Document:

Exhibit 10.3

 

	
         

         

         

         

         

         

        this
        instrument prepared by

        and when recorded return to:

         

        

        Nelson Mullins Riley & Scarborough
        LLP

        

        100 North Tryon Street, 42nd
        Floor

        

        Charlotte, North Carolina 28202

        

        Attn: D. Shane Gunter, Esq.

         

         

         
	 
	 	(SPACE ABOVE THIS LINE FOR RECORDER’S USE)

 

  

PALMER-MAPLETREE LLC 

(Mortgagor)

 

 

to

 

 

NATIXIS
REAL ESTATE CAPITAL LLC

(Mortgagee)

 

 

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS

AND SECURITY AGREEMENT

 

 

	 	Dated:  	July 28, 2015
	 	 	 
	 	 	 
	 	Property Location:	21 Wilbraham Street, Palmer, Massachusetts
	 	 	Hampden County

 

THIS INSTRUMENT AFFECTS REAL AND PERSONAL
PROPERTY SITUATED IN THE TOWN OF PALMER COUNTY OF HAMPDEN, COMMONWEALTH OF MASSACHUSETTS, KNOWN BY THE STREET ADDRESS OF 21 WILBRAHAM
STREET, PALMER, MASSACHUSETTS.

 

THIS INSTRUMENT IS TO BE FILED AND INDEXED
IN THE REAL ESTATE RECORDS.

 

 

    	 

    	 

    

 

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS

 

AND SECURITY AGREEMENT

 

This MORTGAGE, ASSIGNMENT
OF LEASES AND RENTS AND SECURITY AGREEMENT (this “Security Instrument”), made as of July 28, 2015, by
PALMER-MAPLETREE LLC, a Delaware limited liability company, having an office at 1430 Broadway, Suite 503, New York, New York 10018,
as mortgagor (“Borrower”), to NATIXIS REAL ESTATE
CAPITAL LLC, a Delaware limited liability company, having an address at 1251 Avenue of the Americas, New York, New York
10020, as mortgagee (together with its successors and assigns, hereinafter referred to as “Lender”).

 

Borrower and Lender
have entered into that certain Loan Agreement, dated as of the date hereof (as amended, modified, restated, consolidated, replaced
or supplemented from time to time, the “Loan Agreement”), pursuant to which Lender is making a secured
loan to Borrower in the aggregate original principal amount of $1,750,000.00 (the “Loan”). Capitalized
terms used herein without definition are used as defined in the Loan Agreement. The Loan is evidenced by that certain Promissory
Note, dated the date hereof, made by Borrower to Lender in such principal amount (as the same may be amended, modified, restated,
severed, consolidated, renewed, replaced, or supplemented from time to time, the “Note”).

 

To secure the payment
of the Note and all sums which may or shall become due hereunder or under any of the other documents evidencing, securing or executed
in connection with the Loan (the Note, this Security Instrument, the Loan Agreement and such other documents, as any of the same
may, from time to time, be modified, amended, restated, replaced or supplemented, being hereinafter collectively referred to as
the “Loan Documents”), including (i) the payment of interest and other amounts which would accrue and
become due but for the filing of a petition in bankruptcy (whether or not a claim is allowed against Borrower for such interest
or other amounts in any such bankruptcy proceeding) or the operation of the automatic stay under Section 362(a) of Title 11
of the United States Code (the “Bankruptcy Code”), and (ii) the costs and expenses of enforcing any provision
of any Loan Document (all such sums being hereinafter collectively referred to as the “Debt”), Borrower
hereby irrevocably mortgages, grants, bargains, sells, conveys, transfers, pledges, sets over and assigns, and grants a security
interest, to and in favor of Lender, WITH POWER OF SALE, all of Borrower’s right, title and interest in and to the land described
in Exhibit “A” (the “Premises”), and the buildings, structures, fixtures
and other improvements now or hereafter located thereon (the “Improvements”);

 

TOGETHER WITH, all
right, title, interest and estate of Borrower now owned, or hereafter acquired, in and to the following property, rights, interests
and estates (the Premises, the Improvements, and the property, rights, interests and estates hereinafter described are collectively
referred to herein as the “Property”):

 

(a)all easements,
rights-of-way, strips and gores of land, streets, ways, alleys, passages, sewer rights, water, water courses, water rights and
powers, air rights and development rights, rights to oil, gas, minerals, coal and other substances of any kind or character, and
all estates, rights, titles, interests, privileges, liberties, tenements, hereditaments and appurtenances of any nature whatsoever,
in any way belonging, relating or pertaining to the Premises and the Improvements; and the reversion and reversions, remainder
and remainders, and all land lying in the bed of any street, road, highway, alley or avenue, opened, vacated or proposed, in front
of or adjoining the Premises, to the center line thereof; and all the estates, rights, titles, interests, dower and rights of dower,
curtesy and rights of curtesy, property, possession, claim and demand whatsoever, both at law and in equity, of Borrower of, in
and to the Premises and the Improvements and every part and parcel thereof, with the appurtenances thereto;

 

(b)all machinery,
furniture, furnishings, equipment, computer software and hardware, fixtures (including all heating, air conditioning, plumbing,
lighting, communications and elevator fixtures), inventory, materials, supplies and other articles of personal property and accessions
thereof, renewals and replacements thereof and substitutions therefor, and other property of every kind and nature, tangible or
intangible, owned by Borrower, or in which Borrower has or shall have an interest, now or hereafter located upon the Premises or
the Improvements, or appurtenant thereto, and usable in connection with the present or future operation and occupancy of the Premises
and the Improvements (hereinafter collectively referred to as the “Equipment”), including any leases
of, deposits in connection with, and proceeds of any sale or transfer of any of the foregoing, and the right, title and interest
of Borrower in and to any of the Equipment that may be subject to any “security interest” as defined in the Uniform
Commercial Code, as in effect in the State where the Property is located (the “UCC”), superior in lien
to the lien of this Security Instrument;

 

    	 

    	 

    

 

(c)all awards or
payments, including interest thereon, that may heretofore or hereafter be made with respect to the Premises or the Improvements,
whether from the exercise of the right of eminent domain or condemnation (including any transfer made in lieu of or in anticipation
of the exercise of such right), or for a change of grade, or for any other injury to or decrease in the value of the Premises or
Improvements;

 

(d)all leases and
other agreements or arrangements heretofore or hereafter entered into affecting the use, enjoyment or occupancy of, or the conduct
of any activity upon or in, the Premises or the Improvements, including any extensions, renewals, modifications or amendments thereof
(hereinafter collectively referred to as the “Leases”) and all rents, rent equivalents, moneys payable
as damages (including payments by reason of the rejection of a Lease in a Bankruptcy Proceeding) or in lieu of rent or rent equivalents,
royalties (including all oil and gas or other mineral royalties and bonuses), income, fees, receivables, receipts, revenues, deposits
(including security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration
of whatever form or nature received by or paid to or for the account of or benefit of Borrower or its agents or employees from
any and all sources arising from or attributable to the Premises and/or the Improvements, including all receivables, customer obligations,
installment payment obligations and other obligations now existing or hereafter arising or created out of the sale, lease, sublease,
license, concession or other grant of the right of the use and occupancy of the Premises or the Improvements, or rendering of services
by Borrower or any of its agents or employees, and proceeds, if any, from business interruption or other loss of income insurance
(hereinafter collectively referred to as the “Rents”), together with all proceeds from the sale or other
disposition of the Leases and the right to receive and apply the Rents to the payment of the Debt;

 

(e)all proceeds
of and any unearned premiums on any insurance policies covering the Property, including the right to receive and apply the proceeds
of any insurance, judgments, or settlements made in lieu thereof, for damage to the Property;

 

(f)the right, in
the name and on behalf of Borrower, to appear in and defend any action or proceeding brought with respect to the Property and to
commence any action or proceeding to protect the interest of Lender in the Property;

 

(g)all accounts
(including reserve accounts), escrows, documents, instruments, chattel paper, claims, deposits and general intangibles, as the
foregoing terms are defined in the UCC, and all franchises, trade names, trademarks, symbols, service marks, books, records, plans,
specifications, designs, drawings, surveys, title insurance policies, permits, consents, licenses, management agreements, contract
rights (including any contract with any architect or engineer or with any other provider of goods or services for or in connection
with any construction, repair or other work upon the Property), approvals, actions, refunds of real estate taxes and assessments
(and any other governmental impositions related to the Property) and causes of action that now or hereafter relate to, are derived
from or are used in connection with the Property, or the use, operation, maintenance, occupancy or enjoyment thereof or the conduct
of any business or activities thereon (hereinafter collectively referred to as the “Intangibles”); and

 

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(h)all proceeds,
products, offspring, rents and profits from any of the foregoing, including those from sale, exchange, transfer, collection, loss,
damage, disposition, substitution or replacement of any of the foregoing.

