Document:

Exhibit 10.9

 

	
        RECORDING REQUESTED BY AND

        AFTER RECORDING RETURN TO:

         

         

        Carlton Fields

        1201 W. Peachtree Street, NW

        Suite 3000

        Atlanta, Georgia 30309

        Attention: W. Gregory Null, Esq.
	 	Cross Reference: Deed of Trust, Assignment of Leases and Rents and Security Agreement, recorded on February 10, 2016, in Book 4828, Page 2358, of Register of Deeds of Gaston County, North Carolina.

 

Loan Number: 030311707

 

modification,
CONSENT AND ASSUMPTION

AGREEMENT
WITH RELEASE

 

This Modification,
Consent and Assumption Agreement With Release (this “Agreement”) is entered into as of April        ,
2017 by and among MEDALIST FUND I-A, LLC, a Delaware limited liability company (“Seller”), with an address
of 11 S. 12th Street, Suite 401, Richmond, Virginia 23219; MDR FRANKLIN SQUARE, LLC, a Delaware limited liability
company (“Buyer”), with an address of 11 S. 12th Street, Suite 401, Richmond, Virginia 23219; WILLIAM
RICHARD ELLIOTT, with an address at 9 Albemarle Avenue, Richmond, Virginia 23226, and THOMAS EDWARD MESSIER, with an
address at 207 Massie Road, Richmond, Virginia 23221 (collectively, “Original Principal”), and MEDALIST DIVERSIFIED
REIT, INC., a Maryland corporation having an address at 11 S. 12th Street, Suite 401, Richmond, Virginia 23219 (“REIT”
and, together with Original Principal, collectively, “Principal”); and WELLS FARGO BANK, NATIONAL ASSOCIATION,
AS TRUSTEE FOR THE REGISTERED HOLDERS OF DEUTSCHE MORTGAGE & ASSET RECEIVING CORPORATION COMM 2016-COR1 MORTGAGE TRUST COMMERCIAL
MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2016-COR1 (“Lender”), with an address of c/o Midland Loan Services,
a division of PNC Bank, National Association, 10851 Mastin Boulevard, Suite 300, Overland Park, KS 66210, Re: Loan Number 030311707.

 

     

     

    

 

RECITALS

 

A.           Seller
is the owner of certain real property located in Gaston County, North Carolina, commonly known as Franklin Square, which real property
is more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. Such real
property, together with all improvements, fixtures and personal property located thereon, is collectively referred to as the “Property”.

 

B.           Lender
is the owner and holder of certain documents (the “Loan Documents”) evidencing and securing a loan (the “Loan”)
made by Jefferies Loancore, LLC, a Delaware limited liability company (“Original Lender”) to Seller in
the original principal amount of $14,275,000.00, which Loan has been assigned to Lender and which Loan Documents include, without
limitation, the following:

 

(i)          Loan
Agreement, dated as of February 10, 2016, by and between Seller and Original Lender; as amended by Loan Modification Agreement
dated September 14, 2016, executed by Borrower, in favor of JLC Warehouse VII, LLC (“Interim Lender”), as assignee
of Original Lender (collectively, the “Loan Agreement”);

 

(ii)         Promissory
Note (the “Note”), dated as of February 10, 2016, in the original principal amount of $14,275,000.00, executed
by Seller, as maker, in favor of Original Lender;

 

(iii)        Deed
of Trust, Assignment of Leases and Rents and Security Agreement (the “Security Instrument”), dated as of February
10, 2016, executed by Seller in favor of Original Lender, filed for record February 10, 2016 in the Office of the Register of Deeds,
Recorder of Deeds or County Clerk, as applicable, in and for Gaston County, North Carolina (the “Recording Office”)
in Book 4828, at Page 2358, as assigned by Original Lender to Interim Lender pursuant to that certain Assignment and Assumption
of Interest under Deed of Trust, Assignment of Leases and Rents and Security Agreement, dated as of March 3, 2016, filed for record
in the Recording Office on March 17, 2016, in Book 4834, at Page 999, as further assigned by Interim Lender to Original Lender
pursuant to that certain Assignment and Assumption of Interest under Deed of Trust, Assignment of Leases and Rents, and Security
Agreement dated October 20, 2016, recorded in in Book 4902, at Page 1594 of the Recording Office, and as further assigned by Original
Lender to Lender pursuant to that certain Assignment of Deed of Trust, Assignment of Leases and Rents and Security Agreement dated
October 20, 2016, recorded in in Book 4904, at Page 605 of the Recording Office;

 

(iv)        Assignment
of Leases and Rents (the “Assignment of Leases”), dated as of February 10, 2016, executed by Seller in favor
of Original Lender, filed for record February 10, 2016 in the Recording Office in Book 4828, at Page 2380, as assigned by Original
Lender to Interim Lender pursuant to that certain Assignment and Assumption of Interest under Assignment of Leases and Rents, dated
as of March 3, 2016, filed for record in the Recording Office on March 17, 2016, in Book 4834, at Page 1004, as further assigned
by Interim Lender to Original Lender pursuant to that certain Assignment and Assumption of Interest under Assignment of Leases
and Rents dated October 20, 2016, recorded in Book 4902, at Page 1599 of the Recording Office, and as further assigned by Original
Lender to Lender pursuant to that certain Assignment of Assignment of Leases and Rents dated October 20, 2016, recorded in in Book
4904, at Page 610 of the Recording Office;

 

     

     

    

 

(v)         Certain
UCC financing statements naming Seller, as debtor, and Original Lender, as secured party;

 

(vi)        Assignment
of Agreements, Licenses, Permits and Contracts (the “Assignment of Agreements”), dated as of February 10, 2016,
executed by Seller, as maker, in favor of Original Lender;

 

(vii)       Consent
and Subordination of Manager (the “Manager Consent”), dated as of February 10, 2016, executed by Shockoe Commercial
Properties, LLC (“Manager”) and consented to by Seller, in favor of Original Lender;

 

(viii)      Deposit
Account Control Agreement (the “DACA”), dated as of February 10, 2016, among Seller, Original Lender, and Wells
Fargo Bank, National Association;

 

(ix)         Cash
Management Agreement (the “CMA”), dated as of February 10, 2016, among Seller, Original Lender, and Wells Fargo
Bank, National Association;

 

(x)          Certificate
Re “Recycled” Special-Purpose Entity (the “Recycled Entity Certificate”), dated as of February 10,
2016, executed by Seller, in favor of Original Lender;

 

(xi)         Closing
Certificate (the “Closing Certificate”), dated as of February 10, 2016, executed by Seller, in favor of Original
Lender; and

 

(xii)        Guaranty
of Recourse Obligations (the “Initial Guaranty”), dated as of February 10, 2016, executed by William Richard
Elliott and Thomas Edward Messier, in favor of Original Lender.

 

C.           Midland
Loan Services, a division of PNC Bank, National Association (“Servicer”), services the Loan for Lender, as master
servicer, pursuant to that certain Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”).

 

D.           The
Loan has been assigned by Original Lender to Interim Lender, then back to Original Lender, and then to Lender.

 

E.           Seller
and Buyer are parties to a Real Estate Purchase and Sale Agreement dated as of June 1, 2016 (as amended, the “Purchase
Agreement”), pursuant to which the Property is to be transferred to Buyer and Buyer is to assume the Loan (the “Transfer
and Assumption”), and Seller and Buyer have requested that Lender consent to the Transfer and Assumption.

 

F.           Following
the Transfer and Assumption, the Property will be managed by Manager pursuant to the management agreement between Buyer and Manager,
dated on or about the date hereof (the “New Property Management Agreement”).

 

     

     

    

 

G.           Concurrently
herewith, each Principal has executed and delivered to Lender a Guaranty of Recourse Obligations (the “Guaranty”)
dated as of the date hereof, and the Guaranty and this Agreement are also part of the Loan Documents.

 

H.           Capitalized
terms used but not defined herein have the meaning given such terms in the Loan Documents and the New Loan Documents (as hereinafter
defined) (it being understood and agreed that any capitalized term that may be defined in more than one of such documents shall
have the broadest possible meaning; for example, the capitalized term “Event of Default” shall include all events,
conditions and occurrences that are defined, or deemed to be included as or trigger, an “Event of Default” in any such
document).

 

I.           Subject
to the terms and conditions of this Agreement, Lender has agreed to consent to the Transfer and Assumption.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows:

 

1.            CONSENT
TO TRANSFER AND ASSUMPTION. Subject to satisfaction of all of the conditions contained herein, Lender consents to the Transfer
and Assumption as a REIT Transfer pursuant to Section 5.26.2(d) of the Loan Agreement. This consent is strictly limited to the
Transfer and Assumption described in this Agreement. This Agreement shall not constitute a waiver or modification of any requirement
of obtaining Lender’s consent to any future transfer of the Property or any portion thereof or interest therein, any transfer
of any direct or indirect ownership interest in Buyer or change in property management or property management agreement, nor shall
it constitute a modification of the terms, provisions, or requirements in the Loan Documents in any respect except as expressly
provided herein. Buyer specifically acknowledges that any subsequent transfer of any interest in any of the Property or interest
in Buyer in violation of the Loan Documents shall be a default thereunder. The Loan Documents, as modified by this Agreement, are
hereby ratified and, except as expressly modified in this Agreement, remain unmodified and are in full force and effect.

 

2.             LOAN
INFORMATION. The parties hereto agree that as of the date hereof:

 

		(a)	The outstanding principal balance of the Note is $14,275,000.00.

 

		(b)	The interest rate of the Note is a fixed rate of 4.7%
per annum.

 

		(c)	The maturity date of the Note is October 6, 2021.

 

		(d)	The following listed payments are due and payable on
the sixth (6th) day of each and every calendar month as of the date of Closing (as hereinafter defined) and are subject
to change and other terms and conditions set forth in the Loan Agreement:

 

	(i)	$55,910.42	interest installments;

 

     

     

    

 

	(ii)	$17,004.66	tax escrow deposits;
	 	 	 
	(iii)	$1,794.52	insurance escrow deposits;
	 	 	 
	(iv)	$2,796.65	capital expense reserve deposits; and
	 	 	 
	(v)	$5,593.29	rollover reserve deposits.

 

		(e)	The current balance of each escrow account held by Lender with respect to the Loan is:

 

	(i)	$87,499.38	Tax and Insurance Subaccount;
	 	 	 
	(ii)	$36,361.73	Capital Reserve Subaccount;
	 	 	 
	(iii)	$242,179.91	Rollover Reserve Subaccount;
	 	 	 
	(iv)	$200,066.64	Stabilization Subaccount;
	 	 	 
	(v)	$24,308.19	Required Repairs Subaccount;
	 	 	 
	(vi)	$0.00	Operating Expense Subaccount;
	 	 	 
	(vii)	$0.00	Casualty/Condemnation Subaccount;
	 	 	 
	(viii)	$0.00	Security Deposit Subaccount; and
	 	 	 
	(ix)	$0.00	Cash Collateral Subaccount.

 

		(f)	All required payments due through and including April 6, 2017 under the Loan Documents have been
paid.

 

		(g)	There are no defenses or claims of setoffs with respect to any sums or amounts owing under the
Loan Documents.

 

		(h)	Lender is the current owner and holder of the Loan Documents.

 

3.            CONDITIONS.
In addition to any other conditions set forth herein or required by Lender, the following are conditions precedent that must be
satisfied prior to the closing of the Transfer and Assumption (the “Closing”):

 

		(a)	The execution, acknowledgment, delivery and recordation of this Agreement by all of the parties
concurrently with the Closing.

 

		(b)	The execution, delivery and recordation or filing, as applicable, of one or more new financing
statements, or amendments to existing financing statements as required by Lender at Closing.

 

     

     

    

 

		(c)	Buyer’s delivery to Lender of satisfactory evidence that all insurance over the Property
required by the Loan Documents (the “Required Insurance”) is in full force and effect as of the Closing, with
all required premiums paid, and contains a mortgagee’s clause (the “Mortgagee’s Clause”) satisfactory
to Lender in favor of Lender and its successors and/or assigns, c/o Midland Loan Services, Master Servicer, 10851 Mastin Boulevard,
Suite 300, Overland Park, Kansas 66210; re: Loan Number 030311707.

 

		(d)	Buyer’s delivery to Lender of satisfactory evidence that Borrower and Principal have engaged
New York agent for service of process pursuant to the Loan Agreement.

 

		(e)	Lender’s receipt of satisfactory Title Endorsements (hereinafter defined).

 

		(f)	The full release and reconveyance of any liens or monetary encumbrances against the Property (other
than the liens in favor of Lender created pursuant to the Loan Documents and the liens for real property taxes and/or assessments
for 2017 and subsequent years not yet due and payable).

 

		(g)	Buyer’s and Seller’s execution and delivery to Lender of the Settlement Statement (hereinafter
defined) and Lender’s receipt of all of the Required Payments (hereinafter defined).

 

		(h)	Lender’s receipt of the following legal opinions from counsel for Buyer and Principal, each
in form and substance satisfactory to Lender:

 

		(i)	organization, authority and enforceability (and such other matters as Lender may reasonably require);

 

		(ii)	Delaware authority-to-file; and

 

		(iii)	Delaware non-dissolution.

 

		(i)	Lender’s receipt of an IRS W9 form from Buyer, Seller, and any of their affiliates for which
Lender has requested an IRS W-9 form.

 

		(j)	Termination of the DACA and CMA and execution by Borrower and delivery to Lender of a new  Cash
Management Agreement (the “New CMA”) in form and substance approved by Lender and PNC Bank, National Association,
as the deposit bank under the New CMA.

 

		(k)	Execution by Borrower and Manager, and delivery to Lender of a new Assignment and Subordination
of Management Agreement (the “New Manager Consent”) in substance identical to the Manager Consent.

 

		(l)	Execution by Principal and delivery to Lender of a Guaranty of Recourse Obligations in substance
identical to the existing Guaranty.

 

     

     

    

 

		(m)	Execution by Borrower of a new Closing Certificate in substance identical to the existing Closing
Certificate.

 

		(n)	Execution by Buyer and Manager and delivery to Lender of the New Property Management Agreement
containing a 30-day notice to terminate provision and otherwise in form and substance satisfactory to Lender.

 

		(o)	Execution by Seller and delivery to Lender of a termination of the property management agreement
entered into by Seller and Manager.

 

4.            FEES,
PAYMENT AND EXPENSES. Buyer and/or Seller covenants and agrees to pay to Lender at Closing the following (the “Required
Payments”):

 

		(a)	$700,000.00, which represents the H.H. Gregg Escrow Fund.

 

		(b)	Lender’s processing and modification fees.

 

		(c)	Attorneys’ fees for Lender’s attorneys to document and close this Transfer and Assumption.

 

The Required Payments
and any other fees and adjustments due and owing under the Loan Documents or in connection with the Transfer and Assumption shall
be paid in accordance with Lender’s settlement charges statement (the “Settlement Statement”) delivered
at Closing for signature by Buyer and Seller. In addition, at Closing, Buyer and/or Seller shall pay all of Lender’s attorneys’
fees incurred in connection with this Agreement or the Transfer and Assumption in the amount set forth on the Settlement Statement,
which amount shall be deemed a Required Payment pursuant to the terms of this Agreement.

 

5.            TITLE
ENDORSEMENTS. At Closing, Buyer shall (a) cause Chicago Title Insurance Company to issue such endorsements to Lender’s
mortgagee’s title insurance policy (Policy No. 7230700-95266750) in such form as Lender may require (“Title Endorsements”),
including showing that the Buyer is the owner of the Property, changing the effective date of such title policy to the date of
the recordation of this Agreement, and showing that the Loan Documents are in a first lien position, and (b) pay the cost of the
Title Endorsements, any escrow, filing or recording fees applicable to this transaction, and any other costs and expenses incurred
in connection with this Agreement or this transaction, including, without limitation, attorneys’ fees.

