Document:

EX-10.4

 Exhibit 10.4 

PROMISSORY NOTE 
  

			
	$12,800,000.00	 	August 30, 2013

 FOR VALUE RECEIVED FLAGSHIP PROPERTIES Ill, LLC, a Delaware limited liability company, as maker, having
its principal place of business at 1600 Broadway Suite 1490, Denver, Colorado 80202 (“Borrower”), hereby unconditionally promises to pay to the order of C-III COMMERCIAL MORTGAGE LLC, a Delaware limited liability company, having an
address at 5221 North O’Connor Boulevard, Suite 600, Irving, Texas 75039 (together with its successors and permitted assigns “Lender”), or at such other place as the holder hereof may from time to time designate in writing, the
principal sum of TWELVE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($12,800,000.00), in lawful money of the United States of America, with interest thereon to be computed from the date of this Note at the Applicable Interest
Rate (defined below), and to be paid in installments as provided herein. 
  

	1.	CERTAIN DEFINED TERMS 

 As used herein the following terms shall have the meanings set
forth below: 
 (a) “Accrual Period” means the period commencing on the first (1st) day of a calendar month and ending
on the last day of such calendar month; provided that if this Note is dated as of any date other than the first (1st) day of a calendar month, the first Accrual Period shall (i) consist of only the date hereof, if the date hereof is the
last day of a calendar month, or (ii) commence on the date hereof and shall end on the last day of the current calendar month. 

(b) “Applicable Interest Rate” shall mean an interest rate equal to 5.73% per annum. 

(c) “Business Day” shall mean any day other than a Saturday or a Sunday or a day on which federally insured depository
institutions in the State of New York are authorized or obligated by law, governmental decree or executive order to be closed. 

(d) “Cash Management Agreement” shall mean that certain Cash Management and Security Agreement of even date herewith made by
Borrower and Lender and, as applicable, joined in by property manager. 
 (e) “Loan” shall mean the loan evidenced by this
Note. 
 (f) “Loan Agreement” means that certain Loan Agreement dated as of the date hereof made by Borrower and Lender
providing for the loan evidenced by this Note, as the same may hereafter be modified, consolidated, supplemented, renewed, or otherwise amended. 

(g) “Loan Documents” shall mean this Note, the Loan Agreement, the Security Instrument, and any other documents or instruments
which now or shall hereafter wholly or partially secure or guarantee payment of this Note or which have otherwise been executed by Borrower and/or any other person in connection with the Loan. 

 (h) “Lockout Period Expiration Date” shall mean two years and one day from the
“startup day” of any “real estate mortgage investment conduit” (as such terms are defined in Sections 860G and 860D, respectively, of the Internal Revenue Code of 1986, as amended or any successor statute thereto) which may
acquire the Loan. 
 (i) “Maturity Date” shall mean September 1, 2023. 

(j) “Monthly Payment” shall mean a payment equal to $74,534.78. 

(k) “Monthly Payment Date” shall mean the first (1st) day of each calendar month prior to the Maturity Date commencing on
(i) the first (1st) day of the next succeeding calendar month after the date hereof if this Note is dated as of the first day of a month, or (ii) the first (1st) day of the second succeeding calendar month after the date hereof
if this Note is dated as of a date other than the first day of a month. 
 (1) “Security Instrument” shall have the meaning given
to such term in the Loan Agreement. 
 (m) “Securitization” means any deposit of this Note, the Security Instrument and the other
Loan Documents with a trust or other entity which may sell certificates or other instruments to investors evidencing an ownership interest in the assets of such trust, the assets thereof or the cash flow or profits thereof, or other entity or
securitization. 
  

	2.	PAYMENT TERMS 

 (a) If this Note is dated as of a date other than the first (1st) day of a calendar month, a payment shall be due from Borrower to Lender on the date hereof on account of all interest scheduled to accrue on the principal sum from and after the date hereof
through and including the last day of the current Accrual Period. The Monthly Payment shall be due from Borrower to Lender on each Monthly Payment Date, with each Monthly Payment to be applied as follows: (i) first, to the payment of interest
which has accrued during the preceding Accrual Period computed at the Applicable Interest Rate, and (ii) the balance toward the reduction of the principal sum. The balance of the principal sum and all interest thereon shall be due and payable
on the Maturity Date. For purposes of the timing of making payments hereunder, but not for purposes of calculating the Accrual Period or the amount of interest accrued during that Accrual Period or due on any Monthly Payment Date or on the Maturity
Date, if the Monthly Payment Date or the Maturity Date occurs on a day that is not a Business Day, then amounts due on such date shall be due on the immediately preceding Business Day. Interest on the principal sum of this Note shall be calculated
by multiplying the actual number of days elapsed in the period for which interest is being calculated by a daily rate based on a 360 day year. 

(b) Unless payments are made in the required amount in immediately available funds at the place where this Note is payable, remittances in
payment of all or any part of the Debt (defined below) shall not, regardless of any receipt or credit issued therefor, constitute payment until the required amount is actually received by Lender in funds immediately available at the place where this
Note is payable (or any other place as Lender, in Lender’s sole discretion, may have established by delivery of written notice thereof to Borrower) and shall be made and accepted subject to the condition that any check or draft may be handled
for collection in accordance with the practice of the collecting bank or banks. 

	3.	DEFAULT AND ACCELERATION 

 (a) The whole of the principal sum of this Note,
(b) interest, default interest, late charges and other sums, as provided in this Note, the Security Instrument or the other Loan Documents, (c) all other monies agreed or provided to be paid by Borrower in this Note, the Security
Instrument or the other Loan Documents, (d) all sums advanced pursuant to the Security Instrument to protect and preserve the Property and the lien and the security interest created thereby, and (e) all sums advanced and costs and expenses
incurred by Lender in connection with the Debt (defined below) or any part thereof, any renewal, extension, or change of or substitution for the Debt or any part thereof, or the acquisition or perfection of the security therefor, whether made or
incurred at the request of Borrower or Lender (all the sums referred to in (a) through (e) above shall collectively be referred to as the “Debt”) shall without notice become immediately due and payable at the option of Lender if
any payment required in this Note prior to the Maturity Date is not paid on the date when due or on the happening of any other default, after the expiration of any applicable notice and grace periods, herein or under the terms of the Security
Instrument or any of the other Loan Documents (collectively, an “Event of Default”). 
  

	4.	DEFAULT INTEREST 

 Borrower does hereby agree that upon the occurrence of an Event of
Default, Lender shall be entitled to receive and Borrower shall pay interest on the entire unpaid principal sum at a rate (the “Default Rate”) equal to the lesser of (i) the Applicable Interest Rate plus five percent (5%) or
(ii) the maximum interest rate that Borrower may by law pay. The Default Rate shall be computed from the occurrence of the Event of Default until the earlier of the date upon which the Event of Default is cured or the date upon which the Debt
is paid in full. Interest calculated at the Default Rate shall be added to the Debt, and shall be deemed secured by the Security Instrument. This provision, however, shall not be construed as an agreement or privilege to extend the date of the
payment of the Debt, nor as a waiver of any other right or remedy accruing to Lender by reason of the occurrence of any Event of Default. 

Borrower acknowledges that it would be extremely difficult or impracticable to determine Lender’s actual damages resulting from any late
payment or default, and the default interest and late charges provided hereunder are reasonable estimates of those damages and do not constitute a penalty. The remedies of Lender in this Note or in the other Loan Documents, or at law or in equity,
shall be cumulative and concurrent, and may be pursued singly, successively or together in Lender’s discretion. Time is of the essence with respect to all matters concerning or relating to this Note. Borrower agrees to pay on demand all
expenses and costs of enforcement, administration and collection actually incurred or paid by Lender including, but not limited to, reasonable attorneys’ fees and disbursements of Lender, whether or not with respect to retained firms, or
otherwise and whether or not any legal proceeding is commenced hereunder. The foregoing amounts shall be paid together with interest thereon at the Default Rate from the date paid or incurred by Lender until such expenses and costs are paid by the
Borrower. 
  

	5.	PREPAYMENT; YIELD MAINTENANCE 

 (a) Except as otherwise expressly provided herein,
Borrower shall not have the right or privilege to prepay all or any portion of the unpaid principal balance of this Note except on or following the First Open Period Payment Date (hereinafter defined). As used herein, “First Open Period
Payment Date” shall mean the first Monthly Payment Date following and excluding the Monthly Payment Date which is three (3) months prior to the Maturity Date. From and after the First Open Period Payment Date, provided no Event of
Default exists, the principal balance of this Note may be prepaid, in whole but not in part, upon: (i) not less than 30 days prior written notice (the “Prepayment Notice”) to Lender specifying the scheduled payment date on which
prepayment is to be made (the “Prepayment Date”); (ii) payment of all accrued and unpaid interest on the outstanding principal balance of this Note to and including the 

 
Prepayment Date together with a payment of all interest which would have accrued on the principal balance of this Note to and including the last day of the Accrual Period in which the Prepayment
Date occurs, if such prepayment occurs on a date which is not the first (1St) day of a calendar month (the “Shortfall Interest Payment”) and (iii) payment of all other
sums then due under this Note, the Security Instrument and the other Loan Documents. Lender shall not be obligated to accept any prepayment of the principal balance of this Note unless it is accompanied by all sums due in connection therewith. 

