 

“U.S. Person”
shall mean any Person that is (i) a citizen or resident of the United States, (ii) a corporation, partnership or other
entity created or organized under the laws of the United States or any state, commonwealth or district thereof, or (iii) any
estate or trust that is subject to United States federal income taxation, regardless of the source of its income.

 

“Yield
Maintenance Amount” shall mean the present value, as of the Prepayment Date, of the remaining scheduled payments of
principal and interest from the Prepayment Date through the Stated Maturity Date (including any balloon payment) determined
by discounting such payments at the Discount Rate, less the amount of principal being prepaid.

 

    	- 19 -

    	 

    

 

Section 1.2          Principles
of Construction.

 

All references to sections
and schedules are to sections and schedules in or to this Agreement unless otherwise specified. Unless otherwise specified, the
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement and the word “including”
shall mean “including but not limited to”. Unless otherwise specified, all meanings attributed to defined terms herein
shall be equally applicable to both the singular and plural forms of the terms so defined.

 

ARTICLE
2

THE LOAN

 

Section 2.1          The Loan.

 

2.1.1          Agreement to
Lend and Borrow. Subject to and upon the terms and conditions set forth herein, Lender shall make the Loan to Borrower and
Borrower shall accept the Loan from Lender on the Closing Date.

 

2.1.2          Single Disbursement
to Borrower. Borrower shall receive only one borrowing hereunder in respect of the Loan and any amount borrowed and repaid
hereunder in respect of the Loan may not be reborrowed.

 

2.1.3          The Note.
The Loan shall be evidenced by that certain Promissory Note of even date herewith, in the stated principal amount of Ten Million
Three Hundred Thousand and No/100 Dollars ($10,300,000.00) executed by Borrower and payable to the order of Lender in evidence
of the Loan (as the same may hereafter be amended, supplemented, restated, increased, extended or consolidated from time to time,
the “Note”) and shall be repaid in accordance with the terms of this Agreement and the Note.

 

2.1.4          Use of Proceeds.
Borrower shall use proceeds of the Loan to (i) acquire the Property and/or pay and discharge any existing loans relating to
the Property, (ii) pay all past-due Taxes, Insurance Premiums and Other Charges, if any, in respect of the Property, (iii) make
initial deposits of the Reserve Funds, (iv) pay costs and expenses incurred in connection with the closing of the Loan, and
(v) to the extent any proceeds remain after satisfying clauses (i) through (iv) above, for such other general corporate
purposes as Borrower shall designate.

 

Section 2.2          Interest
Rate.

 

2.2.1          Interest Rate.
Interest on the Outstanding Principal Balance shall accrue throughout the Term at the Interest Rate.

 

2.2.2          Intentionally
Omitted.

 

    	- 20 -

    	 

    

 

2.2.3          Default Rate.
In the event that, and for so long as, any Event of Default shall have occurred and be continuing, the Outstanding Principal Balance
and, to the extent permitted by law, overdue interest in respect of the Loan, shall accrue interest at the Default Rate, calculated
from the date such payment was due without regard to any grace or cure periods contained herein. Interest at the Default Rate shall
be paid immediately upon demand, which demand may be made as frequently as Lender shall elect.

 

2.2.4          Interest Calculation.
Interest on the Outstanding Principal Balance shall be calculated by multiplying (A) the actual number of days elapsed in
the period for which the calculation is being made by (B) a daily rate based on a three hundred sixty (360) day year
(that is, the Interest Rate or the Default Rate, as then applicable, expressed as an annual rate divided by 360) by (C) the
Outstanding Principal Balance. The accrual period for calculating interest due on each Monthly Payment Date shall be the Interest
Period immediately prior to such Monthly Payment Date.

 

2.2.5          Usury Savings.
This Agreement and the other Loan Documents are subject to the express condition that at no time shall Borrower be required to
pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal liability as
a result of being in excess of the Maximum Legal Rate. If by the terms of this Agreement or the other Loan Documents, Borrower
is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum
Legal Rate, the Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum
Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of
principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance,
or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated
and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account
of the Loan does not exceed the Maximum Legal Rate from time to time in effect and applicable to the Loan for so long as the Loan
is outstanding.

 

Section 2.3          Loan Payments.

 

2.3.1          Payments.
Borrower shall pay to Lender (a) on the date hereof, an amount equal to interest only on the Outstanding Principal Balance from
the Closing Date up to and including June 5, 2014 (the “Initial Interest Period”), (b) on each Monthly Payment
Date thereafter beginning on July 6, 2014 up to and including the Maturity Date, a payment of principal and interest (if applicable)
in an amount equal to the Monthly Debt Service Payment Amount, which payments shall be applied first to accrued and unpaid interest
and the balance to the Outstanding Principal Balance, and (c) all amounts required in respect of Reserve Funds as set forth in
Article 6 hereof.

 

2.3.2          Intentionally
Omitted.

 

    	- 21 -

    	 

    

 

2.3.3          Payments Generally.
After the Initial Interest Period, each interest accrual period thereafter (each, an “Interest Period”) shall
commence on the sixth (6th) day of each calendar month during the Term and shall end on and include the fifth (5th)
day of the following calendar month. For purposes of making payments hereunder, but not for purposes of calculating interest accrual
periods, if the day on which such payment is due is not a Business Day, then amounts due on such date shall be due on the immediately
preceding Business Day. Lender shall have the right from time to time, in its sole discretion, upon not less than ten (10) days
prior written notice to Borrower, to change the Monthly Payment Date to a different calendar day and, if requested by Lender, Borrower
shall promptly execute an amendment to this Agreement to evidence such change; provided, however, that if Lender shall have elected
to change the Monthly Payment Date as aforesaid, Lender shall have the option, but not the obligation, to adjust the Interest Period
accordingly. With respect to payments of principal due on the Maturity Date, interest shall be payable at the Interest Rate or
the Default Rate, as the case may be, through and including the day immediately preceding such Maturity Date. All amounts due pursuant
to this Agreement and the other Loan Documents shall be payable without setoff, counterclaim, defense or any other deduction whatsoever.

 

2.3.4          Payment on Maturity
Date. Borrower shall pay to Lender on the Maturity Date the Outstanding Principal Balance, all accrued and unpaid interest
and all other amounts due hereunder and under the Note, the Mortgage and the other Loan Documents.

 

2.3.5          Late Payment
Charge. If any principal, interest or any other sum due under the Loan Documents (other than the Outstanding Principal Balance
due and payable on the Maturity Date) is not paid by Borrower on the date on which it is due (taking into account any applicable
notice and/or grace period provided pursuant to the terms of the Loan Documents), Borrower shall pay to Lender upon demand an amount
equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount permitted by applicable law in order to
defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss
of the use of such delinquent payment. Any such amount shall be secured by the Mortgage and the other Loan Documents to the extent
permitted by law.

 

2.3.6          Method and Place
of Payment.

 

(a)         Except as
otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender
not later than 12:00 noon, New York City time, on the date when due and shall be made in lawful money of the United States
of America in immediately available funds at Lender’s office or at such other place as Lender shall from time to time designate,
and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding
Business Day.

 

(b)         Whenever
any payment to be made hereunder or under any other Loan Document shall be stated to be due on a day which is not a Business Day,
the due date thereof shall be the immediately preceding Business Day.

 

(c)         All
payments required to be made by Borrower hereunder or under the Note or the other Loan Documents shall be made irrespective
of, and without deduction for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto.

 

    	- 22 -

    	 

    

 

Section 2.4          Prepayments.

 

2.4.1          Prepayments.
Except as otherwise provided herein, Borrower shall not have the right to prepay the Loan in whole or in part prior to the Stated
Maturity Date.

 

2.4.2          Intentionally
Omitted.

 

2.4.3          Open Prepayment.
Notwithstanding anything to the contrary contained herein, provided no Event of Default shall have occurred, and provided that
Borrower shall deliver to Lender a Prepayment Notice, Borrower may prepay the entire principal balance of the Note and any other
amounts outstanding under the Note, this Agreement, or any of the other Loan Documents (including, without limitation, all amounts
pursuant to Section 2.4.6(a) and Section 2.4.6(c) hereof), without payment of the Prepayment Fee or any
other prepayment premium or fee, on any Payment Date on or after the Open Prepayment Date.

 

2.4.4          Mandatory Prepayments.
If Lender is not obligated to make Net Proceeds available to Borrower for Restoration, on the next occurring Monthly Payment Date
following the date on which (a) Lender actually receives any Net Proceeds, and (b) Lender has determined that such Net
Proceeds shall be applied against the Outstanding Principal Balance, (1) Borrower shall prepay, or authorize Lender to apply
Net Proceeds as a prepayment of, the Outstanding Principal Balance in an amount equal to one hundred percent (100%) of such
Net Proceeds and (2) Borrower shall comply with the provisions set forth in Section 2.4.6. Notwithstanding anything
herein to the contrary, so long as no Event of Default has occurred and is continuing, no Prepayment Fee shall be due in connection
with any prepayment made pursuant to this Section 2.4.4. Any partial prepayment under this Section 2.4.4
shall be applied to the last payments of principal due under the Loan.

 

2.4.5          Prepayments After
Default. If after the occurrence and during the continuance of an Event of Default, payment of all or any part of the Debt
is tendered by Borrower or otherwise recovered by Lender (including through application of any Reserve Funds), such tender or recovery
shall be deemed (a) to have been made on the next occurring Monthly Payment Date together with the Monthly Debt Service Payment
Amount, and (b) to be a voluntary prepayment by Borrower in violation of the prohibition against prepayment set forth in Section 2.4.1
hereof, and Borrower shall pay, in addition to the Debt, an amount equal to the Prepayment Fee.

 

2.4.6         Payments in Connection
with a Prepayment.

 

(a)          On the date
on which a prepayment, voluntary or mandatory, is made under the Note or as required under this Agreement, which date must be a
Business Day, Borrower shall pay to Lender all unpaid interest on the portion of the Outstanding Principal Balance prepaid plus,
if the Prepayment Date is not a Monthly Payment Date, all interest accruing for the full Interest Period in which the Prepayment
Date falls.

 

(b)          On the Prepayment
Date, Borrower shall pay to Lender (i) the Prepayment Fee and (ii) all other sums, excluding scheduled interest payments,
then due under the Note, this Agreement, the Mortgage, and the other Loan Documents.

 

    	- 23 -

    	 

    

 

(c)          Borrower
shall pay all costs and expenses of Lender incurred in connection with the prepayment (including without limitation, any costs
and expenses associated with a release of the Lien of the Mortgage as set forth in Section 2.4.7 below and reasonable
attorneys’ fees and expenses).

 

2.4.7          Release on Payment
in Full. Lender shall, upon the written request and at the expense of Borrower, upon payment in full of all principal and interest
due on the Loan and all other amounts due and payable under the Loan Documents in accordance with the terms and provisions of the
Note and this Agreement, release the Lien of the Mortgage.

 

Section 2.5          Defeasance.

 

2.5.1          Conditions to
Defeasance. Provided no Event of Default has occurred and is continuing, at any time after the date which is the earlier to
occur of (A) two (2) years after the “startup day,” within the meaning of Section 860G(a)(9) of the
Code, of the final “real estate mortgage investment conduit,” established within the meaning of Section 860D of
the Code, that holds any note that evidences all or any portion of the Loan or (B) three (3) years after the date hereof
(the “Defeasance Lockout Expiration Date”), Borrower may cause the release of the Property (in whole but not
in part) from the Lien of the Mortgage and the other Loan Documents upon the satisfaction of the following conditions:

 

(a)          not less
than thirty (30) days' prior written notice shall be given to Lender specifying a date (the “Release Date”)
on which the Defeasance Collateral is to be delivered, such Release Date to occur only on a Monthly Payment Date;

 

(b)          all accrued
and unpaid interest and all other sums due under the Note and under the other Loan Documents up to the Release Date, including,
without limitation, all costs and expenses incurred by Lender or its agents in connection with such release (including, without
limitation, the fees and expenses incurred by attorneys and accountants in connection with the review of the proposed Defeasance
Collateral and the preparation of the Defeasance Security Agreement and related documentation), shall be paid in full on or prior
to the Release Date; and

 

(c)         Borrower
shall deliver to Lender on or prior to the Release Date:

 

(i)         an
amount equal to that which is sufficient to purchase U.S. Obligations that provide for payments (1) on or prior to, but
as close as possible to and including, all successive scheduled Monthly Payment Dates after the Release Date through the Open
Prepayment Date, and (2) in amounts equal to or greater than the Monthly Debt Service Payment Amount through and
including the Open Prepayment Date together with payment in full of the Outstanding Principal Balance as of the Open
Prepayment Date (the “Defeasance Collateral”), each of which shall be duly endorsed by the holder thereof
as directed by Lender or accompanied by a written instrument of transfer in form and substance wholly satisfactory to Lender
(including, without limitation, such instruments as may be required by the depository institution holding such securities to
effectuate book-entry transfers and pledges through the book-entry facilities of such institution) in order to create a first
priority security interest therein in favor of the Lender in conformity with all applicable state and federal laws governing
granting of such security interests;

 

    	- 24 -

    	 

    

  

(ii)        a pledge
and security agreement, in form and substance satisfactory to Lender in its sole discretion, creating a first priority security
interest in favor of Lender in the Defeasance Collateral (the “Defeasance Security Agreement”), which shall
provide, among other things, that any payments generated by the Defeasance Collateral shall be paid directly to Lender and applied
by Lender in satisfaction of all amounts then due and payable hereunder and any excess received by Lender from the Defeasance Collateral
over the amounts payable by Borrower hereunder or under the Note shall be refunded to Borrower promptly after each Monthly Payment
Date;

 

(iii)       a certificate
of Borrower certifying that all of the requirements set forth in this Section 2.5 have been satisfied;

 

(iv)      an opinion
of counsel for Borrower in form and substance and delivered by counsel satisfactory to Lender in its sole discretion stating, among
other things, that (1) Lender has a perfected first priority security interest in the Defeasance Collateral and that the Defeasance
Security Agreement is enforceable against Borrower in accordance with its terms; and (2) that any REMIC Trust formed pursuant to
a Securitization will not fail to maintain its status as a “real estate mortgage investment conduit” within the meaning
of Section 860D of the Code as a result of such defeasance;

 

(v)        evidence in
writing from the applicable Rating Agencies to the effect that the defeasance of the Loan and collateral substitution will not
result in a downgrading, withdrawal or qualification of the respective ratings in effect immediately prior to such defeasance event
for any securities issued in connection with the Securitization which are then outstanding;

 

(vi)       a certificate
from a firm of independent public accountants acceptable to Lender certifying that the Defeasance Collateral is sufficient to satisfy
the provisions of Section 2.5.1(c)(i) above;

 

(vii)      such other
certificates, documents or instruments as Lender may reasonably require;

 

(viii)     in connection
with the conditions set forth in Section 2.5.1(c) above, Borrower hereby appoints Lender as its agent and attorney
in fact for the purpose of using the amounts delivered pursuant to Section 2.5.1(c)(i) above to purchase the Defeasance
Collateral; and

 

(ix)        payment
of all escrow, closing, recording, legal, appraisal, Rating Agency and other fees, costs and expenses paid or incurred by Lender
or its agents in connection with Borrower’s exercise of its rights under this Section 2.5, the release of the lien of Mortgage
on the Property, the review of the proposed Defeasance Collateral and the preparation of the Defeasance Security Agreement and
related documentation.

 

    	- 25 -

    	 

    

 

2.5.2          Release of Property.
Upon compliance with the requirements of this Section 2.5, the Property shall be released from the Lien of the Mortgage
and the other Loan Documents, and the Defeasance Collateral shall constitute the only collateral which shall secure the Note and
all other Obligations. Lender will, at Borrower’s expense, execute and deliver any agreements reasonably requested by Borrower
to release the Lien of the Mortgage from the Property. Borrower, pursuant to the Defeasance Security Agreement, shall authorize
and direct that the payments received from Defeasance Collateral be made directly to Lender and applied to satisfy the Obligations,
including payment in full of the Outstanding Principal Balance as of the Stated Maturity Date.

 

2.5.3          Successor Borrower.
Upon the release of the Property in accordance with Section 2.5.2, Borrower shall assign all its Obligations, together
with the pledged Defeasance Collateral, to a successor, single purpose, bankruptcy remote entity designated by Lender in its sole
discretion or, at the option of Lender, designated by Borrower and approved by Lender (in each case, the “Successor Borrower”).
Lender shall have the right to establish or designate the Successor Borrower and to purchase, or cause to be purchased, the Defeasance
Collateral (the “Defeasance Rights and Obligations”), which rights may be exercised in Lender’s sole discretion
and shall be retained by the Lender named herein notwithstanding the transfer or securitization of the Loan. Such successor entity
shall execute an assumption agreement in form and substance satisfactory to Lender in its sole discretion pursuant to which it
shall assume Borrower’s Obligations and the Defeasance Security Agreement. As conditions to such assignment and assumption,
Borrower shall (i) deliver to Lender an opinion of counsel in form and substance and delivered by counsel satisfactory to
Lender in its sole discretion stating, among other things, that such assumption agreement is enforceable against Borrower and such
successor entity in accordance with its terms and that the Note, the Defeasance Security Agreement and the other Loan Documents,
as so assumed, are enforceable against such successor entity in accordance with their respective terms, and (ii) pay all costs
and expenses incurred by Lender or its agents in connection with such assignment and assumption (including, without limitation,
the review of the proposed transferee and the preparation of the assumption agreement and related documentation). Additionally,
Borrower shall pay all costs and expenses incurred by Successor Borrower, including attorneys’ fees and expenses, incurred
in connection therewith. Upon such assumption, Borrower shall be relieved of its Obligations hereunder, under the other Loan Documents
and under the Defeasance Security Agreement other than those Obligations which are specifically intended to survive the termination,
satisfaction or assignment of this Agreement or the exercise of Lender’s rights and remedies hereunder.

 

2.5.4          Appointment
as Attorney in Fact. Upon the release of the Property in accordance with Section 2.5.2, Borrower shall have
no further right to prepay the Note pursuant to the other provisions of this Section 2.5 or otherwise. In
connection with the conditions set forth in this Section 2.5, Borrower hereby appoints Lender as its agent and
attorney-in-fact for the purpose of purchasing the Defeasance Collateral with funds provided by Borrower. Borrower shall pay
any and all expenses incurred in the purchase of the Defeasance Collateral and any revenue, documentary stamp or intangible
taxes or any other tax or charge due in connection with the transfer of the Note or otherwise required to accomplish the
agreements of this Section 2.5.

 

    	- 26 -

    	 

    

 

ARTICLE
3

REPRESENTATIONS AND WARRANTIES

 

Section 3.1          Borrower
Representations.

 

Borrower represents and warrants
that as of the date hereof:

 

3.1.1          Organization.
Borrower is duly organized, validly existing and in good standing with full power and authority to own its assets and conduct its
business, and is duly qualified and in good standing in all jurisdictions in which the ownership or lease of its property or the
conduct of its business requires such qualification, and Borrower has taken all necessary action to authorize the execution, delivery
and performance of this Agreement and the other Loan Documents by it, and has the power and authority to execute, deliver and perform
under this Agreement, the other Loan Documents and all the transactions contemplated hereby. Borrower possesses all rights, licenses,
permits and authorizations, governmental or otherwise, necessary to entitle it to own its properties and to transact the businesses
in which it is now engaged, and the sole business of Borrower is the ownership, management and operation of the Property.

 

3.1.2          Proceedings.
This Agreement and the other Loan Documents have been duly authorized, executed and delivered by Borrower and, as applicable, by
Guarantor or other obligor thereunder, and constitute a legal, valid and binding obligation of Borrower and, as applicable, by
Guarantor or other obligor thereunder, enforceable against such parties in accordance with their respective terms, except as such
enforcement may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization or other similar laws affecting the enforcement
of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

 

3.1.3          No Conflicts.
The execution and delivery of this Agreement and the other Loan Documents by Borrower and the performance of its Obligations hereunder
and thereunder will not conflict with any provision of any law or regulation to which Borrower is subject, or conflict with, result
in a breach of, or constitute a default under, any of the terms, conditions or provisions of any of Borrower’s organizational
documents or any agreement or instrument to which Borrower is a party or by which it is bound, or any order or decree applicable
to Borrower, or result in the creation or imposition of any Lien on any of Borrower’s assets or property (other than pursuant
to the Loan Documents).

 

3.1.4          Litigation.
There is no action, suit, proceeding or investigation pending or, to the best of Borrower’s knowledge, threatened
against Borrower, any SPC Party, Guarantor, the Manager or the Property in any court or by or before any other Governmental
Authority which, in each case, if adversely determined, might materially and adversely affect (a) title to the Property, (b)
the validity or enforceability of the Mortgage, (c) Borrower’s ability to perform under the Loan Documents, (d)
Guarantor’s ability to perform under the Guaranty, (e) the use, operation or value of the Property, (f) the principal
benefit of the security intended to be provided by the Loan Documents, (g) the current ability of the Property to generate
net cash flow sufficient to service the Loan, (h) the current principal use of the Property or (i) the condition (financial
or otherwise) or business of Borrower (including the ability of Borrower to carry out the transactions contemplated by this
Agreement), any SPC Party, Guarantor, Manager or the condition or ownership of the Property.

 

    	- 27 -

    	 

    

 

3.1.5          Agreements.
Borrower is not a party to any agreement or instrument or subject to any restriction which might materially and adversely affect
Borrower or the Property, or Borrower’s business, properties or assets, operations or condition, financial or otherwise.
Borrower is not in default with respect to any order or decree of any court or any order, regulation or demand of any Governmental
Authority, which default might have consequences that would materially and adversely affect the condition (financial or other)
or operations of Borrower or its properties or might have consequences that would adversely affect its performance hereunder. Borrower
is not in default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in any Permitted Encumbrance or any other agreement or instrument to which it is a party or by which it or
the Property is bound. Borrower has no material financial obligation (contingent or otherwise) under any indenture, mortgage, deed
of trust, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Property is
otherwise bound, other than (a) obligations incurred in the ordinary course of the operation of the Property and (b) obligations
under the Loan Documents.

 

3.1.6          Consents.
No consent, approval, authorization or order of any court or Governmental Authority is required for the execution, delivery and
performance by Borrower of, or compliance by Borrower with, this Agreement or the other Loan Documents or the consummation of the
transactions contemplated hereby, other than those which have been obtained by Borrower.

 

3.1.7          Title.
Borrower has good, marketable and insurable fee simple title to the real property comprising part of the Property and good
title to the balance of the Property owned by it, free and clear of all Liens whatsoever except the Permitted Encumbrances.
To Borrower's actual knowledge, the Mortgage, when properly recorded in the appropriate records, together with any Uniform
Commercial Code financing statements required to be filed in connection therewith, will create (i) a legal, valid and
enforceable first priority, perfected Lien on Borrower’s interest in the Property, subject only to Permitted
Encumbrances, and (ii) valid, perfected security interests in and to, and perfected collateral assignments of, all
personal property and personalty (including the Leases), all in accordance with the terms thereof, in each case subject only
to the Permitted Encumbrances. There are no mechanics’, materialman’s or other similar Liens, encumbrances or
claims which have been filed (and no rights exist which under law could give rise to any such lien or encumbrance) which are
or may be Liens prior to, or equal or coordinate with, the Lien of the Mortgage. None of the Permitted Encumbrances,
individually or in the aggregate, (a) materially interfere with the benefits of the security intended to be provided by
the Mortgage and this Agreement, (b) materially and adversely affect the value of the Property, (c) impair the use
or operation of the Property (as currently used), or (d) impair Borrower’s ability to pay its Obligations in a
timely manner.

 

    	- 28 -

    	 

    

 

3.1.8          No Plan Assets.
As of the date hereof and throughout the Term (i) Borrower does not sponsor, is not obligated to contribute to, and is not
itself and will not be an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I
of ERISA or Section 4975 of the Code, (ii) none of the assets of Borrower constitutes or will constitute “plan
assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, (iii) Borrower is not
and will not be a “governmental plan” within the meaning of Section 3(3) of ERISA, and (iv) transactions
by or with Borrower are not and will not be subject to state statutes regulating investment of, and fiduciary obligations with
respect to, governmental plans within the meaning of Section 3(3) of ERISA which is similar to the provisions of Section 406
of ERISA or Section 4975 of the Code and which prohibit or otherwise restrict the transactions contemplated by this Agreement
including, but not limited to, the exercise by Lender of any of its rights under the Loan Documents.