 

Without limiting the
generality of any of the foregoing, in the event that a case under the Bankruptcy Code is commenced by or against Borrower, pursuant
to Section 552(b)(2) of the Bankruptcy Code, the security interest granted by this Security Instrument shall automatically
extend to all Rents acquired by Borrower after the commencement of the case and shall constitute cash collateral under Section 363(a)
of the Bankruptcy Code.

 

TO HAVE AND TO HOLD
the Property unto Lender and its successors and assigns, forever;

 

PROVIDED, HOWEVER,
these presents are upon the express condition that, if Borrower shall well and truly pay to Lender the Debt at the time and in
the manner provided in the Loan Documents and shall well and truly abide by and comply with each and every covenant and condition
set forth in the Loan Documents in a timely manner, these presents and the estate hereby granted shall cease, terminate and be
void;

 

AND Borrower represents
and warrants to and covenants and agrees with Lender as follows:

 

1.Payment
of Debt and Incorporation of Covenants, Conditions and Agreements. Borrower shall pay the Debt at the time and in the manner
provided in the Loan Documents. All the covenants, conditions and agreements contained in the Loan Documents are hereby made a
part of this Security Instrument to the same extent and with the same force as if fully set forth herein. Without limiting the
generality of the foregoing, Borrower (i) agrees to insure, repair, maintain and restore damage to the Property, pay Taxes,
and comply with Legal Requirements, in accordance with the Loan Agreement, and (ii) agrees that the Proceeds of Insurance
and Awards for Condemnation shall be settled, held and applied in accordance with the Loan Agreement.

 

2.Leases
and Rents. 

 

(a)Borrower does
hereby absolutely and unconditionally assign to Lender all of Borrower’s right, title and interest in all current and future
Leases and Rents, it being intended by Borrower that this assignment constitutes a present, absolute assignment and not an assignment
for additional security only. Such assignment shall not be construed to bind Lender to the performance of any of the covenants
or provisions contained in any Lease or otherwise impose any obligation upon Lender. Nevertheless, subject to the terms of this
Section 2(a), Lender grants to Borrower a revocable license to operate and manage the Property and to collect the Rents
subject to the requirements of the Loan Agreement (including the deposit of Rents into the Clearing Account). Upon the occurrence
and during the continuance of an Event of Default, without the need for notice or demand, the license granted to Borrower herein
shall automatically be revoked, and Lender shall immediately be entitled to possession of all Rents in (or required by the terms
of the Loan Documents to be deposited in) the Clearing Account, the Deposit Account (including all Subaccounts thereof) and all
Rents collected thereafter (including Rents past due and unpaid), whether or not Lender enters upon or takes control of the Property.
Borrower hereby grants and assigns to Lender the right, at its option, upon revocation of the license granted herein, to enter
upon the Property in person, by agent or by court-appointed receiver to collect the Rents. Any Rents collected after the revocation
of such license may be applied toward payment of the Debt in such priority and proportions as Lender in its sole discretion shall
deem proper.

 

(b)Borrower shall
not enter into, modify, amend, cancel, terminate or renew any Lease except as provided in Section 5.9 of the Loan Agreement.

 

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3.Use
of Property. Borrower shall not initiate, join in, acquiesce in or consent to any change in any private restrictive covenant,
zoning law or other public or private restriction, limiting or defining the uses which may be made of the Property. If under applicable
zoning provisions the use of the Property is or shall become a nonconforming use, Borrower shall not cause or permit such nonconforming
use to be discontinued or abandoned without the consent of Lender. Borrower shall not (i) change the use of the Property,
(ii) permit or suffer to occur any physical waste on or to the Property or (iii) take any steps to convert the Property to a condominium
or cooperative form of ownership.

 

4.Transfer
or Encumbrance of the Property.

 

(a)Borrower acknowledges
that (i) Lender has examined and relied on the creditworthiness and experience of the principals of Borrower in owning and
operating properties such as the Property in agreeing to make the Loan, (ii) Lender will continue to rely on Borrower’s
ownership of the Property as a means of maintaining the value of the Property as security for the Debt, and (iii) Lender has
a valid interest in maintaining the value of the Property so as to ensure that, should Borrower default in the repayment of the
Debt, Lender can recover the Debt by a sale of the Property. Borrower shall not sell, convey, alienate, mortgage, encumber, pledge
or otherwise transfer the Property or any part thereof, or suffer or permit any Transfer to occur, other than a Permitted Transfer.

 

(b)Lender shall
not be required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order to declare
the Debt immediately due and payable upon any Transfer in violation of this Section 4. This provision shall apply to
every sale, conveyance, alienation, mortgage, encumbrance, pledge or transfer of the Property (and every other Transfer) regardless
of whether voluntary or not. Any Transfer made in contravention of this Section 4 shall be null and void and of no
force and effect. Borrower agrees to bear and shall pay or reimburse Lender on demand for all reasonable expenses (including reasonable
attorneys’ fees and disbursements, title search costs and title insurance endorsement premiums) incurred by Lender in connection
with the review, approval and documentation of any Permitted Transfer, to the extent such review, approval and documentation is
required pursuant to the Loan Agreement.

 

5.Changes
in Laws Regarding Taxation. If any law is enacted or adopted or amended after the date of this Security Instrument which
deducts the Debt from the value of the Property for the purpose of taxation or which imposes a tax, either directly or indirectly,
on the Debt or Lender’s interest in the Property, Borrower will pay such tax, with interest and penalties thereon, if any.
If Lender is advised by its counsel that the payment of such tax or interest and penalties by Borrower would be unlawful, taxable
to Lender or unenforceable, or would provide the basis for a defense of usury, then Lender shall have the option, by written notice
of not less than one-hundred twenty (120) days, to declare the Debt immediately due and payable.

 

6.No
Credits on Account of the Debt.  Borrower shall not claim or demand or be entitled to any credit on account of the Debt
for any part of the Taxes assessed against the Property, and no deduction shall otherwise be made or claimed from the assessed
value of the Property for real estate tax purposes by reason of this Security Instrument or the Debt. If such claim, credit or
deduction shall be required by law, Lender shall have the option, by written notice of not less than one-hundred twenty (120) days,
to declare the Debt immediately due and payable.

 

7.Further
Acts, Etc. Borrower shall, at its sole cost, perform, execute, acknowledge and deliver all and every such further acts,
deeds, conveyances, mortgages, assignments, notices of assignment, transfers and assurances as Lender shall, from time to time,
reasonably require, for the better assuring, conveying, assigning, transferring, and confirming unto Lender the property and rights
hereby mortgaged, given, granted, bargained, sold, alienated, enfeoffed, conveyed, confirmed, pledged, assigned and hypothecated
or intended now or hereafter so to be, or which Borrower may be or may hereafter become bound to convey or assign to Lender, or
for carrying out the intention or facilitating the performance of the terms of this Security Instrument, or for filing, registering
or recording this Security Instrument or for facilitating the sale and transfer of the Loan and the Loan Documents in connection
with a “Securitization” as described in Section 9.1 of the Loan Agreement. Upon foreclosure, the appointment
of a receiver or any other relevant action, Borrower shall, at its sole cost, cooperate fully and completely to effect the assignment
or transfer of any license, permit, agreement or any other right necessary or useful to the operation of the Property. Borrower
grants to Lender an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and
all rights and remedies available to Lender at law and in equity, including such rights and remedies available to Lender pursuant
to this Section 7.

