Document:

Exhibit 10.24

 

PROMISSORY
NOTE

 

	Principal	 	 	Loan Date	 	Maturity	 	Loan No.	 	Call/Coll	 	 	Account	 	 	Officer	 	Initials	 
	$	8,600,000.00	 	 	11-3-2017	 	12-1-2027	 	5510059503301	 	 		 	 	 		 	 	DJ	 	 		 

 

References in the
boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or Item Any item
above containing •••••·has been omitted due to text length limitations

 

	Borrower:	
        COF North, LLC, a Virginia limited liability company

        4198 Cox Road, Suite 200

        Glen Allen, VA 23060
	Lender:	
        Langley Federal Credit Union

        721 Lakefront Commons

        Newport News, VA 23606

 

 

 

IMPORTANT NOTICE

 

THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT
PROVISION WHICH CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT
AGAINST YOU WITHOUT ANY FURTHER NOTICE.

 

	Principal Amount:	$8,600,000.00	Date of Note:	November 3, 2017

 

PROMISE
TO PAY. COF North, LLC, a Virginia limited liability company (“Borrower”) promises to pay to Langley Federal Credit Union
(“Lender”), or order, In lawful money of the United States of America, the principal amount of Eight Minion Six Hundred
Thousand & 00/100 Dollars ($8,600,000.00), together with interest on the unpaid principal balance from November 1,2017, until
paid In full.

 

PAYMENT.
Subject to any payment changes resulting from changes In the Index, Borrower pay this loan In accordance with the following payment
schedule, which calculates Interest on the unpaid principal balance as described In the “INTEREST CALCULATION METHOD”
paragraph using the interest rates described In this paragraph: 60 monthly consecutive principal and Interest payments In the initial
amount of S49,n4.06 each, beginning January 1,2018, with Interest calculated on the unpaid principal balances using an interest
rate of 4.900%; 59 monthly consecutive principal and Interest payments beginning January 1,2023, with interest calculated on the
unpaid principal balances using an interest rate based on
the Index described below, plus a margin of 3.100 percentage points, adjusted If necessary for the minimum and maximum rate limitations
for this loan; and one principal and Interest payment of December 1, 2027, with Interest calculated on the unpaid principal balances
using an Interest rate based on the Index described below, plus a margin of 3.100 percentage points, adjusted If necessary for
the minimum and maximum rate limitations for this loan. The final payment wl11 be for all principal and accrued interest not yet
paid, together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will
be applied to any accrued unpaid interest. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender
may designate In writing. All payments must be made In U.S. dollars and must be received by Lender consistent with any written
payment Instructions provided by Lender. If a payment Is made consistent with Lender’s payment
instructions but received after 4:00 PM Eastern Time, Monday through Friday or payments made during holidays or weekends, Lender
will credit Borrower’s payment on the next business day.

 

VARIABLE INTEREST RATE.
The Interest rate on this Note Is subject to change from time to time based on changes
In an Independent index which the daily average yield on United Stale Treasury securities adjusted to a constant maturity of
five years. as made available by the Federal Reserve Board (the “Index’). The Index is not necessarily the lowest rate
charged by Lender on its loans. If the Index becomes unavailable during the term of this
loan, Lender may designate a substitute Index after notifying Borrower. Lender will tell Borrower if the current Index rate
upon Borrower’s request. The Interest rate change will not occur more often than each 5 years. Borrower understands
that Lender may make loans based on other rates as well. The interest rate or rates to be applied to the unpaid principal
balance during this Note will be the rate or rates set forth herein in the “Payment” section. Notwithstanding any
other provision of this Note after the first payment stream, the Interest rate for each subsequent payment stream will be
effective as of the due date of the last payment In the just-ending payment stream. NOTICE. Under no circumstances will the
Interest rate on this Note be less than 4.9000% per annum or more than the maximum rate allowed by applicable law. Whenever
Increases occur In the Interest rate, Lender, at its option may do one or more of the following:(A) increase Borrower’s
payments to ensure Borrower’s loan will pay off by its original final maturity date. (B) increase Borrower’s payments to
cover accruing Interest, (C) increase the
number of Borrower’s payments, and (0) continue Borrower’s payments at the
same amount and increase Borrower’s final payment

 

INTEREST
CALCULATION METHOD: Interest on this Note Is computed on a 30/360 simple Interest basis; that Is, with the exception of odd days
before the first full payment cycle, monthly Interest Is calculated by applying the ratio of the Interest rate over a year of 360
days, multiplied by the outstanding principal balance, multiplied by a month of 30 days. Interest for the odd days before the first
full month is calculated on the basis of the actual days and a 360-day year. All Interest payable under this Note Is computed using
this method.

 

PREPAYMENT.
Borrower agrees that au roan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be
subject to refund upon early payment (whether voluntary or as a result of default). except as otherwise required by law Except
for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier that is due. Early payments win
not, unless agreed to by Lender In writing, relieve Borrower of Borrower’s obligation to continue to make payments under the payment
schedule, Rather, early payments win reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower
agrees not to send Lender payments marked ‘paid in full, “without recourse”, or similar language. If Borrower sends
such a payment, Lender may accept It without losing any of Lender’s rights under this Note, and Borrower will
remain obligated lo pay any further amount owed to Lender. All written communications concerning disputed amounts, Including any
check or other payment Instrument that Indicated that the payment constitutes “payment In full” of the amount owed or
that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered
to: Langley Federal Credit Union, Commercial Lending Department, 721 Lakefront Commons, Suite 105 Newport News, VA 23606.

 

LATE CHARGE. All payment is
15 days or more late, Borrower will be charged
5.000% of the unpaid portion of the regularly schedules payment.

 

INTEREST
AFTER DEFAULT. Upon default. Including failure to pay upon final maturity, the Interest rate on this Note shall be
increased by adding an additional 2.000 percentage point margin (‘Default Rate Margin’). The Default Rate Margin shall also apply
each succeeding interest rate change th.at would have applied had there been no default. After maturity, or after this Note would
have matured had there been no default, the Overall Rate Margin will continue to apply to the final interest rate described in
this Note. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.

 

     

     

    

 

PROMISSORY
NOTE

 

	Loan No:	5510059503301	(Continued)	Page 2

 

 

 

DEFAULT. Each of the follow
shall constitute an event of default (“Event or Default”) under this Note:

 

Payment Default. Borrower fails to make any payment
when due under this Note.

 

Other Defaults. Borrower fails
to comply Wi h or to perform any other term obligation, covenant or condition contained in this Note or in any of the related documents
to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower

 

Environmental
Default. Failure of any party to comply with or perform when due any term. obligation, covenant or condition contained in any environmental
agreement executed in connection with any loan.

 

False Statements.
Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf, or made by Guarantor,
or any other guarantor, endorser, surety or accommodation party, under this Note or the related documents in connection with the
obtaining of the loan evidences by this Note or any security document directly or indirectly securing repayment of this Note is
false or misleading in any material respect. either now or al the lime made or furnished or becomes false or misleading at any
time thereafter.

