Document:

Exhibit 10.20

 

	 

 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

MDR GREENSBORO HI TRS, LLC

 

A DELAWARE LIMITED LIABILITY COMPANY

 

DATED AS OF SEPTEMBER 15, 2017

 

	 

 

     

     

    

  

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1.	Definitions	1
	 	 	 
	Section 2.	Organization of the Company	6
	 	 	 
	2.1	Name	6
	 	 	 
	2.2	Place of Registered Office; Registered Agent	6
	 	 	 
	2.3	Principal Office	6
	 	 	 
	2.4	Filings	7
	 	 	 
	2.5	Term	7
	 	 	 
	2.6	Expenses	7
	 	 	 
	Section 3.	Purpose	7
	 	 	 
	Section 4.	Capital Contributions, Loans, Percentage Interests and Capital Account	7
	 	 	 
	4.1	Base Capital Contributions	7
	 	 	 
	4.2	Additional Capital Contributions	8
	 	 	 
	4.3	Percentage Ownership Interest	9
	 	 	 
	4.4	Return of Capital Contributions	9
	 	 	 
	4.5	No Interest on Capital	9
	 	 	 
	4.6	Capital Accounts	9
	 	 	 
	4.7	New Members	10
	 	 	 
	Section 5.	Distributions	11
	 	 	 
	5.1	Distribution of Distributable Funds	11
	 	 	 
	5.2	Distributions in Kind	11
	 	 	 
	Section 6.	Taxation	11
	 	 	 
	Section 7.	Books, Records, Tax Matters and Bank Accounts	11

 

     

     

    

  

	7.1	Books and Records	11
	 	 	 
	7.2	Reports and Financial Statements	11
	 	 	 
	7.3	Bank Accounts	12
	 	 	 
	7.4	Tax Returns	12
	 	 	 
	7.5	Expenses	12
	 	 	 
	Section 8.	Management	12
	 	 	 
	8.1	Management	12
	 	 	 
	8.2	Officers	15
	 	 	 
	8.3	Other Activities	16
	 	 	 
	8.4	FCPA	16
	 	 	 
	Section 9.	Independent Manager	17
	 	 	 
	Section 10.	Confidentiality	18
	 	 	 
	Section 11.	Representations and Warranties	18
	 	 	 
	11.1.	In General	18
	 	 	 
	11.2	Representations and Warranties	18
	 	 	 
	Section 12.	Sale, Assignment, Transfer or other Disposition	21
	 	 	 
	12.1	Prohibited Transfers	21
	 	 	 
	12.2	Admission of Transferee; Partial Transfers	21
	 	 	 
	12.3	Withdrawals	22
	 	 	 
	Section 13.	Dissolution	23
	 	 	 
	13.1	Limitations	23
	 	 	 
	13.2	Exclusive Events Requiring Dissolution	23
	 	 	 
	13.3	Liquidation	23

 

     

     

    

  

	13.4	Continuation of the Company	24
	 	 	 
	Section 14.	Limited Liability	24
	 	 	 
	Section 15.	Indemnification	24
	 	 	 
	15.1	Exculpation of Members	24
	 	 	 
	15.2	Indemnification by Company	24
	 	 	 
	15.3	General Indemnification by the Members	25
	 	 	 
	Section 16.	Mediation and Arbitration of Disputes	25
	 	 	 
	16.1	Events Giving Rise to Mediation or Arbitration	25
	 	 	 
	16.2	Selection of Arbitrators	26
	 	 	 
	16.3	Arbitration Hearing	26
	 	 	 
	16.4	Decision of the Arbitrators/Binding Effect	26
	 	 	 
	Section 17.	Miscellaneous	26
	 	 	 
	17.1	Notices	26
	 	 	 
	17.2	Governing Law	27
	 	 	 
	17.3	Successors	28
	 	 	 
	17.4	Pronouns	28
	 	 	 
	17.5	Table of Contents and Captions Not Part of Agreement	28
	 	 	 
	17.6	Severability	28
	 	 	 
	17.7	Counterparts	28
	 	 	 
	17.8	Entire Agreement and Amendment	28
	 	 	 
	17.9	Further Assurances	28
	 	 	 
	17.10	No Third Party Rights	28
	 	 	 
	17.11	Incorporation by Reference	28

 

     

     

    

  

	17.12	Remedies Cumulative	29
	 	 	 
	17.13	No Waiver	29
	 	 	 
	17.14	Limitation On Use of Names	29
	 	 	 
	17.15	Publicly Traded Partnership Provision	29
	 	 	 
	17.16	Public Announcements	29
	 	 	 
	17.17	Uniform Commercial Code	29
	 	 	 
	17.18	No Construction Against Drafter	30

 

     

     

    

 

MDR GREENSBORO HI TRS, LLC

LIMITED LIABILITY COMPANY AGREEMENT

 

This Limited Liability
Company Agreement (this “Agreement”) is adopted, executed, and agreed to be effective on September 15, 2017
(the “Effective Date”), by and among Medalist Diversified Holdings, LP, (“MDR”) and Peter
Mueller, Inc., a Virginia corporation (“PMI”), and together with MDR, the “Members,” and
each a “Member”).

 

WITNESSETH:

 

WHEREAS, MDR GREENSBORO
HI TRS, LLC, a Delaware limited liability company (the “Company”), was formed on September 15, 2017, pursuant
to the Act.

 

NOW, THEREFORE, in
consideration of the agreements and covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

		Section 1.	Definitions. As used in this Agreement:

 

“Act”
shall mean the Delaware Limited Liability Company Act (currently Chapter 18 of Title 6 of the Delaware Code), as amended from time
to time.

 

“Additional
Capital Contributions” shall have the meaning provided in Section 4.2(a).

 

“Affiliate”
shall mean as to any Person any other Person that directly or indirectly controls, is controlled by, or is under common control
with such first Person. For the purposes of this Agreement, a Person shall be deemed to control another Person if such Person possesses,
directly or indirectly, the power to direct or cause the direction of the management, policies and/or decision making of such other
Person, whether through the ownership of voting securities, by contract or otherwise. In addition, “Affiliate” shall
include as to any Person any other Person related to such Person within the meaning of Code Sections 267(b) or 707(b)(1).

 

“Agreed Upon
Value” shall mean the fair market value (net of any debt) agreed upon pursuant to a written agreement between the Members
of property contributed by a Member to the capital of the Company, which shall for all purposes hereunder be deemed to be the amount
of the Capital Contribution applicable to such property contributed.

 

“Agreement”
shall mean this Limited Liability Company Agreement, as amended from time to time.

 

“Base Capital
Contributions” shall mean, with respect to any Member, the Capital Contributions shown for that Member on the Exhibit
A attached to this Agreement as of the Effective Date (which has taken into account the Capital Contributions made pursuant
to Section 4.1 or otherwise accounted for by the provisions of Section 4.1) and which may be updated from time to
time to reflect Capital Contributions as of a particular date.

 

     

     

    

  

“Capital Account”
shall have the meaning provided in Section 4.6.

 

“Capital Contribution”
shall mean, with respect to any Member, the aggregate amount of: (A) cash contributed or deemed contributed in the form of Base
Capital Contributions; (B) cash contributed or deemed contributed in the form of Additional Capital Contributions; and (C) the
Agreed Upon Value of other property contributed by such Member to the capital of the Company net of any liability secured by such
property that the Company assumes or takes subject to.

 

“Cash Flow”
shall mean, for any period for which Cash Flow is being calculated, gross cash receipts of the Company (but excluding Capital Contributions),
less the following payments and expenditures: (i) all payments of operating expenses of the Company, (ii) all payments of principal
of, interest on and any other amounts due with respect to indebtedness, leases or other commitments or obligations of the Company
(and other loans by Members to the Company), (iii) all sums expended by the Company for capital expenditures, (iv) all prepaid
expenses of the Company, and (v) all sums expended by the Company which are otherwise capitalized.

 

“Cause”
shall mean, with respect to an Independent Manager, (i) acts or omissions by such Independent Manager that constitute willful disregard
of, or gross negligence with respect to, such Independent Manager’s duties, (ii) such Independent Manager has engaged in
or has been charged with or has been indicted or convicted for any crime or crimes of fraud or other acts constituting a crime
under any law applicable to such Independent Manager, (iii) such Independent Manager has breached its fiduciary duties of loyalty
and care as and to the extent of such duties in accordance with the terms this Agreement (iv) there is a material increase in the
fees charged by such Independent Manager or a material change to such Independent Manager’s terms of service, (v) such Independent
Manager is unable to perform his or her duties as Independent Manager due to death, disability or incapacity, or (vi) such Independent
Manager no longer meets the definition of Independent Manager.

 

“Certificate
of Formation” shall mean the Certificate of Formation of the Company, as amended from time to time.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, including the corresponding provisions of any successor
law.

 

“Company”
shall have the meaning provided in the Recitals to this Agreement.

 

“Confidential
Information” shall have the meaning provided in Section 10(a).

 

“Default Amount”
shall have the meaning provided in Section 4.2(b).

 

“Default Loan”
shall have the meaning provided in Section 4.2(b)(i).

 

“Default Loan
Rate” shall have the meaning provided in Section 4.2(b)(i).

 

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“Defaulting
Member” shall have the meaning provided in Section 4.2(b).

 

“Delaware UCC”
shall mean the Uniform Commercial Code as in effect in the State of Delaware from time to time.

 

“Dissolution
Event” shall have the meaning provided in Section 13.3.

 

“Distributable
Funds” with respect to any month or other period, as applicable, shall mean the sum of (x) an amount equal to the Cash
Flow of the Company for such month or other period, as applicable, as reduced by reserves for anticipated capital expenditures,
future working capital needs and operating expenses, contingent obligations and other purposes, the amounts of which shall be reasonably
determined from time to time by the Manager.

 

“Distributions”
shall mean the distributions payable (or deemed payable) to a Member.

 

“Effective Date”
shall have the meaning provided in the first paragraph of this Agreement.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“Fiscal Year”
shall mean each calendar year ending December 31.

 

“Foreign Corrupt
Practices Act” shall mean the Foreign Corrupt Practices Act of the United States, 15 U.S.C. Sections 78a, 78m, 78dd-1,
78dd-2, 78dd-3, and 78ff, as amended, if applicable, or any similar law of the jurisdiction where the Company transacts business
or any other jurisdiction, if applicable.

 

“Income”
shall mean the gross income of the Company for any month, Fiscal Year or other period, as applicable, including gains realized
on the sale, exchange or other disposition of the Company’s assets.

 

“Indemnified
Party” shall have the meaning provided in Section 15.3(a).

 

“Indemnifying
Party” shall have the meaning provided in Section 15.3(a).

 

“Independent
Manager” means a natural person selected by the Company (a) with prior experience as an independent director, independent
manager or independent member, (b) with at least three (3) years of employment experience, (c) who is provided by a Nationally
Recognized Service Company, (d) who is duly appointed as an Independent Manager and is not, will not be while serving as Independent
Manager (except pursuant to the provisions of Section 9 hereof, providing for the appointment of such Independent Manager
to become a “special member” upon Member ceasing to be a member of the Company) and shall not have been at any time
during the preceding five (5) years, any of the following:

 

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		(i)	a stockholder, director (other than as an Independent Manager), officer, employee, partner, attorney
or counsel of the Company, any Affiliate of the Company or any direct or indirect parent of the Company;

 

		(ii)	a customer, supplier or other Person who derives any of its purchases or revenues from its activities
with the Company or any Affiliate of the Company;

 

		(iii)	a Person or other entity Controlling or under Common Control with any such stockholder, partner,
customer, supplier or other Person; or

 

		(iv)	a member of the immediate family of any such stockholder, director, officer, employee, partner,
customer, supplier or other Person.

 

A natural person who
otherwise satisfies the foregoing definition and satisfies subparagraph (i) by reason of being the Independent Manager of a “special
purpose entity” affiliated with the Company shall be qualified to serve as an Independent Manager of the Company, provided
that the fees that such individual earns from serving as Independent Manager of affiliates of the Company in any given year constitute
in the aggregate less than five percent (5%) of such individual's annual income for that year.

 

A natural person who
satisfies the foregoing definition other than clause (ii) shall not be disqualified from serving as an Independent Manager of the
Company if such individual is an independent director or special manager provided by an Nationally Recognized Service Company that
provides professional independent directors and special managers and also provides other corporate services in the ordinary course
of its business.

 

“Inducement Agreements”
shall have the meaning provided in Section 15.3(a).

 

“Interest”
of any Member shall mean the entire limited liability company interest of such Member in the Company, which includes, without limitation,
any and all rights, powers and benefits accorded a Member under this Agreement and the duties and obligations of such Member hereunder.

 

“Loss”
shall mean the aggregate of losses, deductions and expenses of the Company for any month, Fiscal Year or other period, as applicable,
including losses realized on the sale, exchange or other disposition of the Company’s assets.

 

“Major Decision”
means any decision for the Company to take, or refrain from taking, any action or incurring any obligation with respect to the
following matters (or the effectuation of any such action or obligation):

 

		(i)	any merger, conversion or consolidation involving the Company or the sale, lease, transfer, exchange
or other disposition of all or substantially all of the Company’s assets or all of the Interests of the Members in the Company,
in one or a series of related transactions;

 

		(ii)	except upon the occurrence of any Dissolution Event hereunder, any liquidation, dissolution or
termination of the Company;

 

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		(iii)	doing any act which would make it impossible or unreasonably burdensome to carry on the business
of the Company;

 

		(iv)	any material change in the strategic direction of the Company or any material expansion of the
business of the Company;

 

		(v)	selling, conveying or effecting any other direct or indirect transfer of any material asset of
the Company or any portion thereof or the entering into of any agreement, commitment or assumption with respect to any of the foregoing;

 

		(vi)	make any loan to any Member, (except as expressly provided for in this Agreement);

 

		(vii)	cause or permit the Company to file for or fail to contest a bankruptcy proceeding, or seek or
permit a receivership or make an assignment for the benefit of its creditors;

 

		(viii)	cause or permit any material change or amendment of the organizational documents, including this
Agreement, of the Company;

 

“Manager”
shall meanMedalist Diversified Holdings, L.P., a Delaware limited partnership.