 

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8.Recording
of Security Instrument, Etc. Borrower forthwith upon the execution and delivery of this Security Instrument and thereafter,
from time to time, shall cause this Security Instrument, and any security instrument creating a lien or security interest or evidencing
the lien hereof upon the Property and each instrument of further assurance to be filed, registered or recorded in such manner and
in such places as may be required by any present or future law in order to publish notice of and fully to protect the lien or security
interest hereof upon, and the interest of Lender in, the Property. Borrower shall pay all filing, registration or recording fees,
all expenses incident to the preparation, execution and acknowledgment of and all federal, state, county and municipal, taxes,
duties, imposts, documentary stamps, assessments and charges arising out of or in connection with the execution and delivery of,
this Security Instrument, any supplemental hereto, any security instrument with respect to the Property or any instrument of further
assurance, except where prohibited by law so to do. Borrower shall hold harmless and indemnify Lender, its successors and assigns,
against any liability incurred by reason of the imposition of any tax on the making or recording of this Security Instrument.

 

9.Right
to Cure Defaults. Upon the occurrence and during the continuance of any Event of Default, Lender may, but without any obligation
to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation hereunder, perform the
obligations in Default in such manner and to such extent as Lender may deem necessary to protect the security hereof. Lender is
authorized to enter upon the Property for such purposes or appear in, defend or bring any action or proceeding to protect its interest
in the Property or to foreclose this Security Instrument or collect the Debt, and the cost and expense thereof (including reasonable
attorneys’ fees and disbursements to the extent permitted by law), with interest thereon at the Default Rate for the period
after notice from Lender that such cost or expense was incurred to the date of payment to Lender, shall constitute a portion of
the Debt, shall be secured by this Security Instrument and the other Loan Documents and shall be due and payable to Lender upon
demand.

 

10.Remedies.

 

(a)Upon the occurrence
and during the continuance of any Event of Default, Lender may take such action, without notice or demand, as it deems advisable
to protect and enforce its rights against Borrower and in and to the Property, by Lender itself or otherwise, including the following
actions, each of which may be pursued concurrently or otherwise, at such time and in such order as Lender may determine, in its
sole discretion, without impairing or otherwise affecting the other rights and remedies of Lender:

 

		(i)	declare the entire Debt to be immediately due and payable;

 

		(ii)	institute a proceeding or proceedings, judicial or nonjudicial, to the extent permitted by law,
by advertisement or otherwise, for the complete foreclosure of this Security Instrument, in which case the Property may be sold
for cash or upon credit in one or more parcels or in several interests or portions and in any order or manner;

 

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		(iii)	with or without entry, to the extent permitted and pursuant to the procedures provided by applicable
law, institute proceedings for the partial foreclosure of this Security Instrument for the portion of the Debt then due and payable,
subject to the continuing lien of this Security Instrument for the balance of the Debt not then due;

 

		(iv)	sell for cash or upon credit the Property and all estate, claim, demand, right, title and interest
of Borrower therein and rights of redemption thereof, pursuant to the power of sale, to the extent permitted by law, or otherwise,
at one or more sales, as an entirety or in parcels, at such time and place, upon such terms and after such notice thereof as may
be required by law;

 

		(v)	institute an action, suit or proceeding in equity for the specific performance of any covenant,
condition or agreement contained herein or in any other Loan Document;

 

		(vi)	recover judgment on the Note either before, during or after any proceeding for the enforcement
of this Security Instrument;

 

		(vii)	apply for the appointment of a trustee, receiver, liquidator or conservator of the Property, without
notice and without regard for the adequacy of the security for the Debt and without regard for the solvency of the Borrower or
of any Person liable for the payment of the Debt;

 

		(viii)	enforce Lender’s interest in the Leases and Rents and enter into or upon the Property, either
personally or by its agents, nominees or attorneys and dispossess Borrower and its agents and employees therefrom, and Lender may
(A) use, operate, manage, control, insure, maintain, repair, restore and otherwise deal with the Property and conduct the business
thereat; (B) complete any construction on the Property in such manner and form as Lender deems advisable; (C) make alterations,
additions, renewals, replacements and improvements to or on the Property; (D) exercise all rights and powers of Borrower with
respect to the Property, whether in the name of Borrower or otherwise, including the right to make, cancel, enforce or modify Leases,
obtain and evict tenants, and demand, sue for, collect and receive Rents; and (E) apply the receipts from the Property to the payment
of the Debt, after deducting therefrom all expenses (including reasonable attorneys’ fees and disbursements) incurred in
connection with the aforesaid operations and all amounts necessary to pay the Taxes, insurance and other charges in connection
with the Property, as well as just and reasonable compensation for the services of Lender, and its counsel, agents and employees;

 

		(ix)	require Borrower to pay monthly in advance to Lender, or any receiver appointed to collect the
Rents, the fair and reasonable rental value for the use and occupation of any portion of the Property occupied by Borrower, and
require Borrower to vacate and surrender possession of the Property to Lender or to such receiver, and, in default thereof, evict
Borrower by summary proceedings or otherwise; or

 

		(x)	pursue such other rights and remedies as may be available at law or in equity or under the UCC,
including the right to receive and/or establish a lock box for all Rents and proceeds from the Intangibles and any other receivables
or rights to payments of Borrower relating to the Property.

 

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In the event of a sale,
by foreclosure or otherwise, of less than all of the Property, this Security Instrument shall continue as a lien on the remaining
portion of the Property.

 

(b)The proceeds
of any sale made under or by virtue of this Section 10, together with any other sums which then may be held by Lender
under this Security Instrument, whether under the provisions of this Section 10 or otherwise, shall be applied by Lender
to the payment of the Debt in such priority and proportion as Lender in its sole discretion shall deem proper.

 

(c)Lender may adjourn
from time to time any sale by it to be made under or by virtue of this Security Instrument by announcement at the time and place
appointed for such sale or for such adjourned sale or sales; and, except as otherwise provided by any applicable law, Lender, without
further notice or publication, may make such sale at the time and place to which the same shall be so adjourned.

 

(d)Upon the completion
of any sale or sales pursuant hereto, Lender, or an officer of any court empowered to do so, shall execute and deliver to the accepted
purchaser or purchasers a good and sufficient instrument, or good and sufficient instruments, conveying, assigning and transferring
all estate, right, title and interest in and to the property and rights sold. Lender is hereby irrevocably appointed the true and
lawful attorney of Borrower, which appointment is coupled with an interest, in its name and stead, to make all necessary conveyances,
assignments, transfers and deliveries of the Property and rights so sold and for that purpose Lender may execute all necessary
instruments of conveyance, assignment and transfer, and may substitute one or more persons with like power, Borrower hereby ratifying
and confirming all that its said attorney or such substitute or substitutes shall lawfully do by virtue hereof. Any sale or sales
made under or by virtue of this Section 10, whether made under the power of sale herein granted or under or by virtue
of judicial proceedings or of a judgment or decree of foreclosure and sale, shall operate to divest all the estate, right, title,
interest, claim and demand whatsoever, whether at law or in equity, of Borrower in and to the properties and rights so sold, and
shall be a perpetual bar both at law and in equity against Borrower and against any and all persons claiming or who may claim the
same, or any part thereof, from, through or under Borrower.

 

(e)Upon any sale
made under or by virtue of this Section 10, whether made under a power of sale or under or by virtue of judicial proceedings
or of a judgment or decree of foreclosure and sale, Lender may bid for and acquire the Property or any part thereof and in lieu
of paying cash therefor may make settlement for the purchase price by crediting upon the Debt the net sales price after deducting
therefrom the expenses of the sale and costs of the action and any other sums which Lender is authorized to deduct under this Security
Instrument or any other Loan Document.

 

(f)No recovery
of any judgment by Lender and no levy of an execution under any judgment upon the Property or upon any other property of Borrower
shall affect in any manner or to any extent the lien of this Security Instrument upon the Property or any part thereof, or any
liens, rights, powers or remedies of Lender hereunder, but such liens, rights, powers and remedies of Lender shall continue unimpaired
as before.

 

(g)Lender may terminate
or rescind any proceeding or other action brought in connection with its exercise of the remedies provided in this Section 10
at any time before the conclusion thereof, as determined in Lender’s sole discretion and without prejudice to Lender.

