Document:

Cross
InDEMNIFICATION agreemenT

 

This
CROSS INDEMNIFICATION AGREEMENT (this “Agreement”) made as of this 9th day of January, 2015 by
and among: (i) Landwin Chandler, LLC, a Delaware limited partnership (“Borrower”), (ii)
Landwin/Tempe Square, LLC, an Arizona limited liability company and sole member of the Borrower (“Sole Member”),
(iii) Landwin Partners Fund I, LLC, a Delaware limited liability company (the “Guarantor”), and
(iv) Landwin Management LLC, a Delaware limited liability company (the “Manager” and, together with
Borrower, Sole Member and Guarantor, each sometimes referred to herein individually as a “Party”, and
collectively, as the “Parties”). Capitalized terms used herein but not otherwise defined herein shall
have the meanings ascribed thereto in the Loan Agreement (as defined below).

 

WHEREAS,
the Guarantor has executed and delivered that certain Guaranty of Recourse Obligations dated as of January 9, 2015, a copy of
which is attached hereto as Exhibit A (the “Guaranty”), with respect to certain obligations (the
“Guaranteed Obligations”) under the Loan Agreement referenced therein (the “Loan Agreement”);

 

WHEREAS,
the lender under the Loan Agreement required, as a condition precedent to the loan under the Loan Agreement, that the Guarantor
provide the Guaranty;

 

WHEREAS,
the Guarantor and the Borrower are affiliated entities;

 

WHEREAS,
the compensation that is paid to the Guarantor was determined by referenced to the amount that a third party insurance company
would charge for providing a similar guaranty or policy;

 

WHEREAS,
the Guaranty will create a payment obligation of the Guarantor only if certain actions are taken, directly or indirectly, by any
of the Parties or if the Borrower breached or breaches certain representations and warranties or covenants, each of which is subject
to the review and approval of the Manager; and

 

WHEREAS,
in connection with the foregoing transactions, the Parties desire to set forth their understanding with respect to their obligations
in the event that the Guarantor incurs any liability pursuant to the Guaranteed Obligations.

 

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

 

1.
Agreement to Hold Harmless. 

 

(a)
In the event Guarantor pays any amount under the Guaranty, then Borrower shall, within three (3) business days after receipt of
notice thereof (the “Due Date”), pay to Guarantor an amount in cash equal to 100% of the amount such
payment by Guarantor, plus the Interest Amount.

 

    	 

    	 

    

 

(b)
In the event that Guarantor pays any amount under the Guaranty and such payment arises from or is related to a Management Action,
then the Manager shall pay to Guarantor an amount in cash equal to 100% of the amount such payment by Guarantor, plus the Interest
Amount, less the amount actually received by Guarantor from the Borrower.

 

(c)
For the purposes of this Agreement, the following terms shall have the respective meanings provided below:

 

(i)
“Interest Amount” shall mean an amount that is computed at an annual rate of 15%, compounded annually,
accruing from the date that a payment is made under the Guaranty by Guarantor to the date that Guarantor has been reimbursed in
full, and has been held harmless, by Borrower or Manager, as the case may be.

 

(ii)
“Management Action” shall mean any of the following events or actions to the extent it creates or is
related to any event that triggers a payment obligation by Guarantor under the Guaranty:

 

(A)
Any action that is taken, directly or indirectly, by the Manager;

 

(B)
Any action that is taken by Borrower or any of its Affiliates that is authorized or permitted, directly or indirectly, by the
Manager; or

 

(C)
Any breach or default of any of the representations and warranties of Borrower under the loan agreement reference in the Guaranty
or any supplement thereto.

 

2.
Notice of Claims. Guarantor will provide Borrower and Manager notice of any claim against Guarantor for payment under the
Guaranty (a “Claim”). Guarantor will not increase the aggregate liability of Guarantor under the Guaranty
without the prior consent of Borrower.

 

3.
Obligations of the Manager. The Manager shall all commercially reasonable efforts to prosecute fully all of the rights
of Guarantor under this Agreement.

 

4.
Consideration. The Borrower shall pay the Guarantor, as consideration for providing the Guaranty, an amount equal to $38,750.00,
which amount the parties acknowledge has been paid in full.

 

5.
Nature of Obligations. This Agreement creates an obligation of payment and not of collection and each of Borrower and the
Manager waives: (i) any right to require that any action be brought against each such Party prior to, or at the same time as,
any other Party or any other person or party and (ii) notice of presentment, protest, notice of protest, notice of non-payment,
notice of dishonor, notice of intent to accelerate and notice of acceleration with respect to a default hereunder by any such
Party. Each of Borrower and the Manager hereby consents and agrees and acknowledges that the obligations under this Agreement
hereunder shall not be released or discharged by any act or omission by or on behalf of Guarantor or any other person which would
otherwise constitute or create a legal or equitable defense in favor of Borrower or the Manager (or both).

 

    	-2-

    	 

    

 

6.
Attorney Fees. If any dispute arises between any of the Parties with respect to this Agreement, then all reasonable attorney’s
fees and disbursements incurred by the prevailing Party in any action, arbitration or other judicial or quasi-judicial proceeding
with respect to such dispute shall be paid, on demand, by the non-prevailing Party or Parties. To the extent such payment is not
timely paid, the amount due to the Prevailing Party shall be increased by interest accruing at the rate imposed under New York
law for unpaid judgments.

 

7.
 Arbitration. Any dispute or claim arising out of or in connection with your employment with the Company will be
finally settled by binding arbitration conducted in accordance with the then-current California Arbitration Act Rules (the “California
Rules”), to the extent not inconsistent with the American Arbitration Association (“AAA”)
Rules (as defined below), and pursuant to California law without reference to rules of conflicts of law or rules of statutory
arbitration. The parties agree that any arbitration will be administered by the AAA and that one neutral arbitrator will be selected
in a manner consistent with the AAA National Rules for the Resolution of Employment Disputes (the “AAA Rules”).
The location of the arbitration shall be in the same city as the Company’s headquarters at the time of the arbitration.
Except as provided by the California Rules, arbitration shall be the sole, exclusive, and final remedy for any dispute between
the Employee and the Company. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction
hereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim
relief, or to compel arbitration in accordance with this paragraph, without breach of this arbitration provision. This section
shall survive the term of this Agreement.

 

8.
Governing Law. For purposes of construction, interpretation and enforcement, this Agreement shall be deemed to have been
entered into under the laws of the State of California and its validity, effect, performance, interpretation, construction and
enforcement shall be governed by and subject to the laws of the State of California without reference to its choice of law rules.

 

9.
Exclusive Jurisdiction. Subject to the provisions of Section 18, all actions and proceedings arising out of, or relating
to, this Agreement shall be heard and determined in any state or federal court sitting in the West Los Angeles Branch in Santa
Monica, California. Each of the Parties, by execution and delivery of this Agreement: (i) expressly and irrevocably consent and
submit to the personal jurisdiction of any of such courts in any such action or proceeding; (ii) consent to the service of any
complaint, summons, notice or other process relating to any such action or proceeding by delivery thereof to such party by hand
or by U.S. certified mail without return receipt requested, delivered or addressed as set forth in Section 15 of this Agreement;
and (iii) waive any claim or defense in any such action or proceeding based on any alleged lack of personal jurisdiction, improper
venue or forum non conveniens or any similar basis.

 

10.
Expenses. The Borrower shall pay all costs and expenses of all of the Parties that are incident to the negotiation and
preparation of this Agreement.

