Document:

Exhibit 10.27

 

	
        RECORDATION REQUESTED BY:

        Langley Federal Credit Union, 721 Lakefront Commons, Newport News,
        VA 23606

         

        WHEN RECORDED MAIL TO:

        Langley Federal Credit Union,721 Lakefront Commons, Newport
News, VA 23606’’

         

        SEND TAX NOTICES TO:

        Langley Federal Credit Union, 721 Lakefront Commons, Newport News,
        VA23606 Tax Map Reference No(s):

         

        8714-64-9344
	 

 

MODIFICATION OF DEED OF TRUST

 

.

THE PURPOSE
OF THIS MODIFICATION IS TO MODIFY THE TERMS OF A DEED OF TRUST FROM COF NORTH, LLC (“ORIGINAL GRANTOR”) TO DONALD C. SCHULTZ
AND CURTIS A. BAKER, TRUSTEES, FOR THE BENEFIT OF LANGLEY FEDERAL CREDIT UNION DATED OCTOBER 16, 2017, EFFECTIVE NOVEMBER 3, 2017,
RECORDED NOVEMBER 3,·2017, IN THE CLERK’S OFFICE, CIRCUIT COURT, HANOVER COUNTY, VIRGINIA IN DEED BOOK 3189, PAGE 2489,
SECURING AND EXISTING DEBT WITH LENDER, WHICH. DEBT IS SECURED, IN PART, BY THE DEED OF TRUST ON WHICH RECORDATION TAXES HAVE BEEN
PAID. PURSUANT TO SECTION 58.1-803 (D) OF THE 1950 CODE OF VIRGINIA, AS AMENDED, RECORDATION TAXES ON THIS MODIFICATION HAVE BEEN
BASED IN THE DIFFERENCE BETWEEN THE INCREASED FACE AMOUNT OF THE DEBT SECURED BY THE DEED OF TRUST PURSUANT TO THIS MODIFICATION
($8,900,000.00) AND THE PRINCIPAL AMOUNT OF THE ORIGINAL DEBT SECURED BY THE DEED OF TRUST ($8,600,000.00).

 

THIS MODIFICATION DEED OF TRUST
is dated May 8, 2018, is made and executed among MDR HANOVER SQUARE, LLC, a Delaware limited liability company; and PMI
HANOVER SQ. LLC, a Delaware limited liability company, whose mailing address is 11 S. 12th Street, Suite 401, Richmond,
VA 23219 (“Grantor”); Curtis A. BAKER, a resident of Virginia, whose address is 721 Lakefront Commons, Newport
News, Virginia 23606, and Donald C. SCHULTZ, a resident of Virginia, whose address is 150 West Main Street, Suite 1500,
Norfolk, Virginia 23510 (“Grantee,’’ also referred to below as “Trustee”); and LANGLEY FEDERAL CREDIT UNION, whose address
is 721 Lakefront Commons, Newport News, VA 23606 (“Lender”).

 

DEED OF TRUST.
Original Grantor executed and delivered to Trustee a Deed of Trust dated November 3, 2017 (the “Deed of Trust”) recorded
pursuant to Virginia Code Section 58.1-803 (D). Recordation taxes are based on $300,000.00 being the difference between the original
loan amount of $8,600,000.00 and the new limit of $8,900,000.00 with respect to certain real property more particularly described
in the Deed of Trust and commonly known as Real Property located at 7230 Bell Creek Road, Mechanicsville, VA 23111. The Deed of
Trust provides that any Trustee may act alone to exercise all the rights and powers of any other Trustee.

 

MODIFICATION. Lender
and Grantor hereby modify the Deed of Trust as follows:

 

Increase the
amount of the Indebtedness and Note to $8,900,000.00 as evidenced by a Change in Terms Agreement executed by MDR Hanover Square,
LLC, PMI Hanover Sq. LLC, William R. Elliott, Thomas E. Messier, Kurt A. Schirm, Peter Mueller, Inc., and Langley Federal Credit
Union and dated May 8,2018.

 

CONTINUING VALIDITY. Except as
expressly modified above, the terms of the original Deed of Trust shall remain unchanged and in full force and effect. Consent
by Lender to this Modification does not waive Lender’s right to require strict performance of the Deed of Trust as changed above
nor obligate Lender to make any future modifications. Nothing in this Modification shall constitute a satisfaction of the promissory
note or other credit agreement secured by the Deed of Trust (the “Note”). It is the intention of Lender to retain as
liable all parties to the Deed of Trust and all parties, makers and endorsers to the Note, including accommodation parties, unless
a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, shall not be released
by virtue of this Modification. If any person who signed the original Deed of Trust does not sign this Modification, then all persons
signing below acknowledge that this Modification is given conditionally, based on the representation to Lender that the non-signing
person consents to the changes and provisions of this Modification or otherwise will not be released by it. This waiver
applies not only to any initial extension or modification, but also to all such subsequent actions. Grantor hereby ratifies and
affirms that Grantor’s liability shall continue in full force and effect through and including the Note’s now extended maturity
date and that Grantor has no defenses, setoffs, or other claims against Lender arising out of this credit facility. If it is determined
that any other person or entity other than Lender shall have a lien, encumbrance, or claim of any type which has a legal priority
over any term of this Modification, the original terms of the Note and Deed of Trust shall be severable from this Modification
and separately enforceable from the terms thereof as modified hereby in accordance with their original terms, and Lender shall
maintain all legal or equitable priorities which were in existence before the date of execution of this Modification. It is understood
by and is the intention of the parties hereto that any legal or equitable priorities of Lender over any party which were in existence
before the date of execution of this Modification shall remain in effect after the execution of this Modification.

 

     

     

    

 

MODIFICATION
OF DEED OF TRUST

(Continued)

	Loan
    No. 5510060956801	Page 2

 

 

 

CONSENT OF TRUSTEE. Trustee
hereby consents to the modifications effected by the Modification. By their execution
of this Modification Grantor and Lender expressly consent to and authorize Trustee to execute this
Modification.