 

“Member”
and “Members” shall mean MDR and PMI and any other Person admitted to the Company pursuant to this Agreement;
provided, however, the term “Member” shall not include the Special Members. For purposes of the Act, the Members shall
constitute a single class or group of members.

 

“Nationally
Recognized Service Company” shall mean any of CT Corporation, Corporation Service Company, National Registered Agents,
Inc., Wilmington Trust Company, SPE Independent Director, LLC or such other nationally recognized company that provides independent
director, independent manager or independent member services and that is reasonably satisfactory to Lender, in each case that is
not an Affiliate of the Company and that provides professional independent directors and other corporate services in the ordinary
course of its business.

 

“Obligation”
shall mean any indebtedness, liabilities and obligations of MDR Greensboro, LLC, the affiliate holding title to the Rented Property,
under or in connection with any loan secured by the Rented Property, and all documents and certificates contemplated thereby or
delivered in connection with any loan of the Rented Property, or any related document in effect as of any date of determination.

 

“Percentage
Interest” shall have the meaning provided in Section 4.3.

 

“Person”
shall mean any individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company,
trust, unincorporated organization, government or any agency or political subdivision thereof or any other legal entity.

 

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“Rented Property
Owner” shall mean MDR Greensboro, LLC, a Delaware limited liability company, and affiliated entity of the Company.

 

“Regulations”
shall mean the Treasury Regulations promulgated pursuant to the Code, as amended from time to time, including the corresponding
provisions of any successor regulations.

 

“Rented Property”
shall mean the real property located at 7803 National Service Road, Greensboro, North Carolina, commonly known as [___________],
which the Company intends to lease from its owners MDR Greensboro, LLC and PMI Greensboro, LLC

 

“Securities
Act” shall mean the Securities Act of 1933, as amended.

 

“Special Member”
means, upon such person's admission to the Company as a member of the Company pursuant to Section 9(c), a person acting
as Independent Manager, in such person's capacity as a member of the Company. A Special Member shall only have the rights and duties
expressly set forth in this Agreement.

 

“Total Investment”
shall mean the sum of the aggregate Capital Contributions made by a Member.

 

“Transfer”
means, as a noun, any transfer, sale, assignment, exchange, charge, pledge, gift, hypothecation, conveyance, encumbrance or other
disposition, voluntary or involuntary, by operation of law or otherwise and, as a verb, voluntarily or involuntarily, by operation
of law or otherwise, to transfer, sell, assign, exchange, charge, pledge, give, hypothecate, convey, encumber or otherwise dispose
of.

 

“Virginia UCC”
shall have the meaning provided in Section 17.17.

 

		Section 2.	Organization of the Company.

 

2.1       Name.
The name of the Company shall be “MDR Greensboro HI TRS, LLC.” The business and affairs of the Company shall
be conducted under such name or such other name as the Manager deems necessary or appropriate to comply with the requirements of
law in any jurisdiction in which the Company may elect to do business.

 

2.2       Place
of Registered Office; Registered Agent. The address of the registered office of the Company in the State of Delaware is 1201
N. Orange Street, Suite 7044 Wilmington, Delaware 19801. The name and address of the registered agent for service of process on
the Company in the State of Delaware is Sorensen Entity Services, LLC, 1201 N. Orange Street, Suite 7044 Wilmington, Delaware 19801.
The Manager may at any time on five (5) days prior notice to all Members change the location of the Company’s registered
office or change the registered agent.

 

2.3       Principal
Office. The principal address of the Company shall be c/o Medalist Properties, Inc. 11 S. 12th Street, Suite 401,
Richmond, Virginia 23219, or, in each case, at such other place or places as may be determined by the Manager from time to time.

 

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2.4       Filings.
On or before execution of this Agreement, an authorized person within the meaning of the Act duly filed or caused to be filed the
Certificate of Formation of the Company with the office of the Secretary of State of Delaware, as provided in Section 18-201 of
the Act, and the Members hereby ratify such filing. The Manager shall use its best efforts to take such other actions as may be
reasonably necessary to perfect and maintain the status of the Company as a limited liability company under the laws of Delaware.
Notwithstanding anything contained herein to the contrary, the Company shall not do business in any jurisdiction that would jeopardize
the limitation on liability afforded to the Members under the Act or this Agreement.

 

2.5       Term.
The Company shall continue in perpetuity from the date hereof, or until the Company is dissolved as provided in Section 13.

 

2.6       Expenses
of the Company. Other than the reimbursements of costs and expenses as provided herein, no fees, costs or expenses shall be
payable by the Company to any Member (or its Affiliates).

 

		Section 3.	Purpose.

 

The Company is organized
for the purpose of engaging in any lawful business, purpose or activity that may be undertaken by a limited liability company organized
under and governed by the Act. The Company shall possess and may exercise all of the powers and privileges granted by the Act,
by any other law or by this Agreement, together with any powers incidental thereto, including such powers and privileges as are
necessary or convenient to the conduct, promotion or attainment of the business, purposes or activities of the Company.

 

		Section 4.	Capital Contributions, Loans, Percentage Interests
and Capital Accounts.

 

4.1       Base
Capital Contributions.

 

(a)       MDR
has made and shall be credited with a Base Capital Contribution to the Company in the following amount, receipt of which is hereby
acknowledged:

 

	 	[____]	$__________________

 

(b)       PMI
has made and shall be credited with a Base Capital Contribution to the Company in the following amount, receipt of which is hereby
acknowledged:

 

	 	[____]	$__________________

 

(c)       In accordance
with Section [__], Special Member(s) shall not be required to make any capital contributions to the Company.

 

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4.2       Additional
Capital Contributions.

 

(a)           Additional
Capital Contributions (“Additional Capital Contributions”) may be called for from the Members by the Manager,
upon unanimous prior written approval by the Members, from time to time as and to the extent capital is necessary. Such Additional
Capital Contributions shall be requested in an amount for each Member equal to the product of the amount of the aggregate Capital
Contribution called for multiplied by that Member’s Percentage Interest, as defined in Section 4.3. Such Additional
Capital Contributions, if payable, shall be payable by the Members to the Company upon the earlier of (i) twenty (20) days after
written request from the Company, or (ii) the date when the Capital Contribution is required, as set forth in a written request
from the Company. The provisions of this Section [__] are intended to benefit the Member and the Special Members and, to
the fullest extent permitted by law, shall not be construed as conferring any benefit upon any creditor of the Company, and the
Member and the Special Member shall not have any duty or obligation to any creditor of the Company to make any contribution to
the Company or to issue any call for capital pursuant to this Agreement.

 

(b)           If
a Member (a “Defaulting Member”) fails to make a Capital Contribution that is required as provided in Section
4.2(a) within the time frame required therein (the amount of the failed contribution and related loan shall be the “Default
Amount”), then the other Members, provided that they have each made the Capital Contribution required to be made by it,
in addition to any other remedies each may have hereunder or at law, shall have one or more of the following remedies:

 

(i)       to
advance to the Company on behalf of, and as a loan to the Defaulting Member, an amount equal to the Default Amount to be evidenced
by a promissory note in form reasonably satisfactory to the non-defaulting member (each such loan, a “Default Loan”).
The Capital Account of the Defaulting Member shall be credited with the amount of such Default Amount attributable to a Capital
Contribution and the aggregate of such amounts shall constitute a debt owed by the Defaulting Member to the non-failing Member.
Any Default Loan shall bear interest at the rate of eighteen percent (18%) per annum, but in no event in excess of the highest
rate permitted by applicable laws (the “Default Loan Rate”) and shall be payable by the Defaulting Member on
demand from the non-defaulting member and from any Distributions due to the Defaulting Member hereunder. Interest on a Default
Loan to the extent unpaid, shall accrue and compound on a quarterly basis. A Default Loan shall be pre-payable, in whole or in
part, at any time or from time to time without penalty. Any such Default Loans shall be with full recourse to the Defaulting Member
and shall be secured by the Defaulting Member’s interest in the Company including, without limitation, such Defaulting Member’s
right to Distributions. In furtherance thereof, upon the making of such Default Loan, the Defaulting Member hereby pledges, assigns
and grants a security interest in its Interest to the non-defaulting Member and agrees to promptly execute such documents and statements
reasonably requested by the non-defaulting Member to further evidence and secure such security interest. Any advance by the non-defaulting
Member on behalf of a Defaulting Member pursuant to this Section 4.2(b)(i) shall be deemed to be a Capital Contribution
made by the Defaulting Member except as otherwise expressly provided herein. All Distributions to the Defaulting Member hereunder
shall be applied first to payment of any interest due under any Default Loan and then to principal until all amounts due thereunder
are paid in full. While any Default Loan is outstanding, the Company shall be obligated to pay directly to the non-defaulting Member,
for application to and until all Default Loans have been paid in full, the amount of (x) any Distributions payable to the Defaulting
Member, and (y) any proceeds of the sale of the Defaulting Member’s Interest in the Company; or

 

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(ii)       subject
to any applicable thin capitalization limitations on indebtedness of the Company, to treat its portion of such Capital Contribution
as a loan to the Company (rather than a Capital Contribution) and to advance to the Company as a loan to the Company an amount
equal to the Default Amount, which loan shall be evidenced by a promissory note in form reasonably satisfactory to the non-defaulting
Member and which loan shall bear interest at the Default Loan Rate and be payable on a first priority basis by the Company from
available Cash Flow and prior to any Distributions made to the Defaulting Member. If each Member has loans outstanding to the Company
under this provision, such loans shall be payable to each Member in proportion to the outstanding balances of such loans to each
Member at the time of payment. Any advance to the Company pursuant to this Section 4.2(b)(ii) shall not be treated as a
Capital Contribution made by the Defaulting Member; or

 

(iii)       in
lieu of the remedies set forth in subparagraphs (i) or (ii), revoke its portion of such Additional Capital Contribution, whereupon
the portion of the Capital Contribution made by the non-defaulting Member shall be returned within ten (10) days with interest
computed at the Default Loan Rate by the Company.

 

4.3       Percentage
Ownership Interest. The Members shall have the initial percentage ownership interests (as the same are adjusted as provided
in this Agreement, a “Percentage Interest”) in the Company as shall be set forth on Exhibit A immediately
following the Base Capital Contributions provided for in Section 4.1 have been made. The Percentage Interests of the Members
in the Company shall be adjusted monthly so that the respective Percentage Interests of the Members at any time shall be in proportion
to their respective cumulative Total Investment made (or deemed to be made) pursuant to Sections 4.1 and 4.2. Percentage
Interests shall not be adjusted by distributions made (or deemed made) to a Member.

 

4.4       Return
of Capital Contribution. Except as approved by each of the Members, no Member shall have any right to withdraw or make a demand
for withdrawal of the balance reflected in such Member’s Capital Account (as determined under Section 4.6) until the
full and complete winding up and liquidation of the business of the Company.

 

4.5       No
Interest on Capital. Interest earned on Company funds shall inure solely to the benefit of the Company, and no interest shall
be paid upon any Capital Contributions nor upon any undistributed or reinvested income or profits of the Company.

 

4.6       Capital
Accounts. A separate capital account (the “Capital Account”) shall be maintained for each Member in accordance
with Treas. Reg. 1.704-1(b)(2)(iv). Without limiting the foregoing, the Capital Account of each Member shall be increased by (i) the
amount of any Capital Contributions made by such Member. The Capital Account of each Member shall be reduced by (i) the amount
of any cash and the fair market value of any property distributed to the Member by the Company (net of liabilities secured by such
distributed property that the Member is considered to assume or take subject to), (ii) the amount of Loss allocated to the Member
and (iii) the amount of expenses or losses, if any, allocated to such Member not otherwise taken into account in this Section
4.6. If any property other than cash is distributed to a Member, the Capital Accounts of the Members shall be adjusted as if
such property had instead been sold by the Company for a price equal to its fair market value, and the proceeds distributed in
the manner set forth in Section 5.1 or Section 13.3(d)(iii). No Member shall be obligated to restore any negative
balance in its Capital Account. No Member shall be compensated for any positive balance in its Capital Account except as otherwise
expressly provided herein. The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital
Accounts are intended to comply with the provisions of Treas. Reg. 1.170-1(b)(2)(iv) and applicable Treasury regulations and shall
be interpreted and applied in a manner consistent with such Regulations.]

 

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(a)       New
Members. The Company may issue additional Interests and thereby admit a new Member or Members, as the case may be, to the Company,
only if: (a) such new Member (i) has delivered to the Company its Capital Contribution, (ii) has agreed in writing to be bound
by the terms of this Agreement by becoming a party hereto, and (iii) has delivered such additional documentation as the Company
shall reasonably require to so admit such new Member to the Company; (b) the Manager and each then-current Member has consented
in writing to the admission of such new Member. Notwithstanding anything herein to the contrary, contemporaneously with this Agreement,
MDR and [PMI] have been admitted to the Company as Members; and (c) Upon the occurrence of any event that causes the Member to
cease to be a member of the Company (other than upon continuation of the Company without dissolution upon (i) an assignment by
the Member of all of its limited liability company interest in the Company and the admission of the transferee pursuant to this
Agreement, or (ii) the resignation of the Member and the admission of an additional member of the Company pursuant to this
Agreement the Person acting as the Independent Manager pursuant to Section 9 shall, without any action of any Person
and simultaneously with the Member ceasing to be a member of the Company, automatically be admitted to the Company as a Special
Member and shall continue the Company without dissolution. No Special Member may resign from the Company or transfer its rights
as Special Member unless (i) a successor Special Member has been admitted to the Company as Special Member by executing a counterpart
to this Agreement, and (ii) such successor has also accepted its appointment as Independent Manager pursuant to Section 9;
provided, however, the Special Member shall automatically cease to be a member of the Company upon the admission to the Company
of a substitute Member. Any Special Member shall be a member of the Company that has no interest in the profits, losses and capital
of the Company and has no right to receive any distributions of Company assets. Pursuant to Section 18-301 of the Act, the Special
Member shall not be required to make any capital contributions to the Company and shall not receive a limited liability company
interest in the Company. No Special Member, in its capacity as Special Member, may bind the Company. Except as required by any
mandatory provision of the Act, no Special Member, in its capacity as Special Member, shall have any right to vote on, approve
or otherwise consent to any action by, or matter relating to, the Company, including, without limitation, the merger, consolidation
or conversion of the Company. In order to implement the admission to the Company of the Special Members, the Person acting as an
Independent Manager pursuant to Section 9 shall execute a counterpart to this Agreement. Prior to their admission to the
Company as Special Member, the Person acting as Independent Manager pursuant to Section 9 shall not be a member of the Company.