 

    	-3-

    	 

    

 

11.
Miscellaneous.

 

(a)
This Agreement may be executed in one or more counterparts, each of which shall be considered an original instrument, but all
of which shall be considered one and the same agreement.

 

(b)
The section headings herein are for convenience of reference only and shall not be used to construe the meaning of any provision
of this Agreement.

 

(c)
Any word or term used in this Agreement in any form shall be masculine, feminine, neuter, singular or plural, as proper reading
requires. The words “herein”, “hereof”, “hereby” or “hereto” shall refer to this
Agreement unless otherwise expressly provided. Any reference herein to a section or any exhibit or schedule shall be a reference
to a section of, and an exhibit or schedule to, this Agreement unless the context otherwise requires.

 

(d)
This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and assigns.

 

12.
Severance Provision. If any provision of this Agreement or application to any Party or circumstances shall be determined
by any court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement or the application
of such provision to such Party or circumstances, other than as to which it is so determined invalid or unenforceable, shall not
be affected thereby, and each provision shall be valid and shall be enforced to the fullest extent permitted by law.

 

13.
Integration. This Agreement contains the entire understanding and agreement of the Parties relating to the subject matter
hereof and all prior agreements relative hereto which are not contained herein are terminated.

 

14.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and
all of which, when taken together, shall be deemed one Agreement, but no counterpart shall be binding unless an identical counterpart
shall have been executed and delivered by each of the other parties hereto.

 

15.
Notices. All notices, requests, demands or other communications hereunder shall be in writing and shall be delivered and
deemed to have been provided to Parties at the principal office of such Party.

 

16.
Representations and Warranties. Each of the Parties represents and warrants that such Party has duly authorized, executed
and delivered this Agreement and this Agreement constitutes the valid and legally binding obligation of such Party, enforceable
in accordance with its terms and conditions.

 

17.
Covenants. Each of the Parties warrants and covenants that it has not and will not take, or cause any Affiliate, officer,
director or representative, to take, any action that constitutes a Springing Recourse Event.

 

18.
Waiver. No failure or delay by any Party in exercising any right or remedy against the other parties hereto shall operate
as a waiver of such right or remedy or of any other right or remedy.

 

    	-4-

    	 

    

 

 IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first set forth above. 

   

 LANDWIN
PARTNERS FUND I, LLC 

   

	 By:
    	 Landwin
    Management, LLC, its Manager 	   

   

	   	 By:
    	 Sylvia
    Inc., a California corporation,  	   
	   	   	 its Authorized
    Signatory 	   

 

	   	 By: 	 /s/
    Martin Landis 	   
	   	 Name: 	 Martin Landis 	   
	   	 Title: 	 Chief Executive
    Officer 	   

   

 LANDWIN
CHANDLER, LLC 

   

	 By: 	 Sylvia
    Inc., a California corporation, 	   
	   	 its Authorized
    Signatory 	   

   

	   	 By: 	 /s/
    Martin Landis 	   
	   	 Name: 	 Martin Landis 	   
	   	 Title: 	 Chief Executive
    Officer 	   

   

 LANDWIN/TEMPE
SQUARE, LLC 

   

	 By: 	 Sylvia
    Inc., a California corporation, 	   
	   	 its Authorized
    Signatory 	   

   

	   	 By: 	 /s/
    Martin Landis 	   
	   	 Name: 	 Martin Landis 	   
	   	 Title: 	 Chief Executive
    Officer 	   

   

 LANDWIN
MANAGEMENT, LLC 

   

	 By:
    	 Sylvia
    Inc., a California corporation, 	   
	   	 its Authorized
    Signatory 	   

   

	   	 By: 	 /s/
    Martin Landis 	   
	   	 Name: 	 Martin Landis 	   
	   	 Title: 	 Chief Executive
    Officer 	 

 

    	-5-

    	 

    

 

Exhibit
A

 

GUARANTY
OF RECOURSE OBLIGATIONS

 

This
GUARANTY OF RECOURSE OBLIGATIONS (this “Guaranty”) is executed as of January 9, 2015 by LANDWIN PARTNERS FUND
I, LLC, a Delaware limited liability company, having its principal place of business at 17200 Ventura Boulevard, Suite 206, Encino,
California 91316 (“Guarantor”), for the benefit of STARWOOD MORTGAGE CAPITAL LLC, a Delaware limited liability
company, having an address at 1601 Washington Avenue, Suite 800, Miami Beach, Florida 33139 (“Lender”).

 

W I
T N E S S E T H:

 

A.
Pursuant to that certain Promissory Note, dated of even date herewith, executed by LANDWIN CHANDLER, LLC, a Delaware limited liability
company, (“Borrower”) and payable to the order of Lender in the original principal amount of Fifteen Million
Five Hundred Thousand and No/100 Dollars ($15,500,000.00) (together with all renewals, modifications, increases and extensions
thereof, the “Note”), Borrower has become indebted, and may from time to time be further indebted, to Lender
with respect to a loan (the “Loan”) which is made pursuant to that certain Loan Agreement, dated of even date
herewith, between Borrower and Lender (as the same may be amended, modified, supplemented, replaced or otherwise modified from
time to time, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed to such terms in the Loan Agreement.

 

B.
Lender is not willing to make the Loan, or otherwise extend credit, to Borrower unless Guarantor unconditionally guarantee the
payment and performance to Lender of the Guaranteed Obligations (as herein defined).

 

C.
Guarantor is the owner of direct or indirect interests in Borrower, and Guarantor will directly benefit from Lender’s making
the Loan to Borrower.

 

NOW,
THEREFORE, as an inducement to Lender to make the Loan to Borrower and to extend such additional credit as Lender may from time
to time agree to extend under the Loan Documents, and for other good and valuable consideration, the receipt and legal sufficiency
of which are hereby acknowledged, the parties do hereby agree as follows:

 

ARTICLE
1

 

NATURE
AND SCOPE OF GUARANTY

 

Section
1.1 Guaranty of Obligation.

 

(a)
Guarantor hereby irrevocably and unconditionally guarantees to Lender and its successors and assigns the payment and performance
of the Guaranteed Obligations (as defined below) as and when the same shall be due and payable, whether by lapse of time, by acceleration
of maturity or otherwise. Guarantor hereby irrevocably and unconditionally covenants and agrees that it is liable for the Guaranteed
Obligations as a primary obligor.

 

    	 

    	 

    

 

(b)
As used herein, the term “Guaranteed Obligations” means (i) Borrower’s Recourse Liabilities and (ii)
from and after the date that any Springing Recourse Event occurs, payment of all of the Obligations.

 

(c)
Notwithstanding anything to the contrary in this Guaranty or in any of the other Loan Documents, Lender shall not be deemed to
have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code
to file a claim for the full amount of the Obligations or to require that all collateral shall continue to secure all of the Obligations
owing to Lender in accordance with the Loan Documents.

 

Section
1.2 Nature of Guaranty. This Guaranty is an irrevocable, absolute, continuing guaranty of payment and performance and not
a guaranty of collection. This Guaranty may not be revoked by Guarantor and shall continue to be effective with respect to any
Guaranteed Obligations arising or created after any attempted revocation by Guarantor and after (if Guarantor is a natural person)
Guarantor’s death (in which event this Guaranty shall be binding upon Guarantor’s estate and Guarantor’s legal
representatives and heirs). The fact that at any time or from time to time the Guaranteed Obligations may be increased or reduced
shall not release or discharge the obligation of Guarantor to Lender with respect to the Guaranteed Obligations. This Guaranty
may be enforced by Lender and any subsequent holder of the Note and shall not be discharged by the assignment or negotiation of
all or part of the Note.