 

Unless otherwise
defined herein, capitalized words and terms shall have the meaning as used in the Deed of Trust. Unless specifically stated to
the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms
used in the singular shall include the plural and the plural shall include the singular, as the context may require. Words and
terms not otherwise defined in this Agreement on in the Deed of Trust shall have the meanings attributed to such terms in the Uniform
Commercial Code.

 

GRANTOR ACKNOWLEDGES
HAVING READ ALL THE PROVISIONS OF THIS MODIFICATION OF DEED OF TRUST AND GRANTOR AGREES TO ITS TERMS. THIS MODIFICATION OF. DEED
OF TRUST IS DATED MAY 8, 2018.’

 

THIS MODIFICATION IS GIVEN UNDER
SEAL AND IT IS INTENDED THAT THIS MODIFICATION IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED
INSTRUMENT ACCORDING TO LAW.

 

 

     

     

    

 

MODIFICATION
OF DEED OF TRUST

(Continued)

	Loan
    No. 5510060956801	Page 3

 

 

 

	GRANTOR :
	 	 
	MDR HANOVER SQUARE, LLC, a Delaware limited liability company
	 	 
	BY: MEDALIST DIVERSIFIED HOLDINGS L.P., a Delaware limited partnership 
	 	 
	Its: Sole Member
	 	 
	BY: MEDALIST DIVERSIFIED REIT, INC., a Maryland corporation Its: General Partner
	 	 	 
	BY: 	/s/ William R. Elliott	(SEAL)	 
	 	 	 
	 	William R. Elliott 	 	 
	 	Co-President	 	 

 

 

 

LIMITED LIABILITY COMPANY ACKNOWLEDGMENT

 

	STATE OF	Virginia	 )	 
	 	 	 )ss	 
	CITY OF	Richmond	 )	 

 

On this 7th
            day of May, 2018, before me, the undersigned Notary
Public, personally appeared William R. Elliott, Co-President of Medalist Diversified REIT, Inc., a Maryland corporation, the
General Partner of Medalist Diversified Holdings, L.P., a Delaware limited partnership, the Sole Member of MDR Hanover
Square, LLC, a Delaware limited liability company, and known to me to be a member or designated agent of the
limited liability company that executed the Modification of Deed of Trust and acknowledged the Modification to be the free
and voluntary act and deed of the limited liability company, by authority of statute, its articles of organization or its
operating agreement, for the uses and purposes therein mentioned, and on oath stated that he or she is authorized to execute
this Modification on behalf of the limited liability company.

 

	By: 	Casey Buchanon	 	Residing at 	City of Richmond

 

	Notary Public in and for 	Virginia	 	My Commission expires 	4/30/2021

 

	 	 	My registration number is 	7748329
	 	 	 
	[Seal]	 	 

 

     

     

    

 

MODIFICATION
OF DEED OF TRUST

(Continued)

	Loan
    No. 5510060956801	Page 4

 

 

 

	GRANTOR:
	 	 
	PMI HANOVER SQ. LLC, a Delaware limited liability company
	 	 
	BY: Peter Mueller, Inc., a Virginia corporation
	Its: Manager
	 	 	 
	BY: 	/s/ Kurt A. Schirm	(Seal)	 
	 	 	 
	
         
	Kurt . Schirm

        President
	 	 

 

LIMITED LIABILITY COMPANY ACKNOWLEDGMENT

 

	STATE OF 	Tennessee	 )	 
	 	 )ss	 
	COUNTY OF 	Blount	 )	 

 

On
this 2 day of May, 2018 before me, the undersigned Notary Public, personally appeared Kurt A. Schirm, President
of Peter Mueller, Inc., a Virginia corporation, the Manager of PMI Hanover Sq. LLC, a Delaware limited liability company and known
to me to be a member or designated agent of the limited liability company that executed the Modification of Deed of Trust and
acknowledged the Modification to be the free and voluntary act and deed of the limited liability company, by authority of statute,
its articles of organization or its operating agreement, for the uses and purposes therein mentioned, and on oath stated that
he or she is authorized to execute this Modification and in fact executed the Modification on behalf of the limited

 

	By: 	Rachel Wiers	 	Residing at 	1175 Meridian Blvd #114

 

	Notary Public in and for 	Tennessee	 	My Commission expires 	05/27/2020

 

	 	 	My registration number is 	N/A

 

	[Seal]	 

 

     

     

    

 

MODIFICATION
OF DEED OF TRUST

(Continued)

	Loan
    No. 5510060956801	Page 5

 

 

 

	TRUSTEE:	 	 
	 	 	 
	X	/s/ Curtis A. Baker	(SEAL)	 
	 	 	 
	 	Curtis A. BAKER	 	 

 

 

 

TRUSTEE ACKNOWLEDGMENT

 

	STATE OF	Virginia	 )	 
	 	 	 )ss	 
	COUNTY OF	Newport News	 )	 

 

On this day before me, the undersigned Notary Public,
personally appeared Curtis A. BAKER, to me known to be the individual described in and who executed the Modification of Deed of
Trust as a Trustee of Langley Federal Credit Union, and acknowledged that he or she signed the Modification as his or her free
and voluntary act and deed, for the uses and purposes therein mentioned.

 

Given under my hand and official seal this 7th
day of May       , 2018.

 

	By: 	Tracey Pesante	 	Residing at 	Newport News, Virginia

 

	Notary Public in and for 	Newport News, VA	 	My Commission expires 	4/30/22

 

	 	 	My registration number is 	7595763

 

	[Seal]	 

 

     

     

    

 

MODIFICATION
OF DEED OF TRUST

(Continued)

	Loan
    No. 5510060956801	Page 6

 

 

 

	TRUSTEE:	 	 
	 	 	 
	X	/s/ Donald C. Schultz	(SEAL)	 
	 	 	 
	 	Donald C. SCHULTZ	 	 

 

 

 

TRUSTEE ACKNOWLEDGMENT

 

	STATE OF	Virginia	 )	 
	 	 	 )ss	 
	CITY OF	Norfolk	 )	 

 

On this day before me, the undersigned Notary Public,
personally appeared Donald C. Shultz, to me known to be the individual described in and who executed the Modification of Deed of
Trust as a Trustee of Langley Federal Credit Union, and acknowledged that he or she signed the Modification as his or her free
and voluntary act and deed, for the uses and purposes therein mentioned.