 

(h)Lender may resort
to any remedies and the security given by this Security Instrument or in any other Loan Document in whole or in part, and in such
portions and in such order as determined in Lender’s sole discretion. No such action shall in any way be considered a waiver
of any rights, benefits or remedies evidenced or provided by any Loan Document. The failure of Lender to exercise any right, remedy
or option provided in any Loan Document shall not be deemed a waiver of such right, remedy or option or of any covenant or obligation
secured by any Loan Document. No acceptance by Lender of any payment after the occurrence of any Event of Default and no payment
by Lender of any obligation for which Borrower is liable hereunder shall be deemed to waive or cure any Event of Default, or Borrower’s
liability to pay such obligation. No sale of all or any portion of the Property, no forbearance on the part of Lender, and no extension
of time for the payment of the whole or any portion of the Debt or any other indulgence given by Lender to Borrower, shall operate
to release or in any manner affect the interest of Lender in the remaining Property or the liability of Borrower to pay the Debt.
No waiver by Lender shall be effective unless it is in writing and then only to the extent specifically stated. All costs and expenses
of Lender in exercising its rights and remedies under this Section 10 (including reasonable attorneys’ fees and
disbursements to the extent permitted by law), shall be paid by Borrower immediately upon notice from Lender, with interest at
the Default Rate for the period after notice from Lender, and such costs and expenses shall constitute a portion of the Debt and
shall be secured by this Security Instrument.

 

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(i)The interests
and rights of Lender under the Loan Documents shall not be impaired by any indulgence, including (x) any renewal, extension or
modification which Lender may grant with respect to any of the Debt, (y) any surrender, compromise, release, renewal, extension,
exchange or substitution which Lender may grant with respect to the Property or any portion thereof or (z) any release or indulgence
granted to any maker, endorser, guarantor or surety of any of the Debt.

 

11.Right
of Entry.  In addition to any other rights or remedies granted under this Security Instrument, Lender and its agents shall
have the right to enter and inspect the Property at any reasonable time during the term of this Security Instrument. The cost of
such inspections or audits shall be borne by Borrower should Lender determine that an Event of Default exists, including the cost
of all follow up or additional investigations or inquiries deemed reasonably necessary by Lender. The cost of such inspections,
if not paid for by Borrower following demand, may be added to the principal balance of the sums due under the Note and this Security
Instrument and shall bear interest thereafter until paid at the Default Rate.

 

12.Security
Agreement. This Security Instrument is both a real property mortgage and a “security agreement” within the
meaning of the UCC. The Property includes both real and personal property and all other rights and interests, whether tangible
or intangible in nature, of Borrower in the Property. Borrower by executing and delivering this Security Instrument has granted
and hereby grants to Lender, as security for the Debt, a security interest in the Property to the full extent that the Property
may be subject to the UCC (such portion of the Property so subject to the UCC being called in this Section 12 the “Collateral”).
This Security Instrument shall also constitute a “fixture filing” for the purposes of the UCC. As such, this Security
Instrument covers all items of the Collateral that are or are to become fixtures. Information concerning the security interest
herein granted may be obtained from the parties at the addresses of the parties set forth in the first paragraph of this Security
Instrument. If an Event of Default shall occur and be continuing, Lender, in addition to any other rights and remedies which it
may have, shall have and may exercise immediately and without demand, any and all rights and remedies granted to a secured party
upon default under the UCC, including, without limiting the generality of the foregoing, the right to take possession of the Collateral
or any part thereof, and to take such other measures as Lender may deem necessary for the care, protection and preservation of
the Collateral. Upon request or demand of Lender, Borrower shall at its expense assemble the Collateral and make it available to
Lender at a convenient place acceptable to Lender. Borrower shall pay to Lender within ten (10) days of written demand any and
all expenses, including reasonable attorneys’ fees and disbursements, incurred or paid by Lender in protecting the interest
in the Collateral and in enforcing the rights hereunder with respect to the Collateral. Any notice of sale, disposition or other
intended action by Lender with respect to the Collateral, sent to Borrower in accordance with the provisions hereof at least ten
days prior to such action, shall constitute commercially reasonable notice to Borrower. The proceeds of any disposition of the
Collateral, or any part thereof, may be applied by Lender to the payment of the Debt in such priority and proportions as Lender
in its sole discretion shall deem proper. In the event of any change in name, identity, structure or place of incorporation, organization
or formation of Borrower, Borrower shall notify Lender thereof and promptly after request shall file and record such UCC forms
as are necessary to maintain the priority of Lender’s lien upon and security interest in the Collateral, and shall pay all
expenses and fees in connection with the filing and recording thereof. If Lender shall require the filing or recording of additional
UCC forms or continuation statements, Borrower shall, promptly after request, file and record such UCC forms or continuation statements
as Lender shall deem necessary, and shall pay all expenses and fees in connection with the filing and recording thereof, it being
understood and agreed, however, that no such additional documents shall increase Borrower’s obligations under the Loan Documents.
Borrower hereby irrevocably appoints Lender as its attorney-in-fact, coupled with an interest, to file with the appropriate public
office on its behalf any financing or other statements naming Lender, as secured party, and Borrower, as debtor, in connection
with the Collateral covered by this Security Instrument.

 

    	8

    	 

    

 

13.Actions
and Proceedings. Lender has the right to appear in and defend any action or proceeding brought with respect to the Property
and to bring any action or proceeding, in the name and on behalf of Borrower, which Lender, in its sole discretion, decides should
be brought to protect its or their interest in the Property. Lender shall, at its option, be subrogated to the lien of any mortgage,
deed of trust or other security instrument discharged in whole or in part by the Debt, and any such subrogation rights shall constitute
additional security for the payment of the Debt.

 

14.Marshalling
and Other Matters. Borrower hereby waives, to the extent permitted by law, the benefit of all appraisement, valuation,
stay, extension, reinstatement and redemption laws now or hereafter in force and all rights of marshalling in the event of any
sale hereunder of the Property or any part thereof or any interest therein. Further, Borrower hereby expressly waives any and all
rights of redemption from sale under any order or decree of foreclosure of this Security Instrument on behalf of Borrower, and
on behalf of each and every Person acquiring any interest in or title to the Property subsequent to the date of this Security Instrument
and on behalf of all Persons to the extent permitted by applicable law. The lien of this Security Instrument shall be absolute
and unconditional and shall not in any manner be affected or impaired by any acts or omissions whatsoever of Lender and, without
limiting the generality of the foregoing, the lien hereof shall not be impaired by (i) any acceptance by Lender of any other security
for any portion of the Debt, (ii) any failure, neglect or omission on the part of Lender to realize upon or protect any portion
of the Debt or any collateral security therefor or (iii) any release (except as to the property released), sale, pledge, surrender,
compromise, settlement, renewal, extension, indulgence, alteration, changing, modification or disposition of any portion of the
Debt or of any of the collateral security therefor; and Lender may foreclose, or exercise any other remedy available to Lender
under other Loan Documents without first exercising or enforcing any of its remedies under this Security Instrument, and any exercise
of the rights and remedies of Lender hereunder shall not in any manner impair the Debt or the liens of any other Loan Document
or any of Lender’s rights and remedies thereunder.

 

15.Notices.
 All notices, consents, approvals and requests required or permitted hereunder (a “Notice”) shall
be given in writing and shall be effective for all purposes if either hand delivered with receipt acknowledged, or by a nationally
recognized overnight delivery service (such as Federal Express), or by certified or registered United States mail, return receipt
requested, postage prepaid, or by facsimile and confirmed by facsimile answer back, in each case addressed as follows (or to such
other address or Person as a party shall designate from time to time by Notice to the other party): If to Lender: Natixis Real
Estate Capital LLC, 1251 Avenue of the Americas, 36th Floor, New York, New York 10020; Attention: Real Estate Administration,
Telecopier: (212) 891-6101 with copies to: Nelson Mullins Riley & Scarborough LLP, 100 North Tryon Street, 42nd
Floor, Charlotte, North Carolina 28202, Attention: D. Shane Gunter, Telecopier: (704) 417-3252; if to Borrower: c/o 1430 Broadway,
Suite 503, New York, New York 10018, Attention: Alexander Ludwig, Telecopier: (917) 591-8107, with a copy to: c/o Blank Rome LLP,
The Chrysler Building, 405 Lexington Avenue, New York, New York 10174, Attention: Samuel M. Walker, Telecopier: (917) 332-3805.
A Notice shall be deemed to have been given: (a) in the case of hand delivery, at the time of delivery; (b) in the case of registered
or certified mail, when delivered or the first attempted delivery on a Business Day; (c) in the case of overnight delivery, upon
the first attempted delivery on a Business Day; or (d) in the case of facsimile transmission, when sent and electronically confirmed.