 

6.            BUYER’S
ASSUMPTION OF LOAN; FINANCING STATEMENTS. Buyer hereby expressly assumes the obligation to pay the unpaid balance due and
owing on the Loan, all interest thereon as provided in the Note and to pay and perform all other obligations under the Loan Documents,
as modified hereby, with the same force and effect as if Buyer had been specifically named therein as the original maker, borrower,
assignor or grantor, as applicable. Without limiting the generality of the foregoing, Buyer expressly assumes the obligation to
pay all loan installments as they become due and to observe all obligations of the Loan Documents. Buyer’s assumption of
the foregoing obligations (a) is absolute, unconditional and is not subject to any defenses, waivers, claims or offsets, (b) shall
not be affected or impaired by any agreement, condition, statement or representation of any person or entity other than Lender.
Buyer expressly agrees that it has read, approved and will comply with and be bound by all of the terms, conditions, and provisions
contained in the Loan Documents. Buyer specifically agrees that if the Note is recourse, Lender’s remedies shall not in any
respect or extent be limited solely to the Property or any other collateral securing the Loan.

 

     

     

    

 

Buyer and Principal
hereby represent and warrant to Lender and Servicer that all information provided to Lender or Servicer by Buyer or by Principal,
or any of their respective employees, officers, directors, partners, members, managers or representatives, in connection with or
relating to (i) this Agreement or the transactions contemplated hereby or (ii) the Property contains no untrue statement of material
fact and does not omit a material fact necessary in order to make such information not misleading, and the provision of any such
information by Lender or Servicer to any rating agency is expressly consented to by Buyer and Principal and will not infringe upon
or violate any intellectual property rights of any party.

 

Buyer and Principal,
by their execution of this Agreement, jointly and severally, agree to reimburse, defend, indemnify and hold Lender, its officers,
agents, loan servicers (including, without limitation, Servicer) and employees harmless from and against any and all liabilities,
judgments, costs, claims, damages, penalties, expenses, losses or charges (including, but not limited to, all legal fees and court
costs), which may now or in the future be undertaken, suffered, paid, awarded, assessed or otherwise incurred as a result of or
arising out of any breach or inaccuracy of the foregoing representations and warranties of Buyer and Principal or any fraudulent
or tortious conduct of Buyer or Principal in connection with this Agreement or the transactions contemplated hereby, or the Property,
including the misrepresentation of financial data presented to Lender by or on behalf of Buyer or Principal.

 

Buyer hereby authorizes
Lender to file one or more new financing statements, or amendments to existing financing statements, covering fixtures and personal
property collateral included in the Property and covered by the security agreement contained in the Loan Documents, without signature
of Buyer where permitted by law. Buyer acknowledges and agrees that Lender continues to have a security interest in all fixtures,
personal property and other property described in the Loan Documents (the “Collateral”) transferred to Buyer
by Seller and further acknowledges and agrees that Lender shall continue to have a security interest (and is hereby granted a security
interest) in all Collateral whether such Collateral is now owned by Buyer or is hereafter acquired by Buyer.

 

7.            NO
REPRESENTATIONS OF LENDER. The parties hereto agree that (a) Lender has made no representations or warranties, either express
or implied regarding the Property and has no responsibility whatsoever with respect to the Property, including, without limitation,
its value, its condition, or its use, occupancy or status, and (b) no claims relating to the Property, including, without limitation,
its value, its condition, or its use, occupancy or status, will be asserted against Lender or its agents, employees, professional
consultants, affiliated entities, successors or assigns, either affirmatively or as a defense.

 

8.            ENVIRONMENTAL
MATTERS. Buyer agrees, at its sole cost and expense, to keep or cause the Property to be kept free of any hazardous, toxic
or infectious substance, material, gas or waste, including, without limitation, asbestos, petroleum products and underground storage
tanks, which is or becomes regulated by any governmental authority with jurisdiction over the Property or Buyer, or which has been
identified as a toxic cancer-causing, or other hazardous substance (collectively the “Hazardous Materials”),
and to remove or take remedial action with regard to any Hazardous Materials released into the environment at, on or near the Property,
provided that:

 

     

     

    

 

(a)          Any
such removal or remedial action shall be undertaken in a manner so as to minimize any impact on tenants of the Property.

 

(b)          Buyer
shall indemnify Lender for any action taken by Buyer or Lender to comply with this requirement.

 

(c)          In
the event Buyer fails to fully comply satisfy this requirement and fails to cure such failure within 30 days after Lender gives
written notice to Buyer, Lender may, at its sole option, declare the Loan immediately due and payable and/or cause the Hazardous
Materials to be removed from the Property and add all costs incurred in affecting the removal to the balance of the Loan. Buyer
grants to Lender and its agents and employees access to the Property and the license to remove such Hazardous Materials.

 

9.            ENVIRONMENTAL
INDEMNIFICATION. Supplementing the terms of the Loan Documents and any New Loan Documents, Buyer acknowledges and agrees
that it will reimburse, defend, indemnify and hold Lender, its officers, agents, loan servicers and employees harmless from and
against any and all liabilities, claims, damages, penalties, expenditures, losses or charges (including, but not limited to, all
costs of investigation, monitoring, legal fees, remedial response, removal, restoration or permit acquisition) which may now or
in the future, be undertaken, suffered, paid, awarded, assessed or otherwise incurred as a result of:

 

(a)          any
Hazardous Materials existing on, in, above or under the Property at the time of execution of this Agreement or at any time in the
future;

 

(b)          any
investigation, monitoring, cleanup, removal, restoration, remedial response or remedial work undertaken with regard to Hazardous
Materials on, in, above or under the Property.

 

10.          SELLER’S
REPRESENTATIONS, WARRANTIES AND COVENANTS. Seller hereby represents, warrants, and covenants that:

 

		(a)	Seller is the owner of the Property and Seller is duly authorized to execute, deliver and perform
this Agreement.

 

		(b)	Any court or third-party approvals necessary for Seller to enter into, and perform their respective
obligations under, this Agreement have been obtained and are in full force and effect.

 

		(c)	The entities and/or persons executing this Agreement on behalf of Seller are duly authorized to
execute and deliver this Agreement.
	 	 	 

		(d)	This Agreement and the Loan Documents are in full force and effect and the transactions contemplated
therein constitute legal, valid and binding obligations of Seller, enforceable against Seller, in accordance with their
terms, and have not been modified either orally or in writing.

 

     

     

    

 

		(e)	Lender has not waived any requirements of the Loan Documents nor any of Lender’s rights thereunder.

 

		(f)	There is no existing “Event of Default” (as defined in the Loan Documents) or event
or condition that, with the giving of notice or passage of time or both, would constitute an Event of Default.

 

		(g)	All information provided to Lender or Servicer by Seller or by Principal, or any of their respective
employees, officers, directors, partners, members, managers or representatives, in connection with or relating to this Agreement
or the transactions contemplated hereby (including, without limitation, any information relating to the Property delivered to Lender
in connection with the transactions contemplated hereby) contains no untrue statement of material fact and does not omit a material
fact necessary in order to make such information not misleading, and the provision of any such information by Lender or Servicer
to any rating agency is expressly consented to by Seller and Principal and will not infringe upon or violate any intellectual property
rights of any party. Seller and Principal, by their execution of this Agreement, agree, jointly and severally, to reimburse, indemnify
and hold Lender, its officers, agents, loan servicers (including, without limitation, Servicer) and employees harmless from and
against any and all liabilities, judgments, costs, claims, damages, penalties, expenses, losses or charges (including, but not
limited to, all legal fees and court costs), which may now or in the future be undertaken, suffered, paid, awarded, assessed or
otherwise incurred as a result of or arising out of any breach or inaccuracy of the representations and warranties set forth in
this Section 11(g) or any fraudulent or tortious conduct of Seller or Principal in connection with this Agreement or the transactions
contemplated hereby, or the Property, including the misrepresentation of financial data pertaining to the Property presented to
Lender by Seller.

 

		(h)	All taxes and assessments applicable to the Property that are due and payable as of the Closing
have been paid.

 

		(i)	Neither Seller nor Principal is subject to any judgment, order, writ, injunction or consent decree.
There are no actions, suits or proceedings pending or, to its knowledge, threatened (i) against Seller or Principal or against
or involving adverse claims against a substantial part of any of their respective assets, (ii) against or involving the Property
(including, without limitation, any condemnation proceeding), or (iii) which relate to or may affect the Transfer and Assumption
or any of the other transactions contemplated by the Purchase Agreement, the Loan Documents or this Agreement.

 

     

     

    

 

		(j)	Seller’s and Principal’s execution and delivery of, consummation of the transactions
contemplated by, and performance of its respective obligations under, this Agreement will not violate, conflict with or result
in a default under (i) any of its organizational documents, (ii) any law, rule, regulation, order, decree or judgment applicable
to or binding upon Seller, Principal or the Property, or (iii) any agreement or other instrument to which Seller or Principal is
a party or by which the Property is or may be bound or affected.

 

		(k)	Neither Seller nor Principal has any intention to do any of the following prior to the Closing
or within the 180 days following the Closing: (i) seek entry of any order for relief as debtor in a proceeding under the Code
(as hereinafter defined), (ii) seek consent to or not contest the appointment of a receiver or trustee for itself or for all
or any part of its property, (iii) file a petition seeking relief under any bankruptcy, arrangement, reorganization or other
debtor relief laws, or (iv) make a general assignment for the benefit of its creditors.

 

		(l)	The next payment for real property taxes applicable to the Property is due on or before January
5, 2018.

 

		(m)	All representations and warranties in the Purchase Agreement are true and correct.

 

		(n)	Upon consummation of the Transfer and Assumption, Seller shall have no further interest in the
escrow accounts held by Lender and described in subsection 2(e) of this Agreement.

 

		(o)	Neither Seller nor Principal has any setoffs, claims, counterclaims or causes of action of any
kind or nature whatsoever with respect to the Loan Documents or the transactions contemplated hereby or thereby, the administration
or funding of the Loan or with respect to any acts or omissions of Lender, any predecessor holder of the Loan (including, without
limitation, Lender and Interim Lender) or any servicer of the Loan (including, without limitation, Servicer) or any past or present
officers, agents or employees of Lender, any predecessor holder of the Loan (including, without limitation, Original Lender and
Interim Lender) or any servicer of the Loan (including, without limitation, Servicer). Neither Seller nor Principal has any defenses
of any kind or nature whatsoever with respect to its respective obligations under the Loan Documents or this Agreement.

 

		(p)	All representations and warranties referred to herein shall be true as of the date of this Agreement
and the Closing and shall survive the Closing.

 

Lender is entitled to rely, and has relied,
upon these representations, warranties and covenants in the execution and delivery of this Agreement and all other documents and
instruments executed and delivered by Lender in connection with this Agreement.

 

11.          BUYER’S
AND PRINCIPAL’S REPRESENTATIONS, WARRANTIES AND COVENANTS. Buyer and Principal hereby represent, warrant, and covenant
that:

 

		(a)	Buyer was duly formed and is: (i) validly existing, in good standing, and qualified to do business
in the state of its organization; (ii) in good standing and authorized to do business in the state in which the Property is located;
and (iii) a special purpose and single asset entity, which holds no material assets other than the Property, has no material debt
other than the Loan (except for trade payables or accrued expenses in the ordinary course of business) and is engaged in no other
business other than owning and operating the Property.

 

     

     

    

 

		(b)	Buyer and Principal are duly authorized to execute, deliver and perform this Agreement and the
other Loan Documents to which they are, or either of them is, a party.

 

		(c)	Any court or third-party approvals necessary for Buyer or Principal to enter into this Agreement
and the other Loan Documents to which Buyer and/or Principal is a party have been obtained.

 

		(d)	The entities and/or persons executing this Agreement and the other Loan Documents to which Buyer
and/or Principal is a party on behalf of Buyer and/or Principal, as applicable, are duly authorized to execute and deliver this
Agreement.

 

		(e)	This Agreement, the New Loan Documents, and the Loan Documents are in full force and effect and
the transactions contemplated therein constitute valid and binding obligations of Buyer and Principal, as applicable, enforceable
against Buyer and Principal, as applicable, in accordance with their terms and have not been modified either orally or in writing.

 

		(f)	There is no existing Event of Default or event or condition that, with the giving of notice or
passage of time or both, would constitute an Event of Default.

 

		(g)	All taxes and assessments applicable to the Property that are due and payable as of the Closing
have been paid.

 

		(h)	The next payment for real property taxes applicable to the Property is due on or before January
5, 2018.

 

		(i)	Neither Buyer nor Principal is subject to any judgment, order, writ, injunction or consent decree.
There are no actions, suits or proceedings pending or, to the best of Buyer’s and Principal’s knowledge, threatened
(i) against Buyer or Principal or against or involving adverse claims against a substantial part of any of Buyer’s or Principal’s
respective assets; (ii) against or involving the Property (including, without limitation, any condemnation proceeding), or (iii) which
relate to or may affect the Transactions or any of the transactions contemplated by the Purchase Agreement, this Agreement, the
other New Loan Documents or the Loan Documents.

 

		(j)	The assumption of the Loan by Buyer, Buyer’s and Principal’s execution and delivery
of this Agreement and the other New Loan Documents to which it is a party, the consummation of the transactions contemplated thereby,
and the performance of their respective obligations thereunder and under the Loan Documents will not violate, conflict with or
result in a default under (i) any of its organizational documents, (ii) any law, rule or regulation applicable to Buyer or Principal,
or (iii) any order, decree, judgment, agreement or other instrument to which Buyer or Principal is a party or by which Buyer, Principal
or the Property is or may be bound or affected.

 

     

     

    

 

		(k)	All representations and warranties in the Purchase Agreement are true and correct.

 

		(l)	There is no bankruptcy, receivership or insolvency proceeding pending or threatened against Buyer
or Principal.

 

		(m)	Neither Buyer nor Principal has any intention to do any of the following prior to the Closing or
within the 180 days following the Closing: (i) seek entry of any order for relief as debtor in a proceeding under the Code (hereinafter
defined), (ii) seek consent to or not contest the appointment of a receiver or trustee for itself or for all or any part of its
property, (iii) file a petition seeking relief under any bankruptcy, arrangement, reorganization or other debtor relief laws, or
(iv) make a general assignment for the benefit of its creditors.

 

		(n)	All of the Required Insurance is in full force and effect, with all required premiums paid, and
contains the required Mortgagee’s Clause.

 

		(o)	Buyer shall not, and Principal shall not direct, permit or cause Buyer to, take any action under
the operating agreement or other organizational document of Buyer without the prior written consent of Lender to the extent any
such operating agreement or other organizational document requires the written consent of Lender in order to take any such action,
and neither Buyer nor Principal shall permit there to be in effect any amendment or modification to, or elimination of, any requirement
contained in the operating agreement or other organizational document of Buyer that the written consent of Lender be obtained without
first obtaining the written consent of Lender and any such amendment, modification or elimination of such requirement absent the
prior written consent of Lender shall be void ab initio.

 

		(p)	Neither Buyer nor Principal has any defenses, setoffs, claims, counterclaims or causes of action
of any kind or nature whatsoever with respect to this Agreement, the other New Loan Documents, the Assumed Loan Documents or the
transactions contemplated hereby or thereby, the administration or funding of the Loan or with respect to any acts or omissions
of Lender, any predecessor holder of the Loan (including, without limitation, Original Lender and Interim Lender) or any servicer
of the Loan (including, without limitation, Servicer) or any past or present officers, agents or employees of Lender, any predecessor
holder of the Loan (including, without limitation, Original Lender and Interim Lender) or any servicer of the Loan (including,
without limitation, Servicer).

 

		(q)	All representations and warranties referred to herein shall be true as of the date of this Agreement
and the Closing and shall survive the Closing.

 

     

     

    

 

Lender is entitled to rely, and has relied,
upon these representations, warranties and covenants in the execution and delivery of this Agreement and all other documents and
instruments executed and delivered by Lender in connection with this Agreement.

