Document:

Exhibit
10.5

 

THIRD AMENDMENT
TO

REAL ESTATE
PURCHASE AND SALE AGREEMENT

 

This THIRD AMENDMENT
TO REAL ESTATE PURCHASE AND SALE AGREEMENT (this "Third Amendment"), is made as of this 28th day of April, 2017
(the "Effective Date"), by and between MEDALIST FUND I-A, LLC, a Delaware limited liability company ("Seller");
and MEDALIST DIVERSIFIED HOLDINGS, L.P., a Delaware limited partnership, or its permitted assigns ("Buyer").

 

RECITALS

 

A.       Seller
and Buyer entered into that certain Real Estate Purchase and Sale Agreement effective as of June 1, 2016, as amended (collectively,
the "Agreement"), regarding the purchase of the Property, which is more particularly described in the Agreement.

 

B.       The
parties have agreed to modify and amend the Agreement as more particularly set forth in this Third Amendment.

 

AMENDMENT

 

NOW, THEREFORE,
in consideration of the mutual promises herein and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged by the Parties, the Parties agree as follows:

 

1.       Definitions.
All capitalized terms used this in this Third Amendment but not otherwise defined shall have their same meanings as set forth in
the Agreement.

 

2.       Closing
Date. The Closing Date shall be April 28, 2017.

 

3.       Post-Closing
Escrow. Notwithstanding the provisions of the Second Amendment, the parties have agreed that they will not have a Post-Closing
Escrow held by Escrow Agent. The provisions of the Second Amendment related to the Post-Closing Escrow are hereby deemed to be
of no further force or effect.

 

4.       Post-Closing
Agreement. In lieu of a Post-Closing Escrow, the Seller and Buyer agree to execute at closing a Post-Closing Agreement (the
 "Post-Closing Agreement") that will provide as follows: (i) Seller and Buyer shall each be responsible for the
payment of an amount equal to Three Hundred Fifty Thousand Dollars ($350,000.00) ("Seller's Contribution" and
 "Buyer's Contribution," respectively) toward the Lender Escrow Funds (as defined in the Post Closing Agreement);
(ii) Buyer shall return the Seller's Contribution to Seller if a Replacement Tenant executes a lease within 18 months following
the Closing and Lender releases the Lender Escrow Funds to Buyer; and (iii) if Buyer cannot find a replacement Tenant within 18-months
of the Closing and Lender will not agree to release the Lender Escrow Funds to Buyer, then Buyer's obligation to return the Seller's
Contribution to Seller shall be null and void and of no further force or effect. The foregoing provisions are intended only to
describe the Post-Closing Agreement, and in the event of any conflict between this Third Amendment and the Post-Closing Agreement,
the provisions of the Post-Closing Agreement shall control.

 

     

     

    

 

5.  Ratification.
The parties hereby ratify and affirm the Agreement, which Agreement shall remain in full force and effect, except as specifically
modified by this Third Amendment.

 

6.  Counterpart
Signatures. This Third Amendment may be signed in any number of counterparts, each of which shall be deemed to be an original
and all of which taken together shall constitute one and the same instrument.

 

7.  Facsimile
and PDF Signatures. Handwritten signatures to this Third Amendment transmitted by telecopy or electronic mail (for example,
through use of a Portable Document Format or "PDF" file) shall be valid and effective to bind the party so signing. Each
party to this Third Amendment shall be bound by its own telecopied or electronically transmitted handwritten signature and shall
accept the telecopied or electronically transmitted handwritten signature of the other party to this Third Amendment.

 

[Remainder of page intentionally
left blank; signatures to follow on next pages.]

 

     

     

    

 

IN WITNESS
WHEREOF, the parties hereto have executed this Third Amendment as of the date Second written above.

 

	 	SELLER:
	 	 
	 	MEDALIST FUND I-A, LLC, a
	 	Delaware limited liability company
	 	 
	 	By:	Medalist Fund Manager, Inc., a
	 	 	Virginia corporation
	 	Its: 	Manager

 

	 	By:	/s/ Thomas Messier
	 	Name:	Thomas Messier
	 	Title: 	Manager

  

	 	BUYER:
	 	 
	 	MEDALIST DIVERSIFIED HOLDINGS, L.P., a
	 	Delaware limited partnership
	 	 
	 	By:	 	/s/ William R. Elliott	 
	 	William R. Elliott, Authorized SignatoryExhibit 10.6

 

JEFFERIES
LOANCORE LLC

 

 

 

LOAN
AGREEMENT

 

Dated
as of February 10, 2016

 

Between

 

MEDALIST
FUND I-A, LLC

as
Borrower

 

And

 

JEFFERIES
LOANCORE LLC as

Lender

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	1.	DEFINITIONS;
    PRINCIPLES OF CONSTRUCTION	1
	 	1.1	Specific
    Definitions	1
	 	1.2	Index
    of Other Definitions	15
	 	1.3	Principles
    of Construction	17
	 	 	 	 
	2.	GENERAL
    LOAN TERMS	17
	 	2.1	The
    Loan	18
	 	2.2	Interest;
    Monthly Payments	18
	 	2.2.1	Generally	18
	 	2.2.2	Default
    Rate	18
	 	2.2.3	Taxes	18
	 	2.2.4	New
    Payment Date	19
	 	2.3	Loan
    Repayment	19
	 	2.3.1	Repayment	19
	 	2.3.2	Mandatory
    Prepayments	19
	 	2.3.3	Defeasance	22
	 	2.3.4	Optional
    Prepayments	22
	 	2.4	Release
    of Property	22
	 	2.4.1	Release
    on Defeasance	22
	 	2.4.2	Release
    on Payment in Full	23
	 	2.5	Payments
    and Computations	23
	 	2.5.1	Making
    of Payments	23
	 	2.5.2	Computations	23
	 	2.5.3	Late
    Payment Charge	23
	 	 	 	 
	3.	CASH
    MANAGEMENT AND RESERVES	24
	 	3.1	Cash
    Management Arrangements	24
	 	3.2	Required
    Repairs	24
	 	3.2.1	Completion
    of Required Repairs	24
	 	3.2.2	Required
    Repairs Reserves	24
	 	3.3	Taxes
    and Insurance	25
	 	3.4	Capital
    Expense Reserves	25
	 	3.5	Rollover
    Reserves & Stabilization Reserve	26
	 	3.6	Operating
    Expense Subaccount	29
	 	3.7	Casualty/Condemnation
    Subaccount	29
	 	3.8	Security
    Deposits	29
	 	3.9	Cash
    Collateral Subaccount	30
	 	3.10	Grant
    of Security Interest; Application of Funds	30
	 	3.11	Property
    Cash Flow Allocation	31
	 	 	 	 
	4.	REPRESENTATIONS
    AND WARRANTIES	32
	 	4.1	Organization;
    Special Purpose	32
	 	4.2	Proceedings;
    Enforceability	33

 

    i 

     

    

 

	
	4.3	No
    Conflicts	33
	 	4.4	Litigation	33
	 	4.5	Agreements	33
	 	4.6	Title	34
	 	4.7	No
    Bankruptcy Filing	35
	 	4.8	Full
    and Accurate Disclosure	35
	 	4.9	Tax
    Filings	35
	 	4.10	ERISA•
    No Plan Assets	36
	 	4.11	Compliance	36
	 	4.12	Major
    Contracts	37
	 	4.13	Federal
    Reserve Regulations; Investment Company Act: Bank Holding Company	37
	 	4.14	Easements•
    Utilities and Public Access	37
	 	4.15	Physical
    Condition	37
	 	4.16	Leases	38
	 	4.17	Fraudulent
    Transfer	39
	 	4.18	Ownership
    of Borrower	39
	 	4.19	Purchase
    Options	39
	 	4.20	Management
    Agreement	39
    
	 	4.21	Hazardous
    Substances	40
	 	4.22	Name:
    Principal Place of Business	40
	 	4.23	Other
    Debt	40
	 	4.24	Assignment
    of Leases and Rents	40
	 	4.25	Insurance	40
	 	4.26	FIRPTA	40
	 	4.28	Intellectual
    Property/Websites	41
	 	4.29	Operations
    Agreements	41
	 	4.30	Illegal
    Activity	41
	 	 	 	 
	5.	COVENANTS	41
	 	5.1	Existence	41
	 	5.2	Taxes
    and Other Charges	42
	 	5.3	Access
    to Property	42
	 	5.4	Repairs;
    Maintenance and Compliance; Alterations	42
	 	 	5.4.1
    	Repairs;
    Maintenance and Compliance	42
	 	 	5.4.2
    	Alterations	43
	 	5.5	Performance
    of Other Agreements	43
	 	5.6	Cooperate
    in Legal Proceedings	43
	 	5.7	Further
    Assurances	43
	 	5.8	Environmental
    Matters	44
	 	 	5.8.1
    	Hazardous
    Substances	44
	 	 	5.8.2
    	Environmental
    Monitoring	44
	 	 	5.8.3
    	0
    & M Program	46
	 	5.9	Title
    to the Property	46
	 	5.10	Leases	46

 

    ii 

     

    

 

	
	 	5.10.1	Generally	46
	 	 	5.10.2	Material
    Leases	46
	 	 	5.10.3	Minor
    Leases	48
	 	 	5.10.4	Additional
    Covenants with Respect to Leases	48

 

    iii 

     

    

 

	 	5.11	Estoppel Statement	49
	 	5.12	Property Management	49
	 	 	5.12.1	Management Agreement	50
	 	 	5.12.2	Termination of Manager	50
	 	5.13	Special Purpose Bankruptcy Remote Entity	50
	 	5.14  	[Intentionally Deleted]	50
	 	5.15	Change in Business or Operation of Property	50
	 	5.16	Debt Cancellation	50
	 	5.17	Affiliate Transactions	51
	 	5.18	Zoning	51
	 	5.19	No Joint Assessment	51
	 	5.20	Principal Place of Business	51
	 	5.21	Change of Name, Identity or Structure	51
	 	5.22	Indebtedness	51
	 	5.23	Licenses; Intellectual Property; Website	52
	 	 	5.23.1 Licenses	52
	 	 	5.23.2 Intellectual Property	52
	 	 	5.23.3 Website	52
	 	5.24	Compliance with Restrictive Covenants	52
	 	5.25	ERISA	52
	 	5.26	Prohibited Transfers	53
	 	 	5.26.1 Generally	53
	 	 	5.26.2 Transfer and Assumption	53
	 	5.27	Liens	57
	 	5.28	Dissolution	57
	 	5.29	Expenses	58
	 	5.30	Indemnity	59
	 	5.31	Patriot Act Compliance	60
	 	5.32	Approval of Major Contracts	61
	 	 	 	 
	6.	NOTICES AND REPORTING	61
	 	6.1  	Notices	61
	 	6.2 	Borrower Notices and Deliveries	62
	 	6.3 	Financial Reporting	63
	 	 	6.3.1	Bookkeeping	63
	 	 	6.3.2	Annual Reports	63
	 	 	6.3.3	Monthly/Quarterly Reports	64
	 	 	6.3.4	Other Reports	64
	 	 	6.3.5	Annual Budget	65
	 	 	6.3.6	Breach	65
	 	 	 	 
	7.	INSURANCE; CASUALTY; AND CONDEMNATION	65
	 	7.1 	Insurance	65
	 	 	7.1.1	Coverage	65
	 	 	7.1.2	Policies	68
	 	7.2  	Casualty	69
	 	 	7.2.1	Notice; Restoration	69
	 	 	7.2.2	Settlement of Proceeds	69

 

    iv 

     

    

 

	 	7.3 	Condemnation	70
	 	 	7.3.1	Notice; Restoration	70
	 	 	7.3.2	Collection of Award	70
	 	7.4  	Application of Proceeds or Award	71
	 	 	7.4.1	Application to Restoration	71
	 	 	7.4.2	Application to Debt	71
	 	 	7.4.3	 Procedure for Application to Restoration	72
	 	 	 	 
	8.	DEFAULTS	73
	 	8.1  	Events of Default	73
	 	8.2  	Remedies	74
	 	 	8.2.1	Acceleration	74
	 	 	8.2.2	Remedies Cumulative	75
	 	 	8.2.3	Severance	75
	 	 	8.2.4	Delay	76
	 	 	8.2.5  	Lender's Right to Perform	76
	 	 	 	 
	9.	SECONDARY MARKET PROVISIONS	76
	 	9.1  	Sale of Note and Secondary Market Transaction	76
	 	 	9.1.1	General; Borrower Cooperation	76
	 	 	9.1.2	Use of Information	77
	 	 	9.1.3	Borrower Obligations Regarding Disclosure Documents	77
	 	 	9.1.4	Borrower Indemnity Regarding Filings	78
	 	 	9.1.5	Indemnification Procedure	78
	 	 	9.1.6	Contribution	79
	 	9.2	Severance of Loan	79
	 	 	 	 
	10.	MISCELLANEOUS	80
	 	10.1 	Exculpation	80
	 	10.2 	Brokers and Financial Advisors	83
	 	10.3 	Retention of Servicer	83
	 	10.4 	Survival	84
	 	10.5 	Lender's Discretion; Rating Agency Review Waiver	84
	 	10.6 	Governing Law	85
	 	10.7 	Modification, Waiver in Writing	86
	 	10.8 	Trial by Jury	87
	 	10.9 	Headings/Schedules	87
	 	10.10 	Severability	87
	 	10.11 	Preferences	87
	 	10.12 	Waiver of Notice	87
	 	10.13 	Remedies of Borrower	88
	 	10.14 	Prior Agreements	88
	 	10.15 	Offsets, Counterclaims and Defenses	88
	 	10.16 	Publicity	88
	 	10.17 	No Usury	88
	 	10.18 	Conflict; Construction of Documents; Reliance	89
	 	10.19 	No Joint Venture or Partnership; No Third Party Beneficiaries	89
	 	10.20 	Yield Maintenance Premium	90
	 	10.21 	Assignments and Participations	90

 

    v 

     

    

 

	 	10.22	INTENTIONALLY
    DELETED	90
	 	10.23	Waiver
    of Marshalling of Assets	90
	 	10.24	Joint
    and Several Liability	90
	 	10.25	Creation
    of Security Interest	91
	 	10.26	Set-Off	91
	 	10.27	Counterparts	91
	 	10.28	Negation
    of Implied Right to Cure Events of Default	91

 

	Schedule
    1	Required
    Repairs	Sch.-1
	 	 	 
	Schedule
    2	Exceptions
    to Representations and Warranties	Sch.-2
	 	 	 
	Schedule
    3	Rent
    Roll	Sch.-3
	 	 	 
	Schedule
    4	Organization
    of Borrower	Sch.-4
	 	 	 
	Schedule
    5	Definition
    of Special Purpose Bankruptcy Remote Entity	Sch.-5
	 	 	 
	Schedule
    6	Intellectual
    Property/Websites	Sch.-6
	 	 	 
	Schedule
    7	REA	Sch.-7
	 	 	 
	Schedule
    8	Leasing
    Plan	Sch.-8

 

    vi 

     

    

 

LOAN
AGREEMENT

 

LOAN
AGREEMENT dated as of February 10, 2016 (as the same may be modified, supplemented, amended or otherwise changed, this "Agreement")
between MEDALIST FUND I-A, LLC, a Delaware limited liability company (together with its permitted successors and assigns, "Borrower"),
and JEFFERIES LOANCORE LLC, a Delaware limited liability company (together with its successors and assigns, "Lender").

 

		1.	DEFINITIONS;
                                         PRINCIPLES OF CONSTRUCTION

 

1.1
    Specific Definitions. The following terms have the meanings set forth below:

 

Affiliate:
as to any Person, any other Person (i) which directly or indirectly through one or more intermediaries Controls, or is Controlled
by, or is under common Control with, such Person; or (ii) which, directly or indirectly, beneficially owns or holds ten percent
(10%) or more of any class of stock or any other ownership interest in such Person; or (iii) ten percent (10%) or more of the
direct or indirect ownership of which is beneficially owned or held by such Person; or (iv) which is a member of the family (as
defined in Section 267(c)(4) of the Code) of such Person or which is a trust or estate, the beneficial owners of which are members
of the family (as defined in Section 267(c)(4) of the Code) of such Person; or (v) which directly or indirectly is a general partner,
controlling shareholder, managing member, officer, director, trustee or employee of such Person.

 

Approved
Capital Expenses: Capital Expenses incurred by Borrower, which Capital Expenses shall either be (i) included in the Approved Capital
Budget for the current calendar month or (ii) approved by Lender.

 

Approved
Leasing Expenses: actual out-of-pocket expenses incurred by Borrower and payable to (i) third parties that are not Affiliates
of Borrower or Guarantor or (ii) Affiliates of Borrower that have been approved by Lender in Lender's sole discretion, in each
case leasing space at the Property pursuant to 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, if applicable)
a budget for such tenant improvement costs and a schedule of leasing commission payments payable in connection therewith, or (C)
otherwise approved by Lender, which approval shall not be unreasonably withheld or delayed, and (ii) are substantiated by executed
Lease documents and brokerage agreements.

 

Approved
Major Lease Leasing Expenses: actual out-of-pocket expenses incurred by Borrower and payable to third parties that are not Affiliates
of Borrower or Guarantor in releasing space demised under a Major Lease at the Property pursuant to replacement 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, or (B) otherwise approved by Lender, which
approval shall not be unreasonably withheld or delayed, and (ii) are substantiated by executed Lease documents and brokerage agreements.

 

    	 	1	 

     

    

 

Approved
Operating Expenses: during a Cash Management Period, operating expenses incurred by Borrower which (i) are included in the Approved
Operating 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 or (iii) have been approved by Lender.

 

Available
Cash: as of each Payment Date during the continuance of a Cash Management Period, the amount of Rents, if any, remaining in the
Deposit Account after the application of all of the payments required under clauses (i) through (vi) of Section 3.1 1 (a)
hereof.

 

Business
Day: any day other than a Saturday, Sunday or any day on which commercial banks in New York, New York are authorized or required
to close.

 

Calculation
Date: the last day of each calendar quarter during the Term.

 

Capital
Expenses: expenses that are capital in nature or required under GAAP to be capitalized.

 

Cash
Management Period: shall commence upon Lender giving notice to the Clearing Bank of the occurrence of any of the following: (i)
the Stated Maturity Date, (ii) a Default or an Event of Default, or (iii) if, as of any Calculation Date, the DSCR is less than
1.1 Ox (a "DSCR Cash Management Period") or (iv) the commencement of a Lease Sweep Period; and shall end c upon Lender
giving notice to the Clearing Bank that the sweeping of funds into the Deposit Account may cease, which notice Lender shall only
be required to give if (l) the Loan and all other obligations under the Loan Documents have been repaid in full or (2) the Stated
Maturity Date has not occurred and (A) with respect to the matters described in clause (ii) above, such Event of Default has been
cured and no other Event of Default has occurred and is continuing or (B) with respect to the matter described in clause (iii)
above, Lender has determined that the Property has achieved a DSCR of at least 1.10x for two (2) consecutive Calculation Dates
or (C) with respect to the matter described in clause (iv) above, such Lease Sweep Period has ended.

 

Code:
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.

 

Control:
with respect to any Person, either (i) ownership directly or indirectly of forty-nine percent (49%) or more of all equity interests
in such Person or (ii) 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.

 

    	 	2	 

     

    

 

DSCR:
as of any date, the ratio calculated by Lender of (i) the Net Operating Income for the three (3)-month period ending with the
most recently completed calendar month to (ii) the scheduled Debt Service payments due under the Note with respect to such period.

 

Debt:
the unpaid Principal, all interest accrued and unpaid thereon, any Yield Maintenance Premium and all other sums due to Lender
in respect of the Loan or under any Loan Document.

 

Debt
Service: with respect to any particular period, the scheduled Principal and interest payments due under the Note in such period.

 

Default:
the occurrence of any event under any Loan Document which, with the giving of notice or passage of time, or both, would be an
Event of Default.

 

Default
Rate: a rate per annum equal to the lesser of (i) the maximum rate permitted by applicable law, or (ii) five percent (5%) above
the Interest Rate, compounded monthly.

 

Defeasance
Collateral: U.S. Obligations, which provide payments (i) on or prior to, but as close as possible to, all Payment Dates and other
scheduled payment dates, if any, under the Note after the Defeasance Date and up to and including the Stated Maturity Date, and
(ii) in amounts equal to or greater than the Scheduled Defeasance Payments; provided, however, in no event shall such payments,
in the aggregate, be less than the sum of (A) the then outstanding Principal amount of the Loan as of the Defeasance Date and
(B) one percent (1%) of the then outstanding Principal amount of the Loan as of the Defeasance Date.

 

Deposit
Bank: Wells Fargo Bank, National Association, or such other bank or depository selected by Lender in its discretion.

 

Eligible
Account: 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) (A) maintained with a federal or state-chartered depository institution or trust company
which complies with the definition of Eligible Institution or (B) if a Securitization has occurred, as to which Lender has received
a Rating Comfort Letter from each of the applicable Rating Agencies with respect to holding funds in such account, or (ii) a segregated
trust account or accounts (or subaccounts thereof) maintained with the corporate trust department of a federal depository institution
or state chartered depository institution subject to regulations regarding fiduciary funds on deposit similar to Title 12 of the
Code of Federal Regulations 9. I O(b), having in either case corporate trust powers, acting in its fiduciary capacity, and a combined
capital and surplus of at least $50,000,000 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.

 

    	 	3	 

     

    

 

Eligible
Institution: a depository institution insured by the Federal Deposit Insurance Corporation the short term unsecured debt obligations
or commercial paper of which are rated at least A-I by S&P, P-l by Moody's and F-l+ 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 (i) "AA" by S&P, (ii)
 "AA" and/or "Fl+" (for securities) and/or "AAAmmf” (for money market funds), by Fitch and (iii)
 "Aa2" by Moody's; provided, however, for the purposes of the Deposit Bank, the definition of Eligible Institution shall
have the meaning set forth in the Deposit Account Agreement.

 

ERISA:
the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder.

 

ERISA
Affiliate: means any trade or business (whether or not incorporated) which is a member of the same controlled group of corporations
or group of trades or businesses under common control with Borrower and/or Guarantor, or is treated as a single employer together
with Borrower and/or Guarantor under Section 414 of the Code or Title IV of ERISA.

 

Fiscal
Year: each twelve (12) month period commencing on January I and ending on December 3 1 during each year of the Term.

 

GAAP:
generally accepted accounting principles in the United States of America as of the date of the applicable financial report.

 

Gold's
Gym Lease: that certain Lease Agreement between Gastonia Fitness Group, Inc. and Virginia Avenue, LLC, dated October 22, 2010,
for 1 1,894 square feet, as previously assigned and amended.

 

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

 

Guarantor:
William Richard Elliott and Thomas Edward Messier, or any other Person
that now or hereafter guarantees any of Borrower's obligations hereunder or any other Loan Document.

 

Interest
Period: (i) the period from the date hereof through the first day thereafter that is the 5th day of a calendar month and (ii)
each period thereafter from the 6th day of each calendar month through the 5th day of the following calendar month; except that
the Interest Period, if any, that would otherwise commence before and end after the Maturity Date shall end on the Maturity Date.
Notwithstanding the foregoing, if Lender exercises its right to change the Payment Date to a New Payment Date in accordance with
Section 2.2.4 hereof, then from and after such election, each Interest Period shall be the period from the New Payment Date in
each calendar month through the day in the next succeeding calendar month immediately preceding the New Payment Date in such calendar
month.

 

    	 	4	 

     

    

 

Interest
Rate: a rate of interest equal to 4.70% per annum (or, when applicable pursuant to this Agreement or any other Loan Document,
the Default Rate).

 

Key
Principals: William Richard Elliott and Thomas Edward Messier.

 

Leases:
all leases and other agreements or arrangements heretofore or hereafter entered into affecting the use, enjoyment or occupancy
of, or the conduct of any activity upon or in, the Property or the Improvements, including any guarantees, extensions, renewals,
modifications or amendments thereof and all additional remainders, reversions and other rights and estates appurtenant thereunder.

 

Lease
Sweep Period: the period which shall commence and end as hereinafter provided.

 

A
Lease Sweep Period shall commence on the first Payment Date following the occurrence of any of the following:

 

(i)
        the date that is twelve (12) months prior to the end of the term of any Major Lease
(including any renewal terms), or

 

(ii)       the
date required under a Major Lease by which the applicable Major Tenant is required to give notice of its exercise of a renewal
option thereunder (and such renewal has not been so exercised); or

 

(iii)       any
Major Lease (or any material portion thereof) is surrendered, cancelled or terminated prior to its then current expiration date;
or

 

(iv)       any
Major Tenant shall discontinue its business at its premises (i.e., "goes dark") or give notice that it intends to discontinue
its business; or

 

(v)       the
occurrence and continuance (beyond any applicable notice and cure periods) of a default under any Major Lease by the applicable
Major Tenant thereunder; or

 

(vi)       the
occurrence of a Major Tenant Insolvency Proceeding.

 

    	 	5	 

     

    

 

A
Lease Sweep Period shall end upon the occurrence of any of the following:

 

(1)
with respect to a Lease Sweep Period caused by a matter described in clauses (i), (ii), (iii), or (iv) above, upon the earlier
to occur of (A) the date on which the subject tenant(s) irrevocably exercise its/their renewal or extension option(s) (or otherwise
enters into an extension agreement(s) with Borrower and acceptable to Lender) with respect to all of the space demised under the
subject Lease(s), and in Lender's judgment, sufficient funds have been accumulated in the Special Rollover Reserve Subaccount
(during the continuance of the subject Lease Sweep Period) to pay for all anticipated Approved Major Lease Leasing Expenses or
Approved Leasing Expenses (as the case may be) for such Lease(s) and any other anticipated expenses in connection with such renewal(s)
or extension(s), or (B) the date on which all of the space demised under the subject Lease(s) (or portion thereof) that gave rise
to the subject Lease Sweep Period has been fully leased pursuant to a replacement Lease or replacement Leases approved by Lender,
and entered into in accordance with Section 5.10 hereof, and all Approved Major Lease Leasing Expenses or Approved Leasing Expenses
(as the case may be) (and any other expenses in connection with the re-tenanting of such space(s)) have been paid in full;

 

(2) with
respect to a Lease Sweep Period caused by a matter described in clause (v) above, if the subject Major Tenant default has been
cured, and no other Major Tenant default has occurred for a period of six (6) consecutive months following such cure; or

 

(3) with
respect to a Lease Sweep Period caused by a matter described in clause (vi) above, if the applicable Major Tenant Insolvency Proceeding
has terminated and the applicable Major Lease has been affirmed, assumed or assigned in a manner satisfactory to Lender.

 

Lease
Termination Payments: (i) all fees, penalties, commissions or other payments made to Borrower in connection with or relating to
the rejection, buy-out, termination, surrender or cancellation of any Lease (including in connection with any bankruptcy proceeding),
(ii) any security deposits or proceeds of letters of credit held by Borrower in lieu of cash security deposits, which Borrower
is permitted to retain pursuant to the applicable provisions of any Lease and (iii) any payments made to Borrower relating to
unamortized tenant improvements and leasing commissions under any Lease.

 

Legal
Requirements: statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities
(including those regarding fire, health, handicapped access, sanitation, ecological, historic, zoning, environmental protection,
wetlands and building laws and the Americans with Disabilities Act of 1990, Pub. L. No. 89-670, 104 Stat. 327 (1990), as amended,
and all regulations promulgated pursuant thereto) affecting Borrower, any Loan Document or all or part of the Property or the
construction, ownership, use, alteration or operation thereof, whether now or hereafter enacted and in force, and all permits,
licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained
in any instrument, either of record or known to Borrower, at any time in force affecting all or part of the Property.

 

Lien:
any mortgage, deed of trust, lien (statutory or otherwise), pledge, hypothecation, easement, restrictive covenant, preference,
assignment, security interest, PACE Loan 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 part of the Property or any interest therein, or any direct or indirect interest
in Borrower or Sole Member, 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.

 

    	 	6	 

     

    

 

Loan
Documents: this Agreement and all other documents, agreements and instruments now or hereafter evidencing, securing or delivered
to Lender in connection with the Loan, including the following, each of which is dated as of the date hereof: (i) the Promissory
Note made by Borrower to Lender in the aggregate principal amount equal to the Loan (the "Note"), (ii) the Mortgage,
Assignment of Leases and Rents and Security Agreement made by Borrower (or the Deed of Trust, Assignment of Leases and Rents and
Security Agreement made by Borrower to a trustee, as the case may be) in favor of Lender which covers the Property (the "Mortgage"),
(iii) the Assignment of Leases and Rents from Borrower to Lender (the "Assignment of Leases and Rents"), (iv) the Assignment
of Agreements, Licenses, Permits and Contracts from Borrower to Lender, (v) the Clearing Account Agreement (the "Clearing
Account Agreement") among Borrower, Lender, Manager and the Clearing Bank, (vi) the Deposit Account Agreement (the "Deposit
Account Agreement") among Borrower, Lender, Manager and the Deposit Bank and (vii) the Guaranty of Recourse Obligations made
by Guarantor; as each of the foregoing may be (and each of the foregoing defined terms shall refer to such documents as they may
be) amended, restated, replaced, severed, split, supplemented or otherwise modified from time to time (including pursuant to Section
9.2 hereof).

 

Major
Contract: (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 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.

 

Major
Lease: that certain lease between Virginia Avenue, LLC and Gregg Appliances, Inc. dated February 28, 2006, as assigned to Borrower
and amended from time to time, that certain lease between The Ghazi Company, LLC and ISH Moore, Inc. dated December 30, 2005,
as assigned to Borrower and amended from time to time, and any other Lease which covers 20,000 or more rentable square feet of
the Improvements.

 

Major
Tenant: any tenant under either a Major Lease, or under one or more Leases (leased by such tenant and/or its Affiliates), which
when taken together cover in the aggregate 20,000 or more rentable square feet of the Improvements.

 

    	 	7	 

     

    

 

Major
Tenant Insolvency Proceeding: (A) the admission in writing by any Major Tenant of its inability to pay its debts generally, or
the making of a general assignment for the C benefit of creditors, or the instituting by any Major Tenant of any proceeding seeking
to adjudicate it insolvent or seeking a liquidation or dissolution, or the taking advantage by any Major Tenant of any Insolvency
Law (as hereinafter defined), or the commencement by any Major Tenant of a case or other proceeding naming it as debtor under
any Insolvency Law or the instituting of a case or other proceeding against or with respect to any Major Tenant under any Insolvency
Law or (B) the instituting of any proceeding against or with respect to any Major Tenant seeking liquidation of its assets or
the appointment of (or if any Major Tenant shall consent to or acquiesce in the appointment of) a receiver, liquidator, conservator,
trustee or similar official in respect of it or the whole or any substantial part of its properties or assets or the taking of
any corporate, partnership or limited liability company action in furtherance of any of the foregoing. As used herein, the term
 "Insolvency Law" shall mean Title Il of the United States Code (l I U.S.C. 101 et seq.) as the same has been or may
be amended or superseded from time to time, or any other applicable domestic or foreign liquidation, conservatorship, bankruptcy,
receivership, insolvency, reorganization, or any similar debtor relief laws affecting the rights, remedies, powers, privileges
and benefits of creditors generally.

 

Management
Agreement: the management agreement between Borrower and Manager, pursuant to which Manager is to manage the Property, as same
may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with Section 5.12 hereof.

 

Manager:
Shockoe Commercial Properties, LLC, a Virginia limited liability company, or any successor, assignee or replacement manager appointed
by Borrower in accordance with Section 5.12 hereof.

 

Material
Alteration: any alteration affecting structural elements of the Property the cost of which exceeds $250,000; provided, however,
that in no event shall (i) any Required Repairs, (ii) any tenant improvement work performed pursuant to any Lease existing on
the date hereof or entered into hereafter in accordance with the provisions of this Agreement, or (iii) alterations performed
as part of a Restoration, constitute a Material Alteration.

 

Material
Lease: all Leases which (A) individually or in the aggregate with respect to the same tenant and its Affiliates (i) cover more
than 10,000 square feet of the Improvements, or (ii) have a gross annual rent of more than seven percent (7%) of the total annual
Rents of the Property, (B) provide the tenant thereunder with an option or other preferential right to purchase all or any portion
of the Property, or (C) are entered into with a tenant who is an Affiliate of Borrower.

 

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

 

Minor
Lease: any Lease that is not a Material Lease.