 

    	9

    	 

    

 

16.Inapplicable
Provisions. If any term, covenant or condition of this Security Instrument is held to be invalid, illegal or unenforceable
in any respect, this Security Instrument shall be construed without such provision.

 

17.Headings.
The section headings in this Security Instrument are for convenience of reference only and are not to be construed as defining
or limiting, in any way, the scope or intent of the provisions hereof.

 

18.Duplicate
Originals. This Security Instrument may be executed in any number of duplicate originals and each such duplicate original
shall be deemed to be an original.

 

19.Definitions.
Unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein, words used in this Security
Instrument may be used interchangeably in singular or plural form; and the word “Borrower” shall
mean “each Borrower and any subsequent owner or owners of the Property or any part thereof or any interest therein,”
the word “Lender” shall mean “Lender and any subsequent holder of the Note,” the words
“Property” shall include any portion of the Property and any interest therein, the word “including”
means “including but not limited to” and the words “attorneys’ fees” shall include
any and all reasonable attorneys’ fees, paralegal and law clerk fees, including, fees at the pre-trial, trial and appellate
levels incurred or paid by Lender in protecting its interest in the Property and collateral and enforcing its rights hereunder.

 

20.Homestead.
Borrower hereby waives and renounces all homestead and exemption rights provided by the Constitution and the laws of the United
States and of any state, in and to the Property as against the collection of the Debt, or any part thereof.

 

21.Assignments.
Lender shall have the right to assign or transfer its rights under this Security Instrument without limitation. Any assignee or
transferee shall be entitled to all the benefits afforded Lender under this Security Instrument.

 

22.Waiver
of Jury Trial. BORROWER AND LENDER BY ITS ACCEPTANCE HEREOF EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE
TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER
EXIST WITH REGARD TO THIS SECURITY INSTRUMENT OR ANY OTHER LOAN DOCUMENT, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN
CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER, AND IS INTENDED
TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER
IS HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION 22 IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER
AND LENDER.

 

23.Consents.
Any consent or approval by Lender in any single instance shall not be deemed or construed to be Lender’s consent or approval
in any like matter arising at a subsequent date, and the failure of Lender to promptly exercise any right, power, remedy, consent
or approval provided herein or at law or in equity shall not constitute or be construed as a waiver of the same nor shall Lender
be estopped from exercising such right, power, remedy, consent or approval at a later date. Any consent or approval requested of
and granted by Lender pursuant hereto shall be narrowly construed to be applicable only to Borrower and the matter identified in
such consent or approval and no third party shall claim any benefit by reason thereof, and any such consent or approval shall not
be deemed to constitute Lender a venturer or partner with Borrower nor shall privity of contract be presumed to have been established
with any such third party. If Lender deems it to be in its best interest to retain assistance of persons, firms or corporations
(including attorneys, title insurance companies, appraisers, engineers and surveyors) with respect to a request for consent or
approval, Borrower shall reimburse Lender for all costs reasonably incurred in connection with the employment of such persons,
firms or corporations.

 

    	10

    	 

    

 

24.Employee
Benefit Plan. During the term of this Security Instrument, unless Lender shall have previously consented in writing, (i)
Borrower shall take no action that would cause it to become an “employee benefit plan” as defined in 29 C.F.R.
Section 2510.3-101, or “assets of a governmental plan” subject to regulation under the state statutes,
and (ii) Borrower shall not sell, assign or transfer the Property, or any portion thereof or interest therein, to any transferee
that does not execute and deliver to Lender its written assumption of the obligations of this covenant. Borrower shall protect,
defend, indemnify and hold Lender harmless from and against all out-of-pocket loss, cost, damage and expense (including all attorneys’
fees, excise taxes and costs of correcting any prohibited transaction or obtaining an appropriate exemption) that Lender may incur
as a result of Borrower’s breach of this covenant. This covenant and indemnity shall survive the extinguishment of the lien
of this Security Instrument by foreclosure or action in lieu thereof.

 

25.Loan
Repayment and Defeasance. This Security Instrument will be satisfied and discharged of record by Lender prior to the Maturity
Date only in accordance with the terms and provisions set forth in Section 2.3 of the Loan Agreement.

 

26.Notices
of Activity and Use Limitations. Reference is hereby made to that certain (i) Notice of Activity and Use Limitation, dated
September 20, 2010, recorded in Book 18472, Page 371, as affected by the Confirmatory Notice of Activity and Use Limitation, dated
May 27, 2014, recorded in Book 20311, Page 345 and (ii) Notice of Activity and Use Limitation, dated September 20, 2010, recorded
in Book 18472, Page 397, as affected by the Confirmatory Notice of Activity and Use Limitation, dated May 27, 2014, recorded in
Book 20311, Page 329.

 

27.Governing
Law. THIS SECURITY INSTRUMENT SHALL BE GOVERNED BY, AND BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE IN WHICH
THE PROPERTY IS LOCATED (WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF).

 

28.Exculpation.
The liability of Borrower hereunder is limited pursuant to Section 10.1 of the Loan Agreement.

 

29.Certain
Matters Relating to Property Located in the Commonwealth of Massachusetts. With respect to the Property which is located
in the Commonwealth of Massachusetts, notwithstanding anything contained herein to the contrary:

  

(a)Statutory
Power of Sale. This Security Instrument is upon the STATUTORY CONDITION and upon the further condition that all agreements
of Borrower contained in this Security Instrument and the other Loan Documents be fully performed, for breach of which Lender shall
have the STATUTORY POWER OF SALE. In the event of the exercise of the STATUTORY POWER OF SALE, Lender may foreclose on and sell
all or any part of the Property, and thereafter Lender shall continue to have the STATUTORY POWER OF SALE so long as any portion
of the Property remains subject to this Security Instrument.

 

[The
Remainder of the Page is Intentionally Blank]

 

    	11

    	 

    

 

IN WITNESS WHEREOF,
Borrower has executed this Security Instrument as of the day and year first above written.

 

	 	BORROWER:
	 	 
	 	PALMER-MAPLETREE LLC,
	 	a Delaware limited liability company
	 	 
	 	 
	 	By:	/s/ Alexander Ludwig
	 	Name:	Alexander Ludwig
	 	Title:	Manager
	 	 	 

 

    	 

    	 

    

 

STATE OF NEW YORK

 

COUNTY OF NEW YORK

 

On July
20, 2015, personally appeared before me, the undersigned authority, a duly commissioned Notary Public
in and for the State and County aforesaid, ALEXANDER LUDWIG, who proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized
capacity(ies), and that by his/her signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument. A notary public or other officer completing this acknowledgement verifies only the identity of
the individual who signed the document to which this acknowledgement is attached, and not the truthfulness, accuracy, or validity
of that document.

 

I certify under PENALTY OF PERJURY under
the laws of this State that the foregoing paragraph is true and correct.