 

12.          RELEASE
OF SELLER. Lender hereby releases Seller from all liability and obligations under the Loan Documents arising from and after
the Closing, including, but not limited to, repayment of the Loan, but excepting, without limitation (i) any environmental or other
damage to the Property occurring prior to the Closing, (ii) any obligations arising from the Purchase Agreement, (iii) any liability
related to or arising from Seller’s acts or omissions occurring prior to the Closing, and (iv) any liability related to or
arising from fraudulent or tortious conduct, including intentional misrepresentation of financial data presented to Lender. In
all cases, the Buyer, Seller, and Principal, rather than Lender, shall bear the burden of proof on the issue of the time at which
an act or event first occurred or an obligation first arose, which is the subject of claimed liability under any of the Loan Documents.
Seller and Original Principal hereby ratify, affirm and reaffirm their respective liability and obligations under the Loan Documents
for acts, events and obligations arising prior to the Closing and acknowledge and agree that such liability and obligations shall
remain in full force and effect after the Closing.

 

13.          RELEASE
OF LENDER. Seller, for itself and for its agents, employees, representatives, officers, directors, general partners, limited
partners, joint shareholders, beneficiaries, trustees, administrators, subsidiaries, affiliates, employees, servants and attorneys,
and Principal, for itself and for its agents, employees, representatives, officers, directors, general partners, limited partners,
members, managers, shareholders, beneficiaries, trustees, administrators, subsidiaries, affiliates, employees, servants and attorneys,
heirs, successors and assigns (collectively, the “Seller Releasing Parties”) jointly and severally release and
forever discharge Lender, Original Lender, Interim Lender, Servicer and each other servicer under the Pooling and Servicing Agreement,
and Wells Fargo Bank, N.A., and their respective predecessors, successors, assigns, managers, partners, directors, officers, employees,
agents, attorneys, administrators, trustees, subsidiaries, affiliates, beneficiaries, shareholders and representatives from all
liabilities, obligations, costs, expenses, claims and damages, at law or in equity, known or unknown, which any of the Seller Releasing
Parties may now or hereafter hold or claim to hold under common law or statutory right, arising in any manner out of the Property,
the Loan, any of the Loan Documents or any of the documents, instruments or any other transactions relating thereto or the transactions
contemplated thereby. Without limiting the generality of the foregoing, this release shall include the following matters: (a) all
aspects of this Agreement and the Loan Documents, any negotiations, demands or requests with respect thereto, and (b) Lender’s
exercise or attempts to exercise any of its rights under this Agreement, any of the Loan Documents, at law or in equity. The Seller
Releasing Parties agree that this release is a full, final and complete release and that it may be pleaded as an absolute bar to
any or all suit or suits pending or which may thereafter be filed or prosecuted by any of the Seller Releasing Parties, or anyone
claiming by, through or under any of the Seller Releasing Parties. The Seller Releasing Parties agree that this release is binding
upon each of them and their respective agents, employees, representatives, officers, directors, general partners, limited partners,
members, managers, shareholders, beneficiaries, trustees, administrators, subsidiaries, affiliates, employees, servants, attorneys,
heirs, successors and assigns.

 

     

     

    

 

Buyer, for itself and
for its agents, employees, representatives, officers, directors, general partners, limited partners, members, managers, shareholders,
beneficiaries, trustees, administrators, subsidiaries, affiliates, employees, servants and attorneys, and Principal, for itself
and for its agents, employees, representatives, officers, directors, general partners, limited partners, joint shareholders, beneficiaries,
trustees, administrators, subsidiaries, affiliates, employees, servants, attorneys, heirs, successors and assigns (collectively,
the “Buyer Releasing Parties”) jointly and severally release and forever discharge Lender, Original Lender,
Interim Lender, Servicer and each other servicer under the Pooling and Servicing Agreement and Wells Fargo Bank, N.A., and their
respective predecessors, successors, assigns, managers, partners, directors, officers, employees, agents, attorneys, administrators,
trustees, subsidiaries, affiliates, beneficiaries, shareholders and representatives from all liabilities, obligations, costs, expenses,
claims and damages, at law or in equity, known or unknown, which arise out of any matters occurring prior to the Closing in connection
with the transactions contemplated hereby. The Buyer Releasing Parties agree that this release is a full, final and complete release
and that it may be pleaded as an absolute bar to any or all suit or suits pending or which may thereafter be filed or prosecuted
by any of the Buyer Releasing Parties, or anyone claiming by, through or under any of the Buyer Releasing Parties. The Buyer Releasing
Parties agree that this release is binding upon each of them and their respective agents, employees, representatives, officers,
directors, general partners, limited partners, members, managers, shareholders, beneficiaries, trustees, administrators, subsidiaries,
affiliates, employees, servants, attorneys, heirs, successors and assigns.

 

14.          REFERENCES
IN THE LOAN DOCUMENTS. Seller, Buyer, Principal, and Lender hereby acknowledge and agree that the terms “Grantee”,
 “Beneficiary”, “Lender” and “Assignee” contained in the Loan Documents shall be deemed to refer
to Lender and its successors and/or assigns. Seller, Buyer, Principal, and Lender further acknowledge and agree that from and after
the date of this Agreement, the terms “Grantor”, “Trustor”, “Borrower” and/or “Assignor”
contained in the Loan Documents shall be deemed to refer to Buyer. This Agreement shall be deemed a “Loan Document”
for all purposes under the Loan Documents.

 

15.          RATIFICATION
AND CONFIRMATION OF THE LOAN. Buyer and Principal agree to perform each and every obligation under the Loan Documents,
as specifically modified by this Agreement, and any other loan documents executed on or about the date of this Agreement for the
purpose of evidencing, securing or otherwise relating to the Loan (the “New Loan Documents”) in accordance with
their respective terms and conditions. Buyer and Principal ratify, affirm, reaffirm, acknowledge, confirm and agree that the Loan
Documents, as specifically modified by this Agreement, remain in full force and effect and, together with any New Loan Documents,
represent legal, valid and binding obligations of Buyer and Principal, as applicable, enforceable against Buyer and Principal,
as applicable, in accordance with their terms. Buyer hereby restates, ratifies and confirms, as of the date hereof, each of the
representations, warranties, consents, acknowledgments, agreements and waivers of Seller under the Loan Documents as if fully set
forth herein; provided, however, it is acknowledged and agreed that for the purpose of the foregoing restatement, ratification
and confirmation all representations and warranties in such Loan Documents that pertain to Seller, shall be deemed to pertain to
Buyer, excluding (i) those personal to Seller and (ii) regarding Seller’s location of formation and/or place of business.
Buyer and Principal agree that neither this Agreement nor any other New Loan Document diminishes, impairs, releases or relinquishes
the liens, powers, titles, security interests and rights securing or guaranteeing payment of the Loan, including the validity or
first priority of the liens and security interests encumbering the Property granted Lender by the Assumed Loan Documents and/or
the New Loan Documents.

 

     

     

    

 

16.          NONWAIVER.
The parties hereto acknowledge and agree that (a) any performance or non-performance of the Loan Documents prior to the date of
this Agreement does not affect or diminish Lender’s ability to require future compliance with the Loan Documents, as modified
by this Agreement and as further modified from time to time in accordance with the terms thereof, and (b) in the future, Lender
will require strict compliance with and performance of the Loan Documents, as modified by this Agreement and as further modified
from time to time in accordance with the terms thereof. Nothing contained herein shall be construed as a waiver of any of Lender’s
rights or remedies with respect to any default or “Event of Default” under this Agreement or any Loan Document.

 

17.          BANKRUPTCY
OF BUYER OR PRINCIPAL. Buyer covenants and agrees that in the event Buyer shall (i) file any petition with any bankruptcy
court or be the subject of any petition under the United States Bankruptcy Code (11 U.S.C. §101 et seq., the “Code”),
(ii) file or be the subject of any petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution,
or similar relief under any present or future federal or state act or law relating to bankruptcy, insolvency, or other relief for
debtors, (iii) have sought or consented to or acquiesced in the appointment of any trustee, receiver, conservator, or liquidator,
or (iv) be the subject of any order, judgment, or decree entered by any court of competent jurisdiction approving a petition filed
against such party for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief
under any present or future federal or state act or law relating to bankruptcy, insolvency, or relief for debtors, Lender shall
thereupon be entitled, and Buyer irrevocably consents, to the entry of an order by a bankruptcy court granting to Lender relief
from any automatic stay imposed by Section 362 of the Code, or otherwise, on or against the exercise of the rights and remedies
otherwise available to Lender as provided in the Loan Documents, this Agreement or as otherwise provided by law or in equity, and
Buyer irrevocably waives its right to object to, attempt to enjoin or otherwise interfere with such relief and the exercise and
enforcement by Lender of its rights and remedies following entry of such order. Without limiting the generality of the immediately
preceding sentence, Buyer agrees that Lender will be entitled to and it consents to immediate relief from the automatic stay imposed
by the Code to allow Lender to take any and all actions necessary, desirable or appropriate to enforce any rights Lender may have
under the Loan Documents, including, but not limited to, the right to possession of the Property, collection of rents, and/or the
commencement or continuation of an action to foreclose Lender’s liens and security interests. Buyer further agrees that the
filing of any petition for relief under the Code which postpones, prevents, delays or otherwise hinders Lender’s efforts
to collect the amounts due under the Note or to liquidate any of the collateral therefor shall be deemed to have been filed in
bad faith and, therefore, shall be subject to prompt dismissal or conversion to a liquidation case under the Code upon motion therefor
by Lender. Further, Buyer agrees that it will not seek, apply for or cause the entry of any order enjoining, staying, or otherwise
prohibiting or interfering with Lender’s obtaining an order granting relief from the automatic stay and enforcement of any
rights which Lender may have under the Loan Documents, including, but not limited to, Lender’s right to possession of the
Property, collection of rents and/or the commencement or continuation of an action to foreclose Lender’s liens and security
interests under the Loan Documents.

 

     

     

    

 

Principal covenants
and agrees that in the event Principal shall (i) file any petition with any bankruptcy court or be the subject of any petition
under the Code, (ii) file or be the subject of any petition seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution, or similar relief under any present or future federal or state act or law relating to bankruptcy, insolvency,
or other relief for debtors, (iii) have sought or consented to or acquiesced in the appointment of any trustee, receiver, conservator,
or liquidator, or (iv) be the subject of any order, judgment, or decree entered by any court of competent jurisdiction approving
a petition filed against such party for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or
similar relief under any present or future federal or state act or law relating to bankruptcy, insolvency, or relief for debtors,
Lender shall thereupon be entitled, and Principal irrevocably consents, to the entry of an order by a bankruptcy court granting
to Lender relief from any automatic stay imposed by Section 362 of the Code, or otherwise, on or against the exercise of the rights
and remedies otherwise available to Lender as provided in the Loan Documents, this Agreement or as otherwise provided by law or
in equity, and Principal irrevocably waives its right to object to, attempt to enjoin or otherwise interfere with such relief and
the exercise and enforcement by Lender of its rights and remedies following entry of such order. Without limiting the generality
of the immediately preceding sentence, Principal agrees that Lender will be entitled to and it hereby consents to immediate relief
from the automatic stay imposed by the Code to allow Lender to take any and all actions necessary, desirable or appropriate to
enforce any rights Lender may have under the Loan Documents, including, but not limited to, the right to possession of the Property,
collection of rents, and/or the commencement or continuation of an action to foreclose Lender’s liens and security interests.
Principal further agrees that the filing of any petition for relief under the Code which postpones, prevents, delays or otherwise
hinders Lender’s efforts to collect the amounts due under the Note or to liquidate any of the collateral therefor shall be
deemed to have been filed in bad faith and, therefore, shall be subject to prompt dismissal or conversion to a liquidation case
under the Code upon motion therefor by Lender. Further, Principal agrees that it will not seek, apply for or cause the entry of
any order enjoining, staying, or otherwise prohibiting or interfering with Lender’s obtaining an order granting relief from
the automatic stay and enforcement of any rights which Lender may have under the Loan Documents, including, but not limited to,
Lender’s right to possession of the Property, collection of rents and/or the commencement or continuation of an action to
foreclose Lender’s liens and security interests under the Loan Documents.

 

18.          COMPLIANCE
WITH INTEREST LAW. It is the intention of the parties hereto to conform strictly to any present or future law which has
application to the interest and other charges under the Loan Documents (the “Interest Law”). Accordingly, notwithstanding
anything to the contrary in the Loan Documents, the parties hereto agree that the aggregate amount of all interest or other charges
taken, reserved, contracted for, charged or received under the Loan Documents or otherwise in connection with the Loan shall under
no circumstances exceed the maximum amount of interest allowed by the Interest Law. If any excess interest is provided for in the
Loan Documents, then any such excess shall be deemed a mistake and canceled automatically and, if theretofore paid, shall be credited
against the indebtedness evidenced and secured by the Loan Documents (the “Indebtedness”) (or if the Indebtedness
shall have been paid in full, refunded by Lender), and the effective rate of interest under the Loan Documents shall be automatically
reduced to the maximum effective contract rate of interest that Lender may from time to time legally charge under the then applicable
Interest Law with respect to the Loan. To the extent permitted by the applicable Interest Law, all sums paid or agreed to be paid
to Lender for the use, forbearance or detention of the Indebtedness shall be amortized, prorated, allocated and spread throughout
the full term of the Loan.

 

     

     

    

 

19.          FURTHER
ASSURANCES. The parties hereto agree to do any act or execute any additional documents required by Lender, from time to
time, to correct errors in the documenting of the Transfer and Assumption, to effectuate the purposes of this Agreement or to better
assure, convey, assign, transfer, perfect or confirm unto Lender the property and rights intended to be given it in the Loan Documents
and the New Loan Documents.

 

20.          LIABILITY.
If any party hereto consists of more than one person, (a) the obligations and liabilities of each such person and/or entity hereunder
shall be joint and several, (b) each of the representations, covenants and agreements of such party shall be deemed made by each
person and/or entity comprising such party and (c) each reference to such party shall be deemed a reference to each person and/or
entity comprising such party. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
heirs, legal representatives, successors and assigns forever.

 

21.          SEVERABILITY.
If any term, covenant or condition of this Agreement is held to be invalid, illegal or unenforceable in any respect, this Agreement
shall be construed without such term, covenant or condition and the validity or enforceability of the remaining terms, covenants
or conditions shall not in any way be affected.

 

22.          APPLICABLE
LAW; JURISDICTION. This Agreement shall be governed and construed in accordance with the laws of the state of New York.
The parties hereto submit to personal jurisdiction in the state courts located in said state and the federal courts of the United
States of America located in said state for the enforcement of any obligations hereunder and waive any and all personal rights
under the law of any other state to object to jurisdiction within such state for the purposes of any action, suit, proceeding or
litigation to enforce such obligations.

 

23.          NO
RESTRICTIONS ON PERFORMANCE. The execution and delivery of this Agreement and compliance with the provisions hereof, will
not conflict with, or constitute a breach of or a default under any agreement or other instrument to which any party hereto is
a party or by which it is bound.

 

24.          DEFINITIONS.
Unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein, words used in this Agreement
(including pronouns) shall include the corresponding masculine, feminine or neuter forms, and the singular form of such words shall
include the plural and vice versa. The words “included”, “includes” and “including” shall each
be deemed to be followed by the phrase, “without limitation.” The words “herein”, “hereby”,
 “hereof”, and “hereunder” shall each be deemed to refer to this entire Agreement and not to any particular
paragraph, article or section hereof. Notwithstanding the foregoing, if any law is amended so as to broaden the meaning of any
term defined in it, such broader meaning shall apply subsequent to the effective date of such amendment. Where a defined term derives
its meaning from a statutory reference, any regulatory definition is broader than the statutory reference and any reference or
citation to a statute or regulation shall be deemed to include any amendments to that statute or regulation and judicial and administrative
interpretations of it.

 

     

     

    

 

25.          SECURITIES
ACT OF 1933. Neither Seller nor Buyer nor any agent acting for any of them has offered the Note or any similar obligation
for sale to or solicited any offers to buy the Note or any similar obligation from any person or party other than Lender, and neither
Seller nor Buyer nor any agent acting for any of them will take any action which would subject the sale of the Note to the provisions
of Section 5 of the Securities Act of 1933, as amended.

 

26.          COMPLIANCE
WITH ERISA. As of the date of this Agreement, neither Seller, Buyer nor Principal maintains any employee benefit plan which
require compliance with ERISA. If at any time Seller, Buyer or Principal shall institute any employee benefit plans, they shall
at all times comply with the requirements of ERISA.