 

3.1.9          Compliance.
Borrower and the Property (including, but not limited to the Improvements) and the use thereof comply in all material respects
with all applicable Legal Requirements, including parking, building and zoning and land use laws, ordinances, regulations, rules,
covenants, restrictions and codes. Borrower is not in default or violation of any order, writ, injunction, decree or demand of
any Governmental Authority, the violation of which might materially adversely affect the condition (financial or otherwise) or
business of Borrower. Borrower has not committed any act which may give any Governmental Authority the right to cause Borrower
to forfeit the Property or any part thereof or any monies paid in performance of Borrower’s Obligations under any of the
Loan Documents. The Property is used exclusively as a medical office building and for other appurtenant and related uses. In the
event that all or any part of the Improvements are destroyed or damaged, said Improvements can be legally reconstructed to their
condition prior to such damage or destruction, and thereafter exist for the same use without violating any zoning or other ordinances
applicable thereto and without the necessity of obtaining any variances or special permits. No legal proceedings are pending or,
to the knowledge of Borrower, threatened with respect to the zoning of the Property. Neither the zoning nor any other right to
construct, use or operate the Property is in any way dependent upon or related to any property other than the Property. The use
being made of the Property is in conformity with the certificate of occupancy issued for the Property and all other restrictions,
covenants and conditions affecting the Property.

 

3.1.10          Financial
Information. To the best of Borrower's knowledge, all financial data, including the statements of cash flow and income
and operating expense, that have been delivered to Lender in connection with the Loan (i) are true, complete and correct
in all material respects, (ii) accurately represent the financial condition of the Property as of the date of such
reports, and (iii) have been prepared in accordance with sound accounting methods throughout the periods covered, except
as disclosed therein. Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term
commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably
likely to have a materially adverse effect on the Property or the operation thereof, except as referred to or reflected in
said financial statements. Since the date of the financial statements, there has been no material adverse change in the
financial condition, operations or business of Borrower or the Property from that set forth in said financial statements.

 

    	- 29 -

    	 

    

 

3.1.11          Condemnation.
No Condemnation or other proceeding has been commenced or, to Borrower’s best knowledge, is contemplated with respect to
all or any portion of the Property or for the relocation of roadways providing access to the Property.

 

3.1.12          Easements; Utilities
and Public Access. To Borrower’s actual knowledge, all easements, cross easements, licenses, air rights and rights-of-way
or other similar property interests (collectively, “Easements”), if any, necessary for the full utilization
of the Improvements for their intended purposes have been obtained, are described in the Title Insurance Policy and are in full
force and effect without default thereunder. The Property is located on or adjacent to a public road and has direct legal access
to such road, or has access via an irrevocable easement or irrevocable right of way permitting ingress and egress to and from a
public road. The Property is served by water, sewer, sanitary sewer and storm drain facilities and all required utilities, each
of which is appropriate to service the Property for its intended uses. To Borrower’s actual knowledge, all public utilities
necessary or convenient to the full use and enjoyment of the Property are located in the public right-of-way abutting the Property,
and all such utilities are connected so as to serve the Property without passing over other property absent a valid irrevocable
easement. To Borrower’s actual knowledge, all roads necessary for the use of the Property for its current purpose have been
completed and dedicated to public use and accepted by all Governmental Authorities.

 

3.1.13          Separate Lots.
The Property is comprised of one (1) or more parcels which constitute separate tax lots and do not constitute a portion of
any other tax lot not a part of the Property.

 

3.1.14          Assessments.
There are no pending or proposed special or other assessments for public improvements or otherwise affecting the Property, nor
are there any contemplated improvements to the Property that may result in such special or other assessments.

 

3.1.15          Enforceability.
The Loan Documents are not subject to any right of rescission, offset, counterclaim or defense by Borrower, any SPC Party or Guarantor
including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of any right
thereunder, to Borrower's actual knowledge, render the Loan Documents unenforceable, and none of Borrower, any SPC Party or Guarantor
have asserted any right of rescission, set-off, counterclaim or defense with respect thereto.

 

3.1.16          Assignment of
Leases. To Borrower's actual knowledge, the Assignment of Leases creates a valid, first priority collateral assignment of,
or a valid, first priority security interest in, rents and certain rights under the Leases, subject only to a license granted to
Borrower to exercise certain rights and to perform certain obligations of the lessor under the Leases, including the right to operate
the Property. No Person other than Lender has any interest in or assignment of the Leases or any portion of the Rents due and payable
or to become due and payable thereunder.

 

3.1.17          Insurance.
Borrower has obtained and has delivered to Lender original or certified copies of all of the Policies, with all premiums prepaid
thereunder, reflecting the insurance coverages, amounts and other requirements set forth in this Agreement. No claims have been
made under any of the Policies, and no Person, including Borrower, has done, by act or omission, anything which would impair the
coverage of any of the Policies.

 

    	- 30 -

    	 

    

 

3.1.18          Licenses.
All certifications, permits, licenses, franchises, consents, approvals and any other applicable governmental authorizations, including,
without limitation, certificates of completion and occupancy permits required of Borrower for the legal use, occupancy and operation
of the Property as a medical office building (collectively, the “Licenses”), have been obtained and are in full
force and effect. Borrower shall keep and maintain all Licenses necessary for the operation of the Property as a medical office
building. The use being made of the Property is in conformity with the certificate of occupancy issued for the Property.

 

3.1.19          Flood Zone.
None of the Improvements on the Property is located in an area identified by the Federal Emergency Management Agency as a special
flood hazard area, or, if so located, the flood insurance required pursuant to Section 5.1.1(a) hereof is in full force
and effect with respect to the Property.

 

3.1.20          Physical Condition.
Except as may be expressly set forth in the Physical Condition Report, the Property, including all buildings, improvements, parking
facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems,
equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition,
order and repair in all material respects; there exists no structural or other material defect or damage in the Property, whether
latent or otherwise, and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies
in the Property, or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary
premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond.

 

3.1.21          Boundaries.
All of the Improvements which were included in determining the appraised value of the Property lie wholly within the boundaries
and building restriction lines of the Property, and no improvements on adjoining properties encroach upon the Property, and no
easements or other encumbrances affecting the Property encroach upon any of the Improvements, so as to affect the value or marketability
or current use of the Property. No improvements on adjoining parcels encroach onto the Property except for encroachments that do
not materially and adversely affect the value or current use of the Property. No Improvements encroach upon any easements except
for encroachments the removal of which would not materially and adversely affect the value or current use of the Property.

 

    	- 31 -

    	 

    

 

3.1.22          Leases.
The rent roll attached hereto as Schedule I is true, complete and correct and the Property is not subject to any Leases
other than the Leases described in Schedule I. Borrower is the owner and lessor of landlord’s interest in the
Leases. No Person has any possessory interest in the Property or right to occupy the same except under and pursuant to the provisions
of the Leases. The Leases identified on Schedule I are in full force and effect and there are no defaults thereunder
by either party, and there are no conditions that, with the passage of time or the giving of notice, or both, would constitute
defaults thereunder. The copies of the Leases delivered to Lender are true and complete, and there are no oral agreements with
respect thereto. No Rent (including security deposits) has been paid more than one (1) month in advance of its due date.
All work to be performed by Borrower under each Lease has been performed as required and has been accepted by the applicable Tenant.
Any payments, free rent, partial rent, rebate of rent or other payments, credits, allowances or abatements required to be given
by Borrower to any Tenant has already been received by such Tenant. The Tenants under the Leases have accepted possession of and
are in occupancy of all of their respective demised premises and have commenced the payment of full, unabated rent under the Leases.
Borrower has delivered to Lender a true, correct and complete list of all security deposits made by Tenants at the Property which
have not been applied (including accrued interest thereon), all of which are held by Borrower in accordance with the terms of
the applicable Lease and applicable Legal Requirements. No Tenant under a Major Lease is a debtor in state or federal bankruptcy,
insolvency or similar proceeding. No Tenant under any Lease (or any sublease) is an Affiliate of Borrower. The Tenants under the
Leases are open for business and paying full, unabated rent. There are no brokerage fees or commissions due and payable in connection
with the leasing of space at the Property, except as has been previously disclosed to Lender in writing, and no such fees or commissions
will become due and payable in the future in connection with the Leases, including by reason of any extension of such Lease or
expansion of the space leased thereunder, except as has previously been disclosed to Lender in writing. There has been no prior
sale, transfer or assignment, hypothecation or pledge of any Lease or of the Rents received therein which is still in effect.
No Tenant listed on Schedule I has assigned its Lease or sublet all or any portion of the premises demised thereby,
no such Tenant holds its leased premises under assignment or sublease, nor does anyone except such Tenant and its employees occupy
such leased premises. No Tenant under any Lease has a right or option pursuant to such Lease or otherwise to purchase all or any
part of the leased premises or the building of which the leased premises are a part. No Tenant under any Lease has any right or
option for additional space in the Improvements.

 

3.1.23          Filing and Recording
Taxes. All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid
under applicable Legal Requirements in connection with the transfer of the Property to Borrower have been paid or are being paid
simultaneously herewith. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid under applicable
Legal Requirements in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of
any of the Loan Documents, including the Mortgage, have been paid or are being paid simultaneously herewith. All taxes and governmental
assessments due and owing in respect of the Property have been paid, or an escrow of funds in an amount sufficient to cover such
payments has been established hereunder or are insured against by the Title Insurance Policy.

 

3.1.24          Single Purpose.
Borrower hereby represents and warrants to, and covenants with, Lender that since the date of its formation and at all times on
and after the date hereof and until such time as the Obligations shall be paid and performed in full:

 

(a)         Borrower
(i) has been, is, and will be organized solely for the purpose of acquiring, developing, owning, holding, selling,
leasing, transferring, exchanging, managing and operating the Property, entering into this Agreement with the Lender,
refinancing the Property in connection with a permitted repayment of the Loan, and transacting lawful business that is
incident, necessary and appropriate to accomplish the foregoing, and (ii) has not owned, does not own, and will not own
any asset or property other than (A) the Property, and (B) incidental personal property necessary for the ownership
or operation of the Property.

 

    	- 32 -

    	 

    

 

(b)         Borrower
has not engaged and will not engage in any business other than the ownership, management and operation of the Property and Borrower
will conduct and operate its business as presently conducted and operated.

 

(c)         Borrower
has not and will not enter into any contract or agreement with any Affiliate of Borrower, any constituent party of Borrower or
any Affiliate of any constituent party, except upon terms and conditions that are intrinsically fair, commercially reasonable,
and no less favorable to it than would be available on an arms-length basis with third parties other than any such party.

 

(d)         Borrower
has not incurred and will not incur any Indebtedness other than (i) the Debt, and (ii) unsecured trade payables and operational
debt not evidenced by a note and in an aggregate amount not exceeding one percent (1%) of the original principal amount of
the Loan at any one time; provided that any Indebtedness incurred pursuant to subclause (ii) shall be (A) outstanding
not more than sixty (60) days, and (B) incurred in the ordinary course of business (the Indebtedness described in the
foregoing clauses (i) and (ii) is referred to herein, collectively, as “Permitted Indebtedness”).
No Indebtedness other than the Debt may be secured (senior, subordinate or pari passu) by the Property.

 

(e)         Borrower
has not made and will not make any loans or advances to any third party (including any Affiliate or constituent party), and has
not and shall not acquire obligations or securities of its Affiliates.

 

(f)         Borrower
has been, is, and will remain solvent and Borrower has paid and will pay its debts and liabilities (including, as applicable, shared
personnel and overhead expenses) from its assets as the same shall become due (to the extent of available cash flow from the operations
of the Property and provided that nothing contained herein shall be deemed to require any member of Borrower to make any additional
capital contributions to Borrower).

 

(g)         Borrower
has done or caused to be done, and will do, all things necessary to observe organizational formalities and preserve its existence,
and Borrower has not, will not, nor will Borrower permit any SPC Party to, (i) terminate or fail to comply with the provisions
of its organizational documents, or (ii) unless (A) Lender has consented and (B) following a Securitization of the
Loan, the applicable Rating Agencies have issued a Rating Agency Confirmation in connection therewith, amend, modify or otherwise
change its partnership certificate, partnership agreement, articles of incorporation and bylaws, operating agreement, trust or
other organizational documents.

 

    	- 33 -

    	 

    

 

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

 

(i)         Borrower
has been, will be, and at all times has held and will hold itself out to the public as, a legal entity separate and distinct from
any other entity (including any Affiliate of Borrower or any constituent party of Borrower), shall correct any known misunderstanding
regarding its status as a separate entity, shall conduct business in its own name, shall not identify itself or any of its Affiliates
as a division or department or part of the other and shall maintain and utilize separate stationery, invoices and checks bearing
its own name.

 

(j)         Borrower
has maintained and intends to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its
size and character and in light of its contemplated business operations (to the extent of available cash flow from the operations
of the Property and provided that nothing contained herein shall be deemed to require any member of Borrower to make any additional
capital contributions to Borrower).

 

(k)         Neither
Borrower nor any constituent party of Borrower has sought or will seek or effect the liquidation, dissolution, winding up, consolidation,
asset sale or merger, in whole or in part, of Borrower.

 

(l)         Borrower
has not and will not commingle the funds and other assets of Borrower with those of any Affiliate or constituent party or any other
Person, and has held and will hold all of its assets in its own name.

 

(m)         Borrower
has and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its
individual assets from those of any Affiliate or constituent party or any other Person.

 

(n)         Borrower
has not and will not assume or guarantee or become obligated for the debts of any other Person and does not and will not hold itself
out to be responsible for or have its credit available to satisfy the debts or obligations of any other Person.

 

    	- 34 -

    	 

    

 

(o)         Unless Borrower
shall be a Delaware limited liability company satisfying the requirements of clause (r) below, Borrower’s managing member
(“SPC Party”) shall be a Person whose sole asset is its interest in Borrower and each such SPC Party (i) will
cause Borrower to comply with each of the representations, warranties and covenants contained in this Section 3.1.24;
(ii) will at all times comply with each of the representations, warranties and covenants contained in this Section 3.1.24
(other than subsections (a), (b), (d) and (aa)) as if such representation, warranty or covenant was made directly by
such SPC Party; (iii) will not engage in any business or activity other than owning an interest in Borrower; (iv) will
not acquire or own any assets other than its partnership or membership interest in Borrower; and (v) will not incur any debt,
secured or unsecured, direct or contingent (including guaranteeing any obligation) other than unsecured trade payables incurred
in the ordinary course of business related to the ownership of an interest in Borrower that (A) do not exceed at any one time
$10,000.00, and (B) are paid within thirty (30) days after the date incurred. Upon the withdrawal or the disassociation
of an SPC Party from Borrower, Borrower shall immediately appoint a new SPC Party whose articles of formation or incorporation
are substantially similar to those of such SPC Party.

 

(p)         Intentionally
omitted.

 

(q)         The organizational
documents of Borrower and each SPC Party shall provide that Borrower and each SPC Party and Borrower and each SPC Party agrees
that it will not without the unanimous written consent of its board of directors, members, managers or partners, as applicable,
on behalf of itself or the Borrower (i) file or consent to the filing of any petition, either voluntary or involuntary, to
take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization statute, (ii) seek or consent to the
appointment of a receiver, liquidator or any similar official of Borrower or a substantial part of its business, (iii) take
any action that might cause such entity to become insolvent, (iv) make an assignment for the benefit of creditors, (v) admit
in writing its inability to pay debts generally as they become due, (vi) declare or effectuate a moratorium on the payment
of any obligations, or (vii) take any action in furtherance of the foregoing. In addition, the organizational documents of
Borrower and each SPC Party, as applicable, shall provide that, when voting with respect to any matters set forth in the immediately
preceding sentence of this Section 3.1.24(q), the directors, members, managers, or partners, as applicable, shall consider
only the interests of Borrower, including its creditors.

 

(r)         Notwithstanding
anything herein to the contrary, Borrower or the SPC Party may be a Delaware limited liability company provided that:

 

(i)         the
organizational documents of Borrower or such SPC Party, as applicable, shall provide that, as long as any portion of the
Obligations remains outstanding, upon the occurrence of any event that causes the last remaining member of Borrower or such
SPC Party (the “Last Member”) to cease to be a member of Borrower or such SPC Party (other than
(i) upon an assignment by Last Member of all of its limited liability company interest in Borrower or SPC Party, as
applicable, and the admission of the transferee, if permitted pursuant to the organizational documents of Borrower or SPC
Party, as applicable, and the Loan Documents, or (ii) the resignation of Last Member and the admission of an additional
member of Borrower or SPC Party, as applicable, if permitted pursuant to the organizational documents of Borrower or SPC
Party, as applicable, and the Loan Documents), each of the persons acting as the designated special member of Borrower or SPC
Party, as applicable, shall, without any action of any Person and simultaneously with Last Member ceasing to be a member of
Borrower or SPC Party, as applicable, automatically be admitted as members of Borrower or SPC Party, as applicable (in each
case, individually, a “Special Member” and collectively, the “Special Members”) and
shall preserve and continue the existence of Borrower or SPC Party, as applicable, without dissolution. The organizational
documents of Borrower or SPC Party, as applicable, shall further provide that for so long as any portion of the Obligations
is outstanding, no Special Member may resign or transfer its rights as Special Member unless a successor Special Member has
been admitted to Borrower or SPC Party, as applicable, as a Special Member; and

 

    	- 35 -

    	 

    

 

(ii)         the
organizational documents of Borrower or SPC Party, as applicable, shall provide that, as long as any portion of the
Obligations remains outstanding: (i) Borrower or SPC Party, as applicable, shall be dissolved, and its affairs shall be
wound up, only upon the first to occur of the following: (A) the termination of the legal existence of the last
remaining member of Borrower or SPC Party, as applicable, or the occurrence of any other event which terminates the continued
membership of the last remaining member of Borrower or SPC Party, as applicable unless the business of Borrower or SPC Party,
as applicable, is continued in a manner permitted by its operating agreement or the Delaware Limited Liability Company Act
(the “Act”), or (B) the entry of a decree of judicial dissolution under Section 18-802 of the
Act; (ii) upon the occurrence of any event that causes the last remaining member of Borrower or SPC Party, as
applicable, to cease to be a member of Borrower or SPC Party, as applicable, or that causes Last Member to cease to be a
member of Borrower or SPC Party, as applicable (other than (A) upon an assignment by Last Member of all of its limited
liability company interest in Borrower or SPC Party, as applicable, and the admission of the transferee, if permitted
pursuant to the organizational documents of Borrower or SPC Party, as applicable, and the Loan Documents, or (B) the
resignation of Last Member and the admission of an additional member of Borrower or SPC Party, as applicable, if permitted
pursuant to the organizational documents of Borrower or SPC Party, as applicable, and the Loan Documents), to the fullest
extent permitted by law, the personal representative of such last remaining member shall be authorized to, and shall, within
ninety (90) days after the occurrence of the event that terminated the continued membership of such member in Borrower
or SPC Party, as applicable, agree in writing (i) to continue the existence of Borrower or SPC Party, as applicable, and
(ii) to the admission of the personal representative or its nominee or designee, as the case may be, as a
substitute member of Borrower or SPC Party, as applicable, effective as of the occurrence of the event that terminated the
continued membership of such member in Borrower or SPC Party, as applicable; (iii) the bankruptcy of Last Member or a
Special Member shall not cause such Last Member or Special Member, respectively, to cease to be a member of Borrower or SPC
Party, as applicable, and upon the occurrence of such an event, the business of Borrower or SPC Party, as applicable, shall
continue without dissolution; (iv) in the event of the dissolution of Borrower or SPC Party, as applicable, Borrower or
SPC Party, as applicable shall conduct only such activities as are necessary to wind up its affairs (including the sale of
the assets of Borrower or SPC Party, as applicable, in an orderly manner), and the assets of Borrower or SPC Party, as
applicable, shall be applied in the manner, and in the order of priority, set forth in Section 18-804 of the Act; and
(v) to the fullest extent permitted by law, each of Last Member and the Special Members shall irrevocably waive any
right or power that they might have to cause Borrower or SPC Party, as applicable, or any of its assets to be partitioned, to
cause the appointment of a receiver for all or any portion of the assets of Borrower or SPC Party, as applicable, to compel
any sale of all or any portion of the assets of Borrower or SPC Party, as applicable, pursuant to any applicable law or to
file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation, winding up or
termination of Borrower or SPC Party, as applicable.

 

    	- 36 -

    	 

    

 

(s)         Intentionally
omitted.

 

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

 

(u)         Borrower
has paid and shall pay its own liabilities and expenses, including the salaries of its own employees (if any) from its own funds,
and has maintained and shall maintain a sufficient number of employees (if any) in light of its contemplated business operations.

 

(v)         Borrower
has compensated and shall compensate each of its consultants and agents from its funds for services provided to it and pay from
its own assets all obligations of any kind incurred.

 

(w)         Borrower
has not, and without the unanimous consent of all of its directors or members, as applicable, will not (i) file a bankruptcy,
insolvency or reorganization petition or otherwise institute insolvency proceedings or otherwise seek any relief under any laws
relating to the relief from debts or the protection of debtors generally, (ii) seek or consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator, custodian or any similar official for such entity or for all or any portion of Borrower’s
properties, (iii) make any assignment for the benefit of Borrower’s creditors, or (iv) take any action that might
cause Borrower to become insolvent.

 

(x)         Borrower
has maintained and will maintain an arm’s-length relationship with its Affiliates.

 

(y)         Borrower
has allocated and will allocate fairly and reasonably any overhead expenses that are shared with any Affiliate, including shared
office space.

 

(z)         Except in
connection with the Loan, Borrower has not pledged and will not pledge its assets for the benefit of any other Person.

 

    	- 37 -

    	 

    

  

(aa)         Borrower
has and will have no obligation to indemnify its officers, directors, members or partners, as the case may be, or has such an obligation
that is fully subordinated to the Debt and will not constitute a claim against it if cash flow in excess of the amount required
to pay the Debt is insufficient to pay such obligation.

 

(bb)         if such
Borrower is (i) a limited liability company, has articles of organization, a certificate of formation and/or an operating
agreement, as applicable, (ii) a limited partnership, has a limited partnership agreement, or (iii) a corporation, has
a certificate of incorporation or articles that, in each case, provide that such entity will not: (A) dissolve, merge, liquidate,
consolidate; (B) sell, transfer, dispose, or encumber (except with respect to the Loan Documents) all or substantially all
of its assets or acquire all or substantially all of the assets of any Person; or (C) engage in any other business activity,
or amend its organizational documents with respect to the matters set forth in this Section 3.1.24 without the consent
of the Lender.

 

(cc)         Borrower
will consider the interests of Borrower’s creditors in connection with all limited liability company actions.

 

(dd)         Borrower
has not, does not, and will not have any of its obligations guaranteed by any Affiliate.

 

3.1.25          Tax Filings.
To the extent required, Borrower has filed (or has obtained effective extensions for filing) all federal, state, commonwealth,
district and local tax returns required to be filed and has paid or made adequate provision for the payment of all federal, state,
commonwealth, district and local taxes, charges and assessments payable by Borrower. Borrower’s tax returns (if any) properly
reflect the income and taxes of Borrower for the periods covered thereby, subject only to reasonable adjustments required by the
Internal Revenue Service or other applicable tax authority upon audit.

 

3.1.26          Solvency.
Borrower (i) has not entered into the Loan transaction or any Loan Document with the actual intent to hinder, delay, or defraud
any creditor, and (ii) received reasonably equivalent value in exchange for its Obligations under the Loan Documents. Giving
effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the
Loan, exceed Borrower’s total liabilities, including subordinated, unliquidated, disputed and contingent liabilities. The
fair saleable value of Borrower’s assets is, and immediately following the making of the Loan, will be, greater than Borrower’s
probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and
matured. Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small
capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe
that it will, incur Indebtedness and liabilities (including contingent liabilities and other commitments) beyond its ability to
pay such Indebtedness and liabilities as they mature (taking into account the timing and amounts of cash to be received by Borrower
and the amounts to be payable on or in respect of the obligations of Borrower). No petition in bankruptcy has been filed against
Borrower or any constituent Person of Borrower, and neither Borrower nor any constituent Person of Borrower has ever made an assignment
for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any of
its constituent Persons are contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency
laws or the liquidation of all or a major portion of Borrower’s assets or properties, and Borrower has no knowledge of any
Person contemplating the filing of any such petition against it or such constituent Persons. Neither the Property, nor any portion
thereof, is the subject of, and neither Borrower nor Guarantor is a debtor in, state or federal bankruptcy, insolvency or similar
proceeding. None of Borrower, any Person owning a direct ownership interest in Borrower of 20% or greater, or Guarantor has ever
been in a state or federal bankruptcy or insolvency proceeding or convicted of a felony.

 

    	- 38 -

    	 

    

 

3.1.27          Federal Reserve
Regulations. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin
stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose
which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes
prohibited by Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents.

 

3.1.28          Organizational
Chart. The organizational chart attached as Schedule III, relating to Borrower and certain Affiliates and other
parties, is true, complete and correct on and as of the date hereof and accurately identifies all beneficial controlling owners
of Borrower (i.e., managing members, general partners or similar controlling person of Borrower). No Person other than those Persons
shown on Schedule III have any ownership interest in, or right of control, directly or indirectly, in Borrower and
no direct or indirect interest in Borrower is subject to and pledge or other security interest.