 

Insolvency.
The dissolution or termination or Borrower’s existence as a going organization, or a trustee or receiver is appointed for Borrower
or for all or a substantial portion of the assets of Borrower. or Borrower makes a general assignment for the benefit or Borrower’s
creditors, or Borrower files for bankruptcy. or an Involuntary bankruptcy petition is filed against Borrower and such Involuntary
petition remains undismissed for sixty (60) days.

 

Creditor or
Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings. whether by judicial proceeding, self-help, repossess
on or any other method.by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This
includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall
not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of
the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and
deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its
sole discretion, as being an adequate reserve or bond for the dispute.

 

Execution; Attachment. Any
execution or attachment is levied against the Collateral, and such execution or attachment is not set aside, discharged or slayed
within thirty (30) days alter the same Is levied.

 

Change in Zoning or Public
Restriction. Any change in any zoning ordinance or regulation or any other public restriction is enacted, adopted or implemented.
that limits or defines the uses which may be made
of the Co lateral such that the present or intended use of the Collateral, as specified In the related documents, would be In
violation of such zoning ordinance or regulation or public restriction, as changed.

 

Default
Under Other Lien Documents. A default occurs under any other mortgage. deed of trust or security agreement covering an or any portion
of the Collateral

 

Judgment. Unless adequately
covered by insurance in the opinion of Lender, the entry of a final judgment for the payment of money involving more than ten thousand
dollars (510.000 00) against Borrower and the failure by Borrower to discharge the same or cause it to be discharged or bonded
off to Lender’s satisfaction within thirty (30) days from the date of the order, decree or process under which or pursuant to which
such judgment was entered.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor, or any other guarantor, endorser, surety.
or accommodation party of any of the indebtedness or any Guarantor or any other guarantor. endorser, surety, or accommodation party
dies or becomes incompetent or revokes or disputes the validity of, or liability guaranty of the Indebtedness evidenced by this
Note.

 

Adverse Change.
A mater al adverse change occurs in Borrower’s financial condition. or Lender believes the prospect of payment or performance of
this Note is Impaired.

 

Cure Provisions.
If any default , other than a default in payment, is curable and if Borrower has not been given a notice of a breach of the same
provision of this Note within the preceding six (6) months, it may be cured If Borrower, after Lender sends written notice to Borrower
demanding cure of such default: (1) cures the default within thirty (30) days; or (2) if the
cure requires more than thirty (30) days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient
to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance
as soon as reasonably practical.

 

LENDER’S
RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid Interest. together
with all other applicable fees, costs, and charges, if any, immediately due and payable, and then Borrower will pay that amount.

 

ATTORNEY’S FEES; EXPENSES. Subject
to any limits under applicable law, upon default, Borrower agrees to pay Lender’s attorney’s fees and an of Lender’s other collection
expenses, whether or not there is a lawsuit, including without limitation, legal fees and expenses for bankruptcy proceedings.

 

GOVERNING LAW. This Note will
be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of
Virginia without regard to Its conflicts of law provisions. This Note has been accepted by Lender In the Commonwealth of Virginia.

 

     

     

    

 

PROMISSORY
NOTE

 

	Loan No:	5510059503301	(Continued)	Page 3

 

 

 

CHOICE OF VENUE. If there is
a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the applicable courts for the City of Newport
News, Commonwealth of Virginia.

 

CONFESSION
OF JUDGMENT. Upon a default in payment of this Note at maturity, whether by acceleration or otherwise. Borrower hereby
irrevocably authorizes and empowers Natasha Merz, Curtis A. Baker, or an authorized officer of Langley Federal Credit Union,
any of whom may act as Borrower’s attorney-in-fact to appear in the Circuit Court of the City of Newport News clerk’s office
and to confess judgment against Borrower for the unpaid amount of this Note as evidenced by an affidavit signed by an officer
of Lender setting forth the amount then due, attorney’s fees plus costs of suit, and to release all errors, and waive all
rights of appeal. By a written instrument Lender may appoint a substitute for the above name attorney-in-fact. If a copy of
this Note, verified by an affidavit shall have been filed in the proceeding, it will not be necessary to file the original as
a warrant of attorney. Borrower waives the right to any stay of execution and the benefit of all exemption laws now or
hereafter in effect. No single exercise of the foregoing warrant and power to confess judgment will be deemed to exhaust the
power, whether or not any such exercise shall be held by any court to be
Invalid, voidable, or void; but the power will continue undiminished and may be
exercised from time to time as Lender may elect until all amounts owing on this Note have been paid in full.

 

STATUTORY LIEN. Borrower agrees
that all loan advances under this Note are secured by all shares and deposits in all joint and individual accounts Borrower has
with Lender now and in the future. Borrower authorizes Lender, to the extent permitted by applicable law, to apply the balance
In these accounts to pay any amounts due under this Note when Borrower is In default under this Note. Shares and deposits in an
Individual Retirement Account and any other account that would lose special tax treatment under state or federal law given as security
are not subject to the security interest Borrower has given in
Borrower’s shares and deposits.

 

COLLATERAL. Borrower acknowledges
this Note is secured by the following collateral described in the security Instruments listed herein·

 

(A)  a Credit
Line Deed of Trust dated November 3, 2017. to a trustee in favor of Lender on real property located in Hanover County, Commonwealth
of Virginia. The Real Property or its address is commonly known as 7230 Bell Creek Road, Mechanicsville, VA 23111.

 

(B)  an Assignment
of All Rents to Lender on real property located in Hanover County, Commonwealth of Virgin4a. The Real Property or its address Is
commonly known as 7230 Bell Creek Road, Mechanicsville, VA 23111.

 

(C) inventory, chattel paper, accounts, equipment,
general intangibles, fixtures, stand ng Umber and mineral, oil and gas described in a Commercial Security Agreement dated November
3, 2017.

 

FINANCIAL
STATEMENTS. Borrower agrees to provide Lender with such financial statements and other related information at such frequencies
and in such detail as Lender may reasonably request.

 

SUCCESSOR
INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors
and assigns, and shall inure benefit of Lender and Us successors and assigns

 

NOTIFY US
OF INACCURATE INFORMATION; WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender If tender reports an
inaccurate information about Borrower’s account(s) to a consumer reporting agency. Borrower’s written notice describing the
specific inaccuracy(ies) should be sent to Lender at the following address: Langley Federal Credit Union Commercial Lending
Department 721 Lakefront Commons, Suite 105 Newport News. VA 23606.

 

GENERAL
PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the remaining provisions of the Note. Lender
may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note. to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor.
Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether
as maker, guarantor, accommodation maker or endorser, shall be
released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of lime) this loan
or release any party or guarantor or collateral or impair, fail to realize upon or perfect Lender’s security interest in the collateral
and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that
Lender may modify this loan without the consent of or notice lo anyone other than the party with whom the modification is made.