 

27.          SOLE
DISCRETION OF LENDER. Wherever pursuant to this Agreement, Lender exercises any right given to it to approve or disapprove,
or any arrangement or term is to be satisfactory to Lender, Lender’s decision to approve or disapprove or to decide that
arrangements or terms are satisfactory or not satisfactory 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.

 

28.          HEADINGS,
ETC. The headings and captions of various paragraphs of this Agreement are for convenience of reference only and are not
to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

 

29.          COUNTERPARTS.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which
when taken together shall constitute one and the same agreement.

 

30.          INTEGRATION,
SURVIVAL. This Agreement, any New Loan Documents, and the Loan Documents embody the entire agreement by and between the
parties hereto with respect to the Loan, and any and all prior correspondence, discussions or negotiations are deemed merged therein.
Except as otherwise specifically provided herein, all obligations of any party contained in this Agreement, the New Loan Documents
or the Loan Documents shall survive the Closing, and Lender hereby preserves all of its rights against all persons or entities
and all collateral securing the Loan, including, without limitation, the Property.

 

31.          NO
ORAL CHANGE. This Agreement, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged
or terminated orally or by any act or failure to act on the part of any party hereto, 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.
In addition, nothing contained in any document submitted for Lender’s review, including, without limitation any organizational
documents of Buyer, Principal or any of their general partners, managers/members or officers, shall modify, amend, waive, extend,
change, discharge or terminate any term or provision of the Loan Documents or constitute Lender’s consent to any matter in
the Loan Documents requiring Lender’s consent unless and until such time, if any, as an agreement specifically allowing such
modification, amendment, waiver, extension, change discharge or termination or consenting to such matter has been executed in writing
by Lender.

 

     

     

    

 

32.          NOTICES.
Except as otherwise specified herein, any notice, consent, request or other communication required or permitted hereunder shall
be in writing and shall be deemed properly given if delivered in accordance with the notice requirements contained in the Loan
Documents using the address for a party hereto set forth at the top of the first page of this Agreement. Any notices or other communications
required or permitted under the Loan Documents shall be provided in accordance with the requirements therefor as set forth in the
Loan Documents; provided, however, that from and after the date hereof the addresses of Lender and Buyer (identified as “Borrower”
in the Security Instrument), shall, subject to change as provided in the Loan Documents, be as set forth at the top of the first
page of this Agreement.

 

33.          WAIVER
OF JURY TRIAL. THE PARTIES HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED ON THE LOAN OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE NEW LOAN DOCUMENTS,
OR THE LOAN DOCUMENTS, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF ANY PARTY
HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER’S CONSENT TO THE TRANSFER AND ASSUMPTION.

 

34.          INSURANCE.         At
all times, Buyer shall comply with all terms of the Assumed Loan Documents, including without limitation, the insurance requirements
of the Security Instrument. Although Lender may accept certain evidence of insurance for purposes of closing the Transactions,
Lender or its servicer (including, without limitation, Servicer) may at any time and from time to time request additional insurance
information from Buyer to ensure or monitor Buyer’s compliance with the insurance provisions of the Security Instrument
and may request that Buyer provide such coverages as Lender or its servicer (including, without limitation, Servicer) may require
consistent with the terms of the Security Instrument. By entering into this Agreement, Lender specifically does not waive or modify
any of the insurance requirements under the Security Instrument nor any of the remedies provided therein for failure to secure
such required insurance coverage. Further, Buyer agrees that, in addition to any other insurance requirements set forth in the
Security Instrument, any coverages obtained by Buyer shall not include any exclusions for terrorism.

 

35.          RESERVES
AND IMPOUNDS. Seller shall and does hereby assign to Buyer and its successors and assigns all of Seller’s right,
title and interest in and to the Cash Management Accounts (as defined in the Loan Agreement) and all other accounts that may have
been established with Lender (together with all funds held therein) pursuant to the Loan Documents, and Lender and Wells Fargo,
National Association are hereby released from any further responsibility or liability of any nature to Seller in connection with
any such Cash Management Accounts and other accounts. Any request by Buyer for disbursement from such Cash Management Accounts
made in accordance with the Loan Agreement must be for costs incurred solely by Buyer on or after the Effective Date.

 

     

     

    

 

36.          MODIFICATION.
The parties hereto do hereby modify and amend the Loan Agreement as follows:

 

(a)          In
the definition of “Permitted Transfer” in Section 1.1 of the Loan Agreement, new subsections (vi) and (vii) are hereby
inserted to read: “ (vi) any Transfer of a direct or indirect interest in any Person listed on a nationally or internationally
recognized stock exchange or stock quotation system, or (vii) the issuance of limited partnership interests in Medalist Diversified
Holdings, L.P., a Delaware limited partnership, as the wholly owned subsidiary of the REIT and the sole member of Buyer if
and to the extent such issuance satisfies the provisions of subsection (iv) of this definition of Permitted Transfer.”

 

(b)          The
following definitions are hereby inserted in Section 1.1 of the Loan Agreement to appear alphabetically along with the other definitions
therein:

 

“Anti-Terrorism
Laws: any Laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money laundering
or bribery, and any regulation, order, or directive promulgated, issued or enforced pursuant to such Laws, all as amended, supplemented
or replaced from time to time.

 

Cash
Management Agreement: shall mean that certain Cash Management Agreement, dated as of April __, 2017, by and among MDR Franklin
Square, LLC, a Delaware limited liability company, as Borrower, Shockoe Commercial Properties, LLC, a Virginia limited liability
company, as Property Manager, PNC BANK, National Association, a national banking association, as the Deposit Bank, and Wells Fargo
Bank, National Association, as Trustee for the Registered Holders of Deutsche Mortgage & Asset Receiving Corporation COMM 2016-COR1
Mortgage Trust Commercial Mortgage Pass-Through Certificates Series 2016-COR1, as Lender. From and after the date hereof, any and
all references in this Agreement and any of the other Loan Documents to the Clearing Account Agreement and/or the Deposit Account
Agreement shall be deemed and construed to mean the Cash Management Agreement.

 

Cash
Management Account: shall mean the account established by Borrower with PNC Bank, National Association, for the benefit
of Lender into which all rents and other income from the Property shall be deposited. From and after the date hereof, any and all
references in this Agreement and any of the other Loan Documents to the Clearing Account and/or the Deposit Account shall be deemed
and construed to mean the Cash Management Account.

 

Covered
Entity: (a) each Borrower, each of Borrower's Subsidiaries, all Guarantors and all pledgors of Collateral and (b) each
Person that, directly or indirectly, is in control of a Person described in clause (a) above. For purposes of this definition,
control of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding
equity interests having ordinary voting power for the election of directors of such Person or other Persons performing similar
functions for such Person, or (y) power to direct or cause the direction of the management and policies of such Person whether
by ownership of equity interests, contract or otherwise.

 

     

     

    

 

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

 

Governmental
Body: any nation or government, any state or other political subdivision thereof or any entity, authority, agency, division
or department exercising the executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining
to a government (including any supra-national bodies such as the European Union or the European Central Bank) and any group or
body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial
Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor
or similar authority to any of the foregoing).

 

H.H.
Gregg Disbursement Conditions: shall mean the following: (i) no Event of Default has occurred and is continuing hereunder
and no event has occurred that, with the passing of time or the giving of notice or, both would result in an Event of Default,
and (ii) all of the premises demised under the H.H. Gregg Lease (the ‘H.H. Gregg Premises’) has been fully leased
pursuant to a replacement Lease or replacement Leases approved by Lender and entered into in accordance with Section 5.10 hereof
(the ‘H.H. Gregg Replacement Lease(s)’) and all Approved Leasing Expenses (and any other expenses incurred in
connection with the re-tenanting of the H.H. Gregg Premises) have been paid in full, and (iii) Lender has received an estoppel
certificate addressed to Lender in form and substance reasonably satisfactory to Lender and such other evidence as Lender may reasonable
require confirming that (a) a tenant (or tenants) have assumed occupancy of all of H.H. Gregg Premises pursuant to the H.H. Gregg
Replacement Lease(s), are open for business and have commenced and are paying full, unabated rent (with no remaining free rent
concession periods in effect or remaining), and (b) any and all obligations of Borrower’s, as landlord, and the tenant(s)
under any H.H. Gregg Replacement Lease(s) for construction of tenant improvements in, on or about the H.H. Gregg Premises have
been completed in accordance with the plans and specifications therefor and the H.H. Gregg Replacement Lease(s) relating thereto,
and any other obligations of Borrower under the Leases have been completed and/or paid for in full, as verified by Lender (which
may include an inspection conducted at Borrower’s expense).

 

 

     

     

    

 

“Law:
any law(s) (including common law), constitution, statute, treaty, regulation, rule, ordinance, opinion, issued guidance, release,
ruling, order, executive order, injunction, writ, decree, bond, judgment, authorization or approval, lien or award of or any settlement
arrangement, by agreement, consent or otherwise, with any Governmental Body, foreign or domestic.

 

Reportable
Compliance Event: that any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint
or similar charging instrument, arraigned, or custodially detained in connection with any Anti-Terrorism Law or any predicate crime
to any Anti-Terrorism Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect
of its operations is in actual or probable violation of any Anti-Terrorism Law.

 

Sanctioned
Country: a country subject to a sanctions program maintained under any Anti-Terrorism Law.

 

Sanctioned
Person: any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated,
prohibited, sanctioned or debarred person, group, regime, entity or thing, or subject to any limitations or prohibitions (including
but not limited to the blocking of property or rejection of transactions), under any Anti-Terrorism Law.”

 

(c)          The
definition of Major Lease appearing on page 7 of the Loan Agreement is hereby deleted in its entirety, and the following new definition
of Major Lease is hereby substituted in lieu thereof:

 

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

 

(d)          The
following definitions are hereby inserted in Section 1.2 of the Loan Agreement to appear alphabetically along with the other definitions
therein:

 

“H.H.
Gregg Lease

H.H. Gregg
Premises

H.H. Gregg
Replacement Lease(s)”

 

(e)          Section
3.1 of the Loan Agreement, appearing on pages 22 and 23 thereof, is hereby deleted in its entirety, and the following new Section
3.1 is hereby substituted in lieu thereof:

 

     

     

    

 

3.1           Cash
Management Arrangements. Borrower shall cause all Rents and other income to
be transmitted directly by tenants of the Property into an Eligible Account established and maintained by Borrower (and reasonably
approved by Lender) with PNC Bank, National Association, which shall at all times be an Eligible Institution as more fully described
in the Cash Management Agreement (the “Deposit Bank”). Without in any way limiting the foregoing, if
Borrower or Manager receive any Rents or other income, then (i) such amounts shall be deemed to be collateral for the Loan and
shall be held in trust for the benefit, and as the property, of Lender, (ii) such amounts shall not be commingled with any other
funds or property of Borrower or Manager, and (iii) Borrower or Manager shall deposit such amounts into the Cash Management Account
within one (1) Business Day of receipt. Funds deposited into the Cash Management Account shall be swept by the Clearing Bank on
a daily basis into Borrower’s operating account designated by Borrower to Lender, unless a Cash Management Period is continuing,
in which event such funds remain in the Cash Management Account and applied and disbursed in accordance with the Cash Management
Agreement. Funds in the Cash Management Account shall be invested at Lender’s discretion only in Permitted Investments.
Lender will also establish subaccounts of the Cash Management Account which shall at all times be Eligible Accounts (and may be
ledger or book entry accounts and not actual accounts) (such subaccounts are referred to herein as “Subaccounts”).
The Cash Management Account and any Subaccount will be under the sole control and dominion of Lender, and Borrower shall have
no right of withdrawal therefrom. Borrower shall pay for all expenses of opening and maintaining all of the above accounts. From
and after the date hereof, any and all references in this Agreement (including, without limitation, any references appearing in
the definition of Cash Management Period) and any of the other Loan Documents to “Clearing Bank” and/or “Deposit
Bank” shall be deemed and construed to mean PNC Bank, National Association, as the Deposit Bank.

 

(f)              A
new Section 3.12 is hereby added, immediately after Section 3.11:

 

“3.12         H.H.
Gregg Escrow Fund. Borrower has deposited with Lender the sum of $700,000 (the “H.H. Gregg Escrow Fund”),
which shall be deposited into a subaccount (the ‘H.H. Gregg Subaccount’) and held as additional security for
the indebtedness secured hereby and for the purposes specified in this Agreement. Upon receipt by Lender of the H.H. Gregg Escrow
Fund, the Lease Sweep Period (and corresponding Cash Management Period) resulting from the Major Tenant Insolvency Proceeding filed
by Gregg Appliances, Inc. shall be waived by Lender. As such, Lender shall authorize and direct Deposit Bank to relinquish all
funds currently on deposit in the Cash Collateral Subaccount to Borrower . In addition, unless and until another Cash Management
Period commences, Lender shall cause all Rents deposited into the Deposit Account to be swept by Deposit Bank on a daily basis
into Borrower’s operating account.

 

“So long as no
Event of Default has occurred and is continuing hereunder, upon satisfaction of the H.H. Gregg Disbursement Conditions, the H.H.
Gregg Escrow Fund shall be released by Lender to Borrower. Until satisfaction of the H.H. Gregg Disbursement Conditions, Lender
shall be entitled to retain all proceeds of the H.H. Gregg Escrow Fund as security for the indebtedness secured hereby (without
any obligation whatsoever to apply such proceeds against the outstanding principal balance of, or interest on, the Loan).”

 

(g)          A
new Section 4.31 is hereby added, immediately after Section 4.30 and immediately before the last paragraph of Article 4 of the
Loan Agreement (which last paragraph begins with the phrase “All of the representations and warranties in this Article 4”),
to read as follows:

 

     

     

    

 

“4.31
Anti-Money Laundering/International Trade Law Compliance. No Covered Entity is a Sanctioned Person, and that no Covered
Entity, either in its own right or through any third party, (a) has any of its assets in a Sanctioned Country or in the possession,
custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (b) does business in or with, or derives any
of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism
Law; or (c) engages in any dealings or transactions prohibited by any Anti-Terrorism Law.”

 

(h)          Subsection
5.26.2(d)(iii) of the Loan Agreement is hereby deleted in its entirety and replaced with the following new Subsection 5.26.2(d)(iii):

 

“(iii)
the REIT Transfer occurs on or before April 28, 2017;”

 

(i)          Section
5.26.2(d)(xiv) of the Loan Agreement is hereby modified and amended by deleting the phrase “nine (9) months from the date
of this Agreement,” in its entirety and replacing it with the following new phrase: “April 28, 2017,”.

 

(j)          A
new Section 5.33 is hereby added immediately after Section 5.32 of the Loan Agreement to read as follows:

 

“5.33
Anti-Money Laundering/International Trade Law Compliance. No Covered Entity will become a Sanctioned Person. No Covered
Entity, either in its own right or through any third party, will (a) have any of its assets in a Sanctioned Country or in the possession,
custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (b) do business in or with, or derive any of
its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism
Law; (c) engage in any dealings or transactions prohibited by any Anti-Terrorism Law or (d) use the Loan proceeds to fund any operations
in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation
of any Anti-Terrorism Law. The funds used to repay the Indebtedness will not be derived from any unlawful activity. Each Covered
Entity shall comply with all Anti-Terrorism Laws. Borrower shall promptly notify Lender in writing upon the occurrence of a Reportable
Compliance Event.”

 

(k)          Subsection
8.1(l) of the Loan Agreement is hereby deleted by its entirety and replaced with the following:

 

“(l)          Notwithstanding
the provisions of Section 8.1(e) above, any representation or warranty contained in Section 4.31 hereof becomes false or misleading
at any time;”

 

(l)          Subsection
8.1(h) of the Loan Agreement is hereby modified and amended by deleting “or 5.28 hereof” in its entirety and replacing
it with “, 5.28 or 5.33 hereof”.