 

    	 	10	 

     

    

  

		Section
                          5.	Distributions.

 

5.1           Distribution
of Distributable Funds

 

(a)           The
Manager shall calculate and determine the amount of Distributable Funds for each applicable period. Except as provided in Sections
4.2(b), 5.1(b) or 13.3 or otherwise provided hereunder, Distributable Funds, if any, shall be distributed to
the Members, in proportion to their Percentage Interests on the 15th day of each month.

 

(b)           Any
distributions otherwise payable to a Member under this Agreement shall be applied first to satisfy amounts due and payable on account
of the indemnity and/or contribution obligations of such Member under this Agreement and/or any other agreement delivered by such
Member to the Company or any other Member but shall be deemed distributed to such Member for purposes of this Agreement.

 

5.2           Distributions
in Kind. In the discretion of the Manager, Distributable Funds may be distributed to the Members in cash or in kind and Members
may be compelled to accept a distribution of any asset in kind even if the percentage of that asset distributed to it exceeds
a percentage of that asset that is equal to the percentage in which such Member shares in distributions from the Company. In the
case of all assets to be distributed in kind, the amount of the distribution shall equal the fair market value of the asset distributed
as determined by the Manager. In the case of a distribution of publicly traded property, the fair market value of such property
shall be deemed to be the average closing price for such property for the thirty (30) day period immediately prior to the distribution,
or if such property has not yet been publicly traded for thirty (30) days, the average closing price of such property for the
period prior to the distribution in which the property has been publicly traded.

 

		Section 6.	Taxation.

 

The Manager shall cause
the Company to elect to be taxed as a subchapter C corporation under the Code by filing Form 8832 with the Internal Revenue Service.
The Company will not make any allocations of income, losses or expense deductions to the Members. Tax information reasonably required
by Members for federal and state income tax reporting purposes with respect to a taxable year shall be furnished to them on or
before January 31st of the year immediately following such taxable year.

 

		Section
                          7.	Books,
Records, Tax Matters and Bank Accounts.

 

7.1           Books
and Records. The books and records of account of the Company shall be maintained at the Company’s principal office or
at a location designated by the Manager, and all such books and records (and the dealings and other affairs of the Company) shall
be available to any Member at such location for review, investigation, audit and copying, at such Member’s sole cost and
expense, during normal business hours on at least twenty-four (24) hours prior notice.

 

7.2           Reports
and Financial Statements.

 

(a)       Within
thirty (30) days of the end of each Fiscal Year, the Manager shall cause each Member to be furnished with two sets of the following
additional annual reports computed as of the last day of the Fiscal Year:

 

    	 	11	 

     

    

  

(i)       An
unaudited balance sheet of the Company;

 

(ii)       An
unaudited statement of the Company’s profit and loss; and

 

(iii)       A
statement of the Members’ Capital Accounts and changes therein for such Fiscal Year.

 

7.3           Bank
Accounts. All funds of the Company are to be deposited in the Company’s name in such bank account or accounts as may
be designated by the Manager and shall be withdrawn on the signature of such Person or Persons as the Manager may authorize.

 

7.4           Tax
Returns. The Manager shall cause to be prepared all income and other tax returns of the Company required by applicable law.
No later than the due date or extended due date thereof, the Manager shall deliver or cause to be delivered to each Member such
tax documentation with respect to the Company as shall be necessary for the preparation by such Member of its U.S. federal and
state income or other tax and information returns.

 

7.5           Expenses.
Notwithstanding any contrary provision of this Agreement, the Members acknowledge and agree that the reasonable expenses and charges
incurred directly or indirectly by or on behalf of the Manager in connection with its obligations under this Section 7
will be reimbursed by the Company to the Manager.

 

		Section
                          8.	Management.

 

8.1           Management.

 

(a)       The
Company shall be managed by a manager. MDR and [PMI] hereby appoint Medalist Fund Manager, Inc., a Virginia corporation (“Manager”),
as the initial Manager.

 

(b)       Subject
to Section 8(d), the Manager shall have the authority to exercise all of the powers and privileges granted by the Act, any
other law or this Agreement, together with any powers incidental thereto, and to take any other action not prohibited under the
Act or other applicable law, so far as such powers or actions are necessary or convenient or related to the conduct, promotion
or attainment of the business, purposes or activities of the Company; provided, however, that the Manager shall submit any Major
Decision to the Members and any Major Decision or other matter submitted by the Manager to the Members shall require the express
and unanimous approval of the Members.

 

(c)       To
the extent of its powers set forth in this Agreement and subject to Section 8(d), the Manager is an agent of the Company
for the purpose of the Company's business, and the actions of the Manager taken in accordance with such powers set forth in this
Agreement shall bind the Company.

 

    	 	12	 

     

    

  

(d)       Limitations
on the Company’s Activities.

 

		(iii)	This Section 8(d) is being adopted in order to comply with certain provisions required in
order to qualify the Company as a “special purpose” entity.

 

		(iv)	The Members shall not, so long as any Obligation is outstanding, amend, alter, change or repeal
the definition of “Independent Manager” or any section in this Agreement without the prior unanimous written consent
of the Members and the Independent Manager. Subject to this Section 8(d), the Members reserve the right to amend, alter,
change or repeal any provisions contained in this Agreement in accordance with the terms hereof.

 

		(v)	Notwithstanding any other provision of this Agreement and any provision of law that otherwise so
empowers the Company, any Member, any Manager, any Officer or any other Person, so long as any Obligation is outstanding, neither
the Members nor the Manager nor any Officer nor any other Person shall be authorized or empowered, nor shall they permit the Company,
without the prior unanimous written consent of the Members and the Independent Manager, to take any Material Action, provided,
however, that, so long as any Obligation is outstanding, the Members may not authorize the taking of any Material Action,
unless there is at least one Independent Manager then serving in such capacity.

 

		(vi)	The Manager shall cause the Company to do or cause to be done all things necessary to preserve
and keep in full force and effect its existence, rights (charter and statutory) and franchises. The Manager shall also cause the
Company to:

 

		(A)	remain solvent and maintain adequate capital for the normal obligations reasonably foreseeable
in a business of its size and character and in light of its contemplated business operations;

 

		(B)	maintain its books, records, resolutions and agreements as official records;

 

		(C)	hold its assets in its own name;

 

		(D)	conduct its business in its name;

 

		(E)	maintain its financial statements, accounting records and other entity documents separate from
any other Person;

 

    	 	13	 

     

    

  

		(F)	pay its own liabilities, including the salaries of its own employees, out of its own funds and
assets;

 

		(G)	maintain an arm’s-length relationship with its Affiliates;

 

		(H)	allocate fairly and reasonably shared expenses, including shared office space, and use separate
stationery, invoices and checks;

 

		(I)	maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain
or identify its individual assets from those of any other Person;

 

		(J)	all times hold itself out to the public and all other Persons as a legal entity separate from the
Members and any other Person;

 

		(K)	consider the interests of its creditors in connection with all limited liability company actions;

 

		(L)	maintain its books and records separate from any other Person;

 

		(M)	file its own tax returns, if any, as may be required under applicable law, to the extent (1) not
part of a consolidated group filing a consolidated return or returns or (2) not treated as a division for tax purposes of another
taxpayer, and pay any taxes so required to be paid under applicable law; and

 

		(N)	keep minutes of such meetings and actions and observe all other Delaware limited liability company
formalities.

 

Failure of the Company, or the
Members or the Manager or any officer on behalf of the Company, to comply with any of the foregoing covenants or any other covenants
contained in this Agreement shall not affect the status of the Company as a separate legal entity or the limited liability of the
Members or the Special Member.

 

		(vii)	So long as any Obligation is outstanding, the Company shall not do any of the following:

 

		(A)	engage, directly or indirectly, in any business other than the actions required or permitted to
be performed under Section 6 or this Section 8(d);

 

    	 	14	 

     

    

  

		(B)	engage, seek or consent to any dissolution, winding up, liquidation, consolidation, merger, transfer
of partnership or membership interests or the like, or amendment of this Agreement or the Certificate of Formation;

 

		(C)	fail to correct any known misunderstanding regarding the separate identity of the Company;

 

		(D)	commingle its funds or assets with those of any other Person;

 

		(E)	incur, create or assume any indebtedness;

 

		(F)	assume or guarantee or become obligated for the debts of any other Person or hold out its credit
as being available to satisfy the obligations of any other Person;

 

		(G)	acquire obligations or securities of its Members or Affiliates;

 

		(H)	pledge its assets for the benefit of any other Person;

 

		(I)	make loans to any Person;

 

		(J)	identify its Members or any Affiliate of any of them, as a division or part of it; or

 

		(K)	enter into or be a party to, any transaction with its Members or Affiliates except in the ordinary
course of its business and on terms which are intrinsically fair and are no less favorable to it than would be obtained in a comparable
arm’s-length transaction with an unrelated third party.

 

For so long as any
Obligation is outstanding, Benefit Street Partners Realty Operating Partnership, L.P., and its successors and assigns, the lender
associated with the Rented Property is and shall be an intended third-party beneficiary of the provisions of this Section 8(d)
and any and all other “special purpose” provisions of this Agreement.

 

8.2        Officers.
The Manager may appoint individuals to act on behalf of the Company with such titles and authority as determined from time to time
by the Manager. Each of such individuals shall hold office until his or her death, resignation or replacement by Manager.

 

    	 	15	 

     

    

  

		8.3	Other Activities.

 

(a)       Right
to Participation in Other Member Ventures. Neither the Company nor any Member (or any Affiliate of any Member) shall have any
right by virtue of this Agreement either to participate in or to share in any other now existing or future ventures, activities
or opportunities of any of the other Members or their Affiliates, or in the income or proceeds derived from such ventures, activities
or opportunities. Neither the Company nor any Member (or any Affiliate of any Member) shall have any right by virtue of this Agreement
either to participate in or to share in any other now existing or future ventures, activities or opportunities of any of the other
Members or their Affiliates, or in the income or proceeds derived from such ventures, activities or opportunities.

 

(b)       Limitation
on Actions of Members; Binding Authority. No Member shall take any action on behalf of, or in the name of, the Company, or
enter into any contract, agreement, commitment or obligation binding upon the Company, or, in its capacity as a Member or Manager
of the Company, perform any act in any way relating to the Company or the Company’s assets, except in a manner and to the
extent consistent with the provisions of this Agreement.

 

		8.4	FCPA.

 

(a)       In
compliance with the Foreign Corrupt Practices Act, each Member will not, and will ensure that its officers, directors, employees,
shareholders, members, agents and Affiliates, acting on its behalf or on the behalf of the Company or Affiliates do not, for a
corrupt purpose, offer, directly or indirectly, promise to pay, pay, promise to give, give or authorize the paying or giving of
anything of value to any official representative or employee of any government agency or instrumentality, any political party or
officer thereof or any candidate for office in any jurisdiction, except for any facilitating or expediting payments to government
officials, political parties or political party officials the purpose of which is to expedite or secure the performance of a routine
governmental action by such government officials or political parties or party officials. The term “routine governmental
action” for purposes of this provision shall mean an action which is ordinarily and commonly performed by the applicable
government official in (i) obtaining permits, licenses, or other such official documents which such Person is otherwise legally
entitled to; (ii) processing governmental papers; (iii) providing police protection, mail pick-up and delivery or scheduling inspections
associated with contract performance or inspections related to transit of goods across country; (iv) providing phone service, power
and water supply, loading and unloading of cargo, or protecting perishable products or commodities from deterioration; or (v) actions
of a similar nature.

 

The term routine governmental
action does not include any decision by a government official whether, or on what terms, to award new business to or to continue
business with a particular party, or any action taken by an official involved in the decision-making process to encourage a decision
to award new business to or continue business with a particular party.

 

(b)       Each
Member agrees to notify immediately the other Member of any request that such Member or any of its officers, directors, employees,
shareholders, members, agents or Affiliates, acting on its behalf, receives to take any action that may constitute a violation
of the Foreign Corrupt Practices Act.

 

    	 	16	 

     

    

  

		Section 9.	Independent Manager.

 

(a)       As
long as any Obligation is outstanding, the Manager shall cause the Company at all times to have at least one (1) Independent Manager
who will be appointed by the Manager. To the fullest extent permitted by law, including Section 18-1101(c) of the Act, and notwithstanding
any duty otherwise existing at law or in equity, the Independent Manager shall consider only the interests of the Company, including
the Company’s creditors, in acting or otherwise voting on the matters referred to in Section 8.1(d)(iii). No resignation
or removal of an Independent Manager, and no appointment of a successor Independent Manager, shall be effective until such successor
(i) shall have accepted his or her appointment as an Independent Manager by a written instrument, and (ii) shall have executed
a counterpart to this Agreement as required by Section 17.7. In the event of a vacancy in the position of Independent Manager,
the Manager shall, as soon as practicable, appoint a successor Independent Manager. All right, power and authority of the Independent
Manager shall be limited to the extent necessary to exercise those rights and perform those duties specifically set forth in this
Agreement. Except for duties to the Company as set forth in the second sentence of this Section 9 (including duties to the
Members and the Company’s creditors solely to the extent of its economic interests in the Company and to the Company’s
creditors but excluding (i) all other interests of the Members, (ii) the interests of other Affiliates of the Company, and (iii)
the interests of any group of Affiliates of which the Company is a part), the Independent Manager shall not have any fiduciary
duties to the Members, or any other Person bound by this Agreement; provided, however, the foregoing shall not eliminate the implied
contractual covenant of good faith and fair dealing. To the fullest extent permitted by law, including Section 18-1101(e) of the
Act, the Independent Manager shall not be liable to the Company, the Members or any other Person bound by this Agreement for breach
of contract or breach of duties (including fiduciary duties), unless the Independent Manager acted in bad faith or engaged in willful
misconduct. No Independent Manager shall at any time serve as trustee in bankruptcy for any Affiliate of the Company.