(b) (i) Prior to the First Open Period Payment Date, this Note may not be prepaid, either in whole or part, provided, however,
that at any time after the Lockout Period Expiration Date, Borrower shall have the right and option to prepay this Note in full only (except as otherwise herein expressly provided) and obtain release of the Property from the lien of the Security
Instrument upon payment of, in addition to all other amounts payable hereunder and under the other Loan Documents, the Prepayment Fee (as such term is defined below). This Note may be prepaid in whole but not in part (except as otherwise expressly
provided herein) at any time after the date that is the third Payment Date prior to the Maturity Date (the“Lockout Expiration Date”). Prepayment of this Note permitted to be made by Borrower pursuant to the terms hereof shall be
made upon the following conditions (i) written notice of such prepayment is received by Lender not more than sixty (60) days and not less than thirty (30) days prior to the date of such prepayment, and (ii) such prepayment is
made on a Monthly Payment Date (or, if such prepayment is not received on a Monthly Payment Date, interest is paid through the next Monthly Payment Date) and is accompanied by all interest accrued hereunder and all other sums due hereunder or under
the other Loan Documents (as hereinafter defined). 
 (ii) For purposes hereof, the “Prepayment Fee” shall be and mean
(x) as to any prepayment pursuant to this Section 5(b), a prepayment fee in an amount equal to the Required Yield Maintenance (as hereinafter defined) and (y) as to any prepayment pursuant to Section 5(c), the Required Prepayment
Amount (as hereinafter defined). Such Prepayment Fee shall be in addition to any other sums due hereunder or under any of the other Loan Documents. No tender of a prepayment of this Note with respect to which a Prepayment Fee is due shall be
effective unless such prepayment is accompanied by the prepayment fee. For purposes hereof, “Required Yield Maintenance” shall mean an amount equal to the greater of the greater of: (A) one (1%) percent of the principal
amount of this Note being prepaid; and (B) the present value of a series of payments each equal to the Payment Differential (hereinafter defined) and payable on each Monthly Payment Date over the remaining original term of this Note and on the
Maturity Date discounted at the Reinvestment Yield (hereinafter defined) for the number of months remaining from the date of the repayment (the “Repayment Date”) to each such Monthly Payment Date and the Maturity Date. The term
“Reinvestment Yield” as used herein shall be equal to the lesser of (a) the (i) yield on the U.S. Treasury issue (primary issue) with the same maturity date as the Maturity Date; or (ii) if no such U.S. Treasury issue
is available, then the interpolated yield on the two U.S. Treasury issues (primary issues) with maturity dates (one prior to and one following) that are closest to the Maturity Date; or (b) the (i) yield on the U.S. Treasury issue (primary
issue) with a term equal to the remaining average life of the Debt, or (ii) if no such U.S. Treasury issue is available, then the interpolated yield on the two U.S. Treasury issues (primary issues) with terms (one prior to and one following)
that are closest to the remaining average life of the Debt, with each such yield being based on the bid price for such issue as published in The Wall Street Journal on the date that is 14 days prior to the Repayment Date (or, if such bid price is
not published on that date, the next preceding date on which such bid price is so published) and converted to a monthly compounded nominal yield. The term “Payment Differential” as used herein shall be equal to (x) the
Applicable Interest Rate minus the Reinvestment Yield, divided by (y) 12 and multiplied by (z) an amount equal to the principal sum being repaid on such Repayment Date after application of the Monthly Payment (if any) due on the date of
the Default Repayment, provided that the Payment Differential shall in no event be less than zero. In no event, however, shall Lender be required to reinvest any repayment proceeds in U.S. Treasury obligations or otherwise. 

 (c) For purposes of this Note, the term “Default Repayment” shall mean a
repayment of all or any portion of the principal amount of this Note made during the continuance of any Event of Default or after an acceleration of the Maturity Date under any circumstances, including, without limitation, a repayment occurring in
connection with reinstatement of the Security Instrument provided by statute under foreclosure proceedings or exercise of a power of sale, any statutory right of redemption exercised by Borrower or any other party having a statutory right to redeem
or prevent foreclosure, any sale in foreclosure or under exercise of a power of sale or otherwise. Except as otherwise expressly provided in Section 5(d) below, and notwithstanding any provisions of this Note or any other Loan Document
to the contrary if, prior to the First Open Period Payment Date any Default Repayment is made, simultaneously with each such Default Repayment occurring prior to the First Open Period Payment Date, Borrower shall pay to Lender an amount equal to the
sum (the “Required Prepayment Amount”) of (1) one percent (1%) of an amount equal to the principal amount of this Note being prepaid, and (2) the greater of: (A) one (1%) percent of the principal amount of
this Note being prepaid; and (B) the present value of a series of payments each equal to the Payment Differential and payable on each Monthly Payment Date over the remaining original term of this Note and on the Maturity Date discounted at the
Reinvestment Yield for the number of months remaining from the Repayment Date to each such Monthly Payment Date and the Maturity Date. In no event, however, shall Lender be required to reinvest any repayment proceeds in U. S. Treasury obligations or
otherwise. 
 In the event that any Prepayment Fee is due hereunder (whether pursuant to Section 5(b) or 5(c) hereof), Lender may at
its option or on Borrower’s request deliver to Borrower a statement setting forth the amount and determination of the Prepayment Fee, and Borrower shall not have the right to challenge the calculation or the method of calculation set forth in
any such statement in the absence of manifest error. Such calculation may be made by Lender on any day during the thirty (30) day period preceding the date of such prepayment. With regard to any prepayment made hereunder (except for a
prepayment resulting from the application of condemnation or insurance proceeds), if prior written notice required in Section 5(b)(i) above has not been received by Lender, the prepayment shall be increased by an amount equal to the lesser of
(x) thirty (30) days’ unearned interest computed on the outstanding principal balance of this Note so prepaid and (y) unearned interest computed on the outstanding principal balance of this Note so prepaid for the period from,
and including, the date of prepayment through the Maturity Date. 
 (d) Partial prepayments of this Note shall not be permitted, except
(i) partial prepayments resulting from Lender applying insurance or condemnation proceeds to reduce the outstanding principal balance of this Note as provided in the Loan Agreement or Security Instrument, in which event ho Prepayment Fee shall
be due and (ii) partial prepayments made for a Partial Release in accordance with the terms and conditions of Section 8.2 of the Loan Agreement and this Note. No notice of prepayment shall be required under the circumstance specified in
clause (i) of the preceding Sentence. No principal amount repaid may be re-borrowed. All such proceeds shall be payable to Lender unless prohibited by law, regulation, operation of such policy or the specific terms of the Loan Documents.
Partial payments of principal shall be applied, in such order and priority as determined by Lender, to the unpaid principal balance evidenced hereby on the next succeeding Payment Date following Lender’s determination to apply insurance or
condemnation proceeds to the partial prepayment of the outstanding principal balance of this Note. 
 (e) Except as otherwise expressly
provided in Section 5(d)(i) above, the Prepayment Fees provided above shall be due, to the extent permitted by applicable law, under any and all circumstances where all or any portion of this Note is paid prior to the Lockout Expiration
Date, whether such prepayment is voluntary or involuntary, even if such prepayment results from Lender’s exercise of its rights upon Borrower’s default and acceleration of the Maturity Date of this Note (irrespective of whether foreclosure
proceedings have been commenced), and shall be in addition to any other sums due 

 
hereunder or under any of the other Loan Documents. No tender of a prepayment of this Note with respect to which a Prepayment Fee is due shall be effective unless such prepayment is accompanied
by the Prepayment Fee. 
  

	6.	SECURITY 

 This Note is secured by the Security Instrument and the other Loan Documents.
The Security Instrument is intended to be duly recorded in the public records of the county where the Property is located. All of the terms, covenants and conditions contained in the Security Instrument and the other Loan Documents are hereby made
part of this Note to the same extent and with the same force as if they were fully set forth herein. 
  

	7.	SAVINGS CLAUSE 

 This Note is subject to the express condition that at no time shall
Borrower be obligated or required to pay interest on the principal balance due hereunder at a rate which could subject Lender to either civil or criminal liability as a result of being in excess of the maximum interest rate which Borrower is
permitted by applicable law to contract or agree to pay. If by the terms of this Note, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of such maximum rate, the Applicable
Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction of principal and not on
account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the Debt, shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the
full stated term of the Note until payment in full so that the rate or amount of interest on account of the Debt does not exceed the maximum lawful rate of interest 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 this Note or any of the other Loan Documents, neither the Applicable Interest Rate or the Default Rate provided hereunder shall at any time exceed the Maximum Rate. The term
“Maximum Rate,” as used herein, shall mean, on any day, the highest nonusurious rate of interest (if any) permitted by applicable law on such day. 

The parties hereto do not intend to contract for, charge or receive any interest or other charge which is usurious, and by execution of this
Note or the Security Instrument, Borrower agrees that Lender has no such intent. This Note, the Security Instrument, the other Loan Documents and all other agreements between Borrower and Lender or any other holder hereof, which are now existing or
hereafter arising, whether written or oral, are hereby expressly limited so that in no event whatsoever, whether by reason of acceleration of maturity hereof; or otherwise, shall the amount paid, or agreed to be paid, to Lender or any other holder
hereof for the use, forbearance or detention of the money to be due hereunder or otherwise, or for the payment or performance of any covenant or obligation contained herein or in any other document evidencing, securing or pertaining to the debt,
exceed the Maximum Rate. If from any circumstance whatsoever fulfillment of any provisions hereof or other document, at the time performance of such provisions shall be due, shall involve transcending the valid limits prescribed by law, then ipso
facto, the obligation to be fulfilled shall be reduced to the Maximum Rate, and if from any such circumstance Lender or any other holder shall ever receive as interest or otherwise an amount which will exceed the Maximum Rate, such amount which
would be 

 
excessive interest shall be applied to the reduction of the principal amount owing hereunder (without prepayment premium or penalty) or on account of any other principal indebtedness of Borrower
to the holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded to Borrower. All sums paid and agreed to be paid to Lender or
any other holder for use, forbearance or detention of the indebtedness of Borrower shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the period until payment in full on the Note (or any
renewals, extensions and rearrangement thereof) so that the actual rate of interest on account of the debt is uniform throughout the term of this Note (and all renewals, extensions and rearrangements hereof) and does not exceed the Maximum Rate. The
terms and provisions of this Section 7 shall control and supersede any other provision of this Note and the other Loan Documents. 
  