 

3.1.29          Organizational
Status. Borrower’s exact legal name is: United 945 82nd Parkway Fee, LLC. Borrower is of the following organizational
type (e.g., corporation, limited liability company): limited liability company, and the jurisdiction in which Borrower is
organized is: Delaware. Borrower’s Tax I.D. number is 46-5621922 and Borrower’s Delaware Organizational I.D. number
is 5471633.

 

3.1.30          Bank Holding
Company. Borrower is not a “bank holding company” or a direct or indirect subsidiary of a “bank holding company”
as defined in the Bank Holding Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors of the
Federal Reserve System.

 

3.1.31          No Casualty.
The Improvements have suffered no material casualty or damage which has not been fully repaired and the cost thereof fully paid.

 

3.1.32          Purchase Options.
Other than that certain right of first refusal granted to Myrtle Beach Farms Company, Inc., pursuant to that certain Deed recorded
in the register of deeds for Horry Count, South Carolina, deed Book 1853, Page 1260, neither the Property nor any part thereof
are subject to any purchase options, rights of first refusal, rights of first offer or other similar rights in favor of third parties.

 

3.1.33          FIRPTA.
Borrower is not a “foreign person” within the meaning of Sections 1445 or 7701 of the Code.

 

    	- 39 -

    	 

    

 

3.1.34          Investment Company
Act. Borrower is not (i) an “investment company” or a company “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended, or (ii) subject to any other United States
federal or state law or regulation which purports to restrict or regulate its ability to borrow money.

 

3.1.35          Use of Property.
The Property consists solely of a medical office building and related operations and is used for no other purpose.

 

3.1.36          Fiscal Year.
Each fiscal year of Borrower commences on January 1.

 

3.1.37          No Other Financing.
Borrower has not borrowed any funds which have not heretofore been repaid in full, except for the Loan.

 

3.1.38          Contracts.

 

(a)         Borrower
has not entered into, and is not bound by, any Major Contract which continues in existence, except those previously disclosed in
writing to Lender.

 

(b)         Each of
the Major Contracts is in full force and effect, there are no monetary or other material defaults by Borrower thereunder and, to
the best knowledge of Borrower, there are no monetary or other material defaults thereunder by any other party thereto. None of
Borrower, Manager or any other Person acting on Borrower’s behalf has given or received any notice of default under any of
the Major Contracts that remains uncured or in dispute.

 

(c)         Borrower
has delivered true, correct and complete copies of the Major Contracts (including all amendments and supplements thereto) to Lender.

 

(d)         Except for
the Manager under the Management Agreement, no Major Contract has as a party an Affiliate of Borrower. All fees and other compensation
for services previously performed under the Management Agreement have been paid in full.

 

3.1.39          Full and Accurate
Disclosure. No statement of fact made by Borrower in this Agreement or in any of the other Loan Documents contains any untrue
statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading.
There is no material fact presently known to Borrower which has not been disclosed to Lender which adversely affects, nor as far
as Borrower can foresee, might adversely affect, the Property or the business, operations or condition (financial or otherwise)
of Borrower.

 

3.1.40          Other
Obligations and Liabilities. Borrower has no liabilities or other obligations that arose or accrued prior to the date
hereof that, either individually or in the aggregate, could have a material adverse effect on Borrower, the Property and/or
Borrower’s ability to pay the Debt. Borrower has no known contingent liabilities.

 

3.1.41          Intentionally
Omitted.

 

    	- 40 -

    	 

    

 

3.1.42          REA. There
are currently no REA’s affecting the Property.

 

3.1.43          Intentionally
Omitted.

 

3.1.44          Illegal Activity.
No portion of the Property has been or will be purchased with proceeds of any illegal activity.

 

3.1.45          Business Purposes.
The Loan is solely for the business purpose of Borrower, and is not for personal, family, household, or agricultural purposes.

 

Section 3.2          Survival
of Representations.

 

The representations and warranties
set forth in Section 3.1 and elsewhere in this Agreement and the other Loan Documents shall survive until the Obligations
have been paid and performed in full.

 

ARTICLE
4

BORROWER COVENANTS

 

Section 4.1          Borrower
Affirmative Covenants.

 

Borrower hereby covenants
and agrees with Lender that throughout the Term:

 

4.1.1          Payment and Performance
of Obligations. Borrower shall pay and otherwise perform the Obligations in accordance with the terms of this Agreement and
the other Loan Documents.

 

4.1.2          Existence;
Compliance with Legal Requirements. Each of Borrower and each SPC Party shall do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises and
comply with all Legal Requirements applicable to it and the Property. There shall never be committed by Borrower and Borrower
shall not permit any other Person in occupancy of or involved with the operation or use of the Property to commit any act or
omission affording the federal government or any state or local government the right of forfeiture against the Property or
any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower
hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture.
Borrower shall at all times maintain, preserve and protect all franchises and trade names and preserve all the remainder of
its property used or useful in the conduct of its business and shall keep the Property in good working order and repair, and
from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and
improvements thereto, all as more fully provided in the Mortgage. Borrower shall keep the Property insured at all times by
financially sound and reputable insurers, to such extent and against such risks, and maintain liability and such other
insurance, as is more fully provided in this Agreement.

 

    	- 41 -

    	 

    

 

4.1.3          Taxes and Other
Charges. Borrower shall pay all Taxes and Other Charges now or hereafter levied, assessed or imposed as the same become due
and payable, and shall furnish to Lender receipts for the payment of the Taxes and the Other Charges prior to the date the same
shall become delinquent (provided, however, that Borrower need not pay Taxes directly nor furnish such receipts for payment of
Taxes to the extent that funds to pay for such Taxes have been deposited into the Tax Account pursuant to Section 6.3).
Borrower will deliver to Lender receipts for payment or other evidence satisfactory to Lender that the Taxes and Other Charges
have been so paid no later than ten (10) days prior to the date on which the Taxes and/or Other Charges would be delinquent
if not paid. Borrower shall not permit or suffer, and shall promptly discharge, any Lien or charge against the Property, and shall
promptly pay for all utility services provided to the Property. After prior notice to Lender, Borrower, at its own expense, may
contest by appropriate legal proceeding, conducted in good faith and with due diligence, the amount or validity of any Taxes or
Other Charges, provided that (i) no Default or Event of Default has occurred and remains uncured; (ii) such proceeding
shall be permitted under and be conducted in accordance with all applicable statutes, laws and ordinances; (iii) neither the
Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost; (iv) Borrower
shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges, together with all costs, interest
and penalties which may be payable in connection therewith; (v) such proceeding shall suspend the collection of Taxes or Other
Charges from the Property; (vi) Borrower shall deposit with Lender cash, or other security as may be approved by Lender, in
an amount equal to one hundred fifteen percent (115%) of the contested amount, to insure the payment of any such Taxes or
Other Charges, together with all interest and penalties thereon, (vii) failure to pay such Taxes or Other Charges will not
subject Lender to any civil or criminal liability, (viii) such contest shall not affect the ownership, use or occupancy of
the Property, and (ix) Borrower shall, upon request by Lender, give Lender prompt notice of the status of such proceedings
and/or confirmation of the continuing satisfaction of the conditions set forth in clauses (i) – (viii) of this
Section 4.1.3. Lender may pay over any such cash or other security held by Lender to the claimant entitled thereto
at any time when, in the judgment of Lender, the entitlement of such claimant is established or the Property (or any part thereof
or interest therein) shall be in danger of being sold, forfeited, terminated canceled or lost or there shall be any danger of the
Lien of the Mortgage being primed by any related Lien.

 

4.1.4          Litigation.
Borrower shall give prompt notice to Lender of any material litigation or governmental proceedings pending or threatened against
the Property, Borrower, any SPC Party or Guarantor which might materially adversely affect the Property or Borrower’s, such
SPC Party’s or Guarantor’s condition (financial or otherwise) or business (including Borrower’s ability to perform
its Obligations hereunder or under the other Loan Documents).

 

4.1.5          Access
to Property. Borrower shall permit agents, representatives, consultants and employees of Lender to inspect the Property
or any part thereof at reasonable hours upon reasonable advance notice (which may be given verbally). Lender or its agents,
representatives, consultants and employees as part of any inspection may take soil, air, water, building material and other
samples from the Property, subject to the rights of Tenants under Leases.

 

4.1.6          Further Assurances;
Supplemental Mortgage Affidavits. Borrower shall, at Borrower’s sole cost and expense:

 

    	- 42 -

    	 

    

 

(a)         furnish
to Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications,
appraisals, title and other insurance reports and agreements, and each and every other document, certificate, agreement and instrument
required to be furnished by Borrower pursuant to the terms of the Loan Documents or which are reasonably requested by Lender in
connection therewith;

 

(b)         execute
and deliver to Lender such documents, instruments, certificates, assignments and other writings, and do such other acts necessary
or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the Obligations, as
Lender may reasonably require; and

 

(c)         do and execute
all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the
intents and purposes of this Agreement and the other Loan Documents, as Lender shall reasonably require from time to time.

 

4.1.7          Financial Reporting.

 

(a)         Borrower
shall keep and maintain or will cause to be kept and maintained proper and accurate books and records, in accordance with GAAP
or such other accounting method reasonably acceptable to Lender, consistently applied, reflecting the financial affairs of Borrower
and all items of income and expense in connection with the operation of the Property. Lender shall have the right from time to
time during normal business hours upon reasonable notice (which may be given verbally) to Borrower to examine such books and records
at the office of Borrower or other Person maintaining such books and records and to make such copies or extracts thereof as Lender
shall desire. After an Event of Default, Borrower shall pay any costs incurred by Lender to examine such books, records and accounts,
as Lender shall determine to be necessary or appropriate in the protection of Lender’s interest.

 

(b)         Not
later than forty-five (45) days following the end of each fiscal quarter (and for the first twelve (12) months
following the Closing Date, not later than fifteen (15) days following the end of each calendar month), Borrower shall
deliver to Lender unaudited operating statements, internally prepared on a cash basis including a balance sheet and profit
and loss statement as of the end of such quarter and for the corresponding quarter of the previous year, and a statement of
revenues and expenses for the year to date, a statement of Net Operating Income for such quarter, and a comparison of the
year to date results with (i) the results for the same period of the previous year, (ii) the results that had been
projected by Borrower for such period and (iii) the Annual Budget for such period and the Fiscal Year. Such statements
for each quarter shall be accompanied by an Officer’s Certificate certifying to the best of the signer’s
knowledge, (A) that such statements fairly represent the financial condition and results of operations of Borrower,
(B) that as of the date of such Officer’s Certificate, no Default exists under this Agreement, the Note or any
other Loan Document or, if so, specifying the nature and status of each such Default and the action then being taken by
Borrower or proposed to be taken to remedy such Default, (C) that as of the date of each Officer’s Certificate, no
litigation exists involving Borrower or the Property in which the amount involved is $250,000 (in the aggregate) or more or
in which all or substantially all of the potential liability is not covered by insurance, or, if so, specifying such
litigation and the actions being taking in relation thereto and (D) the amount by which actual Operating Expenses were
greater than or less than the Operating Expenses anticipated in the applicable Annual Budget. Such financial statements shall
contain such other information as shall be reasonably requested by Lender for purposes of calculations to be made by
Lender pursuant to the terms hereof.

 

    	- 43 -

    	 

    

 

(c)         Not later
than ninety (90) days after the end of each Fiscal Year of Borrower’s operations, Borrower shall deliver to Lender unaudited
financial statements and operating statements, covering the Property, including a balance sheet as of the end of such year,
a statement of Net Operating Income for the year and for the fourth quarter thereof and a statement of revenues and expenses for
such year, and stating in comparative form the figures for the previous fiscal year and the Annual Budget for such fiscal year,
as well as the supplemental schedule of net income or loss presenting the net income or loss for the Property and occupancy statistics
for the Property, and copies of all federal income tax returns to be filed. Such annual financial statements shall also be accompanied
by an Officer’s Certificate in the form required pursuant to Section 4.1.7(b) above.

 

(d)         Not later
than forty-five (45) days after the end of each fiscal quarter of Borrower’s operations, Borrower shall deliver to Lender
a true and complete rent roll for the Property, dated as of the last month of such fiscal quarter, showing the percentage of gross
leasable area of the Property, if any, leased as of the last day of the preceding calendar quarter, the current annual rent for
the Property, the expiration date of each lease, whether to Borrower’s knowledge any portion of the Property has been sublet,
and if it has, the name of the subtenant, and such rent roll shall be accompanied by an Officer’s Certificate certifying
that such rent roll is true, correct and complete in all material respects as of its date and stating whether Borrower, within
the past three (3) months, has issued a notice of default with respect to any Lease which has not been cured and the nature
of such default.

 

(e)         Borrower
shall, within ninety (90) days after the end of each calendar year during the term of the Note, deliver to Lender an annual
summary of any and all Capital Expenditures made at the Property during the prior twelve (12) month period.

 

(f)         Borrower
shall deliver to Lender, within ten (10) Business Days of the receipt thereof by Borrower, a copy of all reports
prepared by Manager pursuant to the Management Agreement, including, without limitation, the Annual Budget and any inspection
reports.

 

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(g)         Borrower
shall submit to Lender by November 1 of each year the Annual Budget for the succeeding Fiscal Year. Lender shall have the right
to approve each Annual Budget (which approval shall not be unreasonably withheld so long as no Event of Default has occurred) and
Annual Budgets approved by Lender shall hereinafter be referred to as an “Approved Annual Budget”. In the event
that Borrower incurs an extraordinary operating expense or extraordinary capital expenditure not set forth in the Approved Annual
Budget (each an “Extraordinary Expense”), then Borrower shall promptly deliver to Lender a reasonably detailed
explanation of such proposed Extraordinary Expense for Lender’s approval. Until such time that any Annual Budget has been
approved by Lender, the prior Approved Annual Budget shall apply for all purposes hereunder (with such adjustments as reasonably
determined by Lender to reflect actual increases in Taxes, Insurance Premiums and utilities expenses). Neither Borrower nor Manager
shall change or modify the Annual Budget that has been approved by Lender without the prior written consent of Lender.

 

(h)         Borrower
shall, promptly after written request by Lender or, if a Securitization shall have occurred, the Rating Agencies, furnish or cause
to be furnished to Lender, in such manner and in such detail as may be reasonably requested by Lender, such additional information
as may be reasonably requested with respect to the Property.

 

(i)         If any financial
statements and other items required to be delivered to Lender pursuant to this Section 4.1.7 (each a “Required Financial
Item” and collectively, the “Required Financial Items”) is not timely delivered (“Reporting
Failure”), following ten (10) Business Days' written notice from Lender, Borrower shall promptly pay to Lender, as a
late charge, the sum of One Thousand and No/100 Dollars ($1,000) per Required Financial Item. In addition, Borrower shall promptly
pay to Lender an additional late charge of Five Hundred and No/100 Dollars ($500.00) per Required Financial Item for each full
month during which such Reporting Failure continues following written notice from Lender. Borrower acknowledges that Lender will
incur additional expenses as a result of any such Reporting Failure, which expenses would be impracticable to quantify, and that
Borrower’s payments under this Section 4.1.7 are a reasonable estimate of such expenses. Borrower acknowledges further
that payment by Borrower of this late charge does not in any manner affect or otherwise impair or waive any rights and remedies
Lender may have hereunder, under the Loan Documents or under applicable law for any Event of Default.

 

4.1.8          Title to the
Property. Borrower shall warrant and defend (a) its title to the Property and every part thereof, subject only to Permitted
Encumbrances and (b) the validity and priority of the Liens of the Mortgage, the Assignment of Leases and this Agreement on
the Property, subject only to Permitted Encumbrances, in each case against the claims of all Persons whomsoever. Borrower shall
reimburse Lender for any losses, costs, damages or expenses (including reasonable attorneys’ fees and court costs) incurred
by Lender if an interest in the Property, other than as permitted hereunder, is claimed by another Person.

 

4.1.9          Estoppel Statement.

 

(a)         After request
by Lender, Borrower shall within five (5) Business Days furnish Lender with a statement, duly acknowledged and certified,
stating (i) the Outstanding Principal Balance of the Note, (ii) the Interest Rate, (iii) the date installments of
interest and/or principal were last paid, (iv) any offsets or defenses to the payment and performance of the Obligations,
if any, and (v) that this Agreement and the other Loan Documents have not been modified or if modified, giving particulars
of such modification.

 

    	- 45 -

    	 

    

 

(b)         Intentionally
Omitted.

 

(c)         Borrower
shall deliver to Lender, upon request, an estoppel certificate from each Tenant under any Lease (provided that Borrower shall only
be required to use commercially reasonable efforts to obtain an estoppel certificate from any Tenant not required to provide an
estoppel certificate under its Lease) in form and substance reasonably satisfactory to Lender; provided, that Borrower shall not
be required to deliver such certificates more frequently than three (3) times in any calendar year.

 

(d)         In the event
that an REA affects the Property, Borrower shall use commercially reasonable efforts to deliver to Lender, upon request, estoppel
certificates from each party under any REA, in form and substance reasonably satisfactory to Lender; provided, that Borrower shall
not be required to deliver such certificates more than one (1) time during the Term and not more frequently than once per
calendar year (or twice during any calendar year in which a Securitization occurs).

 

4.1.10          Leases.

 

(a)         All
Leases and all renewals of Leases executed after the date hereof shall (i) provide for economic terms, including rental
rates, comparable to existing local market rates for similar properties, (ii) be on commercially reasonable terms,
(iii) have a term of not less than three (3) years (unless Lender approves in writing a shorter term), (iv) have a
term of not more than ten (10) years, including all extensions and renewals (unless Lender approves in writing a longer
term), (v) provide that such Lease is subordinate to the Mortgage and the Assignment of Leases and that the Tenant
thereunder will attorn to Lender and any purchaser at a foreclosure sale, (vi) be to Tenants that are creditworthy,
(vii) be written substantially in accordance with the standard form of Lease which shall have been approved by Lender
(subject to any commercially reasonable changes made in the course of negotiations with the applicable Tenant),
(viii) not be to an Affiliate of Borrower or any Guarantor, and (ix) not contain any option to purchase, any right
of first refusal to purchase, any right to terminate (except in the event of the destruction or condemnation of substantially
all of the Property), any requirement for a non-disturbance or recognition agreement, or any other terms which would
materially adversely affect Lender’s rights under the Loan Documents. All Major Leases and all renewals, amendments and
modifications thereof executed after the date hereof shall be subject to Lender’s prior approval. Borrower shall not
permit or consent to any assignment or sublease of any Major Lease without Lender’s prior written approval (other than
assignments or subleases expressly permitted under any Major Lease pursuant to a unilateral right of the Tenant thereunder
not requiring the consent of Borrower). Lender, at Borrower’s sole cost and expense, shall execute and deliver its then
standard form of subordination, non-disturbance and attornment agreement to Tenants under any future Major Lease approved by
Lender upon request, with such commercially reasonable changes as may be requested by such Tenants and which are acceptable
to Lender.

 

    	- 46 -

    	 

    

 

(b)         Borrower
(i) shall observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner;
(ii) shall enforce the terms, covenants and conditions contained in the Leases upon the part of the Tenants thereunder to
be observed or performed in a commercially reasonable manner, provided, however, Borrower shall not terminate or accept a surrender
of a Lease without Lender’s prior approval; (iii) shall not collect any of the Rents more than one (1) month in
advance (other than security deposits); (iv) shall not execute any assignment of lessor’s interest in the Leases or
the Rents (except as contemplated by the Loan Documents); and (v) shall not alter, modify or change any Lease so as to change
the amount of or payment date for rent, change the expiration date, grant any option for additional space or term, materially reduce
the obligations of the Tenant or increase the obligations of the lessor. Upon request, Borrower shall furnish Lender with executed
copies of all Leases. Borrower shall promptly send copies to Lender of all written notices of material default which Borrower shall
receive under the Leases.

 

(c)         All security
deposits of Tenants, whether held in cash or any other form, shall be held in compliance with all Legal Requirements, shall not
be commingled with any other funds of Borrower and, if cash, shall be deposited by Borrower at a separately designated account
under Borrower’s control at the Clearing Bank. After the commencement of the initial Sweep Event Period, Borrower shall,
upon Lender’s request, if permitted by applicable Legal Requirements, cause all such security deposits (and any interest
theretofore earned thereon) to be transferred into the Cash Management Account (which shall then be held by Cash Management Bank
in a separate Account), which shall be held by Cash Management Bank subject to the terms of the Leases. Any bond or other instrument
which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (i) shall be
maintained in full force and effect in the full amount of such deposits unless replaced by cash deposits as herein above described,
(ii) shall be issued by an institution reasonably satisfactory to Lender, (iii) shall, if permitted pursuant to any Legal
Requirements, name Lender as payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender), and (iv) shall
in all respects comply with any applicable Legal Requirements and otherwise be satisfactory to Lender. Borrower shall, upon request,
provide Lender with evidence satisfactory to Lender of Borrower’s compliance with the foregoing.

 

(d)         Borrower
shall have the right, without the consent or approval of Lender, to terminate or accept a surrender of any Lease that is not a
Major Lease so long as such termination or surrender is (i) by reason of a tenant default and (ii) in a commercially
reasonable manner to preserve and protect the Property.

 

    	- 47 -

    	 

    

 

4.1.11          Alterations.
Lender’s prior approval shall be required in connection with any alterations to any Improvements (i) that may have a
material adverse effect on Borrower’s financial condition, the value or use of the Property or the ongoing revenues and expenses
of the Property, (ii) the cost of which (including any related alteration, improvement or replacement) is reasonably anticipated
to exceed the Alteration Threshold, or (iii) that materially adversely affects any structural component of any Improvements,
any utility or HVAC system contained in the Improvements or the exterior of any building constituting a part of any Improvements
(any of the foregoing, a “Material Alteration”). If the total unpaid amounts incurred and to be incurred with
respect to such alterations to the Improvements shall at any time exceed the Alteration Threshold, Borrower shall promptly deliver
to Lender as security for the payment of such amounts and as additional security for Borrower’s Obligations under the Loan
Documents any of the following: (i) cash, (ii) a Letter of Credit, (iii) U.S. Obligations, (iv) other securities
acceptable to Lender, provided that Lender shall have received a Rating Agency Confirmation as to the form and issuer of same,
or (v) a completion bond, provided that Lender shall have received a Rating Agency Confirmation as to the form and issuer
of same. Such security shall be in an amount equal to the excess of the total unpaid amounts incurred and to be incurred with respect
to such alterations to the Improvements (other than such amounts to be paid or reimbursed by Tenants under the Leases) over the
Alteration Threshold, and Lender may apply such security from time to time at the option of Lender to pay for such alterations.
Upon substantial completion of any Material Alteration, Borrower shall provide evidence satisfactory to Lender that (i) the
Material Alteration was constructed in accordance with applicable Legal Requirements, (ii) all contractors, subcontractors,
materialmen and professionals who provided work, materials or services in connection with the Material Alteration have been paid
in full and have delivered unconditional releases of liens, and (iii) all material licenses and permits necessary for the
use, operation and occupancy of the Material Alteration (other than those which depend on the performance of tenant improvement
work) have been issued.

 

4.1.12          Approval of
Major Contracts. Borrower shall be required to obtain Lender’s prior written approval of any and all Major Contracts
affecting the Property, which approval may be granted or withheld in Lender’s reasonable discretion.

 

4.1.13          After Acquired
Property. Borrower will grant to Lender a first Lien security interest in and to all equipment and other personal property
owned by Borrower, whether or not used in the construction, maintenance and/or operation of the Improvements, immediately upon
acquisition of same or any part of same.

 

4.1.14          Patriot Act
Compliance.

 

(a)         Borrower
will use its good faith and commercially reasonable efforts to comply with the Patriot Act and all applicable requirements
of Governmental Authorities having jurisdiction over Borrower and/or the Property, including those relating to money
laundering and terrorism. Lender shall have the right to audit Borrower’s compliance with the Patriot Act and all
applicable requirements of Governmental Authorities having jurisdiction over Borrower and/or the Property, including those
relating to money laundering and terrorism. In the event that Borrower fails to comply with the Patriot Act or any such
requirements of Governmental Authorities, then Lender may, at its option, cause Borrower to comply therewith and any and all
costs and expenses incurred by Lender in connection therewith shall be secured by the Mortgage and the other Loan Documents
and shall be immediately due and payable.