 

    	 	8	 

     

    

 

Net
Operating Income: for any period, the net operating income of the Property C determined by Lender in its sole but reasonable discretion
and on a cash basis of accounting, after (x) deducting therefrom (i) deposits to (but not withdrawals from) any reserves required
under this Agreement, (ii) any Rents from tenants operating under bankruptcy protection or from tenants that are not open for
business (i.e., have "gone dark"), and (iii) non-recurring extraordinary items of income, and (y) making adjustments
for market vacancies, leasing costs and capital items.

 

Officer's
Certificate: a certificate delivered to Lender by Borrower which is signed by a senior executive officer of Borrower.

 

Operations
Agreements: the REA, and any other covenants, restrictions, easements, declarations or agreements of record relating to the construction,
operation or use of the Property, together with all amendments, modifications or supplements thereto.

 

Other
Charges: 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.

 

PACE
Loan: (x) any "Property-Assessed Clean Energy loan" or (y) any other indebtedness, without regard to the name given
to such indebtedness, which is (i) incurred for improvements to the Property for the purpose of increasing energy efficiency,
increasing use of renewable energy sources, resource conservation, or a combination of the foregoing, and (ii) repaid through
multi-year assessments against the Property.

 

Payment
Date: the 6th day of each calendar month or, upon Lender's exercise of its right to change the Payment Date in accordance with
Section 2.2.4 hereof, the New Payment Date (in either case, if such day is not a Business Day, the Payment Date shall be
the first Business Day thereafter). The first Payment Date hereunder shall be April 6, 2016.

 

Permitted
Encumbrances: (i) the Liens created by the Loan Documents, (ii) all Liens and other matters disclosed in the Title Insurance Policy,
(iii) Liens, if any, for Taxes or Other Charges not yet due and payable and not delinquent, (iv) any workers', mechanics' or other
similar Liens on the Property provided that any such Lien is bonded or discharged within thirty (30) days after Borrower first
receives notice of such Lien and (v) such other title and survey exceptions as Lender approves in writing in Lender's discretion.

 

Permitted
Open Prepayment Date: the Payment Date that occurs in January, 2021.

 

Permitted
Transfers:

 

(i)
a Lease entered into in accordance with the Loan Documents; or

 

(ii)
a Permitted Encumbrance; or

 

(iii)  a
Transfer and Assumption; or

 

    	 	9	 

     

    

 

(iv)  provided
that no Default or Event of Default shall then exist, a Transfer of an interest in Borrower or Sole Member to any Person provided
that:

 

(A)       such
Transfer shall not (x) cause the transferee (other than Key Principal ), together with its Affiliates, to acquire Control of Borrower
or Sole Member or to increase its direct or indirect interest in Borrower or in Sole Member to an amount which equals or exceeds
forty-nine percent (49%) or (y) result in Borrower or Sole Member no longer being Controlled by Key Principal(s);

 

(B)       after
giving effect to such Transfer, Key Principals shall continue to Control the day to day operations of Borrower through the ownership
of MEDALIST FUND MANAGER, INC., a Virginia corporation, or otherwise and shall continue to own equity interests (direct or indirect)
of Borrower; if such Transfer would cause the transferee to increase its direct or indirect interest in Borrower or in Sole Member
to an amount which equals or exceeds ten percent (10%), Lender shall have approved in its reasonable discretion such proposed
transferee, which approval shall be based upon Lender's satisfactory determination as to the reputable character and creditworthiness
of such proposed transferee, as evidenced by credit and background checks performed by Lender and such other financial statements
and other information reasonably requested by Lender;

 

(D)       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; and

 

(E)       the
legal and financial structure of Borrower and its members and the single purpose nature and bankruptcy remoteness of Borrower
and its members after such Transfer, shall satisfy Lender's then current applicable underwriting criteria and requirements;

 

(v)
        a REIT Transfer pursuant to Section 5.26.2(d).

 

    	 	10	 

     

    

 

Person:
any individual, corporation, partnership, limited liability company, joint venture, estate, trust, unincorporated association,
any other person or entity, and any federal, state, county or municipal government or any bureau, department or agency thereof
and any fiduciary acting in such capacity on behalf of any of the foregoing.

 

Physical
and Economic Occupancy: tenants (a) are financially solvent and are not the subject of any bankruptcy and/or insolvency proceeding;
(b) have assumed occupancy of the Improvements and are open for business (and have not discontinued their operations, "gone
dark" or vacated their premises), and/or have not provided notice of their intent to discontinue their operations, go dark,
or vacate their premises; (c) have not terminated their Lease and/or C given notice of intent to terminate; (d) have commenced
paying full rent (with no remaining free rent concession periods in effect or remaining) pursuant to Leases acceptable to Lender
in accordance with the terms of this Agreement; all as reasonably determined by Lender based on any such documentation that Lender
reasonably requires (including, without limitation, tenant estoppel certificates and operating statements for the Property certified
by Borrower).

 

Physical
Conditions Report: that certain Property Condition Assessment Report, prepared by AEI Consultants in favor of Lender.

 

Plan:
(i) an employee benefit or other plan established or maintained by Borrower or any ERISA Affiliate or to which Borrower or any
ERISA Affiliate makes or is obligated to make contributions and (ii) which is subject to Title IV of ERISA or Section 302 of ERISA
or Section 412 of the Code.

 

Pooling
and Servicing Agreement: any pooling and servicing agreement or similar agreement entered into as a result of a Secondary Market
Transaction.

 

Property:
the parcel of real property and Improvements thereon owned by Borrower and encumbered by the Mortgage; together with all rights
pertaining to such real property and Improvements, and all other collateral for the Loan as more particularly described in the
Granting Clauses of the Mortgage and referred to therein as the Trust Property. The Property is located in Gastonia, North Carolina.

 

Rating
Agency: prior to the final Securitization of the Loan (or if a Securitization has not occurred), each of Standard & Poor's,
a division of The McGraw-Hill Companies, Inc. ("S&P"), Moody's Investors Service, Inc. ("Moody's"), Fitch,
Inc., a division of Fitch Ratings Ltd. ("Fitch"), DBRS, Inc. and Morningstar, Inc. or any other nationally-recognized
statistical rating organization which has been designated by Lender, and after the final Securitization of the Loan, any of the
foregoing that have rated any of the securities issued in connection with the Securitization.

 

Rating
Comfort Letter: a letter issued by each of the applicable Rating Agencies which confirms that the taking of the action referenced
to therein will not result in any qualification, withdrawal or downgrading of any existing ratings of Securities created in a
Secondary Market Transaction.

 

    	 	11	 

     

    

 

REA:
collectively, those certain agreements more particularly described on Schedule 7 attached hereto and made a part hereof,
as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms of this
Agreement.

 

Release
Date: the earlier to occur of (i) the thirty sixth (36th) Payment Date of the Term and (ii) the date that is two (2) years from
the "startup day" (within the meaning of Section 860G(a)(9) of the Code) of the REMIC Trust established in connection
with the final Secondary Market Transaction involving this Loan.

 

REMIC
Trust: a "real estate mortgage investment conduit" within the meaning of Section 860D of the Code that holds the Note.

 

Rents:
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 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 agents
or employees and proceeds, if any, from business interruption or other loss of income insurance.

 

Scheduled
Defeasance Payments: the Monthly Interest Payment Amounts required under the Note for all Payment Dates occurring after the Defeasance
Date (including the outstanding Principal balance on the Note as of the Stated Maturity Date).

 

Security
Agreement: a security agreement in form and substance that would be satisfactory to Lender (in Lender's sole but good faith discretion)
pursuant to which Borrower grants Lender a perfected, first priority security interest in the Defeasance Collateral Account and
the Defeasance Collateral.

 

Servicer:
a servicer selected by Lender to service the Loan, including any "master servicer" or "special servicer" appointed
under the terms of any Pooling and Servicing Agreement.

 

Sole
Member: Medalist Fund I, LLC, a Delaware limited liability company, the sole member of Borrower.

 

    	 	12	 

     

    

 

State:
the state in which the Property is located.

 

Stated
Maturity Date: March 6, 2021, as such date may be changed in accordance with Section 2.2.4 hereof.

 

Survey:
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.

 

Taxes:
all real estate and personal property taxes, assessments, water rates or sewer rents, maintenance charges, impositions, vault
charges and license fees, now or hereafter levied or assessed or imposed against all or part of the Property. In no event shall
any PACE Loan be considered a Tax for purposes of this Agreement.

 

Term:
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: the 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:
(i) any sale, conveyance, transfer, encumbrance, pledge, hypothecation, lease or assignment, or the entry into any agreement to
sell, convey, transfer, encumber, pledge, hypothecate, lease or assign, whether by law or otherwise, of, on, in or affecting (x)
all or part of the Property (including any legal or beneficial direct or indirect interest therein), (y) any direct or indirect
interest in Borrower (including any profit interest), or (z) any direct or indirect interest in Sole Member, (ii) enter into or
subject the Property to a PACE Loan or (iii) any change of Control of Borrower or Sole Member. For purposes hereof, (i) a Transfer
of an interest in Borrower or Sole Member shall be deemed to include (A) if Borrower or Sole Member or the controlling shareholder
of Borrower or Sole Member 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 in one or a series of transactions by which an aggregate of more than ten percent (10%) of such
corporation's stock shall be vested in a party or parties who are not now stockholders or any change in the control of such corporation
and (B) if Borrower, Sole Member or controlling shareholder of Borrower or Sole Member 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 (ii) a change of Control of Borrower or Sole Member
shall be deemed to have occurred if (Y) 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 Sole Member) to
take some action or to prevent, restrict or impede Borrower (or Sole Member) from taking some action which, in either case, Borrower
(or Sole Member) could take or could refrain from taking were it not for the rights of such individuals or (Z) the individual
or entity or group of individuals or entities that Control Borrower (and Sole Member) as described in clause (Y) ever cease to
Control the day to day operations of Borrower or own at least twenty percent (20%) of all equity interests (direct or indirect)
in Borrower (and Sole Member).

 

    	 	13	 

     

    

 

UCC:
the Uniform Commercial Code as in effect in the State or the state in which any of the Cash Management Accounts are located, as
the case may be.

 

U.S.
Lease: that certain U.S. Government Lease for Real Property between the United States of America and Virginia Avenue, LLC dated
August 12, 2010, as previously assigned and amended.

 

U.S.
Obligations: obligations that are "government securities" within the meaning of Section 2(a)(16) of the Investment Company
Act of 1940, as amended that are not subject to prepayment, call or early redemption and that are acceptable to the applicable
Rating Agencies.

 

Welfare
Plan: an employee welfare benefit plan, as defined in Section 3(1) of ERISA.

 

Yield
Maintenance Premium: an amount equal to the greater of (A) the present value as of the Prepayment Date (as defined below) of the
remaining scheduled payments of principal and interest from the Prepayment Date through the Stated Maturity Date on the Principal
amount of the Loan being prepaid (including an amount equal to the outstanding principal balance on the Principal amount of the
Loan being prepaid on the Stated Maturity Date) determined by discounting such payments at the Discount Rate (as defined below)
less the Principal amount of the Loan being prepaid and (B) three percent (3%) of the Principal amount of the Loan being prepaid
as of the Prepayment Date. As used in this definition, (i) the term "Prepayment Date" means the date on which the applicable
prepayment is made; (ii) the term "Discount Rate" is the rate which, when compounded monthly, is equivalent to the Treasury
Rate (as defined below) when compounded semi-annually. The "Treasury Rate" is the yield calculated by the linear interpolation
of the yields, as reported in the Federal Reserve Statistical Release H. 15 Selected Interest Rates (the "Release")
under the heading "U.S. Government Securities", and the subheading "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 that the Release is no longer published, Lender shall select
a comparable publication to determine the Treasury Rate in its reasonable discretion. Lender shall notify Borrower of the amount
and the basis of determination of the required prepayment consideration. Lender shall not be obligated to accept any prepayment
of the principal balance of this Loan unless it is accompanied by the prepayment consideration due O in connection therewith.
The calculation of the Yield Maintenance Premium shall be made by Lender and shall, absent manifest error, be final, conclusive
and binding upon the parties.

 

    	 	14	 

     

    

 

1.2
Index of Other Definitions. The following terms are defined in the sections or Loan Documents indicated below:

 

"Affiliated
REIT" - 5.26.2(d)

"Annual
Budget " - 6.3.5

"Applicable
Similar Law " - 4. I O(b)

"Applicable
Taxes " - 2.2.3

"Approved
Annual Budget " - 6.3.5

"Approved
Capital Budget " - 6.3.5

"Approved
Operating Budget " - 6.3.5

"Assignment
of Leases and Rents " - 1.1 (Definition of Loan Documents) "Award" - 7.3.2

"Bankruptcy
Proceeding" - 4.7

"Borrower
's Recourse Liabilities " - 10. I

"Broker
 " - 10.2

"Capital
Reserve Subaccount " - 3.4

"Cash
Collateral Subaccount " - 3.9

"Cash
Management Accounts " - 3. I O

"Casualty
 " - 7.2. I

"Casualty/Condemnation
Prepayment " - 2.3.2

"Casualty/Condemnation
Subaccount " - 3.7

'Clearing
Account " - 3.1

"Clearing
Account Agreement " - 1.1 (Definition of Loan Documents)

"Clearing
Bank" - 3. I

"Condemnation
 " - 7.3. I

"Defeasance
Collateral Account " - 2.3.3

"Defeasance
Event " - 2.3.3

"Defeasance
Date " 2.3.3 "Delaware Act " - Schedule 5

"Deposit
Account " - 3. I

"Deposit
Account Agreement " - 1.1 (Definition of Loan Documents) "Disclosure Document " - 9. I .2

"DSCR
Cash Management Period" - 1.1 (Definition of Cash Management Period)

"Easements
 " - 4.14

"Embargoed
Person " - 5.31 (c)

"Endorsement
 " - 5.26.2

"Environmental
Laws " - 4.21

'Equipment
 " - Mortgage

"Event
of Default " - 8. I

"Exchange
Act" - 9. I .2

"Fitch
 " - 1.1 (Definition of Rating Agency)

"Government
Lists " - 5.31

"Hazardous
Substances " - 4.21

 

    	 	15	 

     

    

 

"Improvements
 " - Mortgage

"Indemnified
Liabilities " - 5.30

"Indemnified
Party " - 5.30

"Independent
Director " - Schedule 5

"Insurance
Premiums " - 7. I .2

"Insured
Casualty " - 7.2.2

"Intellectual
Property " - 4.28

"Issuer
 " - 9. I .3

"Key
Gold's Gyn Lease Premises” - 3.5(d)

"Late
Payment Charge " - 2.5.3

"Lender
Group " - 9. I .3

"Lender's
Consultant" - 5.8 1

"Liabilities
 " - 9. I .3

"Licenses
 " - 4.1 1

"Loan
 " - 2. I

"Monthly
Interest Payment Amount" - 2.2. I

"Moody's
 " - 1 .1 (Definition of Rating Agency)

"Mortgage
 " - 1 .1 (Definition of Loan Documents)

"Nationally
Recognized Service Company " - Schedule 5

"Nov
Payment Date " - 2.2.4

"New
REIT Members " - 5.26.2(d)

"Note
 " - 1.1 (Definition of Loan Documents)

"Notice
 " - 6.1

"O
 & M Program " - 5.8.3

"OFAC"
- 5.31

"Operating
Expense Subaccount ' 3.6

"Patriot
Act " - 5.31

"Patriot
Act Offense " - 5.31

"Permitted
Indebtedness " - 5.22

"Permitted
Investments " - Deposit Account Agreement

"Policies
 " - 7.1.2

"Principal
 " - 2. I

"Proceeds
 " - 7.2.2

"Proposed
Material Lease " - 5.10.2

"Provided
Information " - 9. I . I

"Qualified
Carrier " - 7. I . I

"Registration
Statement " - 9. I .3

"REIT
SPE" - 5.26.2(d)

"REIT
Transfer " - 5.26.2(d)

"Remedial
Work" - 5.8.2

"Rent
Roll" - 4.16

"Required
Records " - 6.3.6

"Required
Repairs " - 3.2. I

"Required
Repairs Subaccount" - 3.2.2

 

    	 	16	 

     

    

 

"Restoration
 " - 7.4. I

"Review
Waiver" - 10.5

"Rollover
Reserve Subaccount " - 3.5

"S&P
1 .1 (Definition of Rating Agency)

"Secondary
Market Transaction " - 9. I . I

"Securities
 " - 9. I .1

"Securities
Act " - 9. I .2

"Securitization
 " - 9. I .1

"Security
Deposit Subaccount" - 3.8

"Servicing
Agreement " - 10.3

"Significant
Casualty " - 7.2.2

"Single
Member Bankruptcy Remote LLC " - Schedule 5

"Special
Member"- Schedule 5

"Special
Purpose Bankruptcy Remote Entity " - 5.13

"Special
Rollover Reserve Subaccount " - 3.5

"Springing
Recourse Evenl " - 10.1

"Stabilization
Reserve Amount " - 3.5(d)

"Stabilization
Subaccount " - 3.5(d)

"Subaccounts
 " - 3. I

"Successor
Borrower " - 2.3.3

"Tax
and Insurance Subaccount " - 3.3

"Toxic
Mold" -4.21

"Transfer
and Assumption " - 5.26

"Transferee
Borrower " - 5.26

"Underwriter
Group " - 9. I .3

"
Underwriters " - 9. I .3

"Unimproved
Premises " - 3.5

"Unimproved
Premises Reserve Amount " - 3.5

 

1.3
Principles of Construction. Unless otherwise specified, (i) all references to sections and schedules are to those in this
Agreement, (ii) the words "hereof, herein" and "hereunder" and words of similar import refer to this Agreement
as a whole and not to any particular provision, (iii) all definitions are equally applicable to the singular and plural forms
of the terms defined, (iv) the word "including" means "including but not limited to," and (v) accounting terms
not specifically defined herein shall be construed in accordance with GAAP.

 

		2.	GENERAL LOAN TERMS

 

2.1
The Loan. Subject to and upon the terms and conditions set forth herein, Lender is making a loan (the "Loan")
to Borrower on the date hereof, in the original principal amount of FOURTEEN MILLION TWO HUNDRED SEVENTY-FIVE THOUSAND AND NO/IOO
DOLLARS ($14,275,000.00) (the "Principal"), which shall mature on the Stated Maturity Date. Borrower acknowledges receipt
of the Loan, the proceeds of which are being and shall be used to (i) repay and discharge existing loans relating to the Property,
(ii) fund certain of the Subaccounts, and (iii) pay transaction costs. Any excess proceeds may be used for any lawful purpose.
Borrower shall receive only one borrowing hereunder in respect of the Loan and no amount repaid in respect of the Loan may be
reborrowed. The Loan shall be evidenced by the C Note and shall be repaid in accordance with the terms of this Agreement, the
Note and the other Loan Documents.

 

    	 	17	 

     

    

 

2.2         Interest:
Monthly Payments.

 

2.2.1
Generally.

 

(a)       From
and after the date hereof, interest on the unpaid Principal shall accrue at the Interest Rate and be due and payable as hereinafter
provided. On the date hereof, Borrower shall pay interest on the unpaid Principal from the date hereof through and including March
5, 2016.

 

(b)       On
April 6, 2016 and each Payment Date thereafter through and including the Payment Date occurring on February 69 2021, Borrower
shall pay interest on the unpaid Principal accrued at the Interest Rate during the Interest Period immediately preceding such
Payment Date (collectively, the "Monthly Interest Payment Amount").

 

(c)       All
accrued and unpaid interest and unpaid Principal shall be due and payable on the Maturity Date. If the Loan is repaid on any date
other than on a Payment Date (whether prior to or after the Stated Maturity Date), Borrower shall also pay interest that would
have accrued on such repaid Principal at the Interest Rate to but not including the next Payment Date.

 

2.2.2
Default Rate. After the occurrence and during the continuance of an Event of Default, the entire unpaid Debt shall bear
interest at the Default Rate, calculated from the date such payment was due or such underlying Default shall have occurred without
regard to any grace or cure periods contained herein, and shall be payable upon demand from time to time, to the extent permitted
by applicable law.

 

2.2.3
Taxes. Any and all payments by Borrower hereunder and under the other Loan Documents shall be made free and clear of and
without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto, excluding taxes imposed on Lender's income, and franchise taxes imposed on Lender by the law or regulation
of any Governmental Authority (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities
being hereinafter referred to in this Section 2.2.3 as "Applicable Taxes"). If Borrower shall be required by
law to deduct any Applicable Taxes from or in respect of any sum payable hereunder to Lender, the following shall apply: (i) the
sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable
to additional sums payable under this Section 2.2.3), Lender receives an amount equal to the sum it would have received
had no such deductions been made, (ii) Borrower shall make such deductions and (iii) Borrower shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance with applicable law. Payments pursuant to this Section
2.2.3 shall be made within ten (10) days after the date Lender makes written demand therefor.

 

    	 	18	 

     

    

 

2.2.4
New Payment Date. Lender shall have the right, to be exercised not more than once during the term of the Loan, to change
the Payment Date to a date not earlier than the sixth day of each month (a "New Payment Date"), on thirty (30) days'
written notice to Borrower; provided, however, that any such change in the Payment Date: (i) shall not modify the amount of regularly
scheduled monthly principal and interest payments, except that the first payment of principal and interest payable on the New
Payment Date shall be accompanied by interest at the interest rate herein provided for the period from the Payment Date in the
month in which the New Payment Date first occurs to the New Payment Date, and (ii) shall change the Stated Maturity Date to the
New Payment Date occurring in the month set forth in the definition of Stated Maturity Date.

 

2.3
          Loan Repayment.

 

2.3.1
Repayment. Borrower shall repay the entire outstanding principal balance of the Loan in full on the Maturity Date, together
with interest thereon to (but excluding) the date of repayment and any other amounts due and owing under the Loan Documents. Borrower
shall have no right to prepay or defease all or any portion of the Principal except in accordance with Section 2.3.2 below,
Section 2.3.3 below and Section 2.3.4 below. Except during the continuance of an Event of Default, all proceeds
of any repayment, including any prepayments of the Loan, shall be applied by Lender as follows in the following order of priority:
First, accrued and unpaid interest at the Interest Rate; Second, to Principal; and Third, to any other amounts then due and owing
under the Loan Documents. If prior to the Stated Maturity Date the Debt is accelerated by reason of an Event of Default, then
Lender shall be entitled to receive, in addition to the unpaid Principal and accrued interest and other sums due under the Loan
Documents, an amount equal to the Yield Maintenance Premium applicable to such Principal so accelerated. During the continuance
of an Event of Default, all proceeds of repayment, including any payment or recovery on the Property (whether through foreclosure,
deed-in-lieu of foreclosure, or otherwise) shall, unless otherwise provided in the Loan Documents, be applied in such order and
in such manner as Lender shall elect in Lender's discretion.

 

2.3.2
Mandatory Prepayments. The Loan is subject to mandatory prepayment in certain instances of Insured Casualty or Condemnation
(each a "Casualty/Condemnation Prepayment"), in the manner and to the extent set forth in Section 7.4.2 hereof.
Each Casualty/Condemnation Prepayment, after deducting Lender's costs and expenses (including reasonable attorneys' fees and expenses)
in connection with the settlement or collection of the Proceeds or Award, shall be applied in the same manner as repayments under
Section 2.3. I above, and if such Casualty/Condemnation Prepayment is made on any date other than a Payment Date, then
such Casualty/Condemnation Prepayment shall include interest that would have accrued on the Principal prepaid to but not including
the next Payment Date. Provided that no Event of Default is continuing, any such mandatory prepayment under this Section 2.3.2
shall be without the payment of the Yield Maintenance Premium. Notwithstanding anything to the contrary contained herein,
each Casualty/Condemnation Prepayment shall be applied in inverse order of maturity and shall not extend or postpone the due dates
of the monthly installments due under the Note or this Agreement, or change the amounts of such installments.

 

    	 	19	 

     

    

 

2.3.3
Defeasance:

 

(a)
Conditions to Defeasance. Provided no Event of Default shall be continuing, Borrower shall have the right after the Release
Date and prior to the Permitted Open Prepayment Date to voluntarily defease the entire amount of the Principal and obtain a release
of the Lien of the Mortgage by providing the Defeasance Collateral (a "Defeasance Event"), subject to the satisfaction
of the following conditions precedent:

 

(i)       Borrower shall give Lender not less than thirty (30) days prior written notice specifying a date (the "Defeasance Date")
on which the Defeasance Event is to occur.

 

(ii)       Borrower
shall pay to Lender (A) all payments of Principal and interest due on the Loan to and including the Defeasance Date and (B) all
other sums, then due under the Note, this Agreement and the other Loan Documents;

 

(iii)       Borrower
shall, at Lender's option, either (A) deposit the Defeasance Collateral into the Defeasance Collateral Account and otherwise comply
with the provisions of subsections (b) and (c) of this Section 2.3.3 or (B) pay to Lender the amount required to purchase
the Defeasance Collateral, in which case Lender shall purchase the Defeasance Collateral and deposit the Defeasance Collateral
into the Defeasance Collateral Account;

 

(iv)       Borrower
shall execute and deliver to Lender a Security Agreement in respect of the Defeasance Collateral Account and the Defeasance Collateral;

 

(v)       Borrower
shall deliver to Lender an opinion of counsel for Borrower that is standard in commercial lending transactions and subject only
to customary qualifications, assumptions and exceptions opining, among other things, that (A) Lender has a legal and valid perfected
first priority security interest in the Defeasance Collateral Account and the Defeasance Collateral, and (B) if a Securitization
has occurred, the REMIC Trust formed pursuant to such 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 a Defeasance Event pursuant to
this Section 2.3.3;

 

(vi)       Borrower
shall deliver to Lender and the Rating Agencies a Rating Comfort Letter as to the Defeasance Event (if required pursuant to a
Pooling and Servicing Agreement from and after the occurrence of a Secondary Market Transaction);

 

(vii)       Borrower
shall deliver an Officer's Certificate certifying that the requirements set forth in this Section 2.3.3 have been satisfied;

 

    	 	20	 

     

    

 

(viii)       Borrower
shall deliver a certificate of a nationally recognized public accounting firm acceptable to Lender certifying that (A) the Defeasance
Collateral will generate monthly amounts equal to or greater than the Scheduled Defeasance Payments, (B) the revenue from the
Defeasance Collateral will be applied within four (4) months of receipt towards payments of Debt Service, (C) the securities that
comprise the Defeasance Collateral are not subject to prepayment, call or early redemption and (D) the interest income to O Borrower
(or the Successor Borrower, if applicable) from the Defeasance Collateral will not in any tax year exceed the interest expense
associated with the defeased Loan;

 

(ix)       Borrower
shall deliver such other certificates, opinions, documents and instruments as Lender may reasonably request; and

 

(x)       Borrower
shall pay all costs and expenses of Lender incurred in connection with the Defeasance Event, including Lender's reasonable attorneys'
fees and expenses and, if a Securitization has occurred, Rating Agency fees and expenses:

 

(xi)       INTENTIONALLY
DELETED.

 

(b)       Defeasance
Collateral Account. On or before the date on which Borrower delivers the Defeasance Collateral, Borrower shall open at any
Eligible Institution the defeasance collateral account (the "Defeasance Collateral Account") which shall at all times
be an Eligible Account. The Defeasance Collateral Account shall contain only (i) Defeasance Collateral, and (ii) cash from interest
and principal paid on the Defeasance Collateral. All cash from interest and principal payments paid on the Defeasance Collateral
shall be paid over to Lender on each Payment Date and applied first to accrued and unpaid interest and then to Principal. Any
cash from interest and principal paid on the Defeasance Collateral not needed to pay accrued and unpaid interest or Principal
shall be retained in the Defeasance Collateral Account as additional collateral for the Loan. Borrower shall cause the Eligible
Institution at which the Defeasance Collateral is deposited to enter an agreement with Borrower and Lender, satisfactory to Lender
in its sole discretion, pursuant to which such Eligible Institution shall C agree to hold and distribute the Defeasance Collateral
in accordance with this Agreement. The Successor Borrower shall be the owner of the Defeasance Collateral Account and shall report
all income accrued on Defeasance Collateral for federal, state and local income tax purposes in its income tax return. Borrower
shall prepay all cost and expenses associated with opening and maintaining the Defeasance Collateral Account. Lender shall not
in any way be liable by reason of any insufficiency in the Defeasance Collateral Account.

 

(c)       Successor
Borrower. In connection with a Defeasance Event under this Section 2.3.3, Borrower shall designate an Affiliate of
Lender as a successor entity (the "Successor Borrower") which shall be a Special Purpose Bankruptcy Remote Entity. Borrower
shall transfer and assign all obligations, rights and duties under and to the defeased Note, together with the Defeasance Collateral
to such Successor Borrower. Such Successor Borrower shall assume the obligations under the Note and the Security Agreement and
Borrower shall be relieved of its obligations under such documents. Borrower shall pay a minimum of $1,000 to any such Successor
Borrower as consideration for assuming the obligations under the Note and the Security Agreement. As a condition to such assignment
and assumption, Borrower shall 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 and the Security Agreement, as so assumed, are enforceable
against such successor entity in accordance with their respective terms. Borrower shall pay all costs and expenses incurred by
Lender, including Lender's attorney's fees and expenses, incurred in connection therewith.

 

    	 	21	 

     

    

 

(d)
       Appointment as Attorney in Fact. Upon the defeasance of the Loan in accordance with clauses
(a). (b) and of this Section 2.3.3, Borrower shall have no further right to prepay the Note pursuant to the other
provisions of this Section 2.3.3 or otherwise. In connection with the conditions set forth in this Section
2.3.3, 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 2.3.3.

 

2.3.4
Optional Prepayments. From and after the Permitted Open Prepayment Date, Borrower shall have the right to prepay the Loan
in whole (but not in part), provided that Borrower gives Lender at least fifteen (15) days' prior written notice thereof. If any
such prepayment is not made on a Payment Date, Borrower shall also pay interest that would have accrued on such prepaid Principal
to, but not including, the next Payment Date. Any such prepayment shall be made without payment of the Yield Maintenance Premium.

 

2.4
          Release of Property.

 

20.4.1
Release on Defeasance. If Borrower has elected to defease the Note and the requirements of Section 2.3.3 above and this
Section 2.4 have been satisfied, the Property C shall be released from the Lien of the Mortgage and the Defeasance Collateral
pledged pursuant to the Security Agreement shall be the sole source of collateral securing the Note. In connection with the release
of the Lien, Borrower shall submit to Lender, not less than fifteen (15) days prior to the Defeasance Date (or such shorter time
as is acceptable to Lender in its sole discretion), a release of Lien (and related Loan Documents) for execution by Lender. Such
release shall be in a form appropriate in the jurisdiction in which the Property is located and contain standard provisions protecting
the rights of the releasing lender. In addition, Borrower shall provide all other documentation Lender reasonably requires to
be delivered by Borrower in connection with such release, together with an Officer's Certificate certifying that such documentation
(i) is in compliance with all Legal Requirements, and (ii) will effect such release in accordance with the terms of this Agreement.
Borrower shall pay all costs, taxes and expenses associated with the release of the Lien of the Mortgage, including Lender's reasonable
attorneys' fees. Borrower, pursuant to the Security Agreement, shall authorize and direct that the payments received from Defeasance
Collateral be made directly to Lender and applied to satisfy the obligations under the Loan Documents, including payment in full
of the unpaid Principal as of the Stated Maturity Date.

 

    	 	22	 

     

    

 

2.4.2
Release on Payment in Full. Lender shall, upon the written request and at the expense of Borrower, upon payment in full
of the Debt in accordance herewith, release or, if requested by Borrower, assign to Borrower's designee (without any representation
or warranty by and without any recourse against Lender whatsoever), the Lien of the Loan Documents if not theretofore released.
In connection with the release of the Lien, Borrower shall submit to Lender, not less than thirty (30) days prior to the date
of repayment (or such shorter time as is acceptable to Lender in its sole discretion), a release of Lien (and related Loan Documents)
for execution by Lender. Such release shall be in a form appropriate in the jurisdiction in which the Property is located and
contain standard provisions protecting the rights of the releasing lender. In addition, Borrower shall provide all other documentation
Lender reasonably requires to be delivered by Borrower in connection with such release, together with an Officer's Certificate
certifying that such documentation (i) is in compliance with all Legal Requirements, and (ii) will effect such release in accordance
with the terms of this Agreement. Borrower shall pay all costs, taxes and expenses associated with the release of the Lien of
the Mortgage, including Lender's reasonable attorneys' fees.