 

PRIOR TO SIGNING THIS NOTE,
BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES
TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES RECEIPT
OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

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

 

     

     

    

 

PROMISSORY
NOTE

 

	Loan No:	5510059503301	(Continued)	Page 4

 

 

 

BORROWER:

 

COF NORTH, LLC, A VIRGINIA LIMITED LIABILITY COMPANY

 

By: COF NORTH MANAGEMENT, LLC, A VIRGINIA LIMITED
LIABILITY COMPANY, ITS MANAGER

 

	By:	/s/
    Mark     W. Claud    (Seal)	 
	Mark
    W. Claud, Manager	 
	 	 
	LENDER:	 
	 	 
	LANGLEY
    FEDERAL CREDIT UNION	 
	 	 	 
	X	/s/
    Natasha Mertz	 
	Authorized
    Signer	 

 

 

 

     

     

    

 

ADDENDUM TO LOAN DOCUMENTS

 

THIS
ADDENDUM TO LOAN DOCUMENTS (’‘Addendum’’) is made as of this 3rd day of November 2017, by and among
COF NORTH, LLC, a Virginia limited liability company (“Borrower”) MARK W. CLAUD (“Guarantor”) and LANGLEY FEDERAL
CREDIT UNION (’‘Lender’’). and is attached to and made a
part of the Business Loan Agreement, Promissory Note, Credit Line Deed of Trust, Assignment of Rents, Commercial Security Agreement,
Hazardous Substances Certificate and Indemnity Agreement, and Commercial Guaranty more particularly described below (collectively,
the “Loan Documents’”). The terms of
this Addendum shall supplement the Loan Documents, and in the case of conflict, the terms of this Addend um shall govern.

 

Recitals:

 

A.       Borrower has executed
and delivered to Lender a Business Loan Agreement, a $8,600,000.00 Promissory Note (the “Promissory
Note”), a Credit Line Deed of Trust, an Assignment of Rents, a Commercial Security Agreement, a Hazardous Substances
Certificate and Indemnity Agreement, and a Commercial Guaranty all doted as of the day and year first
above written.

 

B.       Borrower,
Guarantor and Lender desire to amend and supplement the terms of the Loan Documents as set forth herein.

 

C.       Capitalized
terms, not otherwise defined in this Addendum, shall have the same meanings us in the Loan Documents.

 

NOW, THEREFORE,
the parties hereto, in consideration of the mutual promises and covenants contained herein and in the Loan Documents, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. and intending to be legally bound
hereby, agree that the Loan Documents are amended and supplemented as follows:

 

1.       No
Event of Default shall be deemed to have occurred with respect to a failure to make a payment when due unless such failure continues
for more than fifteen (15) days after the date due.

 

2.       A
new paragraph to the Business Loan Agreement, the Promissory Note, the Credit Line Deed of Trust,
the Assignment of Rents, and the Commercial Security Agreement designated ’·Right to Cure·•
is hereby added to all of the Loan Documents incorporating the following language:

 

If any
default other than a default in payment, is curable, it shall not constitute an Event of Default if (a) cured within thirty (30)
days of written notice of the default being given by Lender to Borrower and any defaulting party to the Loan Documents other than
Borrower (the “Other Defaulting Party”), or (b) if the cure requires more than thirty (30) days, the Borrower or Other
Defaulting Party, if any, diligently initiates steps, on receipt of written notice of default from Lender. to cure the default
and thereafter continues and completes all reasonable and necessary steps to effect a cure as soon as reasonably practical.

 

     

     

    

 

3.       The
Loan Documents are hereby amended such that “attorneys’
fees” shall be revised to read “‘reasonable attorneys’ fees” in all instances.

 

4.       The
Guaranty Agreement shall not provide for a confession of judgment, and any such provision shall not be operative.

 

5.       Lender
shall not exercise any right or remedy against Borrower under the Assignment of Rents or under the provisions of the Credit Linc
Deed of Trust relating to assignment of rents, issues. and profits, including without limitation revocation of the license granted
to Borrower to manage and operate the Property and to collect. receive, and apply rents, issues, and profits, unless and until
an Event of Default has occurred.

 

6.       The “Environmental
Studies” paragraph appearing. in the Business Loan Agreement is hereby amended by adding the following language after the
phrase “requested by Lender” in the second line:

 

(but only in the event Lender reasonably believes
a release of Hazardous Substance(s) has occurred)

 

7.       The indemnity
or hold harmless obligations of Borrower under the Loan Documents shall not apply to claims, actions, liabilities, suits, judgments,
losses, fines, penalties, costs, expenses, or fees arising out of or caused by the gross negligence or intentional misconduct of
Lender or its employees or agents.

 

8.
      The “Financial Covenants and Ratios” paragraph in the Business Loan Agreement
is hereby amended to rend as follows:

 

DSCR
Ratio. Maintain a ratio of DSCR in excess of 1.350 to 1.000. Global Debt Service Coverage Ratio (DSCR) shall be calculated based
on the Borrower’s tiled Federal Income Tax Returns, Financial Statement(s) and Reports, as follows: cash flow divided by debt service.
This coverage ratio will be evaluated as of year-end annually beginning with the year ending
December 31, 2017.

 

9.
       Notwithstanding anything to the contrary set forth in the Loan Documents, the Borrower will maintain its books and finances on
a cash basis.

 

10.       Provided
that Borrower is not in default under the Loan Documents and provided that a loss does not exceed the sum of $100,000, Borrower
shall be entitled to receive all insurance proceeds and condemnation awards and proceeds paid or payable as a result of a casualty
or condemnation affecting the Property, so long as Borrower uses such sums to repair or restore the Property in a commercially
reasonable manner.

 

11.
    The “Power of Attorney” paragraph appearing in the Assignment of Rents is hereby
amended by adding the following sentence to the end of such paragraph:

 

    	 	2	 

     

    

 

The
powers granted in the preceding sentence shall not be exercised by Lender unless or until an Event of Default
has occurred under this Agreement.

 

12.       Any
inspections of the Collateral or the Property, both as defined in the Loan Documents, to be performed by Lender or its agents shall
not unreasonably interfere with Borrower’s normal business operations Lender is permitted to inspect the Collateral or the Property
during Lender’s normal business hours.

 

13.       The
“Hazardous Substances” paragraph appearing in the “Representations ·• section of the Hazardous Substances
Certificate and Indemnity Agreement is hereby amended to delete the phrase whenever and whether owned by previous occupants, has
ever contained” and replace it with the word “contains.’”

 

14.       The
’“Indemnitors Waiver and Indemnification’’ section of the Hazardous Substances
Certificate and Indemnity Agreement is hereby amended to insert the parenthetical phrase (other than those arising solely
out of the gross negligence, willful misconduct, or bad faith of the party to whom the obligations in this paragraph are
owed”) between the word ’ person” and subsection (a) in the fourth line of the section.