 

    	- 48 -

    	 

    

 

(b)         Neither
Borrower nor any owner of a direct or indirect interest in Borrower (i) is listed on any Government Lists, (ii) is a
person who has been determined by competent authority to be subject to the prohibitions contained in Presidential Executive Order
No. 13224 (Sept. 23, 2001) or any other similar prohibitions contained in the rules and regulations of OFAC or in any
enabling legislation or other Presidential Executive Orders in respect thereof, (iii) has been previously indicted for or
convicted of any felony involving a crime or crimes of moral turpitude or for any Patriot Act Offense, or (iv) is currently
under investigation by any Governmental Authority for alleged criminal activity. For purposes hereof, the term “Patriot
Act Offense” means any violation of the criminal laws of the United States of America or of any of the several states,
or that would be a criminal violation if committed within the jurisdiction of the United States of America or any of the several
states, relating to terrorism or the laundering of monetary instruments, including any offense under (A) the criminal laws
against terrorism, (B) the criminal laws against money laundering, (C) the Bank Secrecy Act, as amended, (D) the
Money Laundering Control Act of 1986, as amended, or (E) the Patriot Act. “Patriot Act Offense” also includes
the crimes of conspiracy to commit, or aiding and abetting another to commit, a Patriot Act Offense. For purposes hereof, the term
“Government Lists” means (1) the Specially Designated Nationals and Blocked Persons Lists maintained by
the Office of Foreign Assets Control (“OFAC”), (2) any other list of terrorists, terrorist organizations
or narcotics traffickers maintained pursuant to any of the Rules and Regulations of OFAC that Lender notified Borrower in writing
is now included in “Government Lists”, or (3) any similar lists maintained by the United States Department
of State, the United States Department of Commerce or any other Governmental Authority or pursuant to any Executive Order of the
President of the United States of America that Lender notified Borrower in writing is now included in “Government Lists”.

 

4.1.15          Intentionally
Omitted.

 

4.1.16          Intentionally
Omitted.

 

4.1.17          Notice of Default.
Borrower shall promptly advise Lender of any material adverse change in Borrower’s, SPC Party’s or Guarantor’s
condition, financial or otherwise, or of the occurrence of any Default or Event of Default of which Borrower has knowledge.

 

4.1.18          Cooperate in
Legal Proceedings. Borrower shall cooperate fully with Lender with respect to any proceedings before any court, board or other
Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of
the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such proceedings.

 

4.1.19          Award and Insurance
Benefits. Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully
or equitably payable in connection with the Property (including the payment by Borrower of the expense of an appraisal on behalf
of Lender in case of Casualty or Condemnation affecting the Property or any part thereof), and Lender shall be reimbursed for any
expenses incurred in connection therewith (including attorneys’ fees and disbursements) out of such Insurance Proceeds and
Awards.

 

    	- 49 -

    	 

    

 

4.1.20          Business and
Operations. Borrower will continue to engage in the businesses presently conducted by it as and to the extent the same are
necessary for the ownership, maintenance, management and operation of the Property. Borrower will qualify to do business and will
remain in good standing under the laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance,
management and operation of the Property.

 

4.1.21          Costs of Enforcement.
In the event (a) that the Mortgage is foreclosed in whole or in part or that the Mortgage is put into the hands of an attorney
for collection, suit, action or foreclosure, (b) of the foreclosure of any mortgage prior to or subsequent to the Mortgage
in which proceeding Lender is made a party, (c) of the bankruptcy, insolvency, rehabilitation or other similar proceeding
in respect of Borrower or any of its constituent Persons or an assignment by Borrower or any of its constituent Persons for the
benefit of its creditors or (d) an Event of Default occurs and Lender exercises any of its remedies under the Loan Documents, Borrower,
its successors or assigns, shall be chargeable with and agrees to pay all costs of collection and defense (including, without limitation,
the taxes, appraisals and legal fees), incurred by Lender or Borrower in connection therewith and in connection with any appellate
proceeding or post-judgment action involved therein, together with all required service or use taxes.

 

4.1.22          Performance
by Borrower. Borrower shall in a timely manner observe, perform and fulfill each and every covenant, term and provision of
each Loan Document executed and delivered by, or applicable to, Borrower, and shall not enter into or otherwise suffer or permit
any amendment, waiver, supplement, termination or other modification of any Loan Document executed and delivered by, or applicable
to, Borrower without the prior consent of Lender.

 

Section 4.2          Borrower
Negative Covenants.

 

Borrower covenants and agrees
with Lender that throughout the Term:

 

4.2.1          Due
on Sale and Encumbrance; Transfers of Interests. Without the prior written consent of Lender, but, in each instance,
subject to the provisions of Article 8, neither Borrower nor SPC Party nor any other Person having a direct or
indirect ownership or beneficial interest in Borrower or SPC Party shall sell, convey, mortgage, grant, bargain, encumber,
pledge, assign or transfer the Property or any part thereof, or any interest, direct or indirect, in Borrower, any SPC Party,
whether voluntarily or involuntarily (a “Transfer”). A Transfer within the meaning of this Section 4.2.1
shall be deemed to include (i) an installment sales agreement wherein Borrower agrees to sell the Property or any part
thereof for a price to be paid in installments; (ii) an agreement by Borrower for the leasing of all or a substantial
part of the Property for any purpose other than the actual occupancy by a space tenant thereunder or a sale, assignment or
other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or
any Rents; (iii) if Borrower, Guarantor or any general partner, managing member or controlling shareholder of Borrower
or Guarantor is a corporation, the voluntary or involuntary sale, conveyance or transfer of such corporation’s stock
(or the stock of any corporation directly or indirectly controlling such corporation by operation of law or otherwise) or the
creation or issuance of new stock; (iv) if Borrower, SPC Party, any Guarantor or any general partner, managing member or
controlling shareholder of Borrower, SPC Party, or any Guarantor is a limited or general partnership, joint venture or
limited liability company, the change, removal, resignation or addition of a general partner, managing partner, limited
partner, joint venturer or member or the transfer of the partnership interest of any general partner, managing partner or
limited partner or the transfer of the interest of any joint venturer or member; and (v) any pledge, hypothecation,
assignment, transfer or other encumbrance of any direct or indirect ownership interest in Borrower or any SPC Party.

 

    	- 50 -

    	 

    

 

4.2.2          Liens. Borrower
shall not create, incur, assume or permit to exist any Lien on any direct or indirect interest in Borrower or any SPC Party or
any portion of the Property, except for the Permitted Encumbrances.

 

4.2.3          Dissolution.
Borrower shall not (i) engage in any dissolution, liquidation or consolidation or merger with or into any other business entity,
(ii) engage in any business activity not related to the ownership and operation of the Property, (iii) transfer, lease
or sell, in one transaction or any combination of transactions, all or substantially all of the property or assets of Borrower
except to the extent expressly permitted by the Loan Documents, or (iv) cause, permit or suffer any SPC Party to (A) dissolve,
wind up or liquidate or take any action, or omit to take any action, as a result of which such SPC Party would be dissolved, wound
up or liquidated in whole or in part, or (B) amend, modify, waive or terminate the certificate of incorporation, bylaws, certificate
of formation or operating agreement of such SPC Party, in each case without obtaining the prior consent of Lender.

 

4.2.4          Change in Business.
Borrower shall not enter into any line of business other than the ownership and operation of the Property. Borrower shall not change
the current use of the Property in any material respect.

 

4.2.5          Debt Cancellation.
Borrower shall not cancel or otherwise forgive or release any claim or debt (other than the termination of Leases in accordance
herewith) owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business.

 

4.2.6          Affiliate Transactions.
Borrower shall not enter into, or be a party to, any transaction with an Affiliate of Borrower or any of the partners, members
or shareholders, as applicable, of Borrower except in the ordinary course of business and on terms which are fully disclosed to
Lender in advance and are no less favorable to Borrower or such Affiliate than would be obtained in a comparable arm’s-length
transaction with an unrelated third party.

 

4.2.7          Zoning. Borrower
shall not initiate or consent to any zoning reclassification of any portion of the Property or seek any variance under any existing
zoning ordinance or use or permit the use of any portion of the Property in any manner that could result in such use becoming a
non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation, without the prior consent
of Lender.

 

4.2.8          Assets. Borrower
shall not purchase or own any property other than the Property and any property necessary or incidental for the operation of the
Property.

 

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4.2.9          No Joint Assessment.
Borrower shall not suffer, permit or initiate the joint assessment of the Property (i) with any other real property constituting
a tax lot separate from the Property, and (ii) with any portion of the Property which may be deemed to constitute personal
property, or any other procedure whereby the Lien of any taxes which may be levied against such personal property shall be assessed
or levied or charged to the Property.

 

4.2.10          Principal Place
of Business. Borrower shall not change its principal place of business from the address set forth on the first page of this
Agreement without first giving Lender thirty (30) days prior written notice.

 

4.2.11          Change of Name,
Identity or Structure. Borrower shall not change Borrower’s name, identity (including its trade name or names) or, if
not an individual, Borrower’s corporate, partnership or other structure without notifying Lender of such change in writing
at least thirty (30) days prior to the effective date of such change and without first obtaining the prior written consent
of Lender. Borrower shall execute and deliver to Lender, prior to or contemporaneously with the effective date of any such change,
any financing statement or financing statement change required by Lender to establish or maintain the validity, perfection and
priority of the security interest granted herein. At the request of Lender, Borrower shall execute a certificate in form satisfactory
to Lender listing the trade names under which Borrower intends to operate the Property, and representing and warranting that Borrower
does business under no other trade name with respect to the Property.

 

4.2.12          Special Purpose.
Without in any way limiting the provisions of this Article 4, Borrower shall not take or permit any action that would
result in Borrower or any SPC Party not being in compliance with the representations, warranties and covenants set forth in Section 3.1.24.

 

4.2.13          ERISA.

 

(a)         Borrower
shall not engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise
by Lender of any of its rights under the Note, this Agreement or the other Loan Documents) to be a non-exempt (under a statutory
or administrative class exemption) prohibited transaction under the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”).

 

(b)         Borrower
shall deliver to Lender such certifications or other evidence from time to time throughout the Term, as requested by Lender
in its sole discretion, that (A) Borrower is not and does not maintain an “employee benefit plan” as defined
in Section 3(32) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the
meaning of Section 3(32) of ERISA; (B) Borrower is not subject to state statutes regulating investments and
fiduciary obligations with respect to governmental plans; and (C) one or more of the following circumstances is
true:

 

(i)         Equity interests
in Borrower are publicly offered securities, within the meaning of 29 C.F.R §2510.3-101(b)(2);

 

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(ii)        Less than
twenty-five percent (25%) of each outstanding class of equity interests in Borrower are held by “benefit plan investors”
within the meaning of 29 C.F.R §2510.3-101(f)(2);

 

(iii)       Borrower
qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R
§2510.3-101(c) or (e); or

 

(iv)       The assets
of Borrower are not otherwise “plan assets” of one or more “employee benefit plans” (as defined in Section 3(3)
of ERISA) subject to Title I of ERISA, within the meaning of 29 C.F.R. §2510.3-101.

 

4.2.14          Intentionally
Omitted.

 

4.2.15          Embargoed Person.
At all times throughout the term of the Loan, including after giving effect to any Transfers permitted pursuant to the Loan Documents,
(a) none of the funds or other assets of Borrower or Guarantor shall constitute property of, or shall be beneficially owned,
directly or indirectly, by any Person subject to trade restrictions under United States law, including, but not limited to, the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act,
50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder, with the result that the
investment in Borrower or Guarantor, as applicable (whether directly or indirectly), would be prohibited by law (each, an “Embargoed
Person”), or the Loan made by Lender would be in violation of law, (b) no Embargoed Person shall have any interest
of any nature whatsoever in Borrower or Guarantor, as applicable, with the result that the investment in Borrower or Guarantor,
as applicable (whether directly or indirectly), would be prohibited by law or the Loan would be in violation of law, and (c) none
of the funds of Borrower or Guarantor, as applicable, shall be derived from any unlawful activity with the result that the investment
in Borrower or Guarantor, as applicable (whether directly or indirectly), would be prohibited by law or the Loan would be in violation
of law.

 

4.2.16          Operating Agreements.
Borrower shall at all times comply in all material respects with all Operating Agreements. Borrower agrees that without the prior
written consent of Lender, Borrower will not amend, modify or terminate any of the Operating Agreements.

 

ARTICLE
5

INSURANCE, CASUALTY AND CONDEMNATION

 

Section 5.1          Insurance.

 

5.1.1          Insurance Policies.

 

(a)         Borrower,
at its sole cost and expense, shall obtain and maintain during the entire Term, or cause to be maintained, insurance policies for
Borrower and the Property providing at least the following coverages:

 

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(i)         Property insurance
against loss or damage by fire, lightning, riot and civil commotion, vandalism, malicious mischief, burglary and theft, terrorism
and such other perils as are normally included in a “special form” policy (formerly known as an “all-risk”
policy), (A) in an amount equal to one hundred percent (100%) of the “Full Replacement Cost” of the Property,
which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of excavations, foundations, underground
utilities and footings) with a waiver of depreciation and a deductible in an amount acceptable to Lender; (B) containing an agreed
amount endorsement with respect to the Improvements and personal property at the Property waiving all co-insurance provisions;
and (C) containing an “Ordinance or Law Coverage” or “Enforcement” endorsement if any of the Improvements
or the use of the Property shall at any time constitute legal non-conforming structures or uses, and compensating for loss of value
or property resulting from operation of law and the cost of demolition and the increased cost of construction in amounts as required
by Lender. In addition, Borrower shall obtain: (y) if any portion of the Improvements is currently or at any time in the future
located in a federally designated “special flood hazard area”, flood insurance in an amount equal to the maximum amount
of such insurance available under the National Flood Insurance Program, or such greater amount as Lender shall require; and (z) earthquake
insurance in an amount equal to one and one-half times (1.5x) the probable maximum loss of the Property as determined by Lender
in its sole discretion and in form and substance satisfactory to Lender in the event the Property is located in an area with a
high degree of seismic activity, provided that the insurance pursuant to clauses (y) and (z) hereof shall be on terms
consistent with the comprehensive all risk insurance policy required under this subsection (i);

 

(ii)        commercial
general liability insurance, including a broad form comprehensive general liability endorsement and coverages against claims
for personal injury, bodily injury, death or property damage occurring upon, in or about the Property, such insurance
(A) to be on the so-called “occurrence” form and containing minimum limits per occurrence of One Million and
No/100 Dollars ($1,000,000.00), with a combined limit per policy year, excluding umbrella coverage, of not less than Two
Million and No/100 Dollars ($2,000,000.00); (B) to continue at not less than the aforesaid limit until required to be
changed by Lender by reason of changed economic conditions making such protection inadequate; and (C) to cover at least
the following hazards: (1) premises and operations; (2) products and completed operations on an “if
any” basis; (3) independent contractors; (4) blanket contractual liability for all legal contracts; and
(5) contractual liability covering the indemnities contained in Article 9 of the Mortgage to the extent the
same is available;

 

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(iii)       rent loss
and/or business interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered
by the insurance provided for in subsection (i) above and Section 5.1.1(h) below; (C) covering a period of
restoration of twelve (12) months and containing an extended period of indemnity endorsement which provides that after the physical
loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured until such income
either returns to the same level it was at prior to the loss, or the expiration of one hundred eighty (180) days from the date
that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy
may expire prior to the end of such period; (D) in an amount equal to one hundred percent (100%) of the projected Gross
Revenue from the Property for a period of twelve (12) months from the date that the Property is repaired or replaced and operations
are resumed; and (E) covering the actual loss sustained during the restoration. The amount of such business income insurance shall
be determined prior to the date hereof and at least once each year thereafter based on Borrower’s reasonable estimate of
the Gross Revenue from the Property for the succeeding twelve (12) month period. All proceeds payable to Lender pursuant to this
subsection shall be held by Lender and shall be applied to the Obligations secured by the Loan Documents from time to time due
and payable hereunder and under the Note; provided, however, that nothing herein contained shall be deemed to relieve Borrower
of its Obligations to pay the Debt on the respective dates of payment provided for in the Note and the other Loan Documents except
to the extent such amounts are actually paid out of the proceeds of such business income insurance;

 

(iv)       at all times
during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the Property
coverage form does not otherwise apply, (A) owner’s contingent or protective liability insurance covering claims not
covered by or under the terms or provisions of the above-mentioned commercial general liability insurance policy; and (B) the
insurance provided for in subsection (i) above written in a so-called builder’s risk completed value form (1) on
a non-reporting basis, (2) against all risks insured against pursuant to subsection (i) above, (3) including permission
to occupy the Property, and (4) with an agreed amount endorsement waiving co-insurance provisions;

 

(v)        workers’
compensation, subject to the statutory limits of the state in which the Property is located, and employer’s liability
insurance with limits which are required from time to time by Lender in respect of any work or operations on or about the
Property, or in connection with the Property or its operation (if applicable);

 

(vi)       comprehensive
boiler and machinery insurance, if applicable, in amounts as shall be reasonably required by Lender on terms consistent with the
commercial property insurance policy required under subsection (i) above;

 

(vii)      umbrella
liability insurance in addition to primary coverage in an amount not less than Ten Million and No/100 Dollars ($10,000,000.00)
per occurrence on terms consistent with the commercial general liability insurance policy required under subsection (ii) above
and (viii) below;

 

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(viii)     motor vehicle
liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence,
including umbrella coverage, with limits which are required from time to time by Lender;

 

(ix)        windstorm
insurance in an amount equal one hundred percent (100%) of the Full Replacement Cost of the Property, with a deductible acceptable
to Lender;

 

(x)         insurance
against employee dishonesty in an amount not less than one (1) month of Gross Revenue from the Property and with a deductible
not greater than Ten Thousand and No/100 Dollars ($10,000.00); and

 

(xi)        upon sixty (60)
days’ notice, such other reasonable insurance and in such reasonable amounts as Lender from time to time may reasonably request
against such other insurable hazards which at the time are commonly insured against for properties similar to the Property located
in or around the region in which the Property is located.

 

(b)         All insurance
provided for in Section 5.1.1(a) shall be obtained under valid and enforceable policies (collectively, the “Policies”
or in the singular, the “Policy”) and shall be subject to the approval of Lender as to form and substance, including
insurance companies, amounts, deductibles, loss payees and insureds. Not less than ten (10) days prior to the expiration dates
of the Policies theretofore furnished to Lender, certificates of insurance evidencing the Policies (and, upon the written request
of Lender, copies of such Policies) accompanied by evidence satisfactory to Lender of payment of the premiums then due thereunder
(the “Insurance Premiums”), shall be delivered by Borrower to Lender.

 

(c)         Any blanket
insurance Policy shall specifically allocate to the Property the amount of coverage from time to time required hereunder and shall
otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the provisions of
Section 5.1.1(a).

 

(d)         All Policies
of insurance provided for or contemplated by Section 5.1.1(a), except for the Policy referenced in Section 5.1.1(a)(v),
shall name Borrower as the insured and Lender and its successors and/or assigns as the additional insured, as its interests may
appear, and in the case of property damage, boiler and machinery, windstorm, flood and earthquake insurance, shall contain a so-called
New York standard non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable
to Lender. Additionally, if Borrower obtains property insurance coverage in addition to or in excess of that required by Section 5.1.1(a)(i),
then such insurance policies shall also contain a so-called New York standard non-contributing mortgagee clause in favor of
Lender providing that the loss thereunder shall be payable to Lender.

 

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(e)         All Policies
of insurance provided for in Section 5.1.1(a), except for the Policies referenced in Section 5.1.1(a)(v)
and (a)(viii), shall contain clauses or endorsements to the effect that:

 

(i)         no act or
negligence of Borrower, or anyone acting for Borrower, or of any Tenant or other occupant, or failure to comply with the provisions
of any Policy, which might otherwise result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity
or enforceability of the insurance insofar as Lender is concerned;

 

(ii)        the Policy
shall not be canceled or terminated without at least thirty (30) days’ written notice to Lender and any other party
named therein as an additional insured and shall not be materially changed (other than to increase the coverage provided thereby)
without such a thirty (30) day notice;

 

(iii)       Lender shall
not be liable for any Insurance Premiums thereon or subject to any assessments thereunder; and

 

(iv)       the issuers
thereof shall give notice to Lender if the Policies have not been renewed fifteen (15) days prior to its expiration; and

 

(f)         If at any
time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall
have the right, without notice to Borrower, to take such action as Lender deems necessary to protect its interest in the Property,
including the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate and all premiums incurred
by Lender in connection with such action or in obtaining such insurance and keeping it in effect (including, without limitation,
reasonable attorney’s fees) shall be paid by Borrower to Lender upon demand and until paid shall be secured by the Mortgage
and shall bear interest at the Default Rate.

 

(g)         In
the event of foreclosure of the Mortgage or other transfer of title to the Property in extinguishment in whole or in part of
the Obligations, all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force
concerning the Property and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or
Lender or other transferee in the event of such other transfer of title.

 

(h)         The property
insurance and rental loss and/or business interruption insurance required under Sections 5.1.1(a)(i), (ii) and (iii)
above shall cover perils of terrorism and acts of terrorism and Borrower shall maintain property insurance and rental loss and/or
business interruption insurance for loss resulting from perils and acts of terrorism on terms (including amounts) consistent with
those required under Sections 5.1.1(a)(i), (ii), and (iii) above at all times during the term of
the Loan.

 

(i)         The property
and loss of rents/business interruption insurance policies required in this Section 5.1 shall not exclude “Acts of Terrorism”
as defined in the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program Reauthorization Act
of 2007.

 

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5.1.2          Insurance
Company. All Policies required pursuant to Section 5.1.1 (i) shall be issued by companies authorized to
do business in the state where the Property is located, with a financial strength and claims paying ability rating of at
least “A-:VIII” from A.M. Best Company or “A” from Moody’s Investors Service, Inc. or
“A-” from Standard & Poor’s Ratings Service; (ii) shall, with respect to all property insurance
policies, name Lender and its successors and/or assigns as their interest may appear as Lender and Mortgagee; (iii) shall,
with respect to all property insurance policies and rental loss and/or business interruption insurance policies, contain a
Standard Mortgagee Clause and a Lender’s Loss Payable Endorsement, or their equivalents, naming Lender and its
successors and/or assigns as the person to whom all payments made by such insurance company shall be paid; (iv) shall,
with respect to all liability policies, name Lender and its successors and/or assigns as an additional insured;
(v) shall contain a waiver of subrogation against Lender; (vi) shall contain such provisions as Lender deems
reasonably necessary or desirable to protect its interest including endorsements providing (A) that neither Borrower,
Lender nor any other party shall be a co-insurer under said Policies, (B) that Lender shall receive at least
thirty (30) days prior written notice of any modification, reduction or cancellation, and (C) for a deductible per
loss of an amount not more than that which is customarily maintained by prudent owners of properties with a standard of
operation and maintenance comparable to and in the general vicinity of the Property, but in no event in excess of an amount
reasonably acceptable to Lender; and (vii) shall be satisfactory in form and substance to Lender and shall be approved
by Lender as to amounts, form, risk coverage, deductibles, loss payees and insureds. No property or rental loss/business
interruption insurance policy required hereunder shall include any so called “terrorist exclusion” or similar
exclusion or exception to insurance coverage relating to the acts of terrorist groups or individuals. Certified copies of the
Policies shall be delivered to Lender, 1601 Washington Avenue, Suite 800, Miami Beach, Florida 33139, on the date hereof with
respect to the current Policies and within thirty (30) days after the effective date thereof with respect to all renewal
Policies. Borrower shall pay the Insurance Premiums annually in advance as the same become due and payable and shall furnish
to Lender evidence of the renewal of each of the Policies with receipts for the payment of the Insurance Premiums or other
evidence of such payment reasonably satisfactory to Lender (provided, however, that Borrower shall not be required to pay
such Insurance Premiums nor furnish such evidence of payment to Lender in the event that the amounts required to pay such
Insurance Premiums have been deposited into the Insurance Account pursuant to Section 6.4 hereof). In addition to
the insurance coverages described in Section 5.1.1 above, Borrower shall obtain such other insurance as may from
time to time be reasonably required by Lender in order to protect its interests. Within thirty (30) days after request
by Lender, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be reasonably requested
by Lender, taking into consideration changes in the value of money over time, changes in liability laws, changes in prudent
customs and practices, and the like.

 

Section 5.2          Casualty.

 

    	- 58 -

    	 

    

 

If the Property shall be
damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall give prompt
notice of such damage to Lender and shall promptly commence and diligently prosecute the completion of the Restoration of the Property
as nearly as possible to the condition the Property was in immediately prior to such Casualty, with such alterations as may be
reasonably approved by Lender and otherwise in accordance with Section 5.4. Borrower shall pay all costs of such Restoration
whether or not such costs are covered by insurance. Lender may, but shall not be obligated to make proof of loss if not made promptly
by Borrower. In addition, Lender may participate in any settlement discussions with any insurance companies (and shall approve
any final settlement) with respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration are equal
to or greater than the Restoration Threshold and Borrower shall deliver to Lender all instruments required by Lender to permit
such participation. Any Insurance Proceeds in connection with any Casualty (whether or not Lender elects to settle and adjust the
claim or Borrower settles such claim) shall be due and payable solely to Lender and held by Lender in accordance with the terms
of this Agreement. In the event Borrower or any party other than Lender is a payee on any check representing Insurance Proceeds
with respect to any Casualty, Borrower shall immediately endorse, and cause all such third parties to endorse, such check payable
to the order of Lender. Borrower hereby irrevocably appoints Lender as its attorney-in-fact, coupled with an interest, to endorse
any such check payable to the order of Lender. The expenses incurred by Lender in the adjustment and collection of Insurance Proceeds
shall become part of the Obligations, shall be secured by the Loan Documents and shall be reimbursed by Borrower to Lender upon
demand. Borrower hereby releases Lender from any and all liability with respect to the settlement and adjustment by Lender of any
claims in respect of any Casualty.