 

Given under my hand and official seal this 7th
day of May      , 2018.

 

	By: 	Leslie Johnston Voegelin	 	Residing at 	Chesapeake, Virginia

 

	Notary Public in and for 	The Commonwealth of Virginia, AT LARGE	 	My Commission expires	 3/31/19

 

	 	 	My registration number is 	211434

 

	[Seal]	 

 

     

     

    

 

MODIFICATION
OF DEED OF TRUST

(Continued)

	Loan
    No. 5510060956801	Page 7

 

 

 

	LENDER:	 	 
		 	 
	LANGLY FEDERAL CREDIT UNION	 	 
	 	 	 
	X 	/s/ Roberta Powell	 (SEAL)	 
	 	Authorized Officer	 	 

 

 

 

LENDER ACKNOWLEDGMENT

 

	STATE OF 	Virginia	 )	 
	 	 )ss	 
	COUNTY OF 	Newport News	 )	 

 

On this 7th day of May, 2018, before me, the
undersigned Notary Public, personally appeared Roberta Powell and known to me to be the Sr. Commercial Loan Officer, authorized
agent for Langley Federal Credit Union that executed the within and foregoing instrument and acknowledged said instrument to be
the free and voluntary act and deed of directors or otherwise, for the uses and purposes therein mentioned, and on oath stated
that he or she is authorized to execute this said instrument and in face executed this said instrument on behalf of Langley Federal
Credit Union.

 

	By: 	Tracey Pesante	 	Residing at 	Newport News, Virginia

 

	Notary Public in and for 	Virginia	 	My Commission expires 	4/30/22

 

	 	 	My registration number is 	7595763
	 	 	 
	[Seal]Exhibit 10.28

 

TENANTS IN COMMON AGREEMENT

 

This Tenants in Common
Agreement (“Agreement”) is made and effective as of May 8, 2018, by and among PMI Hanover SQ, LLC, a Delaware limited
liability company, with an address at 406 Page Road, Nashville, TN 37205 (“PMI Hanover”), and MDR Hanover Square, LLC,
a Delaware limited liability company, with an address at 11 S. 12th Street, Suite 401, Richmond, VA 23219 (“Medalist”)
(PMI Hanover and Medalist are each sometimes referred to as a “Tenant in Common” or collectively as the “Tenants
in Common”), with reference to the facts set forth below.

 

RECITALS

 

A.           PMI
Hanover owns an undivided sixteen percent (16%) tenant in common interest, and Medalist owns an undivided eighty-four percent (84%)
tenant in common interest (each such percentage interest being referred to as the “Interest” of such Tenant in Common),
in certain real property and improvements thereon, currently including a retail shopping center, located at Bells Creek Road, Mechanicsville,
Hanover County, Virginia, as more particularly described in Exhibit A attached hereto and incorporated herein (“Property”).
The percentage interest in the Property of any Tenant in Common, as adjusted from time to time pursuant to the terms hereof, shall
be such Tenant in Common’s “Pro Rata Share”.

 

B.           The
Tenants in Common desire to enter into this Agreement to provide for the orderly administration of the Property, to delegate authority
and responsibility for the operation and management of the Property and to further set forth the rights and obligations of the
Tenants in Common concerning the Property.

 

NOW, THEREFORE, in
consideration of the mutual covenants and conditions contained in this Agreement and for other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties agree as set forth below.

 

1.            Nature
of Relationship Between Co-Tenants.

 

1.1           Tenants
in Common Relationship; No Partnership. The Tenants in Common shall each hold their respective undivided tenancy in common
interests in the Property (the “Interests”) as tenants-in-common. The Tenants in Common intend to take and hold the
Property for investment purposes only. The Tenants in Common do not intend by this Agreement to create a partnership or joint venture
among themselves, but merely to set forth the terms and conditions upon which each of them shall hold their respective Interests.
In addition, the Tenants in Common do not intend to create a partnership or joint venture with the Property Manager (as defined
below). Therefore, each Tenant in Common hereby elects to be excluded from the provisions of Subchapter K of Chapter 1
of the Internal Revenue Code of 1986, as amended (the “Code”) pursuant to Section 761(a) of the Code, with respect
to the tenancy in common ownership of the Property. The exclusion elected by the Tenants in Common hereunder shall commence with
the execution of this Agreement.

 

1.2           Reporting
as Direct Owners and Not a Partnership. Each Tenant in Common hereby covenants and agrees to report on his federal and state
income tax returns all items of income, deduction and credits which result from his Interests. All such reporting shall be consistent
with the exclusion of the Tenants in Common from Subchapter K of Chapter 1 of the Code, commencing with the first taxable
year following the execution of this Agreement. Further, each Tenant in Common covenants and agrees not to notify the Commissioner
of Internal Revenue that he desires that Subchapter K of Chapter 1 of the Code apply to the Tenants in Common. No Tenant in
Common shall file a partnership or corporate tax return, conduct business under a common name, or execute any agreement identifying
any or all of the Tenants in Common as partners, shareholders or members of a business entity, or otherwise hold themselves out
as partners, shareholders, or members of a business entity.

 

1.3           Indemnity.
Each Tenant in Common hereby agrees to indemnify, protect, defend and hold the other Tenant in Common free and harmless from all
costs, liabilities, tax consequences and expenses (for example, taxes, interest and penalties), including, without limitation,
attorneys’ fees and costs, which may result from any Tenant in Common so notifying the Commissioner in violation of this
Agreement or otherwise taking a contrary position on any tax return, report or other document.

 

    	

     

    

 

1.4           No
Agency. No Tenant in Common is authorized to act as agent for, to act on behalf of, or to do any act that will bind, any
other Tenant in Common, or to incur any obligations with respect to the Property. No Treatment of Co-Ownership as an Entity.
The Owners shall not file a partnership or corporate tax return, conduct business under a common name, execute an agreement
identifying any or all of the Owners as partners, shareholders or members of a business entity, or otherwise hold themselves
out as partners, shareholders, or members of a business entity.