 

15.       The
’“Survival” section of the Hazardous Substances Certificate and Indemnity Agreement is hereby amended to insert the
following al the end of the paragraph:

 

Notwithstanding
anything to the contrary contained herein, the obligations and liabilities of Indemnitor under this Agreement shall terminate and
be of no further force and effect when all of the following conditions are satisfied in full:(a) there has been no change between
the date hereof and Trigger Date i n any Environmental Laws, the effect or which change may be to make a lender or mortgagee liable
in respect to any matter for which the Lender is entitled to indemnification pursuant to this Agreement, (b)
Lender shall have received, at Indemnitor’s
expense, an Environmental Report dated within ninety (90)
days of the Trigger Date showing. to the reasonable satisfaction of Lender, that there exists no
matter for which the Lender is entitled to indemnification pursuant to this Agreement, and (c) seven (7) years have passed since
the Trigger Date.

 

16.      The
term “Trigger Date is hereby added to the “Definitions’ ” section of the Hazardous Substances Certificate and Indemnity
Agreement:

 

Trigger Date.
The term “Trigger Date” means either of the following as applicable: (i) the date on
which the outstanding indebtedness under the Note shall have been paid indefeasibly in full, whether at maturity, as the result
of acceleration, in connection with any prepayment, or otherwise, or (ii) the date on which the Property shall have been conveyed
pursuant to a foreclosure of the deed of trust or deed in lieu thereof.

 

17.
     In each instance, the Loan Documents where entry of a judgment against the Borrower or Guarantor constitutes an Event of Default,
the amount of the judgment that constitutes an Event of Default is raised from $10,000 to
$50,000.

 

    	 	3	 

     

    

 

18.       The
“Application of Insurance Proceeds” section
of the Commercial Security Agreement is hereby amended to increase the monetary amount of loss that
requires notification from $1,000 to $10,000.

 

19.       The
“Guaranties” section of the Business
Loan Agreement is amended to slate that the obligations of the Guarantor under the Guaranty Agreement are limited lo losses and
or damages suffered by Lender which arise from the Borrower’s and ‘or Guarantor’s: (a) voluntary or involuntary bankruptcy filing,
(2) non-compliance with reporting and budget approval covenants contained in the related documents, (3) fraudulent conduct, (4)
material misrepresentation, (5) criminal acts, (6) misappropriation of funds or other property of the Borrower or (7) transfer
or conveyance or all or a portion of the lender’s collateral in violation of the provisions of the Related Documents.

 

20.       Except
as expressly amended and supplemented herein, the terms and conditions of the Loan Documents shall remain unchanged and in full
force and effect. Any other provisions of the Loan Documents, to the extent inconsistent with this Addendum, are hereby deemed
amended and restated to be consistent herewith in all respects.

 

(See
Attached Signatures)

 

     

     

    

 

IN WITNESS WHEREOF.
the parties have executed this Addendum as of the day and year first above written.

 

	 	BORROWER:
	 	 
	 	COF NORTH, LLC,
	 	a Virginia limited liability company
	 	 	 	 
	 	By:	COF NORTH MANAGEMENT, LLC,
	 	 	a Virginia limited liability company. its Manager
	 	 	 	 
	 	By:	/s/ Mark W. Claud	(SEAL)
	 	 	Mark W. Claud. Manager

 

COMMONWEALTH OF VIRGINIA:

 

CITY/COUNTY OF HENRICO

 

I hereby
certify that on this 2 day of November 2017, before me. the undersigned Notary Public in and for the Commonwealth
of Virginia. at large, personally, appeared Mark W. Claud the Manager of COF North Management,
LLC, a Virginia limited liability company, the Manager of COF North. LLC, a Virginia limited
liability company. known to me or satisfactorily proven to be the person whose name is subscribed
to the foregoing instrument and acknowledged that he executed the foregoing on behalf of COF North LLC, a Virginia limited liability
company, for the purposes set forth herein.

 

	 	/s/ Darci K. Poole	(Seal)
	 	 	 
	 	Notary Public	 

 

My Commission Expires: 3/31/2021

 

Registration Number: 7553162

 

     

     

    

 

	 	GUARANTOR:	 
	 	 	 
	 	MARK W. CLAUD	 
	 	 	 
	 	/s/ Mark W. Claud	(Seal)

 

COMMONWEALTH OF VIRGINIA:

 

CITY/COUNTY OF HENRICO

 

I hereby certify that on this 2 day
of November 2017, before me, the undersigned Notary Public in and for the Commonwealth
of Virginia, at large, personally appeared Mark W. Claud, known to me or satisfactorily proven to be the person whose name
is subscribed to the foregoing instrument and acknowledged that he executed the foregoing
for the purposes set forth herein .

 

	 	/s/ Darci K. Poole
	 	Notary Public

 

My Commission Expires: 3/31/2021

Registration Number: 755362

 

 

 

     

     

    

 

	 	LANGLEY FEDERAL CREDIT UNION
	 	 	 
	 	By:  	/s/ Natasha Mertz
	 	 	Authorized Signer

 

COMMONWEALTH OF VIRGINIA:

CITY COUNTY OF NEWPORT NEWS

 

I hereby certify that
on this 3 day of November, 2017, before me, the undersigned, Notary Public in and for the Commonwealth of Virginia, at large, personally
appeared Natasha Merz the VP Comm Lending of Langley Federal Credit Union, known to me or satisfactorily proven to be the person
whose name is subscribed to the foregoing instrument and acknowledged that she executed the foregoing on behalf of the Credit Union,
for the purposes set forth herein.

 

	 	/s/ Tracy E.
    Pesante	(Seal)
	 	Notary Public	 

 

My Commission Expires: 4/30/18

Registration Number: 7595763Exhibit 10.25

 

CHANGE IN TERMS AGREEMENT

 

	Principal	 	 	Loan Date	 	Maturity	 	Loan No.	 	 	Call/Coll	 	 	Account	 	 	Officer	 	Initials	 
	$	8,900,000.00	 	 	5-7-2018	 	12-01-2027	 	 	5510060956801	 	 	 		 	 	 		 	 	RP	 	 		 

 

References in the boxes above are for Lender’s
use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “****”
has been omitted due to text length limitations

 

	Borrower:	
        MDR Hanover Square, LLC

        11 S. 12th Street, Suite
        401, Richmond, Virginia 23219

        PMI Hanover Sq. LLC

        11 S. 12th Street, Suite
        401, Richmond, Virginia 23219
	Lender:	
        Langley Federal Credit Union

        721 Lakefront Commons

        Newport News, VA 23606

	Guarantors:	
        William R. Elliott

        9 Albemarle Avenue, Richmond, Virginia
        23226

        Thomas E. Messier

        207 Massie Road, Richmond, Virginia
        23221

        Kurt A. Schirm

        406 Page Road, Nashville, Tennessee
        37205

        Peter Mueller, Inc.