 

	 	 
	 	/s/ Laurie A Stockwell
	 	Notary Public
	[NOTARY SEAL]	Print Name: Laurie A Stockwell 
	 	My Commission Expires: November 17, 2018

 

 

    	 

    	 

    

 

Exhibit “A”

 

[Legal
Description]

 

The following tract of land
located in Palmer, Hampden County, Massachusetts, together with the buildings and improvements thereon,

 

BEGINNING
at an iron pipe in the Northerly line of the state highway known as Route #20, locally called Wilbraham Street, at the Southwest
corner of land of International Fastener Research Corporation, shown as Parcel 1 on said plan and from said point of beginning
running thence N. 15° 7’ 40” W., two hundred eight and 25/100 (208.25) feet
to an iron pipe; thence N. 11° 34’ W., forty and 81/100 (40.81) feet to an iron
pipe; thence N. 2° 41’ W., two hundred eighty-seven and 02/100 (287.02) feet to
an iron pipe; thence N. 87° 3’ 30” E. passing through the center line of a
firewall between buildings numbered 50, 51 and 36 as shown on said plan, four hundred fifty-six and 02/100 (456.02) feet to another
iron pipe in the Westerly line of the location of the Central Vermont Railway, Inc., all of said four boundaries being along land
of said Fastener Corporation; thence In a general northerly direction by the curved line of
said Railway land having a radius of one thousand four hundred seventy four and 82/100 (1,474.82) feet, an arc distance of one
thousand three hundred twenty and 01/100 (1,320.01) feet to an iron pipe; thence N. 11°
28’ 45” E. by last named land, one thousand three and 75/100 (1,003.75) feet to another iron pipe at land conveyed
by T.G.Y. Partnership to The Legomatic Corporation thence running S. 11° 23’ 45”
E. by last named land forty-eight and 02/100 (48.02) feet to an iron pipe; thence Northwesterly
by the curved line of land now of Massachusetts Turnpike Authority having a radius of four thousand seven hundred eighty 00/100
(4,780.00) feet, an arc distance of five hundred forty two and 92/100 (542.92) feet to an iron pipe opposite a station number 172
of said highway, thence Northwesterly by said turnpike about one hundred ten and 00/100 (110.00)
feet to the Quaboag River, thence Generally Southeasterly and Southwesterly by said River
about two thousand five hundred thirty-six and 00/100 (2,536.00) feet to an iron pipe; thence S.
86° 51” E., forty-eight and 00/100 (48.00) feet to an iron pipe; thence S. 86°
51” E., four hundred nine and 18/100 (409.18) feet to an iron pipe; thence S. 20°
41’ 10” E., fifty-five and 32/100 (55.32) feet; thence S. 2° 28’ 15”
E., one hundred thirty-seven and 11/100 (137.11) feet; thence S. 2° 50’ 30”
W., one hundred twenty seven and 22/100 (127.22) feet; thence S. 68° 25’ W., zero
and 70/00 (.70) feet; thence S. 19° 0’ 45” E., one hundred fifty-six and 00/100
(156.00) feet; thence N. 70° 33’ 5” E., along Wilbraham Street thirty-two
and 00/100 (32.00) feet to the point of beginning.Exhibit 10.4

 

 

 

 

 

 

 

GUARANTY OF RECOURSE OBLIGATIONS

 

 

made by

 

 

PRESIDENTIAL REALTY CORPORATION,

as Guarantor,

 

 

in favor of

 

 

NATIXIS REAL ESTATE CAPITAL LLC,

as Lender

 

 

 

 

 

 

Dated as of July 28, 2015

 

 

 

 

 

 

 

 

    	 

    	 

    

 

GUARANTY OF RECOURSE OBLIGATIONS

 

This GUARANTY OF RECOURSE
OBLIGATIONS (this “Guaranty”), dated as of July 28, 2015, is made by PRESIDENTIAL REALTY CORPORATION,
a Delaware corporation, having an address at 1430 Broadway, Suite 503, New York, New York 10018 (“Guarantor”),
in favor of NATIXIS REAL ESTATE CAPITAL LLC, a Delaware limited liability company, having an address at 1251 Avenue of the Americas,
New York, New York 10020 (together with its successors and assigns, “Lender”).

 

R E C I T
A L S:

 

WHEREAS, pursuant to
that certain Loan Agreement dated as of the date hereof (as the same may be amended, modified, supplemented, restated or replaced
from time to time, the “Loan Agreement”) between Palmer-Mapletree LLC, a Delaware limited liability company
(“Borrower”) and Lender, Lender has agreed to make a loan (the “Loan”) to Borrower
in an original principal amount of $1,750,000.00, subject to the terms and conditions of the Loan Agreement; and

 

WHEREAS, as a condition
to Lender’s making the Loan, Lender is requiring that Guarantor execute and deliver to Lender this Guaranty; and

 

WHEREAS, Guarantor
hereby acknowledges that it owns direct or indirect ownership interests in Borrower and, accordingly, Guarantor will materially
benefit from Lender’s agreeing to make the Loan.

 

NOW, THEREFORE, in
consideration of the premises set forth herein and as an inducement for and in consideration of the agreement of Lender to make
the Loan pursuant to the Loan Agreement, Guarantor hereby agrees, covenants, represents and warrants to Lender as follows:

 

		1.	Definitions.

 

(a)All capitalized
terms used and not defined herein shall have the respective meanings given such terms in the Loan Agreement.

 

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

 

		2.	Guaranty.

 

(a)Guarantor hereby
irrevocably, absolutely and unconditionally guarantees to Lender the full, prompt and complete payment when due of the Guaranteed
Obligations.

 

(b)All sums payable
to Lender under this Guaranty shall be payable on demand and without reduction for any offset, claim, counterclaim or defense.

 

(c)Guarantor hereby
agrees to indemnify, defend and save harmless Lender from and against any and all costs, losses, liabilities, claims, causes of
action, expenses and damages, including reasonable attorneys’ fees and disbursements, which Lender may suffer or which otherwise
may arise in connection with the enforcement by Lender of the Loan Documents and/or by reason of Borrower’s failure to pay
any of the Guaranteed Obligations when due, irrespective of whether such costs, losses, liabilities, claims, causes of action,
expenses or damages are incurred by Lender prior or subsequent to (i) Lender’s declaring the Principal, interest and other
sums evidenced or secured by the Loan Documents to be due and payable, (ii) the commencement or completion of a judicial or
non-judicial foreclosure of the Security Instrument or (iii) the conveyance of all or any portion of the Property by deed-in-lieu
of foreclosure.

 

    	 

    	 

    

 

(d)Guarantor agrees
that no portion of any sums applied (other than sums received from Guarantor in full or partial satisfaction of its obligations
hereunder), from time to time, in reduction of the Debt shall be deemed to have been applied in reduction of the Guaranteed Obligations
until such time as the Debt has been paid in full, or Guarantor shall have made the full payment required hereunder, it being the
intention hereof that the Guaranteed Obligations shall be the last portion of the Debt to be deemed satisfied.

 

3.          Representations
and Warranties. Guarantor hereby represents and warrants to Lender as follows (which representations and warranties shall
be given as of the date hereof and shall survive the execution and delivery of this Guaranty):

 

(a)         Execution.
This Guaranty has been duly executed and delivered by Guarantor.

 

(b)         Enforceability.
This Guaranty constitutes a legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors’ rights generally.

 

(c)         No Violation.
The execution, delivery and performance by Guarantor of its obligations under this Guaranty does not and will not violate any law,
regulation, order, writ, injunction or decree of any court or governmental body, agency or other instrumentality applicable to
Guarantor, or result in a breach of any of the terms, conditions or provisions of, or constitute a default under, or result in
the creation or imposition of any mortgage, lien, charge or encumbrance of any nature whatsoever upon any of the assets of Guarantor
pursuant to the terms of any mortgage, indenture, agreement or instrument to which Guarantor is a party or by which it or any of
its properties is bound. Guarantor is not in default under any other guaranty which it has provided to Lender.

 

(d)         No Litigation.
There are no actions, suits or proceedings at law or in equity, pending or, to Guarantor’s knowledge, threatened against
or affecting Guarantor or which involve or might involve the validity or enforceability of this Guaranty or which might materially
adversely affect the financial condition of Guarantor or the ability of Guarantor to perform any of its obligations under this
Guaranty. Guarantor is not in default beyond any applicable grace or cure period with respect to any order, writ, injunction, decree
or demand of any Governmental Authority which might materially adversely affect the financial condition of Guarantor or the ability
of Guarantor to perform any of its obligations under this Guaranty.

 

(e)         Consents.
All consents, approvals, orders or authorizations of, or registrations, declarations or filings with, all Governmental Authorities
(collectively, the “Consents”) that are required in connection with the valid execution, delivery and
performance by Guarantor of this Guaranty have been obtained and Guarantor agrees that all Consents required in connection with
the carrying out or performance of any of Guarantor’s obligations under this Guaranty will be obtained when required.

 

(f)         Financial
Statements and Other Information. All financial statements of Guarantor heretofore delivered to Lender are true and correct
in all material respects and fairly present the financial condition of Guarantor as of the respective dates thereof, and no materially
adverse change has occurred in the financial conditions reflected therein since the respective dates thereof. None of the aforesaid
financial statements or any certificate or statement furnished to Lender by or on behalf of Guarantor in connection with the transactions
contemplated hereby, and none of the representations and warranties in this Guaranty contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make the statements contained therein or herein not misleading. Guarantor
is not insolvent within the meaning of the United States Bankruptcy Code or any other applicable law, code or regulation and the
execution, delivery and performance of this Guaranty will not render Guarantor insolvent.