 

2.            Management.

 

2.1           Management
Agreement. Concurrently with the acquisition of the Property, the Tenants in Common will enter into a Management Agreement
(“Management Agreement”) with [Shockoe Commercial Properties], LLC (“Property Manager”). Pursuant to the
Management Agreement, the Property Manager shall be the sole and exclusive manager of the Property to act on behalf of the Tenants
in Common with respect to the management, operation, maintenance and leasing of the Property until the Management Agreement is
terminated in accordance with its terms. All of the terms, covenants and conditions of the Management Agreement are hereby incorporated
herein. The Management Agreement shall be renewable no less frequently than annually. Fees paid to the Property Manager shall not
depend in whole or in part on the income or profits derived by any person from the Property and shall not exceed the fair market
value of the Property Manager’s services.

 

2.2           Management
Services. The Property Manager’s services shall be limited to customary services typically performed to manage the Property
on behalf of the Tenants in Common, such as collecting rents, paying property taxes and insurance premiums, arranging for repair
and maintenance of the Property, utilities, heat, air conditioning, trash removal, parking for the Property and paying such expenses,
and providing other customary services. The amount of rent paid by a lessee shall not be based on a percentage of net income, cash
flow, increases in equity, or otherwise depend in whole or in part on the income or profits derived by the lessee.

 

2.3           Accounts,
Books and Records and Statements. The Property Manager, on behalf of the Owners, shall open and maintain all accounts necessary
or desirable in connection with ownership of the Property, shall maintain adequate books and records of the Property operations,
and shall provide monthly reports to the Tenants in Common on the operations of the Property.

 

3.            Decisions
of the Tenants in Common.

 

3.1.          Approvals.
The Tenants in Common shall unanimously approve (i) any lease, sublease, deed restriction, or grant of easement of/on all or any
portion of the Property, provided that the conveyance of leases or subleases or portions of the Property pursuant to contracts
with third parties that have been previously approved by the Tenants in Common shall not require the further approval of the Tenants
in Common, (ii) any sale or exchange of the Property, (iii) any indebtedness or loan, and any negotiation or refinancing thereof,
secured by a lien on the Property, (iv) any successor or replacement Property Manager, (v) annual budgets for development and operations
of the Property, (vi) any contracts, renewals and amendments thereof, and any transactions with parties affiliated with any Tenant
in Common or the Property Manager including the Management Agreement, and (vii) any successor or replacement Property Manager.
Whenever this Agreement provides that the Tenants in Common shall be entitled to vote upon a matter, each Tenant in Common shall
be entitled to vote in proportion to its Pro Rata Share.

 

3.2.          Deadlock.
In the event the Tenants in Common cannot agree on any matter requiring unanimous approval under this Section, any Tenant in Common
shall have the right to invoke the dispute resolution provisions of Exhibit B, and if such Deadlock (as defined in Exhibit
B attached hereto) is not resolved under the provisions of Exhibit B then any Tenant in Common may invoke the buy/sell procedures
set forth in Section 10.

 

3.3           Meetings.
There shall be no scheduled or periodic meetings of the Tenants in Common, but a meeting of the Tenants in Common may be called
by the Property Manager or by any Tenant in Common by providing written notice of such meeting to all parties hereto not less than
ten (10) nor more than sixty (60) days prior to the date of such meeting (unless all Tenants in Common agree to an earlier date).
The notice shall state the nature of the business to be discussed at the meeting. The Property Manager and each Tenant in Common
shall exert reasonable efforts to attend such meeting (or participate in such meeting via telephone).

 

    	 	2	 

     

    

 

3.4           Approval
of Langley Federal Credit Union Loan. The Tenants in Common are concurrently herewith assuming an Eight Million Nine Hundred
Thousand and 00/100 Dollars $8,900,000.00 commercial mortgage loan from LANGLEY FEDERAL CREDIT UNION (together with any of its
respective affiliates and/or any of its or their respective successors and/or assigns, being referred to herein as the “Lender”)
for the financing of the Property (the "Mortgage Loan") and, in connection therewith, entering into various documents
evidencing and securing the Mortgage Loan, secured by a blanket lien on the Property, but may execute contribution and indemnity
agreements, subordinate to the Lender’s Loan, to share the liability as between the Tenants in Common in proportion to their
Pro Rata Shares. The Tenants in Common hereby ratify, approve and confirm the Assignment, Assumption and Release Agreement dated
as of May 8, 2018 with Lender and Loan Documents with respect to the Mortgage Loan. The execution and delivery by the Tenants in
Common of all documents, instruments and agreements in connection with the Mortgage Loan (collectively, the “Mortgage Loan
Documents”) conclusively evidences that such execution and delivery has been duly authorized by all requisite action on the
part of the Tenants in Common as tenants in common under this Agreement. In addition, for so long as any obligations of the Tenants
in Common under the Mortgage Loan remain outstanding, the Tenants in Common shall comply with the covenants and restrictions set
forth on the Addendum to this Agreement.

 

4.            Income
and Liabilities; Bank Accounts.

 

4.1           Income
and Liabilities. Except as otherwise provided herein and in the Management Agreement, each of the Tenants in Common shall be
entitled to all benefits and obligations of ownership of the Property based on their Pro Rata Shares. Accordingly, each of the
Tenants in Common shall (a) be entitled to all benefits of ownership of the Property, on a gross and not a net basis, including,
without limitation, all items of income and proceeds from sale or refinance or condemnation, in proportion to their respective
Interests, and (b) bear, and shall be liable for, payment of all expenses of ownership of the Property, on a gross and not a net
basis, including by way of illustration, but not limitation, all operating expenses and expenses of sale or refinancing or condemnation,
burdens, obligations, duties, liabilities, costs and expenses of the Property, in proportion to their respective Interests, except
for such amounts as may be reasonably determined by the Property Manager to be retained for reserves or improvements in accordance
with the Management Agreement.