        406 Page Road, Nashville, Tennessee
        37205
	 	 

 

 

 

IMPORTANT NOTICE

 

THIS INSTRUMENT CONTAINS A CONFESSION
OF JUDGMENT PROVISION WHICH CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOUR MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN
A JUDGMENT AGAINST YOU WITHOUT ANY FURTHER NOTICE.

 

	Principal Amount: $8,900,000.00	Date of Agreement: May 7, 2018

 

DESCRIPTION OF ORIGINAL INDEBTEDNESS.
Promissory Note dated November 3, 2017 in the original amount of $8,600,000.00.

 

DESCRIPTION OF COLLATERAL. Borrower
acknowledges this Note is secured by the following collateral described in the security instrument listed herein: (A) Credit Line
Deed of Trust dated November 3, 2017, to the Lender’s trustees in favor of Lender on real property located in Hanover County,
Commonwealth of Virginia, further amended by a Modification of Deed of Trust dated May 3, 2018, to the Lender’s trustees
in favor of Lender on real property located in Hanover County, Commonwealth of Virginia. The Real Property or its address is commonly
known as 7230 Bell Creek Road, Mechanicsville, VA 23111; (B) an Assignment of Rents to Lender on real property located in Hanover
County, Commonwealth of Virginia. The real property or its address is commonly known as 7230 Bell Creek Road, Mechanicsville, VA
23111; and (C) All inventory, goods, chattel paper, accounts, equipment, general intangibles, fixtures, standing timber and mineral,
oil and gas described in a Commercial Security Agreement dated November 3, 2017.

 

DESCRIPTION OF CHANGE IN TERMS.
(A) The current loan to COF North, LLC, a Virginia limited liability company will be assigned to and assumed by MDR Hanover Square,
LLC, a Delaware limited liability company and PMI Hanover Sq. LLC, a Delaware limited liability company, as tenants in common;
(B) Lender hereby increases the outstanding loan balance to $8,900,000.00; and (C) An increase to the initial principal and interest
payment amount of $49,774.06 to $51,992.51 as per the Payment section. The new payment goes into effect June 1, 2018. Any remaining
unpaid balance will be applied towards the balance of the loan and will be due at maturity. (D) The loan, evidenced by the Note
described herein, will now bear the identifying loan number of 5510060956801. (E) The attached Transfer Language is hereby incorporated
into the Loan Documents where applicable.

 

PROMISE TO PAY. MDR Hanover Square,
LLC, a Delaware limited liability company and PMI Hanover Sq., a Delaware limited liability company (collectively, “Borrower”)
jointly and severally promise to pay to Langley Federal Credit union (“Lender”), or order, in lawful money of the United
States of America, the principal amount of Eight Million Nine Hundred Thousand & 00/100 Dollars ($8,900,000.00), together with
interest on the unpaid principal balance from May 4, 2018, until paid in full.

 

PAYMENT. Subject to any payment changes
from changes in the Index, Borrower will pay this loan in accordance with the following payment schedule, which calculates interest
on the unpaid principal balances as described in the “INTEREST CALCULATION METHOD” paragraph using the interest rates
described in this paragraph; 55 monthly consecutive principal and interest payments in the initial amount of $51,992.51 each beginning
June 1, 2018, with interest calculated on the unpaid principal balances using an interest rate of 4.900%; 59 monthly consecutive
principal and interest payments, beginning January 1, 2023, with interest calculated on the unpaid principal balance using an interest
rate based on the Index described below, plus a margin of 3.100 percentage points, adjusted if necessary for the minimum and maximum
rate limitations for this loan; and one principal and interest payment on December 1, 2027, with interest calculated on the unpaid
principal balances using and interest rate based on the Index described below, plus a margin of 3.100 percentage points, adjusted
if necessary for the minimum and maximum rate limitations for this loan. The final payment will be for all principal and accrued
interest not yet paid, together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable
law, payments will be applied to any accrued unpaid interest. Borrower will pay Lender at Lender’s address shown above or
at such other place as Lender may designate in writing. All payments must be made in U.S. dollars and must be received by Lender
consistent with any written payment instructions provided by Lender. If a payment is made consistent with Lender’s payment
instructions but received after 4:00 PM Eastern Time, Monday through Friday, during Holidays or weekends, Lender will credit Borrower’s
payment on the next business day.

 

VARIABLE INTEREST RATE. The interest
rate on this loan is subject to change from time to time based on changes in an independent index which is the daily average yield
on United States Treasury securities adjusted to a constant maturity of five years, as made available by the Federal Reserve Board
(the “Index”). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable
during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current
Index rate upon Borrower’s request. The interest rate change will not occur more often than each 5 years. Borrower
understands that Lender may make loans based on other rates as well. The interest rate or rates to be applied to the unpaid principal
balance during this loan will be the rate or rates set forth herein in the “Payment” section. Notwithstanding any other
provision of this Agreement, after the first payment stream, the interest rate for each subsequent payment stream will be effective
as of the due date of the last payment in the just-ending payment stream. NOTICE: Under no circumstances will the interest rate
on this loan

 

     

     

    

 

CHANGE IN TERMS

(Continued)

 

	Loan No. 5510060956801	Page 2

 

 

 

be less than 4.900% per annum or more than
the maximum rate allowed by applicable law. Whenever increases occur in the interest rate, Lender, at its option, may do one or
more of the following: (A) increase Borrower's payments to ensure Borrower's loan will pay off by its original final maturity date,
(B) increase Borrower's payments to cover accruing interest, (C) increase the number of Borrower's payments, and (D) continue Borrower's
payments at the same amount and increase Borrower's final payment.

 

INTEREST CALCULATION METHOD. Interest
on this Note is computed on a 30/360 simple interest basis; that is, with the exception of odd days before the first full payment
cycle, monthly interest is calculated by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by a month of 30 days. Interest for the odd days before the first full month is calculated on the
basis of the actual days and a 360-day year. All interest payable under this Note is computed using this method.

 

PREPAYMENT. Borrower agrees that
all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon
early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower
may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by
Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early
payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send
Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment,
Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further
amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions
or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Langley Federal Credit Union, Commercial
Lending Department, 721 Lakefront Commons, Suite 105 Newport News, VA 23606.

 

LATE CHARGE. If a payment other
than the final payment is 15 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled
payment.

 

INTEREST AFTER DEFAULT. Upon default,
including failure to pay upon final maturity, the interest rate on this loan shall be increased by adding as additional 2.000 percentage
point margin (“Default Rate Margin”). The Default Rate Margin shall also apply to each succeeding interest rate change
that would have been applied has there been no default. After maturity, or after this loan would have matured had there been no
default, the Default Rate Margin will continue to apply to the final interest rate described in this Agreement. However, in no
event will the interest rate exceed the maximum interest rate limitations under applicable law.