	8.	LATE CHARGE 

 If any sum payable under this Note is not paid on the date on which it is
due, regardless of whether such failure shall constitute an Event of Default, Borrower shall pay to Lender upon demand an amount equal to the lesser of five percent (5%) of the unpaid sum or the maximum amount permitted by applicable law to
defray the expenses incurred by Lender in handling and processing the delinquent payment and to compensate Lender for the loss of the use of the delinquent payment and the amount shall be secured by the Security Instrument and the other Loan
Documents. 
  

	9.	NO ORAL CHANGE 

 This Note may not be modified, amended, waived, extended, changed,
discharged or terminated orally or by any act or failure to act on the part of Borrower or Lender, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge
or termination is sought. 
  

	10.	JOINT AND SEVERAL LIABILITY 

 If Borrower consists of more than one person or party, the
obligations and liabilities of each person or party shall be joint and several. 
  

	11.	WAIVERS, ETC. 

 All payments required hereunder shall be made irrespective of, and
without any deduction for, any setoff, defense or counterclaim. Borrower and all others who may become liable for the payment of all or any part of the Debt do hereby severally waive presentment and demand for payment, notice of dishonor, protest
and notice of protest and non-payment and all other notices of any kind, other than notices specifically required by the terms of this Note, the Security Instrument and the other Loan Documents. No release of any security for the Debt or extension
of time for payment of this Note or any installment hereof, and no alteration, amendment or waiver of any provision of this Note, the Security Instrument or the other Loan Documents made by agreement between Lender or any other person or party shall
release, modify, amend, waive, extend, change, discharge, terminate or affect the liability of Borrower, and any other person or entity who may become liable for the payment of all or any part of the Debt, under this Note, the Security Instrument or
the other Loan Documents. No notice to or demand on Borrower shall be deemed to be a waiver of the obligation of Borrower or of the right of Lender to take further action without further notice or demand as provided for in this Note, the Security
Instrument or the other Loan Documents. In addition, acceptance by Lender of any payment in an amount less than the 

 
amount then due shall be deemed an acceptance on account only, and the failure to pay the entire amount then due shall be and continue to be an Event of Default. If Borrower is a partnership, the
agreements herein contained shall remain in force and applicable, notwithstanding any changes in the individuals comprising the partnership, and the term “Borrower,” as used herein, shall include any alternate or successor partnership, but
any predecessor partnership and their partners shall not thereby be released from any liability. If Borrower is a corporation or limited liability company, the agreements contained herein shall remain in full force and applicable notwithstanding any
changes in the shareholders or members comprising, or the officers and directors or managers relating to, the corporation or limited liability company, and the term “Borrower” as used herein, shall include any alternative or successor
corporation or limited liability company, but any predecessor corporation or limited liability company shall not be relieved of liability hereunder. (Nothing in the foregoing sentence shall be construed as a consent to, or a waiver of, any
prohibition or restriction on transfers of interests in a partnership, corporation or limited liability company which may be set forth in the Security Instrument or any other Loan Document.) 

 

	12.	TRANSFER 

 Upon the transfer of this Note, Borrower hereby waiving notice of any such
transfer, Lender may deliver all the collateral mortgaged, granted, pledged or assigned pursuant to the Security Instrument and the other Loan Documents, or any part thereof, to the transferee who shall thereupon become vested with all the rights
herein or under applicable law given to Lender with respect thereto, and Lender shall thereafter forever be relieved and fully discharged from any liability or responsibility in the matter; but Lender shall retain all rights hereby given to it with
respect to any liabilities and the collateral not so transferred. 
  

	13.	JURISDICTION; WAIVER OF TRIAL BY JURY 

 ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST
LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS NOTE MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND
BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR
PROCEEDING AND APPELLATE COURTS FROM ANY THEREOF. BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
 Corporation Service Company

 80 State Street 

Albany, New York 12207-2543 
 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 MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED IN THE LOAN AGREEMENT SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER, 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 LOCATED IN NEW YORK, NEW YORK. 
 BORROWER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE APPLICATION FOR THE LOAN, THIS NOTE, THE LOAN AGREEMENT OR THE OTHER LOAN DOCUMENTS
OR ANY ACTS OR OMISSIONS OF LENDER OR BORROWER, RESPECTIVELY, OR THEIR RESPECTIVE OFFICERS, EMPLOYEES, DIRECTORS OR AGENTS IN CONNECTION THEREWITH. 
  

	14.	EXCULPATION 

 Notwithstanding anything herein that may be construed to the contrary, the
terms of Article 11 of the Loan Agreement are incorporated herein by reference as if fully set forth herein. 
  

	15.	AUTHORITY 

 Borrower represents that Borrower has full power, authority and legal right
to execute and deliver this Note, the Security Instrument and the other Loan Documents and that this Note, the Security Instrument and the other Loan Documents constitute valid and binding obligations of Borrower. 

 

	16.	APPLICABLE LAW 

 THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND DELIVERED
TO LENDER 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, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, 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 AND SECURITY INTERESTS CREATED PURSUANT
TO THE SECURITY INSTRUMENT AND OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE, COMMONWEALTH OR DISTRICT, AS APPLICABLE, IN WHICH THE RELATED 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 ALL OF THE OBLIGATIONS ARISING HEREUNDER OR
THEREUNDER. 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, THE LOAN AGREEMENT AND THE NOTE, AND THIS AGREEMENT, THE
LOAN AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

 

	17.	COUNSEL FEES 

 In the event that it should become necessary to employ counsel to collect
the Debt or to protect or foreclose the security therefor, Borrower also agrees to pay all reasonable fees and expenses of Lender, including, without limitation, reasonable attorney’s fees for the services of such counsel whether or not suit be
brought. 
  

	18.	NOTICES 

 All notices or other written communications hereunder shall be delivered in
accordance with Section 14.1 of the Security Instrument. 
  

	19.	MISCELLANEOUS 

 (a) Wherever pursuant to this Note (i) Lender exercises any right
given to it to approve or disapprove, (ii) any arrangement or term is to be satisfactory to Lender, or (iii) any other decision or determination is to be made by Lender, the decision of Lender to approve or disapprove, all decisions that
arrangements or terms are satisfactory or not satisfactory and all other decisions and determinations made by Lender, shall be in the sole and absolute discretion of Lender and shall be final and conclusive, except as may be otherwise expressly and
specifically provided herein. 
 (b) Whenever used, the singular shall include the plural, the plural shall include the singular, and the
words “Lender” and “Borrower” shall include their respective successors, assigns, heirs, executors and administrators. 

(c) BORROWER HEREBY ACKNOWLEDGES THAT INTEREST IN THIS NOTE IS TO BE CALCULATED BY LENDER ON THE BASIS OF A THREE HUNDRED SIXTY (360) DAY
YEAR AND IS FULLY AWARE THAT SUCH CALCULATIONS MAY RESULT IN AN ACCRUAL AND/OR PAYMENT OF INTEREST IN AMOUNTS GREATER THAN CORRESPONDING INTEREST CALCULATIONS BASED ON A THREE HUNDRED SIXTY-FIVE (365) DAY YEAR. 

 (d) THE PARTIES ACKNOWLEDGE THAT THE WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

 IN WITNESS WHEREOF, Borrower has duly executed this Note as of the day and year first above
written. 
  

					
	BORROWER:
		
		 	Flagship Properties III, LLC, a Delaware limited liability company
		
		 	By: Gator Carolina Manager, LLC, a Colorado limited liability company
			
		 	By:	 	

		 	 	  

		 	Name: James E. Powers
		 	Title: Manager and Member

	
	STATE OF Colorado )
	                                    )ss.
	COUNTY OF Denver )

 On the 26th day of August in the year 2013 before me, the undersigned,
personally appeared JAMES E. POWERS, proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
capacity (ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 

 

	
	

	Notary Public
	
	Printed Name: Paula S. Heeren
	
	My Commission Expires:
	11/26/16
	[Seal]EX-10.5

 Exhibit 10.5 

Loan No. 30-0830025 

ASSUMPTION AGREEMENT 

This Assumption Agreement (“Agreement”) is dated as of November 3, 2014, by U.S. BANK NATIONAL ASSOCIATION, as Trustee
for the registered holders of WFRBS Commercial Mortgage Trust 2013-C16, Commercial Mortgage Pass-Through Certificates, Series 2013-C16 (“Lender”), FLAGSHIP PROPERTIES III, LLC, a Delaware limited liability company
(“Borrower”), and SST II 5012 NEW BERN AVE, LLC, a Delaware limited liability company (the “New Bern Buyer”), SST II 150 AIRPORT BLVD, LLC, a Delaware limited liability company (the “Airport
Buyer”), SST II 338 JESSE ST, LLC, a Delaware limited liability company (the “Jesse Street Buyer”), SST II 120 CENTREWEST CT, LLC, a Delaware limited liability company (the “Centrewest Buyer”) , and SST II
4630 DICK POND RD, LLC, a Delaware limited liability company (“Dick Pond Buyer” and, together with the New Bern Buyer, the Airport Buyer, the Jesse Street Buyer and the Centrewest Buyer, sometimes herein individually and
collectively referred to and jointly and severally obligated as, “Buyer”). 
 R E C I T
A L S : 
  

	A.	Lender’s predecessor in interest made a loan to Borrower in the original principal amount of TWELVE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($12,800,000.00) (“Loan”), under the terms and
provisions set forth in the following loan documents, all of which are dated as of August 30, 2013, unless otherwise noted: 

  

	 	1.	Loan Agreement between Borrower and Lender’s predecessor in interest (the “Loan Agreement”); 

  

	 	2.	Promissory Note (“Note”) in the original principal amount of the Loan, made by Borrower and payable to Lender’s predecessor in interest; 