 

Section
1.3 Guaranteed Obligations Not Reduced by Offset. The Guaranteed Obligations and the liabilities and obligations of Guarantor
to Lender hereunder shall not be reduced, discharged or released because or by reason of any existing or future offset, claim
or defense of Borrower or any other party against Lender or against payment of the Guaranteed Obligations, whether such offset,
claim or defense arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed Obligations)
or otherwise.

 

Section
1.4 Payment By Guarantor. If all or any part of the Guaranteed Obligations shall not be punctually paid when due, whether
at demand, maturity, acceleration or otherwise, Guarantor shall, immediately upon demand by Lender and without presentment, protest,
notice of protest, notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration of the maturity
or any other notice whatsoever, all such notices being hereby waived by Guarantor, pay in lawful money of the United States of
America, the amount due on the Guaranteed Obligations to Lender at Lender’s address as set forth herein. Such demand(s)
may be made at any time coincident with or after the time for payment of all or part of the Guaranteed Obligations and may be
made from time to time with respect to the same or different items of Guaranteed Obligations. Such demand shall be deemed made,
given and received in accordance with the notice provisions hereof.

 

Section
1.5 No Duty To Pursue Others. It shall not be necessary for Lender (and Guarantor hereby waives any rights which Guarantor
may have to require Lender), in order to enforce the obligations of Guarantor hereunder, first to (i) institute suit or exhaust
its remedies against Borrower or others liable on the Loan or the Guaranteed Obligations or any other Person, (ii) enforce Lender’s
rights against any collateral which shall ever have been given to secure the Loan, (iii) enforce Lender’s rights against
any other guarantors of the Guaranteed Obligations, (iv) join Borrower or any others liable on the Guaranteed Obligations in any
action seeking to enforce this Guaranty, (v) exhaust any remedies available to Lender against any collateral which shall ever
have been given to secure the Loan, or (vi) resort to any other means of obtaining payment of the Guaranteed Obligations. Lender
shall not be required to mitigate damages or take any other action to reduce, collect or enforce the Guaranteed Obligations.

 

    	-2-

    	 

    

 

Section
1.6 Waivers. Guarantor agrees to the provisions of the Loan Documents and hereby waives notice of (i) any loans or advances
made by Lender to Borrower, (ii) acceptance of this Guaranty, (iii) any amendment or extension of the Note, the Mortgage, the
Loan Agreement or any other Loan Document, (iv) the execution and delivery by Borrower and Lender of any other loan or credit
agreement or of Borrower’s execution and delivery of any promissory note or other document arising under the Loan Documents
or in connection with the Property, (v) the occurrence of (A) any breach by Borrower of any of the terms or conditions of the
Loan Agreement or any of the other Loan Documents, or (B) an Event of Default, (vi) Lender’s transfer or disposition of
the Guaranteed Obligations, or any part thereof, (vii) the sale or foreclosure (or the posting or advertising for the sale or
foreclosure) of any collateral for the Guaranteed Obligations, (viii) protest, proof of non-payment or default by Borrower, or
(ix) any other action at any time taken or omitted by Lender and, generally, all demands and notices of every kind in connection
with this Guaranty, the Loan Documents, any documents or agreements evidencing, securing or relating to any of the Guaranteed
Obligations and/or the obligations hereby guaranteed.

 

Section
1.7 Payment of Expenses. In the event that Guarantor shall breach or fail to timely perform any provisions of this Guaranty,
Guarantor shall, immediately upon demand by Lender, pay Lender all costs and expenses (including court costs and attorneys’
fees) incurred by Lender in the enforcement hereof or the preservation of Lender’s rights hereunder, together with interest
thereon at the Default Rate from the date requested by Lender until the date of payment to Lender. The covenant contained in this
Section shall survive the payment and performance of the Guaranteed Obligations.

 

Section
1.8 Effect of Bankruptcy. In the event that pursuant to any insolvency, bankruptcy, reorganization, receivership or other
debtor relief law or any judgment, order or decision thereunder, Lender must rescind or restore any payment or any part thereof
received by Lender in satisfaction of the Guaranteed Obligations, as set forth herein, any prior release or discharge from the
terms of this Guaranty given to Guarantor by Lender shall be without effect and this Guaranty shall remain (or shall be reinstated
to be) in full force and effect. It is the intention of Borrower and Guarantor that Guarantor’s obligations hereunder shall
not be discharged except by Guarantor’s performance of such obligations and then only to the extent of such performance.

 

Section
1.9 Waiver of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained in this Guaranty,
Guarantor hereby unconditionally and irrevocably waives, releases and abrogates any and all rights it may now or hereafter have
under any agreement, at law or in equity (including, without limitation, any law subrogating Guarantor to the rights of Lender),
to assert any claim against or seek contribution, indemnification or any other form of reimbursement from Borrower or any other
party liable for the payment of any or all of the Guaranteed Obligations for any payment made by Guarantor under or in connection
with this Guaranty or otherwise.

 

    	-3-

    	 

    

 

ARTICLE
2

EVENTS AND CIRCUMSTANCES NOT REDUCING OR DISCHARGING GUARANTOR’S OBLIGATIONS

 

Guarantor
hereby consents and agrees to each of the following and agrees that Guarantor’s obligations under this Guaranty shall not
be released, diminished, impaired, reduced or adversely affected by any of the following and waives any common law, equitable,
statutory or other rights (including, without limitation, rights to notice) which Guarantor might otherwise have as a result of
or in connection with any of the following:

 

Section
2.1 Modifications. Any renewal, extension, increase, modification, alteration or rearrangement of all or any part of the
Guaranteed Obligations, the Note, the Mortgage, the Loan Agreement, the other Loan Documents or any other document, instrument,
contract or understanding between Borrower and Lender or any other parties pertaining to the Guaranteed Obligations or any failure
of Lender to notify Guarantor of any such action.

 

Section
2.2 Adjustment. Any adjustment, indulgence, forbearance or compromise that might be granted or given by Lender to )Borrower
or Guarantor.

 

Section
2.3 Condition of Borrower or Guarantor. The insolvency, bankruptcy, arrangement, adjustment, composition, liquidation,
disability, dissolution or lack of power of Borrower, Guarantor or any other Person at any time liable for the payment of all
or part of the Guaranteed Obligations; or any dissolution of Borrower or Guarantor or any sale, lease or transfer of any or all
of the assets of Borrower or Guarantor or any changes in the direct or indirect shareholders, partners or members, as applicable,
of Borrower or Guarantor; or any reorganization of Borrower or Guarantor.

  

Section
2.4 Invalidity of Guaranteed Obligations. The invalidity, illegality or unenforceability of all or any part of the Guaranteed
Obligations or any document or agreement executed in connection with the Guaranteed Obligations for any reason whatsoever, including,
without limitation, the fact that (i) the Guaranteed Obligations or any part thereof exceeds the amount permitted by law, (ii)
the act of creating the Guaranteed Obligations or any part thereof is ultra vires, (iii) the officers or representatives executing
the Note, the Mortgage, the Loan Agreement or the other Loan Documents or otherwise creating the Guaranteed Obligations acted
in excess of their authority, (iv) the Guaranteed Obligations violate applicable usury laws, (v) the Borrower has valid defenses,
claims or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible
from Borrower, (vi) the creation, performance or repayment of the Guaranteed Obligations (or the execution, delivery and performance
of any document or instrument representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations
or given to secure the repayment of the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (vii) the Note,
the Mortgage, the Loan Agreement or any of the other Loan Documents have been forged or otherwise are irregular or not genuine
or authentic, it being agreed that Guarantor shall remain liable hereon regardless of whether Borrower or any other Person be
found not liable on the Guaranteed Obligations or any part thereof for any reason.