 

(b)       Subject
to the other provisions of this Section 9, for so long as the Obligations are outstanding, an Independent Manager may be
removed by the Manager only for Cause. Notwithstanding anything to the contrary contained in this Agreement, for so long as any
Obligation is outstanding, no Independent Manager shall be removed or replaced unless the Company provides the Lender with no less
than three (3) business days' prior written notice of (a) any proposed removal of such Independent Manager, together with a statement
as to the reasons for such removal, and (b) the identity of the proposed replacement Independent Manager, together with a certification
that such replacement satisfies the requirements for an Independent Manager set forth in this Agreement.

 

(c)       Subject
to this Section 9, the Manager may determine at any time in its sole and absolute discretion the number of Independent Managers.
The initial number of Independent Managers shall be one (1). The initial Independent Manager designated by the Manager is Christopher
Sorensen.

 

    	 	17	 

     

    

 

		Section 10.	Confidentiality.

 

(a)       Any
information relating to a Member’s business, operation or finances which are proprietary to, or considered proprietary by,
a Member are hereinafter referred to as “Confidential Information.” All Confidential Information in tangible
form (plans, writings, drawings, computer software and programs, etc.) or provided to or conveyed orally or visually to a receiving
Member, shall be presumed to be Confidential Information at the time of delivery to the receiving Member. All such Confidential
Information shall be protected by the receiving Member from disclosure with the same degree of care with which the receiving Member
protects its own Confidential Information from disclosure. Each Member agrees: (i) not to disclose such Confidential Information
to any Person except to those of its employees or representatives who need to know such Confidential Information in connection
with the conduct of the business of the Company and who have agreed to maintain the confidentiality of such Confidential Information
and (ii) neither it nor any of its employees or representatives will use the Confidential Information for any purpose other than
in connection with the conduct of the business of the Company; provided that such restrictions shall not apply if such Confidential
Information:

 

(x)       is
or hereafter becomes public, other than by breach of this Agreement;

 

(y)       was
already in the receiving Member’s possession prior to any disclosure of the Confidential Information to the receiving Member
by the divulging Member; or

 

(z)       has
been or is hereafter obtained by the receiving Member from a third party not bound by any confidentiality obligation with respect
to the Confidential Information; provided, further, that nothing herein shall prevent any Member from disclosing
any portion of such Confidential Information (1) to the Company and allowing the Company to use such Confidential Information in
connection with the Company’s business, (2) pursuant to judicial order or in response to a governmental inquiry, by subpoena
or other legal process, but only to the extent required by such order, inquiry, subpoena or process, and only after reasonable
notice to the original divulging Member, (3) as necessary or appropriate in connection with or to prevent the audit by a governmental
agency of the accounts of the Members, (4) in order to initiate, defend or otherwise pursue legal proceedings between the parties
regarding this Agreement, (5) necessary in connection with a Transfer of an Interest permitted hereunder or (6) to a Member’s
respective attorneys or accountants or other representative.

 

(b)       The
Members and their Affiliates shall each act to safeguard the secrecy and confidentiality of, and any proprietary rights to, any
non-public information relating to the Company and its business, except to the extent such information is required to be disclosed
by law or reasonably necessary to be disclosed in order to carry out the business of the Company. Each Member may, from time to
time, provide the other Members written notice of its non-public information which is subject to this Section 10(b).

 

		Section
                          11.	Representations and Warranties.

 

11.1       In
General. As of the date hereof, each of the Members hereby makes each of the representations and warranties applicable to such
Member as set forth in Section 11.2. Such representations and warranties shall survive the execution of this Agreement.

 

11.2       Representations
and Warranties. Each Member hereby represents and warrants that:

 

    	 	18	 

     

    

  

(a)           Due
Incorporation or Formation; Authorization of Agreement. Such Member is a corporation duly organized or a partnership or limited
liability company duly formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or
formation and has the corporate, partnership or company power and authority to own its property and carry on its business as owned
and carried on at the date hereof and as contemplated hereby. Such Member is duly licensed or qualified to do business and in good
standing in each of the jurisdictions in which the failure to be so licensed or qualified would have a material adverse effect
on its financial condition or its ability to perform its obligations hereunder. Such Member has the corporate, partnership or company
power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and the execution, delivery
and performance of this Agreement has been duly authorized by all necessary corporate, partnership or company action. This Agreement
constitutes the legal, valid and binding obligation of such Member.

 

(b)           No
Conflict with Restrictions; No Default. Neither the execution, delivery or performance of this Agreement nor the consummation
by such Member (or any of its Affiliates) of the transactions contemplated hereby (i) does or will conflict with, violate or result
in a breach of (or has conflicted with, violated or resulted in a breach of) any of the terms, conditions or provisions of any
law, regulation, order, writ, injunction, decree, determination or award of any court, any governmental department, board, agency
or instrumentality, domestic or foreign, or any arbitrator, applicable to such Member or any of its Affiliates, (ii) does or will
conflict with, violate, result in a breach of or constitute a default under (or has conflicted with, violated, resulted in a breach
of or constituted a default under) any of the terms, conditions or provisions of the articles of incorporation, bylaws, partnership
agreement or operating agreement of such Member or any of its Affiliates or of any material agreement or instrument to which such
Member or any of its Affiliates is a party or by which such Member or any of its Affiliates is or may be bound or to which any
of its properties or assets is subject, (iii) does or will conflict with, violate, result in (or has conflicted with, violated
or resulted in) a breach of, constitute (or has constituted) a default under (whether with notice or lapse of time or both), accelerate
or permit the acceleration of (or has accelerated) the performance required by, give (or has given) to others any material interests
or rights or require any consent, authorization or approval under any indenture, mortgage, lease, agreement or instrument to which
such Member or any of its Affiliates is a party or by which such Member or any of its Affiliates or any of their properties or
assets is or may be bound or (iv) does or will result (or has resulted) in the creation or imposition of any lien upon any of the
properties or assets of such Member or any of its Affiliates.

 

(c)           Governmental
Authorizations. Any registration, declaration or filing with, or consent, approval, license, permit or other authorization
or order by, or exemption or other action of, any governmental, administrative or regulatory authority, domestic or foreign, that
was or is required in connection with the valid execution, delivery, acceptance and performance by such Member under this Agreement
or consummation by such Member (or any of its Affiliates) of any transaction contemplated hereby has been completed, made or obtained
on or before the date hereof.

 

    	 	19	 

     

    

  

(d)           Litigation.
There are no actions, suits, proceedings or investigations pending, or, to the knowledge of such Member or any of its Affiliates,
threatened against or affecting such Member or any of its Affiliates or any of their properties, assets or businesses in any court
or before or by any governmental department, board, agency or instrumentality, domestic or foreign, or any arbitrator which could,
if adversely determined (or, in the case of an investigation could lead to any action, suit or proceeding which if adversely determined
could) reasonably be expected to materially impair such Member’s ability to perform its obligations under this Agreement
or to have a material adverse effect on the consolidated financial condition of such Member; such Member or any of its Affiliates
has not received any currently effective notice of any default, and such Member or any of its Affiliates is not in default, under
any applicable order, writ, injunction, decree, permit, determination or award of any court, any governmental department, board,
agency or instrumentality, domestic or foreign, or any arbitrator which could reasonably be expected to materially impair such
Member’s (or any of its Affiliate’s) ability to perform its obligations under this Agreement or to have a material
adverse effect on the consolidated financial condition of such Member.

 

(e)           Investigation.
Such Member is acquiring its Interest based upon its own investigation, and the exercise by such Member of its rights and the performance
of its obligations under this Agreement will be based upon its own investigation, analysis and expertise. Such Member is a sophisticated
investor possessing an expertise in analyzing the benefits and risks associated with acquiring investments that are similar to
the acquisition of its Interest.

 

(f)           Broker.
No broker, agent or other person acting as such on behalf of such Member was instrumental in consummating this transaction and
that no conversations or prior negotiations were had by such party with any broker, agent or other such person concerning the transaction
that is the subject of this Agreement.

 

(g)           Investment
Company Act. Neither such Member nor any of its Affiliates is, nor will the Company as a result of such Member holding an interest
therein be, an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940,
as amended.

 

(h)           Securities
Matters.

 

(i)       None
of the Interests are registered under the Securities Act or any state securities laws. Such Member understands that the offering,
issuance and sale of the Interests are intended to be exempt from registration under the Securities Act, based, in part, upon the
representations, warranties and agreements contained in this Agreement. Such Member is an “accredited investor” as
such term is defined in Rule 501 of Regulation D promulgated under the Securities Act.

 

(ii)       Neither
the Securities and Exchange Commission nor any state securities commission has approved the Interests or passed upon or endorsed
the merits of the offer or sale of the Interests. Such Member is acquiring the Interests solely for such Member’s own account
for investment and not with a view to resale or distribution thereof in violation of the Securities Act.

 

    	 	20	 

     

    

  

(iii)       Such
Member is unaware of, and in no way relying on, any form of general solicitation or general advertising in connection with the
offer and sale of the Interests, and no Member has taken any action which could give rise to any claim by any person for brokerage
commissions, finders’ fees (without regard to any finders’ fees payable by the Company directly) or the like relating
to the transactions contemplated hereby.

 

(iv)       Such
Member is not relying on the Company or any of its officers, directors, employees, advisors or representatives with regard to the
tax and other economic considerations of an investment in the Interests, and such Member has relied on the advice of only such
Member’s advisors.

 

(v)       Such
Member understands that the Interests may not be sold, hypothecated or otherwise disposed of unless subsequently registered under
the Securities Act and applicable state securities laws, or an exemption from registration is available. Such Member agrees that
it will not attempt to sell, transfer, assign, pledge or otherwise dispose of all or any portion of the Interests in violation
of this Agreement.

 

(vi)       Such
Member has adequate means for providing for its current financial needs and anticipated future needs and possible contingencies
and emergencies and has no need for liquidity in the investment in the Interests.

 

(vii)       Such
Member is knowledgeable about investment considerations and has a sufficient net worth to sustain a loss of such Member’s
entire investment in the Company in the event such a loss should occur. Such Member’s overall commitment to investments which
are not readily marketable is not excessive in view of such Member’s net worth and financial circumstances and the purchase
of the Interests will not cause such commitment to become excessive. The investment in the Interests is suitable for such Member.

 

(viii)       Such
Member represents to the Company that the information contained in this subparagraph (h) and in all other writings, if any, furnished
to the Company with regard to such Member (to the extent such writings relate to its exemption from registration under the Securities
Act) is complete and accurate and may be relied upon by the Company in determining the availability of an exemption from registration
under federal and state securities laws in connection with the sale of the Interests.

 

		Section
                          12.	Sale,
Assignment, Transfer or other Disposition.

 

12.1       Prohibited
Transfers. Except as approved by the unanimous consent of the Members, no Member shall Transfer all or any part of its Interest,
whether legal or beneficial, in the Company, and any attempt to so Transfer such Interest (and such Transfer) shall be null and
void and of no effect.

 

12.2       Admission
of Transferee; Partial Transfers. Notwithstanding anything in this Section 12 to the contrary and except as provided
in Section 4.2(b) and/or Section 4.7, no Transfer of Interests in the Company shall be permitted unless the Transfer
is only a pledge of the economic interests of the transferor or the potential transferee is admitted as a Member under this Section
12.2:

 

    	 	21	 

     

    

  

(a)        If
a Member Transfers all or any portion of its Interest in the Company, such transferee may become a Member if (i) such transferee
executes and agrees to be bound by this Agreement, (ii) the transferor and/or transferee pays all reasonable legal and other fees
and expenses incurred by the Company in connection with such assignment and substitution and (iii) the transferor and transferee
execute such documents and deliver such certificates to the Company and the remaining Members as may be required by applicable
law or otherwise advisable; and

 

(b)        Notwithstanding
the foregoing, any Transfer or purported Transfer of any Interest, whether to another Member or to a third party, shall be of no
effect and void ab initio, and such transferee shall not become a Member or an owner of the purportedly transferred Interest,
if the Manager determines in its sole discretion that:

 

(i)       the
Transfer would require registration of any Interest under, or result in a violation of, any federal or state securities laws;

 

(ii)       the
Transfer would result in a termination of the Company under Code Section 708(b);

 

(iii)       as
a result of such Transfer the Company would be required to register as an investment company under the Investment Company Act of
1940, as amended, or any rules or regulations promulgated thereunder;

 

(iv)       if
as a result of such Transfer the aggregate value of Interests held by “benefit plan investors” including at least one
benefit plan investor that is subject to ERISA, could be “significant” (as such terms are defined in U.S. Department
of Labor Regulation 29 C.F.R. 2510.3-101(f)(2)) with the result that the assets of the Company could be deemed to be “plan
assets” for purposes of ERISA;

 

(v)       the
Members have not unanimously approved such Transfer.

 

The Manager may require
the provision of a certificate as to the legal nature and composition of a proposed transferee of an Interest of a Member and from
any Member as to its legal nature and composition and shall be entitled to rely on any such certificate in making such determinations
under this Section 12.2.

 

12.3       Withdrawals.
Each of the Members does hereby covenant and agree that it will not withdraw, resign, retire or disassociate from the Company,
except as a result of a Transfer of its entire Interest in the Company permitted under the terms of this Agreement and that it
will carry out its duties and responsibilities hereunder until the Company is terminated, liquidated and dissolved under Section
13. No Member shall be entitled to receive any distribution or otherwise receive the fair market value of its Interest in compensation
for any purported resignation or withdrawal not in accordance with the terms of this Agreement.

 

    	 	22	 

     

    

  

		Section
                          13.	Dissolution.

 

13.1     Limitations.
The Company may be dissolved, liquidated and terminated only pursuant to the provisions of this Section 13, and, to the
fullest extent permitted by law but subject to the terms of this Agreement, the parties hereto do hereby irrevocably waive any
and all other rights they may have to cause a dissolution of the Company or a sale or partition of any or all of the Company’s
assets.