 

2.5
          Payments and Computations.

 

2.5.1
Making of Payments. Each payment by Borrower shall be made in funds settled through the New York Clearing House Interbank
Payments System or other funds immediately available to Lender by I I a.m., New York City time, on the date such payment is due,
to Lender by deposit to such account as Lender may designate by written notice to Borrower. Whenever any such payment shall be
stated to be due on a day that is not a Business Day, such payment shall be made on the first Business Day thereafter. All such
payments shall be made irrespective of, and without any deduction, set-off or counterclaim whatsoever and are payable without
relief from valuation and appraisement laws and with all costs and charges incurred in the collection or enforcement thereof,
including attorneys' fees and court costs.

 

2.5.2
Computations. Interest payable under the Loan Documents shall be computed on the basis of the actual number of
days elapsed over a 360-day year.

 

2.5.3
Late Payment Charge. If any Principal, interest or other sum due under any Loan Document is not paid by Borrower on the
date on which it is due (except for the final payment of principal, interest and other charges due and payable on the Maturity
Date), 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 (the "Late Payment Charge"), 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. Such
amount shall be secured by the Loan Documents.

 

    	 	23	 

     

    

 

		3.	CASH MANAGEMENT AND RESERVES

 

3.1
           Cash Management Arrangements. Borrower shall cause all Rents to be transmitted directly by tenants of the Property into
an Eligible Account (the "Clearing Account") established and maintained by Borrower and reasonably approved by Lender,
at a local bank selected by Borrower, which shall at all times be an Eligible Institution (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
Rents, then (i) such amounts shall be deemed to be collateral for the Loan 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 into the Clearing Account within one (l) Business Day of receipt. Funds deposited
into the Clearing Account shall be swept by the Clearing Bank on a daily basis into Borrower's operating account at the Clearing
Bank, unless a Cash Management Period is continuing, in which event such funds shall be swept on a daily basis into an Eligible
Account at the Deposit Bank controlled by Lender (the "Deposit Account") and applied and disbursed in accordance with
this Agreement. Funds in the Deposit Account shall be invested at Lender's discretion only in Permitted Investments. Lender will
also establish subaccounts of the Deposit 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 "Subaccounts"). The Deposit Account and
any Subaccount 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.

 

3.2
         Required Repairs.

 

3.2.1
Completion of Required Repairs Borrower shall perform and complete each item of the repairs and environmental remedial
work at the Property described on Schedule I hereto (the "Required Repairs") within six (6) months of the date hereof
or such shorter period of time for such item set forth on Schedule I hereto.

 

3.2.2
Required Repairs Reserves. On the date hereof, Borrower shall deposit with Lender the aggregate amount set forth on Schedule
I hereto as being required to complete the Required Repairs and Lender shall cause such amount to be transferred to a Subaccount
(the "Required Repairs Subaccount"). Provided no Default or Event of Default shall have occurred and is continuing,
Lender shall disburse funds held in the Required Repairs Subaccount to Borrower, within fifteen (15) days after the delivery by
Borrower to Lender of a request therefor (but not more often than once per month), in increments of at least $10,000, accompanied
by the following items (which items shall be in form and substance satisfactory to Lender): (i) an Officer's Certificate (A) certifying
that the Required Repairs or any portion thereof which are the subject of the requested disbursement have been completed in a
good and workmanlike manner and in accordance with all applicable Legal Requirements, (B) identifying each Person that supplied
materials or labor in connection with such Required Repairs or any portion thereof and (C) stating that each such Person has been
or, upon receipt of the requested disbursement, will be paid in full with respect to the portion of the Required Repairs which
is the subject of the requested disbursement; (ii) copies of appropriate Lien waivers or other evidence of payment satisfactory
to Lender; (iii) at Lender's option, a title search for the Property indicating that it is free from all Liens not previously
approved by Lender; (iv) a copy of each License required to be obtained with respect to the portion of the Required Repairs which
is the subject of the requested disbursement; and (v) such other evidence as Lender shall reasonably request that the Required
Repairs which are the subject of the requested disbursement have been completed and paid for. Provided no Default or Event of
Default shall have occurred and is continuing, upon Borrower's completion of all Required Repairs in accordance with this Section
3.2, Lender shall release any funds remaining in the Required Repairs Subaccount, if any, to Borrower.

 

    	 	24	 

     

    

 

3.3           Taxes
and Insurance. Borrower shall pay to Lender (i) $51 ,013.99 on the date hereof on account of Taxes, (ii) $12,561.62 on
the date hereof on account of Insurance Premiums, and (iii) on each Payment Date, (x) one-twelfth (l/ 12th) of the Taxes
that Lender estimates will be payable during the next twelve (12) months in order to accumulate with Lender   sufficient
funds to pay all such Taxes at least thirty (30) days prior to their respective due dates and (y) one-twelfth (1/12th) 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 with Lender sufficient funds to pay all such Insurance Premiums at least thirty
(30) days prior to the expiration of the Policies. Such amounts will be transferred by Lender to a Subaccount (the "Tax
and Insurance Subaccount"). Provided that no Default or Event of Default has occurred and is continuing, Lender will (a)
apply funds in the Tax and Insurance Subaccount to payments of Taxes and Insurance Premiums required to be made by Borrower
pursuant to Section 5.2 hereof and Section 7.1 hereof, provided that Borrower has promptly supplied Lender with
notices of all Taxes and Insurance Premiums due, or (b) reimburse Borrower for such amounts upon presentation of evidence of
payment; subject, however, to Borrower's right to contest Taxes in accordance with Section 5.2 hereof. In making any
payment relating to Taxes and Insurance Premiums, Lender may do so according to any bill, statement or estimate procured from
the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums), 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 Lender determines in its reasonable judgment that the funds in the Tax and Insurance
Subaccount will be insufficient to pay (or in excess of) the Taxes or Insurance Premiums next coming due, Lender may increase
(or decrease) the monthly contribution required to be made by Borrower to the Tax and Insurance Subaccount.

 

3.4
           Capital Expense Reserves. Borrower shall pay to Lender an amount initially equal to $2,796.65 on each Payment Date. Lender
will transfer such amounts into a Subaccount O (the "Capital Reserve Subaccount"). Additionally, upon thirty (30) days'
prior notice to Borrower, Lender may reassess and increase the amount of the monthly payment required under this Section 3.4
from time to time in its reasonable discretion (based upon its then current underwriting standards). Provided that no Default
or Event of Default has occurred and is continuing, Lender shall disburse funds held in the Capital Reserve Subaccount to Borrower,
within fifteen (15) days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month),
in increments of at least $10,000 provided that (i) such disbursement is for an Approved Capital Expense; (ii) Lender shall have
(if it desires) verified (by an inspection conducted at Borrower's expense) performance of the work associated with such Approved
Capital Expense; and (iii) the request for disbursement is accompanied by (A) an Officer's Certificate certifying (l) that such
funds will be used to pay or reimburse Borrower for Approved Capital Expenses and a description thereof, (2) 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, (3) that the same has not been the subject of a previous disbursement, and (4) that all previous disbursements
have been used to pay the previously identified Approved Capital Expenses, and (B) lien waivers or other evidence of payment satisfactory
to Lender, (C) 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 (D) such other evidence as Lender shall reasonably request that the
Approved Capital Expenses at the Property to be funded by the requested disbursement have been completed and are paid for or will
be paid upon such disbursement to Borrower. Any such disbursement of more than $25,000 to pay (rather than reimburse) Approved
Capital Expenses may, at Lender's option, be made by joint check payable to Borrower and the payee on such Approved Capital Expenses.

 

    	 	25	 

     

    

 

3.5
           Rollover Reserves & Stabilization Reserve

 

(a)            Borrower
shall pay to Lender (i) $169,400.00 on the date hereof (the "Unimproved Premises Reserve Amount") on account of outstanding
Approved Leasing Expenses with respect to a portion of the Property of approximately 4,235 square feet that is identified as spaces
20 and 21 on the leasing plan attached hereto as Schedule 8 and made a part hereof (collectively, the "Unimproved
Premises"), and (ii) an amount initially equal to $5,593.29 on each Payment Date. Lender will transfer such amount into a
Subaccount (the "Rollover Reserve Subaccount"). Monthly deposits into the Rollover Reserve Subaccount shall commence
on the first Payment Date, shall be suspended whenever the balance in the Rollover Reserve Subaccount, excluding the Unimproved
Premises Reserve Amount or the remaining unused balance thereof, equals or exceeds $335,598, and shall resume whenever the balance
in the Rollover Reserve Subaccount, excluding the Unimproved Premises Reserve Amount or the remaining unused balance thereof,
falls below $335,598. Borrower shall also pay to Lender for transfer into the Rollover Reserve Subaccount all Lease Termination
Payments received by Borrower. If Lender determines in its reasonable judgment that the funds in the Rollover Reserve Subaccount
will be insufficient to pay the amounts due or to become due for Approved Leasing Expenses, Lender may increase the monthly contribution
required to be made by Borrower to the Rollover Reserve Subaccount. Provided that no Default or Event of Default has occurred
and is continuing, Lender shall disburse funds held in the Rollover Reserve Subaccount to Borrower, within fifteen (15) days after
the delivery by Borrower to Lender of a request O therefor (but not more often than once per month), in increments of at least
$10,000, provided (i) such disbursement is for an Approved Leasing Expense and any disbursement out of the Unimproved Premises
Reserve Amount is for an Approved Leasing Expense with respect to the Unimproved Premises; (ii) Lender shall have (if it desires)
verified (by an inspection conducted at Borrower's expense) performance of any construction work associated with such Approved
Leasing Expense; and (iii) the request for disbursement is accompanied by (A) an Officer's Certificate certifying (l) that such
funds will be used only to pay (or reimburse Borrower for) Approved Leasing Expenses and a description thereof and that any such
funds out of the Unimproved Premises Reserve Amount will be used only to pay (or reimburse Borrower for) an Approved Leasing Expense
with respect to the Unimproved Premises, (2) 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, (3) that the same has not been the subject
of a previous disbursement, and (4) that all previous disbursements have been used only to pay (or reimburse Borrower for) the
previously identified Approved Leasing Expenses, and (B) reasonably detailed supporting documentation as to the amount, necessity
and purpose therefor. Any such disbursement of more than $25,000 to pay (rather than reimburse) Approved Leasing Expenses may,
at Lender's option, be made by joint check payable to Borrower and the payee of such Approved Leasing Expenses. At such time as
the Unimproved Premises has been completed in accordance with the terms hereof, the remaining balance, if any, in the Unimproved
Premises Reserve Account shall be deposited into the Rollover Reserve Subaccount.

 

    	 	26	 

     

    

  

(b)          Any
Lease Termination Payments and any other funds deposited into the Rollover Reserve Subaccount from the Security Deposit Subaccount
in accordance with Section 3.8 hereof shall be applied, at Lender's election, towards either (a) subject to the rights of Borrower
under the applicable Lease, rent arrearages under such Lease (or to cure any other tenant default under such Lease), (b) debt
service shortfalls that may arise as a result of a termination of such Lease (and Borrower hereby authorizes Lender to disburse
to itself any such amounts without any request therefor by Borrower) or (c) funding any Approved Leasing Expenses (or Approved
Major Lease Leasing Expenses, if applicable) which are anticipated to occur in connection with the re-tenanting of the space under
the Lease that was the subject of such termination (in accordance with the terms and conditions of Section 3.5(a) above
or Section 3.5(c) below, if applicable).

 

(c)          On
each Payment Date occurring during the continuance of a Lease Sweep Period (provided no Cash Management Period is then continuing
(other than a Cash Management Period triggered solely as a result of a Lease Sweep Period)), all Available Cash (or such portion
of Available Cash that shall be allocated by Lender for deposit into the Special Rollover Reserve Subaccount in accordance with
Section 3.1 1) shall be paid to Lender. Lender will transfer such amount into a Subaccount (the "Special Rollover
Reserve Subaccount"). Borrower shall also pay to Lender for transfer into the Special Rollover Reserve Subaccount any Lease
Termination Payments received from any Major Tenant. Provided that no Default or Event of Default has occurred and is continuing,
Lender shall disburse funds held in the Special Rollover Reserve Subaccount to Borrower, within fifteen (15) days after the delivery
by Borrower to Lender of a request therefor (but not more often than once per month), in increments of at least $10,000, provided
(i) such disbursement is for an Approved Major Lease O Leasing Expense or Approved Leasing Expense (as the case may be); (ii)
Lender shall have (if it desires) verified (by an inspection conducted at Borrower's expense) performance of any construction
work associated with such Approved Major Lease Leasing Expense or Approved Leasing Expense (as the case may be); and (iii) the
request for disbursement is accompanied by (A) an Officer's Certificate certifying (l) that such funds will be used only to pay
(or reimburse Borrower for) Approved Major Lease Leasing Expenses or Approved Leasing Expenses (as the case may be) and a description
thereof, (2) 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, (3) that the same has not been the subject of a previous disbursement, and (4)
that all previous disbursements have been used only to pay (or reimburse Borrower for) the previously identified Approved Major
Lease Leasing Expenses or Approved Leasing Expenses (as the case may be), and (B) reasonably detailed supporting documentation
as to the amount, necessity and purpose therefor. Any such disbursement of more than $25,000 to pay (rather than reimburse) Approved
Major Lease Leasing Expenses or Approved Leasing Expenses (as the case may be) may, at Lender's option, be made by joint check
payable to Borrower and the payee of such Approved Major Lease Leasing Expenses or Approved Leasing Expenses (as the case may
be). Provided no Default or Event of Default is continuing, upon the termination of the subject Lease Sweep Period, and Lender's
receipt of satisfactory evidence that all Approved Major Lease Leasing Expenses or Approved Leasing Expenses (as the case may
be) incurred in connection therewith (and any other expenses in connection with the re-tenanting of the applicable space) have
been paid in full (which evidence may include (i) a letter or certification from the applicable broker, if any, that all brokerage
commissions payable in connection therewith have O been paid and (ii) an estoppel certificate executed by each applicable tenant
which certifies that all contingencies under such Lease to the payment of full rent (including Borrower's contribution to the
cost of any tenant improvement work) have been satisfied), any funds (if any) remaining in the Special Rollover Reserve Subaccount
that have been deposited therein as a result of such Lease Sweep Period shall be disbursed to Borrower; provided, however, if
a Cash Management Period is then continuing, then no such funds shall be disbursed to Borrower, and all such funds shall instead
be deposited into the Cash Collateral Subaccount, to be applied in accordance with Section 3.9 hereof.

 

    	 	27	 

     

    

 

(d)           On
the date hereof, Borrower shall deposit with Lender $200,000.00 (the "Stabilization Reserve Amount") and Lender shall
cause such amount to be transferred to a Subaccount (the "Stabilization Subaccount"). Lender shall disburse funds held
in the Stabilization Subaccount to Borrower on or before the date that is fifteen (15) days after the first anniversary of the
date hereof, provided that no Default or Event of Default shall have occurred and is continuing at the time of any disbursement
request, and that on or before the first anniversary of the date hereof, Borrower has provided lease renewals, amendments, new
leases or other written evidence satisfactory to Lender in its sole discretion proving that (i) the U.S. Lease has been renewed
for an additional term of not less than three (3) years on terms no less favorable than the terms of the U.S. Lease that are in
effect as of the date hereof; and (ii) (A) a portion of the Gold's Gym Lease consisting of approximately 8,979 square feet and
shown as space no. 6 on the Leasing Plan (the "Key Gold's Gym Lease Premises") has been either renewed by the existing
tenant under the Gold's Gym Lease or replaced with a new lease with such tenant and such renewal or replacement is on terms that
are no less favorable than the terms for extension and/or renewal of the Gold's Gym Lease in effect as of the date hereof, or
(B) a O new Lease has been signed with a replacement tenant for the Key Gold's Gym Lease Premises and such tenant is in Physical
and Economic Occupancy of the Key Gold's Gym Lease Premises pursuant to a replacement lease at a minimum base rent of $15.00 per
square foot (triple net), and otherwise on terms and conditions approved by Lender in its sole discretion; and (iii) except as
set forth in clauses (i) and (ii) above, all of the tenants under the Leases effective as of the date hereof remain in Physical
and Economic Occupancy of their applicable portion of the Property (or, in the event this is not the case, replacement tenants
and Leases have been approved by Lender pursuant to the terms hereof that are otherwise on terms no less favorable than the terms
of the Leases in effect as of the date hereof and such tenants are in Physical and Economic Occupancy of their applicable portion
of the Property). If the Stabilization Reserve Amount is not released to Borrower pursuant to this Subsection 3.5(d), the
Stabilization Reserve Amount shall be transferred to the Rollover Reserve Subaccount and be used and disbursed pursuant to this
Section 3.5.

 

    	 	28	 

     

    

 

3.6
           Operating Expense Subaccount. During a Cash Management Period, on each Payment Date, a portion of the Rents that have been
deposited into the Deposit Account during the immediately preceding Interest Period in an amount equal to the monthly amount set
forth in the Approved Operating Budget for the following month as being necessary for payment of Approved Operating Expenses at
the Property for such month, shall be transferred into a Subaccount for the payment of Approved Operating Expenses (the "Operating
Expense Subaccount"). Provided no Default or Event of Default has occurred and is continuing, Lender shall disburse funds
held in the Operating Expense Subaccount to Borrower, within fifteen (15) days after delivery by Borrower to Lender of a request
therefor (but not more often than once per month), in increments of at least $1,000, provided (i) such disbursement is for an
Approved Operating Expense; and (ii) such disbursement is accompanied by (A) an Officer's Certificate certifying (l) that such
funds will be used to pay Approved Operating Expenses and a description thereof, (2) 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, (3)
that the same has not been the subject of a previous disbursement, and (4) that all previous disbursements have been or will be
used to pay the previously identified Approved Operating Expenses, and (B) reasonably detailed documentation satisfactory to Lender
as to the amount, necessity and purpose therefor.

 

3.7         
Casualty/Condemnation Subaccount. Borrower shall pay, or cause to be paid, to Lender all Proceeds or Awards due to any
Casualty or Condemnation to be transferred to a Subaccount (the "Casualty/Condemnation Subaccount") in accordance with
the provisions of Article 7 hereof. All amounts in the Casualty/Condemnation Subaccount shall be disbursed in accordance
with the provisions of Article 7 hereof.

 

3.8         
Security Deposits. Borrower shall keep and hold all security deposits under Leases in accordance with applicable Legal
Requirements and at a separately designated account under Borrower's control at the Clearing Bank (and in the case of a letter
of credit, assigned with full power of attorney and executed sight drafts to Lender) so that the security deposits shall not be
commingled with any other funds of Borrower. After the occurrence of an Event of Default, Borrower shall, upon Lender's request,
if permitted by applicable Legal Requirements, turn over to Lender the security deposits (and any interest theretofore earned
thereon) under Leases, to be O held by Lender in a Subaccount (the "Security Deposit Subaccount") subject to the terms
of the Leases. Security deposits held in the Security Deposit Subaccount will be released by Lender upon notice from Borrower
together with such evidence as Lender may reasonably request that such security deposit is required to be returned to a tenant
pursuant to the terms of a Lease or may be applied as Rent pursuant to the rights of Borrower under the applicable Lease. Any
letter of credit or other instrument that Borrower receives in lieu of a cash security deposit under any Lease entered into after
the date hereof shall (i) be maintained in full force and effect in the full amount unless replaced by a cash deposit as hereinabove
described and (ii) if permitted pursuant to any Legal Requirements, name Lender as payee or mortgagee thereunder (or at Lender's
option, be fully assignable to Lender).

 

    	 	29	 

     

    

 

3.9          Cash
Collateral Subaccount. If a Cash Management Period shall have commenced (other than a Cash Management Period
triggered solely as a result of a Lease Sweep Period), then on the immediately succeeding Payment Date and on each Payment
Date thereafter during the continuance of such Cash Management Period, all Available Cash shall be paid to Lender, which
amounts shall be transferred by Lender into a Subaccount (the "Cash Collateral Subaccount") as cash collateral for
the Debt. Notwithstanding the foregoing, if a Lease Sweep Period has occurred and is then continuing during the continuance
of any Cash Management Period (other than a Cash Management Period triggered solely as a result of a Lease Sweep Period),
Lender shall have the right (but not the obligation) to allocate any funds in the Cash Collateral Subaccount to the Special
Rollover Reserve Subaccount to be applied in accordance with the terms and conditions of Section 3.5(c) hereof. Any
funds in the Cash Collateral Subaccount and not previously disbursed or applied shall, upon the termination of such Cash
Management Period, be applied and disbursed in accordance with Section 3.1 1 below. Lender shall have the right, but
not the obligation, at any time that a Debt Service Cash Management Period has been in effect for two (2) consecutive
Calculation Dates (whether or not an Event of Default has occurred and is continuing), in its sole and absolute discretion,
to apply all sums then on deposit in the Cash Collateral Subaccount to the Debt, in such order and in such manner as Lender
shall elect in its sole and absolute discretion, including to make a prepayment of Principal (together with the applicable
Yield Maintenance Premium applicable thereto).

 

3.10
         Grant of Security Interest: Application of Funds. As security for payment of the Debt and the performance by Borrower of
all other terms, conditions and provisions of the Loan Documents, Borrower hereby pledges and assigns to Lender, and grants to
Lender a security interest in, all Borrower's right, title and interest in and to all Rents and in and to all payments to or monies
held in the Clearing Account, the Deposit Account, and all Subaccounts created pursuant to this Agreement (collectively, the "Cash
Management Accounts"). Borrower hereby grants to Lender a continuing security interest in, and agrees to hold in trust for
the benefit of Lender, all Rents in its possession prior to the (i) payment of such Rents to Lender or (ii) deposit of such Rents
into the Deposit Account. Borrower shall not, without obtaining the prior written consent of Lender, further pledge, assign or
grant any security interest in any Cash Management Account, or permit any Lien to attach thereto, or any levy to be made thereon,
or any UCC Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. This Agreement
is, among other things, intended by the parties to be a security agreement for purposes of the UCC. Upon the occurrence and during
the continuance of an Event of Default, Lender may apply any sums in any Cash Management Account in any order c and in any manner
as Lender shall elect in Lender's discretion without seeking the appointment of a receiver and without adversely affecting the
rights of Lender to foreclose the Lien of the Mortgage or exercise its other rights under the Loan Documents. Cash Management
Accounts shall not constitute trust funds and may be commingled with other monies held by Lender. All interest which accrues on
the funds in any Cash Management Account shall accrue for the benefit of Borrower and shall be taxable to Borrower and shall be
added to and disbursed in the same manner and under the same conditions as the principal sum on which said interest accrued. Upon
repayment in full of the Debt, all remaining funds in the Subaccounts, if any, shall be promptly disbursed to Borrower.

 

    	 	30	 

     

    

 

3.11        
Property Cash Flow Allocation.

 

(a)
           During any Cash Management Period, all Rents deposited into the Deposit Account during the immediately preceding Interest Period
shall be applied on each Payment Date as follows in the following order of priority:

 

(i)
        First, to make payments into the Tax and Insurance Subaccount as required under Section 3.3 hereof;

 

(ii)
       Second, to pay the monthly portion of the fees charged by the Deposit Bank in accordance with the Deposit Account Agreement;

 

(iii)      Third,
to Lender to pay the Monthly Interest Payment Amount, due on such Payment Date (plus, if applicable, interest at the Default Rate
and all other amounts, other than those described under other clauses of this Section 3.1 1 (a), then due to Lender under
the Loan Documents);

 

(iv)      Fourth,
to make payments into the Capital Reserve Subaccount as required under Section 3.4 hereof;

 

(v)       Fifth,
to make payments into the Rollover Reserve Subaccount as required under Section 3.5(a) hereof;

 

(vi)      Sixth,
to make payments for Approved Operating Expenses as required under Section 3.6 hereof;

 

(vii)     Seventh,
during the continuance of a Cash Management Period triggered solely a result of a Lease Sweep Period, to make payments in an amount
equal to all remaining Available Cash on such Payment Date into the Special Rollover Reserve Subaccount in accordance with Section
3.5(c) hereof; and

 

    	 	31	 

     

    

 

(viii)    Eighth,
to make payments in an amount equal to all remaining Available Cash on such Payment Date into the Cash Collateral Subaccount in
accordance with Section 3.9 hereof.

 

(b)       The
failure of Borrower to make all of the payments required C) under clauses (i) through (viii) of Section 3.1 1 (a) above
in full on each Payment Date shall constitute an Event of Default under this Agreement; provided, however, if adequate funds are
available in the Deposit Account for such payments, the failure by the Deposit Bank to allocate such funds into the appropriate
Subaccounts shall not constitute an Event of Default.

 

(c)       Notwithstanding
anything to the contrary contained in this Section 3.1 1 or elsewhere in the Loan Documents, after the occurrence of a
Default or an Event of Default, Lender may apply all Rents deposited into the Deposit Account and other proceeds of repayment
in such order and in such manner as Lender shall elect. 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.

 

(d)       Notwithstanding
the foregoing, at such time as a Cash Management Period is no longer in effect, and so long as no Event of Default has occurred
and is continuing, Lender shall disburse to Borrower all proceeds on deposit in the Cash Collateral Subaccount.

 

		4.	REPRESENTATIONS AND WARRANTIES

 

Borrower
represents and warrants to Lender as of the date hereof that, except to the extent (if any) disclosed on Schedule 2 hereto
with reference to a specific Section of this Article 4:

 

4.1           Organization:
Special Purpose.

 

(a)       Each
of Borrower and Sole Member is duly organized, validly existing and in good standing under the laws of the state of its formation,
with requisite power and authority, and all rights, licenses, permits and authorizations, governmental or otherwise, necessary
to own its properties and to transact the business in which it is now engaged. Each of Borrower and Sole Member is duly qualified
to do business and is in good standing in the jurisdiction in which the Property is located and in each other jurisdiction where
it is required to be so qualified in connection with its properties, business and operations.

 

(b)       Borrower
has at all times since its formation been, and as of the date hereof is, a Special Purpose Bankruptcy Remote Entity.

 

    	 	32	 

     

    

 

4.2          Proceedings:
Enforceability. Borrower has taken all necessary action to authorize the execution, delivery and performance of the Loan Documents
by it, and has the power and authority to execute, deliver and perform under the Loan Documents and all the transactions contemplated
thereby. The Loan Documents have been duly authorized, executed and delivered by Borrower and, to the best of Borrower's knowledge,
constitute legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective
terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium 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). The Loan Documents are not subject to any right of rescission, set-off, counterclaim
or defense by Borrower 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, render the Loan Documents unenforceable, and none of Borrower or Guarantor have asserted
any right of rescission, set-off, counterclaim or defense with respect thereto.

 

4.3          No
Conflicts. To the best of Borrower's knowledge, the execution, delivery and performance of the Loan Documents by Borrower
and the transactions contemplated hereby will not conflict with any provision of any law or regulation to which Borrower is subject,
or conflict with, or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the
creation or imposition of any Lien (other than pursuant to the Loan Documents) upon any of the property of Borrower pursuant to
the terms of, any agreement or instrument to which Borrower is a party or by which its property is subject, nor will such action
result in any violation of the provisions of any statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over Borrower or any of its properties. Borrower's rights under the Licenses and the Management Agreement will not
be adversely affected by the execution and delivery of the Loan Documents, Borrower's performance thereunder, the recordation
of the Mortgage, or the exercise of any remedies by Lender. Any consent, approval, authorization, order, registration or qualification
of or with any Governmental Authority required for the execution, delivery and performance by Borrower of, or compliance by Borrower
with, the Loan Documents or the consummation of the transactions contemplated hereby, has been obtained and is in full force and
effect.

 

4.4          Litigation. There are no actions, suits or other proceedings at law or in equity by or before any Governmental Authority
now pending or, to the best of Borrower's knowledge, threatened against or affecting Borrower, Sole Member, Guarantor, Manager
or the Property, in any court or by or before any other Governmental Authority, which, if adversely determined, might materially
and adversely affect the condition (financial or otherwise) or business of Borrower (including the ability of Borrower to carry
out its obligations under the Loan Documents), Sole Member, Guarantor, Manager or the use, value, condition or ownership of the
Property.

 

4.5           Agreements.
Borrower is not a party to any agreement or instrument or subject to any restriction which might materially or 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 or 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.

 

    	 	33	 

     

    

 

4.6           Title.
Based on the Title Insurance Policy, Borrower has good, marketable and indefeasible title in fee to the real property and good
title to the balance of the Property, free and clear of all Liens except the Permitted Encumbrances. All transfer taxes, deed
stamps, intangible c taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable
Legal Requirements in connection with the transfer of the Property to Borrower have been paid or are being paid simultaneously
herewith. To the best of Borrower's knowledge, the Mortgage when properly recorded in the appropriate records, together with any
UCC Financing Statements required to be filed in connection therewith, will create (i) a valid, perfected first priority lien
on Borrower's interest in the Property and (ii) valid and perfected first priority security interests in and to, and perfected
collateral assignments of, all personality (including the Leases), all in accordance with the terms thereof, in each case subject
only to any applicable Permitted Encumbrances. All mortgage, mortgage recording, stamp, intangible or other similar taxes required
to be paid by any Person 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. The Permitted Encumbrances, individually or in the aggregate, do not (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, operation
or use of the Property, or (c) impair Borrower's ability to repay the Loan. 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. There are no mechanics', materialman's or other similar Liens or claims which have
been filed for work, labor or materials affecting the Property which are or may become a Lien prior to, or equal or coordinate
priority with, the Liens created by the Loan Documents. There are no outstanding options to purchase or rights of first refusal
affecting all or any portion of the Property. The Survey does not fail to reflect any material matter affecting the Property or
the title thereto. 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 of the Property, except those which are set forth on the Survey and insured against by the Title Insurance Policy.
Each parcel comprising the Property is a separate tax lot and is not a portion of any other tax lot that is not a part of the
Property. 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. With respect
to the Title Insurance Policy, (i) the Title Insurance Policy is in full force and effect, (ii) the Title Insurance Policy is
freely assignable by Lender to and will inure to the benefit of the transferee (subject to recordation of an assignment of mortgage)
without the consent or any notification to the insurer, (iii) the premium with respect thereto has been paid in full (or will
be paid in full with a portion of the proceeds of the Loan), (iv) the Title Insurance Policy is issued by a title insurance company
licensed to issue policies in the State, (v) no claims have been made under the Title Insurance Policy and no other action has
been taken that would materially impair the Title Insurance Policy and (vi) the Title Insurance Policy contains no exclusions
for any of the following circumstances, or it affirmatively insures Lender against losses relating to any of the following circumstances
(unless the Property is located in a jurisdiction where such affirmative insurance is not available): (a) that the Property has
access to O a public road and (b) that the area shown on the Survey is the same as the property legally described in the Mortgage.

 

    	 	34	 

     

    

 

4.7           No
Bankruptcy Filing. 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 law or the liquidation of all or a major portion of Borrower's assets
or properties (a "Bankruptcy Proceeding"), and Borrower has no knowledge of any Person contemplating the filing of any
such petition against it or such constituent Persons. In addition, neither Borrower nor Sole Member nor any principal nor Affiliate
of Borrower or Sole Member has been a party to, or the subject of a Bankruptcy Proceeding for the past ten (10) years.

 

4.8           Full
and Accurate Disclosure. No statement of fact made by Borrower in any Loan Documents contains any untrue statement of a material
fact or omits to state any material fact necessary to make statements contained therein not misleading. There is no material fact
presently known to Borrower that has not been disclosed to Lender which adversely affects, or, as far as Borrower can foresee,
might adversely affect, the Property or the business, operations or condition (financial or otherwise) of Borrower. All financial
data, including the statements of cash flow and income and operating expense, that have been delivered to Lender in respect of
Borrower and the Property (i) are true, complete and correct in all material respects, (ii) accurately represent the financial
condition of Borrower and the Property as of the date of such reports, and (iii) to the extent prepared by an independent certified
public accounting firm, have been prepared in accordance with GAAP consistently applied throughout the periods covered, except
as disclosed therein. Borrower has no contingent liabilities, liabilities for taxes, unusual forward or long-term commitments,
unrealized or anticipated losses from any unfavorable commitments or any liabilities or obligations not expressly permitted by
this Agreement. Since the date of such financial statements, there has been no materially adverse change in the financial condition,
operations or business of Borrower or the Property from that set forth in said financial statements.

 

4.9         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.