 

Section 5.3          Condemnation.

 

Borrower shall
promptly give Lender notice of the actual or threatened commencement of any proceeding for the Condemnation of all or any
portion of the Property and shall deliver to Lender copies of any and all papers served in connection with such proceedings.
Lender may participate in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments
requested by it to permit such participation. Borrower shall, at its expense, diligently prosecute any such proceedings, and
shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such
proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including,
but not limited to, any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower shall continue
to pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement and the Debt shall
not be reduced until any Award shall have been actually received and applied by Lender, after the deduction of expenses of
collection, to the reduction or discharge of the Debt. Lender shall not be limited to the interest paid on the Award by the
condemning authority but shall be entitled to receive out of the Award interest at the rate or rates provided herein or in
the Note. If the Property or any portion thereof is taken by a condemning authority, Borrower shall promptly commence and
diligently prosecute the Restoration of the Property and otherwise comply with the provisions of Section 5.4,
whether or not an Award is available. If the Property is sold, through foreclosure or otherwise, prior to the receipt by
Lender of the Award, Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought,
recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt.

 

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Section 5.4          Restoration.

 

The following provisions
shall apply in connection with the Restoration:

 

(a)         If the Net
Proceeds shall be less than the Restoration Threshold and the costs of completing the Restoration shall be less than the Restoration
Threshold, the Net Proceeds will be disbursed by Lender to Borrower upon receipt, provided that all of the conditions set forth
in Section 5.4(b)(i) are met and Borrower delivers to Lender a written undertaking to expeditiously commence and to
satisfactorily complete with due diligence the Restoration in accordance with the terms of this Agreement.

 

(b)         If the Net
Proceeds are equal to or greater than the Restoration Threshold or the costs of completing the Restoration is equal to or greater
than the Restoration Threshold, the Net Proceeds will be held by Lender and Lender shall make the Net Proceeds available for the
Restoration in accordance with the provisions of this Section 5.4. The term “Net Proceeds” for purposes
of this Section 5.4 shall mean: (i) the net amount of all insurance proceeds received by Lender pursuant to Section 5.1.1(a)(i),
(iv), and (vi) and Section 5.1.1(h) as a result of such damage or destruction, after deduction of
its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance
Proceeds”), or (ii) the net amount of the Award, after deduction of its reasonable costs and expenses (including,
but not limited to, reasonable counsel fees), if any, in collecting same (“Condemnation Proceeds”), whichever
the case may be.

 

(i)         The Net Proceeds
shall be made available to Borrower for Restoration upon the approval of Lender in its sole discretion that the following conditions
are met:

 

(A)         no Event
of Default shall have occurred and be continuing;

 

(B)         (1) in
the event the Net Proceeds are Insurance Proceeds, less than twenty-five percent (25%) of the total floor area of the Improvements
on the Property has been damaged, destroyed or rendered unusable as a result of such Casualty or (2) in the event the Net
Proceeds are Condemnation Proceeds, less than ten percent (10%) of the land constituting the Property is taken, and such
land is located along the perimeter or periphery of the Property, and no portion of the Improvements is located on such land;

 

(C)         Leases demising
in the aggregate a percentage amount equal to or greater than seventy-five percent (75%) of the total rentable space in the
Property which has been demised under executed and delivered Leases in effect as of the date of the occurrence of such Casualty
or Condemnation, whichever the case may be, shall remain in full force and effect during and after the completion of the Restoration
without abatement of rent beyond the time required for Restoration, notwithstanding the occurrence of any such Casualty or Condemnation,
whichever the case may be, and will make all necessary repairs and restorations thereto at their sole cost and expense;

 

    	- 60 -

    	 

    

 

(D)         Borrower
shall commence the Restoration as soon as reasonably practicable (but in no event later than sixty (60) days after such Casualty
or Condemnation, whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion;

 

(E)         Lender shall
be satisfied that any operating deficits, including all scheduled payments of principal and interest under the Note, which will
be incurred with respect to the Property as a result of the occurrence of any such Casualty or Condemnation, whichever the case
may be, will be covered out of (1) the Net Proceeds, (2) the insurance coverage referred to in Section 5.1.1(a)(iii),
if applicable, or (3) by other funds of Borrower;

 

(F)         Lender shall
be satisfied that the Restoration will be completed on or before the earliest to occur of (1) the date six (6) months
prior to the Stated Maturity Date, (2) the earliest date required for such completion under the terms of any Lease, (3) such
time as may be required under applicable Legal Requirements or (4) the expiration of the insurance coverage referred to in
Section 5.1.1(a)(iii);

 

(G)         the Property
and the use thereof after the Restoration will be in compliance with and permitted under all applicable Legal Requirements;

 

(H)         the Restoration
shall be done and completed by Borrower in an expeditious and diligent fashion and in compliance with all applicable Legal Requirements;

 

(I)         such Casualty
or Condemnation, as applicable, does not result in the loss of access to the Property or the related Improvements;

 

(J)         the Restoration
DSCR, after giving effect to the Restoration, shall be equal to or greater than 1.25 to 1.0;

 

(K)         the Loan
to Value Ratio after giving effect to the Restoration, shall be equal to or less than seventy-five percent (75%);

 

(L)         Borrower
shall deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s architect or
engineer stating the entire cost of completing the Restoration, which budget shall be acceptable to Lender; and

 

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(M)         the Net
Proceeds together with any cash or cash equivalent deposited by Borrower with Lender are sufficient in Lender’s discretion
to cover the cost of the Restoration.

 

(ii)        The Net Proceeds
shall be held by Lender in the Casualty and Condemnation Account and, until disbursed in accordance with the provisions of this
Section 5.4(b), shall constitute additional security for the Debt and other obligations under the Loan Documents. The
Net Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of the Restoration,
upon receipt of evidence satisfactory to Lender that (A) all materials installed and work and labor performed (except to the
extent that they are to be paid for out of the requested disbursement) in connection with the Restoration have been paid for in
full, and (B) there exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention
to file same, or any other liens or encumbrances of any nature whatsoever on the Property which have not either been fully bonded
to the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by the
title company issuing the Title Insurance Policy.

 

(iii)       All plans
and specifications required in connection with the Restoration shall be subject to the prior approval of Lender and an independent
consulting engineer selected by Lender (the “Casualty Consultant”). Lender shall have the use of the plans and
specifications and all permits, licenses and approvals required or obtained in connection with the Restoration. The identity of
the contractors, subcontractors and materialmen engaged in the Restoration, as well as the contracts under which they have been
engaged, shall be subject to the approval of Lender and the Casualty Consultant. All costs and expenses incurred by Lender in connection
with recovering, holding and advancing the Net Proceeds for the Restoration including, without limitation, reasonable attorneys’
fees and disbursements and the Casualty Consultant’s fees and disbursements, shall be paid by Borrower.

 

(iv)       In
no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs
actually incurred from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant,
less the Casualty Retainage. The term “Casualty Retainage” shall mean, as to each contractor,
subcontractor or materialman engaged in the Restoration, an amount equal to ten percent (10%) of the costs actually
incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until the Restoration has
been completed. The Casualty Retainage shall in no event, and notwithstanding anything to the contrary set forth above in
this Section 5.4(b), be less than the amount actually held back by Borrower from contractors, subcontractors and
materialmen engaged in the Restoration. The Casualty Retainage shall not be released until the Casualty Consultant certifies
to Lender that the Restoration has been completed in accordance with the provisions of this Section 5.4(b) and
that all approvals necessary for the re-occupancy and use of the Property have been obtained from all appropriate
Governmental Authorities,

 

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and Lender receives evidence satisfactory to Lender that the costs of the Restoration have been
paid in full or will be paid in full out of the Casualty Retainage; provided, however, that Lender will release the portion
of the Casualty Retainage being held with respect to any contractor, subcontractor or materialman engaged in the Restoration
as of the date upon which (i) the Casualty Consultant certifies to Lender that such contractor, subcontractor or
materialman has satisfactorily completed all work and has supplied all materials in accordance with the provisions of such
contractor’s, subcontractor’s or materialman’s contract, (ii) the contractor, subcontractor
or materialman delivers the lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or
materialman as may be reasonably requested by Lender or by the title company issuing the Title Insurance Policy, and
(iii) Lender receives an endorsement to the Title Insurance Policy insuring the continued priority of the Lien of the
Mortgage and evidence of payment of any premium payable for such endorsement. If required by Lender, the release of any such
portion of the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance
bond with respect to the contractor, subcontractor or materialman.

 

(v)         Lender shall
not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month.

 

(vi)        If at any
time the Net Proceeds or the undisbursed balance thereof shall not, in the opinion of Lender in consultation with the Casualty
Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to be incurred
in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net Proceeds Deficiency”)
with Lender (for deposit into the Casualty and Condemnation Account) before any further disbursement of the Net Proceeds shall
be made. The Net Proceeds Deficiency deposited with Lender shall be deposited by Lender into the Casualty and Condemnation Account
and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions applicable to the
disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 5.4(b) shall constitute additional
security for the Obligations.

 

(vii)       The
excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender
after the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions
of this Section 5.4(b), and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in
connection with the Restoration have been paid in full, shall be remitted by Lender to Borrower, provided no Event of Default
shall have occurred and shall be continuing.

 

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(c)         All Net
Proceeds not required (i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds
pursuant to Section 5.4(b)(vii), may be retained and applied by Lender in accordance with Section 2.4.4
hereof toward the payment of the Debt whether or not then due and payable in such order, priority and proportions as Lender in
its sole discretion shall deem proper, or, at the discretion of Lender, the same may be paid, either in whole or in part, to Borrower
for such purposes as Lender shall approve, in its discretion. Additionally, throughout the term of the Loan, if a Default or an
Event of Default has occurred, then the Borrower shall pay to Lender, with respect to any payment of the Debt pursuant to this
Section 5.4(c), an additional amount equal to the Prepayment Fee; provided, however, that if a Default or an Event
of Default has not occurred, then the Prepayment Fee shall not be payable.

 

(d)         In the event
of foreclosure of the Mortgage, or other transfer of title to the Property in extinguishment in whole or in part of the Debt, all
right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force concerning the Property,
and all proceeds payable thereunder, shall thereupon vest in the purchaser at such foreclosure, or Lender or other transferee in
the event of such other transfer of title.

 

(e)         Notwithstanding
anything to the contrary contained herein, if in connection with a Casualty any insurance company makes a payment under a property
insurance Policy that Borrower proposes be treated as business or rental interruption insurance, then, notwithstanding any designation
(or lack of designation) by the insurance company as to the purpose of such payment, as between Lender and Borrower, such payment
shall not be treated as business or rental interruption Insurance Proceeds unless Borrower has demonstrated to Lender’s satisfaction
that the remaining Net Proceeds that have been received from the property insurance companies are sufficient to pay 100% of the
cost of the Restoration or, if such Net Proceeds are to be applied to repay the Obligations in accordance with the terms hereof,
that such remaining Net Proceeds will be sufficient to satisfy the Obligations in full.

 

(f)         Notwithstanding
the foregoing provisions of this Section 5.4, if the Loan is included in a REMIC Trust and, immediately following a
release of any portion of the real property relating to the Property following a Casualty or Condemnation, the ratio of the
unpaid principal balance of the Loan to the value of the remaining real property relating to the Property is greater than
125% (such value to be determined, in Lender’s sole discretion, by any commercially reasonable method permitted to a
REMIC Trust, based solely on real property and excluding personal property and going concern value, if any), Lender shall not
be required to release any Net Proceeds for Restoration of the Property, and the principal balance of the Loan must be paid
down by Borrower by the greater of (A) such amount as may be required such that the Securitization will not fail to
maintain its status as a REMIC Trust as a result of the related release of lien or (B) least of the following amounts:
(i) the Net Proceeds, (ii) the fair market value of the released Property at the time of the release, or
(iii) an amount such that the loan-to-value ratio of the Loan (as so determined by Lender) does not increase after the
release.

 

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ARTICLE
6

CASH MANAGEMENT AND RESERVE FUNDS

 

Section 6.1          Cash Management
Arrangements.

 

Borrower shall cause all
Rents to be transmitted directly by all tenants of the Property into a trust account (the “Clearing Account”)
established and maintained by Borrower at the Clearing Bank as more fully described in the Clearing Account Agreement. Without
in any way limiting the foregoing, if Borrower or Manager receive any Gross Revenue from the Property, then (i) such amounts
shall be deemed to be collateral for the Obligations and shall be held in trust for the benefit, and as the property, of Lender,
(ii) such amounts shall not be commingled with any other funds or property of Borrower or Manager, and (iii) Borrower
or Manager shall deposit such amounts in the Clearing Account within one (1) Business Day of receipt. Funds deposited into
the Clearing Account shall be swept by the Clearing Bank on a daily basis into an Eligible Account at the Cash Management Bank
controlled by Lender (the “Cash Management Account”) and applied and disbursed in accordance with this Agreement
and the Cash Management Agreement. Funds in the Cash Management Account shall be invested in Permitted Investments, as more particularly
set forth in the Cash Management Agreement. Lender may also establish subaccounts of the Cash Management Account which shall at
all times be Eligible Accounts (and may be ledger or book entry accounts and not actual accounts) (such subaccounts are referred
to herein as “Accounts”). The Cash Management Account and all other Accounts will be under the sole control
and dominion of Lender, and Borrower shall have no right of withdrawal therefrom. Borrower shall pay for all expenses of opening
and maintaining all of the above accounts.

 

Section 6.2          Intentionally
Omitted.

 

Section 6.3          Tax Funds.

 

6.3.1          Deposits
of Tax Funds. Borrower shall deposit with Lender (i) an amount reasonably determined by Lender on the Closing
Date, and (ii) on each Monthly Payment Date, an amount equal to one-twelfth of the Taxes that Lender estimates will be
payable during the next ensuing twelve (12) months, in order to accumulate sufficient funds to pay all such Taxes at
least thirty (30) days prior to their respective due dates, which amounts shall be transferred into an Account
established by or on behalf of Lender to hold such funds (the “Tax Account”). Amounts deposited from time
to time into the Tax Account pursuant to this Section 6.3.1 are referred to herein as the “Tax
Funds”. If at any time Lender reasonably determines that the Tax Funds will not be sufficient to pay the Taxes,
Lender shall notify Borrower of such determination and the monthly deposits for Taxes shall be increased by the amount that
Lender estimates is sufficient to make up the deficiency by the date that is at least thirty (30) days prior to the
respective due dates for the Taxes; provided, that if Borrower receives notice of any deficiency after the date that is
thirty (30) days prior to the date that Taxes are due, Borrower will deposit with or on behalf of Lender such amount within
one (1) Business Day after its receipt of such notice.

 

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6.3.2          Release of Tax
Funds. Provided no Event of Default shall exist and remain uncured, Lender shall direct Servicer to apply the Tax Funds in
the Tax Account to payments of Taxes, provided Borrower shall furnish Lender with all bills, invoices and statements for the Taxes
for which such funds are required at least thirty (30) days prior to the date on which such charges first become payable.
In making any payment relating to Taxes, Lender may do so according to any bill, statement or estimate procured from the appropriate
public office (with respect to Taxes) without inquiry into the accuracy of such bill, statement or estimate or into the validity
of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount of the Tax Funds shall exceed the amounts
due for Taxes, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments
to be made to the Tax Funds. Any Tax Funds remaining in the Tax Account after the Obligations have been paid in full shall be returned
to Borrower.

 

Section 6.4          Insurance
Funds.

 

6.4.1          Deposits of Insurance
Funds. Borrower shall deposit with Lender (i) an amount reasonably determined by Lender on the Closing Date, and (ii) on
each Monthly Payment Date, an amount equal to one-twelfth of the Insurance Premiums that Lender estimates will be payable for the
renewal of the coverage afforded by the Policies upon the expiration thereof, in order to accumulate sufficient funds to pay all
such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies, which amounts shall be transferred
into an Account established by or on behalf of Lender to hold such funds (the “Insurance Account”). Amounts
deposited from time to time into the Insurance Account pursuant to this Section 6.4.1 are referred to herein as the
“Insurance Funds”. If at any time Lender reasonably determines that the Insurance Funds will not be sufficient
to pay the Insurance Premiums, Lender shall notify Borrower of such determination and the monthly deposits for Insurance Premiums
shall be increased by the amount that Lender estimates is sufficient to make up the deficiency by the date that is at least thirty (30)
days prior to the expiration of the Policies; provided, that if Borrower receives notice of any deficiency after the date that
is thirty (30) days prior to the expiration of the Policies, Borrower will deposit with or on behalf of Lender such amount within
one (1) Business Day after its receipt of such notice.

 

6.4.2          Release
of Insurance Funds. Provided no Event of Default shall exist and remain uncured, Lender shall direct Servicer to apply
the Insurance Funds in the Insurance Account to payment of Insurance Premiums, provided Borrower shall furnish Lender with
all bills, invoices and statements for the Insurance Premiums for which such funds are required at least thirty (30)
days prior to the date on which such charges first become payable. In making any payment relating to Insurance Premiums,
Lender may do so according to any bill, statement or estimate procured from the insurer or its agent, without inquiry into
the accuracy of such bill, statement or estimate. If the amount of the Insurance Funds shall exceed the amounts due for
Insurance Premiums, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future
payments to be made to the Insurance Funds. Any Insurance Funds remaining in the Insurance Account after the Obligations have
been paid in full shall be returned to Borrower.

 

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Section 6.5          Capital
Expenditure Funds.

 

6.5.1          Deposits of Capital
Expenditure Funds. Borrower shall deposit with Lender on each Monthly Payment Date, the amount of $1,330, for annual Capital
Expenditures, which amounts shall be transferred into an Account established by or on behalf of Lender to hold such funds (the
“Capital Expenditure Account”). Amounts deposited from time to time into the Capital Expenditure Account pursuant
to this Section 6.5.1 are referred to herein as the “Capital Expenditure Funds”. Lender may reassess
its estimate of the amount necessary for Capital Expenditures from time to time and may require Borrower to increase the monthly
deposits required pursuant to this Section 6.5.1 upon thirty (30) days’ notice to Borrower if Lender determines
in its reasonable discretion that an increase is necessary to maintain proper operation of the Property.

 

6.5.2          Release of Capital
Expenditure Funds.

 

(a)         Lender
shall direct Servicer to disburse the Capital Expenditure Funds to Borrower out of the Capital Expenditure Account upon
satisfaction by Borrower of each of the following conditions with respect to each such disbursement: (i) such
disbursement is for an Approved Capital Expenditure; (ii) Borrower shall submit a request for payment to Lender at least
ten (10) days prior to the date on which Borrower requests such payment be made, which request shall specify the
Approved Capital Expenditures to be paid; (iii) on the date such request is received by Lender and on the date such
payment is to be made, no Event of Default shall exist and remain uncured, and (iv) Lender shall have received
(1) an Officer’s Certificate from Borrower (A) stating that the items to be funded by the requested
disbursement are Approved Capital Expenditures, and a description thereof, (B) stating that all Approved Capital
Expenditures to be funded by the requested disbursement have been completed in a good and workmanlike manner and in
accordance with all applicable Legal Requirements, (C) identifying each Person that supplied materials or labor in
connection with the Approved Capital Expenditures to be funded by the requested disbursement, (D) stating that each
such Person has been paid in full or will be paid in full upon such disbursement, (E) stating that the Approved Capital
Expenditures to be funded have not been the subject of a previous disbursement, (F) stating that all previous
disbursements of Capital Expenditure Funds have been used to pay the previously identified Approved Capital Expenditures, and
(G) stating that all outstanding trade payables (other than those to be paid from the requested disbursement or those
constituting Permitted Indebtedness) have been paid in full, (2) a copy of any license, permit or other approval
required by any Governmental Authority in connection with the Approved Capital Expenditures and not previously delivered to
Lender, (3) lien waivers or other evidence of payment satisfactory to Lender, (4) at Lender’s option, a title
search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously
approved by Lender, and (5) such other evidence as Lender shall reasonably request to demonstrate that the Approved
Capital Expenditures to be funded by the requested disbursement have been completed and are paid for or will be paid upon
such disbursement to Borrower. Lender shall not be required to disburse Capital Expenditure Funds more frequently than once
each calendar month, and Lender shall not be required to make disbursements from the Capital Expenditure Account unless such
requested disbursement is in an amount greater than $10,000 (or a lesser amount if the total amount in the Capital
Expenditure Account is less than $10,000, in which case only one disbursement of the amount remaining in the account shall be
made).

 

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(b)         Nothing
in this Section 6.5.2 shall (i) make Lender responsible for performing or completing any Capital Expenditures
Work; (ii) require Lender to expend funds in addition to the Capital Expenditure Funds to complete any Capital Expenditures
Work; (iii) obligate Lender to proceed with any Capital Expenditures Work; or (iv) obligate Lender to demand from Borrower
additional sums to complete any Capital Expenditures Work.

 

(c)         Borrower
shall permit Lender and Lender’s agents and representatives (including Lender’s engineer, architect or inspector) or
third parties to enter onto the Property during normal business hours (subject to the rights of Tenants under their Leases) to
inspect the progress of any Capital Expenditures Work and all materials being used in connection therewith and to examine all plans
and shop drawings relating to such Capital Expenditures Work. Borrower shall cause all contractors and subcontractors to cooperate
with Lender or Lender’s representatives or such other Persons described above in connection with inspections described in
this Section 6.5.2(c).

 

(d)         If a disbursement
of Capital Expenditure Funds will exceed Fifty Thousand and No/100 Dollars ($50,000.00), Lender may require an inspection of the
Property at Borrower’s expense prior to making a disbursement of Capital Expenditure Funds in order to verify completion
of the Capital Expenditures Work for which reimbursement is sought. Lender may require that such inspection be conducted by an
appropriate independent qualified professional selected by Lender and may require a certificate of completion by an independent
qualified professional architect acceptable to Lender prior to the disbursement of Capital Expenditure Funds. Borrower shall pay
the expense of the inspection as required hereunder, whether such inspection is conducted by Lender or by an independent qualified
professional architect.

 

(e)         In addition
to any insurance required under the Loan Documents, Borrower shall provide or cause to be provided workmen’s compensation
insurance, builder’s risk insurance, public liability insurance and other insurance to the extent required under applicable
law in connection with the Capital Expenditures Work. All such policies shall be in form and amount satisfactory to Lender.

 

Section 6.6          Rollover
Funds.

 

6.6.1          Deposits of Rollover
Funds.

 

(a)         Borrower
shall deposit with Lender on each Monthly Payment Date the sum of $3,694, for tenant improvements and leasing
commissions that may be incurred following the date hereof, which amounts shall be transferred into an Account established by
or on behalf of Lender to hold such funds (the “Rollover Account”). Lender may from time to time reassess
its estimate of the required monthly amount necessary for tenant improvements and leasing commissions and, upon notice to
Borrower, Borrower shall be required to deposit with or on behalf of Lender each month such reassessed amount, which shall be
transferred into the Rollover Account. Amounts deposited from time to time into the Rollover Account pursuant to this Section 6.6.1
are referred to herein as the “Rollover Funds”.

 

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(b)         In addition
to the required monthly deposits set forth in subsection (a) above, the following items (collectively, “Lease Termination
Payments”) shall be deposited into the Rollover Account and held as Rollover Funds and shall be disbursed and released
as set forth in Section 6.6.2 below, and Borrower shall advise Lender at the time of receipt thereof of the nature
of such receipt so that Lender shall have sufficient time to instruct the Cash Management Bank to deposit and hold such amounts
in the Rollover Account pursuant to the Cash Management Agreement:

 

(i)         All sums paid
with respect to (A) a modification of any Lease or otherwise paid in connection with Borrower taking any action under any
Lease (e.g., granting a consent) or waiving any provision thereof, (B) any settlement of claims of Borrower against third
parties in connection with any Lease, (C) any rejection, termination, surrender or cancellation of any Lease (including in
any bankruptcy case) or any lease buy-out or surrender payment from any Tenant (including any payment relating to unamortized tenant
improvements and/or leasing commissions), (D) any Rents paid more than one (1) month in advance of the due date thereof and (E) any
sum received from any Tenant to obtain a consent to an assignment or sublet or otherwise, or any holdover rents or use and occupancy
fees from any Tenant or former Tenant (to the extent not being paid for use and occupancy or holdover rent); and

 

(ii)        Any other
extraordinary event pursuant to which Borrower receives payments or income (in whatever form) derived from or generated by the
use, ownership or operation of the Property not otherwise covered by this Agreement or the Cash Management Agreement.