 

13.2     Exclusive
Events Requiring Dissolution. The Company shall be dissolved only upon the earliest to occur of the following events (a “Dissolution
Event”):

 

(a)       the
expiration of the specific term set forth in Section 2.5;

 

(b)       at
any time at the election of all the Members in writing;

 

(c)       at
any time there are no Members (unless otherwise continued in accordance with the Act); or

 

(d)       the
entry of a decree of judicial dissolution pursuant to Section 18-802 of the Act.

 

13.3     Liquidation.
Upon the occurrence of a Dissolution Event, the business of the Company shall be continued to the extent necessary to allow an
orderly winding up of its affairs, including the liquidation of the assets of the Company pursuant to the provisions of this Section
13.3, as promptly as practicable thereafter, and each of the following shall be accomplished:

 

(a)       The
Manager shall cause to be prepared a statement setting forth the assets and liabilities of the Company as of the date of dissolution,
a copy of which statement shall be furnished to all of the Members.

 

(b)       The
property and assets of the Company shall be liquidated or distributed in kind under the supervision of the Manager as promptly
as possible, but in an orderly, businesslike and commercially reasonable manner.

 

(c)       To
the extent that an asset is to be distributed in kind, such asset shall be deemed to have been sold at its fair market value on
the date of distribution, and the amount of the distribution shall be considered to be such fair market value of the asset.

 

(d)       The
proceeds of sale and all other assets of the Company shall be applied and distributed as follows and in the following order of
priority:

 

(i)       to
the satisfaction of the debts and liabilities of the Company (contingent or otherwise) and the expenses of liquidation or distribution
(whether by payment or reasonable provision for payment), other than liabilities to Members or former Members for distributions;

 

    	 	23	 

     

    

  

(ii)       to
the satisfaction of loans made pursuant to Section 5.2(b) in proportion to the outstanding balances of such loans at the
time of payment;

 

(iii)       the
balance, if any, to the Members in accordance with Section 5.1.

 

13.4       Continuation
of the Company. Notwithstanding anything to the contrary contained herein, the death, retirement, resignation, expulsion, bankruptcy,
dissolution or removal of a Member shall not in and of itself cause the dissolution of the Company, and the Members are expressly
authorized to continue the business of the Company in such event, without any further action on the part of the Members.

 

Section
14.          Limited Liability. Except as otherwise
expressly provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise,
shall be the debts, obligations and liabilities solely of the Company, and neither the Member nor the Special Members nor any Independent
Manager shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member,
Special Member or Independent Manager of the Company.

 

Section
15.          Indemnification.

 

15.1.       Exculpation
of Members. To the fullest extent permitted by applicable law, no Member, Manager, representative or officer of the Company,
nor any Special Member nor any Independent Manager shall be liable to the Company or to the other Members for damages or otherwise
with respect to any actions or failures to act taken or not taken relating to the Company, except to the extent any related loss
results from fraud, gross negligence or willful or wanton misconduct on the part of such Member, Manager, representative or officer
or the willful breach of any obligation under this Agreement.

 

15.2       Indemnification
by Company. The Company hereby indemnifies, holds harmless and defends the Members, the Manager, the Special Members, the Independent
Manager, the officers and each of their respective agents, officers, directors, members, managers, partners, shareholders and employees
from and against any loss, expense, damage or injury suffered or sustained by them (including but not limited to any judgment,
award, settlement, reasonable attorneys’ fees and other costs or expenses incurred in connection with the defense of any
actual or threatened action, proceeding or claim) by reason of or arising out of (i) their activities on behalf of the Company
or in furtherance of the interests of the Company, including, without limitation, the provision of guaranties to third party lenders
in respect of financings relating to the Company or any of its assets (but specifically excluding from such indemnity by the Company
any so called “bad boy” guaranties or similar agreements which provide for recourse as a result of failure to comply
with covenants, willful misconduct or gross negligence), (ii) their status as Members, representatives, Manager, employees or officers
of the Company, or (iii) the Company’s assets, property, business or affairs (including, without limitation, the actions
of any officer, director, member or employee of the Company), if the acts or omissions were not performed or omitted fraudulently
or as a result of gross negligence or willful or wanton misconduct by the indemnified party or as a result of the willful breach
of any obligation under this Agreement by the indemnified party. For the purposes of this Section 15.2, officers, directors,
employees and other representatives of Affiliates of a Member who are functioning as representatives of such Member in connection
with this Agreement shall be considered representatives of such Member for the purposes of this Section 15. Reasonable expenses
incurred by the indemnified party in connection with any such proceeding relating to the foregoing matters shall be paid or reimbursed
by the Company in advance of the final disposition of such proceeding upon receipt by the Company of (x) written affirmation by
the Person requesting indemnification of its good faith belief that it has met the standard of conduct necessary for indemnification
by the Company and (y) a written undertaking by or on behalf of such Person to repay such amount if it shall ultimately be determined
by a court of competent jurisdiction that such Person has not met such standard of conduct, which undertaking shall be an unlimited
general obligation of the indemnified party but need not be secured.

 

    	 	24	 

     

    

  

15.3        General
Indemnification by the Members.

 

(a)       Notwithstanding
any other provision contained herein, each Member (the “Indemnifying Party”) hereby indemnifies and holds harmless
the other Members, Special Members, Independent Manager, and the Company and each of their subsidiaries and their agents, officers,
directors, members, managers, partners, shareholders and employees (each, an “Indemnified Party”) from and against
all losses, costs, expenses, damages, claims and liabilities (including reasonable attorneys’ fees) as a result of or arising
out of (i) any breach of any obligation of the Indemnifying Party under this Agreement, or (ii) any breach of any obligation by
or any inaccuracy in or breach of any representation or warranty made by the Indemnifying Party, whether in this Agreement or in
any other agreement with respect to the conveyance, assignment, contribution or other transfer of the Property (or interests therein),
assets, agreements, rights or other interests conveyed, assigned, contributed or otherwise transferred to the Company or Property
Owner (collectively, the “Inducement Agreements”).

 

(b)       Except
as otherwise provided herein or in any other agreement, recourse for the indemnity obligation of the Members under this Section
15.3 shall be limited to such Indemnifying Party’s Interest in the Company.

 

(c)       The
indemnities, contributions and other obligations under this Agreement shall be in addition to any rights that any Indemnified Party
may have at law, in equity or otherwise. The terms of this Section 15 shall survive termination of this Agreement.

 

		Section 16.	Mediation and Arbitration of Disputes.

 

16.1       Events
Giving Rise To Mediation or Arbitration. In the event that there is a dispute between the Members as to any action or issue,
or in the event of a deadlock between the Members, then and in such event all of the Members agree, upon the written request of
any one Member, to submit to mediation within ten (10) days of receipt of the request for mediation for the purpose of resolving
the dispute. If mediation is not successful in resolving the dispute, one or more of the Members may elect to have the dispute
submitted to binding arbitration as provided in this Section 16 by giving written notice to each of the Members of such
Member’s election to require arbitration of such dispute. Said written notice shall set forth (i) the action or issue in
dispute and (ii) a brief description of the position of the electing Member with respect to such dispute.

 

    	 	25	 

     

    

  

16.2       Selection
of Arbitrators. Within ten (10) days of the date upon which the notice is sent pursuant to Section 16.1, the Members
shall meet for the purpose of selecting three (3) persons to act as arbitrators for the Company for such dispute. In the event
that the Members are unable to agree upon the selection of the arbitrators at such meeting, then within ten (10) days following
such meeting, the Member(s) requesting such arbitration shall select one (1) person to serve as an arbitrator and the remaining
Member(s) shall select one (1) person to serve as an arbitrator and, within five (5) days of the date of their selection, the two
persons so selected shall select a third person to serve as the third and final arbitrator. In the event that the Member(s) requesting
such arbitration select one such person within such ten (10) day period, but the remaining Member(s) fails to select one such person
within such ten (10) day period, or vice versa, then the person selected shall serve as the sole arbitrator and shall make the
determination required hereunder. In the event the two selected arbitrators are unable to agree upon the identity of the person
to serve as the third and final arbitrator, such determination shall be made by the American Arbitration Association in accordance
with its then-existing rules and regulations. No person selected by the Members and/or by the arbitrators may be employed by, doing
substantial business with or otherwise affiliated with any of the Members (including, but not limited to, acting as an attorney
or accountant for any one or more of the Members or for the Company).

 

16.3       Arbitration
Hearing. Not later than fifteen (15) days following the selection of the third arbitrator, a hearing shall be convened by the
arbitrators at a mutually agreeable site. At such hearing, each Member shall be entitled to present arguments in favor of and call
witnesses in support of such Member’s position with respect to the item in dispute; provided, however, that absent a written
agreement of the Members to the contrary, presentation and/or arguments (including the direct testimony of any witnesses called
by a Member) of each side of the dispute shall be limited to three (3) hours.

 

16.4       Decision
of the Arbitrators/Binding Effect. The arbitrators shall render their decision regarding the matter in dispute within ten (10)
days following the date of the hearing set forth in Section 16.3 hereinabove and said decision shall be final and binding
upon the Members and the Company. Each of the Members hereby covenant and agree that they shall comply with the decision of the
arbitrators.

 

		Section
                          17.	Miscellaneous.

 

17.1       Notices.

 

(a)       All
notices, requests, approvals, authorizations, consents and other communications required or permitted under this Agreement shall
be in writing and shall be (as elected by the Person giving such notice) hand delivered by messenger or overnight courier service,
mailed (airmail, if international) by registered or certified mail (postage prepaid), return receipt requested, or sent via facsimile
(provided such facsimile is immediately followed by the delivery of an original copy of same via one of the other foregoing delivery
methods) addressed to:

 

    	 	26	 

     

    

  

If to MDR:

Attn: Thomas
E. (“Tim”) Messier

Medalist Fund
Manager, Inc.

11 S. 12th
Street, Suite 401

Richmond, Virginia
23219

 

With a copy to:

 

Kaplan Voekler Cunningham &
Frank, PLC

1401 East Cary Street

Richmond, Virginia 23219

Attention:
T. Rhys James, Esquire

 

If to PMI:

 

406 Page Road

Nashville, TN 37205

Attn: Kurt A. Schirm

 

With a copy to:

 

Hirschler Fleischer

2100 East Cary Street

Richmond, Virginia 23223

Attn: David S. Lionberger, Esquire

 

(b)       Each
such notice shall be deemed delivered (a) on the date delivered if by hand delivery or overnight courier service or facsimile,
and (b) on the date upon which the return receipt is signed or delivery is refused or the notice is designated by the postal authorities
as not deliverable, as the case may be, if mailed (provided, however, if such actual delivery occurs after 5:00 p.m. (local time
where received), then such notice or demand shall be deemed delivered on the immediately following business day after the actual
day of delivery).

 

(c)       By
giving to the other parties at least fifteen (15) days written notice thereof, the parties hereto and their respective successors
and assigns shall have the right from time to time and at any time during the term of this Agreement to change their respective
addresses.

 

17.2       Governing
Law. This Agreement and the rights of the Members hereunder shall be governed by, and interpreted in accordance with, the laws
of the State of Delaware. Each of the parties hereto irrevocably submits to the jurisdiction of the Virginia courts and the Federal
courts sitting in the Commonwealth of Virginia and agree that all matters involving this Agreement shall be heard and determined
in such courts. Each of the parties hereto waives irrevocably the defense of inconvenient forum to the maintenance of such action
or proceeding.

 

    	 	27	 

     

    

  

17.3       Successors.
This Agreement shall be binding upon, and inure to the benefit of, the parties and their successors and permitted assigns. Except
as otherwise provided herein, any Member who Transfers its Interest as permitted by the terms of this Agreement shall have no further
liability or obligation hereunder, except with respect to claims arising prior to such Transfer.

 

17.4       Pronouns.
Whenever from the context it appears appropriate, each term stated in either the singular or the plural shall include the singular
and the plural, and pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine
and neuter.

 

17.5       Table
of Contents and Captions Not Part of Agreement. The table of contents and captions contained in this Agreement are inserted
only as a matter of convenience and in no way define, limit or extend the scope or intent of this Agreement or any provisions hereof.

 

17.6       Severability.
If any provision of this Agreement shall be held invalid, illegal or unenforceable in any jurisdiction or in any respect, then
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired,
and the Members shall use their best efforts to amend or substitute such invalid, illegal or unenforceable provision with enforceable
and valid provisions which would produce as nearly as possible the rights and obligations previously intended by the Members without
renegotiation of any material terms and conditions stipulated herein.

 

17.7       Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same instrument.

 

17.8       Entire
Agreement and Amendment. This Agreement and the other written agreements described herein between the parties hereto entered
into as of the date hereof, constitute the entire agreement between the Members relating to the subject matter hereof. In the event
of any conflict between this Agreement or such other written agreements, the terms and provisions of this Agreement shall govern
and control.

 

17.9       Further
Assurances. Each Member agrees to execute and deliver any and all additional instruments and documents and do any and all acts
and things as may be necessary or expedient to effectuate more fully this Agreement or any provisions hereof or to carry on the
business contemplated hereunder.

 

17.10       No
Third-Party Rights. The provisions of this Agreement are for the exclusive benefit of the Members, the Special Members and
the Company, and no other party (including, without limitation, any creditor of the Company) shall have any right or claim against
any Member or Special Member by reason of those provisions or be entitled to enforce any of those provisions against any Member
or Special Member.

 

17.11       Incorporation
by Reference. Every Exhibit attached to this Agreement is incorporated in this Agreement by reference.

 

    	 	28	 

     

    

  

17.12       Remedies
Cumulative. The rights and remedies given in this Agreement and by law to a Member shall be deemed cumulative, and the exercise
of one of such remedies shall not operate to bar the exercise of any other rights and remedies reserved to a Member under the provisions
of this Agreement or given to a Member by law. In the event of any dispute between the parties hereto, the prevailing party shall
be entitled to recover from the other party reasonable attorney’s fees and costs incurred in connection therewith.

 

17.13       No
Waiver. One or more waivers of the breach of any provision of this Agreement by any Member shall not be construed as a waiver
of a subsequent breach of the same or any other provision, nor shall any delay or omission by a Member to seek a remedy for any
breach of this Agreement or to exercise the rights accruing to a Member by reason of such breach be deemed a waiver by a Member
of its remedies and rights with respect to such breach.