 

    	 	35	 

     

    

 

4.10
         ERISA No Plan Assets. As of the date hereof and throughout the Term (i) neither Borrower, Guarantor nor any ERISA Affiliate
sponsor, are obligated to contribute to, or are themselves an "employee benefit plan," as defined in Section 3(3) of
ERISA or Section 4975 of the Code, (ii) none of the assets of Borrower or Guarantor constitutes or will constitute "plan
assets" of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, as modified in operation by Section
3(42) of ERISA, (iii) neither Borrower nor Guarantor are or will be a "governmental plan" within the meaning of Section
3(32) of ERISA, and (iv) transactions by or with Borrower or Guarantor are not and will not be subject to state statutes regulating
investment of, and fiduciary obligations with respect to, governmental plans. As of c the date hereof, neither Borrower nor any
ERISA Affiliate maintains, sponsors or contributes to or has any obligation with respect to a "defined benefit plan"
(within the meaning of Section 3(35) of ERISA) or a "multiemployer pension plan" (within the meaning of Section 3(37)(A)
of ERISA). Borrower has not engaged in any transaction in connection with which it could be subject to either a material civil
penalty assessed pursuant to the provisions of Section 502 of ERISA or a material tax imposed under the provisions of Section
4975 of the Code.

 

4.11       
Compliance. Borrower and the Property (including the Improvements) and the use thereof comply in all material respects
with all applicable Legal Requirements (including with respect to parking, building and applicable zoning and land use laws, codes,
regulations and ordinances). 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 for retail use and 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. All certifications, permits, licenses and approvals,
including certificates of completion and occupancy permits required of Borrower for the legal use, occupancy and operation of
the Property for its current use (collectively, the "Licenses"), have been obtained and are in full force and effect.
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.

 

    	 	36	 

     

    

 

4.12        
Major Contracts. Borrower has not entered into, or is not bound by, any Major Contract which continues in existence, except
those previously disclosed in writing to Lender. 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. Borrower has delivered
true, correct and complete copies of the Major Contracts (including all amendments and supplements thereto) to Lender. No Major
Contract has as a party an Affiliate of Borrower.

 

4.13
         Federal Reserve Regulations: Investment Company Act: Bank Holding Company. 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 that would be inconsistent with such Regulation U or any other
regulation of such Board of Governors, or for any purpose prohibited by Legal Requirements or any Loan Document. 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 federal or state law or regulation which purports
to restrict or regulate its ability to borrow money. 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.

 

4.14
        Easements Utilities and Public Access. 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 has rights of access to public ways and is served by water, sewer, sanitary sewer and storm drain
facilities adequate to service it for its intended uses. 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 easement. 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.

 

4.15
        Physical Condition. Except as may be expressly set forth in the Physical Conditions Report, the Property, including all
buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection
O 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 defects
or damages to the Property, whether latent or otherwise. 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 any termination or threatened termination of
any policy of insurance or bond. No portion of the Property is located in an area as identified by the Federal Emergency Management
Agency as an area having special flood hazards, or, if so located the flood insurance required pursuant to Section 7.1.1 hereof
is in full force and effect with respect to the Property. The Improvements have suffered no material casualty or damage which
has not been fully repaired and the cost thereof fully paid.

 

    	 	37	 

     

    

 

4.16        
Leases. The rent roll attached hereto as Schedule 3 (the "Rent Roll") is true, complete and correct and
the Property is not subject to any Leases other than the Leases described in the Rent Roll. Except as set forth on the Rent Roll:
(i) each Lease is in full force and effect; (ii) the tenants under the Leases have accepted possession of and are in occupancy
of all of their respective demised premises, have commenced the payment of rent under the Leases, and there are no offsets, claims
or defenses to the enforcement thereof; (iii) all rents due and payable under the Leases have been paid and no portion thereof
has been paid for any period more than thirty (30) days in advance; (iv) the rent payable under each Lease is the amount of fixed
rent set forth in the Rent Roll, and there is no claim or basis for a claim by the tenant thereunder for an adjustment to the
rent; (v) no tenant has made any claim against the landlord O under any Lease which remains outstanding, there are no defaults
on the part of the landlord under any Lease, and no event has occurred which, with the giving of notice or passage of time, or
both, would constitute such a default; (vi) to Borrower's best knowledge, there is no present material default by the tenant under
any Lease; (vii) all security deposits under Leases are as set forth on the Rent Roll and are held consistent with Section
3.8 hereof; (viii) Borrower is the sole owner of the entire lessor's interest in each Lease; (ix) to the best of Borrower's
knowledge, each Lease is the valid, binding and enforceable obligation of Borrower and the applicable tenant thereunder; (x) no
Person has any possessory interest in, or right to occupy, the Property except under the terms of the Lease; (xi) each Lease is
subordinate to the Loan Documents, either pursuant to its terms or pursuant to a subordination and attornment agreement; (xii)
all work to be performed by Borrower under each Lease has been performed as required and has been accepted by the applicable tenant
under such Lease; (xiii) 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 under any Lease has already been received by such tenant; (xiv) no tenant under
any Lease (or any sublease) is an Affiliate of Borrower; (xv) all tenants under the Leases are open for business and paying full,
unabated rent; (xvi) there are no brokerage fees or commissions due and payable in connection with the leasing of space at the
Property, 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; (xvii) no tenant under any Lease 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; (xviii) no tenant under any Lease
has any right or option for additional space in the Improvements; and (xix) each tenant under a Material Lease is free from bankruptcy
or reorganization proceedings. The copies of the Leases delivered to Lender are true and complete, and there are no oral agreements
with respect thereto. None of the Leases contains any option to purchase or right of first refusal to purchase the Property or
any part thereof. Neither the Leases nor the Rents have been assigned or pledged except to Lender, and no other Person has any
interest therein except the tenants thereunder.

 

    	 	38	 

     

    

  

4.17       
Fraudulent Transfer. Borrower has not entered into the Loan or any Loan Document with the actual intent to hinder, delay,
or defraud any creditor, and Borrower has received reasonably equivalent value in exchange for its obligations under the Loan
Documents. Giving effect to the transactions contemplated by the Loan Documents, the fair saleable value of Borrower's assets
exceeds and will, immediately following the execution and delivery of the Loan Documents, exceed Borrower's total probable liabilities,
including subordinated, unliquidated, disputed or 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 execution and delivery of the Loan Documents will not, constitute unreasonably small capital to carry out its business
as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur debts and liabilities
(including contingent liabilities and other commitments) beyond its ability to pay such debts as they mature (taking into account
the timing and amounts of cash to be received by Borrower and the amounts to be payable on or in respect of the obligations of
Borrower).

 

4.18       
Ownership of Borrower. Borrower's exact legal name is: Medalist Fund I-A, 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 901018947 and Borrower's Delaware Organizational I.D. number is 5400508. The sole
member of Borrower is Sole Member. The membership interests of the Sole Member and the membership interests in Borrower are owned
free and clear of all Liens, warrants, options and rights to purchase. Borrower has no obligation to any Person to purchase, repurchase
or issue any ownership interest in it. The organizational chart attached hereto as Schedule 4 is true, complete and accurate
and illustrates all Persons who have a direct or indirect ownership interest in Borrower.

 

4.19        Purchase Options. Neither the Property nor any part thereof is subject to any purchase options, rights of first refusal,
rights of first offer or other similar rights in favor of third parties.

 

4.20
       Management Agreement. The Management Agreement is in full force and effect. There is no default, breach or violation existing
thereunder, and no event has occurred (other than payments due but not yet delinquent) that, with the passage of time or the giving
of notice, or both, would constitute a default, breach or violation thereunder, by either party thereto.

 

    	 	39	 

     

    

 

4.21       
Hazardous Substances. (i) The Property is not in violation of any Legal Requirement pertaining to or imposing liability
or standards of conduct concerning O environmental regulation, contamination or clean-up, including the Comprehensive Environmental
Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Emergency Planning and Community Right-to-Know
Act of 1986, the Hazardous Substances Transportation Act, the Solid Waste Disposal Act, the Clean Water Act, the Clean Air Act,
the Toxic Substance Control Act, the Safe Drinking Water Act, the Occupational Safety and Health Act, any state super-lien and
environmental clean-up statutes (including with respect to Toxic Mold), any local law requiring related permits and licenses and
all amendments to and regulations in respect of the foregoing laws (collectively, "Environmental Laws"); (ii) the Property
is not subject to any private or governmental Lien or judicial or administrative notice or action or inquiry, investigation or
claim relating to hazardous, toxic and/or dangerous substances, toxic mold or fungus of a type that may pose a risk to human health
or the environment or would negatively impact the value of the Property ("Toxic Mold") or any other substances or materials
which are included under or regulated by Environmental Laws (collectively, "Hazardous Substances"); (iii) to the best
of Borrower's knowledge, after due inquiry, no Hazardous Substances are or have been (including the period prior to Borrower's
acquisition of the Property), discharged, generated, treated, disposed of or stored on, incorporated in, or removed or transported
from the Property other than in compliance with all Environmental Laws; (iv) to the best of Borrower's knowledge, after due inquiry,
no Hazardous Substances are present in, on or under any nearby real property which could migrate to or otherwise affect the Property;
(v) to the best of Borrower's knowledge, after due inquiry, no Toxic Mold is on or about the Property which requires remediation;
(vi) no underground storage tanks exist on the Property and the Property has never been used as a landfill; and (vii) there have
been no environmental investigations, studies, audits, reviews or other analyses conducted O by or on behalf of Borrower which
have not been provided to Lender.

 

4.22        
Name; Principal Place of Business. Borrower does not use and will not use any trade name and has not done and will not
do business under any name other than its actual name set forth herein. The principal place of business of Borrower is its primary
address for notices as set forth in Section 6.1 hereof, and Borrower has no other place of business.

 

4.23       
Other Debt. There is no indebtedness with respect to the Property or any excess cash flow or any residual interest therein,
whether secured or unsecured, other than Permitted Encumbrances and Permitted Indebtedness.

 

4.24       
Assignment of Leases and Rents. The Assignment of Leases and Rents creates a valid assignment of, or a valid security interest
in, 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.

 

4.25       
Insurance. Borrower has obtained and has delivered to Lender certificates 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.

 

4.26       
FIRPTA. Borrower is not a "foreign person" within the meaning of Sections 1445 or 7701 of the Code.

 

4.27       
Fiscal Year. Each fiscal year of Borrower commences on January1.

 

    	 	40	 

     

    

 

4.28
        Intellectual Property/Websites. Other than as set forth on Schedule 6, neither Borrower nor any Affiliate (i) has or holds
any tradenames, trademarks, servicemarks, logos, copyrights, patents or other intellectual property (collectively, "Intellectual
Property") with respect to the Property or the use or operations thereof or is (ii) is the registered holder of any website
with respect to the Property (other than tenant websites).

 

4.29       
Operations Agreements. Each Operations Agreement is in full force and effect and neither Borrower nor, to Borrower's knowledge,
any other party to any Operations Agreement, is in default thereunder, and to the best of Borrower's knowledge, there are no conditions
which, with the passage of time or the giving of notice, or both, would constitute a default thereunder. Except as described herein,
the REA has not been modified, amended or supplemented.

 

4.30       
Illegal Activity. NO portion of the Property has been or will be purchased with proceeds of any illegal activity.

 

All
of the representations and warranties in this Article 4 and elsewhere in the Loan Documents (i) shall survive for so long as any
portion of the Debt remains owing to Lender and (ii) shall be deemed to have been relied upon by Lender notwithstanding any investigation
heretofore or O hereafter made by Lender or on its behalf, provided, however, that the representations, warranties and covenants
set forth in Section 4.21 above shall survive in perpetuity.

 

		5.	COVENANTS

 

Until
the end of the Term, Borrower hereby covenants and agrees with Lender that:

 

5.1           Existence. Each of Borrower and Sole Member shall (i) do or cause to be done all things necessary to preserve, renew and
keep in full force and effect its existence, rights, and franchises, (ii) continue to engage in the business presently conducted
by it, (iii) obtain and maintain all Licenses and all applicable governmental authorizations, and (iv) qualify to do business
and remain in good standing under the laws of each jurisdiction, in each case as and to the extent required for the ownership,
maintenance, management and operation of the Property.

 

    	 	41	 

     

    

 

5.2
        Taxes and Other Charges. Borrower shall pay all Taxes and Other Charges as the same become due and payable, and deliver
to Lender receipts for payment or other evidence satisfactory to Lender that the Taxes and the Other Charges have been so paid
no later than thirty (30) days before they would be delinquent if not paid (provided, however, that Borrower need not pay such
Taxes nor furnish such receipts for payment of Taxes paid by Lender pursuant to Section 3.3 hereof). Borrower shall not
suffer and shall promptly cause to be paid and discharged 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, promptly initiated and conducted in good faith and with C due diligence, the amount or validity or application
of any Taxes or Other Charges, provided that (i) no Default or Event of Default has occurred and is continuing, (ii) such proceeding
shall be permitted under and be conducted in accordance with all applicable statutes, laws and ordinances, (iii) such proceeding
shall suspend the collection of the Taxes or such Other Charges, (iv) such proceeding shall be permitted under and be conducted
in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder,
(v) no part of or interest in the Property will be in danger of being sold, forfeited, terminated, canceled or lost, (vi) Borrower
shall have furnished such security as may be required in the proceeding, or as may be requested by Lender, to insure the payment
of any such Taxes or Other Charges, together with all interest and penalties thereon, which shall not be less than 125% of the
Taxes and Other Charges being contested, (vii) Borrower shall promptly upon final determination thereof pay the amount of such
Taxes or Other Charges, together with all costs, interest and penalties, (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) through (viii)
of this Section 5.2. Lender may pay over any such security or part thereof 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, cancelled or lost or there shall be any
danger of the Lien of the Mortgage being primed by any related Lien.

 

5.3        
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 C 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.

 

5.4
         Repairs; Maintenance and Compliance: Alterations.

 

5.4.1
Repairs: Maintenance and Compliance. Borrower shall at all times maintain, preserve and protect all franchises and trade
names, and Borrower shall cause the Property to be maintained in a good and safe condition and repair and shall not remove, demolish
or alter the Improvements or Equipment (except for alterations performed in accordance with Section 5.4.2 below and normal
replacement of Equipment with Equipment of equivalent value and functionality). Borrower shall promptly comply with all Legal
Requirements and immediately cure properly any violation of a Legal Requirement. Borrower shall notify Lender in writing within
one (l) Business Day after Borrower first receives notice of any such noncompliance. Borrower shall promptly repair, replace or
rebuild any part of the Property that becomes damaged, worn or dilapidated and shall complete and pay for any Improvements at
any time in the process of construction or repair.

 

    	 	42	 

     

    

 

5.4.2
Alterations. Borrower may, without Lender's consent, perform alterations to the Improvements and Equipment which (i)
do not constitute a Material Alteration, (ii) do not adversely affect Borrower's financial condition or the value or Net Operating
Income of the Property and (iii) are in the ordinary course of Borrower's business. Borrower shall not perform any Material Alteration
without Lender's prior written consent, which consent shall not be unreasonably withheld or delayed; provided, however, that Lender
may, in its sole and absolute discretion, withhold consent to any alteration the cost of which is reasonably estimated to exceed
$1 or which is likely to result in a decrease of Net Operating Income by two and one-half percent (2.5%) or more for a period
of thirty (30) days or longer. Lender may, as a condition to giving its consent to a Material Alteration, require that Borrower
deliver to Lender security for payment of the cost of such Material Alteration in an amount equal to 125% of the cost of the Material
Alteration as estimated by Lender. Upon substantial completion of the Material Alteration, Borrower shall provide evidence satisfactory
to Lender that (i) the Material Alteration was constructed in accordance with applicable Legal Requirements and substantially
in accordance with plans and specifications approved by Lender (which approval shall not be unreasonably withheld or delayed),
(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
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. Borrower shall reimburse Lender upon demand for all out-of-pocket costs and expenses
(including the reasonable fees of any architect, engineer or other professional engaged by Lender) incurred by Lender in reviewing
plans and specifications or in making any determinations necessary to implement the provisions of this Section 5.4.2. 5.5
Performance of Other Agreements. Borrower shall observe and perform each and every term to be observed or performed by
it pursuant to the terms of any agreement or instrument affecting or pertaining to the Property, including the Loan Documents.

 

5.6       
Cooperate in Legal Proceedings. Borrower shall cooperate fully with Lender with respect to, and permit Lender, at its option,
to participate in, any proceedings before any Governmental Authority which may in any way affect the rights of Lender under any
Loan Document.

 

5.7       
Further Assurances. Borrower shall, at Borrower's sole cost and expense, (i) 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 Debt and/or for the better and more effective carrying
out of the intents and purposes of the Loan Documents, as Lender may reasonably require from time to time; (ii) provide all such
information as Lender may reasonably require to ensure Borrower's ongoing compliance with Sections 5.26 and including ensuring
compliance with all "know your customer" procedures as Lender may from time-totime institute with respect to loans that
are of a similar size and nature as the Loan; and (iii) upon Lender's request therefor given from time to time after the occurrence
of any Default or Event of Default pay for (a) reports of UCC, federal tax lien, state tax lien, judgment and pending litigation
searches with respect to Borrower and Sole Member and (b) searches of title to the Property, each such search to be conducted
by search firms reasonably designated by Lender in each of the locations reasonably designated by Lender.

 

    	 	43	 

     

    

 

5.8
           Environmental Matters.

 

5.8.1
Hazardous Substances. So long as Borrower owns or is in possession of the Property, Borrower shall (i) keep the Property
free from Hazardous Substances and in compliance with all Environmental Laws, (ii) promptly notify Lender if Borrower shall become
aware that (A) any Hazardous Substance is on or near the Property, (B) the Property is in violation of any Environmental Laws
or (C) any condition on or near the Property shall pose a threat to the health, safety or welfare of humans and (iii) remove such
Hazardous Substances and/or cure such violations and/or remove such threats, as applicable, as required by law (or as shall be
required by Lender in the case of removal which is not required by law, but in response to the opinion of a licensed hydrogeologist,
licensed environmental engineer or other qualified environmental consulting firm engaged by Lender ("Lender's Consultant")),
promptly after Borrower becomes aware of same, at Borrower's sole expense. Nothing herein shall prevent Borrower from recovering
such expenses from any other party that may be liable for such removal or cure.

 

5.8.2
Environmental Monitoring.

 

(a)       Borrower
shall give prompt written notice to Lender of (i) any proceeding or inquiry by any party (including any Governmental Authority)
with respect to the presence of any Hazardous Substance on, under, from or about the Property, (ii) all claims made or threatened
by any third party (including any Governmental Authority) against Borrower or the Property or any party occupying the Property
relating to any loss or injury resulting from any Hazardous Substance, and (iii) Borrower's discovery of any occurrence or condition
on any real property adjoining or in the vicinity of the Property that could cause the Property to be subject to any investigation
or cleanup pursuant to any Environmental Law. Upon becoming aware of the presence of mold or fungus at the Property, Borrower
shall (i) undertake an investigation to identify the source(s) of such mold or fungus and shall develop and implement an appropriate
remediation plan to eliminate the presence of any Toxic Mold, (ii) perform or cause to be performed all acts reasonably necessary
for the remediation of any Toxic Mold (including taking any action necessary to clean and disinfect any portions of the Property
affected by Toxic Mold, including providing any necessary moisture control systems at the Property), and (iii) provide evidence
reasonably satisfactory to Lender of the foregoing. Borrower shall permit Lender to join and participate in, as a party if it
so elects, any legal or administrative proceedings or other actions initiated with respect to the Property in connection with
any Environmental Law or Hazardous Substance, and Borrower shall pay all reasonable attorneys' fees and disbursements incurred
by Lender in connection therewith.

 

(b)       After
the occurrence of an Event of Default or if Lender determines that reasonable cause exists for the performance of such environmental
inspection or audit, Borrower shall provide, upon Lender's request, an inspection or audit of the Property prepared by a licensed
hydrogeologist, licensed environmental engineer or qualified environmental consulting firm approved by Lender assessing the presence
or absence of Hazardous Substances on, in or near the Property, and the cost and expense of such audit or inspection shall be
paid by Borrower. Such inspections and audit may include soil borings and ground water monitoring. If Borrower fails to provide
any such inspection or audit within thirty (30) days after such request, Lender may order same, and Borrower hereby grants to
Lender C (subject to the rights of Tenants) and its employees and agents access to the Property and a license to undertake such
inspection or audit.

 

    	 	44	 

     

    

 

(c)       If
any environmental site assessment report prepared in connection with such inspection or audit recommends that an operations and
maintenance plan be implemented for any Hazardous Substance, whether such Hazardous Substance existed prior to the ownership of
the Property by Borrower, or presently exists or is reasonably suspected of existing, Borrower shall cause such operations and
maintenance plan to be prepared and implemented at its expense upon request of Lender, and with respect to any Toxic Mold, Borrower
shall take all action necessary to clean and disinfect any portions of the Improvements affected by Toxic Mold in or about the
Improvements, including providing any necessary moisture control systems at the Property. If any investigation, site monitoring,
containment, cleanup, removal, restoration or other work of any kind is reasonably necessary under an applicable Environmental
Law ("Remedial Work"), Borrower shall commence all such Remedial Work within thirty (30) days after written demand by
Lender and thereafter diligently prosecute to completion all such Remedial Work within such period of time as may be required
under applicable law. All Remedial Work shall be performed by licensed contractors approved in advance by Lender and under the
supervision of a consulting engineer approved by Lender. All costs of such Remedial Work shall be paid by Borrower, including
Lender's reasonable attorneys' fees and disbursements incurred in connection with the monitoring or review of such Remedial Work.
If Borrower does not timely commence and diligently prosecute to completion the Remedial Work, Lender may (but shall not be obligated
to) cause such Remedial Work to be performed at Borrower's expense. Notwithstanding the foregoing, Borrower shall not be required
to commence such Remedial Work within the above specified time period: (x) if C) prevented from doing so by any Governmental Authority,
(y) if commencing such Remedial Work within such time period would result in Borrower or such Remedial Work violating any Environmental
Law, or (z) if Borrower, at its expense and after prior written notice to Lender, is contesting by appropriate legal, administrative
or other proceedings, conducted in good faith and with due diligence, the need to perform Remedial Work. Borrower shall have the
right to contest the need to perform such Remedial Work, provided that, (l) Borrower is permitted by the applicable Environmental
Laws to delay performance of the Remedial Work pending such proceedings, (2) neither the Property nor any part thereof or interest
therein will be sold, forfeited or lost if Borrower fails to promptly perform the Remedial Work being contested, and if Borrower
fails to prevail in such contest, Borrower would thereafter have the opportunity to perform such Remedial Work, (3) Lender would
not, by virtue of such permitted contest, be exposed to any risk of any civil liability for which Borrower has not furnished additional
security as provided in clause (4) below, or to any risk of criminal liability, and neither the Property nor any interest therein
would be subject to the imposition of any Lien for which Borrower has not fumished additional security as provided in clause (4)
below, as a result of the failure to perform such Remedial Work and (4) Borrower shall have furnished to Lender additional security
in respect of the Remedial Work being contested and the loss or damage that may result from Borrower's failure to prevail in such
contest in such amount as may be reasonably requested by Lender but in no event less than 125% of the cost of such Remedial Work
as estimated by Lender or Lender's Consultant and any loss or damage that may result from Borrower's failure to prevail in such
contest.

 

    	 	45	 

     

    

 

(d)       Borrower
shall not install or permit to be installed on the Property any underground storage tank.

 

5.8.3
0 & M Program. In the event any environmental report delivered to Lender in connection with the Loan recommends the
development of or continued compliance with an operation and maintenance program for the Property (including with respect to the
presence of asbestos and/or lead-based paint) ("O & M Program"), Borrower shall develop (or continue to comply with,
as the case may be) such O & M Program and shall, during the term of the Loan, including any extension or renewal thereof,
comply in all material respects with the terms and conditions of the O & M Program.

 

5.9
        Title to the Property. Borrower will warrant and defend the title to the Property, and the validity and priority of all
Liens granted or otherwise given to Lender under the Loan Documents, subject only to Permitted Encumbrances, against the claims
of all Persons.

 

5.10      
Leases.

 

5.10.1
Generally. Upon request, Borrower shall furnish Lender with executed copies of all Leases then in effect. All renewals
of Leases and all proposed leases shall provide for rental rates and terms comparable to existing local market rates and shall
be arm's length transactions with bona fide, independent third-party tenants.

 

5.10.2
Material Leases.

 

(a)     Borrower shall not enter into a proposed Material Lease or a proposed renewal, extension or modification of an existing Material
Lease without the O prior written consent of Lender, which consent shall not, so long as no Event of Default is continuing, be
unreasonably withheld or delayed. Prior to seeking Lender's consent to any Material Lease, Borrower shall deliver to Lender a
copy of such proposed lease (a "Proposed Material Lease") blacklined to show changes from the standard form of Lease
approved by Lender and then being used by Borrower. Lender shall approve or disapprove each Proposed Material Lease or proposed
renewal, extension or modification of an existing Material Lease for which Lender's approval is required under this Agreement
within fifteen (15) Business Days of the submission by Borrower to Lender of a written request for such approval, accompanied
by a final copy of the Proposed Material Lease or proposed renewal, extension or modification of an existing Material Lease. If
requested by Borrower, Lender will grant conditional approvals of Proposed Material Leases or proposed renewals, extensions or
modifications of existing Material Leases at any stage of the leasing process, from initial "term sheet" through negotiated
lease drafts, provided that Lender shall retain the right to disapprove any such Proposed Material Lease or proposed renewal,
extension or modification of an existing Material Lease, if subsequent to any preliminary approval material changes are made to
the terms previously approved by Lender, or additional material terms are added that had not previously been considered and approved
by Lender in connection with such Proposed Material Lease or proposed renewal, extension or modification of an existing Material
Lease.

 

    	 	46	 

     

    

 

(b)     
Provided that no Event of Default is then continuing, to the extent, if any, that Lender's prior written approval is
required pursuant to this Section 5.10.29 such request for approval shall be deemed approved if (i) Lender shall have
failed to notify Borrower of its approval or disapproval within fifteen (15) Business Days following Lender's receipt of
Borrower's written request together with any and all required material information and documentation relating thereto
reasonably required by Lender to reach a decision, (ii) Borrower shall have delivered or caused to be delivered to Lender
each of the written notices of Lender's failure to respond to Borrower's request within such period in the manner as set
forth below, and (iii) Lender shall have failed to notify Borrower of its approval or disapproval within such fifteen (15)
Business Day period following Lender's receipt of the second notice provided for below; provided, however, that if such
request is of such nature that it cannot reasonably be approved within such fifteen (15) Business Day period, and Lender is
diligently pursuing such approval, Lender shall have such additional time as is reasonably necessary to complete such
approval upon notice to Borrower of the need for such additional time, it being agreed that no such extension shall be for a
period in excess of an additional ten (10) Business Days. Borrower shall be required to provide Lender, upon Lender's
request, with such material information and documentation as may be reasonably required by Lender, in its reasonable
discretion, including without limitation, lease comparables and other market information as reasonably required by Lender to
reach a decision. In order to be effective for the purposes of triggering the time periods set forth above for Lender to
respond, all requests by Borrower must contain the aforementioned information together with a written notice sent in
accordance with Section 6.1 hereof to Lender marked "PRIORITY" and shall conspicuously state in a font size that is
not less than fourteen (14) point bold type "PURSUANT TO SECTION 5.10.2 OF THE LOAN AGREEMENT, THIS IS BORROWER'S FIRST
NOTICE OF REQUEST FOR APPROVAL OF THE LEASE HEREIN PROVIDED. IF LENDER DOES NOT DECLINE APPROVAL IN WRITING OR REQUEST
ADDITIONAL INFORMATION IN WRITING WITHIN FIFTEEN (15) BUSINESS DAYS OF ITS RECEIPT OF THIS LETTER SUCH LEASE SHALL BE DEEMED
APPROVED" and if Lender has failed to so respond by the tenth (10th) Business Day, Borrower shall send a second notice
also marked "PRIORITY" and conspicuously stating in a font size that is not less than fourteen (14) point bold type
 "PURSUANT TO SECTION 5.10.2 OF THE LOAN AGREEMENT, THIS IS BORROWER'S SECOND AND FINAL NOTICE OF REQUEST FOR APPROVAL OF
THE LEASE HEREIN PROVIDED. IF LENDER DOES NOT DECLINE APPROVAL IN WRITING OR REQUEST ADDITIONAL INFORMATION IN WRITING WITHIN
FIVE (5) BUSINESS DAYS OF ITS RECEIPT OF THIS LETTER SUCH LEASE SHALL BE DEEMED APPROVED."

 

(c)     
Notwithstanding anything to the contrary in this Section 5.10.2, unless expressly agreed to in writing by Lender, any approval
by Lender of a Proposed Material Lease or proposed renewal, extension or modification of an existing Material Lease pursuant to
this Section 5.10.2 shall not be deemed to constitute an approval by Lender of any Approved Leasing Expenses payable in connection
therewith for purposes of this Agreement.

 

    	 	47	 

     

    

 

5.10.3
Minor Leases. (a) Notwithstanding the provisions of Section 5.10.2 above, provided that no Event of Default is continuing,
renewals, amendments and modifications of existing Leases and proposed leases, shall not be subject to the prior approval of Lender
provided (i) the proposed lease would be a Minor Lease or the existing Lease as amended or modified or the renewal Lease is a
Minor Lease, (ii) the proposed lease shall be written substantially in accordance with the standard form of Lease which shall
have been approved by Lender, (iii) the Lease as amended or modified or the renewal Lease or series of leases or O proposed lease
or series of leases: (A) shall provide for net effective rental rates comparable to existing local market rates, (B) shall have
an initial term (together with all renewal options) of not less than three (3) years or greater than ten (10) years, (C) shall
provide for automatic selfoperative subordination to the Mortgage and, at Lender's option, (x) attornment to Lender and (y) the
unilateral right by Lender, at the option of Lender, to subordinate the Lien of the Mortgage to the Lease, and (D) shall 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 provision which might adversely affect the rights of Lender under the Loan Documents in any material respect. Borrower shall
deliver to Lender copies of all Leases which are entered into pursuant to the preceding sentence together with Borrower's certification
that it has satisfied all of the conditions of the preceding sentence within ten (10) days after the execution of the Lease.

 

(b)
Notwithstanding anything to the contrary in this Section 5.10.3, unless expressly agreed to in writing by Lender, any approval
(to the extent, if any, that Lender's prior written approval is required pursuant to this Section 5.10.3) by Lender of
a Proposed Material Lease or proposed renewal, extension or modification of an existing Material Lease pursuant to this Section
5.10.3 shall not be deemed to constitute an approval by Lender of any Approved Leasing Expenses payable in connection therewith
for purposes of this Agreement.

 

5.10.4
Additional Covenants with Respect to Leases. Borrower (i) shall observe and perform the material obligations imposed upon
the lessor under the Leases and shall not do or permit anything to impair the value of the Leases as security for the Debt; (ii)
shall promptly send copies to Lender of all notices of default that Borrower shall send or receive under any Lease; (iii) shall
enforce, in accordance with commercially reasonable practices for properties similar to the Property, the terms, covenants and
conditions in the Leases to be observed or performed by the lessees, short of termination thereof; (iv) shall not collect any
of the Rents more than one (l) month in advance (other than security deposits); (v) shall not execute any other assignment of
lessor's interest in the Leases or the Rents (except as contemplated by the Loan Documents); (vi) shall not modify any Lease in
a manner inconsistent with the Loan Documents; (vii) shall not convey or transfer or suffer or permit a conveyance or transfer
of the Property so as to effect a merger of the estates and rights of, or a termination or diminution of the obligations of, lessees
under Leases; (viii) shall not consent to any assignment of or subletting under any Material Lease unless required in accordance
with its terms without the prior consent of Lender, which, with respect to a subletting, may not, so long as no Event of Default
is continuing, be unreasonably withheld or delayed; and (ix) shall not cancel or terminate any Lease or accept a surrender thereof
(except in the exercise of Borrower's commercially reasonable judgment in connection with a tenant default under a Minor Lease)
without the prior consent of Lender, which consent shall not, so long as no Event of Default is continuing, be unreasonably withheld
or delayed.

