Document:

a102executedewbhartmanvr

                      REVOLVING PROMISSORY       NOTE  US $20,000,000.00                Houston, Texas               December 27, 2018         For Value Received, Hartman Spectrum, LLC, a Texas limited liability company, having  an address at 2909 Hillcroft Street, Suite 420, Houston, Texas 77057 ("Hartman Spectrum"),  Hartman 11211, LLC, a Texas limited liability company, having an address at 2909 Hillcroft  Street, Suite 420, Houston, Texas 77057 ("Hartman 11211"), and Hartman vREIT XXI  Operating Partnership L.P., a Texas limited partnership having an address at 2909 Hillcroft  Street, Suite 420, Houston, Texas 77057 ("Hartman Partnership"; and Hartman Spectrum,  Hartman 11211 and Hartman Partnership are collectively referred to herein as "Borrowers" and  each sometimes individually referred to as a "Borrower"), hereby promise to pay to the order of  East West Bank, a California state-chartered bank (together with its successors and assigns and  any subsequent holders of this Revolving Promissory Note (this "Note"), collectively, the  "Lender"), having an address at 9300 Flair Drive, 6th Floor, El Monte, California 91731, as  hereinafter provided, the principal sum of TWENTY MILLION and NO/100 Dollars (US  $20,000,000.00), together with interest on the unpaid principal balance of this Note from the date  of this Note, until paid, at the Applicable Interest Rate (as defined below).  Interest on this Note  shall be paid in arrears.  Principal under this Note shall, unless a Default (as defined below) has  occurred and is continuing in which case all principal, interest and other sums owing under this  Note shall be due upon demand by Lender, be due and payable at Lender's address set forth  above on the Maturity Date (as defined below).  Interest only under this Note shall be payable, at  Lender's address set forth above, in consecutive monthly installments on each Payment Date (as  defined below) in the following manner:   (1) with respect to the first Payment Date and each subsequent Payment Date prior to the first  Reset Date (as defined below), monthly installments of interest shall be payable in the amount  set forth in Lender's monthly Payment Notice (as defined below) sent to Borrowers; and   (2) for all Payment Dates thereafter, the amount set forth in the then relevant Payment Notice shall be payable covering such Payment Dates prior to the next succeeding Reset Date, except  that any remaining indebtedness of this Note, the Instrument or under any of the other Loan  Documents (as such terms are defined below) (including, but not limited to, all unpaid principal  outstanding under this Note accrued and unpaid interest on the then outstanding principal  balance of this Note), if not sooner due and payable, shall be due and payable on the Maturity Date.         For purposes of this Note, the following capitalized terms shall have the following  meanings:        "Applicable Interest Rate" shall mean (i) from and including the date of this Note to and        including the day immediately preceding the first Reset Date, the Initial Rate and (ii)        thereafter, the lesser of (A) the Maximum Legal Rate or (B) the PRIME Rate then in       REVOLVING PROMISSORY NOTE          1                   6760094 V4 (78055.00038.000) 

 