 

17.14       Limitation
On Use of Names. Notwithstanding anything contained in this Agreement or otherwise to the contrary, each Member as to itself
agrees that neither it nor any of its Affiliates, agents, or representatives is granted a license to use or shall use the name
of the other under any circumstances whatsoever, except such name may be used in furtherance of the business of the Company but
only as and to the extent unanimously approved by the Members.

 

17.15      Publicly
Traded Partnership Provision. Each Member hereby severally covenants and agrees with the other Members for the benefit of such
Members, that (i) it is not currently making a market in Interests in the Company and will not in the future make such a market
and (ii) it will not Transfer its Interest on an established securities market, a secondary market or an over-the-counter market
or the substantial equivalent thereof within the meaning of Code Section 7704 and the Regulations, rulings and other pronouncements
of the U.S. Internal Revenue Service or the Department of the Treasury thereunder. Each Member further agrees that it will not
assign any Interest in the Company to any assignee unless such assignee agrees to be bound by this Section and to assign
such Interest only to such Persons who agree to be similarly bound.

 

17.16       Public
Announcements. No Member nor any of its Affiliates shall, without the prior approval of the other Members, issue any press
releases or otherwise make any public statements with respect to the Company or the transactions contemplated by this Agreement,
except as may be required by applicable law or regulation or by obligations pursuant to any listing agreement with any national
securities exchange so long as such Member or such Affiliate has used reasonable efforts to obtain the approval of the other Members
prior to issuing such press release or making such public disclosure.

 

17.17      Uniform Commercial
Code. The interest of each Member in the Company shall be a “certificated security” governed by Article 8 of the
Delaware UCC and the UCC as enacted in the Commonwealth of Virginia (the “Virginia UCC”), including, without
limitation, (i) for purposes of the definition of a “security” thereunder, the interest of each Member in the Company
shall be a security governed by Article 8 of the Delaware UCC and the [New York] UCC and (ii) for purposes of the definition of
a “certificated security” thereunder.

 

    	 	29	 

     

    

 

17.18       No
Construction Against Drafter. This Agreement has been negotiated and prepared by the Members and their respective attorneys
and, should any provision of this Agreement require judicial interpretation, the court interpreting or construing such provision
shall not apply the rule of construction that a document is to be construed more strictly against one party.

 

    	 	30	 

     

    

  

IN WITNESS WHEREOF, the Members have executed
this Limited Liability Company Agreement as of the date set forth above.

 

 

	THE COMPANY:	MDR Greensboro HI TRS, LLC
	 	 	 	 
	 	By:	Medalist Diversified Holdings, LP
	 	 	a Delaware limited partnership
	 	Its:	Manager
	 	 	 	 
	 	 	By:	Medalist Diversified REIT, Inc.,
	 	 	 	a Maryland corporation
	 	 	Its:	General Partner
	 	 	 	 
	 	 	 	By: /s/William R. Elliot
	 	 	 	Name:   William R. Elliot
	 	 	 	Its:        Co-President

 

	MEMBERS:	MEDALIST DIVERSIFIED HOLDINGS, LP
	 	 	 
	 	By:	Medalist Diversified REIT, Inc.
	 	 	a Maryland corporation
	 	Its:	General Partner
	 	 	 
	 	 	By: /s/ William R. Elliot
	 	 	Name: William R. Elliot
	 	 	Its: Co-President
	 	 	 
	 	PETER MUELLER, INC.
	 	a Virginia corporation
	 	 	 
	 	By:	 
	 	Name:	Kurt A. Schirm
	 	Its:	President

 

 

    	 	31	 

     

    

  

IN WITNESS WHEREOF, the Members have executed
this Limited Liability Company Agreement s of the date set forth above.

 

	THE COMPANY:	MDR GREENSBORO HI TRS, LLC
	 	 	 	 
	 	By:	Medalist Diversified Holdings, L.P.
	 	 	a Delaware limited partnership
	 	Its:	Manager
	 	 	 	 
	 		By:	Medalist Diversified REIT, Inc.
	 	 	 	a Maryland corporation
	 		Its:	General Partner 

 

	 	 	 	By:	 
	 	 	 	Name: William R. Elliot
	 	 	 	Its: Co-President

 

	MEMBERS:	MEDALIST DIVERSIFIED HOLDINGS, L.P.
	 	 	 
	 	By:	Medalist Diversified REIT, Inc.
	 	 	a Maryland corporation
	 	Its:	General Partner

 

	 	 	 	By:	 
	 	 	 	Name: William R. Elliot
	 	 	 	Its: Co-President

 

	 	PETER MUELLER, INC.  
	 	a Virginia corporation  
	 	By: 	/s/Kurt A. Schirm 
	 	Its: 	President 

 

Signature Page to Limited Liability Company
Agreement

of

MDR Greensboro HI TRS, LLC

 

    	 	32	 

     

    

 

Exhibit A

 

Capital Contributions and Percentage
Interests

 

	Member Name	 	Capital Contribution	 	 	Percentage Interest	 
	 	 	 	 	 	 	 
	Medalist Diversified Holdings, LP	 	$	[•]	 	 	 	[64.0	]%
	 	 	 	 	 	 	 	 	 
	Peter Mueller, Inc.	 	$	[•]	 	 	 	[36.0	]%Exhibit 10.21

 

REAL ESTATE PURCHASE AND SALE AGREEMENT

 

THIS REAL ESTATE
PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into as of this 26th day of
February, 2018 (the “Effective Date”), by and between COF NORTH, LLC, a Virginia limited liability
company (“COF”), and COF NORTH II, LLC, a Virginia limited liability company (“COF
II”, and together with COF collectively, the “Seller”); and MEDALIST DIVERSIFIED HOLDINGS,
L.P., a Delaware limited partnership (the “Buyer”).

 

RECITALS

 

WHEREAS, COF owns certain
real property and improvements commonly known as the Hanover Square North Shopping Center, and located in Mechanicsville, Hanover
County, Virginia (the “Shopping Center”).

 

WHEREAS, COF II owns
certain real property consisting of an outparcel adjacent to the Shopping Center.

 

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

 

AGREEMENT

 

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

 

ARTICLE 1

SALE OF PROPERTY

 

1.1          Property
To Be Sold. Subject to the terms and provisions hereof, Seller agrees to sell
to Buyer, and Buyer agrees to purchase from Seller, upon the terms and conditions of this Agreement:

 

1.1.1       All
of the land described and/or shown on Exhibit A attached hereto, together with all privileges, rights, easements
and appurtenances belonging to such land, including without limitation, all right, title and interest (if any) of Seller in and
to any streets, alleys, passages, and other rights-of-way or appurtenances included in, adjacent to or used in connection with
such land and all right, title and interest (if any) of Seller in all mineral and development rights appurtenant to such land (collectively,
the “Land”).

 

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

 

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

 

    	 	1	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.3          Purchase
Price. The purchase price for the Property (the “Purchase Price”) shall be Twelve Million One Hundred
Seventy-Three Thousand and 00/100 Dollars ($12,173,000.00), allocated as follows:

 

	Shopping Center	 	$	11,850,000.00	 
	 	 	 	 	 
	Undeveloped outparcel	 	$	250,000.00	 
	 	 	 	 	 
	Tenant improvements and lease concessions for Kid to Kid Lease	 	$	73,000.00	 
	 	 	 	 	 
	TOTAL:	 	$	12,173,000.00	 

 

    	 	2	 

     

    

 

1.4          The
Purchase Price shall be paid to Seller by Buyer on the Closing Date (as defined below), plus or minus all adjustments and/or credits
as set forth herein, by wire transfer of immediately available federal funds.

 

1.5          The
Buyer’s obligation to pay the $73,000.00 allocated to the Purchase Price for tenant improvements and lease concessions described
in Section 1.3 shall be contingent on Seller entering into an executed lease (the “Kid to Kid Lease”)
with Kid to Kid children’s closing store for approximately 3,600 rentable square feet in the Shopping Center upon such terms
and conditions reasonably acceptable to Buyer, including but not limited to the term, guaranties, base rent, CAM and tax provisions.
In the event that Seller fails to obtain the fully-executed Kid to Kid Lease on or before the expiration of the Due Diligence Period
(as defined below), Buyer shall have the option to (i) proceed to Closing with a reduction in the Purchase Price equal to $73,000.00,
or (ii) terminate this Agreement and receive a refund of the Deposit.

 

1.6          Deposit
and Escrow.

 

1.6.1       Within
three (3) Business Days after the Effective Date, Buyer shall deliver to GRS Global, Attn: Linda Morris, located at 901 E. Byrd
Street, Suite 1100, Richmond, Virginia 23219, Telephone: (804) 486-9465, E-mail: lmorris@grs-global.com (“Escrow
Holder”) an earnest money deposit in the amount of Fifty Thousand and No/100 Dollars ($50,000.00) (together with
any interest thereon, the “Initial Deposit”, and together with the Additional Deposit (defined below),
if made, and any interest earned thereon, shall be referred to collectively as the “Deposit”). The Deposit
shall be held in an insured, interest-bearing account with interest accruing for the benefit of the party entitled to the Deposit
pursuant to the terms of this Agreement. The Escrow Holder may conclusively rely upon and act in accordance with any certificate,
instructions, notice, letter, e-mail, facsimile and/or other written instrument believed to be genuine and to have been signed
or communicated by the proper party or parties.

 

1.6.2       The
Deposit shall be applied to the Purchase Price if the Closing occurs. After the expiration of the Due Diligence Period, the Deposit
shall be nonrefundable to Buyer except as otherwise provided herein, including, without limitation, unless escrow fails to close
due to Seller’s breach or default under this Agreement, a failure of a representation or warranty by Seller to be true and
correct as of the Closing or due to the failure of a condition precedent set forth in Section 5.2, and shall constitute liquidated
damages to Seller if escrow fails to close solely as a result of Buyer’s default as provided in Section 6.1 below. In the
event Buyer shall elect to terminate this Agreement during the Due Diligence Period, the Deposit shall be returned to Buyer as
provided in Section 3.6 below.

 

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

 

    	 	3	 

     

    

 

ARTICLE 2

TITLE AND SURVEY

 

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

 

2.2          Review
of the Preliminary Report, Survey and UCC Searches; Objection; Approval or Termination. On or before the date that
is ten (10) days prior to the expiration of the Due Diligence Period with respect to the Preliminary Report, Buyer may deliver
to Seller a notice or notices (each, a “Title Objection Notice”) setting forth (i) any matters
shown on the Preliminary Report, or Survey, as applicable, to which Buyer objects; (ii) any modifications, supplements and/or
other modifications of the legal description, description of exceptions and/or other matters set forth in the Preliminary Report,
and/or Survey, as applicable; and (iii) any endorsements and/or other affirmative title insurance coverage required by the
Buyer to be included in the Title Policy (as hereinafter defined). Buyer’s failure to give any Title Objection Notice shall
be deemed to constitute Buyer’s approval of all matters disclosed in the Preliminary Report, or Survey as applicable. If
Buyer delivers one or more Title Objection Notice(s), Seller shall have five (5) days from the receipt of Buyer’s such Title
Objection Notice to provide Buyer with written notice of Seller’s election to remove or otherwise cure, to Buyer’s
reasonable satisfaction, any objections on or prior to the Closing (“Seller Response Notice”); provided,
however, and notwithstanding anything to the contrary contained in this Agreement, that Seller shall be obligated to pay and remove
any and all monetary liens affecting the Real Property. Any failure by Seller to provide Seller’s Response Notice shall
be deemed Seller’s election not to cure any objections. If Seller elects or is deemed to have elected not to cure a disapproved
item, then Buyer may either (i) elect to terminate this Agreement; or (ii) waive in writing its prior disapproval of such item
and accept title subject to such previously disapproved item by delivering notice of Buyer’s election to Seller within five
(5) days after the receipt of the Seller Response Notice. If Buyer fails to deliver its notice of election to terminate this Agreement
or waive its prior disapproval as provide in clauses (i) and (ii) above within such five (5) day period, Buyer shall be deemed
to have waived its disapproval. If this Agreement is terminated pursuant to this Section 2.2, the provisions of Section 3.6 shall
apply.

 

2.3          Required
Title Condition.  Title to the Property shall be conveyed to Buyer subject only to the following matters: (a) current,
non-delinquent real estate taxes and assessments; (b) the matters set forth in the Preliminary Report which Buyer has approved
or been deemed to have approved; (c) the Leases; (d) laws, ordinances and governmental regulations (including, but not limited
to building, zoning, land use, and any subdivision ordinances and regulations) affecting the Property; (e) matters which would
be disclosed by an accurate survey or inspection of the Property; and (f) any other matters approved in writing by Buyer,
in its sole and absolute discretion (collectively, the “Required Title Condition”).

 

    	 	4	 

     

    

 

ARTICLE 3

INSPECTION AND DUE
DILIGENCE PERIOD

 

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

 

3.2          Due
Diligence Period. Buyer shall have until 5:00 pm Eastern time on the day which is forty-five (45) days after the Effective
Date (the “Due Diligence Period”) to conduct such due diligence review of the Property, all of the items
to be furnished by Seller to Buyer pursuant to Section 3.3 below and all records and other materials related thereto as Buyer
deems appropriate in its sole and absolute discretion. Notwithstanding the foregoing, Buyer shall have the option to extend the
Due Diligence Period for one (1) additional period of ten (10) days (the “Extension Option”) by providing
written notice to Seller of Buyer’s exercise of its Extension Option on or before the date on which the Due Diligence Period
was to expire.

 

3.3          Items
to be Provided by Seller. To the extent not previously delivered to Buyer, Seller shall deliver to Buyer all of
the items specified on Exhibit E attached hereto (collectively, the “Property Information”)
within three (3) Business Days after the Effective Date to the extent such items are in Seller’s (or its affiliates’
or Property Manager’s) possession or control. Except as otherwise expressly set forth in Section 4.1, Seller makes no representations
or warranties of any kind with regard thereto. Buyer agrees not to disclose such non-public Property Information, or any of the
provisions, terms or conditions thereof, to any party outside of Buyer’s organization other than its legal counsel, lenders,
investors, surveyor, title company, broker, accountants, consultants, officers, partners, directors, members and shareholders.
Buyer’s obligations under this Section 3.3 shall survive any termination of this Agreement.