 

4.2           Bank
Accounts. Subject to the Mortgage Loan Documents, the funds, income and revenues of the Property shall be deposited in such
separate co- tenancy bank account or accounts in such bank or banks as shall be determined by, and in the sole discretion of the
Tenants in Common. The Tenants in Common shall be entitled to receive copies of monthly bank statements from all accounts maintained
for the benefit of the Property or Tenants in Common. In all events, the Property Manager shall cause the disbursement to the Tenants
in Common of their respective shares of net revenues from the Property within 3 months from the date of receipt of those revenues.

 

5.            Co-Tenant’s
Obligations. The Tenants in Common each agree to perform such acts as may be reasonably necessary to carry out the terms and
conditions of this Agreement, including, without limitation:

 

5.1           Documents.
Executing documents required in connection with a sale or refinancing of the Property in accordance with Section 6 below and such
additional documents as may be required under this Agreement or may be reasonably required to effect the intent of the Tenants
in Common with respect to the Property or any loans encumbering the Property.

 

5.2           Additional
Funds. Each Tenant in Common will be responsible for its Pro Rata Share of costs, fees, expenses and any future cash needed
in connection with the acquisition, financing, ownership, operation and maintenance of the Property, including, for the avoidance
of doubt, any and all deposits and acquisition and financing costs that may have been incurred prior to the effective date of this
Agreement. If a Tenant in Common (the “Defaulting Owner”) fails for any reason to timely contribute its proportionate
share of funds required by this Agreement, the other Tenant in Common who has made the required contribution (the “Non Defaulting
Owner”) shall have the right, but not the obligation, to contribute all or any portion of the amount which the Defaulting
Owner has failed to contribute (on behalf of the Defaulting Owner). If the Non Defaulting Owner contributes all or any portion
of an amount required to be contributed by the Defaulting Owner (the “Default Contribution”), the Non Defaulting Owner
shall be entitled to enforce its common law rights as a co-tenant of the Property.

 

    	 	3	 

     

    

 

6.            Sale
or Encumbrance of Property.

 

6.1           Approval.
Subject to the terms of the Addendum attached hereto, any sale or exchange of the Property, and any loan encumbering the Property
and any sale of the Property, shall be subject to unanimous approval by the Tenants in Common.

 

6.2           Distribution
of Loan or Sales Proceeds. Notwithstanding any other provisions of this Agreement, each Tenant in Common’s share of the
proceeds of a loan encumbering the Property or sale of the Property shall be applied at the closing of the loan or the sale as
set forth below.

 

6.2.1           To
the extent necessary, the proceeds shall first be used to pay in full his share of any loans encumbering title to the Property.

 

6.2.2           To
the extent necessary, the proceeds shall next be used to pay in full any unsecured loan made to such Tenant in Common with respect
to the Property.

 

6.2.3           The
proceeds shall next be used to pay his share of all outstanding costs and expenses incurred in connection with the holding, marketing
and sale of the Property.

 

6.2.4           The
proceeds shall next be used to pay all outstanding fees and costs as set forth in the Management Agreement.

 

6.2.5           Any
proceeds remaining shall be paid to such Tenant in Common.

 

7.            Transfer
or Encumbrance. Except as specifically provided in this Agreement and subject to compliance with applicable securities laws
and loan (and associated loan agreement and documents) secured by the Property, each Tenant in Common may sell, transfer, convey,
pledge, encumber or hypothecate their Interest or any part thereof, provided that any transferee shall take such Interests subject
to this Agreement.

 

8.            Right
of Partition. The Tenants in Common agree that any Tenant in Common (and any of his successors-in-interest) shall have the
right at any time to file a complaint or institute any proceeding at law or in equity to have the Property partitioned in accordance
with and to the extent provided by applicable law. The Tenants in Common acknowledge and agree that partition of the Property may
result in a forced sale by all of the Tenants in Common. To avoid the inequity of a forced sale and the potential adverse effect
on the investment by the other Tenant in Common, the Tenants in Common agree that, as a condition precedent to filing a partition
action, the Tenant in Common filing such action shall follow the buy-sell procedure set forth in Section 10.

 

9.             Bankruptcy.
The Tenants in Common agree that the following shall constitute an Event of Bankruptcy with respect to any Tenant in Common (and
in any of his successors-in-interests): if a receiver, liquidator or trustee is appointed for any Tenant in Common, if any Tenant
in Common becomes insolvent, makes an assignment for the benefit of creditors or admits in writing his inability to pay its debts
generally as they become due, if any petition for bankruptcy, reorganization, liquidation or arrangement pursuant to federal bankruptcy
law, or similar federal or state law shall be filed by or against, consented to, or acquiesced in by, any Tenant in Common; provided,
however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by such Tenant in Common
then, upon the same not being discharged, stayed or dismissed within sixty (60) days thereof. To avoid the inequity of a forced
sale and the potential adverse effect on the investment of the other Tenants in Common, the Tenants in Common agree that, as a
condition precedent to entering into this Agreement, the Tenant in Common causing such Event of Bankruptcy shall follow the buy-sell
procedure set forth in Section 9.

 

10.          Buy-Sell
Procedure. Before filing a partition action in accordance with Section 8, or

 

(i) upon a Tenant in
Common defaulting its obligations under this Agreement (including, but limited to, (a) for failing to offer its interest for sale
prior to filing a partition; or (b) for filing a partition), or

 

(ii) upon the occurrence
of an Event of Bankruptcy in accordance with Section 9, or

 

(iii) in the event
a Tenant in Common sues another Tenant in Common or any guarantor of the Lender’s Loan to the Tenants in Common, or

 

    	 	4	 

     

    

 

 