   effect (whether or not Borrowers have received a Payment Notice notifying Borrowers of     a change in the then current PRIME Rate); provided, however, that if at any time the rate     of interest specified in clauses (i) or (ii)(B) immediately above shall exceed the     Maximum  Legal Rate (in which event the Applicable Interest Rate is automatically     reduced to the Maximum Legal Rate), then any subsequent reduction in PRIME will not     reduce the Applicable Interest Rate below the Maximum Legal Rate until the total     amount of interest accrued hereunder equals the amount of' interest which would have     accrued if there had been no reduction to the Maximum Legal Rate.  A new Applicable     Interest Rate shall take effect immediately on the Reset Date whether or not Borrowers     have received a Payment Notice notifying Borrowers of the change in the Applicable     Interest Rate.     "Business Day" shall mean any day other than a Saturday or a Sunday or any day on     which commercial banks in Los Angeles, California, are authorized or required to close.     "day" shall mean a calendar day.     "Default Rate" shall mean a rate per annum of five percent (5%) above the then     Applicable Interest Rate.     "Initial Rate" shall mean five and four tenths of a percent (5.40%) per annum.     "Interest Period" shall mean the period commencing on each and every Reset Date     through and including the day immediately preceding the next succeeding Reset Date.     "Loan Agreement" shall mean that certain Master Credit Facility Agreement dated of     even date herewith executed by Borrowers and Lender governing the terms under which     the Loan will be advanced after the date hereof.     "Margin" shall mean a negative one tenth percent (0.10%) per annum.     "Maturity Date" shall mean December 27, 2021.     "Maximum Legal Rate" shall mean the greatest of the rates of interest from time to time     permitted under applicable federal law and the law of the State of Texas to be charged on     the Loan (as hereinafter defined).     "Payment Date" shall mean February 1, 2019 and the 1st day of each calendar month     thereafter, or if such day is not a Business Day the next succeeding Business Day.     "Payment Notice" shall mean a notice to Borrowers setting forth the amount of interest to     be paid on (a) the next Payment Date and (b) each of the next succeeding Payment Dates    thereafter until the next succeeding Reset Date, which notice shall be given by Lender not     more than ten (10) days after each Reset Date.  A Payment Notice shall also include     payment figures for the calendar month in which the Reset Date occurred showing the     number of days and amounts due at the old Applicable Interest Rate from the beginning     of such calendar month to the day immediately preceding the Reset Date and the number     of days and amounts due at the new Applicable Interest Rate from and including the    REVOLVING PROMISSORY NOTE          2                   6760094 V4 (78055.00038.000) 

 

   Reset Date to the end of such calendar month.  If a Payment Notice is delivered after the     Payment Date immediately succeeding the Reset Date, the Payment Notice shall, in     addition to the above information, provide that if Borrowers made their payment(s) on the     Payment Date(s) after such Reset Date (but prior to when the Payment Notice was     delivered) at the old Applicable Interest Rate then (x) if the Applicable Interest Rate     increased on the Reset Date in question, then Borrowers shall pay the difference in     amounts owed to Lender on the Payment Date immediately following when the Payment     Notice was delivered and (y) if the Applicable Interest Rate decreased on the Reset Date     in question, then Borrowers shall receive a credit in the amount overpaid by Borrowers to     Lender against the amount due on the Payment Date immediately following when the     Payment Notice was delivered.  Failure of Lender to timely give the Payment Notice     shall not waive Lender's right to subsequently give such notice or Borrowers' obligation     to make the payments determined in accordance with the provisions set forth above and     the immediately following sentence. The amounts set forth in the then applicable     Payment Notice shall be for the Interest Period for which the Payment Notice is given,     consisting of interest determined based on the Applicable Interest Rate for the then     current Interest Period and the principal amount outstanding on the then applicable Reset     Date.     "PRIME" for any Interest Period shall mean the rate of interest per annum quoted on the     day immediately preceding the Reset Date in the "Money Rates" section of the WSJ and     designated as the "Prime Rate" (determined on a 360 day, actual days elapsed basis).  If     such prime rate, as so quoted is split between two or more different interest rates, then the     Prime shall be the highest of such interest rates.  If such prime rate shall cease to be     published or is published infrequently or sporadically, then the Prime shall be the rate of     interest per annum established from time to time by Lender and designated as its base or     prime rate, which may not necessarily be the lowest interest rate charged by Lender and     is set by Lender in its sole discretion.         "PRIME Rate" shall mean the sum of PRIME minus the Margin.  PRIME Rate may not     be the lowest interest rate offered by Lender to its customers.     "Properties" means Mortgaged Properties as defined in the Loan Agreement.     "Reset Date" " shall mean the date occurring on or after the first Payment Date that either     (a) a change in PRIME occurs, whether or not Borrowers have received a Payment     Notice of such change in PRIME or (b) Borrowers either (i) make a payment of principal     under this Note in any amount for any reason or (ii) Borrowers or any single Borrower     (as such terms are then currently defined on the date of such advance) receives an     advance of principal from Lender under this Note (it being acknowledged by Borrowers     that more than one Reset Date may occur before Borrowers receive a new Payment     Notice).     "WSJ" shall mean the U.S. Edition of The Wall Street Journal.   REVOLVING PROMISSORY NOTE          3                   6760094 V4 (78055.00038.000) 