 

    	-4-

    	 

    

 

Section
2.5 Release of Obligors. Any full or partial release of the liability of Borrower for the Guaranteed Obligations or any
part thereof, or of any co-guarantors, or of any other Person now or hereafter liable, whether directly or indirectly, jointly,
severally, or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations, or any part
thereof, it being recognized, acknowledged and agreed by Guarantor that Guarantor may be required to pay the Guaranteed Obligations
in full without assistance or support from any other Person, and Guarantor has not been induced to enter into this Guaranty on
the basis of a contemplation, belief, understanding or agreement that other Persons (including Borrower) will be liable to pay
or perform the Guaranteed Obligations or that Lender will look to other Persons (including Borrower) to pay or perform the Guaranteed
Obligations.

 

Section
2.6 Other Collateral. The taking or accepting of any other security, collateral or guaranty, or other assurance of payment,
for all or any part of the Guaranteed Obligations.

 

Section
2.7 Release of Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including,
without limitation, negligent, willful, unreasonable or unjustifiable impairment) of any collateral, property or security at any
time existing in connection with, or assuring or securing payment of, all or any part of the Guaranteed Obligations.

 

Section
2.8 Care and Diligence. The failure of Lender or any other party to exercise diligence or reasonable care in the preservation,
protection, enforcement, sale or other handling or treatment of all or any part of any collateral, property or security, including,
but not limited to, any neglect, delay, omission, failure or refusal of Lender (i) to take or prosecute any action for the collection
of any of the Guaranteed Obligations, or (ii) to foreclose, or initiate any action to foreclose, or, once commenced, prosecute
to completion any action to foreclose upon any security therefor, or (iii) to take or prosecute any action in connection with
any instrument or agreement evidencing or securing all or any part of the Guaranteed Obligations.

 

Section
2.9 Unenforceability. The fact that any collateral, security, security interest or lien contemplated or intended to be
given, created or granted as security for the repayment of the Guaranteed Obligations, or any part thereof, shall not be properly
perfected or created, or shall prove to be unenforceable or subordinate to any other security interest or lien, it being recognized
and agreed by Guarantor that Guarantor is not entering into this Guaranty in reliance on, or in contemplation of the benefits
of, the validity, enforceability, collectibility or value of any of the collateral for the Guaranteed Obligations.

 

Section
2.10 Offset. Any existing or future right of offset, claim or defense of Borrower against Lender, or any other party, or
against payment of the Guaranteed Obligations, whether such right of offset, claim or defense arises in connection with the Guaranteed
Obligations (or the transactions creating the Guaranteed Obligations) or otherwise.

 

    	-5-

    	 

    

 

Section
2.11 Merger. The reorganization, merger or consolidation of Borrower or Guarantor into or with any other Person.

 

Section
2.12 Preference. Any payment by Borrower to Lender is held to constitute a preference under bankruptcy laws or for any
reason Lender is required to refund such payment or pay such amount to Borrower or to any other Person.

 

Section
2.13 Other Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Loan Documents,
the Guaranteed Obligations or the security and collateral therefor, whether or not such action or omission prejudices Guarantor
or increases the likelihood that Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof, it
being the unambiguous and unequivocal intention of Guarantor that Guarantor shall be obligated to pay the Guaranteed Obligations
when due, notwithstanding any occurrence, circumstance, event, action or omission whatsoever, whether contemplated or uncontemplated,
and whether or not otherwise or particularly described herein, which obligation shall be deemed satisfied only upon the full and
final payment and satisfaction of the Guaranteed Obligations.

 

ARTICLE
3

REPRESENTATIONS AND WARRANTIES

 

To
induce Lender to enter into the Loan Documents and to extend credit to Borrower, Guarantor represents and warrants to Lender as
follows:

 

Section
3.1 Benefit. Guarantor is an Affiliate of Borrower, is the owner of a direct or indirect interest in Borrower and has received,
or will receive, direct or indirect benefit from the making of this Guaranty with respect to the Guaranteed Obligations.

 

Section
3.2 Familiarity and Reliance. Guarantor is familiar with, and has independently reviewed books and records regarding, the
financial condition of Borrower and is familiar with the value of any and all collateral intended to be created as security for
the payment of the Note or Guaranteed Obligations; however, Guarantor is not relying on such financial condition or the collateral
as an inducement to enter into this Guaranty.

 

Section
3.3 No Representation By Lender. Neither Lender nor any other party has made any representation, warranty or statement
to Guarantor in order to induce Guarantor to execute this Guaranty.

 

Section
3.4 Guarantor’s Financial Condition. As of the date hereof, and after giving effect to this Guaranty and the contingent
obligation evidenced hereby, Guarantor (a) is and will be solvent, (b) has and will have assets which, fairly valued, exceed its
obligations, liabilities (including contingent liabilities) and debts, and (c) has and will have property and assets sufficient
to satisfy and repay its obligations and liabilities, including the Guaranteed Obligations.

 

    	-6-

    	 

    

 

Section
3.5 Legality. The execution, delivery and performance by Guarantor of this Guaranty and the consummation of the transactions
contemplated hereunder do not and will not contravene or conflict with any law, statute or regulation whatsoever to which Guarantor
is subject, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under,
or result in the breach of, any indenture, mortgage, charge, lien, contract, agreement or other instrument to which Guarantor
is a party or which may be applicable to Guarantor. This Guaranty is a legal and binding obligation of Guarantor and is enforceable
against Guarantor in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application
relating to the enforcement of creditors’ rights.

 

Section
3.6 Survival. All representations and warranties made by Guarantor herein shall survive the execution hereof.

 

ARTICLE
4

 

SUBORDINATION
OF CERTAIN INDEBTEDNESS

 

Section
4.1 Subordination of All Guarantor Claims. As used herein, the term “Guarantor Claims” shall mean all
debts and liabilities of Borrower to Guarantor, whether such debts and liabilities now exist or are hereafter incurred or arise,
and whether the obligations of Borrower thereon be direct, contingent, primary, secondary, several, joint and several, or otherwise,
and irrespective of whether such debts or liabilities be evidenced by note, contract, open account, or otherwise, and irrespective
of the Person or Persons in whose favor such debts or liabilities may, at their inception, have been, or may hereafter be, created,
or the manner in which they have been, or may hereafter be, acquired by Guarantor. The Guarantor Claims shall include, without
limitation, all rights and claims of Guarantor against Borrower (arising as a result of subrogation or otherwise) as a result
of Guarantor’s payment of all or a portion of the Guaranteed Obligations. So long as any portion of the Obligations or the
Guaranteed Obligations remain outstanding, Guarantor shall not receive or collect, directly or indirectly, from Borrower or any
other Person any amount upon the Guarantor Claims.

 

Section
4.2 Claims in Bankruptcy. In the event of any receivership, bankruptcy, reorganization, arrangement, debtor’s relief
or other insolvency proceeding involving Guarantor as a debtor, Lender shall have the right to prove its claim in any such proceeding
so as to establish its rights hereunder and receive directly from the receiver, trustee or other court custodian dividends and
payments which would otherwise be payable upon Guarantor Claims. Guarantor hereby assigns such dividends and payments to Lender.
Should Lender receive, for application against the Guaranteed Obligations, any dividend or payment which is otherwise payable
to Guarantor and which, as between Borrower and Guarantor, shall constitute a credit against the Guarantor Claims, then, upon
payment to Lender in full of the Obligations and the Guaranteed Obligations, Guarantor shall become subrogated to the rights of
Lender to the extent that such payments to Lender on the Guarantor Claims have contributed toward the liquidation of the Guaranteed
Obligations, and such subrogation shall be with respect to that proportion of the Guaranteed Obligations which would have been
unpaid if Lender had not received dividends or payments upon the Guarantor Claims.