 

DEFAULT. Each of the following shall
constitute an Event of Default under this Agreement:

 

Payment Default.
Borrower fails to make any payment when due under the Indebtedness.

 

Other Defaults. Borrower
fails to comply with or to perform any other term, obligation, covenant or condition in this Agreement or in any of the Related
Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between
Lender and Borrower.

 

Environmental Default.
Failure of any party to comply with or perform when due any term, obligation, covenant or condition contained in any environmental
agreement executed in connection with any Indebtedness.

 

False Statements. Any
warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf, or made by Guarantor,
or any other guarantor, endorser, surety, or accommodation party, under this Agreement or the Related Documents in connection with
the obtaining of the Indebtedness evidenced by this Agreement or any security documents directly or indirectly securing repayment
of this Agreement is false or misleading in any material respect, either now or at the time made or furnished or becomes false
or misleading at any time thereafter.

 

Death or Insolvency. The
dissolution or termination of Borrower’s existence as a going business or the death of any member, or a trustee or receiver
is appointed for Borrower or for all or a substantial portion of the assets of Borrower, or Borrower makes a general assignment
for the benefit of Borrower’s creditors, or Borrower files for bankruptcy, or an involuntary bankruptcy petition is filed
against Borrower and such involuntary petition remains undismissed for sixty (60) days.

 

Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method,
by any creditor of Borrower or by any governmental agency against any collateral securing the Indebtedness. This includes a garnishment
of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if
there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor
or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with
Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion,
as being an adequate reserve or bond for the dispute.

 

Execution; Attachment.
Any execution or attachment is levied against the Collateral, and such execution or attachment is not set aside, discharged or
stayed within thirty (30) days after the same is levied.

 

Change in Zoning or Public
Restriction. Any change in any zoning ordinance or regulation or any other public restriction is enacted, adopted or implemented,
that limits or defines the uses which may be made of the Collateral such that the present or intended use of the Collateral, as
specified in the Related Documents, would be in violation of such zoning ordinance or regulation or pubic restriction, as changed.

 

Default Under Other Lien Documents.
A default occurs under any other mortgage, deed of trust or security agreement covering all or any portion of the Collateral.

 

     

     

    

 

CHANGE IN TERMS

(Continued)

 

	Loan No. 5510060956801	Page 3

 

 

 

Judgment. Unless adequately
covered by insurance in the opinion of Lender, the entry of a final judgment for the payment of money involving more than ten thousand
dollars ($10,000.00) against Borrower and the failure by Borrower to discharge the same, or cause it to be discharged, or bonded
off to Lender’s satisfaction, within thirty (30) days from the date of the order, decree or process under which or pursuant
to which such judgment was entered.

 

Events Affecting Guarantor.
Any of the preceding events occur with respect to any Guarantor, or any other guarantor, endorser, surety, or accommodation party
or any of the Indebtedness or any Guarantor, or any other guarantor, endorser, surety, or accommodation party dies or becomes incompetent,
or revokes or disputes the validity of, or liability under, and Guaranty of the Indebtedness evidences by this Note.

 

Adverse Change. A material adverse
change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance of the Indebtedness
is impaired.

 

Cure Provisions. If any
default, other than a default in payment, is curable and if Borrower has not been given a notice of a breach of the same provision
of this Agreement within the preceding six (6) months, it may be cured if Borrower, after Lender sends written notice to Borrower
demanding cure of such default: (1) cures the default within thirty (30) days; or (2) if the cure requires more than thirty (30)
days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient to cure the default and
thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.

 

LENDER’S RIGHTS. Upon default,
Lender may declare the entire unpaid principal balance under this Agreement and all accrued unpaid interest, together with all
other applicable fees, costs and charges, if any, immediately due and payable, and then Borrower will pay that amount.

 

ATTORNEY’S FEES; EXPENSES.
Subject to any limits under applicable law, upon default, Borrower agrees to pay Lender’s attorney’s fees and all of
Lender’s other collection expenses, whether or not there is a lawsuit, including without limitation legal expenses for bankruptcy
proceedings.

 

GOVERNING LAW. This Agreement will
be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of
Virginia without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the Commonwealth of Virginia.

 

CHOICE OF VENUE. If there is a lawsuit,
Borrower agrees upon Lender’s request to submit to the jurisdiction of the applicable courts for the City of Newport News,
Commonwealth of Virginia.

 

CONFESSION OF JUDGMENT. Upon a default
in payment of the Indebtedness at maturity, whether by acceleration or otherwise, Borrower hereby irrevocably authorizes and empowers
Natasha Merz, Curtis A. Baker or an authorized officer of Langley Federal Credit Union either one of who may act as Borrower’s
attorney-in-fact to appear in the Circuit Court of the City of Newport News clerk’s office and to confess judgment against
Borrower for the unpaid amount of this Agreement as evidences by an affidavit signed by an officer of Lender setting forth for
the amount then due, attorney’s fees plus costs of suit, and to release all errors, and waive all rights of appeal. By a
written instrument Lender may appoint a substitute for the above named attorney-in-fact. If a copy of this Agreement, verified
by an affidavit, shall have been filed in the proceeding, it will not be necessary to file the original as a warrant of attorney.
Borrower waives the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect. No single
exercise of the foregoing warrant and power to confess judgment will be deemed to exhaust the power, whether or not any such exercise
shall be held by any court to be invalid, voidable, or void; but the power will continue undiminished and may be exercised from
time to time as Lender may elect until all amounts owing on this Agreement have been paid in full.

 

STATUTORY LIEN. Borrower agrees
that all Indebtedness is secured by all shares and deposits in all joint and individual accounts Borrower has with Lender now and
in the future. Borrower authorizes Lender, to the extent permitted by applicable law, to apply the balance in these accounts to
pay any amounts due under this Agreement when Borrower is in default under this Agreement. Shares and deposits in an Individual
Retirement Account and any other account that would lose special tax treatment under state or federal law if given as security
are not subject to the security interest Borrower has given in Borrower’s shares and deposits.

 

COLLATERAL. Borrower acknowledges
this Agreement is secured by the following collateral described in the security instruments listed herein:

 

(A) Credit Line Deed of Trust
dated November 3, 2017, to a trustee in favor of Lender on real property located in Hanover County, Commonwealth of Virginia further
amended by a Modification Deed of Trust dated May 3, 2018, to a trustee in favor of Lender on real property located in Hanover
County, Commonwealth of Virginia. The Real Property or its address is commonly known as 7230 Bell Creek Road, Mechanicsville, VA
23111.

 

(B) an Assignment of Rents to
Lender on real property located in Hanover County, Commonwealth of Virginia. The real property or its address is commonly known
as 7230 Bell Creek Road, Mechanicsville, VA 23111.

 

(C) All inventory, goods, chattel
paper, accounts, equipment, general intangibles, fixtures, standing timber and mineral, oil and gas described in a Commercial Security
Agreement dated November 3, 2017.