 

6.6.2          Release
of Rollover Funds. Lender shall direct Servicer to disburse the Rollover Funds to Borrower out of the Rollover Account
upon satisfaction by Borrower of each of the following conditions with respect to each such disbursement: (i) such
disbursement is for an Approved Leasing Expense; (ii) Borrower shall submit a request for payment to Lender at least
ten (10) days prior to the date on which Borrower requests such payment be made, which request shall specify the
Approved Leasing Expense to be paid; (iii) on the date such request is received by Lender and on the date such payment
is to be made, no Event of Default shall exist and remain uncured; (iv) Lender shall have reviewed and approved the
Lease giving rise to the Approved Leasing Expense to be paid; and (v) Lender shall have received (1) an
Officer’s Certificate from Borrower (A) stating that the items to be funded by the requested disbursement are
Approved Leasing Expenses, and a description thereof, (B) stating that all tenant improvements at the Property to be
funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance with all
applicable Legal Requirements and any agreement with the applicable Tenant, (C) identifying each Person that supplied
materials or labor in connection with the tenant improvements to be funded by the requested disbursement or the broker
entitled to the leasing commissions, (D) stating that each such Person has been paid in full or will be paid in full
upon such disbursement, (E) stating that the Approved Leasing Expenses to be funded have not been the subject of a
previous disbursement,

 

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(F) stating that all previous disbursements of Rollover Funds have been used to pay the
previously identified Approved Leasing Expenses, and (G) stating that all outstanding trade payables (other than those
to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (2) a
copy of any license, permit or other approval by any Governmental Authority required in connection with the tenant
improvements and not previously delivered to Lender, (3) lien waivers or other evidence of payment satisfactory to
Lender, (4) at Lender’s option, a title search for the Property indicating that the Property is free from all
Liens, claims and other encumbrances not previously approved by Lender, (5) if requested by Lender, with respect to
disbursements from the Rollover Account for tenant improvement costs, a current tenant estoppel certificate in form and
substance acceptable to Lender, and (6) such other evidence as Lender shall reasonably request to demonstrate that the
Approved Leasing Expenses to be funded by the requested disbursement have been completed and are paid for or will be paid
upon such disbursement to Borrower. Lender shall not be required to disburse Rollover Funds more frequently than once each
calendar month, and Lender shall not be required to make disbursements from the Rollover Account unless such requested
disbursement is in an amount greater than $10,000 (or a lesser amount if the total amount in the Rollover Account is less
than $10,000, in which case only one disbursement of the amount remaining in the account shall be made).

 

Section 6.7          Major Tenant
Funds.

 

6.7.1          Deposits of Major
Tenant Funds. During the continuance of a Major Tenant Trigger Period, Borrower shall deposit with Lender on each Monthly Payment
Date all Remaining Receipts, which amounts shall be transferred into an Account established by or on behalf of Lender to hold such
funds (the “Major Tenant Account”). Amounts deposited from time to time into the Major Tenant Account pursuant
to this Section 6.7.1 are referred to herein as the “Major Tenant Funds”.

 

6.7.2          Release
of Major Tenant Funds. Provided no Event of Default has occurred and is continuing and Borrower shall have satisfied the
terms and conditions of Section 6.6.2, as if such Major Tenant Funds were Rollover Funds, Lender shall apply the Major
Tenant Funds to payments of Approved Leasing Expenses incurred in connection with (y) the extension of the Lease with
Cardiology/Gastro Associates, or (z) a Re-Tenanting Event with respect to the Cardiology/Gastro Associates Space. Upon (i)
Lender’s receipt of satisfactory evidence that all obligations of Borrower as landlord with respect to tenant
improvement and leasing commission costs have been satisfied in full in connection with the extension of the Lease to
Cardiology/Gastro Associates, or that a Re-Tenanting Event has occurred with respect to the Cardiology/Gastro Associates
Space, in form and substance satisfactory to Lender or (ii) the termination of the applicable Major Tenant Trigger Period (as
described in clause (a) or clause (b) of the definition of “Major Tenant Trigger Period”) and such termination is
not effected pursuant to a Re-Tenanting Event, Lender shall, (1) if no Sweep Event Period is continuing, disburse the
remaining Major Tenant Funds to the Borrower Operating Account, (2) if any other Major Tenant Trigger Period is in effect,
such remaining Major Tenant Funds shall remain on deposit in the Major Tenant Account, or (3) if a Sweep Event Period that is
not a Major Tenant Trigger Period is continuing, deposit the remaining Major Tenant Funds into the Excess Cash Flow
Account.

 

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Section 6.8          Intentionally
Omitted.

 

Section 6.9          Excess
Cash Flow Funds. During the continuance of a Sweep Event Period that is not a Major Tenant Trigger Period, Borrower shall deposit
or cause to be deposited with or on behalf of Lender the funds specified in Section 6.11.1(a) hereof, which shall be transferred
by Cash Management Bank into an Account established to hold such funds (the “Excess Cash Flow Account”) and
held as additional collateral and security for the Loan. Amounts deposited from time to time into the Excess Cash Flow Account
pursuant to this Section 6.9 and Section 6.11 are referred to herein as the “Excess Cash Flow Funds.”
Upon a termination of a Sweep Event Period, provided no other Sweep Event Period is then continuing, Lender shall distribute the
Excess Cash Flow Funds on deposit in the Excess Cash Flow Account to Borrower.

 

Section 6.10          Security
Interest in Reserve Funds.

 

6.10.1          Grant of Security
Interest. Borrower shall be the owner of the Reserve Funds. Borrower hereby pledges, assigns and grants to Lender a first-priority
perfected security interest to Lender, as security for the payment and performance of the Obligations, in all of Borrower’s
right, title and interest in and to the Reserve Funds. The Reserve Funds shall be under the sole dominion and control of Lender.
The Reserve Funds shall not constitute a trust fund and may be commingled with other monies held by Lender.

 

6.10.2          Income Taxes;
Interest. Borrower shall report on its federal, state, commonwealth, district and local income tax returns all interest or
income accrued on the Reserve Funds. The Reserve Funds shall earn interest at a rate commensurate with the rate of interest paid
from time to time on money market accounts at a commercial bank selected by Lender in its sole discretion from time to time, with
interest credited monthly to such Reserve Funds (with the exception of the Tax Funds and the Insurance Funds). All earnings or
interest on each of the Reserve Funds (with the exception of the Tax Funds and the Insurance Funds) shall be and become part of
the respective Reserve Fund and shall be disbursed as provided in the paragraph(s) of this Agreement applicable to each such Reserve
Fund. No earnings or interest on the Tax Funds or the Insurance Funds shall be payable to Borrower.

 

6.10.3          Prohibition
Against Further Encumbrance. Borrower shall not, without the prior consent of Lender, further pledge, assign or grant any security
interest in the Reserve Funds or permit any Lien or encumbrance to attach thereto or any levy to be made thereon or any UCC-1 financing
statements to be filed with respect thereto, except those naming Lender as the secured party.

 

6.10.4          Lender
Remedy for Failure to Perform. In addition to Lender’s remedies following an Event of Default, Borrower
acknowledges that Lender shall have the right (but not the obligation) to complete or perform the Capital Expenditures,
tenant improvements, and leasing commissions (individually and collectively, as the context requires, the “Reserve
Items”) for which amounts have been reserved under this Loan Agreement (or pay the leasing commissions as
applicable) and for such purpose, Borrower hereby appoints Lender its attorney-in-fact with full power of substitution (and
which shall be deemed to be coupled with an interest and irrevocable until the Loan is paid in full and the Mortgage is
discharged of record, with Borrower hereby ratifying all that its said attorney shall do by virtue thereof):

 

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(i) to
complete or undertake such work in the name of Borrower; (ii) to proceed under existing contracts or to terminate
existing contracts (even where a termination penalty may be incurred) and employ such contractors, subcontractors, watchman,
agents, architects and inspectors as Lender determines necessary or desirable for completion of such work; (iii) to make
any additions, changes and corrections to the scope of the work as Lender deems necessary or desirable for timely completion;
(iv) to pay, settle or compromise all existing bills and claims which are or may become Liens against the Property or as
may be necessary or desirable for completion of such work; (v) to execute all applications and certificates in the name
of Borrower which may be required to obtain permits and approvals for such work or completion of such work; (vi) to
prosecute and defend all actions or proceedings in connection with the repair or improvements to the Property; and
(vii) to do any and every act which Borrower might do in its own behalf to fulfill the terms of Borrower’s
obligations under this Agreement. Amounts expended by Lender which exceed amounts held in the Accounts shall be added to the
Outstanding Principal Balance, shall be immediately due and payable, and shall bear interest at the Default Rate from the
date of disbursement by Lender until paid in full. In addition, in order to perform inspections or, following an Event of
Default, to complete Reserve Items which Borrower has failed to perform, Borrower hereby grants Lender and its agents the
right, from time to time, to enter onto the Property.

 

Section 6.11          Property
Cash Flow Allocation.

 

6.11.1          Order of Priority
of Funds in Cash Management Account.

 

(a)         On each
Monthly Payment Date during the Term, except during the continuation of an Event of Default, all funds deposited into the Cash
Management Account during the immediately preceding Interest Period shall be applied on such Monthly Payment Date in the following
order of priority:

 

(i)         First, to
the Tax Account, to make the required payments of Tax Funds as required under Section 6.3;

 

(ii)        Second, to
the Insurance Account, to make the required payments of Insurance Funds as required under Section 6.4;

 

(iii)       Third, to
Lender, funds sufficient to pay the Monthly Debt Service Payment Amount, applied first to the payment of interest computed at the
Interest Rate with the remainder applied to the reduction of the Outstanding Principal Balance;

 

(iv)       Fourth, to
the Capital Expenditure Account, to make the required payments of Capital Expenditure Funds as required under Section 6.5;

 

(v)        Fifth, to
the Rollover Account, to make the required payments of Rollover Funds as required under Section 6.6; and

 

(vi)       Sixth, to
Lender, of any other amounts then due and payable under the Loan Documents;

 

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(vii)      Seventh,
subject to the terms of the Cash Management Agreement, to the Borrower Operating Account, funds in an amount equal to the Monthly
Operating Expense Budgeted Amount;

 

(viii)     Eighth,
to the Borrower Operating Account, payments for Extraordinary Expenses approved by Lender, if any; and

 

(ix)        Lastly, all
amounts remaining after payment of the amounts set forth in clauses (i) through (viii) above (the “Remaining
Receipts”) (A) during the continuation of a Major Tenant Trigger Period, to the Major Tenant Account, (B) during the
continuation of any Sweep Event Period that is not a Major Tenant Trigger Period, to the Excess Cash Flow Account, or (C) otherwise,
to the Borrower Operating Account.

 

6.11.2          Failure to Make
Payments. The failure of Borrower to make all of the payments required under clauses (i) through (vi) of Section 6.11.1(a)
in full on each Monthly Payment Date shall constitute an Event of Default under this Agreement; provided, however, if adequate
funds are available in the Cash Management Account for such payments, and Borrower is not otherwise in Default hereunder, the failure
by the Cash Management Bank to allocate such funds into the appropriate Accounts shall not constitute an Event of Default.

 

6.11.3          Application
After Event of Default. Notwithstanding anything to the contrary contained in this Article 6, upon the occurrence
of an Event of Default, Lender, at its option, may withdraw the Reserve Funds and any other funds of Borrower then in the possession
of Lender, Servicer or Cash Management Bank (including any Gross Revenue) and apply such funds to the items for which the Reserve
Funds were established or to the payment of the Debt in such order, proportion and priority as Lender may determine in its sole
discretion. Lender’s right to withdraw and apply any of the foregoing funds shall be in addition to all other rights and
remedies provided to Lender under the Loan Documents.

 

ARTICLE
7

PROPERTY MANAGEMENT

 

Section 7.1          The Management
Agreement.

 

Borrower shall
(i) cause Manager to manage the Property in accordance with the Management Agreement, (ii) diligently perform and
observe all of the terms, covenants and conditions of the Management Agreement on the part of Borrower to be performed and
observed, (iii) promptly notify Lender of any default under the Management Agreement of which it is aware,
(iv) promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, report and
estimate received by it under the Management Agreement, and (v) promptly enforce the performance and observance of all
of the covenants required to be performed and observed by Manager under the Management Agreement. If Borrower shall default
in the performance or observance of any material term, covenant or condition of the Management Agreement on the part of
Borrower to be performed or observed, then, without limiting Lender’s other rights or remedies under this Agreement or
the other Loan Documents, and without waiving or releasing Borrower from any of its Obligations hereunder or under the
Management Agreement, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act
as may be appropriate to cause all the material terms, covenants and conditions of the Management Agreement on the part of
Borrower to be performed or observed.

 

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Section 7.2          Prohibition
Against Termination or Modification.

 

Borrower shall not (i) surrender,
terminate, cancel, modify, renew or extend the Management Agreement, (ii) enter into any other agreement relating to the management
or operation of the Property with Manager or any other Person, (iii) consent to the assignment by the Manager of its interest
under the Management Agreement, or (iv) waive or release any of its rights and remedies under the Management Agreement, in
each case without the express consent of Lender, which consent shall not be unreasonably withheld; provided, however, with respect
to a new manager such consent may be conditioned upon Borrower delivering a Rating Agency Confirmation as to such new manager and
management agreement. If at any time Lender consents to the appointment of a new manager, such new manager and Borrower shall,
as a condition of Lender’s consent, execute (i) a management agreement in form and substance reasonably acceptable to
Lender, and (ii) a subordination of management agreement in a form reasonably acceptable to Lender.

 

Section 7.3          Replacement
of Manager.

 

Lender shall have the right
to require Borrower to replace the Manager with a Person chosen by Borrower and approved by Lender (provided, that such approval
may be conditioned upon Borrower delivering a Rating Agency Confirmation as to such new manager and management agreement) upon
the occurrence of any one or more of the following events: (i) at any time following the occurrence of an Event of Default,
(ii) if at any time the Debt Service Coverage Ratio falls below 1.05 to 1.0 (the “Manager Termination Ratio”),
as determined by Lender in its sole discretion, (iii) if Manager shall be in default under the Management Agreement beyond
any applicable notice and cure period, (iv) if Manager shall become insolvent or a debtor in any bankruptcy or insolvency
proceeding, or (v) if at any time the Manager has engaged in gross negligence, fraud, willful misconduct or misappropriation
of funds. Notwithstanding the foregoing, after the occurrence and during the continuance of an Event of Default, Lender may, but
shall not be obligated to, select the replacement Property Manager.

 

ARTICLE
8

PERMITTED TRANSFERS

 

Section 8.1          Permitted
Transfer of the Property.

 

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From and after the date that
is one year after the Closing Date, Lender shall not withhold its consent to the conveyance of the Property to a Permitted Transferee
provided that (a) Borrower shall give Lender written notice of such Transfer request not less than sixty (60) days prior
to the proposed date of such Transfer and pay to Lender a non-refundable processing fee in the amount of $25,000, (b) if
a Securitization has occurred, Lender has received a Rating Agency Confirmation as to the conveyance of the Property to the Permitted
Transferee, (c) Lender has received an agreement, acceptable to it in its sole discretion, pursuant to which Permitted Transferee
assumes all of Borrower’s obligations under the Loan Documents, (d) Lender receives a transfer fee equal to (I) one-half
of one percent (0.5%) of the then outstanding principal amount of the Loan with respect to the first such assumption and (II) one
percent (1%) of the then outstanding principal amount of the Loan for any subsequent assumption (but, with respect to each of clause
(I) and (II), in no event less than $15,000), (e) Lender shall have received such documents, certificates and legal opinions
as it may reasonably request, (f) no Event of Default or event which with the giving of notice or the passage of time or both
would constitute an Event of Default shall have occurred and remain uncured; (g) the Permitted Transferee and its property
manager shall have sufficient experience in the ownership and management of properties similar to the Property, and Lender shall
be provided with reasonable evidence thereof (and Lender reserves the right to approve the Permitted Transferee without approving
the substitution of the property manager); (h) the Permitted Transferee shall have executed and delivered to Lender an assumption
agreement in form and substance acceptable to Lender, evidencing such Permitted Transferee’s agreement to abide and be bound
by the terms of the Note, this Agreement and the other Loan Documents and an Affiliate of such Permitted Transferee acceptable
to Lender shall execute a recourse guaranty and an environmental indemnity in form and substance identical to the Guaranty and
Environmental Indemnity, respectively, with such changes to each of the foregoing as may be reasonably required by Lender, together
with such legal opinions and title insurance endorsements as may be reasonably requested by Lender; and (i) prior to any release
of the Guarantor, a substitute guarantor acceptable to Lender shall have assumed the Guaranty executed by Guarantor or executed
a replacement guaranty reasonably satisfactory to Lender. Notwithstanding the foregoing or anything herein to the contrary, Borrower
may not exercise its rights pursuant to this Section 8.1 during the period that commences on the date that is sixty
(60) days prior to the date of any intended Securitization of the Loan and ending on the date that is sixty (60) days after the
date of such Securitization of the Loan.

 

Section 8.2          Permitted
Transfers of Interest in Borrower.

 

(a)         Notwithstanding anything
to the contrary contained in Section 4.2.1, the following Transfers (“Permitted Transfers”) shall
be deemed to be permitted hereunder without the consent of Lender:

 

(i)         provided that no Default
or Event of Default shall have occurred and remain uncured, a Transfer (but not a pledge) of a direct or indirect interest in Borrower,
provided that (A) such Transfer shall not cause the transferee (together with its Affiliates) to acquire Control of, or result
in any change in Control of, Borrower or any SPC Party (if such transferee did not previously Control Borrower), (B) after giving
effect to such Transfer, the aggregate of all Transfers of direct or indirect interests in Borrower shall not exceed forty-nine
percent (49%) of the direct and indirect interests in Borrower existing as of the date hereof (excluding however the sale, transfer
or issuance of shares of common stock in any entity that is a publicly traded entity, provided that either (I) such shares of common
stock are listed on the New York Stock Exchange or another nationally recognized stock exchange or (II) such shares are sold, transferred
or issued to third party investors through licensed U.S. broker-dealers in accordance with Legal Requirements), (C) to the extent
any transferee owns twenty percent (20%) or more of the direct or indirect interests in Borrower immediately following such
Transfer, Borrower shall give Lender notice of such Transfer together with copies of all instruments effecting such Transfer not
less than ten (10) days prior to the date of such Transfer, (D) to the extent any transferee owns twenty percent (20%) or
more of the direct or indirect interests in Borrower immediately following such Transfer (provided such transferee did not own
20% or more of the direct or indirect ownership interests in Borrower as of the Closing Date), Borrower shall, prior to such Transfer,
deliver, at Borrower’s sole cost and expense, customary searches (credit, judgment, lien, etc.) acceptable to Lender with
respect to such transferee, and (E) the legal and financial structure of Borrower and the single purpose nature and bankruptcy
remoteness of Borrower after such Transfer, shall satisfy Lender’s then current applicable underwriting criteria and requirements;

 

(ii)        provided
that no Default or Event of Default shall have occurred and remain uncured, a Transfer (but not a pledge) of an indirect interest
in Borrower or any SPC Party that occurs by maintenance, devise or bequest or by operation of law upon the death of a natural person
that was the holder of such interest to a member of the immediate family of such interest holder or a trust established for the
benefit of such immediate family member, provided that (A) no such Transfer shall result in a change of the day-to-day management
of the Property, (B) Borrower shall give Lender notice of such Transfer together with copies of all instruments effecting such
Transfer not less than ten (10) days after the date of such Transfer,

 

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(C) the legal
and financial structure of Borrower and its members or partners, as applicable, and the single purpose nature and bankruptcy
remoteness of Borrower and its members or partners, as applicable after such Transfer, shall satisfy Lender’s then
current applicable underwriting criteria and requirements, (D) to the extent any transferee owns twenty percent (20%) or
more of the direct or indirect interests in Borrower immediately following such Transfer (provided such transferee did not
own 20% or more of the direct or indirect ownership interests in Borrower as of the Closing Date), Borrower shall deliver, at
Borrower’s sole cost and expense, customary searches (credit, judgment, lien, etc.) acceptable to Lender with respect
to such transferee within thirty (30) days after any such Transfer, (E) if any such Transfer would result in a change of
Control of Borrower or any SPC Party and occurs prior to Securitization, such Transfer is approved by Lender in writing in
its sole and absolute discretion within thirty (30) days after any such Transfer, and (F) if any such Transfer would
result in a change of Control of Borrower or any SPC Party and occurs after Securitization, Borrower, at Borrower’s
sole cost and expense, shall, within thirty (30) days after any such Transfer, (y) deliver (or cause to be delivered) a
Rating Agency Confirmation to Lender, and (z) obtain the written consent of Lender, which shall not be unreasonably
withheld.

 

(iii)      Lender
acknowledges that United Realty Capital Operating Partnership, L.P. (“Sponsor Member”), has pledged its ownership
interests in Borrower to Arbor-Myrtle Beach PE LLC (“Investor Member”) and Lender’s consent shall not
be required in connection with any Transfer of the direct or indirect interests in Borrower from Sponsor Member to Investor Member
provided that the terms and conditions for such Transfers as are set out in that certain Subordination Agreement, dated as of the
date hereof, by and between Lender and Investor Member are satisfied. Additionally, Lender’s consent shall not be required
in connection with a Transfer of the preferred equity ownership interests of Investor Member to Sponsor Member in connection with
a redemption of the preferred equity ownership interests as provided in operating agreement of Borrower. Borrower shall provide
to Lender notice of such Transfer in connection with a redemption of the preferred equity ownership interests within thirty (30)
days of the occurrence of such Transfer.

 

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(b)         For purposes
of this Section 8.2, (i) a change of “Control” of Borrower (or any SPC Party) shall be deemed to have occurred
if (A) there is any change in the identity of any individual or entity or any group of individuals or entities who have the right,
by virtue of any partnership agreement, articles of incorporation, by-laws, articles of organization, operating agreement or any
other agreement, with or without taking any formative action, to cause Borrower (or any SPC Party) to take some action or to prevent,
restrict or impede Borrower (or any SPC Party) from taking some action which, in either case, Borrower (or any SPC Party) could
take or could refrain from taking were it not for the rights of such individuals, or (B) the individual or entity or group of individuals
or entities that “Control” Borrower (and any SPC Party) as described in clause (A) ever cease to own at least one percent
(1%) of all equity interests (direct or indirect (individually or as trustee of one or more trusts)) in Borrower (and each SPC
Party); and (ii) an “immediate family member” shall mean a sibling, spouse or a child of any interest holder. For the
avoidance of doubt, changes in the composition of directors or officers of any entity which is that is a publicly traded entity,
which shares of common stock are (I) listed on the New York Stock Exchange or another nationally recognized stock exchange or (II)
such shares are sold, transferred or issued to third party investors through licensed U.S. broker-dealers in accordance with Legal
Requirements, shall not be deemed to be a change in “Control” hereunder.

 

(c)         Upon written
request of Lender, Borrower shall provide to Lender an updated organizational structure chart of Borrower.

 

Section 8.3          Cost and
Expenses.

 

Borrower shall pay all costs
and expenses of Lender in connection with any Transfer, whether or not such Transfer is deemed to be a Permitted Transfer, including,
without limitation, all fees and expenses of Lender’s counsel, whether internal or outside, and the cost of any required
counsel opinions related to REMIC or other securitization or tax issues and any Rating Agency fees.

 

ARTICLE
9

SALE AND SECURITIZATION OF MORTGAGE

 

Section 9.1          Sale of
Mortgage and Securitization.

 

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(a)         Lender shall
have the right (i) to sell or otherwise transfer the Loan or any portion thereof as a whole loan, (ii) to sell participation
interests in the Loan, or (iii) to securitize the Loan or any portion thereof in a single asset securitization or a pooled
loan securitization. (The transactions referred to in clauses (i), (ii) and (iii) shall hereinafter be referred to collectively
as “Secondary Market Transactions” and the transactions referred to in clause (iii) shall hereinafter be
referred to as a “Securitization”. Any certificates, notes or other securities issued in connection with a Securitization
are hereinafter referred to as “Securities”).