 

    	2

    	 

    

 

(g)          Consideration.
Guarantor is the owner, directly or indirectly, of legal and beneficial ownership interests in Borrower.

 

4.          Financial
Statements. Guarantor shall deliver to Lender, (a) within one-hundred twenty (120) days after the end of each fiscal
year of Guarantor, a complete copy of Guarantor’s annual financial statements audited by an independent certified public
accountant reasonably acceptable to Lender, (b) twenty (20) days after request by Lender, such other financial information
with respect to Guarantor as Lender may reasonably request.

 

		5.	Unconditional Character of Obligations of Guarantor.

 

(a)          The obligations
of Guarantor hereunder shall be irrevocable, absolute and unconditional, irrespective of the validity, regularity or enforceability,
in whole or in part, of the other Loan Documents or any provision thereof, or the absence of any action to enforce the same, any
waiver or consent with respect to any provision thereof, the recovery of any judgment against Borrower, Guarantor or any other
Person or any action to enforce the same, any failure or delay in the enforcement of the obligations of Borrower under the other
Loan Documents or Guarantor under this Guaranty, or any setoff or counterclaim, and irrespective of any other circumstances which
might otherwise limit recourse against Guarantor by Lender or constitute a legal or equitable discharge or defense of a guarantor
or surety. Lender may enforce the obligations of Guarantor under this Guaranty by a proceeding at law, in equity or otherwise,
independent of any loan foreclosure or similar proceeding or any deficiency action against Borrower or any other Person at any
time, either before or after an action against the Property or any part thereof, Borrower or any other Person. This Guaranty
is a guaranty of payment and performance and not merely a guaranty of collection. Guarantor waives diligence, notice of acceptance
of this Guaranty, filing of claims with any court, any proceeding to enforce any provision of any other Loan Document against Guarantor,
Borrower or any other Person, any right to require a proceeding first against Borrower or any other Person, or to exhaust any security
(including, without limitation, the Property) for the performance of the Guaranteed Obligations or any other obligations of Borrower
or any other Person, or any protest, presentment, notice of default or other notice or demand whatsoever (except to the extent
expressly provided to the contrary in this Guaranty).

 

(b)         The obligations
of Guarantor under this Guaranty, and the rights of Lender to enforce the same by proceedings, whether by action at law, suit in
equity or otherwise, shall not be in any way affected by any of the following:

 

		(i)	any insolvency, bankruptcy, liquidation, reorganization,
readjustment, composition, dissolution, receivership, conservatorship, winding up or other similar proceeding involving or affecting
Borrower, the Property or any part thereof, Guarantor or any other Person;

 

		(ii)	any failure by Lender or any other Person, whether or
not without fault on its part, to perform or comply with any of the terms of the Loan Agreement, or any other Loan Documents,
or any document or instrument relating thereto;

 

		(iii)	the sale, transfer or conveyance of the Property or any
interest therein to any Person, whether now or hereafter having or acquiring an interest in the Property or any part thereof and
whether or not pursuant to any foreclosure, trustee sale or similar proceeding against Borrower or the Property or any interest
therein;

 

    	3

    	 

    

 

		(iv)	the conveyance to Lender, any Affiliate of Lender or
Lender’s nominee of the Property or any interest therein by a deed-in-lieu of foreclosure;

 

		(v)	the release of Borrower or any other Person from the
performance or observance of any of the agreements, covenants, terms or conditions contained in any of the Loan Documents by operation
of law or otherwise; or

 

		(vi)	the release in whole or in part of any collateral for
any or all Guaranteed Obligations or for the Loan or any portion thereof.

 

(c)          Except as otherwise
specifically provided in this Guaranty, Guarantor hereby expressly and irrevocably waives all defenses in an action brought by
Lender to enforce this Guaranty based on claims of waiver, release, surrender, alteration or compromise and all setoffs, reductions,
or impairments, whether arising hereunder or otherwise.

 

(d)          Lender may deal
with Borrower and Affiliates of Borrower in the same manner and as freely as if this Guaranty did not exist and shall be entitled,
among other things, to grant Borrower or any other Person such extension or extensions of time to perform any act or acts as may
be deemed advisable by Lender, at any time and from time to time, without terminating, affecting or impairing the validity of this
Guaranty or the obligations of Guarantor hereunder.

 

(e)          No compromise,
alteration, amendment, modification, extension, renewal, release or other change of, or waiver, consent, delay, omission, failure
to act or other action with respect to, any liability or obligation under or with respect to, or of any of the terms, covenants
or conditions of, the Loan Documents shall in any way alter, impair or affect any of the obligations of Guarantor hereunder, and
Guarantor agrees that if any Loan Document is modified with Lender’s consent, the Guaranteed Obligations shall automatically
be deemed modified to include such modifications.

 

(f)          Lender may proceed
to protect and enforce any or all of its rights under this Guaranty by suit in equity or action at law, whether for the specific
performance of any covenants or agreements contained in this Guaranty or otherwise, or to take any action authorized or permitted
under applicable law, and shall be entitled to require and enforce the performance of all acts and things required to be performed
hereunder by Guarantor. Each and every remedy of Lender shall, to the extent permitted by law, be cumulative and shall be in addition
to any other remedy given hereunder or now or hereafter existing at law or in equity.

 

(g)          No waiver shall
be deemed to have been made by Lender of any rights hereunder unless the same shall be in writing and signed by Lender, and any
such waiver shall be a waiver only with respect to the specific matter involved and shall in no way impair the rights of Lender
or the obligations of Guarantor to Lender in any other respect or at any other time.

 

(h)          At the option
of Lender, Guarantor may be joined in any action or proceeding commenced by Lender against Borrower in connection with or based
upon any other Loan Documents and recovery may be had against Guarantor in such action or proceeding or in any independent action
or proceeding against Guarantor to the extent of Guarantor’s liability hereunder, without any requirement that Lender first
assert, prosecute or exhaust any remedy or claim against Borrower or any other Person, or any security for the obligations of Borrower
or any other Person.

 

    	4

    	 

    

 

(i)          Guarantor agrees
that this Guaranty shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment is made
by Borrower or Guarantor to Lender and such payment is rescinded or must otherwise be returned by Lender (as determined by Lender
in its sole and absolute discretion) upon insolvency, bankruptcy, liquidation, reorganization, readjustment, composition, dissolution,
receivership, conservatorship, winding up or other similar proceeding involving or affecting Borrower or Guarantor, all as though
such payment had not been made.

 

(j)          In the event
that Guarantor shall advance or become obligated to pay any sums under this Guaranty or in connection with the Guaranteed Obligations
or in the event that for any reason whatsoever Borrower or any subsequent owner of the Property or any part thereof is now, or
shall hereafter become, indebted to Guarantor, Guarantor agrees that (i) the amount of such sums and of such indebtedness
and all interest thereon shall at all times be subordinate as to lien, the time of payment and in all other respects to all sums,
including principal and interest and other amounts, at any time owed to Lender under the Loan Documents, and (ii) Guarantor
shall not be entitled to enforce or receive payment thereof until the Debt has been indefeasibly paid in full. Nothing herein contained
is intended or shall be construed to give Guarantor any right of subrogation in or under the Loan Documents or any right to participate
in any way therein, or in the right, title or interest of Lender in or to any collateral for the Loan, notwithstanding any payments
made by Guarantor under this Guaranty, until the actual and irrevocable receipt by Lender of payment in full of all of the Debt.
If any amount shall be paid to Guarantor on account of such subrogation rights at any time when any such sums due and owing to
Lender shall not have been fully paid, such amount shall be paid by Guarantor to Lender for credit and application against such
sums due and owing to Lender.

 

(k)          Guarantor’s
obligations hereunder shall survive a foreclosure, deed-in-lieu of foreclosure or similar proceeding involving the Property and
the exercise by Lender of any of all of its remedies pursuant to the Loan Documents.