 

CONTINUING VALIDITY. Except as expressly
changed by this Agreement, the terms of the original obligations, including all agreements evidenced or securing the obligation(s),
remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender’s right to strict
performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement
will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers
of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any
maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the
original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given
conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise
will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such
subsequent actions.

 

     

     

    

 

CHANGE IN TERMS

(Continued)

 

	Loan No. 5510060956801	Page 4

 

 

 

SUCCESSORS AND ASSIGNS. Subject
to any limitations stated in this Agreement on transfer of Borrower’s interest, this Agreement shall be binding upon and
inure to the benefit of the parties, their heirs, personal representatives, successors and assigns. If ownership of the Collateral
becomes vested in a person other than Borrower, Lender, without notice to Borrower, may deal with Borrower’s successors with
reference to this Agreement and the indebtedness by way of forbearance or extension without releasing Borrower from the obligations
of this Agreement or liability under the Indebtedness.

 

NOTIFY US OF INACCURATE INFORMATION
WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to
a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following
address: Langley Federal Credit Union, Commercial Lending Department 721 Lakefront Commons, Suite 105, Newport News, VA 23606.

 

MISCELLANEOUS PROVISIONS. If any
part of this Agreement cannot be enforced, this fact will not affect the rest of the Agreement. Lender may delay or forgo enforcing
any of its rights or remedies under this Agreement without losing them. Borrower and any other person who signs, guarantees or
endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any
change in the terms of this Agreement, and unless otherwise expressly stated in writing, no party who signs this Agreement, whether
as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may
renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail
to realize upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary by Lender
without the consent of or notice to anyone. All such security interest in the collateral; and take any other action deemed necessary
by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the
consent of or notice to anyone other than the party with whom the modification is made.

 

PRIOR TO SIGNING THIS AGREEMENT, BORROWER
AND GUARANTORS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARAIBLE INTEREST RATE PROVISIONS. BORROWER
AGREES TO THE TERMS OF THE AGREEMENT.

 

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

 

     

     

    

 

CHANGE IN TERMS

(Continued)

 

	Loan No. 5510060956801	Page 5

 

 

 

BORROWER:

 

	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
	 	 

 

BORROWER:

 

PMI HANOVER SQ. LLC, a Delaware limited
liability company

 

	By: Peter Mueller, Inc., a Virginia corporation	 	 
	Its: Manager	 	 
	 	 	 	 
	 	By Peter Mueller, Inc., a Virginia corporation	(Seal)	 
	 	Its: Manager	 	 
	 	/s/ Kurt A. Schirm	 	 
	 	Kurt A. Schirm	 	 
	 	President	 	 

 

GUARANTORS:

 

	/s/ William R. Elliott	(Seal)	 
	William R. Elliott	 	 
	 	 	 
	/s/ Thomas E. Messier	(Seal)	 
	Thomas E. Messier	 	 
	 	 	 
	/s/ Kurt A. Schirm	(Seal)	 
	Kurt A. Schirm	 	 
	 	 	 
	PETER MUELLER, INC., a Virginia corporation	 	 
	 	 	 
	/s/ Kurt A. Schirm	(Seal)	 
	Kurt A. Schirm, President	 	 

 

     

     

    

 

CHANGE IN TERMS

(Continued)

 

	Loan No. 5510060956801	Page 6

 

 

 

Transfer Provisions

 

“Affiliated Manager” shall
mean any managing agent of the Property in which Borrower, Guarantor, Sponsor, any SPE Component Entity (if any) or any affiliate
of such entities has, directly or indirectly, any legal, beneficial or economic interest.

 

“Embargoed Person” shall
mean by any Person subject to trade restrictions under United States law, including, but not limited to, the International Emergency
Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., the Patriot
Act and any Executive Orders or regulations promulgated thereunder, each as may be amended from time to time.

 

“FINRA” shall mean the
Financial Industry Regulatory Authority.

 

“FINRA Member” shall
mean a person or entity who is, as of a particular date of determination, a member of FINRA in good standing.

 

“Manager” shall mean
Dodson Commercial, LLC d/b/a Shockoe Commercial Properties.

 

“Permitted REIT Transfer”
shall mean either (a) the issuance of shares of common stock in the REIT pursuant to an offering made in accordance with SEC Regulation
A, provided that either: (i) each investor purchasing any such shares shall have made representations and warranties in favor of
the REIT confirming that such investor is not an Embargoed Person and such searches and reviews as may be necessary to confirm
that no such investor is an Embargoed Person have been conducted either by (A) the REIT in accordance with applicable legal requirements
and the requirements of FINRA or (B) if a FINRA Member broker-dealer is involved in the issuance of such shares, by such FINRA
Member in accordance with the requirements of FINRA and any other applicable legal requirements; or (ii) such shares are purchased
by one or more FINRA Member underwriters, each of which shall make representations to the REIT sufficient to confirm that no such
underwriter is an Embargoed Person nor will any such underwriter sell such shares to any Embargoed Person and each such underwriter
shall, prior to the transfer of any such shares to any investor, perform such searches and reviews as may be necessary to confirm
that no such investor is an Embargoed Person, such searches and reviews to be conducted in accordance with the requirements of
FINRA and any other applicable legal requirements or (b) transfers of shares of common stock in the REIT by the owners thereof
on either a national securities exchange or an over-the-counter trading system, provided that each such transfer shall be made
through a FINRA Member which shall have performed such searches and reviews as may be necessary to confirm that no transferee of
any such shares is an Embargoed Person and as otherwise required FINRA and any other applicable legal requirements, provided that
in the case of either the foregoing clause (a) or clause (b), such issuance or transfer shall also comply with the requirements
of Section 1(a)(iii) clauses B through G and J.

 

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

 

“Restricted Party” shall
mean Borrower, Sponsor, Guarantor, any SPE Component Entity, any Affiliated Manager, or any shareholder, partner, member or non-member
manager, or any direct or indirect legal or beneficial owner of Borrower, Sponsor, Guarantor, any SPE Component Entity, any Affiliated
Manager or any non-member manager.

 

“SPE Component Entity”
shall mean each managing member of a Borrower.

 

“Sponsor(s)” shall mean
individually and collectively, Bill Elliott, an individual, Tim Messier, an individual, and Kurt Schirm, an individual.

 

		1.	Permitted Equity Transfers.

 

Notwithstanding
any other provision of the Loan Documents, the following equity transfers shall be permitted without Lender’s consent:

 

(A) the sale,
transfer or issuance of shares of common stock in any Restricted Party that is a publicly traded entity, provided such shares of
common stock are listed on the New York Stock Exchange or another nationally recognized stock exchange or (B) a Permitted REIT
Transfer; provided, that, the foregoing shall not be deemed to waive, qualify or otherwise limit Borrower’s
obligation to comply (or to cause the compliance with) the other covenants set forth herein and in the other Loan Documents (including,
without limitation, the covenants contained herein relating to ERISA matters).