 

    	-7-

    	 

    

 

Section
4.3 Payments Held in Trust. Notwithstanding anything to the contrary contained in this Guaranty, in the event that Guarantor
should receive any funds, payments, claims and/or distributions which are prohibited by this Guaranty, Guarantor agrees to hold
in trust for Lender an amount equal to the amount of all funds, payments, claims and/or distributions so received, and agrees
that it shall have absolutely no dominion over the amount of such funds, payments, claims and/or distributions so received except
to pay such funds, payments, claims and/or distributions promptly to Lender, and Guarantor covenants promptly to pay the same
to Lender.

 

Section
4.4 Liens Subordinate. Guarantor agrees that any liens, security interests, judgment liens, charges or other encumbrances
upon Borrower’s assets securing payment of the Guarantor Claims shall be and remain inferior and subordinate to any liens,
security interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guaranteed
Obligations, regardless of whether such encumbrances in favor of Guarantor or Lender presently exist or are hereafter created
or attach. Without the prior written consent of Lender, Guarantor shall not (i) exercise or enforce any creditor’s rights
it may have against Borrower, or (ii) foreclose, repossess, sequester or otherwise take steps or institute any action or proceedings
(judicial or otherwise, including, without limitation, the commencement of, or the joinder in, any liquidation, bankruptcy, rearrangement,
debtor’s relief or insolvency proceeding) to enforce any liens, mortgages, deeds of trust, security interests, collateral
rights, judgments or other encumbrances on the assets of Borrower held by Guarantor. The foregoing shall in no manner vitiate
or amend, nor be deemed to vitiate or amend, any prohibition in the Loan Documents against Borrower granting liens or security
interests in any of its assets to any Person other than Lender.

 

ARTICLE
5.

COVENANTS

 

Section
5.1 Definitions. As used in this Article 5, the following terms shall have the respective meanings set forth below:

 

(a)
“GAAP” shall mean generally accepted accounting principles, consistently applied.

 

(b)
“Liquid Asset” shall mean any of the following, but only to the extent owned individually, free of all security
interests, liens, pledges, charges or any other encumbrance: (a) cash, (b) certificates of deposit (with a maturity of two years
or less) issued by, or savings account with, any bank or other financial institution reasonably acceptable to Lender or (c) marketable
securities listed on a national or international exchange reasonably acceptable to Lender, marked to market.

 

(c)
“Net Worth” shall mean, as of a given date, (i) Guarantor’s total assets as of such date less (ii) Guarantor’s
total liabilities as of such date, determined in accordance with GAAP or a cash basis of accounting (consistently applied).

 

    	-8-

    	 

    

 

Section
5.2 Covenants. Until all of the Obligations and the Guaranteed Obligations have been paid in full, Guarantor (i) shall
maintain (x) a Net Worth of not less than Seven Million Seven Hundred Fifty Thousand and No/100 Dollars ($7,750,000.00) and (y)
Liquid Assets of not less than One Million and No/100 Dollars ($1,000,000.00) (collectively, the “Financial Covenants”),
(ii) shall not sell, pledge, mortgage or otherwise transfer any of its assets, or any interest therein, on terms materially less
favorable than would be obtained in an arms-length transaction, (iii) within forty-five (45) days following the end of each calendar
quarter, shall deliver to Lender, with respect to the prior calendar quarter, unaudited quarterly and year-to-date statements
of income and expense and cash flow prepared on a cash basis for Guarantor, together with a balance sheet as of the end of such
prior calendar quarter for Guarantor, together with a certificate of Guarantor (A) setting forth in reasonable detail Guarantor’s
Net Worth and Liquid Assets as of the end of such prior calendar quarter and based on the foregoing quarterly financial statements,
and (B) certifying that such quarterly financial statements are true, correct, accurate and complete and fairly present the financial
condition and results of the operations of Guarantor in a manner consistent with GAAP or a cash basis of accounting (consistently
applied) and the requirements of Regulation AB, and (iv) within ninety (90) days following the end of each calendar year, shall
deliver to Lender a complete copy of Guarantor’s annual financial statements audited by a “Big Four” accounting
firm or other independent certified public accountant acceptable to Lender prepared in accordance with GAAP or a cash basis of
accounting (consistently applied) and the requirements of Regulation AB, including statements of income and expense and cash flow
and a balance sheet for Guarantor, together with a certificate of Guarantor (A) setting forth in reasonable detail Guarantor’s
Net Worth and Liquid Assets as of the end of such prior calendar year and based on such annual financial statements, and (B) certifying
that such annual financial statements are true, correct, accurate and complete and fairly present the financial condition and
results of the operations of Guarantor. Notwithstanding the foregoing, Guarantor shall not be required to deliver the quarterly
financial statements set forth in subsection (iii) above and Guarantor shall not be required to deliver audited financial statements
for any financial statement set forth in this Section 5.2, so long as no Event of Default has occurred or is continuing
or Lender does not reasonably believe that any financial statement delivered by Guarantor to Lender pursuant to this Section
5.2 has been falsely made or is inaccurate in any material respect.

 

Section
5.3 Prohibited Transactions. Guarantor shall not, at any time while a default in the payment of the Guaranteed Obligations
has occurred and is continuing, either (i) enter into or effectuate any transaction with any Affiliate which would reduce the
Net Worth of Guarantor, including, without limitation, the payment of any dividend or distribution to a shareholder, partner or
member as applicable, or the redemption, retirement, purchase or other acquisition for consideration of any stock or other ownership
interest in Guarantor, or (ii) sell, pledge, mortgage or otherwise transfer to any Person any of Guarantor’s assets, or
any interest therein.

 

    	-9-

    	 

    

 

ARTICLE
6.

MISCELLANEOUS

 

Section
6.1 Waiver. No failure to exercise, and no delay in exercising, on the part of Lender, any right hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise
of any other right. The rights of Lender hereunder shall be in addition to all other rights provided by law. No modification or
waiver of any provision of this Guaranty, nor any consent to any departure therefrom, shall be effective unless in writing and
no such consent or waiver shall extend beyond the particular case and purpose involved. No notice or demand given in any case
shall constitute a waiver of the right to take other action in the same, similar or other instances without such notice or demand.