 

6.          Covenants.

 

(a)          As used in this
Section 6, the following terms shall have the respective meanings set forth below:

 

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

 

		(ii)	“Liquid Assets” shall mean
the liquid assets of Guarantor in the form of cash, readily marketable securities traded on a national exchange or on the National
Association of Securities Dealers Automatic Quotations (NASDAQ), obligations of the United States of America, or guaranteed by
the United States of America, corporate debt securities traded on a national exchange, Guarantor’s cash in partnerships
in which Guarantor is a partner (but only to the extent that such cash is available for distribution to Guarantor and unencumbered),
and such other investments as may be acceptable to Lender in its sole discretion.

 

		(iii)	“Net Worth” shall mean, as
of a given date, (x) the total assets of Guarantor (excluding the value of Guarantor’s direct and indirect interests in
Borrower and the Property) as of such date less (y) Guarantor’s total liabilities as of such date, determined in accordance
with GAAP.

 

    	5

    	 

    

 

(b)          Until all of
the Guaranteed Obligations have been paid in full, Guarantor shall maintain Liquid Assets in excess of $215,000.00, and (ii) shall
not sell, pledge, mortgage or otherwise transfer any of its assets, or any interest therein, on terms materially less favorable
than would be obtained in an arms-length transaction.

 

(c)          Guarantor shall
not, at any time while a default in the payment of the Guaranteed Obligations has occurred and is continuing, either (i) enter
into or effectuate any transaction with any Affiliate which would reduce the Net Worth of Guarantor or (ii) sell, pledge, mortgage
or otherwise transfer to any Person any of Guarantor’s assets, or any interest therein.

 

7.          Entire
Agreement/Amendments. This instrument represents the entire agreement between the parties with respect to the subject matter
hereof. The terms of this Guaranty shall not be waived, altered, modified, amended, supplemented or terminated in any manner whatsoever
except by written instrument signed by Lender and Guarantor.

 

8.          Successors
and Assigns. This Guaranty shall be binding upon Guarantor, and Guarantor’s estate, heirs, personal representatives,
successors and assigns, may not be assigned or delegated by Guarantor and shall inure to the benefit of Lender and its successors
and assigns.

 

9.          Applicable
Law and Consent to Jurisdiction. This Guaranty shall be governed by, and construed and enforced in accordance with, the
substantive laws of the State in which the Property is located. Guarantor irrevocably (a) agrees that any suit, action or
other legal proceeding arising out of or relating to this Guaranty may be brought in a court of record in the City and County in
which the Property is located or in the Courts of the United States of America located in the District where the Property is located,
(b) consents to the non-exclusive jurisdiction of each such court in any such suit, action or proceeding and (c) waives
any objection which it may have to the laying of venue of any such suit, action or proceeding in any of such courts and any claim
that any such suit, action or proceeding has been brought in an inconvenient forum. Guarantor irrevocably consents to the service
of any and all process in any such suit, action or proceeding by service of copies of such process to Guarantor at its address
provided in Section 14 hereof. Nothing in this Section 9, however, shall affect the right of Lender to
serve legal process in any other manner permitted by law or affect the right of Lender to bring any suit, action or proceeding
against Guarantor or its property in the courts of any other jurisdictions.

 

10.          Section
Headings. The headings of the sections and paragraphs of this Guaranty have been inserted for convenience of reference
only and shall in no way define, modify, limit or amplify any of the terms or provisions hereof.

 

11.          Severability.
Any provision of this Guaranty which may be determined by any competent authority to be prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. To the extent permitted by applicable law, Guarantor hereby waives any provision of law
which renders any provision hereof prohibited or unenforceable in any respect.

 

12.          WAIVER
OF TRIAL BY JURY. GUARANTOR AND LENDER BY ITS ACCEPTANCE HEREOF EACH HEREBY WAIVES THE RIGHT OF TRIAL BY JURY IN ANY LITIGATION,
ACTION OR PROCEEDING ARISING HEREUNDER OR IN CONNECTION HEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND
VOLUNTARILY BY GUARANTOR AND LENDER, AND IS INTENDED TO ENCOMPASS EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL
BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE
OF THIS WAIVER OF TRIAL BY JURY BY GUARANTOR.

 

    	6

    	 

    

 

13.          Other
Guaranties. The obligations of Guarantor hereunder are separate and distinct from, and in addition to, the obligations
of Guarantor now or hereafter arising under any other guaranties, pursuant to which Guarantor has guaranteed payment and performance
of certain other obligations of Borrower described therein.

 

14.          Notices.
All notices, demands, requests, consents, approvals or other communications (collectively called “Notices”)
required or permitted to be given hereunder to Lender or Guarantor or which are given to Lender or Guarantor with respect to this
Guaranty shall be in writing and shall be sent by United States registered or certified mail, return receipt requested, postage
prepaid, addressed as set forth below, or personally delivered with receipt acknowledged to such address, or in either case, to
such other address(es) as the party in question shall have specified most recently by like Notice.

 

If to Lender, to:

 

Natixis Real Estate
Capital LLC

1251 Avenue of the
Americas

New York, New York
10020

Attention: Real Estate
Administration

 

with a copy to:

 

Nelson Mullins Riley
& Scarborough LLP

100 North Tryon Street,
42nd Floor

Charlotte, North Carolina
28202

Attention: D. Shane
Gunter, Esq.

 

If to Guarantor, to:

 

Presidential Realty Corporation

1430 Broadway, Suite 503

New York, New York 10018

Attention: Alexander Ludwig

 

with a copy to:

 

Blank Rome LLP

The Chrysler Building

405 Lexington Avenue

New York, NY 10174-0208

Attention: Samuel M. Walker,
Esq.

 

Notices which are given in the manner aforesaid
shall be deemed to have been given or served for all purposes hereunder (i) on the date on which such notice shall have been
personally delivered as aforesaid, (ii) on the date of delivery by mail as evidenced by the return receipt therefor, or (iii) on
the date of failure to deliver by reason of refusal to accept delivery or changed address of which no Notice was given.

 

    	7

    	 

    

 

15.          Guarantor’s
Receipt of Loan Documents. Guarantor by its execution hereof acknowledges receipt of true copies of all of the Loan Documents,
the terms and conditions of which are hereby incorporated herein by reference.

 

16.          Interest;
Expenses.

 

(a)          If Guarantor
fails to pay all or any sums due hereunder upon demand by Lender, the amount of such sums payable by Guarantor to Lender shall
bear interest from the date of demand until paid at the Default Rate in effect from time to time.

 

(b)          Guarantor hereby
agrees to pay all costs, charges and expenses, including reasonable attorneys’ fees and disbursements, which may be incurred
by Lender in enforcing the covenants, agreements, obligations and liabilities of Guarantor under this Guaranty.

 

17.          Joint
and Several Obligations. If Guarantor consists of more than one Person, each such Person shall have joint and several liability
for the obligations of Guarantor hereunder.

 

18.          Specific
Limitation on Guaranty and Indemnity Obligations. Guarantor and Lender hereby confirm that it is the intention of Guarantor
and Lender that this Guaranty not constitute a fraudulent transfer or fraudulent conveyance (a “Fraudulent Conveyance”)
under the Bankruptcy Code, the Uniform Fraudulent Conveyance Act or any other debtor relief law or insolvency law (whether statutory,
common law, case law or otherwise) or any jurisdiction whatsoever (collectively, the “Bankruptcy Laws”).
To give effect to the foregoing intention of Guarantor and Lender, each of such parties hereby irrevocably agrees that the Guaranteed
Obligations shall be limited to (but shall not be less than) such maximum amount as will, after giving effect to the maximum amount
of such obligations and all other liabilities (whether contingent or otherwise) of Guarantor that are relevant under such Bankruptcy
Laws, result in the Guaranteed Obligations not constituting a Fraudulent Conveyance under the Bankruptcy Laws, as of the date of
execution and delivery of this Guaranty.

 

19.          Counterparts.
This Guaranty may be executed in any number of counterparts, each of which when so executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument

 

 

[The
Remainder of the Page is Intentionally Blank]

 

 

 

 

 

 

    	8

    	 

    

 

 

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

 

 

	 	GUARANTOR:
	 	 
	 	PRESIDENTIAL REALTY CORPORATION,
	 	a Delaware corporation
	 	 
	 	 
	 	 
	 	By: 	/s/ Alexander Ludwig
	 	Name:

Title:	Alexander Ludwig
President

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