 

     

     

    

 

37.          RESERVATION
OF RIGHTS. Nothing contained in this Agreement shall prevent or in any way diminish or interfere with any rights or remedies
including, without limitation, the right to contribution, which Lender may have against Seller, Buyer, Principal or any other party
under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (codified at Title 42, U.S.C. Section 9601,
et. seq.), as it may be amended from time to time, any successor statute thereto or any other applicable federal, state
or local laws, all such rights being hereby expressly reserved.

 

38.          COMPLIANCE
WITH ANTI-TERRORISM, EMBARGO, SANCTIONS AND ANTI-MONEY LAUNDERING LAWS. None of Buyer, Principal, any of their respective
officers, directors, shareholders, partners, members or affiliates, or any other person directly or indirectly owning any equity
interest in Buyer or Principal, is or will be an entity or person: (i) that is listed in the Annex to, or is otherwise subject
to the provisions of Executive Order 13224 issued on September 24, 2001 (“EO13224”); (ii) whose name appears
on the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) most current list
of “Specially Designated Nationals and Blocked Persons” (which list may be published from time to time in various
mediums including, but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens to commit
or supports “terrorism”, as that term is defined in EO 13224; or (iv) who is otherwise affiliated with any entity
or person listed above (any and all parties or persons described in clauses (i) through (iv) above are herein referred to as a
 “Prohibited Person”). Each of Buyer and Principal covenants and agrees that none of Buyer, Principal, any of
their respective officers, directors, shareholders, partners, members or affiliates, or any other person directly or indirectly
owning any equity interest in Buyer or Principal will: (x) conduct any business, or engage in any transaction or dealing, with
any Prohibited Person, including, but not limited to, the making or receiving of any contribution of funds, goods, or services,
to or for the benefit of a Prohibited Person; or (y) engage in or conspire to engage in any transaction that evades or avoids,
or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in EO13224. On request by
Lender from time to time, each of Buyer and Principal further covenants and agrees promptly to deliver to Lender any such certification
or other evidence as may be requested by Lender in its sole and absolute discretion, confirming that no violation of this Section
shall have occurred. To Buyer’s knowledge, no tenant at the Property currently is identified on the OFAC list referred to
above or otherwise qualifies as a Prohibited Person, and no tenant at the Property is owned or controlled by a Prohibited Person.
Buyer shall cause Manager to implement commercially reasonable procedures to protect against any Prohibited Person’s being
or controlling any tenant at the Premises. No Transfer shall be permitted if such Transfer will violate this Section 38.

 

39.          NO
IMPAIRMENT OF LIEN. Nothing set forth herein shall affect the priority or extent of the lien of the Security Instrument
or any of the other Loan Documents, nor, except as expressly set forth herein, release or change the liability of any party who
may now be or after the date of this Agreement may become liable, primarily or secondarily, under the Loan Documents. Except as
expressly modified hereby, the Note, the Security Instrument, and the other Loan Documents remain unchanged, are hereby ratified
and reaffirmed in all respects and shall remain in full force and effect, and this Agreement shall have no effect on the priority
or validity of the liens, operation and effect of the Security Instrument and the other Loan Documents, all of which are incorporated
herein by reference. Nothing herein shall be construed to constitute a novation of the Loan or of any of the Loan Documents.

 

     

     

    

 

40.          FINANCIAL
INFORMATION. Buyer and Principal represent and warrant to Lender that all financial information and information regarding
the management capability of Buyer and Principal provided to Lender was true and correct as of the date provided to Lender and
remains materially true and correct as of the date of this Agreement.

 

41.          NOTICE.
Without amending, modifying or otherwise affecting the provisions of the Loan Documents except as expressly set forth herein, Lender
shall, from and after the date of this Agreement, deliver any notices to the “Borrower” (as defined in the Loan Documents)
which are required to be delivered pursuant to the Loan Documents, or are otherwise delivered by Lender thereunder at Lender’s
sole discretion, to the Buyer’s address set forth in the preamble, above.

 

42.          CONFLICTING
PROVISIONS. If and to the extent that any of the Loan Documents contain any provisions that are inconsistent with the terms
of this Agreement, the terms of this Agreement shall control in all respects.

 

[remainder of page intentionally left
blank]

 

     

     

    

 

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

 

	 	SELLER:
	 	 
	 	MEDALIST FUND I-A, LLC, a Delaware limited liability company
	 	 	 	 	 
	 	 	By:	Medalist Fund Manager, Inc., a Virginia corporation
	 	 	Its:	Manager
	 	 	 	 	 
	 	 	 	By:	/s/William R. Elliot
	 	 	 	Name:	William R. Elliott
	 	 	 	Title:	Co-President

 

ACKNOWLEDGMENT

 

COMMONWEALTH OF VIRGINIA

 

CITY OF RICHMOND

 

I certify that the
following person personally appeared before me this day, acknowledging to me that she voluntarily signed the foregoing document
for the purpose stated therein and in the capacity indicated: William R. Elliott.

 

Date:April 25, 2017.

 

	 	/s/P. Evans
	 	Official Signature of Notary
	 	 
	 	P. Evans
	 	Notary’s printed or typed name, Notary Public
	 	My commission expires: 1.31.2018
	 	#7056908

 

     

     

    

 

	 	PRINCIPAL:
	 	 
	 	/s/William Richard Elliot
	 	William Richard Elliott

 

ACKNOWLEDGMENT

 

COMMONWEALTH OF VIRGINIA

 

CITY OF RICHMOND

 

I certify that the
following person personally appeared before me this day, acknowledging to me that she voluntarily signed the foregoing document
for the purpose stated therein and in the capacity indicated: William Richard Elliott.

 

Date:April 25, 2017.

 

	 	P. Evans
	 	Official Signature of Notary
	 	 
	 	P. Evans
	 	Notary’s printed or typed name, Notary Public
	 	My commission expires: 1.31.2018
	 	#7056908

 

[signatures continue on next page]

 

     

     

    

 

	 	PRINCIPAL:
	 	 
	 	/s/ Thomas Edward Messier
	 	Thomas Edward Messier

 

ACKNOWLEDGMENT

 

COMMONWEALTH OF VIRGINIA

 

CITY OF RICHMOND

 

I certify that the
following person personally appeared before me this day, acknowledging to me that she voluntarily signed the foregoing document
for the purpose stated therein and in the capacity indicated: Thomas Edward Messier.

 

Date:April 25, 2017.

 

	 	P. Evans
	 	Official Signature of Notary
	 	 
	 	P. Evans
	 	Notary’s printed or typed name, Notary Public
	 	My commission expires: 1.31.2018
	 	#7056908

 

[signatures continue on next page]

 

     

     

    

 

	 	PRINCIPAL:
	 	 
	 	MEDALIST DIVERSIFIED REIT, INC.,
	 	a Maryland corporation
	 	 	 
	 	By:	/s/William R. Elliot
	 	Name:	William R. Elliot
	 	Title:	Authorized Signatory

 

ACKNOWLEDGMENT

 

COMMONWEALTH OF VIRGINIA

 

CITY OF RICHMOND

 

I certify that the following person personally appeared before
me this day, acknowledging to me that she voluntarily signed the foregoing document for the purpose stated therein and in the capacity
indicated: William R. Elliot

 

Date:April 25, 2017.

 

	 	
        P. Evans

        Official Signature of Notary

         

        P. Evans

        Notary’s printed or typed name, Notary Public

        My commission expires: 1.31.2018

        #7056908

 

[signatures continue on next page]

 

     

     

    

 

	 	BUYER:
	 	 
	 	MDR FRANKLIN SQUARE, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/William R. Elliot
	 	Name:	William R. Elliott
	 	Title:	Authorized Signatory

 

ACKNOWLEDGMENT

 

COMMONWEALTH OF VIRGINIA

 

CITY OF RICHMOND

 

I certify that the following person personally appeared before
me this day, acknowledging to me that she voluntarily signed the foregoing document for the purpose stated therein and in the capacity
indicated: William R. Elliott.

 

Date:April 25, 2017.

 

	 	
        P. Evans

        Official Signature of Notary

         

        P. Evans

        Notary’s printed or typed name, Notary Public

        My commission expires: 1.31.2018

        #7056908

 

[signatures continue on next page]

 

     

     

    

 

	 	LENDER:
	 	 
	 	Wells Fargo Bank, National Association, as Trustee, for the benefit of the Holders of Comm 2016-COR1 Mortgage Trust Commercial Mortgage Pass-Through Certificates, Series 2016-COR1
	 	 	 	 
	 	By:	Midland Loan Services, a Division of PNC Bank, National Association, as its Attorney-in-Fact
	 	 	 	 
	 	By:	/s/ David D. Spotts	(Seal)
	 	Name:	David D. Spotts
	 	Title:	Senior Vice President Servicing Officer

 

ACKNOWLEDGMENT

 

STATE OF KANSAS

 

COUNTY OF JOHNSON

 

I certify that the
following person personally appeared before me this day, acknowledging to me that she voluntarily signed the foregoing document
for the purpose stated therein and in the capacity indicated: David D. Spotts.

 

Date:April 25, 2017.

 

	 	/s/Matthew D. Miller
	 	Official Signature of Notary
	 	 
	 	Matthew D. Miller
	 	Notary’s printed or typed name, Notary Public
	 	My commission expires: 7/29/2019

 

     

     

    

 

EXHIBIT
 “A”

Legal Description

 

The Land referred to herein below is situated
in the County of Gaston, State of North
Carolina, and is described as follows:

 

That certain tract or parcel of land located
and being in the Cities of Gastonia & Lowell, Gaston County, North Carolina and being more particularly described as follows:

 

Being all of that certain 10.2929 Acre
tract as shown on plat entitled “Recombination Plat Prepared Virginia Avenue, LLC” dated November 16, 2006 and recorded
November 20, 2006 in Plat Book 73 at Page 11 in the Gaston County Public Registry and being more particularly described by metes
and bounds as follows:

 

BEGINNING at a new iron rod marking the
northeasterly intersection formed by the northerly margin of East Franklin Boulevard (U.S. Highway 29 & 74) (a 100’ public
right-of-way) and the easterly margin of Church Street (a 60’ public right-of-way); thence with the easterly margin of Church
Street the following five (5) courses and distances: 1) N 26°14’50” W, 20.87 feet to an existing concrete monument; 
2) N 25°12’42” E 420.53 feet to a new iron rod;  3) with a curve to the right having a radius of 387.04 feet,
an arc length of 199.31 feet, (a chord bearing of N 43°26’01” E and a chord distance of 197.12 feet) to an existing
iron rod;  4) with a curve to the right having a radius of 380.68 feet, an arc length of 35.41 feet, (a chord bearing of N
61°03’12” E and a chord distance of 35.40 feet) to an existing iron rod; 5) N 68°31’43” E 97.40
feet to an existing iron rod on the southerly line of the J & K Properties of the Carolinas, LLC property as described in Deed
Book 4181, page 1118, recorded in the Gaston County Public Registry; thence with the southerly line of the J & K Properties
of the Carolinas LLC property as described in aforesaid deed and continuing with the property of aforesaid owner as described in
Deed Book 4151, page 2244 S 78°05’35” E 297.05 feet to an existing iron rod being the southwesterly corner of the
J & K Properties of the Carolinas LLC property as described in Deed Book 4151, page 2325; thence with the southerly line of
the J & K Properties of the Carolinas LLC property S 79°04’23” E 49.06 feet to an existing iron rod being the
northwesterly corner of the Sawmay, LLC property as described in Deed Book 4387, page 149; thence with the westerly line of the
Sawmay, LLC property S 14°03’39” W 208.81 feet to an existing iron rod lying on the northerly margin of Taylor
Avenue (a 30’ public right-of-way); thence continuing with the westerly terminus of the right-of-way of Taylor Avenue S 14°03’39”
W 30.17 feet to an existing iron rod; thence turning and running with the southerly margin of Taylor Avenue the following two (2)
courses and distances: 1) S 81°53’30” E 174.06 feet to an existing iron rod; 2) with a curve to the right having
a radius of 20.00 feet, an arc length of 31.51 feet, (a chord bearing of S 36°45’24” E and a chord distance of
28.35 feet) to an existing iron rod lying on the westerly margin of Neely Street (a 40’ public right-of-way); thence with
the westerly margin of Neely Street the following two (2) courses and distances: 1) S 08°22’41” W 372.86 feet to
a new nail; 2) with a curve to the right having a radius of 20.00 feet, an arc length of 31.88 feet, (a chord bearing of S 54°02’43”
W and a chord distance of 28.61 feet) to a new iron rod on the northerly margin of the right-of-way of the aforementioned East
Franklin Boulevard;  thence with the northerly margin of East Franklin Boulevard N 80°17’24” W 831.52 feet
to THE POINT OF BEGINNING; containing 448,184 square feet or 10.2889 acres as shown on a survey by R.B. Pharr & Associates,
P.A., dated December 14, 2010, last revised January 21, 2011.

 

Being the same real estate conveyed unto
Medalist Fund I-A, LLC, by Deed from Virginia Avenue, LLC, dated September 20, 2013, recorded September 20, 2013 in Book 4697,
page 717, in the Register of Deeds, Gaston County, North Carolina.

 

Being the same property shown on that certain
survey of The Shops at Franklin Square, prepared by Republic National, bearing the seal and certification of Kimberly Solitro,
PLS No. L-5204, dated February 9, 2016, under Job No. 160145.

 

    A-1Exhibit 10.10

 

REAL ESTATE PURCHASE AND SALE AGREEMENT

 

THIS REAL ESTATE
PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into as of this 31st day of July,
2016 (the “Effective Date”), by and between MEDALIST PROPERTIES 8, LLC, a Delaware limited liability
company (“Seller”); and MEDALIST DIVERSIFIED HOLDINGS, L.P., a Delaware limited partnership (“Buyer”).

 

RECITALS

 

WHEREAS, Seller owns
certain real property and improvements commonly known as the Greensboro Airport Hampton Inn, located at 7803 National Service Road,
Greensboro, North Carolina.

 

WHEREAS, Seller desires
to sell to Buyer, and Buyer desires to purchase from Seller, the Property (as hereinafter defined), on the terms and conditions
contained in this Agreement;

 

AGREEMENT

 

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

 

ARTICLE 1

SALE OF PROPERTY

 

1.1  Property
To Be Sold.  Subject to the terms and provisions hereof, Seller agrees to sell to Buyer, and Buyer agrees to purchase
from Seller, upon the terms and conditions of this Agreement. All of the land described and/or shown on Exhibit A attached
hereto, together with all privileges, rights, easements and appurtenances belonging to such land, including without limitation,
all right, title and interest (if any) of Seller in and to any streets, alleys, passages, and other rights-of-way or appurtenances
included in, adjacent to or used in connection with such land and all right, title and interest (if any) of Seller in all mineral
and development rights appurtenant to such land (collectively, the “Land”).

 

1.1.1       All
buildings, structures and other improvements and all fixtures, systems and facilities located on the Land (collectively, the “Improvements”).

 

1.1.2       All
furniture, equipment, machinery, inventories, supplies, signs and other tangible personal property of every kind and nature, if
any, owned by Seller and installed, located or situated on or used in connection with the operation of the Land or Improvements,
including, without limitation, the personal property listed on Exhibit B attached hereto (collectively, the
 “Personal Property”).

 

1.1.3       All
of Seller’s rights in and to those certain leases (collectively, the “Leases”) described in the
rent roll attached hereto as Exhibit C (the “Rent Roll”) with the tenants described therein
(collectively, the “Tenants”) including Seller’s rights to any unapplied security deposit under the Leases
(the “Tenant Deposits”).

 

    	 	1	 

     

    

 

1.1.4       All
of Seller’s right, title and interest, if any, in all intangible assets of any nature relating to the Land, the Improvements
and/or the Personal Property, including, without limitation, all of Seller’s right, title, and interest in all and all (i) warranties
and/or guaranties; (ii) use, occupancy, building and/or operating licenses, permits, approvals and/or development rights; and (iii) plans
and specifications (collectively, the “Intangible Property”).

 

1.1.5       An
irrevocable license to use any and all trade names used or utilized in connection with the Land and/or Improvements, including,
without limitation, the trade name(s) “Franklin Square Shopping Center” (collectively, the “Trade Names”).