 

3.4          Termination
of Property Contracts. Prior to the expiration of the Due Diligence Period, Buyer shall notify Seller of any Property
Contract which Buyer wishes to retain and assume as of the Closing, in Buyer’s sole and absolute discretion. Seller shall
terminate all other Property Contracts at Seller’s sole cost and expense; provided, however, that if any such Property Contract
does not permit Seller to terminate same as of the Closing Date, Buyer shall assume all obligations thereunder until the effective
date of the termination, but shall have no liability with regard to events occurring prior to the Closing Date. If Buyer does not
provide such notice to Seller, Buyer shall be deemed to have elected to assume all Property contracts.

 

3.5          Buyer’s
Possible Early Termination. Buyer shall have the right to approve, in Buyer’s sole and absolute discretion, the Property,
the Property Information, the Preliminary Report, the Survey, or any other matter whatsoever regarding the Property. On or before
the expiration of the Due Diligence Period, Buyer may provide written notice to Seller (i) that Buyer wishes to proceed to Closing
(an “Approval Notice”); (ii) disapproving the Property (“Disapproval Notice”),
or (iii) exercising Buyer’s Extension Option. Buyer’s failure to provide an Approval Notice or a Disapproval Notice
prior to the expiration of the Due Diligence Period (as may have been extended pursuant to Section 3.2) shall be deemed Buyer’s
disapproval of the Property. Upon the giving of a Disapproval Notice or the deemed disapproval of the Property, this Agreement
shall automatically terminate and the provisions of Section 3.6 shall apply. If Buyer delivers an Approval Notice, Buyer shall
deposit, within three (3) Business Day after expiration of the Due Diligence Period, with Escrow Holder an additional deposit in
the amount of Fifty Thousand and 00/100 Dollars ($50,000.00) (the “Additional Deposit”).

 

    	 	5	 

     

    

 

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

 

ARTICLE 4

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

4.1          Seller’s
Representations. Each of COF and COF II warrants and represents to Buyer with respect to that portion of the Property
owned by COF or COF II, as the case may be, that the following matters are true and correct as of the Effective Date and the Closing
Date:

 

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

 

4.1.2       Seller
has good and marketable title to the Property. Seller is not a party to any outstanding right of first refusal, right of reverter
or option to purchase relating to the Property or any interest therein. Subject to the Leases, Seller has enjoyed the continuous
and uninterrupted quiet possession, use and operation of the Property, without material complaint or objection by any person during
the term of Seller’s ownership of the Property.

 

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

 

    	 	6	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4.1.11     To
the best of Seller’s knowledge, Seller has delivered to Buyer copies of all Property Contracts to which Seller is a party
and that are in Seller’s possession or control with respect to the ownership, use and/or operation of the Property. Seller
has not, within the last year, received any written notice of any default under any Property Contract or other such contract or
agreement that has not been cured or waived.

 

    	 	7	 

     

    

 

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

 

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

 

4.1.14     The
Rent Roll attached hereto as Exhibit C contains a list of all Leases affecting the Property as of the Effective Date.
The Rent Roll is a copy of the rent roll that Seller relies upon and uses in the ordinary course of its business, and Seller has
no current actual knowledge that the Rent Roll is untrue, inaccurate and incomplete in any material respect. The copies of the
Leases (and other agreements with tenants) delivered or furnished and made available by Seller to Buyer pursuant to this Agreement
constitute all of the Leases to which Seller is a party relating to the Property.

 

4.1.15     Seller
has no actual knowledge, and has not received any written notice, that any “hazardous” or “toxic materials or
pollutants” have contaminated or have been released upon the Property (nor does Seller have any current actual knowledge
of any such contamination, release or use or storage of any “hazardous” or “toxic materials or pollutants”
occurring on the Property at any time during Seller’s ownership thereof), as such terms are defined in any federal, state
or local rule or regulation pertaining to environmental regulation, clean-up, contamination or disclosure. Seller has not received
any written notice of the existence of any Mold Condition on the Property. “Mold” means mold, mildew,
fungus or other potentially dangerous organisms. “Mold Condition” means the presence or suspected presence
of Mold or any condition(s) that reasonably can be expected to give rise to or indicate the presence of Mold, including observed
or suspected instances of water damage or intrusion, the presence of wet or damp wood, cellulose wallboard, floor coverings or
other materials, discoloration of walls, ceilings or floors, or any notice from a governmental agency of complaints regarding the
indoor air quality at the Property.

 

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

 

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

 

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

 

    	 	8	 

     

    

 

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

 

4.2.4       There
are no judgments outstanding against Buyer or petitions, suits, claims, causes of action or moratoria or other proceedings pending
or threatened against Buyer before any court or other governmental, administrative, regulatory, adjudicatory, or arbitrational
body of any kind, which if decided adversely to Buyer would adversely affect Buyer’s ability to perform its obligations under
this Agreement.

 

4.3          Survivability
of Representations and Warranties. The representations and warranties of Seller and Buyer set forth in this Agreement
shall not be deemed to be merged into or waived by the instruments of Closing, but shall survive the Closing; provided, however,
that any action, suite or proceeding with respect to the truth, accuracy or completeness of such representations and warranties
shall be commenced, if at all, on or before the date which is twelve (12) months after the Closing and, if not commenced on or
before such date, thereafter such representations and warranties shall be void and of no force or effect.

 

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

 

4.5          Leasing
& Other Activities Prior to Closing.

 

4.5.1       Leasing
Activities. Seller shall not, from the Effective Date, enter into any modification or amendment to any Leases except for
the Kid to Kid Lease.

 

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

 

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

 

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

 

    	 	9	 

     

    

 

ARTICLE 5

CLOSING

 

5.1          Closing.
“Close of Escrow” or “Closing” means the date Escrow Holder receives all of
Buyer and Seller’s deliverables set forth below. The Closing shall take place on the Closing Date set forth in Section 1.7,
as the same may be extended, provided all conditions to the Closing have been satisfied or duly waived as provided herein.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5.4.1       Special
warranty deeds (the “Deeds”) duly executed and acknowledged by each Seller substantially in the form
set forth on Exhibit F.

 

    	 	10	 

     

    

 

5.4.2       A
bill of sale, general assignment and assignment and assumption of leases (the “Bill of Sale and Assignment”)
substantially in the form set forth on Exhibit G.

 

5.4.3       Originals
of the Leases to the extent in Seller’s possession, or in the alternative copies of the same.

 

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

 

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

 

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

 

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

 

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

 

5.4.9       No
later than three (3) Business Days prior to the Closing, (a) estoppel certificates and subordination, non-disturbance and attornment
agreements (“SNDAs”) from a majority of the tenants occupying the Property. In addition, Seller shall
make commercially reasonable efforts to obtain SNDAs from specific tenants requested by Tenant’s lender. The estoppel certificates
shall be on a form reasonably acceptable to Buyer and its lender (or on such other form as may be required by lender or a Tenant’s
lease) and certified to such parties determined by Buyer in its reasonable discretion; and in addition, no later than three (3)
Business Days prior to the date on which Seller intends to distribute the estoppel certificates to the tenants for completion,
Seller shall deliver the draft estoppel certificates to Buyer for Buyer’s review and approval, which approval shall not be
unreasonably withheld. The SNDAs shall be on a form substantially reasonably acceptable to Buyer and its lender (or on such other
form as may be required by a Tenant’s lease).

 

5.4.10     An
estoppel certificate dated no earlier than thirty (30) days prior to Closing, in form and substance reasonably acceptable to Buyer,
from all parties to any reciprocal easement agreements, declarations of covenants, conditions, and restrictions, or similar agreements.

 

    	 	11	 

     

    

 

5.4.11     Reliance
letters addressed to Buyer and its lender with respect to any and all environmental reports, property condition reports and appraisals
obtained by Seller within the past six (6) months; provided, however Seller’s obligation to deliver such reliance letters
shall be at no cost or expense to Seller.

 

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

 

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

 

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

 

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

 

5.6          Costs,
Prorations and Credits.

 

5.6.1       Closing
Costs. Except as otherwise provided herein, Buyer and Seller shall each pay their own legal fees related to the preparation
of this Agreement and all documents required to settle the transaction contemplated hereby. Buyer shall pay (i) all costs
associated with its investigation of the Property, including the cost of appraisals, architectural, engineering, Survey, credit
and environmental reports; (ii) all title insurance premiums and title examination costs; (iii) all escrow charges and (iv)
all state and local grantee’s taxes to be paid pursuant to Va. Code § 58.1-801 and recording fees. Seller shall pay
(i) the cost of preparing the Deeds; and (ii) all state and local grantor’s taxes to be paid pursuant to Va. Code §
58.1-802. All other customary purchase and sale closing costs shall be paid by Seller or Buyer in accordance with the custom in
the jurisdiction where the Property is located.

 

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

 

(a)          Current
Rents. All collected, current rents, including payments for taxes, utilities, common area maintenance, operating expenses,
or insurance, or additional charges of any other nature (collectively “CAM”), based on a rental statement
prepared by Seller and approved by Buyer.

 

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

 

    	 	12	 

     

    

 

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

 

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

 

(iii)        At
least five (5) Business Days prior to Closing, Seller shall prepare for Buyer’s reasonable approval an estimated
proration statement reconciling the amounts paid by the Tenants in respect of CAM and the amounts actually paid by Seller
therefor. Such statement shall set forth the parties’ estimate of the Buyer’s closing credit (if any), or of the
amount to which Seller might be entitled with respect to its period of ownership (if any). If any of the aforesaid prorations
cannot be definitely calculated accurately as of the Closing, then they shall be recalculated as soon as practicable, but no
more than sixty (60) days, after the Closing. As soon as is practicable, but no more than sixty (60) days after the Closing,
Seller shall conduct a final reconciliation of any such overpayment or underpayment under the Leases to the date of Closing
and shall provide such final reconciliation to Buyer, together with all relevant back-up, paid invoices, receipts, and other
materials; and if such final reconciliation indicates that Buyer was entitled to a larger credit with respect to the same
than Buyer received at Closing, Seller shall immediately remit the shortfall to Buyer.

 

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

 

    	 	13	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

5.6.3       Credits.

 

(a)          Security
Deposits. The Buyer shall receive at credit at Closing from the Seller in the amount of the sum or the Tenant Deposits.

 

    	 	14	 

     

    

 

5.6.4       Re-prorations.
At Closing, the amount of prorations and adjustments as aforesaid shall be determined or estimated to the extent practicable, and
monetary adjustment shall be made between Seller and Buyer. As the amounts of the respective items become finally ascertained,
but in no event later than sixty (60) days after the Closing Date, further adjustment shall be promptly made between the parties
in cash.

 

5.6.5       Survival.
The provisions of this Section 5.6 shall survive the Closing.

 

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

 

5.7.1       Recorded
Documents. Submit to the Clerk’s Office the Circuit Court of Hanover, County, Virginia, the Deeds and each other
document to be recorded under the terms of this Agreement or by general usage.

 

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

 

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

 

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

 

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

 

    	 	15	 

     

    

 

ARTICLE 6

TERMINATION AND DEFAULT

 

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

 

6.2          Seller’s
Default.  If the sale contemplated hereby is not consummated because of a material default of Seller, then, so long
as Buyer has performed or tendered performance of all of Buyer’s material obligations in accordance with this Agreement,
and upon written notice from Buyer to Seller, Buyer shall have the right to exercise any of the following remedies:

 

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

 

6.2.2       Treat
this Agreement as being in full force and effect and pursue an action for specific performance to cause Seller to convey the Property
to Buyer pursuant to the terms and conditions of this Agreement; provided, however, Buyer must commence any such actions for specific
performance within sixty (60) days of the Closing Date.

 

6.2.3       Terminate
this Agreement by notice to Seller to that effect, in which event the parties hereto shall have no further obligations hereunder
except those which expressly survive termination hereof, and Buyer shall be entitled to (i) recover the full amount of the Deposit,
and (ii) recover up to $20,000.00 for actual third-party out-of-pocket expenses incurred in connection with Buyer’s inspection
and due diligence investigation of the Property.

 

    	 	16	 

     

    

 

6.2.4       Except
as expressly set forth in this Agreement, Buyer waives any right to pursue any other remedy at law or equity for such default of
Seller, including, without limitation, any right to seek, claim or obtain damages, punitive damages or consequential damages.

 

ARTICLE 7

CASUALTY DAMAGE OR
CONDEMNATION

 

7.1          Casualty.
If the Improvements are damaged by casualty prior to the Closing and the cost for repair is reasonably estimated by Seller to exceed
the sum of $300,000.00, Buyer shall have the option, in Buyer’s sole and absolute discretion, to elect either to:

 

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

 

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

 

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

 

If the
Improvements are damaged by casualty prior to Closing and the cost for repair is reasonably estimated by Seller (as set forth in
this Section 7.1) not to exceed the sum of $300,000.00, then Buyer shall acquire the Property in accordance with Section 7.1(a)
of this Agreement.

 

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

 

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

 

(b)          close
the transaction contemplated by this Agreement.

 

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

 

    	 	17	 

     

    

 

ARTICLE 8

REAL ESTATE COMMISSION

 

8.1          Commissions.
Buyer and Seller each represent to the other that no broker’s or real estate commissions or other fees are or shall be due
in respect to this transaction by reason of any agreement made or which may be alleged to have been made by Buyer or Seller other
than to Commonwealth Commercial Partners, LLC, which has represented Seller in this transaction. Buyer is not represented by a
broker in this transaction. Oral or written notification was provided to both parties regarding brokerage representation prior
to any substantive real estate discussions. At Closing, Seller shall pay a commission totaling two and one quarter percent (2.25%)
of the Purchase Price to Commonwealth Commercial Partners, LLC pursuant to the terms of a separate agreement. Each party agrees
to indemnify and hold harmless the other from and against any and all other claims, demands or the cost or expense thereof, including
reasonable attorney’s fees, arising out of any broker’s commission, fee or other compensation due or alleged to be
due in connection with the transactions contemplated by this Agreement based upon an agreement alleged to have been made or other
action alleged to have been taken by the indemnifying party.