 

	 	3.	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (as assigned, as set forth below, “New Bern Security Instrument”) executed by Borrower, as trustor, for the benefit
of Lender’s predecessor in interest, as beneficiary, which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, in Book No. 015430, Page 01466, in the Official Records of Wake County, North
Carolina (the “Wake County Official Records”), the beneficiary’s interest under which was assigned by assignment which was recorded on January 27, 2014, in Book No. 015566, Page 02046, in the Wake County Official
Records. The land, improvements and other real property which are subject to the New Bern Security Instrument are hereinafter referred to as the “New Bern Property” and the equipment, machinery and other personal property which are
subject to the New Bern Security Instrument are hereinafter referred to as the “New Bern Collateral”; 

	 	4.	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (as assigned, as set forth below, “Airport Security Instrument”) executed by Borrower, as trustor, for the benefit of
Lender’s predecessor in interest, as beneficiary, which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, in Book No. 015430, Page 01516, in the Wake County Official Records, the
beneficiary’s interest under which was assigned by assignment which was recorded on January 27, 2014, in Book No. 015566, Page 02079, in the Wake County Official Records. The land, improvements and other real property which are
subject to the Airport Security Instrument are hereinafter referred to as the “Airport Property” and the equipment, machinery and other personal property which are subject to the Airport Security Instrument are hereinafter referred
to as the “Airport Collateral”; 

  

	 	5.	Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing (as assigned, as set forth below, “Jesse Street Security Instrument”) executed by Borrower, as mortgagor, for the benefit
of Lender’s predecessor in interest, as mortgagee, which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, as Instrument No. 2013000105965, in Book No. 5532, Page 1879, in the Official
Records of Horry County, South Carolina (the “Horry County Official Records”), the beneficiary’s interest under which was assigned by assignment which was recorded on January 23, 2014, as Instrument No. 2014000007897 in
Book No. 5567, Page 3277, in the Horry County Official Records. The land, improvements and other real property which are subject to the Jesse Street Security Instrument are hereinafter referred to as the “Jesse Street Property” and
the equipment, machinery and other personal property which are subject to the Jesse Street Security Instrument are hereinafter referred to as the “Jesse Street Collateral”; 

 

	 	6.	Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (as assigned, as set forth below, “Centrewest Security Instrument”) executed by Borrower, as trustor, for the benefit
of Lender’s predecessor in interest, as beneficiary, which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, in Book No. 015430, Page 01416, in the Wake County Official Records, the
beneficiary’s interest under which was assigned by assignment which was recorded on January 21, 2014, in Book No. 015561, Page 01044, in the Wake County Official Records. The land, improvements and other real property which are
subject to the Centrewest Security Instrument are hereinafter referred to as the “Centrewest Property” and the equipment, machinery and other personal property which are subject to the Centrewest Security Instrument are hereinafter
referred to as the “Centrewest Collateral”; 

  

	 	7.	 Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing (as assigned, as set forth below, “Dick Pond Security
Instrument”) executed by Borrower, as mortgagor, for the benefit of Lender’s predecessor in interest, as mortgagee, which secures the Note and other obligations of Borrower

  
 -2- 

	 	
and which was recorded on September 4, 2013, as Instrument No. 2013000105963, in Book No. 5532, Page 1845, in the Horry County Official Records, the beneficiary’s interest under
which was assigned by assignment which was recorded on January 23, 2014, as Instrument No. 2014000007906, in Book No. 5567, Page 3308, in the Horry County Official Records. The land, improvements and other real property which are subject
to the Dick Pond Security Instrument are hereinafter referred to as the “Dick Pond Property,” and the equipment, machinery and other personal property which are subject to the Dick Pond Security Instrument are hereinafter referred
to as the “Dick Pond Collateral”; 

  

	 	8.	Assignment of Leases and Rents (as assigned, as set forth below, “New Bern Assignment of Leases”) executed by Borrower, as assignor, for the benefit of Lender’s predecessor in interest, as
assignee, which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, in Book No. 015430, Page 01503, in the Wake County Official Records, the assignee’s interest under which was assigned by
assignment which was recorded on January 27, 2014, in Book No. 015566, Page 02051, in the Wake County Official Records. 

  

	 	9.	Assignment of Leases and Rents (as assigned, as set forth below, “Airport Assignment of Leases”) executed by Borrower, as assignor, for the benefit of Lender’s predecessor in interest, as assignee,
which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, in Book No. 015430, Page 01553, in the Wake County Official Records, the assignee’s interest under which was assigned by assignment
which was recorded on January 27, 2014, in Book No. 015566, Page 02084, in the Wake County Official Records. 

  

	 	10.	Assignment of Leases and Rents (as assigned, as set forth below, “Jesse Street Assignment of Leases”) executed by Borrower, as assignor, for the benefit of Lender’s predecessor in interest, as
assignee, which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, As Instrument No. 2013000105966 in Book No. 3682, Page 23, in the Horry County Official Records, the assignee’s interest
under which was assigned by assignment which was recorded on January 23, 2014, as Instrument No. 2014000007898 in Book No. 3711, Page 2142, in the Horry County Official Records. 

 

	 	11.	Assignment of Leases and Rents (as assigned, as set forth below, “Centrewest Assignment of Leases”) executed by Borrower, as assignor, for the benefit of Lender’s predecessor in interest, as
assignee, which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, in Book No. 015430, Page 01453, in the Wake County Official Records, the assignee’s interest under which was assigned by
assignment which was recorded on January 21, 2014, in Book No. 015561, Page 01049, in the Wake County Official Records. 

  
 -3- 

	 	12.	Assignment of Leases and Rents (as assigned, as set forth below, “Dick Pond Assignment of Leases”) executed by Borrower, as assignor, for the benefit of Lender’s predecessor in interest, as
assignee, which secures the Note and other obligations of Borrower and which was recorded on September 4, 2013, as Instrument No. 2013000105964, in Book No. 3682, Page 9, in the Horry County Official Records, the assignee’s interest
under which was assigned by assignment which was recorded on January 23, 2014, as Instrument No. 2014000007907, in Book No. 3711, Page 2167, in the Horry County Official Records. 

 

	 	13.	Guaranty of Recourse Obligations (“Guaranty”) executed by James E. Powers, an individual, and Gator Carolina Manager, LLC, a Colorado limited liability company (individually and collectively referred to
and jointly and severally obligated as “Guarantor”); 

  

	 	14.	Environmental Indemnity Agreement with respect to the New Bern Property executed by Borrower; 

  

	 	15.	Environmental Indemnity Agreement with respect to the Airport Property executed by Borrower; 

  

	 	16.	Environmental Indemnity Agreement with respect to the Jesse Street Property executed by Borrower; 

  

	 	17.	Environmental Indemnity Agreement with respect to the Centrewest Property executed by Borrower; 

  

	 	18.	Environmental Indemnity Agreement with respect to the Dick Pond Property executed by Borrower (collectively, with each of the aforementioned Environmental Indemnity Agreements, the “Existing Environmental
Indemnity”); 

  

	 	19.	Assignment of Management Agreement and Subordination of Management Fees dated August 30, 2013 executed by Borrower and Extra Space Management, Inc., a Utah corporation (“Existing Manager”), in
favor of Lender (the “Existing Assignment of Management Agreement”); 

  

	 	20.	Cash Management and Security Agreement between Borrower and Lender’s predecessor in interest (the “Existing Cash Management Agreement”), to which Existing Manager executed a Joinder of Manager
dated August 30, 2013; 

  

	 	21.	Assignment of Agreements, Permits and Contracts executed by Borrower in favor of Lender’s predecessor in interest; 

  

	 	22.	Further Assurance Agreement executed by Borrower in favor of Lender’s predecessor in interest; 

  

	 	23.	Post-closing Agreement executed by Borrower in favor of Lender’s predecessor in interest; 

  
 -4- 

	 	24.	UCC-1 Financing Statements recorded with the Wake County Official Records and the Horry County Official Records, naming Borrower as debtor and Lender’s predecessor in interest as the secured party;

  

	 	25.	UCC-1 Financing Statement filed with the Delaware Secretary of State, naming Borrower as debtor and Lender’s predecessor in interest as the secured party. 

The above documents and any other Loan Documents (as defined in the Loan Agreement), including, in each case, any prior amendments thereto,
together with this Agreement are hereinafter collectively defined as the “Loan Documents”. Terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Loan Documents. 

The New Bern Security Instrument, the Airport Security Instrument, the Jesse Street Security Instrument, the Centrewest Security Instrument,
and the Dick Pond Security Instrument are sometimes referred to herein collectively as the “Existing Security Instrument,” and the New Bern Assignment of Leases, the Airport Assignment of Leases, the Jesse Street Assignment of
Leases, the Centrewest Assignment of Leases, and the Dick Pond Assignment of Leases are sometimes referred to herein collectively as the “Existing Assignments of Leases”. 

The New Bern Property, Airport Property, Jesse Street Property, Centrewest Property and Dick Pond Property are sometimes hereinafter
individually and collectively referred to as “Property”. 
 The New Bern Collateral, Airport Collateral, Jesse
Street Collateral, Centrewest Collateral and the Dick Pond Collateral are sometimes hereinafter individually and collectively referred to as the “Collateral”. 

 

	B.	The principal balance of the Note and accrued and unpaid interest on the Note are as set forth on Exhibit A attached hereto. 

 

	C.	Borrower has sold and conveyed the Property and the Collateral to Buyer, or is about to sell and convey the Property and the Collateral to Buyer, and both parties desire to obtain Lender’s consent to the sale of
the Property to Buyer and the assumption of the Loan by Buyer, and obtain from Lender a waiver of any right Lender may have under the Loan Documents to accelerate the Maturity Date of the Note by virtue of such conveyance. The New Bern Buyer will
acquire the New Bern Property, the Airport Buyer will acquire the Airport Property, the Jesse Street Buyer will acquire the Jesse Street Property, the Centrewest Buyer will acquire the Centrewest Property, and the Dick Pond Buyer will acquire the
Dick Pond Property. 