 

    	 	48	 

     

    

 

5.11        
Estoppel Statement.

 

(a)       After
request by Lender, Borrower shall within ten (10) days furnish Lender with a statement addressed to Lender, its successors
and assigns, duly acknowledged and certified, setting forth (i) the unpaid Principal, (ii) the Interest Rate, (iii) the date
installments of interest and/or Principal, were last paid, (iv) any offsets or defenses to the payment of the Debt, and (v)
that the Loan Documents are valid, legal and binding obligations and have not been modified or if modified, giving
particulars of such modification.

 

(b)       Borrower
shall deliver to Lender, upon request, estoppel certificates from each party under any Operations Agreement, in form and substance
reasonably satisfactory to Lender; provided, that Borrower shall not be required to deliver such certificates more than three
(3) times during the Term and not more frequently than once per calendar year (or twice during any calendar year in which a Securitization
occurs).

 

5.12       
Property Management.

 

5.12.1
Management Agreement. Borrower shall (i) cause the Property to be managed pursuant to the Management Agreement; (ii) promptly
perform and observe all of the covenants required to be performed and observed by it under the Management Agreement and do all
things necessary to preserve and to keep unimpaired its rights thereunder; (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 expenditure plan, and property improvement plan and any other notice, report and estimate received by Borrower 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. Without Lender's prior written consent, Borrower shall
not (a) surrender, terminate, cancel, extend or renew the Management Agreement or otherwise replace the Manager or enter into
any other management agreement (except pursuant to Section 5.12.2 below); (b) reduce or consent to the reduction of the
term of the Management Agreement; (c) increase or consent to the increase of the amount of any charges under the Management Agreement;
(d) otherwise modify, change, supplement, alter or amend in any material respect, or waive or release any of its rights and remedies
under, the Management Agreement; (e) suffer or permit the occurrence and continuance of a default beyond any applicable cure period
under the Management Agreement (or any successor management agreement) if such default permits the Manager to terminate the Management
Agreement (or such successor management agreement); or (f) suffer or permit the ownership, management or control of the Manager
to be transferred to a Person other than an Affiliate of Borrower.

 

    	 	49	 

     

    

 

5.12.2
Termination of Manager. If (i) an Event of Default shall be continuing, or (ii) Manager is in default under the Management
Agreement, or (iii) Manager shall become a debtor in any bankruptcy or insolvency proceeding or (iv) upon the gross negligence,
malfeasance or willful misconduct of Manager, Borrower shall, at the request of Lender, O terminate the Management Agreement and
replace Manager with a replacement manager acceptable to Lender in Lender's discretion, and, if a Securitization has occurred,
the applicable Rating Agencies, on terms and conditions satisfactory to Lender and, if a Securitization has occurred, the applicable
Rating Agencies. Borrower's failure to appoint an acceptable manager within thirty (30) days after Lender's request of Borrower
to terminate the Management Agreement shall constitute an immediate Event of Default. Borrower may from time to time appoint a
successor manager to manage the Property, provided that such successor manager and Management Agreement shall be approved in writing
by Lender in Lender's discretion and, if a Securitization has occurred, the applicable Rating Agencies (and Lender's approval
may be conditioned upon Borrower delivering a Rating Comfort Letter if the Loan, by itself or together with other loans, has been
the subject of a Secondary Market Transaction, and if required pursuant to a Pooling and Servicing Agreement from and after the
occurrence of a Secondary Market Transaction) as to such successor 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 a consent
and subordination of management agreement substantially in the form of the Consent and Subordination of Manager of even date herewith
executed and delivered by Manager to Lender.

 

5.13
        Special Purpose Bankruptcy Remote Entity. Borrower shall at all times be a Special Purpose Bankruptcy Remote Entity. Borrower
shall not directly or indirectly make any change, amendment or modification to its organizational documents, or otherwise take
any action which could result in Borrower not being a Special Purpose Bankruptcy Remote Entity. A "Special Purpose Bankruptcy
Remote Entity" shall have the meaning set forth on Schedule 5 hereto.

 

5.14
         (Intentionally Deleted).

 

5.15
         Change in Business or Operation of Property. Borrower shall not purchase or own any real property other than the Property
and shall not enter into any line of business other than the ownership and operation of the Property, or make any material change
in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other than
the continuance of its present business or otherwise cease to operate the Property as a retail property or terminate such business
for any reason whatsoever (other than temporary cessation in connection with renovations to the Property).

 

5.16
        Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than 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.

 

    	 	50	 

     

    

 

5.17
        Affiliate Transactions. Borrower shall not enter into, or be a party to, any transaction with an Affiliate of Borrower
or any of the members 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.

 

5.18
         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.

 

5.19
         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.

 

5.20
         Principal Place of Business. Borrower shall not change its principal place of business or chief executive office from the
address set forth in Section 6.1 hereof without first giving Lender thirty (30) days' prior written notice.

 

5.21
         Change of Name, Identity or Structure. Borrower shall not change its name, identity (including its trade name or names)
or 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, in the case of a change in Borrower's structure, without first obtaining
the prior written consent of Lender (but subject to the Permitted Transfer provisions in this Agreement). 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.

 

5.22
          Indebtedness. Borrower shall not directly or indirectly create, incur or assume any indebtedness other than (i) the Debt
and (ii) unsecured trade payables incurred in the ordinary course of business relating to the ownership and operation of the Property,
which in the case of such unsecured trade payables (A) are not evidenced by a note, (B) do not exceed, at any time, a maximum
aggregate amount of one percent (1%) of the original amount of the Principal and (C) are paid within thirty (30) days of the date
incurred (collectively, "Permitted Indebtedness").

 

    	 	51	 

     

    

 

5.23        
Licenses: Intellectual Property; Website.

 

5.23.1
Licenses. Borrower shall not Transfer any License required for the operation of the Property.

 

5.23.2
Intellectual Property. Borrower shall keep and maintain all Intellectual Property relating to the use or operation of the
Property and all Intellectual Property shall be held by and (if applicable) registered in the name of Borrower. Borrower shall
not Transfer or let lapse any Intellectual Property without Lender's prior consent.

 

5.23.3
Website. Any website with respect to the Property (other than tenant websites) shall be maintained by or on behalf of Borrower
and any such website shall be C registered in the name of Borrower. Borrower shall not Transfer any such website without Lender's
prior consent.

 

5.24
       Compliance with Restrictive Covenants. Borrower shall at all times comply in all material respects with all Operations
Agreements. Borrower will not enter into, modify, waive in any material respect or release any Easements, Operations Agreements
or other Permitted Encumbrances, or suffer, consent to or permit the foregoing, without Lender's prior written consent, which
consent may be granted or denied in Lender's sole discretion.

 

5.25        
ERISA.

 

(l)       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 or any assignee 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 ERISA or Section 4975 of the Code.

 

(2)       Borrower's
covenant in clause (I) above is based on the assumption that no portion of the assets used by Lender in connection with
the transactions contemplated under this Agreement and the other Loan Documents constitutes assets of a "benefit plan investor"
as defined in Section 3(42) of ERISA and with respect to which Borrower is a party in interest (as defined in Section 3(14) of
ERISA) or a disqualified person (as defined in Section 4975 of the Code) unless the conditions of an available prohibited transaction
exemption are satisfied.

 

(3)       Borrower
shall not maintain, sponsor, contribute to or become obligated to contribute to, or suffer or permit any ERISA Affiliate of Borrower
to, maintain, sponsor, contribute to or become obligated to contribute to, any Plan or any Welfare Plan or pennit the assets of
Borrower to become "plan assets," within the meaning of 29 C.F.R. 25 10.3-101, as modified in application by Section
3(42) of ERISA.

 

    	 	52	 

     

    

 

(4)       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) neither Borrower nor Guarantor is or maintains an "employee benefit plan" as defined in
Section 3(3) of ERISA, which is subject to Title I of ERISA, or a "governmental plan" within the meaning of Section
3(32) of ERISA; (B) neither Borrower nor Guarantor is subject to state statutes regulating investments and fiduciary obligations
with respect to governmental plans; and (C) neither the assets of Borrower nor Guarantor constitute "plan assets" within
the meaning of 29 C.F.R. Section 2510.3-101, as modified in application by Section 3(42) of ERISA of any "benefit plan investor"
as defined in Section 3(42) of ERISA.

 

5.26        
Prohibited Transfers.

 

5.26.1
Generally. Borrower shall not directly or indirectly make, suffer or permit the occurrence of any Transfer other than a
Permitted Transfer. Borrower shall provide Lender with copies of all organizational documents (if any) relating to any Permitted
Transfer. Borrower shall pay on demand all of the reasonable costs and expenses incurred by Lender, including reasonable attorneys'
fees and expenses, and, if a Securitization has occurred, including the fees and expenses of Rating Agencies and other outside
entities, in connection with considering any proposed Transfer, whether or not the same is permitted or occurs.

 

5.26.2
Transfer and Assumption.

 

(a)       Notwithstanding
the foregoing and subject to the terms and satisfaction of all of the conditions precedent set forth in this Section 5.26.2, Borrower
shall have a one-time right to Transfer the Property to another party (the "Transferee Borrower") and have the Transferee
Borrower assume all of Borrower's obligations under the Loan Documents, and have replacement guarantors and indemnitors assume
all of the obligations of the indemnitors and guarantors of the Loan Documents (collectively, a "Transfer and Assumption").
Borrower may make a written application to Lender for Lender's consent to the Transfer and Assumption, subject to the conditions
set forth in paragraphs (b) and (c) of this Section 5.26.2. Together with such written application, Borrower will pay to
Lender the reasonable review fee then required by Lender. Borrower also shall pay on demand all of the reasonable costs and expenses
incurred by Lender, including reasonable attorneys' fees and expenses, and, if a Securitization has occurred, including the fees
and expenses of Rating Agencies and other outside entities, in connection with considering any proposed Transfer and Assumption,
whether or not the same is permitted or occurs.

 

(b)       Lender's
consent, which may be withheld in Lender's sole and absolute discretion, to a Transfer and Assumption shall be subject to the
following conditions:

 

(i)       No
Default or Event of Default has occurred and is continuing;

 

(ii)       Borrower
has submitted to Lender true, correct and complete copies of any and all information and documents of any kind requested by Lender
concerning the Property, Transferee Borrower, replacement guarantors and indemnitors and Borrower;

 

    	 	53	 

     

    

 

(iii)       Evidence
satisfactory to Lender has been provided showing that the Transferee Borrower and such of its Affiliates as shall be designated
by Lender comply and will comply with Section 5.13 hereof, as those provisions may be modified by Lender taking into account the
ownership structure of Transferee Borrower and its Affiliates;

 

(iv)       If
the Loan, by itself or together with other loans, has been the subject of a Secondary Market Transaction, then Lender shall have
received a Rating Comfort Letter from the applicable Rating Agencies (if required pursuant to a Pooling and Servicing Agreement
from and after the occurrence of a Secondary Market Transaction);

 

(v)       If
the Loan has not been the subject of a Secondary Market Transaction, then Lender shall have determined in its reasonable discretion
(taking into consideration such factors as Lender may determine, including the attributes of the loan pool in which the Loan might
reasonably be expected to be securitized) that no rating for any securities that would be issued in connection with such Securitization
will be diminished, qualified, or withheld by reason of the Transfer and Assumption;

 

(vi)       Borrower
shall have paid all of Lender's reasonable costs and expenses in connection with considering the Transfer and Assumption, and
shall have paid the amount requested by Lender as a deposit against Lender's costs and expenses in connection with effecting the
Transfer and Assumption;

 

(vii)       Borrower,
the Transferee Borrower, and the replacement guarantors and indemnitors shall have indicated in writing in form and substance
reasonably satisfactory to Lender their readiness and ability to satisfy the conditions set forth in subsection (c) below;

 

(viii)     The
identity, experience, financial condition and creditworthiness of the Transferee Borrower and the replacement guarantors and indemnitors
shall be satisfactory to Lender; and

 

(ix)        The
proposed property manager and proposed Management Agreement shall be satisfactory to Lender and, if a Securitization has occurred,
the applicable Rating Agencies; and

 

(x)         If
all or any portion of the Loan is the subject of a colender, participation, syndication or other similar agreement and the consent
or approval of one or more of the co-lenders, participants, syndicate lenders or other similar parties is required thereunder
with respect to the proposed Transfer and Assumption, all such required consents or approvals have been obtained .

 

    	 	54	 

     

    

 

(c)       If
Lender consents to the Transfer and Assumption, the Transferee Borrower and/or Borrower as the case may be, shall immediately
deliver the following to Lender:

 

(i)
Borrower shall deliver to Lender an assumption fee in the amount of one percent (l %) of the then unpaid Principal.

 

(ii)
Borrower, Transferee Borrower and the original and replacement guarantors and indemnitors shall execute and deliver to Lender
any and all documents required by Lender, in form and substance required by Lender, in Lender's sole discretion;

 

(iii)
Counsel to the Transferee Borrower and replacement guarantors and indemnitors shall deliver to Lender opinions in form and substance
satisfactory to Lender as to such matters as Lender shall require, which may include opinions as to substantially the same matters
and were required in connection with the origination of the Loan;

 

(iv)
Borrower shall cause to be delivered to Lender, an endorsement (relating to the change in the identity of the vestee and execution
and delivery of C the Transfer and Assumption documents) to the Title Insurance Policies in form and substance acceptable to Lender,
in Lender's reasonable discretion (the "Endorsement"); and

 

(v)
Borrower shall deliver to Lender a payment in the amount of all remaining unpaid costs incurred by Lender in connection with the
Transfer and Assumption, including but not limited to, Lender's reasonable attorneys' fees and expenses, all recording fees, and
all fees payable to the title company for the delivery to Lender of the Endorsement.

 

(d)       In
addition to (and separate and distinct from) the foregoing provisions of this Section 5.26.2, Borrower shall have a one-time right
to Transfer the Property to a special purpose entity (the "REITSPE") Controlled by a Real Estate Investment Trust that
is an Affiliate of Borrower (the "Affiliated REIT") and have the Affiliated REIT assume all of Borrower's obligations
under the Loan Documents, (collectively, a "REIT Transfer"), so long as:

 

(i)
Borrower has submitted to Lender true, correct and complete copies of any and all information and documents of any kind requested
by Lender concerning the Property, the Affiliated REIT, the REIT SPE, Guarantor and Borrower;

 

(ii)
the sales price for the conveyance of the Property from Borrower to the REIT SPE is equal to or greater than the appraised value
of the Property as determined by Lender in connection with the closing of the Loan;

 

(iii)
the REIT Transfer occurs during the first nine (9) months of the Loan term;

 

    	 	55	 

     

    

 

(iv)
no Default or Event of Default has occurred and is continuing;

 

(v)
Borrower and the REIT SPE enter into an assumption agreement in form and substance satisfactory to Lender and its counsel and
execute and deliver to Lender any and all documents required by Lender, in form and substance required by Lender, in Lender's
sole discretion;

 

(vi)
the organizational documents for the REIT SPE and the Affiliated REIT are approved by Lender and its counsel, including, without
limitation, evidence satisfactory to Lender has been provided showing that the REIT SPE and such of its Affiliates as shall be
designated by Lender comply and will comply with Section 5.13 hereof, as those provisions may be modified by Lender taking into
account the ownership structure of the REIT SPE, the Affiliated REIT and their respective Affiliates;

 

(vii)
Guarantor will remain liable for the Guaranteed Obligations (as defined in the Guaranty of Recourse Obligations made by Guarantor
in favor of Lender dated of the even date herewith) and will control the Affiliated REIT in the same manner as they control Borrower;

 

(viii)
members of the Affiliated REIT that are not also members of Borrower ("New REIT Members") shall not own more than 49%
of the direct or indirect interests in the REIT SPE;

 

(ix)
Guarantor, the REIT SPE, the New REIT Members and the Affiliated REIT, as applicable, (y) shall remake and shall be deemed to
remake the representations contained in the Loan Documents, including those relating to Special Purpose Bankruptcy Remote Entity
requirements, ERISA matters, the USA Patriot Act, OFAC and matters concerning Embargoed Persons, in each case as of the date of
the REIT Transfer, and (z) shall satisfy, to Lender's satisfaction, Lender's "know your customer" requirements relating
to the creditworthiness, reputation, background and qualifications of the Affiliated REIT; provided, however, that Lender's "know
your customer" requirements will only apply if (l) any New REIT Member owns or will own equal to or more than a twenty percent
(20%) direct or indirect interest in the Affiliated REIT, and (2) such REIT Transfer occurs in connection with a private offering
and transfer using a confidential private placement memorandum, offering circular, prospectus, registration statement or similar
offering document (as opposed to the Transfer of REIT shares on the Nasdaq Capital Market or any other nationally recognized stock
exchange);

 

(x)
the Affiliated REIT shall provide such legal opinions, endorsements to the Title Insurance Policies and other documentation as
Lender shall reasonably require in form and substance satisfactory to Lender;

 

(xi)
the Manager shall continue to be the property manager for the Property;

 

(xii)
If the Loan, by itself or together with other loans, has been the subject of a Secondary Market Transaction, then Lender shall
have received a Rating Comfort Letter from the applicable Rating Agencies (if required pursuant
to a Pooling and Servicing Agreement from and after the occurrence of
a Secondary Market Transaction);

 

    	 	56	 

     

    

 

(xiii)
If the Loan has not been the subject of a Secondary Market Transaction, then Lender shall
have determined in its reasonable discretion (taking into consideration such factors as Lender may determine, including the attributes
of the loan pool in which the Loan might reasonably be expected to be securitized) that no rating for any securities that would
be issued in connection with such Securitization will be diminished, qualified, or withheld
by reason of the Transfer and Assumption; and

 

(xiv)
if the REIT Transfer occurs on or before nine (9) months from the date of this Agreement, Borrower shall not be required to pay
an assumption fee; however, Borrower shall pay on demand, and shall have paid, all of the reasonable costs and expenses incurred
by Lender, including reasonable attorneys' fees and expenses, all recording fees,
all fees payable to the title company for the delivery to Lender of the title endorsement and, if a Securitization has occurred,
including the fees and expenses of Rating Agencies and other outside entities, in connection with considering the proposed
REIT Transfer, whether or not the same actually occurs.

 

5.27
          Liens. Without Lender's prior written consent, Borrower shall not create, incur, assume, permit or suffer to exist any
Lien on all or any portion of the Property or any direct or indirect legal or beneficial ownership interest in Borrower or Sole
Member, except Liens in favor of Lender and Permitted Encumbrances, unless such Lien is bonded or discharged within thirty (30)
days after Borrower first receives notice of such Lien.

 

5.28        
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 Sole Member to (A)
dissolve, wind up or liquidate or take any action, or omit to take any action, as a result of which Sole Member would be dissolved,
wound up or liquidated in whole or in part, or (B) amend, modify, waive or terminate the certificate of formation or operating
agreement of Sole Member, in each case without obtaining the prior consent of Lender.

 

    	 	57	 

     

    

 

5.29        
Expenses.

 

(a)       Borrower
shall pay or, if Borrower fails to pay, reimburse Lender upon receipt of notice from Lender for all reasonable out-of-pocket costs
and expenses (including reasonable attorneys' fees and disbursements) incurred by Lender or Servicer in connection with the Loan,
including (i) the preparation, negotiation, execution and delivery of the Loan Documents and the consummation of the transactions
contemplated thereby and all the costs of furnishing all opinions by
counsel for Borrower; (ii) Borrower's and Lender's ongoing performance under and compliance with the Loan Documents, including
confirming compliance with environmental and insurance requirements; (iii) the negotiation, preparation, execution, delivery and
administration of any consents, amendments, waivers or other modifications of or under any Loan Document and any other documents
or matters requested by Lender or Borrower; (iv) filing and recording of any Loan Documents; (v) title insurance, surveys, inspections
and appraisals; (vi) the creation, perfection or protection of Lender's Liens in the Property and the Cash Management Accounts
(including fees and expenses for title and lien searches, intangibles taxes, personal property taxes, mortgage recording taxes,
due diligence expenses, travel expenses, accounting firm fees, costs of appraisals, environmental reports and Lender's Consultant,
surveys and engineering reports); (vii) 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, the Loan Documents,
the Property, or any other security given for the Loan; (viii) fees charged by Servicer or, if a Securitization has occurred,
the Rating Agencies in connection with the Loan or any modification thereof and (ix) enforcing any obligations of or collecting
any payments due from Borrower under any Loan Document or with respect to the Property or in connection with any refinancing or
restructuring of the Loan in the nature of a "work-out", or any insolvency or bankruptcy proceedings.

 

(b)       In
addition, in connection with any Rating Comfort Letter, Review Waiver or other Rating Agency consent, approval or review
requested or required hereunder (other than the initial review of the Loan by the Rating Agencies in connection with a
Securitization), Borrower shall pay all of the reasonable costs and expenses of Lender and Servicer and the costs and
expenses of each Rating Agency in connection therewith, and, if applicable, shall pay any fees imposed by any Rating Agency
in connection therewith.

 

(c)       Any
costs and expenses due and payable by Borrower hereunder which are not paid by Borrower within ten (10) days after demand may
be paid from any amounts in the Deposit Account, with notice thereof to Borrower. The obligations and liabilities of Borrower
under this Section 5.29 shall survive the Term and the exercise by Lender of any of its rights or remedies under the Loan
Documents, including the acquisition of the Property by foreclosure or a conveyance in lieu of foreclosure.

 

    	 	58	 

     

    

 

5.30      
Indemnity. Borrower shall defend, indemnify and hold harmless Lender and each of its Affiliates and their respective successors
and assigns, including the directors, officers, partners, members, shareholders, participants, employees, professionals and agents
of any of the foregoing (including any Servicer) and each other Person, if any, who Controls Lender, its Affiliates or any of
the foregoing (each, an "Indemnified Party"), 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 an Indemnified Party in connection with any investigative, administrative or
judicial proceeding commenced or threatened, whether or not Lender shall be designated a party thereto, court costs and costs
of appeal at all appellate levels, investigation and laboratory fees, consultant fees and litigation expenses), that may be imposed
on, incurred by, or asserted against any Indemnified Party (collectively, the "Indemnified Liabilities") in any manner,
relating to or arising out of or by reason of the Loan, including: (i) any breach by C Borrower of its obligations under, or any
misrepresentation by Borrower contained in, any Loan Document; (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) the presence, disposal, escape, seepage, leakage, spillage,
discharge, emission, release, or threatened release of any Hazardous Substance on, from or affecting the Property; (ix) any personal
injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Substance;
(x) any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Substance; (xi) any
violation of the Environmental Laws which is based upon or in any way related to such Hazardous Substance, including the costs
and expenses of any Remedial Work; (xii) any failure of the Property to comply with any Legal Requirement; (xiii) 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 (xiv) 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; provided, however, that Borrower shall not have any obligation to any Indemnified Party hereunder
to the extent that it is finally judicially determined that such Indemnified Liabilities arise from the gross negligence, illegal
acts, fraud or willful misconduct of such Indemnified Party. Any amounts payable to any Indemnified Party by reason of the application
of this paragraph shall be payable on demand and shall bear interest at the Default Rate from the date loss or damage is sustained
by any Indemnified Party until paid. The obligations and liabilities of Borrower under this Section 5.30 shall survive
the Term and the exercise by Lender of any of its rights or remedies under the Loan Documents, including the acquisition of the
Property by foreclosure or a conveyance in lieu of foreclosure.

 

    	 	59	 

     

    

 

5.31        
Patriot Act Compliance.

 

(a)       Borrower
will use its good faith and commercially reasonable efforts to comply with the Patriot Act (as defined below) 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, from time to time, 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 reasonable 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. For purposes hereof, the term "Patriot Act" means the Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as the same may be
C amended from time to time, and corresponding provisions of future laws. Neither Borrower nor any partner in Borrower or member
of such partner nor any owner of a direct or indirect interest in Borrower (a) is listed on any Government Lists (as defined below),
(b) 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 (as defined
below) or in any enabling legislation or other Presidential Executive Orders in respect thereof, (c) has been previously indicted
for or convicted of any felony involving a crime or crimes of moral turpitude or for any Patriot Act Offense (as defined below),
or (d) 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 the (e) 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 (i) the Specially Designated Nationals and Blocked Persons Lists maintained by the Office of Foreign Assets
Control ("OFAC"), (ii) 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 (iii) any similar lists maintained by the United States Department of State, the United States Department of Commerce or any
other government 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".

 

    	 	60	 

     

    

 

(c)
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, Key Principals or Guarantors 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. §§1 701 et seq., The Trading with the Enemy Act,
50 U.S.C. App. I et seq., and any Executive Orders or regulations promulgated thereunder, with the result that the investment
in Borrower, Key Principals or Guarantors, 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, Key Principals or Guarantors, as applicable, with the result that the investment
in Borrower, Key Principals or Guarantors, 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, Key Principals or Guarantors, as applicable, shall be derived
from any unlawful activity with the result that the investment in Borrower, Key Principals or Guarantors, as applicable (whether
directly or indirectly), would be prohibited by law or the Loan would be in violation of law.

 

5.32
        Approval of Major Contracts. Borrower shall not, without Lender's prior O consent: (a) enter into, surrender or terminate
any Major Contract to which it is a party or to which Borrower or the Property is subject (unless the other party thereto is in
material default and the termination of such agreement would be commercially reasonable), (b) increase or consent to the increase
of the amount of any charges under any Major Contract to which it is a party or to which Borrower or the Property is subject,
except as provided therein or on an arm's-length basis and commercially reasonable terms; or (c) otherwise modify, change, supplement,
alter or amend, or waive or release any of its rights and remedies under any Major Contract to which it is a party or to which
Borrower or the Property is subject in any material respect, except on an arm's-length basis and commercially reasonable terms.

 

		6.	NOTICES AND REPORTING

 

6.1         
Notices. All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document
(a "Notice") shall be given in writing and shall be effective for all purposes if either hand delivered with receipt
acknowledged, or by a nationally recognized overnight delivery service (such as Federal Express), or by certified or registered
United States mail, return receipt requested, postage prepaid, or by facsimile and confirmed by facsimile answer back, in each
case addressed as follows (or to such other address or Person as a party shall designate from time to time by notice to the other
party):

 

If
to Lender:

Jefferies
LoanCore LLC c/o LoanCore Capital

55
Railroad Avenue, Suite 100

Greenwich,
Connecticut 06830

Attention:
Dan Bennett

Facsimile
No.: (203) 861-6006

 

    	 	61	 

     

    

 

with
a copy to:

Carlton
Fields

1201
West Peachtree Street NW

Suite
3000

Atlanta,
Georgia 30309

Attention:
W. Gregory Null, Esq. Facsimile No.: (404) 815-3415

 

If
to Borrower:

 

Medalist
Fund I-A, LLC

I
I S. 12th Street, Suite 401

Richmond,
Virginia 23219

Attention:
William R. Elliott

Facsimile
No.: (804)-344-5072

 

with a copy to:

Kaplan
Voekler Cunningham & Frank PLC

1401
E. cary Street

Richmond,
Virginia 23219

Attention:
D. Zachary Grabill

Facsimile
No.: 804-823-4099

 

A
notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery; in the case of registered or
certified mail, when delivered or the first attempted delivery on a Business Day; in the case of overnight delivery, upon the
first attempted delivery on a Business Day; or in the case of facsimile, upon the confirmation of such facsimile transmission.

 

6.2          Borrower Notices and Deliveries. Borrower shall (a) give prompt written notice to Lender of: (i) any litigation, governmental
proceedings or claims or investigations pending or threatened against Borrower or Sole Member which might materially adversely
affect Borrower's or Sole Member's condition (financial or otherwise) or business or the Property; (ii) any material adverse change
in Borrower's or Sole Member's condition, financial or otherwise, or of the occurrence of any Default or Event of Default of which
Borrower has knowledge; and (b) furnish and provide to Lender: (i) any Securities and Exchange Commission or other public filings,
if any, of Borrower, Sole Member, Manager, or any Affiliate of any of the foregoing within two (2) Business Days of such filing
and (ii) all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications,
appraisals, title and other insurance reports and agreements, reasonably requested, from time to time, by Lender. In addition,
after request by Lender (but no more frequently than twice in any year), Borrower shall furnish to Lender (x) within ten (10)
days, a certificate addressed to Lender, its successors and assigns reaffirming all representations and warranties of Borrower
set forth in the Loan Documents as of the date requested by Lender or, to the extent of any changes to any such representations
and warranties, so stating such changes, and (y) within thirty (30) days, tenant estoppel certificates addressed to Lender, its
successors and assigns from each tenant at the Property in form and substance reasonably satisfactory to Lender.

 

    	 	62	 

     

    

 

6.3
           Financial Reporting.

 

6.3.1
Bookkeeping. Borrower shall keep on a calendar year basis, in accordance with GAAP, proper and accurate books, records and
accounts reflecting all of the financial affairs of Borrower and all items of income and expense and any services, Equipment or
furnishings provided in connection with the operation of the Property, whether such income or expense is realized by Borrower,
Manager or any Affiliate of Borrower. Lender shall have the right from time to time during normal business hours upon reasonable
notice to examine such books, records and accounts at the office of Borrower or other Person maintaining them, 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.

 

6.3.2
Annual Reports. Borrower shall furnish to Lender annually, within 120 days after each calendar year, a complete copy of
Borrower's annual financial statements audited by a "big four" accounting firm or another independent certified public
accountant (accompanied by an unqualified opinion from such accounting firm or other independent certified public accountant)
reasonably acceptable to Lender, each in accordance with GAAP and containing balance sheets and statements of profit and loss
for Borrower and the Property in such detail as Lender may request. Each such statement (x) shall be in form and substance satisfactory
to Lender, (y) shall set forth the financial condition and the income and expenses for the Property for the immediately preceding
calendar year, including statements of annual Net Operating Income as well as (l) a list of tenants, if any, occupying more than
twenty percent (20%) of the rentable space of the Property, (2) a breakdown showing (a) the year in which each Lease then in effect
expires, (b) the percentage of rentable space covered by such Lease, (c) the percentage of base rent with respect to which Leases
shall expire in each such year, expressed both on a per year and a cumulative basis and (z) shall be accompanied by an Officer's
Certificate certifying (l) that such statement is true, correct, complete and accurate and presents fairly the financial condition
of the Property and has been prepared in accordance with GAAP, (2) whether there exists a Default or Event of Default, and if
so, the nature thereof, the period of time it has existed and the action then being taken to remedy it, (3) that as of the date
of such 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 taken in relation thereto and (4) the amount by which operating expenses
incurred by Borrower for such period were greater than or less than the operating expenses reflected in the applicable Annual
Budget.

 

    	 	63	 

     

    

 

6.3.3
Monthly/Quarterly Reports. Borrower shall furnish to Lender within fifteen (15) days after the end of each calendar month
prior to the Securitization and, thereafter, within thirty (30) days after the end of each calendar quarter (as indicated below)
the following items: (i) monthly (or, if it is after the Securitization, quarterly) and year-to-date operating statements, noting
Net Operating Income and other information necessary and sufficient under GAAP to fairly represent the financial position and
results of operation of the Property during such calendar month (or, if it is after the Securitization, such calendar quarter),
all in form satisfactory to Lender; (ii) a balance sheet for such calendar month (or, if it is after the Securitization, such
calendar quarter); (iii) a comparison of the budgeted income and expenses and the actual income and expenses for each month and
year-to-date for the Property, together with a detailed explanation of any variances of ten percent (10%) or more between budgeted
and actual amounts for such period and year-to-date; (iv) a statement of the actual Capital Expenses made by Borrower during each
calendar quarter as of the last day of such calendar quarter; (v) a statement that Borrower has not incurred any indebtedness
other than indebtedness permitted hereunder; (vi) an aged receivables report and (vii) rent rolls identifying the leased premises,
names of all tenants, units leased, monthly rental and all other charges payable under each Lease, date to which paid, term of
Lease, date of occupancy, date of expiration, material special provisions, concessions or inducements granted to tenants, and
a year-by-year schedule showing by percentage the rentable area of the Improvements and the total base rent attributable to Leases
expiring each year) and a delinquency report for the Property. Each such statement shall be accompanied by an Officer's Certificate
certifying, to the best of the signer's knowledge, (l) that such items are true, correct, accurate, and complete and fairly present
the financial condition and results of the operations of Borrower and the Property in accordance with GAAP (subject to O normal
year-end adjustments), (2) whether there exists a Default or Event of Default, and if so, the nature thereof, the period of time
it has existed and the action then being taken to remedy it, (3) that as of the date of such 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 taken in relation thereto and (4) the amount by which operating expenses incurred by Borrower for such period were greater
than or less than the operating expenses reflected 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.