 

1.1.6       All
of Seller’s rights, if any, in any and all service contracts (other than management and leasing contracts) affecting the
Land and/or Improvements as set forth on Exhibit “D” (collectively, the “Property Contracts”),
to the extent Buyer elects to assume the same in accordance with Section 3.4 below.

 

1.1.7       All
rights, which the Seller may have, if any, in and to any Tenant data, telephone numbers and listings, all master keys and keys
to common areas, all good will, if any, and any and all other rights, privileges and/or appurtenances owned by Seller and related
to or used in connection with the existing business operation of the Land and/or Improvements (collectively, the “Miscellaneous
Property”).

 

1.1.8       The
Land and Improvements are hereinafter sometimes referred to collectively as the “Real Property” and the
Real Property, Personal Property, Leases, Tenant Deposits, Intangible Property, Trade Names, Property Contracts and Miscellaneous
Property, are hereinafter sometimes referred to collectively as the “Property.”

 

1.2       Purchase
and Sale.  Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, the Property, on the terms
and conditions set forth in this Agreement.

 

1.3       Purchase
Price.  The purchase price for the Property (the “Purchase Price”) shall be Fifteen Million
One Hundred Thousand and 00/100 Dollars ($15,100,000.00). The Purchase Price shall be paid to Seller by Buyer on the Closing Date
(as defined below), plus or minus all adjustments and/or credits as set forth herein, by wire transfer of immediately available
federal funds. 

 

1.4       Deposit
and Escrow.

 

1.4.1       Within
three (3) Business Days after the Effective Date, Buyer shall deliver to GRS Global, Attn: Steve Francis, located at 901 E. Byrd
Street, Suite 1100, Richmond, Virginia 23219, Telephone: (804)486-9465, E-mail: sfrancis@grs-global.com (“Escrow
Holder”) an earnest money deposit in the amount of ten thousand and No/100 Dollars ($10,000) (together with any interest
thereon, the “Deposit”). The Deposit shall be held in an insured, interest-bearing account with interest
accruing for the benefit of the party entitled to the Deposit pursuant to the terms of this Agreement. The Escrow Holder may conclusively
rely upon and act in accordance with any certificate, instructions, notice, letter, e-mail, facsimile and/or other written instrument
believed to be genuine and to have been signed or communicated by the proper party or parties.

 

    	 	2	 

     

    

 

1.4.2       The
Deposit shall be applied to the Purchase Price if the Closing occurs. After the expiration of the Due Diligence Period, the Deposit
shall be nonrefundable to Buyer except as otherwise provided herein, including, without limitation, unless escrow fails to close
due to Seller’s breach or default under this Agreement, a failure of a representation or warranty by Seller to be true and
correct as of the Closing or due to the failure of a condition precedent set forth in Section 5.4, and shall constitute liquidated
damages to Seller if escrow fails to close solely as a result of Buyer’s default as provided in Section 6.1 below. In the
event Buyer shall elect to terminate this Agreement during the Due Diligence Period, the Deposit shall be returned to Buyer as
provided in Section 3.6 below.

 

1.5       Closing
Date. The closing of the transaction contemplated by this Agreement (the “Closing”) shall take
place through an escrow with Escrow Holder on the day which is no later than thirty (30) days after the expiration of the Due Diligence
Period (the “Closing Date”).

 

ARTICLE 2

TITLE AND SURVEY

 

2.1       Title
and Survey.  Buyer may, at Buyer’s sole cost and expense, obtain (a) preliminary title commitment (the
 “Preliminary Report”) from the Escrow Holder (in such capacity, the “Title Company”); and
(b) a survey (the “Survey”). 

 

2.2       Review
of the Preliminary Report, Survey and UCC Searches; Objection; Approval or Termination.  On or before
the expiration of the Due Diligence Period with respect to the Preliminary Report, Buyer may deliver to Seller a notice or notices
(each, a “Title Objection Notice”) setting forth (i) any matters shown on the Preliminary Report,
or Survey, as applicable, to which Buyer objects; (ii) any modifications, supplements and/or other modifications of the legal
description, description of exceptions and/or other matters set forth in the Preliminary Report, and/or Survey, as applicable;
and (iii) any endorsements and/or other affirmative title insurance coverage required by the Buyer to be included in the Title
Policy (as hereinafter defined). Buyer’s failure to give any Title Objection Notice shall be deemed to constitute Buyer’s
approval of all matters disclosed in the Preliminary Report, or Survey as applicable. If Buyer delivers one or more Title Objection
Notice(s), Seller shall have five (5) Business Days from the receipt of Buyer’s such Title Objection Notice to provide Buyer
with written notice of Seller’s election to remove or otherwise cure, to Buyer’s reasonable satisfaction, any objections
on or prior to the Closing (“Seller Response Notice”); provided, however, and notwithstanding anything
to the contrary contained in this Agreement, that Seller shall be obligated to pay and remove any and all monetary liens affecting
the Real Property. If Seller timely delivers notice of election not to cure a disapproved item, then Buyer may either (i) elect
to terminate this Agreement; or (ii) waive in writing its prior disapproval of such item and accept title subject to such previously
disapproved item by delivering notice of Buyer’s election to Seller within five (5) Business Days after the receipt of the
Seller Response Notice. If Seller fails to timely deliver the Seller Response Notice within such five (5) Business Day period,
then Seller shall be deemed to have elected to cure all of the disapproved matters set forth in Buyer’s Title Objection Notice.
If Buyer fails to deliver its notice of election to terminate this Agreement or waive its prior disapproval as provide in clauses
(i) and (ii) above within such five (5) day business period, Buyer shall be deemed to have waived its disapproval. If this Agreement
is terminated pursuant to this Section 2.2, the provisions of Section 3.6 shall apply.

 

2.3       Required
Title Condition.  Title to the Property shall be conveyed to Buyer subject only to the following matters: (a) current,
non-delinquent real estate taxes and assessments; (b) the matters set forth in the Preliminary Report which Buyer has approved
or been deemed to have approved; (c) the Lease; and (d) any other matters approved in writing by Buyer, in its sole and
absolute discretion (collectively, the “Required Title Condition”).

 

    	 	3	 

     

    

 

ARTICLE 3

INSPECTION AND DUE
DILIGENCE PERIOD

 

3.1       Access.  From
and after the Effective Date through the Closing, Buyer, personally or through its authorized agents or representatives, shall
be entitled, upon reasonable advance notice to Seller, to enter upon the Property and to make such investigations, including appraisals,
tenant interviews, engineering studies, interviews of governmental and quasi-governmental officials, soil tests, environmental
studies and underwriting analyses, as Buyer deems reasonably necessary or advisable. Buyer shall have the right to conduct a Phase
I environmental site assessment, and, if desired, a Phase II environmental site assessment (including soils borings, soil sampling
and, if relevant, ground water testing, and invasive sampling of building materials with respect to the Property). Buyer’s
activities at the Property shall be conducted in such a manner so as not to unreasonably interfere with the rights of the Tenant
under the Lease. Buyer hereby agrees to indemnify and hold Seller harmless from any physical damages arising out of inspections
and/or investigations by Buyer or its agents or independent contractors; provided, however, and notwithstanding the foregoing,
that Buyer shall not be liable for any pre-existing conditions at the Property.

 

3.2       Due
Diligence Period.  Buyer shall have until 5:00 pm Eastern time on the day which is thirty (30) days after the
Effective Date (the “Due Diligence Period”) to conduct such due diligence review of the Property, all of the
items to be furnished by Seller to Buyer pursuant to Section 3.3 below and all records and other materials related thereto
as Buyer deems appropriate in its sole and absolute discretion.

 

3.3       Items
to be Provided by Seller.  The parties acknowledge that Seller has made available to Buyer all of the
information related to Seller’s ownership and operation of the Property (collectively, the “Property Information”).
The Property Information has been provided to Buyer without any representation or warranty of Seller with regard thereto, and Buyer
is relying on its own investigations and studies in connection with the acquisition of the Property under this Agreement.

 

3.4       Termination
of Property Contracts.  Prior to the expiration of the Due Diligence Period, Buyer shall notify Seller
of any Property Contract which Buyer wishes to retain and assume as of the Closing, in Buyer’s sole and absolute discretion.
If Buyer does not provide such notice to Seller, Buyer shall be deemed to have elected to assume all Property contracts.

 

3.5       Buyer's
Possible Early Termination.  Buyer shall have the right to approve, in Buyer's sole and absolute discretion,
the Property, the Property Information, the Preliminary Report, the Survey, or any other matter whatsoever regarding the Property.
On or before the expiration of the Due Diligence Period, Buyer may provide written notice (a “Disapproval Notice”)
to Seller that Buyer wishes to proceed to Closing. Buyer’s failure to provide a Disapproval Notice prior to the expiration
of the Due Diligence Period shall be deemed Buyer’s approval of the Property. In addition, at any time prior to the expiration
of the Due Diligence Period, Buyer may provide written notice to Seller disapproving the Property (“Disapproval Notice”).
Upon the giving of a Disapproval Notice or the deemed disapproval of the Property, this Agreement shall automatically terminate
and the provisions of Section 3.6 shall apply. 

 

    	 	4	 

     

    

 

3.6       Consequences
of Buyer’s Early Termination.  This Agreement shall immediately terminate upon the giving of a Disapproval
Notice or upon deemed disapproval pursuant to Section 3.5, as applicable, and the parties shall be released from all further obligations
under this Agreement (except with respect to any provisions that by their terms expressly survive a termination of this Agreement);
provided, however and notwithstanding anything to the contrary contained in this Agreement, that if Seller is in default hereunder
at the time of such termination, Section 6.2 shall additionally apply. Escrow Holder shall pay the entire Deposit to Buyer
not later than one (1) Business Day following receipt of Buyer's Disapproval Notice or Buyer’s deemed disapproval of the
Property pursuant to Section 3.5. Notwithstanding anything to the contrary contained in this Agreement, no notice to Escrow Holder
from Seller shall be required for the release of the Deposit to Buyer by Escrow Holder under this Section, and the Deposit shall
be released and delivered to Buyer upon Escrow Holder's receipt of Buyer's Disapproval Notice or upon Buyer’s deemed disapproval
of the Property pursuant to Section 3.5, despite any objection or potential objection by Seller.

 

ARTICLE 4

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

4.1       Seller’s
Representations.  Seller warrants and represents to Buyer as follows:

 

4.1.1       Seller
is a limited liability company validly formed in the State of Delaware. Seller has full power and authority to enter into this
Agreement, to perform this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance
of this Agreement and all documents contemplated hereby by Seller have been duly and validly authorized by all necessary action
on the part of Seller, and all required consents and approvals have been duly obtained and will not result in a breach of any of
the terms or provisions of, or constitute a default under any indenture, agreement and/or instrument to which Seller is a party.
This Agreement is a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject
to the effect of applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting the
rights of creditors generally.

 

4.1.2       Seller
has good and marketable title to the Property. There are no outstanding rights of first refusal, rights of reverter or options
to purchase relating to the Property or any interest therein. To the best of Seller’s knowledge, there are no unrecorded
or undisclosed documents or other matters which affect title to the Property. Subject to the Lease, Seller has enjoyed the continuous
and uninterrupted quiet possession, use and operation of the Property, without material complaint or objection by any person.

 

4.1.3       Seller
is not a “foreign person” within the meaning of Section 1445(f) of the Internal Revenue Code of 1986, as amended (the
 “Code”).

 

    	 	5	 

     

    

 

4.1.4       Neither
Seller nor any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners, and none
of their respective employees, officers, directors, representatives or agents is, nor will they become, a person or entity with
whom United States persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control
(“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated
and Blocked Persons List) or under any statute, executive order (including, without limitation, the September 24, 2001, Executive
Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other
governmental action, and is not and will not engage in any dealings or transactions or be otherwise associated with such persons
or entities.

 

4.1.5       No
authorization, consent or approval of any governmental authority (including, without limitation, courts) is required for the execution
and delivery by Seller of this Agreement or the performance of its obligations hereunder.

 

4.1.6       There
are no actions, suits or proceedings pending or, to the best of Seller’s knowledge, threatened, against (a) the Property
or any portion thereof; or (b) Seller.

 

4.1.7       Seller
has not (a) made a general assignment for the benefit of creditors, (b) filed any voluntary petition in bankruptcy or suffered
the filing of an involuntary petition by Seller's creditors, (c) suffered the appointment of a receiver to take possession of all
or substantially all of Seller's assets, (d) suffered the attachment or other judicial seizure of all, or substantially all, of
Seller's assets, (e) admitted in writing its inability to pay its debts as they come due, or (f) made an offer of settlement, extension
or composition to its creditors generally.

 

4.1.8       Neither
the execution, delivery or performance of this Agreement nor compliance herewith (a) conflicts or will conflict with or results
or will result in a breach of or constitutes or will constitute a default under (i) the articles of incorporation and by-laws
or other organization certificate and/or partnership or operating agreement of Seller, or (ii) any law or any order, writ,
injunction or decree of any court or governmental authority, or (b) results in the creation or imposition of any lien, charge
or encumbrance upon its property pursuant to any such agreement or instrument.

 

4.1.9       Seller
has not entered into any material commitments or agreements with any governmental authorities or agencies affecting the Property.

 

4.1.10       There
is no pending or, to the best of Seller’s knowledge, threatened or contemplated, condemnation proceeding relating to the
Property, and Seller has not received any written notice from any governmental or quasi-governmental agency or official to the
effect that any such proceeding is contemplated.

 

4.1.11       Seller
has delivered to Buyer true and complete copies of the Property Contracts, and, to the best of Seller’s knowledge, any and
all other contracts, agreements, documents, reports, materials and information that are in Seller’s possession or control
with respect to the ownership, use and/or operation of the Property. Seller has not, within the last year, received any written
notice of any default under any Property Contract or other such contract or agreement that has not been cured or waived.

 

    	 	6	 

     

    

 

4.1.12       There
are no tenant improvement allowances, non-monetary tenant improvement obligations of Landlord, leasing commissions and/or rent
concessions with respect to the current term of the Lease, except as disclosed on Schedule 4.1.12 attached hereto.

 

4.1.13       Seller
has not received any written notice from, and to the best of Seller’s knowledge, there are no grounds for, any governmental
agency requiring the correction of any condition with respect to the Property.

 

4.2       Buyer’s
Representations.  Buyer makes the following representations and warranties to Seller that, to the best of Buyer’s
knowledge.  

4.2.1Buyer
is a duly formed and validly existing limited liability company in good standing under the laws of the State of Delaware.

 

4.2.2       Buyer
has full right, power and authority and is duly authorized to enter into this Agreement and, as of the Closing Date, any permitted
assignee of Buyer shall have the full right, power and authority to perform each of the covenants to be performed by the Buyer
hereunder and to execute and deliver and to perform its obligations under all documents required to be executed and delivered by
it pursuant to this Agreement, and this Agreement constitutes the valid and legally binding obligation of Buyer, enforceable against
Buyer in accordance with its terms.

 

4.3       Survivability
of Representations and Warranties.  The representations and warranties of Seller and Buyer set forth in
this Agreement shall not be deemed to be merged into or waived by the instruments of Closing, but shall survive the Closing.

 

4.4       Property
Conveyed “As Is”.  Except as may be expressly contained herein, in the exhibits attached hereto
and/or in the documents to be executed and delivered by Seller to Buyer at Closing, Buyer agrees that the Property shall be sold,
and Buyer shall accept possession of the Property at Closing, on an “as-is-where-is” basis.

 

4.5       Leasing
 & Other Activities Prior to Closing.

 

4.5.1       
Leasing Activities.  Except in the ordinary course of business, Seller shall not, from the Effective Date,
enter into any modification or amendment to any Lease.

 

4.5.2       Service
Contracts.  Seller shall not, from the Effective Date, enter into any new service contracts for the Property
which are not terminable on thirty (30) days’ notice without the written consent of Buyer, which consent may be given or
withheld in Buyer’s reasonable discretion.

 

4.5.3       Conducting
Business.  At all times prior to Closing, Seller shall continue to (i) conduct business with respect to
the Property in the same manner in which said business has been heretofore conducted; and (ii) insure the Property substantially
as it is currently insured.