  

	D.	Subject to the terms and conditions hereof, Lender is willing to waive any right of acceleration of the Maturity Date of the Note upon assumption by Buyer of all obligations of Borrower under the Loan Documents.

  
 -5- 

 NOW THEREFORE, FOR VALUABLE CONSIDERATION, including, without limitation, the mutual covenants and promises
contained herein, the parties agree as follows: 
  

	1.	Incorporation. The foregoing recitals are incorporated herein by this reference. 

  

	2.	Fees. As consideration for Lender’s execution of this Agreement and in addition to any other sums due hereunder, (i) Borrower and Buyer agree to pay Lender or Lender’s servicer(s) (all as
set forth in the escrow instructions to be executed in connection with the closing of this assumption) an assumption fee as set forth on Exhibit A attached hereto, due on execution of this Agreement by Lender, and (ii) Buyer agrees
to pay Lender or Lender’s servicer(s) (all as set forth in the escrow instructions to be executed in connection with the closing of this assumption) a preferred equity consent fee as set forth on Exhibit A attached hereto, due on
execution of this Agreement by Lender. 

  

	3.	Conditions Precedent. The following are conditions precedent to Lender’s obligations under this Agreement: 

  

	 	a.	The irrevocable commitment of First American Title Insurance Company (“Title Company”) to issue a CLTA 110.5 endorsement (or equivalent) to Title Company’s Title Policy No. 5011300-12133962E,
dated September 4, 2013, and any other endorsements required by Lender, in each case in form and substance acceptable to Lender and without deletions or exceptions other than as expressly approved by Lender in writing, insuring Lender that the
priority and validity of the New Bern Security Instrument, the Airport Security Instrument, and the Centrewest Security Instrument has not been and will not be impaired by this Agreement, the conveyance of the New Bern Property, the Airport
Property, and the Centrewest Property, or the transaction contemplated hereby; 

  

	 	b.	Intentionally Deleted; 

  

	 	c.	The irrevocable commitment of Title Company to issue a CLTA 110.5 endorsement (or equivalent) to Title Company’s Title Policy No. 5011300-1213427E, dated September 4, 2013, and any other endorsements
required by Lender, in each case in form and substance acceptable to Lender and without deletions or exceptions other than as expressly approved by Lender in writing, insuring Lender that the priority and validity of the Jesse Street Security
Instrument and the Dick Pond Security Instrument has not been and will not be impaired by this Agreement, the conveyance of the Jesse Street Property and the Dick Pond Property, or the transaction contemplated hereby; 

 

	 	d.	Intentionally Deleted; 

  

	 	e.	Intentionally Deleted; 

  

	 	f.	 Receipt and approval by Lender of: (i) the executed original of this Agreement; (ii) an executed original of an amendment to each Security
Instrument, executed by the applicable Buyer, which shall be in form and substance acceptable to 

  
 -6- 

	 	
Lender (each, an “Amendment to Security Instrument”); and (iii) any other documents and agreements which are required pursuant to this Agreement, in form and content
acceptable to Lender; 

  

	 	g.	Recordation in the Official Records of the County where the applicable Property is located of the applicable Amendment to Security Instrument, together with such other documents and agreements, if any, required pursuant
to this Agreement or which Lender has requested to be recorded or filed; 

  

	 	h.	Filing with the Delaware Secretary of State, Horry County Official Records and Wake County Official Records of a UCC-1 Financing Statement or UCC-3 Financing Statement, as applicable, which each Buyer expressly
authorizes Lender to file; 

  

	 	i.	Execution and delivery to Lender by (i) SmartStop Self Storage, Inc., a Maryland corporation, f/k/a Strategic Storage Trust, Inc. (“SST”), and Strategic Storage Trust II, Inc., a Maryland
corporation (“SST-II” and, together with SST, sometimes hereinafter individually and collectively referred to and jointly and severally obligated as “New Guarantor”) of a Guaranty of Recourse Obligations of Borrower
(“New Guaranty”) in favor of Lender and in form and substance acceptable to Lender, pursuant to which New Guarantor irrevocably guarantees payment for certain matters under the Loan as more specifically set forth in the New Guaranty
and (ii) each Buyer with respect to such Buyer’s Property of an Environmental Indemnity Agreement (“New Indemnity”) in favor of Lender and in form and substance acceptable to Lender, pursuant to which such Buyer shall
indemnify Lender with respect to certain environmental matters as more specifically set forth in the New Indemnity, along with delivery to Lender of such resolutions or certificates of New Guarantor as Lender may require, in form and content
acceptable to Lender; 

  

	 	j.	Delivery to Lender of such resolutions or certificates as Lender may reasonably require, in form and content reasonably acceptable to Lender, authorizing the assumption of the Loan and executed by the appropriate
persons and/or entities on behalf of Buyer and New Guarantor, and a certified copy of each Buyer’s organizational documents and each New Guarantor’s organizational documents, with all amendments, modifications, supplements and restatements
thereto, in form and substance reasonably acceptable to Lender and which, in the case of Buyer, satisfies the requirements set forth in Section 4.1.15 of the Loan Agreement (as amended hereby); 

 

	 	k.	The representations and warranties contained herein are true and correct; 

  

	 	l.	Receipt by Lender of a copy of Buyer’s casualty insurance policy and comprehensive liability insurance policy with respect to the Property, each in form and amount satisfactory to Lender; 

  
 -7- 

	 	m.	Receipt by Lender of a copy of the grant deeds by which title to the Property will be conveyed to Buyer, the bills of sale by which the personal property will be transferred, and the purchase and sale agreement
documenting the sale of the Property to Buyer; 

  

	 	n.	Receipt by Lender of an executed assignment of the purchaser’s interest in the purchase and sale agreement for the Property from the purchaser named therein to Buyer; 

 

	 	o.	Receipt by Lender of an executed Form W-9 for each Buyer; 

  

	 	p.	Receipt by Lender of a copy of a new property management agreement for each Property in form and substance, and with a manager, acceptable to Lender together with an executed assignment of management agreement
acceptable to Lender for each new property management agreement; 

  

	 	q.	Receipt by Lender of an amendment and restatement of the Existing Cash Management Agreement executed by Buyer, to which Buyer’s property manager shall execute a joinder; all of which shall be in form and substance
satisfactory to Lender; 

  

	 	r.	Receipt by Lender of a Certificate from New Guarantor and Buyer certifying to Lender that the current financial position of New Guarantor and Buyer has not significantly deteriorated from that reflected in the most
recent financial statements provided to Lender and Lender’s servicer; 

  

	 	s.	Receipt by Lender of a certificate from Buyer and New Guarantor certifying that the closing funds are being contributed as a capital contribution and are not secured, directly or indirectly, by an interest in Buyer or
in any collateral assigned to Lender under the Loan; 

  

	 	t.	Receipt by Lender of opinions with respect to Buyer and New Guarantor regarding due formation, valid existence, good standing, due authorization, due execution and enforceability of this Agreement and each of the other
documents, instruments and agreements executed in connection herewith; each of which shall be satisfactory to Lender; 

  

	 	u.	Receipt by Lender of an opinion from Lender’s counsel that the transactions contemplated by this Agreement will not result in a significant modification of the Loan within the meaning of the applicable U.S.
Treasury Regulations or otherwise result in any adverse tax consequences to the Lender under the applicable “real estate mortgage investment conduit” statutes and regulations; 

 

	 	v.	Payment of the assumption fee and the preferred equity consent fee provided for in Section 2 above; 

  
 -8- 

	 	w.	Borrower’s reimbursement to Lender of Lender’s costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby, including, without limitation, title insurance costs,
escrow and recording fees, attorneys’ fees, appraisal, engineers’ and inspection fees and documentation costs and charges, whether such services are furnished by Lender’s employees, agents or independent contractors;

  

	 	x.	Receipt by Lender prior to closing of a South Carolina Notice of Waiver of Appraisal Rights executed by Buyer and New Guarantor in form and content acceptable to Lender; 

 

	 	y.	Execution and delivery to Lender by SSTI Preferred Investor, LLC, a Delaware limited liability company, of a Preferred Partner Agreement, which shall be in form and substance satisfactory to Lender (the
“Preferred Partner Agreement”); 

  

	 	z.	Receipt by Lender of a copy of the term sheet with respect to the Preferred Equity Investment (as defined in the Preferred Partner Agreement), which shall be certified to Lender by SST-II and shall be in the form
previously approved by Lender (herein, the “Preferred Units Term Sheet”); and 

  

	 	aa.	Copies of the fully-executed Preferred Equity Documents (as defined in the Preferred Partner Agreement), which shall be in form and content acceptable to Lender. 

 

	4.	Effective Date. The effective date of this Agreement shall be the date on which Lender confirms that all conditions precedent have been satisfied and authorizes closing of the transactions contemplated by
this Agreement (the “Effective Date”). 

  

	5.	Assumption. Except with respect to the Guaranty, Existing Environmental Indemnity, the Existing Assignment of Management Agreement and the Existing Cash Management Agreement (collectively, the
“Excluded Loan Documents”), effective as of the Effective Date (i) the applicable Buyer hereby assumes and agrees to pay when due all sums due or to become due or owing under the Note, the Security Instrument applicable to such
Buyer’s Property and the other Loan Documents, as amended hereby, and (ii) Buyer shall hereafter faithfully perform all of Borrower’s obligations under and be bound by all of the provisions of the Loan Documents, as amended hereby,
and (iii) Buyer assumes all liabilities of Borrower under the Loan Documents, as amended hereby, as if Buyer were an original signatory thereto. The execution of this Agreement by each applicable Buyer shall be deemed its execution of the Note,
the Security Instrument applicable to such Buyer’s Property and the other Loan Documents, exclusive of the Excluded Loan Documents. Notwithstanding anything to the contrary contained in this Agreement, in no event shall Buyer have any liability
under the Excluded Loan Documents. 