 

ARTICLE 9

MISCELLANEOUS

 

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

 

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

 

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

 

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

 

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

 

9.6          Governing
Law. This Agreement shall be governed by and construed under the internal laws of the Commonwealth of Virginia,
without regard to the principles of conflicts of law. Any legal proceeding, by either party to this Agreement shall be filed in
the appropriate court system in Hanover County, Virginia.

 

    	 	18	 

     

    

 

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

 

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

 

	To Seller:	c/o Commonwealth Commercial
	 	4198 Cox Road, Suite 200
	 	Glen Allen, Virginia 23060
	 	Attention: Mark Claud
	 	Telephone: 804.346.5901
	 	Email: mclaud@commonwealthcommercial.com
	 	 
	And with copy to:	LeClairRyan
	 	919 East Main Street
	 	Twenty-Fourth Floor
	 	Richmond, Virginia 23219
	 	Attention: Katja H. Hill
	 	Facsimile: 804.783.7669
	 	Email: katja.hill@leclairryan.com
	 	 
	To Buyer:	Medalist Diversified Holdings, L.P.
	 	c/o Medalist Properties
	 	11 S. 12th Street, Suite 401
	 	Richmond, VA 23219
	 	Attn: William R. Elliott
	 	Telephone: (804) 344-4434
	 	Email: bill.elliott@medalistprop.com
	 	 
	And with a copy to:	Kaplan Voekler Cunningham & Frank, PLC
	 	1401 E. Cary Street
	 	Richmond, Virginia 23219
	 	Attn:  Zachary Grabill, Esq.
	 	Telephone: (804) 823-4071
	 	Facsimile: (804) 823-4099
	 	E-mail: zgrabill@kv-legal.com

 

    	 	19	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	20	 

     

    

 

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

 

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

 

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

 

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

 

    	 	21	 

     

    

 

9.20       Record
Access and Retention. At Buyer’s request, Seller shall promptly provide to Buyer (at Buyer’s expense) copies
of, or shall provide Buyer reasonable access to, such factual information as may be reasonably requested by Buyer, and in the possession
or control of Seller, or its property manager or accountants, to enable Buyer’s auditor to conduct an audit, in accordance
with Rule 3-14 of Securities and Exchange Commission Regulation S-X, of the income statements of the Property for the year to date
of the year in which Closing occurs plus the two (2) immediately preceding calendar years (provided, however, that other than fees
paid or payable to Seller, a Seller affiliate or a third party for on-site property management, such audit shall not include an
audit of asset management fees internally allocated by Seller (as opposed to paid to a third party) or interest expenses attributable
to the Seller). Buyer shall be responsible for all out-of-pocket costs associated with any such audit. Seller shall reasonably
cooperate (at no cost to Seller) with Buyer’s auditor in the conduct of such audit. In addition, to the extent available
Seller agrees to provide to Buyer or any affiliate of Buyer, if requested by such auditor, historical financial statements for
the Property, including (without limitation) income and balance sheet data for the Property, whether required before or after Closing.
Without limiting the foregoing, (i) Buyer or its designated independent or other auditor may audit Seller’s operating statements
of the Property, at Buyer’s expense, and, to the extent available, Seller shall provide such documentation as Buyer or its
auditor may reasonably request in order to complete such audit, and (ii) Seller shall, to the extent available, furnish to Buyer
such financial and other information as may be reasonably required by Buyer or any affiliate of Buyer to make any required filings
with the Securities and Exchange Commission or other governmental authority. Seller shall maintain its records for use under this
Section 9.20 for a period of not less than twelve (12) months after the Closing Date. The provisions of this Section shall survive
Closing.

 

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

 

    	 	22	 

     

    

 

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

 

	SELLER:	COF NORTH, LLC, a Virginia limited liability company
	 	 	 
	 	By:	/s/
	 	Name:	Mark W. Cling
	 	Title:	Manager
	 	 	 
	 	COF NORTH II, LLC, a Virginia limited liability company
	 	 	 
	 	By:	/s/
	 	Name:	Mark W. Cling
	 	Title:	Manager

 

    	 	23	 

     

    

 

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

 

    	 	24	 

     

    

 

CONSENT OF ESCROW HOLDER

 

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

 

	DATED:__________	 
	 	 	 
	 	By:	 
	 	Its:	 

 

    	 	25	 

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

 

    	 	EXHIBIT A
 1
	 

     

    

 

EXHIBIT B

 

LIST OF PERSONAL PROPERTY

 

None

 

    	 	EXHIBIT B
 1
	 

     

    

 

EXHIBIT C

 

RENT ROLL

 

(see attached)

 

    	 	EXHIBIT C
 1
	 

     

    

 

EXHIBIT D

 

CURRENT PROPERTY CONTRACTS

 

[To be Attached in the Following Format]

 

	Contract	 	Description	 	Date
	Contractor Service Agreement	 	James River Grounds Management	 	10/31/17
	Management Agreement	 	Commonwealth Commercial Partners	 	2/21/2017
	Service Agreement	 	Republic Services	 	9/16/16
	Service Contract	 	Western Pest Services	 	9/16/15

 

    	 	EXHIBIT D
 1
	 

     

    

 

EXHIBIT E

 

PROPERTY INFORMATION

 

		1	Seller's form of lease agreement used at the Property

 

		2	List and copy of all service contracts and equipment leases along with terms and cancellation clauses
(security, landscaping, advertising, etc.).

 

		3	Any property locator or similar agreements (other than agreements with the Property Manager), if
any, pertaining to the marketing and advertisement of the Property for leasing (and payment of commissions in connection therewith),
but only to the extent the same will remain in effect after the Closing.

 

		4	To the extent in Seller’s possession, ad valorem and personal property tax statements for
the current year, and the status of any pending appeal. Copy of real estate tax bills for the past three years.

 

		5	Current operating statements for the Property, and to the extent available and in Seller's possession,
for each of the three years prior to the year in which the Effective Date occurs in which Seller was the owner of the Property.
Include year-to-date operating statements by month, delivered by Seller monthly as soon as available through closing including
the last month post-closing.

 

		6	3 years of insurance loss runs from the insurer. Also, a summary of pending insurance claims and
pending litigation, if any, provided that such summary shall be prepared to Seller's knowledge and Seller makes no representations
or warranties regarding the outcome of such claims or litigation

 

		7	To the extent available and in Seller's possession, guaranties or warranties with respect to the
roof of the Property, if any

 

		8	Copies of any certificates of occupancy and/or other licenses and permits, to the extent available
and in Seller's possession

 

		9	Copy of all leases and occupancy agreements, and all amendments, notices or supplements related
thereto.

 

		10	Current Rent Roll and Certification.  The Rent Roll should show the tenant’s name, suite/unit,
base rent and market rent for space, concessions, tenant improvement allowance, CAM charges, tax charges, lease commencement,
lease expiration. Updated copies should be made available up through closing upon reasonable request from Buyer.

 

    	 	EXHIBIT E
 1
	 

     

    

 

EXHIBIT F

 

FORM OF DEEDS

 

	Prepared by:	Consideration:    $____________
	______________________	Assessed Value:  $___________
	______________________	 
	______________________	 
	______________________	 
	 	Title Insurance Company: ____________

 

Return to:

_________________

_________________

_________________

 

Tax Parcel No.: _______________

 

THIS DEED, made
as of this ____ day of ___________, 2018, is by and between COF NORTH [II], LLC, a Virginia limited liability company
("Grantor"), and _____________ ("Grantee").

 

WITNESSETH:

 

That for and in consideration
of the sum of Ten and 00/100 Dollars ($10.00) cash in hand paid, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Grantor does hereby grant and convey, with SPECIAL WARRANTY, unto the Grantee, the following
described property, to-wit:

 

    	 	EXHIBIT F
 1
	 

     

    

 

SEE EXHIBIT A ATTACHED HERETO

 

AND INCORPORATED HEREIN BY REFERENCE

 

The above-described
property is conveyed subject to the reservations, encumbrances, covenants, conditions, restrictions and easements, if any, duly
of record.

 

IN WITNESS WHEREOF,
Grantor has caused its name to be signed to these presents and sealed the day and year first above written.

 

	 	COF NORTH [II], LLC.	 
	 	a Virginia limited liability company	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

STATE OF _________________,

	CITY/COUNTY OF ______________,	to-wit:

 

I, ____________________________,
a Notary Public in and for said City/County and State, do hereby certify that ____________, whose name is signed to the foregoing
instrument bearing date as of the ____ day of __________, 2018, has acknowledged the same before me in my County and State aforesaid.

 

Given under my hand
and Notarial Seal this ___ day of ____________________, 2018.

 

	 	 	 
	 	Notary Public	 

 

My Commission Expires: _______________

State of _____________________________

 

[SEAL]

 

    	 	EXHIBIT F
 2
	 

     

    

 

EXHIBIT G

 

FORM OF BILL OF SALE
AND ASSIGNMENT

 

BILL OF SALE, ASSIGNMENT AND ASSUMPTION
OF

PERSONAL PROPERTY, CONTRACTS, WARRANTIES
AND LEASES

 

COF
NORTH, LLC and COF NORTH II, LLC, each a Virginia limited liability
company (collectively, the “Grantor”), for and in consideration of the sum of Ten and No/100 Dollars ($10.00)
and other good and valuable consideration to it in hand paid by ______________,
a Delaware limited liability company (“Grantee”), the receipt and sufficiency of which are hereby acknowledged,
has granted, sold, assigned, transferred, conveyed, and delivered and does by these presents grant, sell, assign, transfer, convey
and deliver unto Grantee, all of Grantor’s rights, titles, and interests in and to the following described properties located
in, affixed to, and/or arising or used in connection with the improved property with parking and other amenities (the “Project”)
situated on the land in the County of Hanover, Virginia, more particularly described on Exhibit A, attached hereto
and made a part hereof for all purposes (the “Land” which together with the Project is sometimes hereinafter
called the “Property”):

 

A.           Leases.
All leases set forth on the Rent Roll attached hereto as Exhibit B and made a part hereof for all purposes (the “Leases”).

 

B.           Tangible
Personal Property. All furniture, furnishings, fixtures, equipment, machinery, building materials, and other tangible personal
property owned by Grantor that is now affixed to and/or located on the Property and used in connection with the management, operation,
or repair of the Property (the “Tangible Personal Property”).

 

C.           Contracts.
Any and all service, maintenance, supply or operating contracts, or other agreements, however termed, written or oral, affecting
the use, ownership, maintenance, or operation of all or any part of the Property in effect as of the date hereof (the “Contracts”).

 

D.           Intangible
Property. Any and all rights to the name of the Project, advertising copy and promotional materials used by Grantor in connection
with the Property, intangible property that is used by Grantor in connection with the operation of the Property, including but
not limited to the name “Franklin Square” and any associated logos or trademarks, guaranties, warranties, telephone
exchange numbers, architectural and engineering plans and specifications, and development rights that exist as of the date hereof,
if any (the “Intangible Property”).

 

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

 

    	 	EXHIBIT G
 1
	 

     

    

 

Grantor and Grantee
hereby covenant and agree as follows:

 

(i)          Grantee
accepts the aforesaid assignments as of the date below and Grantee assumes and agrees to be bound by and timely perform, observe,
discharge, and otherwise comply with each and every one of the agreements, duties, obligations, covenants and undertakings upon
the lessor’s part to be kept and performed under the Leases from and after the date hereof and any obligations of Grantor
under the Contracts from and after the date hereof.

 

(ii)         Grantee
hereby agrees to indemnify and hold harmless Grantor from any and all liability, loss, cost, damage or expense (including, without
limitation, reasonable attorneys’ fees) which Grantor incurs under the Leases or Contracts from any and all claims and demands
whatsoever which are asserted against Grantor by reason of any alleged failure of Grantor to perform an obligation or undertaking
under the Leases or Contracts to be performed after the Effective Date. Grantor hereby agrees to indemnify and hold harmless Grantee
from any and all liability, loss, cost, damage or expense (including, without limitation, reasonably attorneys’ fees) which
Grantee incurs under the Leases or Contracts from any and all claims and demands whatsoever which are asserted against Grantee
by reason of any alleged failure of Grantor to perform an obligation or undertaking which was to have been performed under the
Leases or Contracts on or before the Effective Date.

 

(iii)        Except
as aforesaid, this Agreement shall bind and inure to the benefit of the parties hereto and their respective successors, legal representatives
and assigns.

 

(iv)        Grantor
represents and warrants to Grantee that Grantor owns fee simple title to the Tangible Personal Property free from any liens or
encumbrances.

 

(v)         Neither
this Agreement nor any term, provision, or condition hereof may be changed, amended or modified, and no obligation, duty or liability
or any party hereby may be released, discharged or waived, except in a writing signed by all parties hereto.

 

(vi)        Capitalized
but otherwise undefined terms used herein shall have the meanings ascribed to them in that certain Real Estate Purchase and Sale
Agreement dated ________, between Grantor and Medalist Diversified Holdings, L.P., a Delaware limited partnership.

 

[Signatures appear on
the following page]

 

    	 	EXHIBIT G
 2
	 

     

    

 

IN WITNESS WHEREOF, Grantor and Grantee
have executed this Bill of Sale, Assignment of Personal Property, Contracts, Warranties and Leases as of _____________.

 

	GRANTEE:	[BUYER ENTITY],	 
	 	a Delaware limited liability company	 
	 	 	 	 
	 	By:	 	 
	 	 	William R. Elliott	 
	 	 	Authorized Signatory	 
	 	 	 	 
	GRANTOR:	 	 	 
	 	 	 	 
	 	COF NORTH, LLC, a Virginia limited liability company
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name:	 	 
	 	 	 	 
	 	Title:	 	 
	 	 	 	 
	 	COF NORTH II, LLC, a Virginia limited liability company
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name:	 	 
	 	 	 	 
	 	Title:	 	 

 

    	 	EXHIBIT G
 3
	 

     

    

 

Schedule 4.1.12

 

None

 

    Schedule 4.1.12

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