 

Section
6.2 Notices. All notices, demands, requests, consents, approvals or other communications (any of the foregoing, a “Notice”)
required, permitted or desired to be given hereunder shall be in writing and shall be delivered by hand or by reputable overnight
courier with a tracking service, addressed to the party to be so notified at its address hereinafter set forth, or to such other
address as such party may hereafter specify in accordance with the provisions of this Section 6.2. Any Notice shall be
deemed to have been received: (a) three (3) days after the date such Notice is mailed, (b) intentionally omitted, (c) on the date
of delivery by hand if delivered during business hours on a Business Day (otherwise on the next Business Day), and (d) on the
next Business Day if sent by an overnight commercial courier, in each case addressed to the parties as follows:

 

	 	If
    to Lender:	Starwood
    Mortgage Capital LLC
	 	 	1601
    Washington Avenue, Suite 800
	 	 	Miami
    Beach, Florida 33139
	 	 	Attention:
    Ms. Leslie K. Fairbanks
	 	 	 
	 	with
    a copy to:	Alston
    & Bird LLP
	 	 	Bank
    of America Plaza
	 	 	101
    South Tryon Street, Suite 4000
	 	 	Charlotte,
    North Carolina 28280
	 	 	Attention:
    Robert J. Sullivan, Esq.
	 	 	 
	 	and
    with a copy to:	Wells
    Fargo Bank, National Association
	 	 	Commercial
    Mortgage Servicing
	 	 	MAC
    D1086-120
	 	 	550
    Tryon Street, 12th Floor
	 	 	Charlotte,
    North Carolina 28202
	 	 	Attention:
    Starwood Mortgage Capital LLC — Relationship Manager
	 	 	 
	 	If
    to Guarantor:	Landwin
    Partners Fund I, LLC
	 	 	17200
    Ventura Boulevard, Suite 206
	 	 	Encino,
    California 91316
	 	 	Attention:
    Martin Landis
	 	 	 
	 	with
    a copy to:	Brier,
    Irish, Hubbard & Erhart, P.L.C.
	 	 	2400
    East Arizona Biltmore Circle, Suite 1300
	 	 	Phoenix,
    Arizona 85016
	 	 	Attention:
    Jeffrey Erhart, Esq.

 

    	-10-

    	 

    

 

Any
party may change the address to which any such Notice is to be delivered by furnishing ten (10) days’ written notice of
such change to the other parties in accordance with the provisions of this Section 6.2. Notices shall be deemed to have
been given on the date set forth above, even if there is an inability to actually deliver any Notice because of a changed address
of which no Notice was given or there is a rejection or refusal to accept any Notice offered for delivery. Notice for any party
may be given by its respective counsel. Additionally, Notice from Lender may also be given by Servicer.

 

Section
6.3 Governing Law. This Agreement shall be governed, construed, applied and enforced in accordance with the applicable
laws of the State of Arizona and the applicable laws of the United States of America.

 

Section
6.4 Invalid Provisions. If any provision of this Guaranty is held to be illegal, invalid, or unenforceable under present
or future laws effective during the term of this Guaranty, such provision shall be fully severable and this Guaranty shall be
construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and
the remaining provisions of this Guaranty shall remain in full force and effect and shall not be affected by the illegal, invalid
or unenforceable provision or by its severance from this Guaranty, unless such continued effectiveness of this Guaranty, as modified,
would be contrary to the basic understandings and intentions of the parties as expressed herein.

 

Section
6.5 Amendments. This Guaranty may be amended only by an instrument in writing executed by the party(ies) against whom such
amendment is sought to be enforced.

 

Section
6.6 Parties Bound; Assignment. This Guaranty shall be binding upon and shall inure to the benefit of the parties hereto
and their respective successors, permitted assigns, heirs and legal representatives. Lender shall have the right to assign or
transfer its rights under this Guaranty in connection with any assignment of the Loan and the Loan Documents. Any assignee or
transferee of Lender shall be entitled to all the benefits afforded to Lender under this Guaranty. Guarantor shall not have the
right to assign or transfer its rights or obligations under this Guaranty without the prior written consent of Lender, and any
attempted assignment without such consent shall be null and void.

 

Section
6.7 Headings. Section headings are for convenience of reference only and shall in no way affect the interpretation of this
Guaranty.

 

    	-11-

    	 

    

 

Section
6.8 Recitals. The recitals and introductory paragraphs hereof are a part hereof, form a basis for this Guaranty and shall
be considered prima facie evidence of the facts and documents referred to therein.

 

Section
6.9 Counterparts. To facilitate execution, this Guaranty may be executed in as many counterparts as may be convenient or
required. It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required
to bind any party, appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not
be necessary in making proof of this Guaranty to produce or account for more than a single counterpart containing the respective
signatures of, or on behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart
without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto
except having attached to it additional signature pages.

 

Section
6.10 Rights and Remedies. If Guarantor becomes liable for any indebtedness owing by Borrower to Lender, by endorsement
or otherwise, other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby and the rights
of Lender hereunder shall be cumulative of any and all other rights that Lender may ever have against Guarantor. The exercise
by Lender of any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent
or subsequent exercise of any other right or remedy.

 

Section
6.11 Entirety. THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND LENDER WITH RESPECT TO GUARANTOR’S
GUARANTY OF THE GUARANTEED OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS,
WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND
COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER, NO COURSE OF PERFORMANCE,
NO TRADE PRACTICES AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE
OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY. HERE ARE NO ORAL AGREEMENTS BETWEEN
GUARANTOR AND LENDER.

 

Section
6.12 Waiver of Right To Trial By Jury. GUARANTOR HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF
RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH
REGARD TO THIS GUARANTY, THE NOTE, THE MORTGAGE, THE LOAN AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR
OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR
AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE
ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY
GUARANTOR.

 

    	-12-

    	 

    

 

Section
6.13 Cooperation. Guarantor acknowledges that Lender and its successors and assigns may (i) sell this Guaranty, the Note
and the other Loan Documents to one or more investors as a whole loan, (ii) participate the Loan secured by this Guaranty to one
or more investors, (iii) deposit this Guaranty, the Note and the other Loan Documents with a trust, which trust may sell certificates
to investors evidencing an ownership interest in the trust assets, or (iv) otherwise sell the Loan or one or more interests therein
to investors (the transactions referred to in clauses (i) through (iv) are hereinafter each referred to as “Secondary
Market Transaction”). Guarantor shall cooperate with Lender in effecting any such Secondary Market Transaction and shall
cooperate to implement all requirements imposed by any of the Rating Agencies involved in any Secondary Market Transaction. Guarantor
shall provide such information and documents relating to Guarantor, Borrower, the Property and any tenants of the Property as
Lender may reasonably request in connection with such Secondary Market Transaction. In addition, Guarantor shall make available
to Lender all information concerning its business and operations that Lender may reasonably request. Lender shall be permitted
to share all such information with the investment banking firms, Rating Agencies, accounting firms, law firms and other third-party
advisory firms involved with the Loan and the Loan Documents or the applicable Secondary Market Transaction. It is understood
that the information provided by Guarantor to Lender, including any and all financial statements provided to Lender pursuant to
Section 5.2 hereof, may ultimately be incorporated into the offering documents for the Secondary Market Transaction and thus various
investors and potential investors may also see some or all of the information. Lender and all of the aforesaid third-party advisors
and professional firms shall be entitled to rely on the information supplied by, or on behalf of, Guarantors in the form as provided
by Guarantor. Lender may publicize the existence of the Loan in connection with its marketing for a Secondary Market Transaction
or otherwise as part of its business development.

 

Section
6.14 Reinstatement in Certain Circumstances. If at any time any payment of the principal of or interest under the Note
or any other amount payable by Borrower under the Loan Documents is rescinded or must be otherwise restored or returned upon the
insolvency, bankruptcy or reorganization of the Borrower or otherwise, Guarantor’s obligations hereunder with respect to
such payment shall be reinstated as though such payment had been due but not made at such time.

 

Section
6.15 Gender; Number; General Definitions. Unless the context clearly indicates a contrary intent or unless otherwise specifically
provided herein, (a) words used in this Guaranty may be used interchangeably in the singular or plural form, (b) any pronouns
used herein shall include the corresponding masculine, feminine or neuter forms, (c) the word “Borrower” shall mean
“each Borrower and any subsequent owner or owners of the Property or any part thereof or interest therein”, (d) the
word “Lender” shall mean “Lender and any subsequent holder of the Note”, (e) the word “Note”
shall mean “the Note and any other evidence of indebtedness secured by the Loan Agreement”, (f) the word “Property”
shall include any portion of the Property and any interest therein, and (g) the phrases “attorneys’ fees”, “legal
fees” and “counsel fees” shall include any and all attorneys’, paralegal and law clerk fees and disbursements,
including, but not limited to, fees and disbursements at the pre-trial, trial and appellate levels, incurred or paid by Lender
in protecting its interest in the Property, the Leases and/or the Rents and/or in enforcing its rights hereunder.