  

	6.	 Full Release of Borrower and Guarantor; Release of Lender. Lender hereby fully releases (on the Effective Date) Borrower and Guarantor
from liability under the Loan Documents other than this Agreement; provided, however, with respect to Section 14 of the Note and Section 11.22 of the Loan Agreement and with respect to the Guaranty and

  
 -9- 

	 	
the Environmental Indemnity, the aforementioned release applies only to acts or omissions occurring on or after the Effective Date. Borrower hereby fully releases (on the Effective Date) Lender
and any servicer(s) of the Loan from any liability of any kind to Borrower arising out of or in connection with the Loan or the Loan Documents other than this Agreement. 

 

	7.	Representations and Warranties. 

  

	 	a.	Assignment. Borrower and Buyer each for themselves hereby represents and warrants to Lender that Borrower has irrevocably and unconditionally transferred and assigned to Buyer all of Borrower’s right, title
and interest in and to: 

  

	 	i.	The Property and the Collateral; 

  

	 	ii.	The Loan Documents; 

  

	 	iii.	All leases related to the Property or the Collateral; 

  

	 	iv.	Intentionally Omitted; 

  

	 	v.	All reciprocal easement agreements, operating agreements, and declarations of conditions, covenants and restrictions related to the Property, if any, and only to the extent that any such instrument runs with the land;

  

	 	vi.	All prepaid rents and security deposits, if any, held by Borrower in connection with leases of any part of the Property or the Collateral; and 

 

	 	vii.	All funds, if any, deposited in impound accounts held by or for the benefit of Lender pursuant to the terms of the Loan Documents. 

Borrower and Buyer each for themselves hereby further represents and warrants to Lender that no consent to the transfer of the Property and the
Collateral to Buyer is required under any agreement to which Borrower or Buyer is a party, including, without limitation, under any lease, operating agreement, mortgage or security instrument (other than the Loan Documents), or if such consent is
required, that the parties have obtained all such consents. 
  

	 	b.	No Defaults. Buyer and Borrower each for themselves hereby represents and warrants, that no default, event of default, breach or failure of condition has occurred, or would exist with notice or the lapse of time
or both, under any of the Loan Documents, as modified by this Agreement, and all representations and warranties herein and in the other Loan Documents made by such party are true and correct in all material respects. 

 

	 	c.	 Loan Documents. Buyer represents and warrants to Lender that Buyer has actual knowledge of all terms and conditions of the Loan Documents, and
agrees that Lender has no obligation or duty to provide any information to Buyer regarding 

  
 -10- 

	 	
the terms and conditions of the Loan Documents. Buyer further agrees that all representations, agreements and warranties in the Loan Documents regarding Borrower, its status, authority, financial
condition and business shall apply to Buyer as well as to Borrower, as though Buyer were the borrower originally named in the Loan Documents. Buyer further understands and acknowledges that, except as expressly provided in a writing executed by
Lender, Lender has not waived any right of Lender or obligation of Borrower or Buyer under the Loan Documents and Lender has not agreed to any modification of any provision of any Loan Document or to any extension of the Loan. 

 

	 	d.	Financial Statements. Buyer represents and warrants to Lender that the financial statements of Buyer, of each member of Buyer and of each New Guarantor, if any, previously delivered by Buyer or any of such
parties to Lender: (i) are materially complete and correct; (ii) present fairly the financial condition of each of such parties; and (iii) have been prepared in accordance with generally accepted accounting principles consistently
applied or other accounting standards approved by Lender. Buyer further represents and warrants to Lender that, since the date of such financial statements, there has been no material adverse change in the financial condition of any of such parties,
nor have any assets or properties reflected on such financial statements been sold, transferred, assigned, mortgaged, pledged or encumbered except as previously disclosed in writing by Buyer to Lender and approved in writing by Lender.

  

	 	e.	Reports. Buyer represents and warrants to Lender that all reports, documents, instruments and information delivered to Lender by Buyer in connection with Buyer’s assumption of the Loan: (i) are correct
and sufficiently complete to give Lender accurate knowledge of their subject matter; and (ii) do not contain any misrepresentation of a material fact or omission of a material fact which omission makes the provided information misleading.

  

	 	f.	Principal Place of Business. Buyer represents and warrants that its state of formation or organization is Delaware. Buyer shall not change its name or State of formation or organization without providing thirty
(30) days prior written notice to Lender. 

  

	8.	Waiver of Acceleration and Consent to Sale. Lender hereby agrees that it shall not exercise its right to cause all sums secured by the applicable Security Instrument to become immediately due and
payable because of the conveyance of the Property and the Collateral from Borrower to Buyer; provided, however, Lender reserves its right under the terms of the applicable Security Instrument or any other Loan Document to accelerate all principal
and interest in the event of any subsequent sale, transfer, encumbrance or other conveyance of the applicable Property encumbered by such Security Instrument, the Collateral or any interest in Buyer, except as permitted by the Loan Documents.
Furthermore, Lender hereby consents to the sale of the Property to Buyer and the assumption of the Loan by Buyer, upon the terms and conditions set forth herein. 

  
 -11- 

	9.	Hazardous Materials. Without in any way limiting any other provision of this Agreement, Buyer and Borrower each for themselves expressly reaffirm as of the date hereof, and Buyer reaffirms continuing
hereafter: (a) each and every representation and warranty in the Loan Documents respecting “Hazardous Materials”; and (b) each and every covenant and indemnity in the Loan Documents respecting “Hazardous
Materials.” 

  

	10.	Multiple Parties. If more than one person or entity has signed this Agreement as Buyer or Borrower, then all references in this Agreement to Buyer or Borrower shall mean each and all of the persons so
signing, as applicable. The liability of each Buyer entity shall be joint and several with each other Buyer entity. 

  

	11.	Confirmation of Security Interest. Nothing contained herein shall affect or be construed to affect any lien, charge or encumbrance created by any Loan Document or the priority of that lien, charge or
encumbrance. All assignments and transfers by Borrower to Buyer are subject to any security interest(s) held by Lender. Nothing herein shall be construed to constitute a novation of the Loan or of any of the Loan Documents and any attempt to
construe this Agreement as a novation is contrary to the express intent of the parties. 

  

	12.	Notices. All notices to be given to Buyer pursuant to the Loan Documents shall be addressed as follows: 

SST II 5012 New Bern AVE, LLC 

SST II 150 Airport BLVD, LLC 

SST II 338 Jesse ST, LLC 
 SST
II 120 Centrewest CT, LLC 
 SST II 4630 Dick Pond RD, LLC 

111 Corporate Drive, Suite 120 

Ladera Ranch, California 92694 

Attention: H. Michael Schwartz 

Facsimile: (949) 429-6606 
  

	13.	Integration; Interpretation. The Loan Documents, including this Agreement, contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters contemplated
herein and supersede all prior negotiations. The Loan Documents shall not be modified except by written instrument executed by Lender and Buyer. Any reference in any of the Loan Documents to the Property or the Collateral shall include all or any
parts of the Property or the Collateral. 

  

	14.	Successors and Assigns. This Agreement is binding upon and shall inure to the benefit of the heirs, successors and assigns of the parties but subject to all prohibitions of transfers contained in any Loan
Document. 

  

	15.	Attorneys’ Fees; Enforcement. 

  
 -12- 

	 	a.	If any attorney is engaged by Lender to enforce, construe or defend Buyer’s breach of any provision of this Agreement, or as a consequence of any default by Buyer under or breach of this Agreement, with or without
the filing of any legal action or proceeding, Buyer shall pay to Lender, upon demand, the amount of all attorneys’ fees and costs reasonably incurred by Lender in connection therewith, together with interest thereon from the date of such demand
at the rate of interest applicable to the principal balance of the Note as specified therein. 

  

	 	b.	If any attorney is engaged by Lender to enforce, construe or defend Borrower’s breach of any provision of this Agreement, or as a consequence of any default by Borrower under or breach of this Agreement, with or
without the filing of any legal action or proceeding, Borrower shall pay to Lender, upon demand, the amount of all attorneys’ fees and costs reasonably incurred by Lender in connection therewith, together with interest thereon from the date of
such demand at the rate of interest applicable to the principal balance of the Note as specified therein. 

  

	16.	One-Time Right of Transfer of Property. The parties acknowledge that Section 8.6 of each Security Instrument provides that Lender shall, one (1) time only, consent to the voluntary sale or
exchange of all of the Property, all subject, however, to the terms and conditions set forth therein. The parties agree that this Agreement and the actions to be taken as contemplated herein shall constitute such one consent and that hereafter,
Lender shall not be required to consent to any further such sale or exchange. 

  

	17.	Impounds. Buyer acknowledges and agrees that any right that Lender has pursuant to the Loan Documents to adjust impounds shall continue in force and effect from and after the Effective Date, as therein
provided. 

  

	18.	Miscellaneous. Time is of the essence of each term of the Loan Documents, including this Agreement. If any provision of this Agreement or any of the other Loan Documents shall be determined by a court of
competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed therefrom and the remaining parts shall remain in full force as though the invalid, illegal, or unenforceable portion had not been a part thereof.

  

	19.	Loan Document Modifications. 

  

	 	a.	The following defined terms in Article 1 of the Loan Agreement are amended and restated as follows: 

“Borrower” means, individually and collectively, SST II 5012 NEW BERN AVE, LLC, a Delaware limited liability company (the
“New Bern Buyer”), SST II 150 AIRPORT BLVD, LLC, a Delaware limited liability company (the “Airport Buyer”), SST II 338 JESSE ST, LLC, a Delaware limited liability company (the “Jesse Street
Buyer”), SST II 120 CENTREWEST CT, LLC, a Delaware limited liability company (the “Centrewest Buyer”) , and SST II 4630 DICK POND RD, LLC, a Delaware limited liability company (“Dick Pond Buyer”). 