 

(b)         If requested
by Lender, Borrower shall assist Lender, at Borrower’s reasonable expense not to exceed $5,000, in satisfying the market
standards to which Lender customarily adheres or which may be required in the marketplace or by the Rating Agencies or any Governmental
Authority in connection with any Secondary Market Transactions, including to:

 

(i)         (A) provide
updated financial and other information with respect to the Property, the business operated at the Property, Borrower and the Manager,
(B) provide updated budgets relating to the Property, and (C) provide updated appraisals, market studies, environmental
reviews and reports (Phase I’s and, if appropriate, Phase II’s), property condition reports and other due
diligence investigations of the Property (the “Updated Information”), together, if customary, with appropriate
verification of the Updated Information through letters of auditors or opinions of counsel acceptable to Lender and the Rating
Agencies;

 

(ii)        provide opinions
of counsel, which may be relied upon by Lender, the Rating Agencies, and their respective counsel, agents and representatives,
as to non-consolidation, fraudulent conveyance and true sale or any other opinion customary in Secondary Market Transactions or
required by the Rating Agencies with respect to the Property and Borrower and its Affiliates, which counsel and opinions shall
be satisfactory to Lender and the Rating Agencies;

 

(iii)       provide
updated, as of the closing date of the Secondary Market Transaction, representations and warranties made in the Loan Documents
and such additional representations and warranties as the Rating Agencies may require; and

 

(iv)       execute amendments
to the Loan Documents and Borrower’s organizational documents requested by Lender; provided, however, that Borrower shall
not be required to modify or amend any Loan Document if such modification or amendment would (A) change the interest rate,
the stated maturity or the amortization of principal as set forth herein or in the Note, or (B) modify or amend any other material
economic term of the Loan.

 

(c)         Upon request,
Borrower shall furnish to Lender from time to time such financial data and financial statements as Lender determines to be necessary,
advisable or appropriate for complying with any Applicable Law (including those applicable to Lender or any Servicer (including,
without limitation and to the extent applicable, Regulation AB)) within the timeframes necessary, advisable or appropriate in order
to comply with such Applicable Law.

 

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Section 9.2          Securitization
Indemnification.

 

(a)         Borrower
understands that information provided to Lender by Borrower and its agents, counsel and representatives, including information
contained in the Certification of Borrower may be included in disclosure documents in connection with the Securitization, including
an offering circular, a prospectus, prospectus supplement, private placement memorandum or other offering document (each, a “Disclosure
Document”) and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities
Act of 1933, as amended (the “Securities Act”), or the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”), and may be made available to investors or prospective investors in the Securities, the Rating
Agencies and service providers relating to the Securitization.

 

(b)         Borrower
shall provide in connection with each of (i) a preliminary and a final private placement memorandum or (ii) a
preliminary and final prospectus or prospectus supplement, as applicable, an agreement (A) certifying that Borrower has
examined such Disclosure Documents specified by Lender and that each such Disclosure Document, as it relates to Borrower,
Guarantor, Borrower’s Affiliates, the Property, Manager and all other aspects of the Loan, does not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading, (B) indemnifying Lender (and for purposes of this Section 9.2,
Lender hereunder shall include its officers and directors), the Affiliate of Lender (“Lender Affiliate”)
that has filed the registration statement relating to the Securitization (the “Registration Statement”),
each of its directors, each of its officers who have signed the Registration Statement and each Person that controls the
Affiliate within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively,
the “Lender Group”), Lender Affiliate, and any other placement agent or underwriter with respect to the
Securitization, each of their respective directors and each Person who controls Lender Affiliate or any other placement agent
or underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
(collectively, the “Underwriter Group”) for any losses, claims, damages or liabilities (collectively, the
“Liabilities”) to which Lender, the Lender Group or the Underwriter Group may become subject insofar as
the Liabilities arise out of, or are based upon, any untrue statement or alleged untrue statement of any material fact
contained in such sections or arise out of, or are based upon, the omission or alleged omission to state therein a material
fact required to be stated in such sections or necessary in order to make the statements in such sections, in light of the
circumstances under which they were made, not misleading, and (C) agreeing to reimburse Lender, the Lender Group and/or
the Underwriter Group for any legal or other expenses reasonably incurred by Lender, the Lender Group and/or the Underwriter
Group in connection with investigating or defending the Liabilities; provided, however, that Borrower will be liable in any
such case under clauses (B) or (C) above only to the extent that any such Liability arises out of, or is
based upon, any such untrue statement or omission made therein in reliance upon, and in conformity with, information
furnished to Lender by or on behalf of Borrower in connection with the preparation of the Disclosure Document or in
connection with the underwriting or closing of the Loan, including financial statements of Borrower, operating statements and
rent rolls with respect to the Property. This indemnity agreement will be in addition to any liability which Borrower may
otherwise have.

 

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(c)         In connection
with any filing pursuant to the Exchange Act in connection with or relating to the Securitization ("Exchange Act Filing"),
Borrower shall (i) indemnify Lender, the Lender Group and the Underwriter Group for Liabilities to which Lender, the Lender
Group and/or the Underwriter Group may become subject insofar as the Liabilities arise out of, or are based upon, the omission
to state in the Disclosure Document a material fact required to be stated in the Disclosure Document in order to make the statements
in the Disclosure Document, in light of the circumstances under which they were made, not misleading, and (ii) reimburse Lender,
the Lender Group and/or the Underwriter Group for any legal or other expenses reasonably incurred by Lender, the Lender Group and/or
the Underwriter Group in connection with defending or investigating the Liabilities.

 

(d)         In connection
with any Securitization, Borrower shall (i) indemnify Lender, the Lender Group and the Underwriter Group for Liabilities to
which Lender, the Lender Group and/or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based
upon, any error or omission in any Disclosure Document and (ii) reimburse Lender, the Lender Group and/or the Underwriter
Group for any legal or other expenses reasonably incurred by Lender, the Lender Group and/or the Underwriting Group in connection
with defending or investigating the Liabilities.

 

(e)         Promptly
after receipt by an indemnified party under this Section 9.2 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 9.2,
notify the indemnifying party in writing of the commencement thereof, but the omission to so notify the indemnifying party
will not relieve the indemnifying party from any liability which the indemnifying party may have to any indemnified party
hereunder except to the extent that failure to notify causes prejudice to the indemnifying party. In the event that any
action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled, jointly with any other indemnifying party, to participate therein and, to the extent
that it (or they) may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid
notice from such indemnified party, to assume the defense thereof with counsel satisfactory to such indemnified party. After
notice from the indemnifying party to such indemnified party under this Section 9.2, such indemnified party shall
pay for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof
other than reasonable costs of investigation; provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there are any
legal defenses available to it and/or other indemnified parties that are different from or additional to those available to
the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal
defenses and to otherwise participate in the defense of such action on behalf of such indemnified party at the cost of the
indemnifying party. The indemnifying party shall not be liable for the expenses of more than one separate counsel unless an
indemnified party shall have reasonably concluded that there may be legal defenses available to it that are different from or
additional to those available to the indemnifying party.

 

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(f)         In order
to provide for just and equitable contribution in circumstances in which the indemnity agreement provided for in Section 9.2(b)
or (c) is for any reason held to be unenforceable as to an indemnified party in respect of any Liabilities (or action
in respect thereof) referred to therein which would otherwise be indemnifiable under Section 9.2(b) or (c),
the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such Liabilities
(or action in respect thereof); provided, however, that no Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. In determining the amount of contribution to which the respective parties are entitled, the following factors
shall be considered: (i) Lender Affiliate’s and Borrower’s relative knowledge and access to information concerning
the matter with respect to which the claim was asserted; (ii) the opportunity to correct and prevent any statement or omission;
and (iii) any other equitable considerations appropriate in the circumstances. Lender and Borrower hereby agree that it would
not be equitable if the amount of such contribution were determined by pro rata or per capita allocation.

 

(g)         The liabilities
and obligations of both Borrower and Lender under this Section 9.2 shall survive the termination of this Agreement
and the satisfaction and discharge of the Debt.

 

Section 9.3          Intentionally
Omitted.

 

Section 9.4          Severance
Documentation.

 

Lender, without in any
way limiting Lender’s other rights hereunder, in its sole and absolute discretion, shall have the right, at any time
(whether prior to or after any sale, participation or Securitization of all or any portion of the Loan), to require the
Borrower to execute and deliver “component” notes and/or modify the Loan in order to create one or more senior
and subordinate notes (i.e., an A/B or A/B/C structure) and/or one or more additional components of the Note or
Notes (including the implementation of a mezzanine loan structure), reduce the number of components of the Note or Notes,
revise the interest rate for each component, reallocate the principal balances of the Notes and/or the components, increase
or decrease the monthly debt service payments for each component or eliminate the component structure and/or the multiple
note structure of the Loan (including the elimination of the related allocations of principal and interest payments),
provided that the Outstanding Principal Balance of all components immediately after the effective date of such modification
equals the Outstanding Principal Balance immediately prior to such modification and the weighted average of the interest
rates for all components immediately after the effective date of such modification equals the interest rate of the original
Note immediately prior to such modification.

 

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At Lender’s election, each note comprising the Loan may be subject to one
or more Securitizations. Lender shall have the right to modify the Note and/or Notes and any components in accordance with
this Section 9.4 and, provided that such modification shall comply with the terms of this Section 9.4,
it shall become immediately effective. If requested by Lender, Borrower shall promptly execute an amendment to the Loan
Documents to evidence any such modification. Borrower shall (1) cooperate with all reasonable requests of Lender in
order to establish the “component” notes, and (2) execute and deliver such documents as shall be required by
Lender and any Rating Agency in connection therewith, all in form and substance satisfactory to Lender and satisfactory to
any Rating Agency, including, without limitation, the severance of security documents if requested. In the event Borrower
fails to execute and deliver such documents to Lender within five (5) Business Days following such request by Lender,
Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its
name and stead to make and execute all documents necessary or desirable to effect such transactions, Borrower hereby
ratifying all that such attorney shall do by virtue thereof. It shall be an Event of Default under this Agreement, the Note,
the Mortgage and the other Loan Documents if Borrower fails to comply with any of the terms, covenants or conditions of this Section 9.4
after expiration of ten (10) Business Days after notice thereof.

 

ARTICLE
10

DEFAULTS

 

Section 10.1          Events
of Default.

 

(a)         Each of
the following events shall constitute an event of default hereunder (an “Event of Default”):

 

(i)         if (A) the
Obligations are not paid in full on the Maturity Date, (B) any regularly scheduled monthly payment of interest, and, if applicable,
principal due under the Note is not paid in full on or by the applicable Monthly Payment Date, (C) any prepayment of principal
due under this Agreement or the Note is not paid when due, (D) the Prepayment Fee is not paid when due, or (E) any deposit to the
Reserve Funds is not made on the required deposit date therefor;

 

(ii)        if any other
amount payable pursuant to this Agreement, the Note or any other Loan Document (other than as set forth in the foregoing clause (i))
is not paid in full when due and payable in accordance with the provisions of the applicable Loan Document, with such failure continuing
for ten (10) Business Days after Lender delivers written notice thereof to Borrower;

 

(iii)       if any of
the Taxes or Other Charges are not paid when due (provided that it shall not be an Event of Default if there are sufficient funds
in the Tax Account to pay such amounts when due, no other Event of Default is then continuing and Servicer fails to make such payment
in violation of this Agreement);

 

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(iv)       if the Policies
are not (A) delivered to Lender and (B) kept in full force and effect, each in accordance with the terms and conditions
hereof (provided that it shall not be an Event of Default under clause (B) as a result of failure to pay Insurance Premiums if
Borrower shall have delivered to Servicer invoices for such Insurance Premiums in accordance with this Agreement, there are sufficient
funds in the Insurance Account to pay such amounts when due, no other Event of Default is then continuing and Servicer fails to
make such payment in violation of this Agreement);

 

(v)        if Borrower
breaches or permits or suffers a breach of the provisions of Section 4.2.1;

 

(vi)       if any certification,
representation or warranty made by Borrower or Guarantor herein or in any other Loan Document, or in any report, certificate, financial
statement or other instrument, agreement or document furnished to Lender, including but not limited to the Certification of Borrower,
shall have been materially false or materially misleading in any respect as of the date hereof;

 

(vii)      if Borrower,
any SPC Party or Guarantor shall make an assignment for the benefit of creditors;

 

(viii)     if a receiver,
liquidator or trustee shall be appointed for Borrower, any SPC Party or Guarantor or if Borrower, any SPC Party or Guarantor shall
be adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy
law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, Borrower, any SPC Party
or Guarantor, or if any voluntary proceeding for the dissolution or liquidation of Borrower, any SPC Party or Guarantor shall be
instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by
Borrower, such SPC Party or Guarantor, upon the same not being discharged, stayed or dismissed within ninety (90) days following
its filing;

 

(ix)        if Borrower
attempts to assign its rights under this Agreement or any of the other Loan Documents or any interest herein or therein in contravention
of the Loan Documents;

 

(x)         intentionally
omitted;

 

(xi)        if Borrower
or any SPC Party breaches any representation, warranty or covenant contained in Section 3.1.24 hereof provided, however,
if (1) Lender determines that such breach of covenant or representation (i) was not made in bad faith, (ii) is capable of being
cured, (iii) is not material and (iv) Lender would not be prejudiced by permitting Borrower to cure the same, and (2) at the request
of any Rating Agency, Borrower provides a non-consolidation opinion addressing such breach, Lender will permit Borrower thirty
(30) days after written notice thereof to cure such misrepresentation or breach of warranty before it becomes an Event of Default
hereunder;

 

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(xii)       if Borrower
shall be in default under any mortgage or security agreement covering any part of the Property whether it be superior, pari
passu or junior in Lien to the Mortgage;

 

(xiii)      subject
to Borrower’s right to contest as provided in Section 3.6 of the Mortgage, if the Property becomes subject to any mechanic’s,
materialman’s or other Lien except a Lien for Taxes not then due and payable;

 

(xiv)      except as
expressly permitted herein, the alteration, improvement, demolition or removal of any of the Improvements without the prior consent
of Lender;

 

(xv)       if, without
Lender’s prior written consent, (i) the Management Agreement is terminated, (ii) the ownership, management or control
of Manager is transferred, (iii) there is a material change in the Management Agreement, or (iv) if there shall be a
material default by Borrower under the Management Agreement;

 

(xvi)      if Borrower
ceases to continuously operate the Property or any material portion thereof as a medical office building for any reason whatsoever
(other than temporary cessation in connection with any repair or renovation thereof undertaken with the consent of Lender);

 

(xvii)     if
Borrower shall continue to be in Default under any of the other terms, covenants or conditions of this Agreement not
specified in subsections (i) to (xvi) above or in subsections (xviii) to (xxii) below, and such Default shall
continue for ten (10) days after notice to Borrower from Lender, in the case of any such Default which can be cured by
the payment of a sum of money, or for thirty (30) days after notice to Borrower from Lender in the case of any other
such Default; provided, however, that if such non-monetary Default is susceptible of cure but cannot reasonably be cured
within such 30-day period, and provided further that Borrower shall have commenced to cure such Default within such 30-day
period shall and thereafter diligently and expeditiously proceed to cure the same, such 30-day period shall be extended for
such time as is reasonably necessary for Borrower in the exercise of due diligence to cure such Default, such additional
period not to exceed sixty (60) days;

 

(xviii)    if Borrower
or any Person owning a direct or indirect ownership interest in Borrower shall be convicted of a Patriot Act Offense by a court
of competent jurisdiction;

 

(xix)       if Borrower
breaches any covenant contained Section 4.1.7 hereof and such failure shall continue for five (5) Business Days following
notice to Borrower from Lender;

 

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(xx)        except as
expressly permitted pursuant to the Loan Documents, if Borrower or any other Person grants any easement, covenant or restriction
(other than the Permitted Encumbrances) over the Property;

 

(xxi)       if Borrower
breaches the negative covenant contained in Section 4.2.16 hereof or acts or neglects to act in such a manner as to
be considered a default under any of the Operating Agreements; or

 

(xxii)      if there
shall occur any other event which is defined as an Event of Default in this Agreement or in any other Loan Document or if there
shall be a default under any of the other Loan Documents beyond any applicable cure periods contained in such Loan Documents, whether
as to Borrower, Guarantor or the Property, or if any other such event shall occur or condition shall exist, if the effect of such
event or condition is to accelerate the maturity of any portion of the Obligations or to permit Lender to accelerate the maturity
of all or any portion of the Obligations.

 

(b)         Upon the
occurrence of an Event of Default (other than an Event of Default described in clauses (vii), (viii) or (ix) above) and
at any time thereafter, Lender may, in addition to any other rights or remedies available to it pursuant to this Agreement and
the other Loan Documents or at law or in equity, take such action, without notice or demand, that Lender deems advisable to protect
and enforce its rights against Borrower and in and to the Property, including declaring the Obligations to be immediately due and
payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower
and the Property, including all rights or remedies available at law or in equity; and upon any Event of Default described in clauses (vii),
(viii) or (ix) above, the Obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically
become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained
herein or in any other Loan Document to the contrary notwithstanding.

 

Section 10.2          Remedies.

 

(a)         Upon the
occurrence of an Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to Lender
against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, Borrower
or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Obligations
shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for
the enforcement of its rights and remedies under any of the Loan Documents with respect to the Property. Any such actions taken
by Lender shall be cumulative and concurrent and may be pursued independently, singly, successively, together or otherwise, at
such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing
or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in
the other Loan Documents. Without limiting the generality of the foregoing, if an Event of Default is continuing (i) Lender
shall not be subject to any “one action” or “election of remedies” law or rule, and (ii) all Liens
and other rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender has exhausted all
of its remedies against the Property and the Mortgage has been foreclosed, sold and/or otherwise realized upon in satisfaction
of the Obligations or the Obligations have been paid in full.

 

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(b)         Lender shall
have the right from time to time to partially foreclose the Mortgage in any manner and for any amounts secured by the Mortgage
then due and payable as determined by Lender in its sole discretion, including the following circumstances: (i) in the event
Borrower defaults beyond any applicable grace period in the payment of one or more scheduled payments of principal and interest,
Lender may foreclose the Mortgage to recover such delinquent payments, or (ii) in the event Lender elects to accelerate less
than the entire Outstanding Principal Balance, Lender may foreclose the Mortgage to recover so much of the principal balance of
the Loan as Lender may accelerate and such other sums secured by the Mortgage as Lender may elect. Notwithstanding one or more
partial foreclosures, the Property shall remain subject to the Mortgage to secure payment of the sums secured by the Mortgage and
not previously recovered.

 

(c)         Lender
shall have the right from time to time to sever the Note and the other Loan Documents into one or more separate notes,
mortgages and other security documents (the “Severed Loan Documents”) in such denominations as Lender
shall determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder.
Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement
and such other documents as Lender shall request in order to effect the severance described in the preceding sentence, all in
form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true
and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents necessary or desirable
to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided,
however, Lender shall not make or execute any such documents under such power until three (3) days after notice has been
given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Except as may be required in
connection with a Securitization pursuant to Section 9.1 hereof, (i) Borrower shall not be obligated to pay
any costs or expenses incurred in connection with the preparation, execution, recording or filing of the Severed Loan
Documents, and (ii) the Severed Loan Documents shall not contain any representations, warranties or covenants not
contained in the Loan Documents.

 

(d)         Any amounts
recovered from the Property or any other collateral for the Loan after an Event of Default may be applied by Lender toward the
payment of any interest and/or principal of the Loan and/or any other amounts due under the Loan Documents, in such order, priority
and proportions as Lender in its sole discretion shall determine.

 

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Section 10.3          Lender’s
Right to Perform.

 

If Borrower fails to perform
any covenant or obligation contained herein and such failure shall continue for a period of five (5) Business Days after Borrower’s
receipt of written notice thereof from Lender, without in any way limiting Lender’s right to exercise any of its rights,
powers or remedies as provided hereunder, or under any of the other Loan Documents, Lender may, but shall have no obligation to,
perform, or cause the performance of, such covenant or obligation, and all costs, expenses, liabilities, penalties and fines of
Lender incurred or paid in connection therewith shall be payable by Borrower to Lender upon demand and if not paid shall be added
to the Obligations (and to the extent permitted under applicable laws, secured by the Mortgage and the other Loan Documents) and
shall bear interest thereafter at the Default Rate. Notwithstanding the foregoing, Lender shall have no obligation to send notice
to Borrower of any such failure.

 

Section 10.4          Remedies
Cumulative.

 

The rights, powers and remedies
of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender may have
against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s
rights, powers and remedies may be pursued singly, concurrently or otherwise, at such time and in such order as Lender may determine
in Lender’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default
shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may
be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect
to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy,
right or power consequent thereon.

 

ARTICLE
11

MISCELLANEOUS

 

Section 11.1          Survival;
Successors and Assigns.

 

This Agreement and all covenants,
agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making
by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect so long
as all or any of the Obligations are outstanding and unpaid unless a longer period is expressly set forth herein or in the other
Loan Documents. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include
the legal representatives, successors and assigns of such party. All covenants, promises and agreements in this Agreement, by or
on behalf of Borrower, shall inure to the benefit of the legal representatives, successors and assigns of Lender.

 

Section 11.2          Lender’s
Discretion.

 

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Whenever pursuant to this
Agreement Lender exercises any right given to it to approve or disapprove any matter, or any arrangement or term is to be satisfactory
to Lender, the decision of Lender to approve or disapprove such matter or to decide whether arrangements or terms are satisfactory
or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender and shall be
final and conclusive. Prior to a Securitization, whenever pursuant to this Agreement the Rating Agencies are given any right to
approve or disapprove any matter, or any arrangement or term is to be satisfactory to the Rating Agencies, the decision of Lender
to approve or disapprove such matter or to decide whether arrangements or terms are satisfactory or not satisfactory, based upon
Lender’s determination of Rating Agency criteria, shall be substituted therefor.

 

Section 11.3          Governing
Law.

 

THIS AGREEMENT SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF SOUTH CAROLINA. ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY AT LENDER’S OPTION BE INSTITUTED IN THE CITY AND COUNTY IN WHICH THE PROPERTY
IS LOCATED, AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF
ANY SUCH SUIT, ACTION OR PROCEEDING.

 

Section 11.4          Modification,
Waiver in Writing.

 

No modification,
amendment, extension, discharge, termination or waiver of any provision of this Agreement or of any other Loan Document, nor
consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed
by the party or parties against whom enforcement is sought, and then such waiver or consent shall be effective only in the
specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or
demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other
circumstances.

 

Section 11.5          Delay
Not a Waiver.

 

Neither any failure nor any
delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any
right, power, remedy or privilege hereunder or under any other Loan Document, shall operate as or constitute a waiver thereof,
nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy
or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under
this Agreement or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment
when due of all other amounts due under this Agreement or the other Loan Documents, or to declare a default for failure to effect
prompt payment of any such other amount. Lender shall have the right to waive or reduce any time periods that Lender is entitled
to under the Loan Documents in its sole and absolute discretion.

 

Section 11.6          Notices.

 

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All notices, demands, requests,
consents, approvals or other communications (any of the foregoing, a “Notice”) required, permitted or desired
to be given hereunder shall be in writing and shall be sent by telefax (with answer back acknowledged) or by registered or certified
mail, postage prepaid, return receipt requested, or delivered by hand or by reputable overnight courier, addressed to the party
to be so notified at its address hereinafter set forth, or to such other address as such party may hereafter specify in accordance
with the provisions of this Section 11.6. Any Notice shall be deemed to have been received: (a) three (3)
days after the date such Notice is mailed, (b) on the date of sending by telefax if sent during business hours on a Business
Day (otherwise on the next Business Day), (c) on the date of delivery by hand if delivered during business hours on a Business
Day (otherwise on the next Business Day), and (d) on the next Business Day if sent by an overnight commercial courier, in
each case addressed to the parties as follows:

 

If to Lender:                          Starwood Mortgage
Capital LLC

1601 Washington Avenue, Suite 800

Miami Beach, Florida 33139

Attention: Ms. Leslie K. Fairbanks

Facsimile No. (305) 695-5539

 

with a copy to:                     Winstead PC

201 North Tryon Street

Suite 2000

Charlotte, North Carolina 28202

Attention: Jeffrey J. Lee, Esq.

Facsimile No.: (704) 339-1701

 

and with a copy to:             Wells Fargo
Commercial Mortgage Services

Duke Energy Center

550 South Tryon St., 12th Floor

MAC D1086-120

Charlotte, North Carolina 28202

Attention: Asset Manager – Starwood Mortgage Capital

Facsimile No.: (704) 715-0036

 

If to Borrower:                     c/o United Realty
Advisors, LP

60 Broad Street, 34th Floor

New York, New York 10004

Attention: Barry Funt

Facsimile No.: (212) 388-6811

 

with a copy to:                     Nelson Mullins
Riley & Scarborough LLP

Bank of America Corporate Center

42nd Floor

100 North Tryon Street

Charlotte, NC 28202-4007

Attention: Jonathan J. Nugent

Facsimile No. (704) 417-3237

 

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with a copy to:                     Arbor Myrtle Beach
PE LLC

333 Earle Ovington Boulevard

Uniondale, New York 11553

Attention: William Connolly, Esq.