 

ARTICLE
7

ARIZONA STATE SPECIFIC PROVISIONS

 

Section
7.1 Waiver. Guarantor expressly waives the benefit of A.R.S. §§12-1641 et seq. and 44-142 and Ariz. R. Civ. P.
17 (f) or such similar provisions as may be enacted or adopted hereafter.

 

    	-13-

    	 

    

 

IN
WITNESS WHEREOF, Guarantor has executed this Guaranty as of the day and year first above written.

 

	 	GUARANTOR:
	 	 
	 	LANDWIN
    PARTNERS FUND I, LLC, a
	 	Delaware
    limited liability company
	 	 	 
	 	By:	Landwin
    Management, LLC, a Delaware limited liability company
	 	Its:	Manager
	 	 	 
	 	By:	Sylvia Inc., a
    California corporation
	 	Its: 	Authorized Signatory
	 	 	 
	 	By:
    	/s/
    Martin Landis
	 	Name: 	Martin Landis
	 	Title: 	CEOExhibit 10.1 

DATED July 10, 2015
 
 
 
 
 

CELSUS THERAPEUTICS PLC
 
 - AND -
 
 RPC PHARMA LIMITED
 
 
 
 
 
 
 
 
 

RELATIONSHIP AGREEMENT
 
 
 
 
 
 
 
 
 
 

McDERMOTT WILL & EMERY UK LLP
 110 Bishopsgate
 London EC2N 4AY DX 42619 Cheapside
 
 Tel: +44 20 7577 6900
 Fax: +44 20 7577 6950 

 

 

TABLE OF CONTENTS 

		 	
		 	Page
	1.
Interpretation
	 	 	1	 
	2.
Condition
	 	 	2	 
	3.
Composition of the Board committees
	 	 	2	 
	4.
Appointments
	 	 	2	 
	5.
Assignment
	 	 	2	 
	6.
Confidentiality
	 	 	3	 
	7.
Change of law
	 	 	3	 
	8.
Duration
	 	 	3	 
	9.
Severance
	 	 	3	 
	10.
Entire Agreement
	 	 	4	 
	11.
General
	 	 	4	 
	12.
Notices
	 	 	4	 
	13.
Agent for service
	 	 	5	 
	14.
Governing law and jurisdiction
	 	 	5	 
	15.
Counterparts
	 	 	5	 

i

 

 

THIS AGREEMENT is made on July 10, 2015 

BETWEEN: 

		(1)	CELSUS THERAPEUTICS PLC, a company registered in England and Wales under number 05252842 whose registered office is at 42-50 Hersham Road, Walton-on-Thames, Surrey KT12 1RZ (the “Company”); and 

		(2)	RPC PHARMA LIMITED a company registered in Malta whose registered office is at Regent House, Office 21, Bisazza Street, Sliema SLM1640, Malta (“RPC”). 

WHEREAS: 

This Agreement is being entered into to regulate certain aspects of the continuing relationship between the Company and RPC. 

IT IS AGREED THAT: 

		1.	Interpretation 

		1.1	In this Agreement and its Recitals, unless the context otherwise requires, each of the following terms shall have the meaning given below: 

		 	
	“Act”	 	means the Companies Act 2006 (as amended;
	“Approved Person”	 	means a person nominated by RPC (following consultation with the Company) to join the Board who meets the legal and regulatory requirements for a board member of a NASDAQ listed company;
	“Articles”	 	means the articles of association of the Company in force from time to time;
	“Board”	 	means the board of directors of the Company as constituted from time to time;
	“Business Day”	 	means a day (other than a Saturday or a Sunday and public holidays) on which the clearing banks are open for business in London and New York;
	“Completion”	 	means completion of the share exchange agreement of even date between the Company and RPC relating to the acquisition by the Company of Volution Immuno Pharmaceuticals SA;
	“Completion Date”	 	means the date of Completion;
	“Director”	 	means a director of the Company from time to time;
	“Group”	 	means the Company and its group from time to time and “Group Member” shall be construed accordingly;
	“group”	 	means in relation to any company, any parent undertaking and any subsidiary undertaking of that company and any subsidiary undertaking of any such parent undertaking from time to time;
	“Ordinary Shares”	 	means the issued ordinary shares of 1 pence each in the capital of the Company;
	“Relevant Director”	 	means any Director appointed by RPC;
	“RPC Group”	 	means RPC and any shareholder of RPC from time to time; and
	“Shares”	 	means the entire issued share capital of the Company from time to time including without limitation the Ordinary Shares.

1

 

 

		1.2	In this Agreement: 

		1.2.1	the headings are for convenience only and shall not affect is interpretation; 

		1.2.2	expressions defined in the Act shall have the same meanings in this Agreement, unless the context requires otherwise or they are otherwise defined in this Agreement; 

		1.2.3	a reference to a provision of law includes a reference to any provision which from time to time amends, extends, consolidates or replaces that provision and any subordinate legislation made under any such provision; 

		1.2.4	words denoting the singular number shall include the plural, the masculine gender shall include the feminine gender and neuter, and vice versa; and 

		1.2.5	references to persons shall include individuals, corporations (wherever incorporated), unincorporated associates (including partnerships), trusts, any form of governmental body, agency or authority, and any other organisation of any nature (in each case, whether or not having separate legal personality). 

		2.	Condition 

This Agreement is conditional upon Completion and shall become effective on the Completion Date. 

		3.	Composition of the Board committees 

		3.1	Subject to such designated Directors meeting NASDAQ and SEC requirements to sit on such committees, each of the audit committee, nomination committee and the remuneration committee of the Company shall comprise at least one Director designated to serve on such committee by RPC. 

		3.2	For the avoidance of doubt, the Directors nominated by RPC pursuant to clause 3.1 shall be an existing member of the Board and nothing in this clause 3 shall give RPC the right to appoint any Directors to the Board in addition to those specified in clause 4. 

		4.	Appointments 

		4.1	Subject to clause 4.2, RPC shall be entitled to appoint the following number of Directors in relation to the percentage of Shares held in aggregate by members of the RPC Group from time to time: 

		4.1.1	two Directors if members of the RPC Group hold 25 per cent or more of the Shares; 

		4.1.2	one Director if members of the RPC Group hold 10 per cent or more but less than 25 per cent of the Shares; and 

		4.1.3	no Directors if members of the RPC Group hold less than 10 per cent of the Shares, 

provided always that where such right to appoint a Director falls away pursuant to the terms of this clause 4 RPC shall procure the resignation of the relevant Director as soon as practicably possible thereafter at no cost to the Company. 

		4.2	The Directors appointed by RPC shall: 

		4.2.1	only be nominated for appointment by RPC if they are an Approved Person; and 

		4.2.2	unless otherwise agreed by the Board, be A class directors (as such term is defined in the Company’s articles of association in force at the date of this agreement). 

		5.	Assignment 

Subject to the provisions of this Agreement, no party shall assign or in any other way dispose of any of its rights or obligations under this Agreement without the prior written consent of the other party. 