 

6.3.4
Other Reports. Borrower shall furnish to Lender, within twenty (20) Business Days after request, such further detailed
information with respect to the operation of the Property and the financial affairs of Borrower, Sole Member or Manager as may
be reasonably requested by Lender or, if a Securitization has occurred, any applicable Rating Agency.

 

    	 	64	 

     

    

 

6.3.5
Annual Budget. Borrower shall prepare and submit (or shall cause Manager to prepare and submit) to Lender within thirty
(30) days after a Cash Management Period and by November 30th of each year thereafter during the Term until such Cash Management
Period has ended, for approval by Lender, which approval shall not be unreasonably withheld or delayed, a proposed pro forma budget
for the Property for the succeeding calendar year (the "Annual Budget", and each Annual Budget approved by Lender is
referred to herein as the "Approved Annual Budget")), and, promptly after preparation thereof, any revisions to such
Annual Budget. The Annual Budget shall consist of (i) an operating expense budget showing, on a month-by-month basis, in reasonable
detail, each line item of Borrower's anticipated operating income and operating expenses (on a cash and accrual basis), including
amounts required to establish, maintain and/or increase any monthly payments required hereunder (and once such Annual Budget has
been approved by Lender, such operating expense budget shall be referred to herein as the "Approved Operating Budget"),
and (ii) a Capital Expense budget showing, on a month-by-month basis, in reasonable detail, each line item of anticipated Capital
Expenses (and once such Annual Budget has been approved by Lender, such Capital Expense budget shall be referred to herein as
the "Approved Capital Budget"). 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 (including increases
for any non-discretionary expenses)).

 

6.3.6
Breach. If Borrower fails to provide to Lender or its designee any of the financial statements, certificates, reports or
information (the "Required Records") required by this Article 6 within thirty (30) days after the date upon which such
Required Record is due, Borrower shall pay to Lender, at Lender's option and in its discretion, an amount equal to $10,000 for
each Required Record that is not delivered; provided Lender has given Borrower at least fifteen (15) days prior notice of such
failure. In addition, thirty (30) days after Borrower's failure to deliver any Required Records, Lender shall have the option,
upon fifteen (15) days' notice to Borrower to gain access to Borrower's books and records and prepare or have prepared at Borrower's
expense, any Required Records not delivered by Borrower.

 

		7.	INSURANCE'
CASUALTY AND CONDEMNATION

 

7.1            Insurance.

 

7.1.1
Coverage. Borrower, at its sole cost, for the mutual benefit of Borrower and Lender, shall obtain and maintain during the
Term the following policies of insurance:

 

(a)
Property insurance insuring against loss or damage customarily included under so called "all risk" or "special
form" policies including but not limited to fire, lightning, windstorm/hail, vandalism, and malicious mischief, boiler and
machinery and subject to subsection (m) below, coverage for damage or destruction caused by the acts of "Terrorists",
both foreign and domestic, (or such policies shall have no exclusion from coverage with respect thereto) and such other insurable
hazards as, under good insurance practices, from time to time are insured against for other property and buildings similar to
the premises in nature, use, location, height, and type of construction. Such insurance policy shall also insure for ordinance
of law coverage, coverage for loss to the undamaged portion of the building, costs of demolition and increased cost of construction
in amounts satisfactory to Lender. Each such insurance policy shall (i) be in an amount equal to 100% of the then replacement
cost of the Improvements without deduction for physical depreciation, (ii) have deductibles no greater than $10,000, , (iii) be
paid annually in advance and (iv) be on a replacement cost basis and contain either no coinsurance or, if coinsurance, an agreed
amount endorsement, and shall cover, without limitation, all tenant improvements and betterments that Borrower is required to
insure on a replacement cost basis. Lender shall be named Mortgagee and Lender's Loss Payee on a Standard Mortgagee Endorsement.

 

    	 	65	 

     

    

 

(b)
Flood insurance if any part of the Property is located in an area now or hereafter designated by the Federal Emergency Management
Agency as a Special Flood Hazard Area, or such other Zone if Lender so requires in its sole discretion. Such coverage shall (i)
be in an amount equal to the maximum limit available through the National Flood Insurance Program, (ii) include such excess limits
in an amount equal to (A) 100% of the full replacement cost of the Improvements on the Property (without any deduction for depreciation)
or (B) such other amount as agreed to by Lender and (iii) have deductibles acceptable to Lender.

 

(c)
Commercial general liability insurance, including coverage for personal injury, bodily injury, death, accident and property damage,
and excess and/or umbrella liability coverage for personal injury, bodily injury, death, accident and property damage, such insurance
providing in combination no less than containing minimum limits per occurrence of $1 and $2,000,000 in the aggregate (applying
 "per location" if the policy covers more than one location) for any policy year with no deductible or self-insured retention;
together with at least $8,000,000 excess and/or umbrella liability insurance for any and all claims. Such excess and/or umbrella
liability shall schedule the auto liability, liquor liability and/or employer's liability policies, to the extent such coverages
are required. The policies described in this subsection shall also include coverage for Terrorism, elevators, escalators, independent
contractors, and contractual liability for insured contracts (covering, to the maximum extent permitted by law, Borrower's obligation
to indemnify Lender as required under this Agreement and the other Loan Documents). Coverage shall include acts of foreign and
domestic terrorism.

 

(d)
Rental loss and/or business interruption insurance in an amount equal to 100% of the projected gross revenues and/or Rents (less
any non-continuing expenses) for a period of at least 18 months. The period of indemnification shall include the initial period
of restoration, which is the period of time required to rebuild the Property following a casualty, and an extended period of indemnity
endorsement for a period of 6 months, which provides that after the physical loss to the 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 until the limit
for such coverage as required above is exhausted, whichever first occurs, and notwithstanding that the policy may expire prior
to the end of such period. The amount of such insurance shall be increased from time to time during the Term as and when the estimated
or actual gross revenues and/or Rents increase. Coverage shall include acts of foreign and domestic terrorism.

 

(e)
Comprehensive boiler and machinery insurance covering all mechanical and electrical equipment against physical damage, rent loss
and improvements loss and covering, without limitation, all tenant improvements and betterments that Borrower is required to insure
pursuant to the lease on a replacement cost basis and in an amount equal to the full replacement cost of the Improvements on the
Property (without any deduction for depreciation) or such other amount acceptable to Lender.

 

(f)
Worker's compensation insurance with respect to any employees of Borrower, as required by any Legal Requirement and employer's
liability with minimum limits of $1 each accident, $1,000,000 each disease per employee, and $1 each disease policy limit.

 

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(g)
During any period of repair or restoration, and only if the property and liability coverage forms do not otherwise apply, (A)
commercial general liability and umbrella liability insurance covering claims related to the repairs or restoration at the Property
that are not covered by or under the terms or provisions of the insurance provided for in Section 7.1. I (c) and (B) the
insurance provided for in Section 7.1.l(a), which shall, in addition to the requirements set forth in such Section, (l)
be written on a builder's "all-risk" insurance on a completed value, non-reporting form, in an amount equal to not less
than the full insurable value of the Property, against such risks (including fire and extended coverage and collapse of the Improvements
to agreed limits) as Lender may request, in form and substance and with deductibles acceptable to Lender and against all risks
insured against pursuant to clauses (a), (b), Cd),
G), and of Section 7.1.1 and (2) include permission to occupy the Property.

 

(h)
If required by Lender, earthquake insurance (A) with minimum coverage equivalent to the greater of 1.0x SUL (scenario upper loss)
and 1.5x SEL (scenario expected loss) multiplied by the full replacement cost of the building plus business income, (B) having
a deductible not in excess of 5% of the total insurable value of the Property, and (C) if the Property is legally nonconforming
under applicable zoning ordinances and codes, containing ordinance of law coverage in amounts as required by Lender.

 

(i)
Insurance against employee dishonesty in an amount acceptable to Lender (if applicable);

 

(j)
Commercial auto liability coverage for all owned, non-owned and hired autos containing minimum limits per occurrence of $ I (if
applicable);

 

(k)
Liquor liability coverage containing minimum limits of $1,000,000 or in such greater amount as may be required by applicable
Legal Requirements (if applicable).

 

(l)
such other insurance (including environmental liability insurance, earthquake insurance and mine subsidence insurance) and such
higher limits as may from time to time be reasonably required by Lender in order to protect its interests.

 

(m)
Notwithstanding anything in subsection (a) above to the contrary, Borrower shall be required to obtain and maintain coverage in
its property insurance Policy (or by a separate Policy), its business interruption/loss of rents coverage, and its liability insurance
policies against loss or damage by terrorist acts, both foreign and domestic, in an amount equal to 100% of the "Full Replacement
Cost" of the Property plus the rental loss and/or business interruption insurance required in clause (d) above; provided
that such coverage is available. In the event that such coverage with respect to terrorist acts is not included as part of the
 "all risk" property policy required by subsection (a) above, Borrower shall, nevertheless be required to obtain coverage
for terrorism (as standalone coverage) in an amount equal to 100% of the "Full Replacement Cost" of the Property plus
the rental loss and/or business interruption coverage under clause (d) above; provided that such coverage is available. Borrower
shall obtain the coverage required under this subsection G) from a carrier which otherwise satisfies the rating criteria specified
in Section 7.1.2 below (a "Qualified Carrier") or in the event that such coverage is not available from a Qualified
Carrier, Borrower shall obtain such coverage from the highest rated insurance company providing such coverage.

 

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7.1.2
Policies. All policies of insurance (the "Policies") required pursuant to Section 7.1.1 above shall (i) be issued
by companies approved by Lender and authorized to do business in the State, with a claims paying ability rating of the State,
with a claims "A2" or better by Moody's (to the extent Moody's rates the Securities and rates the applicable insurance
company), and a rating of "A:X" or better in the current Best's Insurance Reports, unless otherwise approved by Lender
in advance and in writing; (ii) name Lender and its successors and/or assigns as their interest may appear as the mortgagee/lender's
loss payable (in the case of property insurance and business interruption/loss of rents coverage) and an additional insured (in
the case of liability insurance); (iii) contain (in the case of property insurance) a NonContributory Standard Mortgagee Clause/Lender's
Loss Payable Endorsement, or their equivalents, naming Lender as the person to which all payments made by such insurance company
shall be paid; (iv) with respect to property (including business interruption/loss of rents), commercial general liability and
excess/umbrella liability policies, contain a waiver of subrogation in favor of Lender; (v) with respect to property policies
(including business interruption/loss of rents), contain such provisions as Lender deems reasonably necessary or desirable to
protect its interest, including (A) endorsements providing that neither Borrower, Lender nor any other party shall be a co-insurer
under the Policies, (B) that Lender shall receive C) at least thirty (30) days prior written notice of cancellation of any of
the Policies, except ten (10) days' notice for cancellation due to non-payment of premium, such notice shall also be provided
for Liability policies, when available; however, when not available for Liability policies, Borrower shall provide required notice
to Lender; (C) such policy shall not contain any provision that would make the Lender liable for any premiums and commissions,
provided that the policy need not waive the requirement that the premium be paid in order to effect continuation of coverage if
the policy will be cancelled due to non-payment of premium and (D) providing that Lender is permitted to make payments to effect
the continuation of such policy upon notice of cancellation due to non-payment of premiums; (vi) in the event any property insurance
policy shall contain breach of warranty provisions, such policy shall provide that with respect to the interest of Lender, such
insurance policy shall not be invalidated by and shall insure Lender regardless of (A) any act, failure to act or negligence of
or violation of warranties, declarations or conditions contained in such policy by any named insured, (B) the occupancy or use
of the premises for purposes more hazardous than permitted by the terms thereof, or (C) any foreclosure or other action or proceeding
taken by Lender pursuant to any provision of the Loan Documents; and (vii) be satisfactory in form and substance to Lender and
approved by Lender as to amounts, form, risk coverage, deductibles, loss payees and insureds and complete copies thereof delivered
to Lender. In the event of foreclosure or other transfer of title, Borrower agrees that all proceeds payable thereunder pertaining
to the Property shall thereupon vest in the purchaser at such foreclosure or in Lender or other transferee in the event of such
other transfer of title. Borrower shall pay the premiums for such Policies (the "Insurance Premiums") as the same become
due and payable and furnish to Lender evidence of the renewal of each of the Policies together with (unless such Insurance Premiums
have been paid by Lender pursuant to Section 3.3 hereof) receipts for or other evidence of the payment of the Insurance Premiums
reasonably satisfactory to Lender. If Borrower does not furnish such evidence and receipts at least thirty (30) days prior to
the expiration of any expiring Policy, then Lender may, but shall not be obligated to, procure such insurance and pay the Insurance
Premiums therefor, and Borrower shall reimburse Lender for the cost of such Insurance Premiums promptly on demand, with interest
accruing at the Default Rate. Borrower shall deliver to Lender a complete copy of each Policy within thirty (30) days after its
effective date. 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. Lender agrees that the Policies may be in the
form of a blanket policy provided that (i) such policy otherwise meets the requirements set forth herein this Section 7.1
and (ii) Lender shall be satisfied by evidence required by Lender that the blanket policy provides the same protection as would
a separate Policy insuring only the Property in accordance with the terms of this Agreement.

 

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7.2          Casualty.

 

7.2.1
Notice Restoration. If the Property is damaged or destroyed, in whole or in part, by fire or other casualty (a "Casualty"),
Borrower shall give prompt notice thereof to Lender. Following the occurrence of a Casualty, Borrower, regardless of whether insurance
proceeds are available, shall promptly proceed to restore, repair, replace or rebuild the Property in accordance with Legal Requirements
to be of at least equal value and of substantially the same character as prior to such damage or destruction.

 

7.2.2
Settlement of Proceeds. If a Casualty covered by any of the Policies (an "Insured Casualty") occurs where the
loss does not exceed $250,000, provided no Default or Event of Default has occurred and is continuing, Borrower may settle and
adjust any claim without the prior consent of Lender; provided such adjustment is carried out in a competent and timely manner,
and Borrower is hereby authorized to collect and receipt for the insurance proceeds (the "Proceeds"). In the event of
an Insured Casualty where the loss equals or exceeds $250,000 (a "Significant Casualty"), Lender may, in its sole discretion,
settle and adjust any claim without the consent of Borrower and agree with the insurer(s) on the amount to be paid on the loss,
and the Proceeds shall be due and payable solely to Lender and held by Lender in the Casualty/Condemnation Subaccount and disbursed
in accordance herewith. If Borrower or any party other than Lender is a payee on any check representing Proceeds with respect
to a Significant 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
such check payable to the order of Lender. The expenses incurred by Lender in the settlement, adjustment and collection of the
Proceeds shall become part of the Debt and shall be reimbursed by Borrower to Lender upon demand. Notwithstanding anything to
the contrary contained herein, if in connection with a Casualty any insurance carrier 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 carrier 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 will be received from the property insurance carriers are sufficient to pay 100% of the cost
of fully restoring the Improvements or, if such net Proceeds are to be applied to repay the Debt in accordance with the terms
hereof, that such remaining net Proceeds will be sufficient to pay the Debt in full.

 

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7.3
          Condemnation.

 

7.3.1
Notice; Restoration. Borrower shall promptly give Lender notice of the actual or threatened commencement of any condemnation
or eminent domain proceeding affecting the Property (a "Condemnation") and shall deliver to Lender copies of any and
all papers served in connection with such Condemnation. Following the occurrence of a Condemnation, Borrower, regardless of whether
an Award is available, shall promptly proceed to restore, repair, replace or rebuild the Property in accordance with Legal Requirements
to the extent practicable to be of at least equal value and of substantially the same character (and to have the same utility)
as prior to such Condemnation.

 

7.3.2
Collection of Award. Lender is hereby irrevocably appointed as Borrower's attorney-in-fact, coupled with an interest, with
exclusive power to collect, receive and retain any award or payment in respect of a Condemnation (an "Award") and to
make any compromise, adjustment or settlement in connection with such Condemnation. Notwithstanding any Condemnation (or any transfer
made in lieu of or in anticipation of such Condemnation), Borrower shall continue to pay the Debt at the time and in the manner
provided for in the Loan Documents, and the Debt shall not be reduced unless and until any Award shall have been actually received
and applied by Lender to expenses of collecting the Award and to 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 Interest Rate.
If the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of such Award, Lender shall have the
right, whether or not a deficiency judgment on the Note shall be recoverable or shall have been sought, recovered or denied, to
receive all or a portion of the Award sufficient to pay the Debt. Borrower shall cause any Award that is payable to Borrower to
be paid directly to Lender. Lender shall hold such Award in the Casualty/Condemnation Subaccount and disburse such Award in accordance
with the terms hereof.

 

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7.4
         Application of Proceeds or Award.

 

7.4.1
Application to Restoration. If an Insured Casualty or Condemnation occurs where (i) the loss is in an aggregate amount
less than fifteen percent (15%) of the unpaid Principal; (ii) in the reasonable judgment of Lender, the Property can be restored
within six (6) months, and prior to six (6) months before the Stated Maturity Date and prior to the expiration of the rental or
business interruption insurance with respect thereto, to the Property's pre-existing condition and utility as existed immediately
prior to such Insured Casualty or Condemnation and to an economic unit not less valuable and not less useful than the same was
immediately prior to the Insured Casualty or Condemnation, and after such restoration will adequately secure the Debt; (iii) less
than (x) thirty percent (30%), in the case of an Insured Casualty or (y) fifteen percent (15%), in the case of a Condemnation,
of the rentable area of the Improvements has been O damaged, destroyed or rendered unusable as a result of such Insured Casualty
or Condemnation; (iv) Leases demising in the aggregate at least sixty-five percent (65%) of the total rentable space in the Property
and in effect as of the date of the occurrence of such Insured Casualty or Condemnation remain in full force and effect during
and after the completion of the Restoration (hereinafter defined); and (v) no Default or Event of Default shall have occurred
and be then continuing, then the Proceeds or the Award, as the case may be (after reimbursement of any expenses incurred by Lender),
shall be applied to reimburse Borrower for the cost of restoring, repairing, replacing or rebuilding the Property (the "Restoration"),
in the manner set forth herein. Borrower shall commence and diligently prosecute such Restoration. Notwithstanding the foregoing,
in no event shall Lender be obligated to apply the Proceeds or Award to reimburse Borrower for the cost of Restoration unless,
in addition to satisfaction of the foregoing conditions, both (x) Borrower shall pay (and if required by Lender, Borrower shall
deposit with Lender in advance) all costs of such Restoration in excess of the net amount of the Proceeds or the Award made available
pursuant to the terms hereof; and (y) Lender shall have received evidence reasonably satisfactory to it that during the period
of the Restoration, the Rents will be at least equal to the sum of the operating expenses and Debt Service and other reserve payments
required hereunder, as reasonably determined by Lender.

 

7.4.2
Application to Debt.

 

(a)       Except
as provided in Section 7.4. I above, any Proceeds and/or Award may, at the option of Lender in its discretion, be applied
to the payment of (i) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the
Note C and/or any of the other Loan Documents, or applied to reimburse Borrower for the cost of any Restoration, in the manner
set forth in Section 7.4.3 below. Any prepayment of the Loan made pursuant to this Section 7.4.2 shall be without
any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time the Proceeds are received
from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrower
shall pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may be required with respect to
the amount of the Proceeds or Award applied to the unpaid Principal.

 

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(b)       (Notwithstanding
the foregoing provisions of this Section 7.4, if the Loan is included in a REMIC Trust and, immediately following a release
of any portion of the Lien of the Mortgage following a Casualty or Condemnation (but taking into account any proposed Restoration
of the remaining Property), the ratio of the unpaid principal balance of the Loan to the value of the remaining 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; and which shall exclude the value of personal property or going concern value, if any), the principal balance of the Loan
must be paid down by an amount equal to the least of the following amounts: (i) the net Award (after payment of Lender's costs
and expenses and any other fees and expenses that have been approved by Lender), (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, unless Lender receives an opinion of counsel that if such amount is not paid, the applicable Securitization
will not fail to maintain its status as a REM[C Trust as a result of the related release of such portion of the Lien of the Mortgage.
If and to the extent the preceding sentence applies, only such amount of the net Award, if any, in excess of the amount required
to pay down the principal balance of the Loan may be released for purposes of Restoration or released to Borrower as otherwise
expressly provided in this Section 7.4. Additionally, throughout the term of the Loan if an Event of Default is continuing,
then Borrower shall pay to Lender, with respect to any payment of the Debt pursuant to this Section 7.4.2(b), an additional
amount equal to the Yield Maintenance Premium; provided, however, that if an Event of Default is not continuing, then the Yield
Maintenance Premium shall not be payable.

 

7.4.3
Procedure for Application to Restoration. If Borrower is entitled to reimbursement out of the Proceeds or an Award held
by Lender, such Proceeds or Award shall be disbursed from time to time from the Casualty/Condemnation Subaccount upon Lender being
furnished with (i) evidence satisfactory to Lender of the estimated cost of completion of the Restoration, (ii) a fixed price
or guaranteed maximum cost construction contract for Restoration satisfactory to Lender, (iii) prior to the commencement of Restoration,
all immediately available funds in addition to the Proceeds or Award that in Lender's judgment are required to complete the proposed
Restoration, (iv) such architect's certificates, waivers of lien, contractor's sworn statements, title insurance endorsements,
bonds, plats of survey, permits, approvals, licenses and such other documents and items as Lender may reasonably require and approve
in Lender's discretion, and (v) all plans and specifications for such Restoration, such plans and specifications to be approved
by Lender prior to commencement of any work. Lender may, at Borrower's expense, retain a consultant to review and approve all
requests for disbursements, which approval shall also be a condition precedent to any disbursement. No payment made prior to the
O final completion of the Restoration shall exceed ninety percent (90%) of the value of the work performed from time to time;
funds other than the Proceeds or Award shall be disbursed prior to disbursement of such Proceeds or Award; and at all times, the
undisbursed balance of such Proceeds or Award remaining in the hands of Lender, together with funds deposited for that purpose
or irrevocably committed to the satisfaction of Lender by or on behalf of Borrower for that purpose, shall be at least sufficient
in the reasonable judgment of Lender to pay for the cost of completion of the Restoration, free and clear of all Liens or claims
for Lien. Provided no Default or Event of Default then exists, any surplus that remains out of the Proceeds held by Lender after
payment of such costs of Restoration shall be paid to Borrower. Any surplus that remains out of the Award received by Lender after
payment of such costs of Restoration shall, in the discretion of Lender, be retained by Lender and applied to payment of the Debt
or returned to Borrower.

 

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		8.	DEFAULTS

 

8.1
           Events of Default. An "Event of Default" shall exist with respect to the Loan if any of the following shall occur:

 

(a)       any
portion of the Debt is not paid when due or Borrower shall fail to pay when due any payment required under Sections 3.3, 3.4,
3.5, 3.6, 3.7 or 3.9 hereof;

 

(b)       any
of the Taxes are not paid when due (unless Lender is paying such Taxes pursuant to Section 3.3 hereof), subject to Borrower's
right to contest Taxes in accordance with Section 5.2 hereof;

 

(c)       the
Policies are not kept in full force and effect, or are not delivered to Lender upon request;

 

(d)       a
Transfer other than a Permitted Transfer occurs;

 

(e)       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 by Borrower or Guarantor in connection with
any Loan Document, shall be false or misleading in any material respect as of the date the representation or warranty was made;

 

(f)       Borrower,
Sole Member or Guarantor shall make an assignment for the benefit of creditors, or shall generally not be paying its debts as
they become due;

 

(g)       a
receiver, liquidator or trustee shall be appointed for Borrower, Sole Member or Guarantor; or Borrower, Sole Member or Guarantor
shall be adjudicated a bankrupt or insolvent; or 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,
Sole Member or Guarantor, as the case may be; or any proceeding for the dissolution or liquidation of Borrower, Sole Member or
Guarantor shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and
not consented to by Borrower, Sole Member or Guarantor, as the case may be, only upon the same not being discharged, stayed or
dismissed within sixty (60) days;

 

(h)       Borrower
breaches any covenant contained in Sections 5.12.1 (a) (f), 5.13, 5.15, 5.22, 5.25, 5.27 or 5.28 hereof;

 

(i)
except as expressly permitted hereunder, the actual or threatened alteration, improvement, demolition or removal of all or any
portion of the Improvements without the prior written consent of Lender;

 

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(j)
an Event of Default as defined or described elsewhere in this Agreement or in any other Loan Document occurs; or any other event
shall occur or condition shall exist, if the effect of such event or condition is to accelerate or to permit Lender to accelerate
the maturity of any portion of the Debt;

 

(k)
a default occurs under any term, covenant or provision set forth herein or in any other Loan Document which specifically contains
a notice requirement or grace period and such notice has been given and such grace period has expired;

 

(l)
[INTENTIONALLY DELETED;] or

 

(m)
a default shall be continuing under any of the other terms, covenants or conditions of this Agreement or any other Loan Document
not otherwise specified in this Section 8.1, for ten (10) days after notice to Borrower (and Guarantor, if applicable) from Lender,
in the case of any default which can be cured by the payment of a sum of money, or for thirty (30) days after notice from Lender
in the case of any other default; provided, however, that if such non-monetary default is susceptible of cure but cannot reasonably
be cured within such thirty (30)-day period, and Borrower (or Guarantor, if applicable) shall have commenced to cure such default
within such thirty (30)-day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30)-day
period shall be extended for an additional period of time as is reasonably necessary for Borrower (or Guarantor, if applicable)
in the exercise of due diligence to cure such default, such additional period not to exceed sixty (60) days.

 

8.2
           Remedies.

 

8.2.1
Acceleration. Upon the occurrence of an Event of Default (other than an Event of Default described in paragraph (D or (g)
of Section 8.1 above) and at any time and from time to time thereafter, in addition to any other rights or remedies available
to it pursuant to the Loan Documents or at law or in equity, Lender may take such action, without notice or demand (and Borrower
hereby expressly waives any such notice or demand), that Lender deems advisable to protect and enforce its rights against Borrower
and in and to the Property; including declaring the Debt to be immediately due and payable (including unpaid interest, Default
Rate interest, Late Payment Charges, Yield Maintenance Premium and any other amounts owing by Borrower), without notice or demand;
and upon any Event of Default described in paragraph (f) or (g) of Section 8.1 above, the Debt (including unpaid interest,
Default Rate interest, Late Payment Charges, Yield Maintenance Premium and any other amounts owing by Borrower) shall immediately
and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand,
anything contained in any Loan Document to the contrary notwithstanding.

 

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8.2.2
Remedies Cumulative. 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 the Loan Documents 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 Debt shall be declared, or be automatically, 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. 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 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 in the Loan Documents. Without limiting the generality of the foregoing, Borrower agrees
that if an Event of Default is continuing, (i) to the extent permitted by applicable law, Lender is not 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, the Mortgage
has been foreclosed, the Property has been sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has been
paid in full. To the extent permitted by applicable law, nothing contained in any Loan Document shall be construed as requiring
Lender to resort to any portion of the Property for the satisfaction of any of the Debt in preference or priority to any other
portion, and Lender may seek satisfaction out of the entire Property or any part thereof, in its discretion.

 

8.2.3
Severance. (a) During the continuance of an Event of Default, 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
of the Loan, 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.

 

(b)
During the continuance of an Event of Default, 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 in such denominations and priorities of payment
and liens 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
such severance, Borrower ratifying all that such attorney shall do by virtue thereof.

 

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8.2.4
No delay or omission to exercise any remedy, right or power accruing upon an Event of Default, or the granting of any indulgence
or compromise by Lender shall impair any such remedy, right or power hereunder or 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 shall not be construed to be a waiver of any subsequent Default or Event of Default or to impair any remedy,
right or power consequent thereon. Notwithstanding any other provision of this Agreement, Lender reserves the right to seek a
deficiency judgment or preserve a deficiency claim in connection with the foreclosure of the Mortgage to the extent necessary
to foreclose on all or any portion of the Property, the Rents, the Cash Management Accounts or any other collateral.

 

8.2.5
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 performance of, such covenant or obligation, and
all costs, expenses, liabilities, penalties and O 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 Debt ( and to the extent permitted under applicable laws,
secured by the Mortgage and 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.

 

		9.	SECONDARY MARKET PROVISIONS

 

9.1
           Sale of Note and Secondary Market Transaction.

 

9.1.1
General: Borrower Cooperation. Lender shall have the right at any time and from time to time (i) to sell or otherwise transfer
the Loan or any portion thereof or the Loan Documents or any interest therein to one or more investors, (ii) to sell participation
interests in the Loan to one or more investors or (iii) to securitize the Loan or any portion thereof in a single asset securitization
or a pooled loan securitization of rated single or multi-class securities (the "Securities") secured by or evidencing
ownership interests in the Note and the Mortgage (each such sale, assignment, participation and/or securitization is referred
to herein as a "Secondary Market Transaction ", and the transactions referred to in clause (iii) shall be referred to
herein as a "Securitization"). In connection with any Secondary Market Transaction, Borrower shall, at Borrower's reasonable
expense, use all reasonable efforts and cooperate fully and in good faith with Lender and otherwise assist Lender in satisfying
the market standards to which Lender customarily adheres or which may be reasonably required in the marketplace or by the Rating
Agencies in connection with any such Secondary Market Transactions, including: (a) to (i) provide such financial and other information
with respect to the Property, Borrower and its C Affiliates, Manager and any tenants of the Property, (ii) provide business plans
and budgets relating to the Property and (iii) perform or permit or cause to be performed or permitted such site inspection, appraisals,
surveys, market studies, environmental reviews and reports, engineering reports and other due diligence investigations of the
Property, as may be reasonably requested from time to time by Lender or, if applicable, the Rating Agencies or as may be necessary
or appropriate in connection with a Secondary Market Transaction or Exchange Act requirements (the items provided to Lender pursuant
to this paragraph (a) being called the "Provided Information"), together, if customary, with appropriate verification
of and/or consents to the Provided Information through letters of auditors or opinions of counsel of independent attorneys acceptable
to Lender and, if applicable, the Rating Agencies; (b) at Borrower's expense, cause counsel to render opinions as to any opinion
customary in securitization transactions with respect to the Property, Borrower and its Affiliates, which counsel and opinions
shall be reasonably satisfactory to Lender and, if applicable, the Rating Agencies; (c) make such representations and warranties
as of the date hereof of any Secondary Market Transaction with respect to the Property, Borrower and the Loan Documents as are
customarily provided in such transactions and as may be reasonably requested by Lender or, if applicable, the Rating Agencies
and consistent with the facts covered by such representations and warranties as they exist on the date thereof, including the
representations and warranties made in the Loan Documents; (d) provide current certificates of good standing and qualification
with respect to Borrower and Sole Member from appropriate Governmental Authorities; and (e) execute such amendments to the Loan
Documents and Borrower's organizational documents, as may be requested by Lender or, if applicable, the Rating Agencies or otherwise
to effect a Secondary Market Transaction, provided that nothing contained in this subsection (e) shall result in a material economic
change in the transaction. Borrower shall pay all reasonable third party costs and expenses incurred by Lender in connection with
a Secondary Market Transaction. Borrower's cooperation obligations set forth herein shall continue until the Loan has been paid
in full.

 

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9.1.2
Use of Information. Borrower understands that all or any portion of the Provided Information and the Required Records may
be included in disclosure documents in connection with a Secondary Market Transaction, including a prospectus or private placement
memorandum (each, a "Disclosure Document") and may also be included in filings with the Securities and Exchange Commission
pursuant to the Securities Act of 1 933, as amended (the "Securities Act"), or the Securities and Exchange Act of 1
934, as amended (the "Exchange Act"), or provided or made available to investors or prospective investors in the Securities,
the Rating Agencies, and service providers or other parties relating to the Secondary Market Transaction. If the Disclosure Document
is required to be revised, Borrower shall cooperate with Lender in updating the Provided Information or Required Records for inclusion
or summary in the Disclosure Document or for other use reasonably required in connection with a Secondary Market Transaction by
providing all current information pertaining to Borrower, Manager and the Property necessary to keep the Disclosure Document accurate
and complete in all material respects with respect to such matters.