(iv) in the event of
a Deadlock that is not resolved by the invocation of the provisions of Exhibit B; the Tenant in Common filing such partition
action, or defaulting under this Agreement, or the subject of the Event of Bankruptcy, or suing another Tenant in Common or Loan
guarantor, or any Tenant in Common on the event of a Deadlock (hereinafter, “Seller”) shall first make a written offer
(“Offer”) to sell its undivided interest to the other Tenant in Common at a price equal to the Fair Market Value (as
defined below) of Seller’s undivided interest. “Fair Market Value” shall mean the fair market value of Seller’s
undivided interest in the Property on the date the Offer is made as determined in accordance with the procedures set forth below.
The other Tenant in Common shall have ten (10) days after delivery of the Offer to accept the Offer. If the other Tenant in Common
(“Purchaser”) accepts the Offer (hereafter, the date of such acceptance is the “Acceptance Date”), Seller
and Purchaser shall commence negotiation of the Fair Market Value. If the parties do not agree, after good faith negotiations,
within five (5) days after the Acceptance Date, then each party shall submit to the other a proposal containing the Fair Market
Value the submitting party believes to be correct (“Proposal”) within seven (7) days after the Acceptance Date. If
either party fails to timely submit a Proposal, the other party’s submitted proposal shall determine the Fair Market Value.
If both parties timely submit Proposals, then the Fair Market Value shall be determined in accordance with the procedures set forth
below. Within ten (10) days after the Acceptance Date, the parties shall appoint a certified MAI real estate appraiser who shall
have been active full-time over the previous ten (10) years in the appraisal of comparable properties located in the County or
City in which the Property is located (the “Appraiser”). If the parties are unable to agree upon a single Appraiser
within ten (10) days after the Acceptance Date, then the parties each shall each select an Appraiser that meets the foregoing qualifications
within twelve (12) days after the Acceptance Date. The two (2) Appraisers so appointed shall, within five (5) days after their
appointment, appoint a third Appraiser meeting the foregoing qualifications. The determination of the Appraisers(s) shall be limited
solely to the issue of whether Seller’s or Purchaser’s Proposal most closely approximates the fair market value. The
decision of the single Appraiser or of the Appraisers shall be made within ten (10) days after the appointment of the single Appraiser
or the third Appraiser, as applicable. The Appraiser(s) shall have no authority to create an independent structure of fair market
value or prescribe or change any or several of the components or the structure thereof; the sole decision to be made shall be which
of the parties’ Proposals most closely corresponds to the fair market value of the Property. The decision of the single Appraiser
or majority of the three (3) Appraisers shall be binding upon the parties. If either party fails to appoint an Appraiser within
the time period specified above, the Appraiser appointed by one of them shall reach a decision which shall be binding upon the
parties. The cost of the Appraisers shall be paid equally by Seller and Purchaser. In the event that the Seller’s Interest
is not purchased by the other Tenant in Common, the Seller shall have the right to exercise his partition rights and any purchaser
thereunder shall acquire any Interest or portion of the Property free of the terms of this Agreement.

 

11.          General
Provisions.

 

11.1         Mutuality;
Reciprocity; Runs With the Land. Except as otherwise provided herein all provisions, conditions, covenants, restrictions, obligations
and agreements contained herein are made for the direct, mutual and reciprocal benefit of each and every part of the Property;
shall be binding upon and shall inure to the benefit of each of the Tenants in Common and their respective heirs, executors, administrators,
successors, assigns, devisees, representatives, lessees and all other persons acquiring any undivided interest in the Property
or any portion thereof whether by operation of law or any manner whatsoever (collectively, “Successors”); shall create
mutual, equitable servitudes and burdens upon the undivided interest in the Property of each Tenant in Common in favor of the interest
of every other Tenant in Common; shall create reciprocal rights and obligations between the respective Tenants in Common, their
interests in the Property, and their Successors; and shall, as to each of the Tenants in Common and their Successors operate as
covenants running with the land, for the benefit of the other Tenants in Common pursuant to applicable law. Except as otherwise
provided herein it is expressly agreed that each covenant contained herein (i) is for the benefit of and is a burden upon the undivided
interests in the Property of each of the Tenants in Common, (ii) runs with the undivided interest in the Property of each Tenant
in Common and (iii) benefits and is binding upon each Successor owner during its ownership of any undivided interest in the Property,
and each owner having any interest therein derived in any manner through any Tenant in Common or Successor. Every person or entity
who now or hereafter owns or acquires any right, title or interest in or to any portion of the Property is and shall be conclusively
deemed to have consented and agreed to every restriction, provision, covenant, right and limitation contained herein, whether or
not such person or entity expressly assumes such obligations or whether or not any reference to this Agreement is contained in
the instrument conveying such interest in the Property to such person or entity. The Tenants in Common agree that, subject to the
restrictions on transfer contained herein, any Successor shall become a party to this Agreement upon acquisition of an undivided
interest in the Property as if such person was a Tenant in Common initially executing this Agreement.

 

    	 	5	 

     

    

 

11.2         Attorneys’
Fees. If any action or proceeding is instituted between all or any of the Tenants in Common arising from or related to or with
this Agreement, the Tenant in Common or Tenants in Common prevailing in such action or arbitration shall be entitled to recover
from the other Tenant in Common or Tenants in Common all of his or their costs of action or arbitration, including, without limitation,
reasonable attorneys’ fees and costs as fixed by the court or arbitrator therein.

 

11.3         Entire
Agreement. This Agreement, together with and as amended by (i) the Addendum to Tenants in Common Agreement attached hereto,
and (ii) the First Amendment to Tenants in Common Agreement dated of even date herewith, constitutes the entire agreement between
the parties hereto pertaining to the subject matter hereof and all prior and contemporaneous agreements, representations, negotiations
and understandings of the parties hereto, oral or written, are hereby superseded and merged herein.

 

11.4         Governing
Law. This Agreement shall be governed by and construed under the internal laws of the Commonwealth of Virginia without regard
to choice of law rules.

 

11.5         Modification.
No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed
by the party against which the enforcement of such modification, waiver, amendment, discharge or change is or may be sought.

 

11.6         Notice
and Payments. Any notice to be given or other document or payment to be delivered by any party to any other party hereunder
may be delivered in person, or may be deposited in the United States mail, duly certified or registered, return receipt requested,
with postage prepaid, or by Federal Express or other similar overnight delivery service, and addressed to the Tenants in Common
at the addresses specified herein. Any party hereto may from time to time, by written notice to the others, designate a different
address which shall be substituted for the one above specified. Unless otherwise specifically provided for herein, all notices,
payments, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given and received
(i) upon personal delivery, or (ii) as of the third business day after mailing by United States registered or certified mail, return
receipt requested, postage prepaid, addressed as set forth above, or (iii) the immediately succeeding business day after deposit
with Federal Express or other similar overnight delivery system.