 

4.5.4       Compliance
with Laws and Regulations.  At all times prior to Closing, Seller shall not knowingly take any action that would
result in a failure to comply in all material respects with all applicable statutes, rules, regulations and requirements of all
federal, state and local commissions, boards, bureaus and agencies applicable to the Land and Improvements.

 

    	 	7	 

     

    

 

ARTICLE 5

CLOSING

 

5.1       Closing.
  “Close of Escrow” or “Closing”  means the date Escrow Holder records
the Deed in favor of Buyer. The Closing shall take place on the Closing Date set forth in Section 1.5.1, as the same may be
extended, provided all conditions to the Closing have been satisfied or duly waived as provided herein.

 

5.2       Conditions
Precedent Favoring Buyer.  In addition to any other conditions precedent in favor of Buyer as may be expressly
set forth elsewhere in this Agreement, Buyer’s obligations under this Agreement are subject to the timely fulfillment of
the conditions set forth in this Section 5.4 on or before the Closing Date, or such earlier date as is set forth below. Each
condition may be waived in whole or in part only, by written notice of such waiver from Buyer to Seller, in Buyer’s sole
and absolute discretion. Buyer may terminate this Agreement upon written notice to Seller due to the failure of any of the conditions
precedent contained in this Agreement, in which event Buyer shall be entitled to a prompt return of the Deposit, and the parties
hereto shall have no further obligations hereunder except those which by their terms expressly survive any such termination.

 

5.2.1       Seller
performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by
Seller prior to or at the Closing.

 

5.2.2       On
the Closing Date, all of the representations and warranties of Seller set forth in Section 4 hereof shall be true, accurate
and complete.

 

5.2.3       There
shall have been no material, adverse change in the physical condition of the Property from the end of the Due Diligence Period
through the Closing Date.

 

5.3       Conditions
Precedent Favoring Seller.  In addition to any other condition precedent in favor of Seller as may be
expressly set forth elsewhere in this Agreement, Seller’s obligations under this Agreement are expressly subject to the timely
fulfillment of the conditions set forth in this Section 5.5 on or before the Closing Date, or such earlier date as is set
forth below. Each condition may be waived in whole or part only by written notice of such waiver from Seller to Buyer and written
acceptance of such waiver by Buyer.

 

5.3.1       Buyer
performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by
Buyer prior to or at the Closing.

 

5.3.2       On
the Closing Date, all of the representations of Buyer set forth in this Agreement shall be materially true, accurate and complete.

 

5.4       Seller’s
Deliveries.  At the Closing, Seller shall deliver or cause to be delivered to Escrow Holder, at Seller’s
sole cost and expense, each of the following items:

 

5.4.1       A
special warranty deed (the “Deed”) duly executed and acknowledged by Seller in a form reasonably acceptable
to the Title Company and the Buyer.

 

    	 	8	 

     

    

 

5.4.2       A
bill of sale, general assignment and assignment and assumption of Lease (the “Bill of Sale and Assignment”)
in a form acceptable to Seller and Buyer which shall transfer, convey, sell, assign and set over to Buyer all of Seller’s
right, title and interest in and to the Personal Property, Lease, Tenant Deposit, Property Contracts (which Buyer elected to assume,
if any), Intangible Property, Trade Names and Miscellaneous Property.

 

5.4.3       Originals
of the Leases, or, in the alternative, make the Leases available to Buyer in the leasing or management office of the Property.

 

5.4.4       All
keys in Seller’s possession to all locks on the Property and all documents in the possession of Seller pertaining to the
Tenant, including all applications, correspondence and credit reports relating to such Tenant.

 

5.4.5       A
non-foreign person affidavit sworn to by Seller as required by Section 1445 of the Internal Revenue Code.

 

5.4.6       Such
evidence, documents, affidavits and indemnifications as may be reasonably required by the Title Company as a precondition to the
issuance of the Title Policy relating to: (i) mechanics’ or materialmen’s liens; (ii) parties in possession;
(iii) the status and capacity of Seller and the authority of the person or persons who are executing the various documents
on behalf of Seller in connection with the sale of the Property; or (iv) any other matter reasonably required to enable the
Title Company to issue the Title Policy and endorsements thereto.

 

5.4.7       Originals
of all Property Contracts assumed by Buyer and all other documents in the possession and/or control of Seller relating to the use
and/or operation of the Property, including, without limitation, all permits, licenses, approvals, plans, specifications, guaranties
and warranties or, in the alternative, make such documents available to Buyer in the leasing or management office at the property.

 

5.4.8       A
..pdf copy of a duly executed closing statement reflecting the adjustments and prorations required by this Agreement (the “Closing
Statement”).

 

5.5       Buyer’s
Deliveries.  At the Closing, Buyer shall deliver to Escrow Holder the following items:

 

5.5.1       Immediately
available federal funds sufficient to pay the Purchase Price (less the Deposit and any interest thereon) and Buyer’s share
of all escrow costs and closing expenses as provided herein.

 

5.5.2       Duly
executed and acknowledged originals of the Bill of Sale and Assignment and a .pdf copy of the Closing Statement.

 

5.5.3       Such
evidence or documents as may reasonably be required by Seller and/or the Title Company evidencing the power and authority of the
Buyer and the due authority of, and execution and delivery by, any person or persons who are executing any of the documents required
in connection with the purchase of the Property by Buyer.

 

    	 	9	 

     

    

 

5.6       Costs,
Prorations and Credits.

 

5.6.1       Closing
Costs.  Except as otherwise provided herein, Buyer and Seller shall each pay their own legal fees related to
the preparation of this Agreement and all documents required to settle the transaction contemplated hereby. Buyer shall pay (i) all
costs associated with its investigation of the Property, including the cost of appraisals, architectural, engineering, Survey,
credit and environmental reports; (ii) all title insurance premiums and title examination costs; and (iii) fifty percent (50%)
of all escrow charges. Seller shall pay (i) all transfer taxes, documentary stamp charges of any jurisdiction and recording fees;
and (ii) fifty percent (50%) of all escrow charges. All other customary purchase and sale closing costs shall be paid by Seller
or Buyer in accordance with the custom in the jurisdiction where the Property is located.

 

5.6.2       Prorations.  The
following shall be prorated, credited, debited and adjusted between Seller and Buyer as of 12:01 a.m. on the day of the Closing
(except as otherwise provided) in accordance with this section. For purposes of calculating prorations, Buyer shall be deemed to
be in title to the Property, and therefore entitled to the income and responsible for the expenses, for the entire day upon which
the Closing occurs.

 

(a)       Current
Rents.  The Tenant’s rents, including payments for taxes, utilities, common area maintenance, operating
expenses, or insurance, or additional charges of any other nature (collectively "CAM"), based on a rental
statement prepared by Seller and approved by Buyer.

 

(b)       CAM;
Impounds; Reconciliation.  The provisions of this subparagraph (b) shall apply in furtherance of the proration
of tenant rents with respect to CAM under subparagraph (a) above:

 

(i)       Where
the Lease provides for the payment of any CAM in arrears after being billed therefor by Seller, Seller shall be responsible for
billing all unpaid CAM charges under the Lease for all collection periods ending prior to the Closing, and shall be further responsible
for providing to Buyer, as soon as is reasonably practicable after the Closing, a final determination of any CAM owed by the Tenant
for the period prior to the date of Closing, together with all relevant back-up, paid invoices, receipts, and other materials.
The collection and remitting of any CAM unpaid as of the Closing shall be governed by the provisions of subparagraph (c) below
regarding the post-closing collection of Unpaid Rents.

 

(ii)       Where
Seller has collected any portion of CAM on an estimated basis, pursuant to so-called "impounds," or otherwise in advance,
then the remaining provisions of this subparagraph (b) shall apply. If Seller's collection of such amounts is in excess of the
amounts actually paid by Seller for the items comprising CAM for the period prior to Closing, then Buyer shall receive a credit
at Closing for the excess amounts collected. Buyer shall apply all such excess amounts to the charges owed by Buyer for such items
for the period after the Closing and, if required by the Lease, shall rebate or credit the Tenant with any remainder. If it is
determined that the amount collected during Seller's ownership period was less than the amounts actually paid by Seller for such
items for the period prior to the Closing, then the collection and remitting of such amounts shall be governed by the provisions
of subparagraph (c) below regarding the post-closing collection of Unpaid Rents.

 

    	 	10	 

     

    

 

(iii)       Prior
to Closing, Seller shall prepare for Buyer's reasonable approval an estimated proration statement reconciling the amounts paid
by the Tenants in respect of CAM and the amounts actually paid by Seller therefor. Such statement shall set forth the parties'
estimate of the Buyer's closing credit (if any), or of the amount to which Seller might be entitled with respect to its period
of ownership (if any). If any of the aforesaid prorations cannot be definitely calculated accurately as of the Closing, then they
shall be recalculated as soon as practicable after the Closing. As soon as is practicable after the Closing, Seller shall conduct
a final reconciliation of any such overpayment or underpayment under the Lease to the date of Closing and shall provide such final
reconciliation to Buyer, together with all relevant back-up, paid invoices, receipts, and other materials; and if such final reconciliation
indicates that Buyer was entitled to a larger credit with respect to the same than Buyer received at Closing, Seller shall immediately
remit the shortfall to Buyer.

 

(iv)       Seller
shall be responsible for conducting and completing all reconciliations of CAM charges versus any collections or impound therefor,
and for billing all unpaid CAM charges, to the Tenant for all lease years prior to the Closing pursuant to the terms of the Lease.
The collection and remitting of any CAM unpaid as of the Closing shall be governed by the provisions of subparagraph (c) below
regarding the post-closing collection of Unpaid Rents.

 

(c)       Unpaid
Rents.  As used herein, the term "Unpaid Rents" means any Tenant rentals and other sums
(however denominated and including without limitation unpaid CAM) owed to Seller from the Tenant and not paid as of the Closing
Date. Seller hereby assigns to Buyer without warranty any and all Unpaid Rents. Seller specifically acknowledges and agrees that
Buyer shall have the right to compromise, forgive or otherwise deal with Unpaid Rents in respect of the tenant owing the same,
which dealing may result in economic advantage to Buyer, all without liability or obligation to Seller. Provided, however, that
if any Unpaid Rents are not otherwise forgiven, compromised or dealt with, such Unpaid Rent, if and when collected by Buyer, shall
be applied first to any unpaid rent and other sums owed to Buyer from the Tenant accruing after the Closing through the date of
collection, with any remaining amounts allocable to the period prior to Closing being paid to Seller (after deduction of all collection
costs including attorneys’ fees). Without limiting the foregoing, Seller specifically agrees not to undertake any effort
to collect unpaid rent or other sums (however denominated) owed to Seller from any person if such person or any affiliate of such
person is in possession of any space in the Property at the time of any such collection effort.

 

(d)       Property
Contracts.  Prepaid charges in connection with any Property Contracts that Buyer elects to assume, or licenses
or permits, shall be credited to Seller. Accrued charges in connection with such Property Contracts, or licenses or permits, shall
be credited to Buyer.

 

(e)       Property
Taxes.  All real property taxes for the year immediately preceding the year of Closing that are payable in the
year of Closing, and for years prior thereto, shall be paid by Seller on or before the Closing. Except to the extent such items
are the responsibility of the Tenant, real property taxes for the year of Closing shall be prorated on the basis of the most recent
assessment and levy. Any and all refunds, credits, claims or rights to appeal respecting the amount of any real property taxes
or other taxes or assessments charged in connection with the Property for any period shall belong to Buyer following the Closing,
except that if prior to the end of the Due Diligence Period Seller has applied for a property tax refund or has appealed the County
Assessor's valuation of the Property for any period of time prior to the Closing Date, then Seller shall be entitled to any refund
applicable to such period (unless such refund must be credited to the Tenant of the Property by Buyer, in which case such refund
shall belong to Buyer to the extent of such required credits to the Tenant).

 

    	 	11	 

     

    

 

(f)       Private
Assessments.  Except to the extent such items are the responsibility of the Tenant, payments due under any assessments
imposed by private covenant shall be prorated as of the Closing.

 

(g)       Utilities.  Except
to the extent such items are the responsibility of the Tenant, prepaid water, sewer, and other utility charges shall be credited
to Seller, and accrued water, sewer, and other utility charges shall be credited to Buyer.

 

(h)       Other
Items.  All other items customarily prorated or required by any other provision of this Agreement to be prorated
or adjusted.

 

5.6.3       Credits.

 

(a)       Security
Deposits, Rent Concessions, Tenant Improvement Allowances and Other Tenant Credits.  The Buyer shall receive
at credit at Closing from the Seller in the amount of the sum of: (i) the Tenant Deposit; (ii) any and all rent concessions which
related to the current term of the Lease and are unpaid, unapplied and/or utilized; (iii) any and all tenant improvement allowances
which relate to the current term of the Lease and are unpaid, unapplied and/or utilized; and (iii) the cost, as estimated by the
parties in their reasonable discretion, of any and all non-monetary tenant inducement obligations of the Seller, as landlord under
the Lease, which relate to the current term of the Lease (e.g., painting and carpeting) and are unperformed.

 

(b)       Leasing
Commissions.  The Buyer shall receive a credit at Closing from the Seller in the amount of any and all leasing
commissions which relate to the current term of the Lease and are unpaid.

 

5.6.4       Re-prorations.  At
Closing, the amount of prorations and adjustments as aforesaid shall be determined or estimated to the extent practicable, and
monetary adjustment shall be made between Seller and Buyer. As the amounts of the respective items become finally ascertained,
further adjustment shall be promptly made between the parties in cash.

 

5.6.5       Survival.  The
provisions of this Section 5.8 shall survive the Closing.

 

5.7       Distribution
of Funds and Documents.  At the Close of Escrow, Escrow Holder shall do each of the following:

 

5.7.1       Intentionally
omitted.

 

5.7.2       Recorded
Documents.  Submit to the County Recorder of the County in which the Property is located the Deed and each other
document to be recorded under the terms of this Agreement or by general usage.

 

    	 	12	 

     

    

 

5.7.3       Non-Recorded
Documents.  Promptly after the Closing Date, deliver by overnight courier (or as otherwise requested by the intended
recipient): (i) the Title Policy to Buyer; (ii) each other non-recorded document received hereunder to the payee or person acquiring
rights thereunder or for whose benefit said document was acquired; (iii) a copy of each recorded document, conformed to show the
recording data thereon, to each party; and (iv) a fully executed original of each other closing document.

 

5.7.4       Distribution
of Funds.  Deliver (i) to Seller, or order, the cash portion of the Purchase Price, adjusted for prorations,
charges and other credits and debits provided for herein; and (ii) to Buyer, or order, any excess funds delivered to Escrow Holder
by Buyer. Such funds shall be delivered by wire transfer or cashier’s check in accordance with instructions for Seller and
Buyer; if no instructions are given, Escrow Holder shall deliver such funds by Escrow Holder’s check via overnight courier
(or as otherwise requested by the intended recipient) to the appropriate party at the address set forth for notice in this Agreement.
This Section 5.9 shall survive the Close of Escrow.

 

5.8       Completion
of Documents.  Escrow Holder is authorized to insert the date of Closing and otherwise to complete the
documents deposited in Escrow, where appropriate and in a manner consistent with this Agreement.

 

5.9       Possession
and Tenant Notices.  Possession of the Property shall be delivered to Buyer by Seller at the Closing,
subject only to the rights of the Tenant under the Lease, rights arising under any Property Contracts not terminated by Seller
pursuant to Section 3.4 above, and rights arising under the matters set forth in the Preliminary Report and permitted as part
of the Required Title Condition. Seller and Buyer covenant and agree to execute at Closing a written notice of the acquisition
of the Property by Buyer, in sufficient copies for transmittal to the Tenant affected by the sale and purchase of the Property
and properly addressed to the Tenant. Such notice shall be prepared by the Seller, at the Seller’s sole cost and expense,
and approved by the Buyer in its reasonable discretion, shall notify the Tenant of the sale and transfer and shall contain appropriate
instructions relating to the payment of future rentals, the giving of future notices and other matters reasonably required by Buyer
or required by law. Unless a different procedure is required by applicable law, in which event such laws shall be controlling,
Buyer agrees to transmit or otherwise deliver such letters to the Tenant promptly after the Closing.