 

9.1.3
Borrower Obligations Regarding Disclosure Documents. In connection with a Disclosure Document, Borrower shall: (a) if requested
by Lender, certify in writing that Borrower has carefully examined those portions of such Disclosure Document, O pertaining to
Borrower, the Property, Manager and the Loan, and that such portions do 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 the light of the circumstances under which they
were made, not misleading; and (b) indemnify (in a separate instrument of indemnity, if so requested by Lender) (i) any underwriter,
syndicate member or placement agent (collectively, the "Underwriters") retained by Lender or its issuing company affiliate
(the "Issuer") in connection with a Secondary Market Transaction, (ii) Lender and (iii) the Issuer that is named in
the Disclosure Document or registration statement relating to a Secondary Market Transaction (the "Registration Statement"),
and each of the Issuer's directors, each of its officers who have signed the Registration Statement and each person or entity
who controls the Issuer or the Lender within the meaning of Section 15 of the Securities Act or Section 30 of the Exchange Act
(collectively within (iii), the "Lender Group"), and each of its directors and each person who controls each of the
Underwriters, within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act (collectively, the "Underwriter
Group") for any losses, claims, damages or liabilities (the "Liabilities") to which Lender, the Lender Group or
the Underwriter Group may become subject (including reimbursing all of them for any legal or other expenses actually incurred
in connection with investigating or defending the Liabilities) insofar as the Liabilities arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in any of the Provided Information or in any of the applicable
portions of such sections of the Disclosure Document applicable to Borrower, Manager, the Property or the Loan, or arise out of
or are based upon the omission or alleged omission to state therein a material fact required to be stated in the applicable portions
of such sections or necessary in order to make the statements in the applicable portions of such sections in light of the circumstances
under which they were made, not misleading; provided, however, that Borrower shall not be required to indemnify Lender for any
Liabilities relating to untrue statements or omissions which Borrower identified to Lender in writing at the time of Borrower's
examination of such Disclosure Document.

 

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9.1.4
Borrower Indemnity Regarding Filings. In connection with filings under the Exchange Act, Borrower shall (i) indemnify Lender,
the Lender Group and the Underwriter Group for any 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 the omission or alleged omission to state in the Provided
Information a material fact required to be stated in the Provided Information in order to make the statements in the Provided
Information, in light of the circumstances under which they were made not misleading and (ii) reimburse Lender, the Lender Group
or the Underwriter Group for any legal or other expenses actually incurred by Lender, Lender Group or the Underwriter Group in
connection with defending or investigating the Liabilities.

 

9.1.5
Indemnification Procedure. Promptly after receipt by an indemnified party under Section 9.1.3 above or Section 9.1.4 above
of notice of the commencement of any action for which a claim for indemnification is to be made against Borrower, such indemnified
party shall notify Borrower in writing of such commencement, but the omission to so notify Borrower will not relieve Borrower
from any liability that it may have to any indemnified party hereunder except to the extent that failure to notify causes prejudice
to Borrower. If any action is brought against any indemnified party, and it notifies Borrower of the commencement thereof, C Borrower
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 of commencement, to assume
the defense thereof with counsel satisfactory to such indemnified party in its discretion. After notice from Borrower to such
indemnified party under this Section 9.1.5, Borrower shall not be responsible 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 Borrower and an indemnified party, and any 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 Borrower, then 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 or parties.
Borrower shall not be liable for the expenses of more than one separate counsel unless there are legal defenses available to it
that are different from or additional to those available to another indemnified party. Without the prior written consent of Lender
(which consent shall not be unreasonably withheld or delayed), Borrower shall not settle or compromise or consent to the entry
of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought
hereunder (whether or not Borrower is an actual or potential party to such claim, action, suit or proceeding) unless Borrower
shall have given Lender reasonable prior written notice thereof and shall have obtained an unconditional release of each indemnified
party hereunder from all liability arising out of such claim, action, suit or proceedings.

 

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9.1.6
Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnity agreement
provided for in Section 9.1.3 above or Section 9.1.4 above is for any reason held to be unenforceable by an indemnified
party in respect of any Liabilities (or action in respect thereof) referred to therein which would otherwise be indemnifiable
under Section 9. I .3 above or Section 9. I .4 above, Borrower 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 I I(f) of the Securities Act) shall be entitled to contribution
from any Person 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) the Lender Group'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 may not be equitable if the amount of such contribution were determined by pro rata or per capita allocation.

 

9.2           Severance
of Loan. 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, in connection with, or after any Secondary Market Transaction), with respect to all
or any portion of the Loan, to modify, split and/or sever all or any portion of the Loan as hereinafter provided. Without limiting
the foregoing, Lender may (i) cause the Note and the Mortgage to be split into a first and second mortgage loan, (ii) create one
or more senior and subordinate notes C (i.e., an A/B or A/B/C structure), (iii) create multiple components of the Note (and allocate
or reallocate the principal balance of the Loan among such components), (iv) otherwise sever the Loan into two (2) or more loans
secured by mortgages and by a pledge of partnership or membership interests (directly or indirectly) in Borrower (i.e., a senior
loan/mezzanine loan structure), in each such case described in clauses (i) through (iv) above, in whatever proportion and whatever
priority Lender determines, and (v) modify the Loan Documents with respect to the newly created notes or components of the Note
such that the pricing and marketability of the Securities and the size of each class of Securities and the rating assigned to
each such class by the Rating Agencies shall provide the most favorable rating levels and achieve the optimum rating levels for
the Loan. Notwithstanding the foregoing, no such amendment described above shall (i) modify or amend any material economic term
of the Loan, or (ii) materially increase the obligations, or decrease the rights, of Borrower under the Loan Documents; provided,
however, in each such instance the outstanding principal balance of all the notes evidencing the Loan (or components of such notes)
immediately after the effective date of such modification equals the outstanding principal balance of the Loan immediately prior
to such modification and the weighted average of the interest rates for all such note(s) (or components thereof) immediately after
the effective date of such modification equals the Interest Rate immediately prior to such modification. If requested by Lender,
Borrower (and Borrower's constituent members, if applicable, and Guarantor) shall execute within two (2) Business Days after such
request, such documentation as Lender may reasonably request to evidence and/or effectuate any such modification or severance.
At Lender's election, each note comprising the Loan may be subject to one or more Securitizations.

 

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		10.	MISCELLANEOUS

 

10.1         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 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 and rights under the Loan Documents,
or in the Property, the Rents 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 Rents and in any other collateral given to Lender, and Lender 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 any Loan Document. The provisions of this Section 10.1 shall not, however, (i) constitute a
waiver, release or impairment of any obligation evidenced or secured by any Loan Document; (ii) impair the right of Lender to
name Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage; (iii) 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; (iv) impair the right of Lender to obtain the appointment of a receiver; (v) impair the enforcement of the
Assignment of Leases and Rents; (vi) constitute a prohibition against Lender to commence any other appropriate action or proceeding
in order for Lender to fully realize the security granted by the Mortgage or to exercise its remedies against the Property; or
(vii) constitute a waiver of the right of Lender to enforce the liability and C 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 "):

 

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(a)       fraud,
willful misconduct, misrepresentation or failure to disclose a material fact by or on behalf of Borrower, Guarantor or any Affiliate
of Borrower or Guarantor, or any of their respective agents or representatives in connection with the Loan, including by reason
of any claim under the Racketeer Influenced and Corrupt Organizations Act (RICO);

 

(b)       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;

 

(c)       material
physical waste of the Property or any portion thereof, or after an Event of Default the removal or disposal of any portion of
the Property;

 

(d)       any
Proceeds paid by reason of any Insured Casualty or any Award received in connection with a Condemnation or other sums or payments
attributable to the Property not applied in accordance with the provisions of the Loan Documents (except to the extent that Borrower
did not have the legal right, because of a bankruptcy, receivership or similar judicial proceeding, to direct disbursement of
such sums or payments);

 

(e)       all
Rents of the Property received or collected by or on behalf of Borrower after an Event of Default and not applied to payment of
Principal and interest due under the Note, and to the payment of actual and reasonable operating expenses of the Property, as
they become due or payable (except to the extent that such application of such funds is prevented by bankruptcy, receivership,
or similar judicial proceeding in which Borrower is legally prevented from directing the disbursement of such sums);

 

(f)       misappropriation
or conversion by or on behalf of Borrower (including failure to turn over to Lender on demand following an Event of Default) of
any gross revenues (including Rents, advance deposits, any other deposits, rents collected in advance, funds held by Borrower
for the benefit of another party and Lease Termination Payments);

 

(g)       the
failure to pay Taxes, provided Borrower shall not be liable to the extent funds to pay such amounts are available in the Tax and
Insurance Subaccount and Lender failed to pay same;

 

(h)       the
breach of any representation, warranty, covenant or indemnification in any Loan Document concerning Environmental Laws or Hazardous
Substances, including Section 4.21 hereof and Section 5.8 hereof, and clauses (viii) through (xi) of Section
5.30 hereof;

 

(i)
        the failure to pay charges for labor or materials or other charges that can create Liens on any portion of the Property;

 

(j)
        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;

 

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(k)
        the failure to obtain and maintain the fully paid for Policies in accordance with Section 7.1.1 hereof;

 

(l)
        Borrower's indemnification of Lender set forth in Section 9.1 hereof; and/or

 

(m)
      any cost or expense incurred by Lender in connection with the enforcement of its rights and remedies hereunder or any other Loan
Document.

 

Notwithstanding
anything to the contrary in this Agreement or any of the Loan Documents, (A) Lender shall not be deemed to have waived any right
which Lender may have under Section 506(a), 506(b), I I I I (b) or any other provisions of the U.S. Bankruptcy Code to file a
claim for the full amount of the Debt or to require that all collateral shall continue to secure all of the Debt in accordance
with the Loan Documents, and (B) Lender's agreement not to pursue personal liability of Borrower as set forth above SHALL BECOME
NULL AND VOID and shall be of no further force and effect, and the Debt shall be fully recourse to Borrower in the event that
one or more of the following occurs (each, a "Springing Recourse Event"):

 

(i)
        an Event of Default described in Section 8. I (d) hereof shall have occurred;

 

(ii)
        a breach of any of the representations set forth in the "Recycled SPE Certificate" delivered to Lender in connection
with the Loan or a breach of the representation set forth in Section 4. I (b) hereof or a breach of the covenants set forth
in Section 5.13 hereof;

 

(iii)       Borrower
files a voluntary petition under the Bankruptcy Code or files a petition for bankruptcy, reorganization or similar proceeding
pursuant to any other Federal or state bankruptcy, insolvency or similar law;

 

(iv)       Borrower
is substantively consolidated with any other Person; unless such consolidation was involuntary and not consented to by Borrower,
or Guarantor and is discharged, stayed or dismissed within thirty (30) days following the occurrence of such consolidation;

 

(v)       the
filing of an involuntary petition against Borrower under the Bankruptcy Code or an involuntary petition for bankruptcy, reorganization
or similar proceeding pursuant to any other Federal or state bankruptcy, insolvency or similar law by any other Person in which
(x) Borrower or any Affiliate, officer, director or representative which, directly or indirectly, Controls Borrower colludes with
or otherwise assists such Person, and/or (y) Borrower or any Affiliate, officer, director or representative which, directly or
indirectly, Controls Borrower solicits or causes to be solicited petitioning creditors for any involuntary petition against Borrower
by any Person;

 

(vi)       Borrower
or any Affiliate, officer, director or representative which, directly or indirectly, Controls Borrower 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;

 

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(vii)       Borrower
or any Affiliate, officer, director or representative which, directly or indirectly, Controls Borrower consents to, or acquiesces
in, or joins in, an application for the appointment of a custodian, receiver, liquidator, trustee or examiner for Borrower or
any portion of the Property;

 

(viii)       Borrower
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; and/or

 

(ix)       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 Note, the Mortgage or any other Loan Document,
seeks a defense, judicial intervention or injunctive or other equitable relief of any kind or asserts 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.

 

10.2
         Brokers and Financial Advisors. (a) Borrower hereby represents that it has dealt with no financial advisors, brokers, underwriters,
placement agents, agents or finders in connection with the Loan other than PHILLIPS REALTY CAPITAL ("Broker") whose
fees shall be paid by Borrower pursuant to a separate agreement. Borrower shall indemnify and hold Lender harmless from and against
any and all claims, liabilities, costs and expenses (including attorneys' fees, whether incurred in connection with enforcing
this indemnity or defending claims of third parties) of any kind in any way relating to or arising from a claim by any Person
(including Broker) that such Person acted on behalf of Borrower in connection with the transactions contemplated herein. The provisions
of this Section 10.2 shall survive the expiration and termination of this Agreement and the repayment of the Debt.

 

(b)
Notwithstanding anything in Section 10.2(a) above to the contrary, Borrower hereby acknowledges that (i) at Lender's sole discretion,
Broker may receive further consideration from Lender relating to the Loan or any other matter for which Lender may elect to compensate
Broker pursuant to a separate agreement between Lender and Broker and (ii) Lender shall have no obligation to disclose to Borrower
the existence of any such agreement or the amount of any such additional consideration paid or to be paid to Broker whether in
connection with the Loan or otherwise.

 

10.3        
Retention of Servicer.

 

(a)       At
the option of Lender, the Loan may be serviced by the Servicer 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 the Servicer. Borrower shall not be responsible for any set-up fees or any other initial costs relating to
or arising under the Servicing Agreement.

 

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(b)       Borrower
shall pay any fees and expenses of the Servicer and any customary third-party fees and expenses in connection with a prepayment,
release of the Property, approvals under the Loan Documents requested by Borrower, defeasance, assumption of Borrower's obligations
or modification of the Loan, as well as any fees and expenses in connection with the special servicing or work-out of the Loan
or enforcement of the Loan Documents, including, special servicing fees, operating or trust advisor fees (if the Loan is a specially
serviced loan or in connection with a workout), work-out fees, liquidation fees, attorneys' fees and expenses and other fees and
expenses in connection with the modification or restructuring of the Loan.

 

10.4
          Survival. 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 any of the Debt is unpaid or such longer period if expressly set forth
in this Agreement. 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 of Borrower's covenants and agreements in this Agreement
shall inure to the benefit of the respective legal representatives, successors and assigns of Lender.

 

10.5
         Lender's Discretion; Rating Agency Review Waiver.

 

(a)
Whenever pursuant to this Agreement or any other Loan Document, Lender exercises any right given to it to approve or disapprove,
or consent or withhold consent, or any arrangement or term is to be satisfactory to Lender or is to be in Lender's discretion,
the decision of Lender to approve or disapprove, to consent or withhold consent, or to decide whether arrangements or terms are
satisfactory or not satisfactory, or acceptable or unacceptable or in Lender's discretion shall (except as is otherwise specifically
herein provided) be in the sole and absolute discretion of Lender and shall be final and conclusive. Additionally, whenever in
this Agreement or any other Loan Document, Lender exercises any right given to it to approve or disapprove, or consent or withhold
consent, or any arrangement or term is to be satisfactory to Lender in Lender's reasonable discretion, or Lender agrees to not
withhold, condition or delay its consent, the decision of Lender to approve or disapprove, to consent, condition, delay or withhold
consent, or to decide whether arrangements or terms are satisfactory or not satisfactory, or acceptable or unacceptable or in
Lender's discretion shall (except as is otherwise specifically herein provided) be in the sole and absolute discretion of Lender
while an Event of Default is continuing unless otherwise specifically herein provided.

 

(b)
Whenever, pursuant to this Agreement or any other Loan Documents, a Rating Comfort Letter is required from each applicable Rating
Agency, in the event that any applicable Rating Agency "declines review", "waives review" or otherwise indicates
in writing or otherwise to Lender's or Servicer's satisfaction that no Rating Comfort Letter will or needs to be issued with respect
to the matter in question (each, a "Review Waiver"), then the Rating Comfort Letter requirement with respect to such
Rating Agency shall C be deemed to be satisfied with respect to such matter. It is expressly agreed and understood, however, that
receipt of a Review Waiver (i) from any one Rating Agency shall not be binding or apply with respect to any other Rating Agency
and (ii) with respect to one matter shall not apply or be deemed to apply to any subsequent matter for which Rating Comfort Letter
is required.

 

(c)
Prior to a Securitization or in the event that there is a Review Waiver, if Lender does not have a separate and independent approval
right with respect to the matter in question, then the term Rating Agency Confirmation shall be deemed instead to require the
prior written consent of Lender.

 

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10.6
         Governing Law.

 

(a)
THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW
YORK, AND THE PROCEEDS OF THE NOTE DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE
PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL
RESPECTS, INCLUDING MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF
AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS CREATED PURSUANT
TO THE LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED ACCORDING TO, THE LAW OF THE STATE, COMMONWEALTH OR DISTRICT, AS
APPLICABLE, IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH
STATE, COMMONWEALTH OR DISTRICT, AS APPLICABLE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND
ENFORCEABILITY OF ALL LOAN DOCUMENTS AND THE DEBT. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY
AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND
THIS AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT
TO 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

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(b)
ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE INSTITUTED
IN ANY FEDERAL OR STATE COURT IN NEW YORK COUNTY, NEW YORK AND BORROWER WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE
TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF
ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT RICHARD YELLEN, RICHARD L. YELLEN
 & ASSOCIATES, LLP, Ill BROADWAY, 1 1TH FLOOR, NEW YORK, NEW YORK 10006, AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE
ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE
COURT IN NEW YORK, NEW YORK, AND BORROWER AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF
SAID SERVICE OF BORROWER MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
SERVICE OF PROCESS UPON BORROWER (UNLESS LOCAL LAW REQUIRES ANOTHER METHOD OF SERVICE), IN ANY SUCH SUIT, ACTION OR PROCEEDING
IN THE STATE OF NEW YORK. BORROWER (i) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER,
(ii) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH
SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (iii) SHALL PROMPTLY DESIGNATE
SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.
NOTWITHSTANDING THE FOREGOING, LENDER SHALL HAVE THE RIGHT TO INSTITUTE ANY LEGAL SUIT, ACTION OR PROCEEDING FOR THE ENFORCEMENT
OR FORECLOSURE OF ANY LIEN ON ANY COLLATERAL FOR THE LOAN IN ANY FEDERAL OR STATE COURT IN ANY JURISDICTION(S) THAT LENDER MAY
ELECT IN ITS SOLE AND ABSOLUTE DISCRETION, AND BORROWER WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT
IN ANY SUIT, ACTION OR PROCEEDING.

 

10.7        
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. 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 any 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 the Loan Documents, or to declare an Event
of 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.

 

    	 	86	 

     

    

 

10.8
        BORROWER AND LENDER HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE 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. EITHER PARTY IS HEREBY AUTHORIZED To FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE
EVIDENCE OF THIS WAIVER BY THE OTHER.

 

10.9

        Headings/Schedules. 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. The Schedules attached
hereto, are hereby incorporated by reference as a part of this Agreement with the same force and effect as if set forth in the
body hereof.

 

10.10

        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.

 

10.11

        Preferences. Upon the occurrence and continuance of an Event of Default, 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 Debt. To the extent Borrower makes
a payment to Lender, or Lender receives proceeds of any collateral, which is in whole or part 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 Debt 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. This provision shall survive the expiration or termination of this Agreement and the repayment of
the Debt.

 

10.12

        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 any other Loan Document specifically and expressly requires 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 no Loan Document specifically and expressly requires the giving of notice by Lender to Borrower.

 

    	 	87	 

     

    

 

10.13

        Remedies of Borrower. If a claim or adjudication is made that Lender or any of its agents, including Servicer, has acted
unreasonably or unreasonably delayed acting in any case where by law or under any Loan Document, Lender or any such agent, as
the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents, including
Servicer, shall be liable for any monetary damages, and Borrower's sole remedy shall be to commence 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. Borrower specifically waives any claim against Lender and its agents, including Servicer,
with respect to actions taken by Lender or its agents on Borrower's behalf.

 

10.14

       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, understandings and negotiations among
or between such parties, whether oral or written, are superseded by the terms of this Agreement and the other Loan Documents.

 

10.15

        Offsets Counterclaims and Defenses. 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, including Servicer, or otherwise offset
any obligations to make payments required under the Loan Documents. Any assignee of Lender's interest in and to the Loan Documents
shall take the same free and clear of all offsets, counterclaims or defenses which Borrower may otherwise have against any assignor
of such documents, and no such offset, 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 offset, counterclaim or defense
in any such action or proceeding is hereby expressly waived by Borrower.

 

10.16

       Publicity. 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, the Loan, Lender or any member of the Lender Group, a Loan purchaser,
the Servicer or the trustee in a Secondary Market Transaction, shall be subject to the prior written approval of Lender. Lender
shall have the right to issue any of the foregoing without Borrower's approval.

 

10.17

       Borrower and Lender intend at all times to comply with applicable state law or applicable United States federal law (to the extent
that it permits Lender to contract for, charge, take, reserve or receive a greater amount of interest than under state law) and
that this Section 10.17 shall control every other agreement in the Loan Documents. If the applicable law (state or federal) is
ever judicially interpreted so as to render usurious any amount called for under the Note or any other Loan Document, or contracted
for, charged, taken, reserved or received with respect to the Debt, or if Lender's exercise of the option to accelerate the maturity
of the Loan or any prepayment by Borrower results in Borrower having paid any interest in excess of that permitted by applicable
law, then it is Borrower's and Lender's express intent that all excess amounts theretofore collected by Lender shall be credited
against the unpaid Principal and all other Debt (or, if the Debt has been or would thereby be paid in full, refunded to Borrower),
and the provisions of the Loan Documents immediately be deemed reformed and the amounts thereafter collectible thereunder reduced,
without the necessity of the execution of any new document, so as to comply with applicable law, but so as to permit the recovery
of the fullest amount otherwise called for thereunder. All sums paid or agreed to be paid to Lender for the use, forbearance or
detention of 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 Debt does not
exceed the maximum lawful rate from time to time in effect and applicable to the Debt for so long as the Debt is outstanding.
Notwithstanding anything to the contrary contained in any Loan Document, it is not the intention of Lender to accelerate the maturity
of any interest that has not accrued at the time of such acceleration or to collect unearned interest at the time of such acceleration.

 

    	 	88	 

     

    

 

10.18
       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 each
is represented by separate counsel in connection with the negotiation, drafting, execution and delivery of the Loan Documents
and that the Loan Documents shall not be subject to the principle of construing their meaning against the party that drafted them.
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.

 

10.19
       No Joint Venture or Partnership; No Third Party Beneficiaries. (a) Borrower and Lender intend that the relationships created
under the 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)
The Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in any Loan Document shall be deemed
to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any
of the obligations contained therein.

 

    	 	89	 

     

    

 

10.20      
Yield Maintenance Premium. Borrower acknowledges that (a) Lender is making the Loan in consideration of the receipt by
Lender of all interest and other benefits intended to be conferred by the Loan Documents and (b) if payments of Principal are
made to Lender prior to the Stated Maturity Date, for any reason whatsoever, whether voluntary, as a result of Lender's acceleration
of the Loan after an Event of Default, by operation of law or otherwise, Lender will not receive all such interest and other benefits
and may, in addition, incur C) costs. For these reasons, and to induce Lender to make the Loan, Borrower agrees that, except as
expressly provided in Article 7 hereof, all prepayments, if any, whether voluntary or involuntary, will be accompanied by the
Yield Maintenance Premium; provided, however, that the foregoing shall not be deemed to imply that the Loan may be voluntarily
prepaid in any manner or under any circumstance other than as expressly set forth in this Agreement. Such Yield Maintenance Premium
shall be required whether payment is made by Borrower, by a Person on behalf of Borrower, or by the purchaser at any foreclosure
sale, and may be included in any bid by Lender at such sale. Borrower further acknowledges that (A) it is a knowledgeable real
estate developer and/or investor; (B) it fully understands the effect of the provisions of this Section 10.20, as well as the
other provisions of the Loan Documents; (C) the making of the Loan by Lender at the Interest Rate and other terms set forth in
the Loan Documents are sufficient consideration for Borrower's obligation to pay a Yield Maintenance Premium (if required); and
(D) Lender would not make the Loan on the terms set forth herein without the inclusion of such provisions. Borrower also acknowledges
that the provisions of this Agreement limiting the right of prepayment and providing for the payment of the Yield Maintenance
Premium and other charges specified herein were independently negotiated and bargained for, and constitute a specific material
part of the consideration given by Borrower to Lender for the making of the Loan except as expressly permitted hereunder.

 

10.21      
Assignments and Participations. In addition to any other rights of Lender hereunder, the Loan, the Note, the Loan Documents
and/or Lender's rights, title, obligations and interests therein may be sold, assigned, participated or otherwise transferred
by Lender and any of its successors and assigns to any Person at any time in its sole and absolute discretion, in whole or in
part, whether by operation of law (pursuant to a merger or other successor in interest) or otherwise without notice to or consent
from Borrower or any other Person. Upon such assignment, all references to Lender in this Agreement and in any Loan Document shall
be deemed to refer to such assignee or successor in interest and such assignee or successor in interest shall thereafter stand
in the place of Lender in all respects. Except as expressly permitted herein, Borrower may not assign its rights, title, interests
or obligations under this Agreement or under any of the Loan Documents.

 

10.22       
INTENTIONALLY DELETED.

 

10.23      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 Debt
without any prior or different resort for collection, or of the right of Lender to the payment of the Debt out of the net proceeds
of the Property in preference to every other claimant whatsoever.

 

10.24      Joint and Several Liability. If more than one Person has executed this Agreement as "Borrower," the representations,
covenants, warranties and obligations of all such O Persons hereunder shall be joint and several.

 

    	 	90	 

     

    

 

10.25     
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.

 

10.26
       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.

 

10.27
       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.

 

10.28
       Negation of Implied Right to Cure Events of Default. Notwithstanding anything contained in this Agreement or any of the
other Loan Documents providing that certain rights, remedies or privileges are only available to Agent or Lender during the "continuance"
of an Event of Default (or words of similar import), Borrower expressly acknowledges and agrees that it does not have the right
to cure an Event of Default once the same has occurred under this Agreement or any other Loan Document and Lender has delivered
Borrower written notice of such Event of Default, in each case without the consent of Agent, which consent may be withheld, delayed
or denied by Agent in its sole and absolute discretion.

 

[Remainder
of Page Intentionally Left Blank; Signature Pages Follow]

 

    	 	91	 

     

    

 

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.

 

	 	BORROWER:
	 	 
	 	MEDALIST
    FUND I-A, LLC, a

 Delaware limited liability company
	 	 
	 	By:
    Medalist Fund Manager, Inc., a Virginia

 corporation, its Manager
	 	 	 	 
	 	 	By:
     	/s/
    William R. Elliott
	 	 	 	 
	 	 	Name:
    	William
    R. Elliott

 

     

     

    

 

	 	LENDER:
	 	 
	 	JEFFERIES
    LOANCORE LLC, 

    a Delaware limited liability company
	 	 	 	 
	 	 	By:
    	/s/
    Thomas R. Aschmeyer
	 	 	Name:
    	Thomas
    R. Aschmeyer
	 	 	 	 
	 	 	Title:
    	Managing
    Director

 

     

     

    

 

Schedule
1

 

Required
Repairs

 

	Required Repair Item	 	Estimated Cost	 	 	Reserve Deposit
 Amount (120%)
 of Estimated

    Cost	 
	l. Topography, storm water drainage, and retaining walls	 	$	7,500	 	 	$	9,000	 
	2. landscaping, fencing, signage, site lighting	 	$	7,500	 	 	$	9,000	 
	3. cladding	 	$	5,250	 	 	$	6,300	 
	 	 	 		 	 	 	 	 
	Total Reserved: 	 	 	$	24,300	 

 

    	 	Sch. 1-1	 

     

    

 

Schedule
2

 

Exceptions
to Representations and Warranties

 

NONE

 

    	 	Sch. 2-1	 

     

    

 

Schedule
3

 

Rent
Roll

 

[see
attached page(s)]

 

    	 	Sch. 3-1	 

     

    

 

Page
1

Rent Roll

Property 2070 From Date: 1/31/2016 By Property

 

	Property	 	Unit(s)	 	Lease	 	Lease Type	 	Area	 	 	Lease From	 	Lease To	 	Term	 	 	Monthly Rent	 	 	Monthly
 Rent Per

    Area	 	 	Annual Rent	 	 	Annual
 Rent 

    Per 
 Area	 	 	Annual 
 Rec
 Per

    Aea	 	 	Annual
 Misc.