 

11.7         Successors
and Assigns. All provisions of this Agreement shall inure to the benefit of and shall be binding upon the successors-in-interest,
assigns, and legal representatives of the parties hereto.

 

11.8         Term.
This Agreement shall commence as of the date of recordation and shall terminate at such time as the Tenants in Common or their
successors-in-interest or assigns no longer own the Property as tenants-in-common.

 

11.9         Waivers.
No act of any Tenant in Common shall be construed to be a waiver of any provision of this Agreement, unless such waiver is in writing
and signed by the Tenant in Common affected. Any Tenant in Common hereto may specifically waive any breach of this Agreement by
any other Tenant in Common, but no such waiver shall constitute a continuing waiver of similar or other breaches.

 

11.10        Counterparts.
This Agreement may be executed in counterparts, each of which, when taken together, shall be deemed one fully executed original.

 

11.11         Severability.
If any portion of this Agreement shall become illegal, null or void or against public policy, for any reason, or shall be held
by any court of competent jurisdiction to be illegal, null or void or against public policy, the remaining portions of this Agreement
shall not be affected thereby and shall remain in full force and effect to the fullest extent permissible by law.

 

11.12        Time
is of the Essence. Time is of the essence of each and every provision of this Agreement.

 

11.13        Representations
and Warranties. Each Tenant in Common represents and warrants that all state and federal securities laws and regulations have
been and will be complied with in connection with the solicitation, offering and sale of Tenant in Common interests. Each Tenant
in Common further represents and acknowledges that the Property is "single asset real estate" as defined in 11 U.S.C.
 §101(51B) and pursuant to 11 U.S.C. §362(d)(3).

 

[BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date set forth above.

 

	 	TENANTS IN COMMON:
	 	 
	 	PMI HANOVER SQ, LLC
	 	a Delaware limited liability company

 

	 	By:	Peter Mueller, Inc.
	 	 	a Virginia corporation
	 	Its:	Manager

 

	 	By:	 
	 	Name:	Kurt A. Schirm
	 	Title:	President

 

STATE OF                                                             )

                                                                                )
ss:

COUNTY OF                                                         )

 

On _______________,
__, 2018, before me personally appeared Kurt A. Schirm, personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized
capacity as President of Peter Mueller, Inc., a Virginia corporation, the Manager of PMI Hanover SQ, LLC, and that by his signature
on the instrument the entity upon behalf of which the person acted, executed the instrument.

 

WITNESS my hand and
official seal.

 

 

My commission expires:                                         

Reg. No.:                                        

 

	 	 
	 	Notary Public

 

    	 	7	 

     

    

 

	 	MDR HANOVER SQUARE, LLC,
	 	a Delaware limited liability company

 

	 	By:	Medalist Diversified Holdings, L.P.,
	 	 	a Delaware limited partnership
	 	Its:	Manager

 

	 	By:	Medalist Diversified REIT, Inc.,
	 	 	a Maryland Corporation
	 	Its:	General Partner

 

	 	By:  	 
	 	Name:	William R. Elliott
	 	Title:	Co-President

 

COMMONWEALTH OF VIRGINIA                    )

                                                                                 )
ss:

CITY OF RICHMOND                                          )

 

On May ___, 2018 before
me personally appeared William R. Elliott, personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument the entity upon behalf of which the person acted, executed the instrument.

 

WITNESS my hand and
official seal.

 

 

My commission expires:                                     

Reg. No.:                                             

 

	 	 
	 	Notary Public

 

    	 	8	 

     

    

 

EXHIBIT A

 

DESCRIPTION OF PROPERTY

 

 

 

    	

     

    

 

EXHIBIT B

 

BUY/SELL

 

At any time in the event that the Tenants
in Common are unable to agree on the matters set forth in Section 3 (“Deadlock”), the Deadlock shall be broken by the
invocation of the provisions of this Section.

 

(a)          Negotiated
Resolution. If any dispute (a “Dispute”) arises (i) out of or relating to, this Agreement or the Addendum (collectively,
the “Documents”), or any alleged breach or default under the Documents, or (ii) with respect to any of the transactions
or events contemplated by the Documents, the party desiring to resolve such Dispute shall deliver a letter or other written notice
(the “Dispute Notice”) to the other parties to such Dispute, describing the Dispute in reasonable detail. If any party
delivers a Dispute Notice pursuant to this Exhibit B subpart (a), the parties involved in the Dispute shall meet at least twice
at the Property Manager’s principal place of business (unless otherwise agreed by the parties) within the thirty (30) day
period commencing on the date of the Dispute Notice and in good faith attempt to resolve such Dispute.

 

(b)          Mediation.
If any Dispute is not resolved or settled by the parties as a result of negotiation pursuant to Section 13.14(a) above, the parties
shall submit the Dispute to non-binding mediation before a retired judge of a federal District Court or Circuit Court or another
similarly qualified, mutually agreeable individual, in Richmond, Virginia. The parties shall bear the costs of such mediation equally.

 

(c)          Arbitration.
If the Dispute is not resolved by mediation pursuant to Exhibit B subpart (b) above, or if the parties fail to agree upon a mediator,
then within ninety (90) days after the date of the Dispute Notice, the Dispute shall be settled in accordance with the rules and
procedures of the American Arbitration Association then in effect with respect to commercial disputes. Arbitration shall be held
before one impartial arbitrator in Richmond, Virginia. If the parties cannot agree within thirty (30) days after receipt of notice
of intent to arbitrate (the “Arbitration Notice”) to the appointment of an arbitrator, an arbitrator shall be appointed
in accordance with Section 8.01-576.5 of the Code of Virginia (1950), as amended. Any arbitration shall allow for production of
relevant documents and depositions, and sanctions, at the discretion of the arbitrator, for failure to comply with any such discovery
requests. The arbitration of such issues, including the determination of any amount of damages suffered by any party hereto by
reason of the acts or omissions of any party, shall be final and binding upon all parties. The parties shall instruct the arbitrator
to render its decision no later than thirty (30) days after the submission of the Dispute.