  
 -13- 

 “Environmental Indemnity Agreement” means, individually and collectively, those
certain five (5) Environmental Indemnity Agreements, each dated as of November 3, 2014, executed by a Borrower with respect to its Property in favor of Lender. 

“Guarantor” shall mean, individually and collectively, jointly and severally, SmartStop Self Storage, Inc., a Maryland
corporation, f/k/a Strategic Storage Trust, Inc., and Strategic Storage Trust II, Inc., a Maryland corporation, or any other person or Persons that now or hereafter guarantees any of Borrower’s obligations under any Loan Document. 

“Guaranty” shall mean that certain Guaranty of Recourse Obligations dated as of November 3, 2014 from Guarantor for the
benefit of Lender. 
 “Manager” shall mean Strategic Storage Property Management II, LLC, or any other manager approved by
Lender and, if and to the extent applicable, the Rating Agencies in accordance with the terms and conditions of the Loan Documents. 
  

	 	b.	Section 4.1.15 of the Loan Agreement is deleted in its entirety and replaced with the text set forth on Schedule I attached hereto. 

 

	 	c.	With respect to Section 5.1(a) of the Loan Agreement, the deductible amounts for flood insurance and wind storm insurance shall be as follows: 

 

					
		  	Flood:	  	Not to exceed $100,000; provided, however, if any portion of the improvements at any time in the future becomes part of a federally designated special flood hazard area, the deductible shall be decreased to the maximum amount
permitted under FEMA requirements.
			
		  	Wind storm:	  	For each Property located in North Carolina, the deductible shall not exceed $25,000
			
		  		  	For each Property located in South Carolina, the deductible shall be 5% (minimum $250,000)

 Notwithstanding any provision to the contrary contained in any of the documents securing or evidencing the
Note, the Mortgagor shall not be required to obtain casualty insurance on the Property located in South Carolina in excess of the replacement cost of the buildings or appurtenances on such Property in violation of § 29-3-70 of the South
Carolina Code. 

  
 -14- 

	 	d.	The parties acknowledge and agree that the references to “this Security Instrument” in Section 8.2 of the Loan Agreement are intended to be “the applicable Security Instrument”.

  

	 	e.	All references to “Registered Agent for Service of Process” in the Loan Documents shall be deemed to be references to: 

The Corporation Trust Company 

Corporate Trust Center 
 1209
Orange Street 
 Wilmington, DE 19801 
  

	 	f.	Without limiting the generality of any provision of this Agreement or any Loan Document, each Buyer expressly affirms the provisions of Section 11.30 of the Loan Agreement. 

 

	 	g.	Section 4.1.7(a)(iii) of the Loan Agreement is hereby modified to provide that the annual operating statement of each Property referenced therein shall be provided by Buyer to Lender within ninety (90) days
after the close of each fiscal year of Buyer. 

  

	 	h.	Section 4.1.7(a)(iv) of the Loan Agreement is hereby modified to provide that each of the annual balance sheet and profit and loss statement referenced therein shall be provided by Buyer to Lender within ninety
(90) days after the close of each fiscal year of Buyer. 

  

	 	i.	The last paragraph of Section 4.1.7(a) of the Loan Agreement is hereby modified to provide that any such financial statement requested by Lender thereunder, shall be provided to Lender no later than ninety
(90) days after the end of the fiscal year of such Guarantor or Indemnitor, as applicable. 

  

	20.	Special Use Permit. 

  

	 	a.	With respect to the 150 Special Use Permit, the parties acknowledge and agree that (a) pursuant to a letter dated December 4, 2013 from the Town of Cary, North Carolina, the date by which the Borrower must
complete the work described in such letter, in the 150 Special Use Permit and in Section 8.1 of the Loan Agreement has been extended to December 31, 2014, and (b) Lender and Borrower previously extended the date “December 31,
2013” in Section 8.1 of the Loan Agreement to December 31, 2014. 

  

	 	b.	Without limiting the generality of the foregoing or any provision of the Loan Documents, Borrower represents and warrants to Lender that the 150 Special Use Permit is in full force and effect. 

 

	 	c.	 As a further condition precedent to the willingness of Lender to enter into this Agreement, contemporaneously with Buyer’s acquisition of the
Property, 

  
 -15- 

	 	
Borrower and Buyer shall enter into an escrow agreement, in form heretofore approved by Lender, pursuant to which Borrower shall deposit into escrow with Republic Title of Texas, Inc., the sum of
Sixty-One Thousand Two Hundred and no/100 Dollars ($61,200.00) with respect to the performance of the work described in Section 20(a) above. 

  

	21.	Intentionally Omitted. 

  

	22.	Deferred Maintenance. 

  

	 	a.	Within one hundred twenty (120) days after the Effective Date, Buyer shall correct each of the items of deferred maintenance set forth on Schedule II attached to this Agreement. 

 

	 	b.	Such deferred maintenance shall be corrected at Buyer’s sole cost and expense, in a good and workmanlike manner, and in accordance with applicable law. 

 

	 	c.	Within one hundred twenty (120) days after the Effective Date, Buyer shall deliver to Lender evidence satisfactory to Lender that such deferred maintenance items have been corrected. 

 

	23.	Suretyship Waivers. 

  

	 	a.	To the extent that any Buyer is held or deemed to be a guarantor or surety with respect to the obligations of any other Buyer under the Loan Documents(herein, an “Other Buyer”), such Buyer agrees that:

  

	 	i.	Any indebtedness of each Other Buyer to any such Buyer now or hereafter existing (including, but not limited to, any rights to subrogation any such Buyer may have as a result of any payment by such Buyer under any Loan
Document), together with any interest thereon, shall be, and such indebtedness is, hereby deferred, postponed and subordinated to the prior payment in full of the Debt. Until payment in full of the Debt (and including interest accruing on the Note
after the commencement of a proceeding by or against each Other Buyer under the Bankruptcy Code, which interest the parties agree shall remain a claim that is prior and superior to any claim of such Buyer notwithstanding any contrary practice,
custom or ruling in cases under the Bankruptcy Code generally), such Buyer agrees not to accept any payment or satisfaction of any kind of indebtedness of any Other Buyer to such Buyer and hereby assigns such indebtedness to Lender, including the
right to file proof of claim and to vote thereon in connection with any such proceeding under the Bankruptcy Code, including the right to vote on any plan of reorganization. 

 

	 	ii.	 All moneys available to Lender for application in payment or reduction of the Debt may be applied by Lender in such manner and in such amounts

  
 -16- 

	 	
and at such time or times and in such order and priority as Lender may see fit to the payment or reduction of such portion of the Debt as Lender may elect. 

 

	 	iii.	The validity of any Loan Document and the obligations of such Buyer hereunder shall in no way be terminated, affected or impaired (A) by reason of the assertion by Lender of any rights or remedies which it may have
under or with respect to the Note, any Security Instrument, or the other Loan Documents, against any Other Buyer or against the owner of any Property, or (B) by reason of any failure to file or record any of such instruments or to take or
perfect any security intended to be provided thereby, or (C) by reason of the release or exchange of any property covered by any Security Instrument or other collateral for the Loan, or (D) by reason of Lender’s failure to exercise,
or delay in exercising, any such right or remedy or any right or remedy Lender may have hereunder or in respect to any Loan Document, or (E) by reason of the commencement of a case under the Bankruptcy Code by or against any person obligated
under the Note, any Security Instrument or the other Loan Documents, or (F) by reason of any payment made on the Debt or any other indebtedness arising under the Note, any Security Instrument or the other Loan Documents, whether made by each
Other Buyer or any other person, which is required to be refunded pursuant to any bankruptcy or insolvency law; it being understood that no payment so refunded shall be considered as a payment of any portion of the Debt, nor shall it have the effect
of reducing the liability of such Buyer hereunder. It is further understood, that if any Other Buyer shall have taken advantage of, or be subject to the protection of, any provision in the Bankruptcy Code, the effect of which is to prevent or delay
Lender from taking any remedial action against any Other Buyer, including the exercise of any option Lender has to declare the Debt due and payable on the happening of any default or event by which under the terms of the Note, any Security
Instrument or the other Loan Documents, the Debt shall become due and payable, Lender may, as against such Buyer, nevertheless, declare the Debt due and payable and enforce any or all of its rights and remedies against such Buyer provided for
herein. 

  

	 	iv.	To the fullest extent permitted by law, and in addition to, and not in limitation of, any other waivers set forth herein, such Buyer hereby intentionally, irrevocably, unconditionally and freely waives, relinquishes and
agrees not to assert or take advantage of any defense, or make any claim or counterclaim, based upon: 

  

	 	(i)	The incapacity, lack of authority, death or disability of any Other Buyer or any or other person; 

  

	 	(ii)	 Lack of notice of default, demand of performance or notice of acceleration to each Other Buyer or any other party with respect to

  
 -17- 

	 	
the Loan or the obligations guaranteed under any Loan Document unless such notice of default or acceleration is expressly required pursuant to the Loan Documents; 

 

	 	(iii)	The consideration for any Loan Document; 

  

	 	(iv)	The application by any Other Buyer of the proceeds of the Loan for purposes other than the purposes represented by such Other Borrower to Lender or intended or understood by Lender or such Buyer; 

 

	 	(v)	Lender’s election, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code or any successor statute; 

 

	 	(vi)	Any borrowing or any grant of security interest under Section 364 of the Bankruptcy Code; 

  

	 	(vii)	An election of remedies by Lender, even though that election of remedies, such as a non-judicial foreclosure (or Uniform Commercial Code sale) with respect to security (whether such security is real property or personal
property), for a guaranteed obligation, has or may have destroyed such Buyer’s rights of subrogation and reimbursement against any other person including, without limitation, any Other Buyer; 

 

	 	(viii)	Any right to a fair value hearing with respect to any Property under applicable law or otherwise to determine the size of any deficiency under the Loan following a foreclosure sale with respect to such Property;

  

	 	(ix)	All rights and defenses that such Buyer may have because each Other Buyer’s debt is secured by real property. This means, among other things: 

 

	 	(1)	Lender may collect from such Buyer without first foreclosing on any real or personal property collateral pledged by any Other Buyer; 

 

	 	(2)	If Lender forecloses on any real property collateral pledged by each Other Buyer: 

  

	 	(x)	The amount of the Debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price; 

  
 -18- 

	 	(y)	Lender may collect from such Buyer even if Lender, by foreclosing on the real property collateral, has destroyed any right such Buyer may have to collect from each Other Buyer; and 

 

	 	(z)	This is an unconditional and irrevocable waiver of any rights, claims and defenses such Buyer may have because each Other Buyer’s debt is secured by real property. 