    Per
 Area	 	 	Security 
 Deposit	 	 	LOC Amount/ 
 Bank
    
 Guarantee	 
	2070 - Franklin Square, Gastonia	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current Leases	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2070	 	A100	 	ASHLEY FURNITURE HOME STORE	 	Commercial	 	 	34,682.00	 	 	5/14/2007	 	5/12/2022	 	 	180	 	 	 	45,357.58	 	 	 	1.31	 	 	 	544,290.72	 	 	 	15.69	 	 	 	250.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	B100	 	HH GREGG APPLIANCES #95	 	Commercial	 	 	30,000.00	 	 	1/18/2007	 	1/31/2022	 	 	181	 	 	 	26,875.00	 	 	 	0.90	 	 	 	322,500.00	 	 	 	10.75	 	 	 	3.35	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	C100	 	TMA Play Gastonia, Inc	 	Commercial	 	 	12,632.00	 	 	9/1/2015	 	8/31/2025	 	 	120	 	 	 	7,184.45	 	 	 	0.57	 	 	 	86,213.40	 	 	 	6.82	 	 	 	3.15	 	 	 	0.00	 	 	 	10,500.00	 	 	 	0.00	 
	2070	 	D110	 	VACANT	 	 	 	 	5,295.00	 	 	 	 	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	D140	 	Celina Salon Spa	 	Commercial	 	 	1,628.00	 	 	10/1/2015	 	9/30/2020	 	 	60	 	 	 	2,577.67	 	 	 	1.58	 	 	 	30,932.04	 	 	 	19.00	 	 	 	0.00	 	 	 	0.00	 	 	 	5,155.34	 	 	 	0.00	 
	2070	 	D150	 	VACANT	 	 	 	 	1,880.00	 	 	 	 	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	E100	 	KURE CORP	 	Commercial	 	 	2,000.00	 	 	9/1/2014	 	9/1/2019	 	 	60	 	 	 	3,740.00	 	 	 	1.87	 	 	 	44,880.00	 	 	 	22.44	 	 	 	1.76	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	E110	 	VACANT	 	 	 	 	1,445.00	 	 	 	 	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	E120	 	VACANT	 	 	 	 	2,790.00	 	 	 	 	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	F100	 	MOE'S SOUTHWEST GRILL	 	Commercial	 	 	2,871.00	 	 	3/5/2010	 	3/4/2020	 	 	120	 	 	 	5,263.50	 	 	 	1.83	 	 	 	63,182.00	 	 	 	22.00	 	 	 	3.90	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	F110	 	VACANT	 	 	 	 	1,776.00	 	 	 	 	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	F120	 	BEN & JERRY'S	 	Commercial	 	 	1,000.00	 	 	9/1/2009	 	8/31/2019	 	 	120	 	 	 	2,309.96	 	 	 	2.31	 	 	 	27,719.52	 	 	 	27.72	 	 	 	3.85	 	 	 	0.00	 	 	 	2,041.67	 	 	 	0.00	 
	2070	 	F130	 	VACANT	 	 	 	 	3,275.00	 	 	 	 	 	 	 	0	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	G100	 	T-MOBILE #NCGAA002904	 	Commercial	 	 	2,492.00	 	 	7/27/2007	 	7/31/2019	 	 	145	 	 	 	5,430.48	 	 	 	2.18	 	 	 	65,165.76	 	 	 	26.15	 	 	 	3.50	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	G120	 	CYCLE GEAR	 	Commercial	 	 	4,525.00	 	 	2/1/2008	 	1/31/2025	 	 	204	 	 	 	7,164.58	 	 	 	1.58	 	 	 	85,974.96	 	 	 	19.00	 	 	 	3.50	 	 	 	0.00	 	 	 	9,562.50	 	 	 	0.00	 
	2070	 	G130	 	LENDMARK FINANCIAL SERVICES, LLC	 	Commercial	 	 	1,963.00	 	 	4/19/2017	 	4/18/2019	 	 	60	 	 	 	3,189.88	 	 	 	1.83	 	 	 	38,278.58	 	 	 	19.50	 	 	 	3.73	 	 	 	0.00	 	 	 	3,108.08	 	 	 	0.00	 
	2070	 	G140	 	HOOT OWL VENTRUES, LLC	 	Commercial	 	 	1,445.00	 	 	1/20/2014	 	4/20/2019	 	 	63	 	 	 	2,303.75	 	 	 	1.59	 	 	 	27,645.00	 	 	 	19.13	 	 	 	3.27	 	 	 	19.13	 	 	 	11,518.75	 	 	 	0.00	 
	2070	 	G160	 	MATTRESS FIRM #2430	 	Commercial	 	 	3,010.00	 	 	2/1/2008	 	1/31/2020	 	 	144	 	 	 	5,016.67	 	 	 	1.67	 	 	 	60,200.04	 	 	 	20.00	 	 	 	2.85	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	H100	 	GOLD'S GYM 2	 	Commercial	 	 	2,915.00	 	 	10/3/2011	 	10/2/2016	 	 	60	 	 	 	3,182.21	 	 	 	1.09	 	 	 	38,166.52	 	 	 	13.10	 	 	 	3.90	 	 	 	0.00	 	 	 	2,000.00	 	 	 	0.00	 
	2070	 	H110	 	ARMED FORCES CAREER CENTER	 	Commercial	 	 	4,260.00	 	 	4/5/2010	 	4/4/2016	 	 	72	 	 	 	7,455.05	 	 	 	1.75	 	 	 	89,460.60	 	 	 	21.00	 	 	 	3.51	 	 	 	0.14	 	 	 	0.00	 	 	 	0.00	 
	2070	 	H150	 	THAI HOUSE	 	Commercial	 	 	3,376.00	 	 	11/1/2009	 	10/31/2025	 	 	192	 	 	 	5,324.58	 	 	 	1.58	 	 	 	63,895.08	 	 	 	18.93	 	 	 	3.86	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	2070	 	I130	 	GOLD'S GYM GASTONIA	 	Commercial	 	 	8,979.00	 	 	10/3/2011	 	10/2/2016	 	 	60	 	 	 	9,802.08	 	 	 	1.09	 	 	 	117,624.96	 	 	 	13.10	 	 	 	3.90	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	Total Current	 	 	 	 	 	 	 	 	134,239.00	 	 	 	 	 	 	 	 	 	 	 	142,177.43	 	 	 	1.06	 	 	 	1,706,129.18	 	 	 	12.71	 	 	 	2.72	 	 	 	0.21	 	 	 	43,886.34	 	 	 	0.00	 

 

	 	 	Total 

    Units	 	 	Total Area	 	 	Percentage	 	 	Monthly
    
 Rent	 	 	Annual Rent	 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		 
	Occupied	 	 	16	 	 	 	117,778.00	 	 	 	87.73	 	 	 	142,177.43	 	 	 	1,706,129.18	 	 	 		 	 			 	 			 	 			 	 			 	 			 	 			 	 			 	 	 		 	 	 		 
	Vacant	 	 	6	 	 	 	16,461.00	 	 	 	12.26	 	 	 	0.00	 	 	 	0.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

	 	Friday, February 05, 2016
	 	 03:44 PM

  

    	 	Sch. 3-2	 

     

    

 

Page
2

Rent Roll

Property 2070 From Date: 1/31/2016 By Property

  

	Property	 	Unit(s)	 	 	Lease	 	 	Lease Type	 	 	Area	 	 	Lease From	 	 	Lease To	 	 	Term	 	 	Monthly
    Rent	 	 	Monthly

    Rent Per
 Area	 	 	Annual Rent	 	 	Annual 

    Rent
 Per 
 Area	 	 	Annual

    Rec 
 Per 
 Aea	 	 	Annual

    Misc.
 Per
 Area	 	 	Security
    
 Deposit	 	 	LOC Amount/
    
 Bank 
 Guarantee	 
	Total	 	 	22	 	 	 	134239.00	 	 	 		 	 	 	142,177.43	 	 	 	1,706,129.16	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 

   

	 	Friday, February 05, 2016
	 	 03:44 PM

  

    	 	Sch. 3-3	 

     

    

 

Schedule
4

 

Organization
of Borrower

 

 

    	 	Sch. 4-1	 

     

    

 

	Medalist
    Fund l, LLC
	 
	Ownership
    Percentages
	 
	12/31/2015

 

	 	 	Investment	 	Commitment	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Investor	 	Date	 	Amount	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Wallace B. Millner, Ill	 	12/31/2012	 	 	100,000.00	 	 	 	0.8753	%
	W. Bates Chappell	 	1/2/2013	 	 	100,000.00	 	 	 	0.8753	%
	William B. Mason	 	1/2/2013	 	 	100,000.00	 	 	 	0.8753	%
	Langdon T. Christian, IV	 	1/3/2013	 	 	100,000.00	 	 	 	0.8753	%
	William C. Gay	 	1/3/2013	 	 	500,000.00	 	 	 	4.3764	%
	West Entities, LLC, c/o David Richardson, Manager	 	1/4/2013	 	 	200,000.00	 	 	 	1.7505	%
	W. Hunter Goodwin, I l l	 	1/15/2013	 	 	250,000.00	 	 	 	2.1882	%
	C. Garland Hagen	 	1/16/2013	 	 	150,000.00	 	 	 	1.3129	%
	The Kanawha-Gauley Coal & Coke Company	 	1/23/2013	 	 	150,000.00	 	 	 	1.3129	%
	Kanipe Investments, Inc	 	2/5/2013	 	 	250,000.00	 	 	 	2.1882	%
	William T. Miller, Jr	 	2/22/2013	 	 	100,000.00	 	 	 	0.8753	%
	Charles A. & Louise H. Williamson	 	2/22/2013	 	 	150,000.00	 	 	 	1.3129	%
	Isaac L. & Susan R. Wornom, I l l	 	2/28/2013	 	 	100,000.00	 	 	 	0.8753	%
	Steven H. Morton	 	3/8/2013	 	 	100,000.00	 	 	 	0.8753	%
	Martin L. Brill	 	4/22/2013	 	 	100,000.00	 	 	 	0.8753	%
	A. James Fontaine and Susan F. Fontaine, Tenants by the Entireties	 	5/9/2013	 	 	100,000.00	 	 	 	0.8753	%
	Edmund Winston Trice	 	5/20/2013	 	 	100,000.00	 	 	 	0.8753	%
	HF - Medalist, LLC	 	5/23/2013	 	 	225,000.00	 	 	 	1.9694	%
	Hugh A. Joyce	 	5/23/2013	 	 	100,000.00	 	 	 	0.8753	%

 

    	 	Sch. 4-2	 

     

    

 

	D. Kyle Woolfolk	 	5/23/2013	 	 	200,000.00	 	 	 	1.7505	%
	MidAtlantic IRA, LLC: FBO James C. Wheat, Ill Roth IRA	 	5/23/2013	 	 	200,000.00	 	 	 	1.7505	%
	William Richmond McDaniel	 	5/28/2013	 	 	200,000.00	 	 	 	1.7505	%
	MidAtlantic IRA, LLC: FBO William D. Deep, Jr. IRA	 	5/28/2013	 	 	50,000.00	 	 	 	0.4376	%
	Cobblestone Private Income Fund, L.P	 	5/30/2013	 	 	700,000.00	 	 	 	6.1269	%
	William R. Elliott	 	5/30/2013	 	 	100,000.00	 	 	 	0.8753	%
	Neil and Shaun Sullivan	 	5/30/2013	 	 	100,000.00	 	 	 	0.8753	%
	MidAtlantic IRA, LLC: FBO Harold J. Williams IRA	 	5/30/2013	 	 	50,000.00	 	 	 	0.4376	%
	Thomas E. Messier	 	5/31/2013	 	 	100,000.00	 	 	 	0.8753	%
	John M. Daniel, I l l	 	11/27/2013	 	 	100,000.00	 	 	 	0.8753	%
	George E. Calvert	 	12/13/2013	 	 	100,000.00	 	 	 	0.8753	%

 

    	 	Sch. 4-3	 

     

    

 

	William Hunter Goodwin I l	 	1/7/2014	 	 	250,000.00	 	 	 	2.1882	%
	William C. Gay	 	1/9/2014	 	 	500,000.00	 	 	 	4.3764	%
	Susan S. Monday Revocable Trust	 	1/17/2014	 	 	100,000.00	 	 	 	0.8753	%
	Robert P. Wilson	 	1/21/2014	 	 	100,000.00	 	 	 	0.8753	%
	Langdon T. Christian, IV	 	1/31/2014	 	 	100,000.00	 	 	 	0.8753	%
	Betty Sands Christian IRREV Trust	 	1/31/2014	 	 	100,000.00	 	 	 	0.8753	%
	MidAtlantic IRA, LLC: FBO David G Shuford	 	2/5/2014	 	 	100,000.00	 	 	 	0.8753	%
	Steven H. Morton	 	2/7/2014	 	 	100,000.00	 	 	 	0.8753	%
	C. Garland Hagen	 	2/19/2014	 	 	50,000.00	 	 	 	0.4376	%
	Jennifer L Reidlinger TTEE	 	3/21/2014	 	 	200,000.00	 	 	 	1.7505	%
	Susan Everett	 	3/24/2014	 	 	100,000.00	 	 	 	0.8753	%
	Sumati B Shah Revocable Trust	 	3/24/2014	 	 	100,000.00	 	 	 	0.8753	%

 

    	 	Sch. 4-4	 

     

    

 

	1998 Denise Oliphant Revocable Living Trust	 	3/24/2014	 	 	100,000.00	 	 	 	0.8753	%
	Restated Revocable Trust c/o Frank E. Laughon, JR	 	3/24/2014	 	 	100,000.00	 	 	 	0.8753	%
	Judith & Donald Carr	 	3/25/2014	 	 	100,000.00	 	 	 	0.8753	%
	Diana S Stuckey	 	3/25/2014	 	 	100,000.00	 	 	 	0.8753	%
	Pamela R. Hall	 	3/27/2014	 	 	100,000.00	 	 	 	0.8753	%
	Jonathan Stoller Revocable Trust	 	3/27/2014	 	 	100,000.00	 	 	 	0.8753	%
	John R. & Shirley T. Seibert	 	3/27/2014	 	 	250,000.00	 	 	 	2.1882	%
	J. Herbert Hamsher TTEE, Deli Revocable Trust	 	3/27/2014	 	 	200,000.00	 	 	 	1.7505	%
	 	 	 	 	 	 	 	 	 	 	 
	Tomas R Abad	 	4/4/2014	 	 	100,000.00	 	 	 	0.8753	%
	Robert J. O'Brien	 	4/15/2014	 	 	100,000.00	 	 	 	0.8753	%
	David & Lynne Fischgrund	 	4/15/2014	 	 	100,000.00	 	 	 	0.8753	%
	Guilford PE 1, LLC	 	5/5/2014	 	 	500,000.00	 	 	 	4.3764	%
	Roger & Joanne Olsen	 	5/9/2014	 	 	125,000.00	 	 	 	1.0941	%
	William T. Miller, Jr	 	5/12/2014	 	 	100,000.00	 	 	 	0.8753	%
	West Entities, LLC, c/o David Richardson, Manager	 	5/13/2014	 	 	100,000.00	 	 	 	0.8753	%
	Gary A Kremen	 	5/15/2014	 	 	50,000.00	 	 	 	0.4376	%
	AJA Enterprises LLC	 	5/21/2014	 	 	50,000.00	 	 	 	0.4376	%
	Louise D. Williams	 	5/27/2014	 	 	100,000.00	 	 	 	0.8753	%
	Midatlantic IRA LLC: William Cogar	 	6/4/2014	 	 	100,000.00	 	 	 	0.8753	%
	James H. Whitten I l	 	6/5/2014	 	 	100,000.00	 	 	 	0.8753	%
	 	 	 	 	 	 	 	 	 	 	 
	William B. Mason	 	7/29/2014	 	 	50,000.00	 	 	 	0.4376	%
	George E. Calvert	 	7/29/2014	 	 	50,000.00	 	 	 	0.4376	%
	Kanipe Investments, Inc	 	8/8/2014	 	 	350,000.00	 	 	 	3.0635	%
	AJA Enterprises LLC	 	8/22/2014	 	 	50,000.00	 	 	 	0.4376	%
	 	 	 	 	 	 	 	 	 	 	 
	Carol J Wood Revocable Trust	 	9/10/2014	 	 	100,000.00	 	 	 	0.8753	%
	Janet Winkelman	 	9/26/2014	 	 	75,000.00	 	 	 	0.6565	%

 

    	 	Sch. 4-5	 

     

    

 

	James C. Wheat, Ili	 	10/2/2014	 	 	200,000.00	 	 	 	1.7505	%
	William Cogar IRA	 	10/16/2014	 	 	50,000.00	 	 	 	0.4376	%
	James C Barden	 	11/3/2014	 	 	150,000.00	 	 	 	1.3129	%
	Carol K Kaczmarek	 	11/4/2014	 	 	100,000.00	 	 	 	0.8753	%
	Patti Nunnally	 	11/17/2014	 	 	100,000.00	 	 	 	0.8753	%
	John Smart Il	 	11/17/2014	 	 	100,000.00	 	 	 	0.8753	%
	Neil P Farmer	 	12/10/2014	 	 	50,000.00	 	 	 	0.4376	%
	MidAtlantic IRA, FBO John J Caplice	 	12/12/2014	 	 	100,000.00	 	 	 	0.8753	%
	Laurie W Albertini Rev trust	 	12/12/2014	 	 	100,000.00	 	 	 	0.8753	%
	Thomas A. Phelan Rollover IRA	 	12/19/2014	 	 	50,000.00	 	 	 	0.4376	%
	Richard Holbrook SEP IRA	 	12/19/2014	 	 	50,000.00	 	 	 	0.4376	%
	Patricia Kay Baldwin	 	12/19/2014	 	 	150,000.00	 	 	 	1.3129	%
	R. Paul Ashton Rollover IRA	 	12/22/2014	 	 	100,000.00	 	 	 	0.8753	%
	Kathleen Wheeler Rollover IRA	 	12/23/2014	 	 	100,000.00	 	 	 	0.8753	%
	John Brennan	 	12/24/2014	 	 	50,000.00	 	 	 	0.4376	%
	Vrandavan LLC	 	12/30/2014	 	 	50,000.00	 	 	 	0.4376	%
	TOTALS	 	 	 	$	11,425,000.00	 	 	 	100.0000	%

 

    	 	Sch. 4-6	 

     

    

 

Schedule
5

 

Definition
of Special Purpose Bankruptcy Remote Entity

 

(l)
A "Special Purpose Bankruptcy Remote Entity" means (x) a limited liability company that is a Single Member Bankruptcy
Remote LLC or (y) a corporation, limited partnership or limited liability company which at all times since its formation and at
all times thereafter:

 

(i)
        was and will be organized solely for the purpose of (A) owning the Property or (B) acting as a general partner of the
limited partnership that owns the Property or member of the limited liability company that owns the Property;

 

(ii)       has
not engaged and will not engage in any business unrelated to (A) the ownership of the Property, (B) acting as general
partner of the limited partnership that owns the Property or (C) acting as a member of the limited liability company that
owns the Property, as applicable;

 

(iii)      has
not had and will not have any assets other than those related to the Property or its partnership or member interest in the limited
partnership or limited liability company that owns the Property, as applicable;

 

(iv)     has
not engaged, sought or consented to and will not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation,
merger, asset sale (except as expressly permitted by this Agreement), transfer of partnership or O membership interests or the
like, or amendment of its limited partnership agreement, articles of incorporation, articles of organization, certificate of formation
or operating agreement (as applicable);

 

(v)      if
such entity is a limited partnership, has and will have, as its only general partners, Special Purpose Bankruptcy Remote Entities
that are corporations;

 

(vi)     if
such entity is a corporation, has and will have at least two (2) Independent Directors, and has not caused or allowed and will
not cause or allow the board of directors of such entity to take any action requiring the unanimous affirmative vote of 100% of
the members of its board of directors unless all of the directors and all Independent Directors shall have participated in such
vote, and the organizational documents of such entity shall provide that no Independent Director may be removed or replaced without
Cause and unless such entity provides Lender with not less than three (3) Business Days' prior written notice of (a) any proposed
removal of an Independent Director, together with a statement as to the reasons for such removal, and (b) the identity of the
proposed replacement Independent Director, together with a certification that such replacement satisfies the requirements set
forth in the organizational documents for an Independent Director;

 

(vii)    if
such entity is a limited liability company, has and will have at least one member that has been and will be a Special Purpose
Bankruptcy Remote Entity that has been and will be a corporation and such corporation is the managing member of such limited liability
company;

 

    	 	Sch. 5-1	 

     

    

 

(viii)   if
such entity is a limited liability company, has and will have articles of organization, a certificate of formation and/or an operating
agreement, as applicable, providing that (A) such entity will dissolve only upon the bankruptcy of the managing member, (B) the
vote of a majority-in-interest of the remaining members is sufficient to continue the life of the limited liability company in
the event of such bankruptcy of the managing member and (C) if the vote of a majority-in-interest of the remaining members to
continue the life of the limited liability company following the bankruptcy of the managing member is not obtained, the limited
liability company may not liquidate the Property without the consent of the applicable Rating Agencies for as long as the Loan
is outstanding;

 

(ix)      has
not, and without the unanimous consent of all of its partners, directors or members (including all Independent Directors), as
applicable, will not, with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership
interest (A) 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, (B) 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 such entity's properties, (C) make any assignment for the benefit of such entity's creditors or (D)
take any action that might cause such entity to become insolvent;

 

(x)            has
remained and intends to remain solvent and has maintained and intends to maintain adequate capital in light of its contemplated
business operations;

 

(xi)           has
not failed and will not fail to correct any known misunderstanding regarding the separate identity of such entity;

 

(xii)          has
maintained and will maintain its accounts, books and records separate from any other Person and will file its own tax returns;

 

(xiii)         has
maintained and will maintain its books, records, resolutions and agreements as official records;

 

(xiv)        has
not commingled and will not commingle its funds or assets with those of any other Person;

 

(xv)         has
held and will hold its assets in its own name;

 

(xvi)        has
conducted and will conduct its business in its name;

 

(xvii)       has
maintained and will maintain its financial statements, accounting records and other entity documents separate from any other Person;

 

(xviii)      has
paid and will pay its own liabilities, including the salaries of its own employees, out of its own funds and assets;

 

    	 	Sch. 5-2	 

     

    

 

(xix)        has
observed and will observe all partnership, corporate or limited liability company formalities, as applicable;

 

(xx)    
     has maintained and will maintain an arm's-length relationship with its Affiliates;

 

(xxi)        (a)
if such entity owns the Property, has no and will not have any indebtedness other than Permitted Indebtedness, or (b) if such
entity acts as the general partner of a limited partnership which owns the Property, has not and will not have any indebtedness
other than unsecured trade payables in the ordinary course of business relating to acting as general partner of the limited partnership
which owns the Property which (l) do not exceed, at any time, $10,000 and (2) are paid within thirty (30) days of the date incurred,
or (c) if such entity acts as a managing member of a limited liability company which owns the Property, has and will have no indebtedness
other than unsecured trade payables in the ordinary course of business relating to acting as a member of the limited liability
company which owns the Property which (l ) do not exceed, at any time, $10,000 and (2) are paid within thirty (30) days of the
date incurred;

 

(xxii)       has
not and will not assume or guarantee or become obligated for the debts of any other Person or hold out its credit as being available
to satisfy the obligations of any other Person except for the Loan;

 

(xxiii)      has
not and will not acquire obligations or securities of its partners, members or shareholders;

 

(xxiv)  
   has allocated and will allocate fairly and reasonably shared expenses, including shared office space, and uses
separate stationery, invoices and checks;

 

(xxv)   
    except in connection with the Loan, has not pledged and will not pledge its assets for the benefit of any
other Person;

 

(xxvi)  
    has held itself out and identified itself and will hold itself out and identify itself as a separate and
distinct entity under its own name and not as a division or part of any other Person;

 

(xxvii)     has
maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify
its individual assets from those of any other Person;

 

(xxviii)
    has not made and will not make loans to any Person;

 

(xxix)   
    has not identified and will not identify its partners, members or shareholders, or any Affiliate of any of
them, as a division or part of it;

 

(xxx)     
  has not entered into or been a party to, and will not enter into or be a party to, any transaction with its partners,
members, shareholders or Affiliates except in the ordinary course of its business and on terms which are intrinsically fair
and are no less favorable to it than would be obtained in a comparable arm's-length transaction with an unrelated third
party;

 

    	 	Sch. 5-3	 

     

    

 

(xxxi)       has
and will have no obligation to indemnify its partners, officers, directors, members or Special Members, 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;

 

(xxxii)   
   has and will have an express acknowledgment in its organizational documents that Lender is an intended
third-party beneficiary of the "special purpose" provisions of such organizational documents; and

 

(xxxiii)
    will consider the interests of its creditors in connection with all corporate, partnership or limited liability
company actions, as applicable.

 

(Il)
 "Single Member Bankruptcy Remote LLC" means a limited liability company organized under the laws of the State of Delaware
which at all times since its formation and at all times thereafter:

 

(i)         
   was and will be organized solely for the purpose of owning the Property;

 

(ii)           has
not engaged and will not engage in any business unrelated to the ownership of the Property;

 

(iii)          has
not had and will not have any assets other than those related to the Property;

 

(iv)          has
not engaged, sought or consented to and will not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation,
merger, asset sale (except as expressly permitted by this Agreement), transfer of partnership or membership interests or the like,
or amendment of its limited liability company agreement or certificate of formation;

 

(v)           has
not, and without the unanimous consent of all of directors (including all Independent Directors), as applicable, will not, with
respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest (A) 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, (B) 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 such entity's properties, (C) make any assignment for the benefit of such entity's creditors or (D) take any action
that might cause such entity to become insolvent;

 

    	 	Sch. 5-4	 

     

    

 

(vi)          has
remained and intends to remain solvent and has maintained and intends to maintain adequate capital in light of its contemplated
business operations;

 

(vii)         has
not failed and will not fail to correct any known misunderstanding regarding the separate identity of such entity;

 

(viii)       has
maintained and will maintain its books, records, resolutions and agreements as official records;

 

(ix)          has
not commingled and will not commingle its funds or assets with those of any other Person;

 

(x)           has
held and will hold its assets in its own name;

 

(xi)          has
conducted and will conduct its business in its name;

 

(xii)         has
maintained and will maintain its financial statements, accounting records and other entity documents separate from any other Person;

 

(xiii)        has
paid and will pay its own liabilities, including the salaries of its own employees, out of its own funds and assets;

 

(xiv)        has
observed and will observe all limited liability company formalities;

 

(xv)         has
maintained and will maintain an arm's-length relationship with its Affiliates;

 

(xvi)        has
not and will not have any indebtedness other than Permitted Indebtedness;

 

(xvii)        has
not and will not assume or guarantee or become obligated for the debts of any other Person or hold out its credit as being available
to satisfy the obligations of any other Person except for the Loan;

 

(xviii)      has
not and will not acquire obligations or securities of its partners, members or shareholders;

 

(xix)         has
allocated and will allocate fairly and reasonably shared expenses, including shared office space, and uses separate stationery,
invoices and checks;

 

(xx)      
    except in connection with the Loan, has not pledged and will not pledge its assets for the benefit of any
other Person;

 

(xxi)        has
held itself out and identified itself and will hold itself out and identify itself as a separate and distinct entity under its
own name and not as a division or part of any other Person;

 

    	 	Sch. 5-5	 

     

    

 

(xxii)        has
maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify
its individual assets from those of any other Person;

 

(xxiii)       has
not made and will not make loans to any Person;

 

(xxiv)       has
not identified and will not identify its members or any Affiliate of any of them, as a division or part of it;

 

(xxv)       has
not entered into or been a party to, and will not enter into or be a party to, any transaction with its partners, members, shareholders
or Affiliates except in the ordinary course of its business and on terms which are intrinsically fair and are no less favorable
to it than would be obtained in a comparable arm's-length transaction with an unrelated third party;

 

(xxvi)       has
and will have no obligation to indemnify its partners, officers, directors, members or Special Members, 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;

 

(xxvii)      has
and will have an express acknowledgment in its organizational documents that Lender is an intended third-party beneficiary of
the "special purpose" provisions of such organizational documents;

 

(xxviii)
     will consider the interests of its creditors in connection with all limited liability company actions;

 

(xxix)       has
maintained and will maintain its accounts, books and records separate from any other person;

 

(xxx)        has
and will have an operating agreement which provides that the business and affairs of Borrower shall be managed by or under the
direction of a board of one or more directors designated by Sole Member, and at all times there shall be at least two (2) duly
appointed Independent Directors on the board of directors, and the board of directors will not take any action requiring the unanimous
affirmative vote of 100% of the members of its board of directors unless, at the time of such action there are at least two (2)
members of the board of directors who are Independent Directors, and all of the directors and all Independent Directors shall
have participated in such vote;

 

    	 	Sch. 5-6	 

     

    

 

(xxxi)       has
and will have an operating agreement which provides that, as long as any portion of the Debt remains outstanding, (A) upon the
occurrence of any event that causes Sole Member to cease to be a member of Borrower (other than (x) upon an assignment by Sole
Member of all of its limited liability company interest in Borrower and the admission of the transferee, if permitted pursuant
to the organizational documents of Borrower and the Loan Documents, or (y) the resignation of Sole Member and the admission of
an additional member of Borrower, if permitted pursuant to the organizational documents of Borrower and the Loan Documents), the
person acting as an Independent Director of Borrower shall, without any action of any Person and simultaneously with Sole Member
ceasing to be a member of Borrower, automatically be admitted as the sole member of Borrower (the "Special Member")
and shall preserve and continue the existence of Borrower without dissolution, (B) no Special Member may resign or transfer its
rights as Special Member unless (x) a successor Special Member has been admitted to Borrower as a Special Member, and (y) such
successor Special Member has also accepted its appointment as an Independent Director, (C) no Independent Director may be removed
or replaced without Cause and unless the company provides Lender with not less than three (3) Business Days' prior written notice
of (a) any proposed removal of an Independent Director, together with a statement as to the reasons for such removal, and (b)
the identity of the proposed replacement Independent Director, together with a certification that such replacement satisfies the
requirements set forth in the organizational documents for an Independent Director, (D) to the greatest extent permitted by law,
except for duties to Borrower (including duties to the members of Borrower solely to the extent of their respective economic interest
in Borrower and to Borrower's creditors), such Independent Director shall not owe any fiduciary duties to, and shall not consider,
in acting or otherwise voting on any matter for which their approval is required, the interests of (i) the members of Borrower,
(ii) other Affiliates of Borrower, or (iii) any group of Affiliates of which Borrower is a part); provided, however, the foregoing
shall not eliminate the implied contractual covenant of good faith and fair dealing and (E) except as expressly permitted pursuant
to the terms of this Agreement, Sole Member may not resign and no additional member shall be admitted to Borrower; and

 

(xxxii)
      has and will have an operating agreement which provides that, as long as any portion of the Debt remains outstanding, (A) Borrower
shall be dissolved, and its affairs shall be wound up only upon the first to occur of the following: (x) the termination of the
legal existence of the last remaining member of Borrower or the occurrence of any other event which terminates the continued membership
of the last remaining member of Borrower in Borrower unless the business of Borrower is continued in a manner permitted by its
operating agreement or the Delaware Limited Liability Company Act (the "Delaware Act") or (y) the entry of a decree
of judicial dissolution under Section 18 802 of the Delaware Act; (B) upon the occurrence of any event that causes the last remaining
member of Borrower to cease to be a member of Borrower or that causes Sole Member to cease to be a member of Borrower (other than
(x) upon an assignment by Sole Member of all of its limited liability company interest in Borrower and the admission of the transferee,
if permitted pursuant to the organizational documents of Borrower and the Loan Documents, or (y) the resignation of Sole Member
and the admission of an additional member of Borrower, if permitted pursuant to the organizational documents of Borrower and the
Loan Documents), to the fullest extent permitted by law, the personal representative of such member shall be authorized to, and
shall, within 90 days after the occurrence of the event that terminated the continued membership of such member in Borrower, agree
in writing to continue the existence of Borrower and to the admission of the personal representative or its nominee or designee,
as the case may be, as a substitute member of Borrower, effective as of the occurrence of the event that terminated the continued
membership of such member in Borrower; (C) the O bankruptcy of Sole Member or a Special Member shall not cause such member or
Special Member, respectively, to cease to be a member of Borrower and upon the occurrence of such an event, the business of Borrower
shall continue without dissolution; (D) in the event of dissolution of Borrower, Borrower shall conduct only such activities as
are necessary to wind up its affairs (including the sale of the assets of Borrower in an orderly manner), and the assets of Borrower
shall be applied in the manner, and in the order of priority, set forth in Section 18 804 of the Delaware Act; and (E) to the
fullest extent permitted by law, each of Sole Member and the Special Members shall irrevocably waive any right or power that they
might have to cause Borrower 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, to compel any sale of all or any portion of the assets of Borrower 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.

 

    	 	Sch. 5-7	 

     

    

 

(Ill)
 "Cause" shall mean, with respect to an Independent Director or Independent Manager, (i) acts or omissions by such Independent
Director or Independent Manager, as applicable, that constitute willful disregard of, or gross negligence with respect to such
Independent Director's or Independent Manager's, as applicable, duties, (ii) such Independent Director or Independent Manager,
as applicable, has engaged in or has been charged with or has been indicted or convicted for any crime or crimes of fraud or other
acts constituting a crime under any law applicable to such Independent Director or Independent Manager, as applicable, (iii) such
Independent Director or Independent Manager, as applicable, has breached its fiduciary duties of loyalty and care as and to the
extent of such duties in accordance with the terms of Borrower's C organizational documents, (iv) there is a material increase
in the fees charged by such Independent Director or Independent Manager, as applicable, or a material change to such Independent
Director's or Independent Manager's, as applicable, terms of service, (v) such Independent Director or Independent Manager, as
applicable, is unable to perform his or her duties as Independent Director or Independent Manager, as applicable, due to death,
disability or incapacity, or (vi) such Person no longer meets the criteria provided in the definition of Independent Director
or Independent Manager, as applicable.

 

(IV)
 "Independent Director" or "Independent Manager" means a natural person selected by Borrower (a) with prior
experience as an independent director, independent manager or independent member, (b) with at least three (3) years of employment
experience, (c) who is provided by a Nationally Recognized Service Company (defined below), (d) who is duly appointed as an Independent
Director or Independent Manager and is not, will not be while serving as Independent Director or Independent Manager (except pursuant
to an express provision in Borrower's operating agreement providing for the appointment of such Independent Director or Independent
Manager to become a "special member" upon Sole Member ceasing to be a member of Borrower) and shall not have been at
any time during the preceding five (5) years, any of the following:

 

    	 	Sch. 5-8	 

     

    

 

(i)       a stockholder, director (other than as an Independent Director), officer,
employee, partner, attomey or counsel of Borrower, any Affiliate of Borrower or any direct or indirect parent of Borrower;

 

(ii)       a
customer, supplier or other Person who derives any of its purchases or revenues from its activities with Borrower or any Affiliate
of Borrower;

 

(iii)       a
Person or other entity Controlling or under Common Control with any such stockholder, partner, customer, supplier or other Person;
or

 

(iv)       a
member of the immediate family of any such stockholder, director, officer, employee, partner, customer, supplier or other Person.

 

A
natural person who otherwise satisfies the foregoing definition and satisfies subparagraph (i) by reason of being the Independent
Director or Independent Manager of a "special purpose entity" affiliated with Borrower shall be qualified to serve as
an Independent Director or Independent Manager of Borrower, provided that the fees that such individual earns from serving as
Independent Director or Independent Manager of affiliates of Borrower in any given year constitute in the aggregate less than
five percent (5%) of such individual's annual income for that year.

 

A
natural person who satisfies the foregoing definition other than clause (ii) shall not be disqualified from serving as an Independent
Director or Independent Manager of Borrower if such individual is an independent director, independent manager or special manager
provided by a Nationally Recognized Service Company that provides professional independent directors, independent managers and
special managers and also provides other corporate services in the ordinary course of its business.

 

(V)
 "Nationally Recognized Service Company" means any of CT Corporation, Corporation Service Company, National Registered
Agents, Inc., Wilmington Trust Company, National Corporate Research, Ltd. or such other nationally recognized company that provides
independent director, independent manager or independent member services and that is reasonably satisfactory to Lender, in each
case that is not an Affiliate of Borrower and that provides professional independent directors and other corporate services in
the ordinary course of its business.

 

    	 	Sch. 5-9	 

     

    

 

Schedule
6

 

Intellectual
Property/Websites

 

NONE

 

    	 	Sch. 6-1	 

     

    

 

Schedule
7

 

REA

 

Right
of Way Encroachment Agreement recorded in Book 1791, Page 484

 

    	 	Sch. 7-1	 

     

    

 

Schedule
8

 

Leasing
Plan

 

The
Shops at Franklin Square

 

 

    	 	Sch. 8-1

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