 

(d)          Costs
and Attorneys’ Fees. The parties shall equally share the administrative costs and fees of the mediation and arbitration,
and the reasonable attorneys’ fees incurred by the party determined to be the prevailing party by the arbitrator shall be
paid by the party determined by the arbitrator not to be the prevailing party or as otherwise equitably determined by the arbitrator;
provided, however, that if a party refuses to participate in meeting procedure and/or in a mediation (including by unreasonably
withholding consent to a mediator or setting a date to meet) then (i) such refusing party shall pay all (100%) of the administrative
fees and costs of the mediation and/or arbitration (including of the mediator and/or arbitrator), and (ii) even if such refusing
party is determined by the arbitrator to be the prevailing party, such refusing party shall not be entitled to an award of such
party’s attorneys’ fees. The foregoing is intended to create an incentive for the parties to attempt to resolve any
Dispute by negotiated resolution and/or mediation prior to arbitration.

 

    	

     

    

 

ADDENDUM TO TENANTS IN COMMON AGREEMENT

DATED MAY 8, 2018

 

For so long as any obligations are owed
to Lender under the Mortgage Loan Documents, Owners shall observe and comply with the following provisions with regard to their
ownership and operation of the Property, notwithstanding any provision to the contrary in this Agreement:

 

1.          Subject
to Loan Documents. At all times while any obligations are owed to Lender under the Mortgage Loan Documents, any and all rights
and remedies, including any rights of first refusal with respect to or options to purchase the Property, transfer rights, rights
of indemnity, or otherwise, shall be fully subordinate to the lien of the Mortgage Loan and all other terms and provisions of the
Mortgage Loan Documents. At all times while any obligations are owed to Lender under the Mortgage Loan Documents, the Owners agree
to stand still with respect to the enforcement of any of their rights and remedies and shall take no enforcement action with respect
thereto. All payments due under the Mortgage Loan Documents shall be made before any distributions to the Owners are made and all
of such payments under the Mortgage Loan shall have priority over all such distributions to the Owners. The Lender is a third-party
beneficiary of this Agreement and may enforce the provisions hereof against any party hereto.

 

2.          Management
of Property.

 

(a)          The
Managing Co-Owner (defined below) shall be responsible to sign all documents and take all actions it deems necessary and appropriate
in its sole discretion to deal with the Lender and to cause the Tenants in Common to be in compliance with all of Lender’s
operational requirements under the Mortgage Loan Documents including, but not limited to, the requirements concerning annual property
inspections and reports, collection of loan impounds, maintenance and repair of the Property, coordination of any late loan payments
and other loan coordination and servicing requirements. For such purposes, the Managing Co-Owner is hereby granted an irrevocable
power-of-attorney to deal with Lender on matters relating to the operation and maintenance of the Property. The “Managing
Co-Owner” shall be MDR Hanover Square, LLC.

 

(i)          The
Managing Co-Owner shall oversee and supervise the Property Manager.

(ii)         The
Managing Co-Owner shall be the only party to whom the Lender is required to send notices except as otherwise may be required by
law.

 

(b)          The
Property Manager must at all times be a “Qualifying Manager” as set forth below. To be eligible, the Qualifying Manager
must meet the following requirements:

 

(i)          The
Qualifying Manager must be a reputable management company having at least five years’ experience in the management of commercial
properties and in the metropolitan area or other appropriate geographic area in which the Property is located;

(ii)         The
Qualifying Manager must be approved by Lender (which such approval may, at Lender’s option, be conditioned upon Lender’s
receipt of a Rating Agency Confirmation, as such term is defined in the Mortgage Loan Documents, with regard to both the identity
of the proposed Property Manager and the replacement management agreement pursuant to which such Property Manager will be employed);
and

(iii)        The
Qualifying Manager must not be the subject of a bankruptcy or similar insolvency proceeding.

 

(c)          The
Lender and any servicer of the Loan has the right to participate by telephone in any regular, special or called meetings of the
Tenants in Common.

 

(d)          Each
Tenant in Common shall execute an investor certificate, which provides the Managing Co-Owner with an irrevocable power of attorney
to correspond with (and receive correspondence from) the Lender/servicer on behalf of each Tenant in Common.

 

    	

     

    

 

3.          Ownership
Interest Transfers or Liens. No Owner shall transfer any interest in the Property, whether voluntarily, involuntarily or by operation
of law, to any other party (including, without limitation, any other Owner) which may result in the acceleration of the Mortgage
Loan in accordance with the terms of the Mortgage Loan Documents unless all required consents under the Mortgage Loan Documents
have been obtained. Each Tenant in Common shall not allow its interest in the Property to become subject to any liens from any
third parties, and if a Tenant in Common’s interest in the Property becomes subject to an involuntary lien, such lien will
be discharged within 30 days (or promptly discharged as soon as possible thereafter).

 

4.          Notices.
A copy of all notices given hereunder shall be provided to the Lender at the address below. The foregoing addresses and/or telephone
numbers may be changed from time to time by written notice to the other parties indicated above, including Lender. Notices shall
be deemed received upon the earlier of actual receipt or forty-eight (48) hours after deposit in the case of United States express
mail or first class mail, registered or certified, return receipt requested, or twenty-four (24) hours after delivery to the overnight
courier.

Lender’s address for notice:

 

Langley Federal Credit Union

721 Lakefront Commons

Newport News, VA 23606 

 

5.          Further
Assurances. Each Tenant in Common shall respond promptly to any requests for information from the other Tenants in Common and/or
the Lender, and will promptly take all actions and sign all documents that the other Tenants in Common and/or the Lender deem necessary
or appropriate in connection with the Mortgage Loan. At all times while the Mortgage Loan is outstanding, each Tenant in Common
agrees to waive any and all lien rights it holds, including any capital calls, against any other Tenant in Common for a failure
to perform its obligations as tenant in common, either under this Agreement or at law.

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