2

 

 

		6.	Confidentiality 

		6.1	Subject to clause 6.3, RPC shall not and shall procure that its directors, officers, employees and agents and advisers shall not and shall procure that any member of the RPC Group and its and their respective directors, officers, employees and agents respective advisers shall not (save as required by applicable law or regulation) disclose to any third party or use for its own or their own commercial purposes any information of a confidential nature relating to any Group Member obtained under the provisions of this Agreement, and for these purposes a professional adviser of any member of the RPC Group shall not be treated as a third party. 

		6.2	Any press release or other media communication to be made by any party relating to the investment of any member of the RPC Group in the Company shall, save as required by law or any applicable regulation or decision of any governmental or regulatory authority, be subject to the prior approval of RPC and the Company, any such approval not to be unreasonably withheld or delayed. 

		6.3	This clause shall not restrict disclosure of information which (a) is in or has come into the public domain otherwise than as a result of a breach by a member of the RPC Group or any of their respective directors, officers, employees, advisers or agents of this clause or of any other duty of confidentiality by any such person; or (b) is already in the possession of any member of the RPC Group on a non-confidential basis at the time that it is first supplied by the Group; or (c) is received by a member of the RPC Group at any time in good faith from a third party who is not bound by any obligation of confidentiality in relation thereto; or (d) has been independently developed by a member of the RPC Group without reference to confidential information supplied by the Group. 

		7.	Change of law 

If there is any change in law or applicable regulations which would materially affect the operation of this Agreement, the parties hereto agree to enter into bona fide negotiations with a view to agreeing such amendments to this Agreement as the parties shall in good faith determine to be necessary to ensure that notwithstanding such changes the intentions of each as reflected by the provisions of this Agreement are given effect. 

		8.	Duration 

This Agreement shall continue in full force and effect for so long as RPC or any member of the RPC Group, individually or collectively, holds 10 per cent or more of the Shares. 

		9.	Severance 

		9.1	If any provision of this Agreement is held to be invalid or unenforceable, then such provision shall (so far as it is invalid or unenforceable) be given no effect and shall be deemed not to be included in this Agreement but without invalidating any of the remaining provisions of this Agreement. 

		9.2	In the event that any provision of this Agreement becomes wholly or partly void, unenforceable or for any other reason cannot in whole or in part be put into effect, then the remaining provisions of this Agreement will not be affected. In such event the parties shall co-operate and negotiate in good faith to agree provisions (to replace those which are void, unenforceable or ineffective) which are not void or unenforceable, or which can otherwise be put into effect and which, as far as possible, are legally and commercially the same as those they replace. 

		9.3	In the event that provisions of this Agreement need to be interpreted or supplemented then the interpretation or supplement shall be completed in good faith in such a way that the spirit, contents and purpose of this Agreement are adhered to as far as possible. 

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		10.	Entire Agreement 

		10.1	It is hereby acknowledged that this Agreement constitutes the entire agreement between the parties and supersedes all prior agreements, understandings or arrangements (both oral and written) relating to the subject matter of this Agreement. 

		10.2	No amendment, change or addition to this Agreement shall be effective or binding on any party unless reduced to writing and executed by all the parties. 

		11.	General 

		11.1	Each of the parties shall, and shall use all reasonable efforts to procure that any other person shall, do and execute and perform all such further deeds, documents, assurances, acts and things as may reasonably be required to give effect to this Agreement. 

		11.2	This Agreement shall not be construed as creating any partnership or agency (except to the extent expressly described) relationship between any of the parties. 

		11.3	No relaxation, forbearance, indulgence or delay (together “indulgence”) of any party in exercising any right shall be construed as a waiver of the right and shall not affect the ability of that party subsequently to exercise that right or to pursue any remedy, not shall any indulgence constitute a waiver of any other right. 

		11.4	A person who is not a party to this Agreement may not enforce any of its terms under the Contracts (Rights of Third Parties) Act 1999, except that clause 6 (Confidentiality) shall be enforceable by any Member of the RPC Group, provided that no consent of a person who is not a party to this Agreement is required for any variation (including any release or compromise in whole or in party of any liability) or termination of this Agreement. 

		12.	Notices 

		12.1	Any notice or other communication to be given under this Agreement shall be in writing, shall be deemed to have been duly served on, given to or made in relation to a party if it is left at the authorised address of that party, posted by first class post addressed to that party at such address and shall if: 

		12.1.1	personally delivered, be deemed to have been received at the time of delivery; or 

		12.1.2	posted to an inland address in the United Kingdom, be deemed to have been received on the second Business Day after the date of posting, 

PROVIDED that where, in the case of delivery by hand, delivery occurs after 6.00 pm on a Business Day or on a day which is not a Business Day, receipt shall be deemed to occur at 9.00 am on the next following Business Day. 

		12.2	For the purposes of this clause the authorised address of each party shall be the address set out below (including the person for whose attention a notice or communication is to be addressed) or such other address (and details) as that party may notify to the others in writing from time to time in accordance with the requirements of this clause: 

		(a)	Celsus Therapeutics PLC
 Thames House
 Portsmouth Road
 Esher
 Surrey KT10 5AD 

		(b)	RPC PHARMA LIMITED
Regent House
Office 21
Bisazza Street
Sliema
SLM1640
Malta 

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		13.	Agent for service 

		13.1	In this clause 13, “RPC’s Agent” means McDermott, Will and Emery UK LLP of 110 Bishopsgate, London EC2N 4AY (marked for the attention of Nicholas Azis) (or any substitute agent appointed pursuant to clause 13.3). 

		13.2	RPC: 

		13.2.1	(subject to clause 13.3) irrevocably appoints RPC’s Agent as its agent to accept service on its behalf of (a) notices and (b) process in any legal action or proceedings before the courts of England and Wales relating to any acquisition dispute; 

		13.2.2	irrevocably agrees that any notice to be given to it is deemed to have been properly given if it is given to RPCs’ Agent in accordance with the provisions of clause 12 (whether or not such Notice is forwarded to or received by RPC; and 

		13.2.3	irrevocably agrees that failure by RPC’s Agent to notify it of the process will not invalidate the legal action or proceedings concerned. 

		13.3	If, for any reason, RPC’s Agent ceases to be able to act as agent or no longer has a postal address in the United Kingdom, RPC shall immediately: 

		13.3.1	(subject to this clause 13.3) irrevocably appoint a substitute agent with a postal address in the United Kingdom; and 

		13.3.2	Notify the Company of the name, relevant contact (where appropriate) and postal and email address of the substitute agent. 

Such appointment and notice shall be effective on the fifth Business day after the date on which the notice given pursuant to clause 13.3.2 is deemed to have been served or delivered in accordance with clause 12. 

		14.	Governing law and jurisdiction 

		14.1	This Agreement, or any non-contractual obligations arising out of or in connection with it, shall be governed by and construed in accordance with English law. 

		14.2	The courts of England shall have exclusive jurisdiction to settle any claim, dispute or matter of difference which may arise out of or in connection with this Agreement (including, without limitation, claims for set-off or counterclaim) or the legal relationships established by this Agreement. 

		15.	Counterparts 

This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be an original, but all of which when taken together shall constitute a single instrument. 

AS WITNESS the hands of the parties or their duly authorised representatives the day and year first above written.

		 	
	Signed by 	 	)
	for and on behalf of	 	)
	Celsus Therapeutics PLC	 	) /s/ Gur Roshwalb   
	Signed by 	 	) Gur Roshwalb
	for and on behalf of	 	)
	RPC Pharma Limited	 	) /s/ Ray Prudo         
	 	 	) Ray Prudo

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