 

ARTICLE 6

TERMINATION AND DEFAULT

 

6.1       Buyer
Default.  If the sale contemplated hereby is not consummated because of a material default by Buyer in
its obligation to purchase the Property in accordance with the terms of this Agreement, after Seller has performed or tendered
performance of all of its material obligations in accordance with this Agreement, then, upon written notice from Seller to Buyer,
(a) this Agreement shall terminate; (b) the Deposit shall be paid to and retained by Seller as liquidated damages; and (c) Seller
and Buyer shall have no further obligations to each other, except those which expressly survive the termination of this Agreement.
Buyer and Seller acknowledge that the damages to Seller in the event of such a breach of this Agreement by Buyer would be difficult
or impossible to determine, that the amount of the Deposit represents the parties’ best and most accurate estimate of the
damages that would be suffered by Seller if the transaction should fail to close and that such estimate is reasonable under the
circumstances existing as of the date of this Agreement and under the circumstances that Seller and Buyer reasonably anticipate
would exist at the time of such breach. Buyer and Seller agree that Seller’s right to retain the Deposit shall be Seller’s
sole remedy, at law and in equity, for Buyer’s failure to purchase the Property in accordance with the terms of this Agreement.
Seller hereby waives any right to an action for specific performance of any provisions of this Agreement.

 

    	 	13	 

     

    

 

6.2       Seller's
Default.  If prior to or at Closing, Seller fails to perform any of its obligations or is otherwise in
material default hereunder or breaches any representation or warranty of Seller contained in this Agreement, Buyer shall have the
right to elect exercise any of the following remedies:

 

6.2.1       Waive
such failure and proceed to the Closing with no reduction in the Purchase Price; provided, however, that this provision will not
limit Buyer’s right to receive reimbursement for reasonable attorney’s fees pursuant to Section 9.9 below in connection
with any legal proceedings instituted by either party or Escrow Holder with respect to the enforcement of this Agreement, nor waive
or affect Seller's indemnity obligations under this Agreement or Buyer's rights to enforce those indemnity obligations, nor waive
or affect any of Seller's other obligations under this Agreement to be performed after the Closing or Buyer's rights to enforce
those obligations.

 

6.2.2       Exercise
any of its other rights or remedies Buyer may have at law or in equity, including without limitation, an action for specific performance
to cause Seller to convey the Property to Buyer pursuant to the terms and conditions of this Agreement.

 

6.2.3       Terminate
this Agreement by notice to Seller to that effect, in which event the parties hereto shall have no further obligations hereunder,
except those which expressly survive termination hereof, to promptly recover the full amount of the Deposit and to recover all
damages and seek such other relief at law or in equity to which Buyer may be entitled as a result of Seller's breach.

 

ARTICLE 7

CASUALTY DAMAGE OR
CONDEMNATION

 

7.1       Casualty.  If
the Improvements are damaged by casualty prior to the Closing, Buyer shall have the option, in Buyer’s sole and absolute
discretion, to elect either to:

 

(a)       acquire
the Property as is (without reduction in the Purchase Price), plus an assignment from Seller without recourse or credit of any
insurance proceeds payable by virtue of such loss or damage, plus a credit for any deductible under said policy and a credit for
any uninsured loss; or

 

(b)       terminate
this Agreement and receive back the Deposit.

 

Such right
must be exercised within thirty (30) days from the earlier of the date Seller provides Buyer with notice of the loss of the event
giving rise to such right or the date of Buyer’s knowledge of the casualty. If Buyer fails to provide notice of an election,
then Buyer shall have been deemed to elect (b) above.

 

    	 	14	 

     

    

 

7.2       Condemnation.  In
the event that a condemnation proceeding shall be initiated against any portion of the Real Property prior to the Closing, Buyer
shall have the option, in Buyer’s sole and absolute discretion, to elect either to:

 

(a)       terminate
this Agreement and receive back the Deposit; or

 

(b)       close
the transaction contemplated by this Agreement.

 

In all other cases,
or if Buyer elects to proceed under Section 7.2(b), Buyer shall purchase the Property in accordance with the terms hereof
(without reduction in the Purchase Price) and Seller shall assign to Buyer at Closing all condemnation proceeds payable as a result
of such condemnation. Buyer shall be deemed to have elected to proceed under Section 7.2(b) unless, within thirty (30)
days from the earlier of written notice of the condemnation or Buyer’s knowledge of the condemnation, Buyer provides Seller
with written notice that Buyer elects to terminate this Agreement pursuant to Section 7.2(a).

 

ARTICLE 8

REAL ESTATE COMMISSION

 

8.1       Commissions.  Buyer
and Seller each represent to the other that no broker’s or real estate commissions or other fees are or shall be due in respect
to this transaction by reason of any agreement made or which may be alleged to have been made by Buyer or Seller. Each party agrees
to indemnify and hold harmless the other from and against any and all claims, demands or the cost or expense thereof, including
reasonable attorney’s fees, arising out of any broker’s commission, fee or other compensation due or alleged to be
due in connection with the transactions contemplated by this Agreement based upon an agreement alleged to have been made or other
action alleged to have been taken by the indemnifying party.

 

ARTICLE 9

MISCELLANEOUS

 

9.1       Entire
Agreement.  This Agreement constitutes the entire agreement between the parties hereto with respect to
the transactions contemplated herein, and it supersedes all prior discussions, understandings or agreements between the parties.
All Exhibits and Schedules attached hereto are a part of this Agreement and are incorporated herein by reference.

 

9.2       No
Third Party Beneficiaries.  The parties acknowledge and agree that there are no third party beneficiaries of
this Agreement.

 

9.3       Binding
On Successors and Assigns.  Subject to Section 9.4, this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns.

 

9.4       Assignment
by Buyer.  Buyer shall have the right to assign this Agreement to any entity affiliated with Buyer, and
no consent on the part of Seller shall be required for such assignment; provided, however, that Seller shall not be released from
this Agreement by any such assignment, and Buyer shall provide written notice to Seller of such assignment at least five (5) days
prior to the Closing.

 

    	 	15	 

     

    

 

9.5       Waiver.  The
excuse or waiver of the performance by a party of any obligation of the other party under this Agreement shall only be effective
if evidenced by a written statement signed by the party so excusing or waiving. No delay in exercising any right or remedy shall
constitute a waiver thereof, and no waiver by Seller or Buyer of the breach of any covenant of this Agreement shall be construed
as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement.

 

9.6       Governing
Law.  This Agreement shall be governed by and construed under the internal laws of the State where the
Real Property is located, without regard to the principles of conflicts of law.

 

9.7       Counterparts
and Signatures.  This Agreement may be executed in any number of counterparts, and it shall be sufficient
that the signature of each party appear on one or more such counterparts. All counterparts shall collectively constitute a single
agreement. Signatures transmitted by e-mail or facsimile shall be treated as original signatures for all purposes of this Agreement.

 

9.8       Notices.  All
notices or other communications required or provided to be sent by either party shall be in writing and shall be sent by: (i) United
States Postal Service, certified mail, return receipt requested; (ii) any nationally known overnight delivery service for
next day delivery; (iii) facsimile with written confirmation of receipt from sending facsimile machine; (iv) delivered
in person; or (v) e-mail. All notices shall be deemed to have been given on the date when deposited with the US Mail or with any
other nationally known overnight delivery service, on the date when a facsimile or e-mail is sent or on the date of personal delivery.
All notices shall be addressed to the parties at the addresses below:

 

    	 	16	 

     

    

 

	To Seller:	Medalist Properties 8, LLC
	 	c/o Medalist Properties
	 	11 S. 12th Street, Suite 401
	 	Richmond, VA 23219
	 	Attn: William R. Elliott
	 	Telephone: (804) 344-4434
	 	Email: bill.elliott@medalistprop.com
	 	 
	To Buyer:	Medalist Diversified Holdings, L.P.
	 	c/o Medalist Properties
	 	11 S. 12th Street, Suite 401
	 	Richmond, VA 23219
	 	Attn: William R. Elliott
	 	Telephone: (804) 344-4434
	 	Email: bill.elliott@medalistprop.com
	 	 
	And with a copy to:	Kaplan Voekler Cunningham & Frank, PLC
	 	1401 E. Cary Street
	 	Richmond, Virginia 23219
	 	Attn: Zachary Grabill, Esq.
	 	Telephone: (804) 823-4071
	 	Facsimile: (804) 823-4099
	 	E-mail: zgrabill@kv-legal.com

 

Any address or name specified above may
be changed by notice given to the addressee by the other party in accordance with this Section 9.8. The inability to deliver
notice because of a changed address of which no notice was given as provided above, or because of rejection or other refusal to
accept any notice, shall be deemed to be the receipt of the notice as of the date of such inability to deliver or rejection or
refusal to accept. Any notice to be given by any party hereto may be given by the counsel for such party.

 

9.9       Attorneys’
Fees.  In the event of a judicial or administrative proceeding or action by one party against the other
party with respect to the interpretation or enforcement of this Agreement, the prevailing party shall be entitled to recover reasonable
costs and expenses including, without limitation, reasonable attorneys’ fees and expenses, whether at the investigative,
pretrial, trial or appellate level. The prevailing party shall be determined by the court based upon an assessment of which party’s
major arguments or position prevailed.

 

9.10       IRS
Real Estate Sales Reporting.  Buyer and Seller agree that Escrow Holder shall act as “the person
responsible for closing” the transaction which is the subject of this Agreement pursuant to Internal Revenue Code Section 6045(e) and
shall prepare and file all informational returns, including without limitation, IRS Form 1099-S, and shall otherwise comply with
the provisions of Internal Revenue Code Section 6045(e).

 

    	 	17	 

     

    

 

9.11       Time
Periods.  If the time for performance of any obligation hereunder expires on a day that is not a Business
Day, the time for performance shall be extended to the next Business Day.

 

9.12       Modification
of Agreement.  No modification of this Agreement shall be deemed effective unless in writing and signed
by the party against whom enforcement is sought.

 

9.13       Further
Instruments.  Each party, promptly upon the request of the other, shall execute and have acknowledged
and delivered to the other or to the Escrow Holder, as may be appropriate, any and all further instruments reasonably requested
or appropriate to evidence or give effect to the provisions of this Agreement and which are consistent with the provisions of this
Agreement. This provision shall survive the Closing.

 

9.14       Descriptive
Headings; Word Meaning.  The descriptive headings of the paragraphs of this Agreement are inserted
for convenience only and shall not control or affect the meaning or construction of any provisions of this Agreement. Words such
as “herein,” “hereinafter,” “hereof’ and “hereunder” when used in reference to
this Agreement, refer to this Agreement as a whole and not merely to a subdivision in which such words appear, unless the context
otherwise requires. The singular shall include the plural and the masculine sender shall include the feminine and neuter, and vice
versa, unless the context otherwise requires. The word “including” shall not be restrictive and shall be interpreted
as if followed by the words “without limitation.”

 

9.15       Business
Day.  As used herein, the term “Business Day” means any day other than Saturday,
Sunday and any day which is a legal holiday in the State of North Carolina.

 

9.16       Construction
of Agreement.  This Agreement shall not be construed more strictly against one party than against the
other merely by virtue of the fact that it may have been prepared primarily by counsel for one of the parties, it being recognized
that both Buyer and Seller have contributed substantially and materially to the preparation of this Agreement.

 

9.17       Severability.  The
parties hereto intend and believe that each provision in this Agreement comports with all applicable local, state and federal laws
and judicial decisions. However, if any provision in this Agreement is found by a court of law to be in violation of any applicable
local, state or federal law, statute, ordinance, administrative or judicial decision, or public policy, or if in any other respect
such a court declares any such provision to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent
of all parties hereto that, consistent with and with a view towards preserving the economic and legal arrangements among the parties
hereto as expressed in this Agreement, such provision shall be given force and effect to the fullest possible extent, and that
the remainder of this Agreement shall be construed as if such illegal, invalid, unlawful, void or unenforceable provision were
not contained herein, and that the rights, obligations and interests of the parties under the remainder of this Agreement shall
continue in full force and effect.

 

    	 	18	 

     

    

 

9.18       Exclusivity.  After
the Effective Date, Seller and its respective agents, representatives and employees shall immediately cease all marketing of the
Property until such time as this Agreement is terminated and Seller shall not directly or indirectly make, accept, negotiate, entertain
or otherwise pursue any offers for the sale of the Property.

 

9.19       Section 1031
Exchange.  Either party may consummate the purchase or sale of the Property as part of a so-called like
kind exchange (an “Exchange”) pursuant to section 1031 of the Internal Revenue Code of 1986, as
amended (the “Code”), provided that (i) the Closing shall not be delayed or affected by reason of
an Exchange nor shall the consummation or accomplishment of any Exchange be a condition precedent or condition subsequent to a
party’s obligations under this Agreement; (ii) any party desiring an Exchange shall effect its Exchange through an assignment
of this Agreement, or its rights under this Agreement, to a qualified intermediary and the other party shall not be required to
take an assignment of the purchase agreement for the relinquished or replacement property or be required to acquire or hold title
to any real property for purposes of consummating such Exchange; and (iii) the party desiring an Exchange shall pay any additional
costs that would not otherwise have been incurred by Buyer or Seller had such party not consummated its purchase or sale through
an Exchange. Neither party shall by this agreement or acquiescence to an Exchange desired by the other party (1) have its
rights under this Agreement affected or diminished in any manner or (2) be responsible for compliance with or be deemed to
have warranted to the other party that such party’s Exchange in fact complies with section 1031 of the Code.

 

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

 

    	 	19	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first written above.

 

	SELLER:	 	
        MEDALIST PROPERTIES
        8, LLC, a

        

	 	 	Delaware limited liability company
	 	 	 
	 	 	By:	Medalist Fund Manager, Inc., a
	 	 	 	Virginia corporation
	 	 	Its:	Manager
	 	 	 	 
	 	 	 	By:	/s/ William R. Elliot
	 	 	 	Name:	William R. Elliot
	 	 	 	Title:	Manager

 

    	 	20	 

     

    

 

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

         

 

    	 	21	 

     

    

 

CONSENT OF ESCROW HOLDER

 

The undersigned Escrow
Holder hereby agrees to (i) accept the foregoing Agreement, (ii) be Escrow Holder under said Agreement and (iii) be
bound by said Agreement in the performance of its duties as Escrow Holder; provided, however, the undersigned shall have no obligations,
liability or responsibility under this Consent or otherwise unless and until said Agreement, fully signed by the parties, has been
delivered to the undersigned.

 

	 	 	 	 
	DATED:	8/16/16	 	     GRS Group
	 	 	 	 
	 	 	 	 
	 	 	 	By:/s/ SW Fr
	 	 	 	Its: Director___________________________________

 

    	 	22	 

     

    

 

EXHIBIT “A”

 

LEGAL DESCRIPTION

 

THAT CERTAIN PROPERTY LOCATED IN GUILFORD
COUNTY, NORTH CAROLINA AND BEING ALL OF LOT 2, IDLEWILD/DEEP RIVER PROPERTY AS SHOWN ON PLAT RECORDED IN PLAT BOOK 118, PAGE 140,
AFORESAID COUNTY REGISTRY.

 

TOGETHER WITH ALL EASEMENT RIGHTS
IN AND TO THAT STORM WATER DETENTION EASEMENT AS SET OUT IN DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS RECORDED IN BOOK
4297, PAGE 1361, GUILFORD COUNTY REGISTRY.

 

    EXHIBIT “A”
1 

     

    

 

EXHIBIT “B”

 

LIST OF PERSONAL PROPERTY

 

[To be Attached]

 

    EXHIBIT “B”
1 

     

    

 

EXHIBIT “C”

 

“Rent Roll”

 

    EXHIBIT “C”
1 

     

    

 

EXHIBIT “D”

 

CURRENT PROPERTY CONTRACTS

 

[To be Attached in the Following Format]

 

 

	Contract	Description	Date
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    EXHIBIT “D”
1 

     

    

 

Schedule 4.1.12

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