(x) Any defense based upon any statute or rule of law which provides that the obligation of surety must be neither larger in
amount nor in other respects more burdensome than that of the principal; 
 (xi) Any duty on the part of Lender to disclose
to such Buyer any facts Lender may now or hereafter know about any Other Buyer, regardless of whether Lender has reason to believe that any such facts materially increase the risk beyond that which such Buyer intends to assume or has reason to
believe that such facts are unknown to such Buyer, or has a reasonable opportunity to communicate such facts to such Buyer, since such Buyer acknowledges that such Buyer is fully responsible for being and keeping informed of the financial condition
of each Other Buyer and of all circumstances bearing on the risk on nonperformance of any obligations hereby guaranteed. 
  

	 	b.	Such Buyer further covenants that the Loan Documents shall remain and continue in full force and effect as to any modification, extension or renewal of the Note, the Loan Agreement, any Security Instrument, or any of
the other Loan Documents, that Lender shall not be under a duty to protect, secure or insure any security or lien provided by any Security Instrument or other such collateral, and that other indulgences or forbearance may be granted under any or all
of such documents, all of which may be made, done or suffered without notice to, or further consent of, such Buyer. 

  

	 	c.	The obligations and liabilities of such Buyer under the Loan Documents shall, to the extent provided therein, survive notwithstanding any termination, satisfaction, assignment, entry of a judgment of foreclosure,
exercise of any power of sale, or delivery of a deed in lieu of foreclosure of any Security Instrument. 

  

	 	d.	Each Buyer expressly waives: (i) any right to be discharged or released in whole or in part by reason of any sale or assignment by each Other Buyer of any collateral, or any portion thereof, whether or not
consented to by Lender and whether or not Lender has any dealings with the transferee; and (ii) if and only to the extent applicable, any rights of such Buyer pursuant to Chapter 26 of the North Carolina General Statutes including North
Carolina General Statute §26-7 or any similar or subsequent law. 

  
 -19- 

	24.	Counterparts. This Agreement may be executed in any number of counterparts, each of which when executed and delivered will be deemed an original and all of which taken together will be deemed to be one and
the same instrument. 

  

	25.	Rental Prepayments. Lender agrees that Buyer shall be entitled to collect prepayments of rental with respect to each Property in an amount not to exceed five percent (5%) of annual gross rentals of
such Property. 

  

	26.	Governing Law. THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND DELIVERED TO LENDER BY BORROWER AND BUYER IN 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, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, 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 AND SECURITY INTERESTS CREATED PURSUANT TO EACH SECURITY INSTRUMENT AND OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND
CONSTRUED ACCORDING TO THE LAW OF THE STATE, COMMONWEALTH OR DISTRICT, AS APPLICABLE, IN WHICH THE RELATED 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 ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF BORROWER AND
BUYER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE LOAN AGREEMENT AND THE NOTE, AND THIS AGREEMENT, THE LOAN AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER OR BUYER ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER’S
OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK 

  
 -20- 

 
GENERAL OBLIGATIONS LAW AND BORROWER AND BUYER EACH WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND
BORROWER AND BUYER EACH HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING AND APPELLATE COURTS FROM ANY THEREOF. 

[SIGNATURES ON NEXT PAGE] 

  
 -21- 

 IN WITNESS WHEREOF, Borrower, Buyer and Lender have caused this Agreement to be duly executed as
of the date first above written. 
  

			
	“LENDER”
	
	U.S. BANK NATIONAL ASSOCIATION, as Trustee for those certain WFRBS Commercial Mortgage Trust 2013-C16, Commercial Mortgage Pass-Through Certificates, Series 2013-C16
		
	By:	 	Wells Fargo Bank, National Association, as Master Servicer under the Pooling and Servicing Agreement dated as of September 1, 2013

 
					
			
		 	By:	 	 /s/ Larry C. Cowling

		 		 	Name: Larry C. Cowling
		 		 	Title: Assistant Vice President

 [SIGNATURES CONTINUED ON NEXT PAGE] 

  
 -22- 

 
			
	“BORROWER”
	
	 FLAGSHIP PROPERTIES III, LLC,
 a
Delaware limited liability company

		
	By:	 	Gator Carolina Manager, LLC,
		 	a Colorado limited liability company

 
					
			
		 	By:	 	 /s/ James E. Powers

		 		 	Name: James E. Powers
		 		 	Title: Manager and Member

 [SIGNATURES CONTINUED ON NEXT PAGE] 

  
 -23- 

 The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a
personal judgment is taken or asked may within thirty days after the sale of the Property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the
amount of any deficiency owing in connection with the transaction. IF AND ONLY TO THE EXTENT APPLICABLE, BUYER HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO
THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE PROPERTY. 
  

			
	“BUYER”
	
	SST II 5012 New Bern AVE, LLC, a Delaware limited liability company
		
	By:	 	Strategic Storage Trust II, Inc.,
		 	 a Maryland corporation,
 its
Manager

 
					
			
		 	By:	 	 /s/ H. Michael Schwartz

		 		 	Name: H. Michael Schwartz
		 		 	Title: President

 [Signatures Continue on Next Page] 

  
 -24- 

 The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a
personal judgment is taken or asked may within thirty days after the sale of the Property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the
amount of any deficiency owing in connection with the transaction. IF AND ONLY TO THE EXTENT APPLICABLE, BUYER HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO
THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE PROPERTY. 
  

			
	SST II 150 Airport BLVD, LLC, a Delaware limited liability company
		
	By:	 	Strategic Storage Trust II, Inc.,
		 	 a Maryland corporation,
 its
Manager

 
					
			
		 	By:	 	 /s/ H. Michael Schwartz

		 		 	Name: H. Michael Schwartz
		 		 	Title: President

 [Signatures Continue on Next Page] 

  
 -25- 

 The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a
personal judgment is taken or asked may within thirty days after the sale of the Property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the
amount of any deficiency owing in connection with the transaction. IF AND ONLY TO THE EXTENT APPLICABLE, BUYER HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO
THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE PROPERTY. 
  

			
	SST II 338 Jesse ST, LLC, a Delaware limited liability company
		
	By:	 	Strategic Storage Trust II, Inc.,
		 	 a Maryland corporation,
 its
Manager

 
					
			
		 	By:	 	 /s/ H. Michael Schwartz

		 		 	Name: H. Michael Schwartz
		 		 	Title: President

 [Signatures Continue on Next Page] 

  
 -26- 

 The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a
personal judgment is taken or asked may within thirty days after the sale of the Property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the
amount of any deficiency owing in connection with the transaction. IF AND ONLY TO THE EXTENT APPLICABLE, BUYER HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO
THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE PROPERTY. 
  

			
	SST II 120 Centrewest CT, LLC, a Delaware limited liability company
		
	By:	 	Strategic Storage Trust II, Inc.,
		 	 a Maryland corporation,
 its
Manager

 
					
			
		 	By:	 	 /s/ H. Michael Schwartz

		 		 	Name: H. Michael Schwartz
		 		 	Title: President

 [Signatures Continue on Next Page] 

  
 -27- 

 The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a
personal judgment is taken or asked may within thirty days after the sale of the Property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the
amount of any deficiency owing in connection with the transaction. IF AND ONLY TO THE EXTENT APPLICABLE, BUYER HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO
THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE PROPERTY. 
  

			
	SST II 4630 Dick Pond RD, LLC, a Delaware limited liability company
		
	By:	 	Strategic Storage Trust II, Inc.,
		 	 a Maryland corporation,
 its
Manager

 
					
			
		 	By:	 	 /s/ H. Michael Schwartz

		 		 	Name: H. Michael Schwartz
		 		 	Title: President

  
 -28- 

 EXHIBIT A 
  

	A.	As of October 29, 2014: 

  

	 	1.	The principal balance outstanding under the Note was $12,630,906.47; 

  

	 	2.	Accrued interest on the Note has been paid through September 30, 2014; and 

  

	 	3.	Accrued but unpaid interest on the Note was $57,840.58. 

  

	 	4.	Lender is holding the following impounds: 

  

					
	 Taxes:
	  	$	132,889.85	  
	 Insurance:
	  	$	54,618.12	  
	 Replacement Reserves:
	  	$	91,850.44	  
	 Completion Repairs:
	  	$	8,125.00	  
	 Upfront Reserve – Jesse St.:
	  	$	60,076.28	  
	 Upfront Reserve – Dick Pond:
	  	$	40,050.42	  

  

	B.	An assumption fee of $31,577.27 is due on execution of the Assumption Agreement by Lender. 

  

	C.	A preferred equity fee of $31,577.27 is due on execution of the Assumption Agreement by Lender. 

  
 EXHIBIT A 

-1-

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