 

a transfer
(but not a pledge) by devise or descent or by operation of law upon the death or declaration of incompetence of a Restricted Party
or any member, partner or shareholder of a Restricted Party, or the transfer (but not the pledge) in one or a series of transactions
of the stock, partnership interests or membership interests (as the case may be) in a Restricted Party (provided, that,
the foregoing shall not be deemed to waive, qualify or otherwise limit Borrower’s obligation to comply (or to cause the compliance
with) the other covenants set forth herein and in the other Loan Documents), so long as, in any case, each of the following conditions
is satisfied:

 

     

     

    

 

no Event
of Default has occurred and is continuing beyond any applicable notice and/or cure periods, or would occur as a result of such
transfer;

 

Lender shall
receive not less than thirty (30) days prior written notice of such transfers (except in the case of a transfer occurring upon
the death or declaration of incompetence of any Person, in which case Lender shall receive written notice thereof not more than
thirty (30) days after such transfer);

 

no such transfers
shall result in a change in control of Sponsor, Guarantor or Affiliated Manager;

 

after giving
effect to such transfers, one or more Sponsors shall (1) own at least a 51% direct or indirect equity ownership interest in each
of each Borrower and any SPE Component Entity; (2) control each Borrower and any SPE Component Entity and (3) control the day-to-day
operation of the Property;

 

after giving
effect to such transfers, the Property shall continue to be managed by Manager or a replacement Manager approved in accordance
with the applicable terms and conditions hereof;

 

in the case
of the transfer of any direct equity ownership interests in Borrower or in any SPE Component Entity, such transfers shall be conditioned
upon continued compliance with the relevant provisions of Exhibit C hereof;

 

such transfers
shall be conditioned upon Borrower’s ability to, after giving effect to the equity transfer in question, (1) remake
the representations contained herein relating to ERISA matters (and, upon Lender’s request, Borrower shall deliver to Lender
an Officer’s Certificate containing such updated representations effective as of the date of the consummation of the applicable
equity transfer) and (2) continue to comply with the covenants contained herein relating to ERISA matters;

 

such transfers
shall be permitted pursuant to the terms of the Tenants in Common Agreement by and among the Borrowers;

 

if after
giving effect to any equity transfer set forth in Section 1(a)(ii), ten percent (10%) or more in the aggregate of the direct or
indirect ownership interests in Borrower, any SPE Component Entity or any Guarantor that is not a natural person would be owned
by a Person (together with its Affiliates) which did not own ten percent (10%) or more of the direct or indirect ownership interests
in such Person on the Closing Date or as a result of other equity transfers previously made in accordance with the terms and provisions
of this Agreement, then, as a condition to any such equity transfer being permitted hereunder, Borrower shall deliver Lender credit
searches (in form, scope and substance and from a provider, in each case, reasonably acceptable to Lender) with respect to such
equity transfer; and

 

if after
giving effect to any equity transfer set forth in Section 1(a)(ii), forty nine percent (49%) or more in the aggregate of the direct
or indirect ownership interests in any Borrower, any SPE Component Entity or any Guarantor that is not a natural person would be
owned by a Person (together with its Affiliates), other than Sponsor, which did not own forty nine percent (49%) or more of the
direct or indirect ownership interests in such Borrower, any SPE Component Entity or such Guarantor, as applicable, on the Closing
Date or as a result of other equity transfers previously made in accordance with the terms and provisions of this Agreement, then,
as a condition to any such equity transfer being permitted hereunder, Borrower shall deliver to Lender (1) a rating agency
confirmation.

 

the issuance
or transfer (but not the pledge) in one or a series of transactions of ownership interests, including, without limitation, common
or preferred stock and common or preferred partnership interests in Medalist Diversified REIT, Inc., a Maryland corporation (the
“REIT”) or Medalist Diversified Holdings, L.P., a Delaware limited partnership (the “OP”)
(provided, that, the foregoing shall not be deemed to waive, qualify or otherwise limit Borrower’s obligation
to comply (or to cause the compliance with) the other covenants set forth herein and in the other Loan Documents), so long as,
in any case, each of the following conditions is satisfied:

 

no Event
of Default has occurred and is continuing, or would occur as a result of such transfer;

 

no such transfers
shall result in a change in control of Sponsor, Guarantor or Affiliated Manager;

 

after giving
effect to such transfers, the REIT remains the general partner of the OP;

 

after giving
effect to such transfers, one or more Sponsors shall (1) control each Borrower and any SPE Component Entity and (2) control the
day-to-day operation of the Property;

 

after giving
effect to such transfers, the Property shall continue to be managed by Manager or a replacement Manager approved in accordance
with the applicable terms and conditions hereof;

 

such transfers
shall be conditioned upon Borrower’s ability to, after giving effect to the equity transfer in question, (1) remake
the representations contained herein relating to ERISA matters (and, upon Lender’s request, Borrower shall deliver to Lender
an Officer’s Certificate containing such updated representations effective as of the date of the consummation of the applicable
equity transfer) and (2) continue to comply with the covenants contained herein relating to ERISA matters;

 

such transfers
shall be permitted pursuant to the terms of the Tenants in Common Agreement by and among the Borrowers;

 

     

     

    

 

if after
giving effect to any equity transfer set forth in Section 1(a)(iii), twenty percent (20%) or more in the aggregate of the direct
or indirect ownership interests in any Borrower, any SPE Component Entity or any Guarantor that is not a natural person would be
owned by a Person (together with its Affiliates) which did not own twenty percent (20%) or more of the direct or indirect ownership
interests in such Person on the Closing Date or as a result of other equity transfers previously made in accordance with the terms
and provisions of this Agreement, then, as a condition to any such equity transfer being permitted hereunder, Borrower shall deliver
Lender credit searches (in form, scope and substance and from a provider, in each case, reasonably acceptable to Lender) with respect
to such equity transfer at least thirty (30) days prior to the occurrence of such transfer; and

 

if after
giving effect to any equity transfer set forth in Section 1(a)(ii), forty nine percent (49%) or more in the aggregate of the direct
or indirect ownership interests in any Borrower, any SPE Component Entity or any Guarantor that is not a natural person would be
owned by a Person (together with its Affiliates), other than Sponsor, which did not own forty nine percent (49%) or more of the
direct or indirect ownership interests in such Borrower, any SPE Component Entity or such Guarantor, as applicable, on the Closing
Date or as a result of other equity transfers previously made in accordance with the terms and provisions of this Agreement, then,
as a condition to any such equity transfer being permitted hereunder, Borrower shall deliver to Lender a rating agency confirmation.

 

Lender shall
receive written notice of any such transfer not more than ten (10) Business Days after such transfer (provided that nothing in
this clause (J) shall limit the requirements of clauses (H) and (I) above).

 

b.       Upon
request from Lender, Borrower shall promptly provide Lender a revised version of the Organizational Chart reflecting any equity
transfer consummated in accordance with this Section 1.

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