 

with a copy to:                     Blank Rome LLP

405 Lexington Avenue

New York, New York 10174

Attention: Carol Joseph, Esq.

 

Any party may change the address to which any
such Notice is to be delivered by furnishing ten (10) days written notice of such change to the other parties in accordance
with the provisions of this Section 11.6. Notices shall be deemed to have been given on the date as set forth above,
even if there is an inability to actually deliver any such Notice because of a changed address of which no Notice was given, or
there is a rejection or refusal to accept any Notice offered for delivery. Notice for any party may be given by its respective
counsel. Additionally, Notice from Lender may also be given by Servicer and Lender hereby acknowledges and agrees that Borrower
shall be entitled to rely on any Notice given by Servicer as if it had been sent by Lender.

 

Section 11.7          Trial
by Jury.

 

BORROWER AND LENDER
EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY
FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND
VOLUNTARILY BY BORROWER AND LENDER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE
RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY
PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER.

 

Section 11.8          Headings.

 

The Article and/or Section
headings and the Table of Contents in this Agreement are included herein for convenience of reference only and shall not constitute
a part of this Agreement for any other purpose.

 

Section 11.9          Severability.

 

Wherever possible, each provision
of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of
this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 

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Section 11.10          Preferences.

 

Lender shall have the continuing
and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the Obligations of Borrower
hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other
party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds
received, the Obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect,
as if such payment or proceeds had not been received by Lender.

 

Section 11.11          Waiver
of Notice.

 

Borrower shall not be entitled
to any notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents
specifically and expressly provide for the giving of notice by Lender to Borrower and except with respect to matters for which
Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly
waives the right to receive any notice from Lender with respect to any matter for which this Agreement or the other Loan Documents
do not specifically and expressly provide for the giving of notice by Lender to Borrower.

 

Section 11.12          Remedies
of Borrower.

 

In the event that a claim
or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case where, by
law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably
or promptly, neither Lender nor its agents shall be liable for any monetary damages and Borrower’s sole remedy shall be limited
to commencing an action seeking injunctive relief or declaratory judgment. Any action or proceeding to determine whether Lender
has acted reasonably shall be determined by an action seeking declaratory judgment.

 

Section 11.13          Expenses;
Indemnity.

 

(a)         Borrower
shall pay or, if Borrower fails to pay, reimburse Lender upon receipt of notice from Lender, for all costs and expenses (including
reasonable attorneys’ fees and disbursements) incurred by Lender in connection with (i) Borrower’s ongoing performance
of and compliance with Borrower’s agreements and covenants contained in this Agreement and the other Loan Documents on its
part to be performed or complied with after the Closing Date, including confirming compliance with environmental and insurance
requirements; (ii) Lender’s ongoing performance of and compliance with all agreements and covenants contained in this
Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date; (iii) the negotiation,
preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications to this Agreement
and the other Loan Documents and any other documents or matters requested by Borrower;

 

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(iv) the filing and recording fees
and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions,
and other similar expenses incurred in creating and perfecting the Liens in favor of Lender pursuant to this Agreement and the
other Loan Documents; (v) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending
of any action or proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan
Documents, the Property or any other security given for the Loan; (vi) enforcing any Obligations of or collecting any payments
due from Borrower under this Agreement, the other Loan Documents or with respect to the Property or in connection with any refinancing
or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or of any insolvency
or bankruptcy proceedings, including, but not limited to any customary servicer or special servicer fees, and (vii) Borrower’s
failure to comply with the requirements of Section 4.1.15 or Section 9.1 hereof; provided, however,
that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the
active gross negligence, illegal acts, fraud or willful misconduct of Lender. Any costs due and payable to Lender may be paid,
at Lender’s election in its sole discretion, from any amounts in the Cash Management Account.

 

(b)         Borrower
shall indemnify, defend and hold harmless Lender from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including
the reasonable fees and disbursements of counsel for Lender in connection with any investigative, administrative or judicial
proceeding commenced or threatened, whether or not Lender shall be designated a party thereto), that may be imposed on,
actually incurred by, or asserted against Lender in any manner relating to or arising out of (i) any breach by Borrower
of its Obligations under, or any material misrepresentation by Borrower contained in, this Agreement or the other Loan
Documents, (ii) the use or intended use of the proceeds of the Loan, (iii) any information provided by or on behalf
of Borrower, or contained in any documentation approved by Borrower; (iv) ownership of the Mortgage, the Property or any
interest therein, or receipt of any Rents; (v) any accident, injury to or death of persons or loss of or damage to
property occurring in, on or about the Property or on the adjoining sidewalks, curbs, adjacent property or adjacent parking
areas, streets or ways; (vi) any use, nonuse or condition in, on or about the Property or on adjoining sidewalks, curbs,
adjacent property or adjacent parking areas, streets or ways; (vii) performance of any labor or services or the
furnishing of any materials or other property in respect of the Property; (viii) any failure of the Property to comply
with any Legal Requirement; (ix) any claim by brokers, finders or similar persons claiming to be entitled to a
commission in connection with any Lease or other transaction involving the Property or any part thereof, or any liability
asserted against Lender with respect thereto; and (x) the claims of any lessee of any portion of the Property or any
Person acting through or under any lessee or otherwise arising under or as a consequence of any Lease (collectively, the
“Indemnified Liabilities”); provided, however, that Borrower shall not have any obligation to Lender
hereunder to the extent that such Indemnified Liabilities arise from the active gross negligence, illegal acts, fraud or
willful misconduct of Lender. To the extent that the undertaking to indemnify, defend and hold harmless set forth in the
preceding sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion
that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities
incurred by Lender.

 

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Section 11.14          Schedules
Incorporated.

 

The Schedules annexed hereto
are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof.

 

Section 11.15          Offsets,
Counterclaims and Defenses.

 

Any assignee of Lender’s
interest in and to this Agreement and the other Loan Documents shall take the same free and clear of all offsets, counterclaims
or defenses which are unrelated to such documents which Borrower may otherwise have against any assignor of such documents, and
no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any
such assignee upon such documents and any such right to interpose or assert any such unrelated offset, counterclaim or defense
in any such action or proceeding is hereby expressly waived by Borrower.

 

Section 11.16          No Joint
Venture or Partnership; No Third Party Beneficiaries.

 

(a)         Borrower
and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and lender.
Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common or joint tenancy relationship between
Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee, beneficiary or lender.

 

(b)         This Agreement
and the other Loan Documents are solely for the benefit of Lender and nothing contained in this Agreement or the other Loan Documents
shall be deemed to confer upon anyone other than Lender any right to insist upon or to enforce the performance or observance of
any of the Obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan (and disburse
Reserve Funds) hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have standing to
require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make
the Loan (or make any disbursement of Reserve Funds) in the absence of strict compliance with any or all thereof and no other Person
shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole
or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so.

 

Section 11.17          Publicity.

 

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All news releases, publicity
or advertising by Borrower or its Affiliates through any media intended to reach the general public which refers to the Loan Documents
or the financing evidenced by the Loan Documents, to Lender, Lender Affiliate or any of their affiliates shall be subject to the
prior written approval of Lender. Borrower hereby agrees that Lender and its affiliated entities and its subsidiaries, may publicly
identify details of the Loan in their respective advertising and public communications of all kinds, including, but not limited
to, press releases, direct mail, newspapers, magazines, journals, e-mail or internet advertising or communications.  Such
details may include the name of the Property, the address of the Property, the amount of the Loan, the names of the Borrower and/or
Guarantor, the Closing Date, and a description of the size and location of the Property.

 

Section 11.18          Waiver
of Marshalling of Assets.

 

To the fullest extent permitted
by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower’s
members or partners, as applicable, and others with interests in Borrower, and of the Property, and shall not assert any right
under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration
of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents
to a sale of the Property for the collection of the Obligations without any prior or different resort for collection, or of the
right of Lender to the payment of the Obligations out of the net proceeds of the Property in preference to every other claimant
whatsoever.

 

Section 11.19          Waiver
of Offsets/Defenses/Counterclaims.

 

To the extent permitted by
applicable laws, Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action
or proceeding brought against it by Lender or its agents or otherwise to offset any obligations to make the payments required by
the Loan Documents. No failure by Lender to perform any of its obligations hereunder shall be a valid defense to, or result in
any offset against, any payments which Borrower is obligated to make under any of the Loan Documents.

 

Section 11.20          Conflict;
Construction of Documents; Reliance.

 

In the event of any conflict
between the provisions of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall control. The
parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution
of the Loan Documents and that such Loan Documents shall not be subject to the principle of construing their meaning against the
party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment
and advisors in entering into the Loan, without relying in any manner on any statements, representations or recommendations of
Lender or any parent, subsidiary or affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise
of any rights or remedies available to it under any of the Loan Documents or any other agreements or instruments which govern the
Loan by virtue of the ownership by it or any parent, subsidiary or affiliate of Lender of any equity interest any of them may acquire
in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on the basis of the foregoing
with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business
of real estate financings and other real estate transactions and investments which may be viewed as adverse to or competitive with
the business of Borrower or its Affiliates.

 

    	- 94 -

    	 

    

 

Section 11.21          Brokers
and Financial Advisors.

 

Borrower hereby represents
that it has dealt with no financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the
transactions contemplated by this Agreement. Borrower shall indemnify, defend and hold Lender harmless from and against any and
all claims, liabilities, costs and expenses of any kind (including Lender’s attorneys’ fees and expenses) in any way
relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or Lender in connection with the
transactions contemplated herein. The provisions of this Section 11.21 shall survive the expiration and termination
of this Agreement and the payment of the Obligations.

 

Section 11.22          Exculpation.

 

Subject to the qualifications
below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the Obligations contained in the
Note, this Agreement, the Mortgage or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought
against Borrower, except that Lender may bring a foreclosure action, an action for specific performance or any other appropriate
action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Mortgage and
the other Loan Documents, or in the Property, the Gross Revenues or any other collateral given to Lender pursuant to the Loan
Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or proceeding shall
be enforceable against Borrower only to the extent of Borrower’s interest in the Property, in the Gross Revenues and in
any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Mortgage and the other Loan Documents,
shall not sue for, seek or demand any deficiency judgment against Borrower in any such action or proceeding under or by reason
of or under or in connection with the Note, this Agreement, the Mortgage or the other Loan Documents. The provisions of this Section 11.22
shall not, however, (a) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan
Documents; (b) impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure and
sale under the Mortgage; (c) affect the validity or enforceability of any of the Loan Documents or any guaranty made in connection
with the Loan or any of the rights and remedies of Lender thereunder; (d) impair the right of Lender to obtain the appointment
of a receiver; (e) impair the enforcement of the Assignment of Leases; (f) constitute a prohibition against Lender to
seek a deficiency judgment against Borrower in order to fully realize the security granted by the Mortgage or to commence any
other appropriate action or proceeding in order for Lender to exercise its remedies against the Property; or (g) constitute
a waiver of the right of Lender to enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent
of any loss, damage, cost, expense, liability, claim or other obligation incurred by Lender (including attorneys’ fees and
costs reasonably incurred) arising out of or in connection with the following (all such liability and obligation of Borrower for
any or all of the following being referred to herein as “Borrower’s Recourse Liabilities”):

 

    	- 95 -

    	 

    

 

(i)         fraud, gross
negligence, willful misconduct, intentional material misrepresentation or failure to disclose a material fact by or on behalf of
Borrower, Guarantor, any Affiliate of Borrower or Guarantor, or any of their respective agents or representatives in connection
with the Loan;

 

(ii)        the breach
of any representation, warranty, covenant or indemnification provision in the Environmental Indemnity or in any other Loan Document
concerning environmental laws, hazardous substances and/or asbestos and any indemnification of Lender with respect thereto in either
document;

 

(iii)       wrongful
removal or destruction of any portion of the Property or damage to the Property caused by willful misconduct or gross negligence;

 

(iv)       any intentional
material physical waste at the Property;

 

(v)        the forfeiture
by Borrower of the Property, or any portion thereof, because of the conduct or purported conduct of criminal activity by Borrower
or Guarantor or any of their respective agents or representatives in connection therewith, including by reason of any claim under
the Racketeer Influenced and Corrupt Organizations Act (“RICO”);

 

(vi)       the misapplication,
misappropriation or conversion by or on behalf of Borrower of (A) any Insurance Proceeds paid by reason of any loss, damage
or destruction to the Property, (B) any Awards or other amounts received in connection with the Condemnation of all or a portion
of the Property, or (C) any Gross Revenues (including Rents, security deposits, advance deposits or any other deposits and
Lease Termination Payments);

 

(vii)      failure
to pay charges for labor or materials or other charges that can create Liens on any portion of the Property to the extent that
the revenue from the Property is sufficient to pay such amounts (other than charges for labor or materials or other charges owed
that are contested strictly in accordance with the terms of the Loan Documents);

 

(viii)     any security
deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender in accordance
with the provisions of the Loan Documents;

 

(ix)        the failure
to pay Taxes to the extent that the revenue from the Property is sufficient to pay such amounts (other than (x) amounts deposited
with Lender as Tax Funds for Taxes where Lender elects not to apply such funds toward payment of such Taxes owed, provided Borrower
has delivered to Lender all invoices for the payment of such Taxes as required by this Agreement or (y) Taxes owed that are
contested strictly in accordance with the terms of the Loan Documents);

 

    	- 96 -

    	 

    

 

(x)         failure to
obtain and maintain the fully paid for Policies in accordance with Section 5.1.1 hereof to the extent that the revenue
from the Property is sufficient to pay the Insurance Premiums (other than amounts deposited with Lender as Insurance Funds for
Insurance Premiums where Lender elects not to apply such funds toward payment of such Insurance Premiums owed, provided Borrower
has delivered to Lender all invoices for the payment of such Insurance Premiums as required by this Agreement);

 

(xi)        at any time
prior to a Securitization, the failure to permit on-site inspections of the Property to the extent required by, and in accordance
with, the terms and provisions of this Agreement and the Mortgage;

 

(xii)       the failure
to provide financial information to the extent required by, and in accordance with, the terms and provisions of this Agreement
and the Mortgage;

 

(xiii)      the
failure to timely appoint a new property manager upon the request of Lender after the occurrence of any of the events set forth
in Section 7.3 hereof;

 

(xiv)      the failure
by Borrower or Guarantor to cooperate with Lender’s execution of a Secondary Market Transaction pursuant to the terms and
provisions of Section 9.1;

 

(xv)       Borrower’s
indemnification of Lender set forth in Section 9.2 hereof;

 

(xvi)      the amendment
or modification of any Major Lease made without Lender’s prior written consent;

 

(xvii)     Borrower’s
failure to comply with the provisions of Section 3.1.24 hereof if such failure does not result in a substantive consolidation of
Borrower with any other Person;

 

(xviii)    Borrower's
indemnification obligations set forth in Sections 8.2 and 8.3 of the Mortgage; and/or

 

(xix)       if Guarantor,
Borrower or any Affiliate of any of the foregoing, in connection with any enforcement action or exercise or assertion of any right
or remedy by or on behalf of Lender under or in connection with the Guaranty, the Note, the Mortgage or any other Loan Document,
seeks in bad faith a defense, judicial intervention or injunctive or other equitable relief of any kind, or asserts in bad faith
in a pleading filed in connection with a judicial proceeding any defense against Lender or any right in connection with any security
for the Loan.

 

    	- 97 -

    	 

    

 

Notwithstanding
anything to the contrary in this Agreement or any of the other Loan Documents, (A) Lender shall not be deemed to have
waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy
Code to file a claim for the full amount of the Obligations or to require that all collateral shall continue to secure all of
the Obligations owing to Lender in accordance with the Loan Documents, and (B) the Obligations shall be fully recourse to
Borrower in the event that any of the following occur (each, a “Springing Recourse Event”):
(i) Borrower fails to comply with the provisions of Section 3.1.24 hereof if such failure results in a
substantive consolidation of Borrower with any other Person; (ii) Borrower fails to obtain Lender’s prior consent
to any subordinate financing secured by the Property or other voluntary Lien encumbering the Property except as permitted
herein; (iii) Borrower fails to obtain Lender’s prior consent to any Transfer of the Property or any interest
therein or any Transfer of any direct or indirect interest in Borrower, in either case as required by the Mortgage or this
Agreement other than a Permitted Transfer; (iv) Borrower or any SPC Party files a voluntary petition under the
Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (v) the filing of an involuntary petition
against Borrower and/or any SPC Party under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law by
any other Person in which Borrower, any SPC Party and/or Guarantor colludes with or otherwise assists such Person, and/or
Borrower, any SPC Party and/or Guarantor solicits or causes to be solicited petitioning creditors for any involuntary
petition against Borrower and/or any SPC Party by any Person; (vi) Borrower, any SPC Party and/or Guarantor files an
answer consenting to, or otherwise acquiescing in, or joining in, any involuntary petition filed against it by any
other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (vii) Borrower or any
Affiliate, officer, director or representative which controls Borrower consents to, or acquiesces in, or joins in, an
application for the appointment of a custodian, receiver, trustee or examiner for Borrower or any portion of the Property; or
(viii) Borrower, any SPC Party and/or Guarantor makes an assignment for the benefit of creditors or admits, in writing
or in any legal proceeding, its insolvency or inability to pay its debts as they become due.

 

Section 11.23          Prior
Agreements.

 

This Agreement and the other
Loan Documents contain the entire agreement of the parties hereto and thereto in respect of the transactions contemplated hereby
and thereby, and all prior agreements among or between such parties, whether oral or written, including the Summary of Terms and
Conditions dated March 3, 2014 (as amended) delivered by United Realty Capital to Lender, are superseded by the terms of this Agreement
and the other Loan Documents. In addition, Borrower hereby agrees that it is not relying on and has not relied on any representations,
warranties or statements, whether written or oral, of the Lender, any Affiliate of the Lender or any other party in connection
with its decision to enter into the transaction described in this Agreement and the related Loan Documents and that this Agreement
and the related Loan Documents set forth the entire set of representations, warranties and understandings of the Borrower with
respect to the transaction described herein and in the Loan Documents.

 

Section 11.24          Servicer.

 

At the option of Lender,
the Loan may be serviced by a servicer (the “Servicer”) selected by Lender and Lender may delegate all or any
portion of its responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to a servicing agreement
(the “Servicing Agreement”) between Lender and Servicer.

 

    	- 98 -

    	 

    

 

Section 11.25          Joint
and Several Liability.

 

If more than one Person has
executed this Agreement as “Borrower,” the representations, covenants, warranties and obligations of all such Persons
hereunder shall be joint and several.

 

Section 11.26          Creation
of Security Interest.

 

Notwithstanding any other
provision set forth in this Agreement, the Note, the Mortgage or any of the other Loan Documents, Lender may at any time create
a security interest in all or any portion of its rights under this Agreement, the Note, the Mortgage and any other Loan Document
(including the advances owing to it) in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of
Governors of the Federal Reserve System.

 

Section 11.27          Assignments
and Participations.

 

(a)         Lender may
assign, without the consent of Borrower, to one or more Persons all or a portion of its rights and obligations under this Agreement
and the other Loan Documents.

 

(b)         Upon
such execution and delivery, from and after the effective date specified in the related assignment and acceptance agreement,
the assignee thereunder shall be a party hereto and shall have the rights and obligations of Lender hereunder to the extent
of its interest in the Loan.

 

(c)         Lender may
sell participations to one or more Persons in or to all or a portion of its rights and obligations under this Agreement; provided,
however, that (i) Lender’s obligations under this Agreement shall remain unchanged, (ii) Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations, (iii) Lender shall remain the holder of any
Note for all purposes of this Agreement, and (iv) Borrower shall continue to deal solely and directly with Lender in connection
with Lender’s rights and obligations under and in respect of this Agreement and the other Loan Documents.

 

Lender may, in connection
with any assignment or participation or proposed assignment or participation pursuant to this Section 11.27, disclose
to the assignee or participant or proposed assignees or participants, as the case may be, any information relating to Borrower
or any of its Affiliates or to any aspect of the Loan that has been furnished to Lender by or on behalf of the Borrower or any
of its Affiliates.

 

Section 11.28          Counterparts.

 

This Agreement may be executed
in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument.

 

    	- 99 -

    	 

    

 

Section 11.29          Set-Off.

 

In addition to any rights
and remedies of Lender provided by this Agreement and by law, Lender shall have the right in its sole discretion, without prior
notice to Borrower, any such notice being expressly waived by Borrower to the extent permitted by applicable law, upon any amount
becoming due and payable by Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set-off and appropriate
and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by Lender or any Affiliate thereof to or for the credit or the account of Borrower.
Lender agrees promptly to notify Borrower after any such set-off and application made by Lender; provided that the failure to give
such notice shall not affect the validity of such set-off and application.

 

[NO FURTHER TEXT ON THIS
PAGE]

                
 

    	- 100 -

    	 

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed by their duly authorized representatives, all as of the day and year first
above written.

 

LENDER:

 

/s/
United 945 82nd Parkway Fee, LLC

 

BORROWER:

 

/s/
Starwood Mortgage Capital LLC

 

    	 

    	 

    

 

SCHEDULE
I

                
 

RENT
ROLL

            
 

    	Sch. I-1

    	 

    

 

SCHEDULE II

            
 

INTENTIONALLY
OMITTED

            
 

    	Sch. II-1

    	 

    

 

SCHEDULE III

            
 

ORGANIZATIONAL
CHART

            
 

    	Sch. III-1

    	 

    

 

EXHIBIT A

            
 

LEGAL
DESCRIPTION

            
 

 

A-1exhibit4-1.htm

 

 

EXHIBIT 4.1

EXHIBIT A

 

COMMON STOCK PURCHASE WARRANT

TAPIMMUNE INC.

 

 

Warrant Shares: _______                                                                           Initial Exercise Date: August __, 2014

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the five (5) year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from TAPIMMUNE, INC., a Nevada corporation (the “Company”), up to ______ shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.                      Definitions.  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated August 11, 2014, among the Company and the purchasers signatory thereto.

 

Section 2.                      Exercise.

 

a)           Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise in the form annexed hereto. Within three (3) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice.  The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

  

  

  

 

b)           Exercise Price.  The exercise price per share of the Common Stock under this Warrant shall be $1.17, subject to adjustment hereunder (the “Exercise Price”).

 

c)           Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	
  

	
 (A) = the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

 

	
  

	
 (B) = the Exercise Price of this Warrant, as adjusted hereunder; and

 

	
  

	

 (X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

  

  

  

d)           Mechanics of Exercise.

 

i.      Delivery of Warrant Shares Upon Exercise.  The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is one (1) Trading Day after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”).   The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.

 

ii.      Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.      Rescission Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

  

  

  

 

iv.      Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise.  In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.  For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.      No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

  

  

  

 

vi.      Charges, Taxes and Expenses.  Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.  The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

vii.      Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

e)           Holder’s Exercise Limitations.  The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other  Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.   To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder

 

  

  

  

together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.   In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply.  Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

  

  

  

Section 3.                      Certain Adjustments.

 

a)           Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged.  Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)           [RESERVED]

 

c)           Subsequent Rights Offerings.  In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

  

  

  

 

d)           Pro Rata Distributions.  During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

e)           Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the

 

  

  

  

occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant).  For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

  

  

  

 

f)           Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

g)           Notice to Holder.

 

i.      Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.      Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.  To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.  The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

  

  

  

 

Section 4.                      Transfer of Warrant.

 

a)           Transferability.  This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full.  The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)           New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)           Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section 5.                      Miscellaneous.

 

a)           No Rights as Stockholder Until Exercise.  This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.

 

  

  

  

b)           Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)           Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

 

d)           Authorized Shares.

 

                The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

  

  

  

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e)           Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

 

f)           Restrictions.  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g)           Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies.  Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)           Notices.  Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

i)           Limitation of Liability.  No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

j)           Remedies.  The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

  

  

  

k)           Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder.  The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)           Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

m)           Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n)           Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

(Signature Page Follows)

  

  

  

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

 

	
TAPIMMUNE INC.

 

 

	
By:__________________________________________

     Name:

     Title:

 

  

  

  

NOTICE OF EXERCISE

TO:           TAPIMMUNE INC.

(1)      The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)      Payment shall take the form of (check applicable box):

 

[  ] in lawful money of the United States; or

 

[ ] if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3)      Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

The Warrant Shares shall be delivered to the following DWAC Account Number:

_______________________________

_______________________________

_______________________________

[SIGNATURE OF HOLDER]

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

  

  

  

 

 EXHIBIT B

ASSIGNMENT FORM

 (To assign the foregoing Warrant, execute this form and supply required information.  Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
Name:

	  
	  	
(Please Print)

	
Address:

	  
	  	
(Please Print)

	
Dated: _______________ __, ______

	  
	
Holder’s Signature:                                                                

	  
	
Holder’s Address:

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