 

      Interest on the principal sum of this Note shall be calculated on a 365/360 basis; that is,  by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding  principal balance, multiplied by the actual number of days the principal balance is outstanding.  The Loan will be advanced in accordance with the terms of this Note and the Loan Agreement  and the indebtedness evidenced by this Note (the "Loan") is, initially secured by, among other  things, (a) those two certain Deeds of Trust, Assignment of Rents and Security Agreement  (collectively, the "Instruments") dated of even date herewith, executed by Borrowers encumbering two (2) separate tracts of real property more particularly described therein  (collectively, the "Properties"), and reference is made thereto for rights as to acceleration of the  Loan, and (b) that certain Guaranty (herein so referenced) dated of even date herewith, executed  by Hartman vREIT XXI, Inc., a Maryland corporation ("Guarantor") for the benefit of Lender.   This Note, the Loan Agreement, the Guaranty, the Instruments and all other instruments and/or  agreements evidencing, securing, governing or guaranteeing the Loan are collectively referred to  herein as the "Loan Documents" and individually as a "Loan Document".  All notices hereunder  shall be delivered and become effective as provided in the Instrument for notices thereunder.        If any Default (as defined in the Loan Agreement) shall occur and is continuing, the  entire principal amount outstanding hereunder and accrued interest thereon shall at once become  due and payable, at the option of Lender.  Lender may exercise this option to accelerate during  any Default by Borrowers or Hartman vREIT XXI, Inc., a Maryland corporation ("Guarantor";  and Borrowers and Guarantor are collectively referred to herein as the "Loan Parties", and  sometimes referred to herein individually as a "Loan Party") regardless of any prior forbearance.   In the event of any Default and if the same is referred to an attorney at law for collection or any  action at law or in equity is brought with respect thereto, Borrowers shall pay Lender all  reasonable expenses and costs, including, but not limited to, attorney's fees and costs.        In addition to the definitions set forth above, for purposes of this Note, the following  capitalized terms shall have the following meanings:        "Capital Expenditure" means any expenditure by Borrowers for an asset which will be        used in a year or years subsequent to the year in which the expenditure is made and        which asset is properly classified in relevant financial statements of the Loan Parties as        equipment, real property, a fixed asset or a similar type of capitalized asset in accordance        with GAAP.        "Casualty" means a fire, explosion, flood, collapse, earthquake or other casualty affecting        all or any portion of any of the Properties.        "Condemnation" means a taking or voluntary conveyance of all or part of any of the        Properties or any interest in or right accruing to or use of any of the Properties, as the        result of, or in settlement of, any condemnation or other eminent domain proceeding by        any appropriate governmental authority.        "GAAP" means generally accepted accounting principles, applied on a consistent basis,        as set forth in opinions of the Accounting Principles Board of the American Institute of        Certified Public Accountants and/or in statements of the Financial Accounting Standards       REVOLVING PROMISSORY NOTE          4                   6760094 V4 (78055.00038.000) 

 

   Board and/or their respective successors and which are applicable in the circumstances as     of the date in question.  Accounting principles are applied on a "consistent basis" when     the accounting principles applied in a current period are comparable in all material     respects to those accounting principles applied in a preceding period.     "ICR" means, with respect to the Test Period, the ratio of (a) Net Operating Income for     the Test Period divided (b) the then current monthly payment of interest under this Note,     annualized.     "Loss Proceeds" means amounts, awards or payments payable to Borrowers or Lender in     respect of all or any portion of any of the Properties in connection with a Casualty or     Condemnation thereof (after the deduction therefrom and payment to Borrowers and     Lender, respectively, of any and all reasonable expenses incurred by Borrowers and     Lender in the recovery thereof, including all attorneys' fees and disbursements, the fees of     insurance experts and adjusters and the costs incurred in any litigation or arbitration with     respect to such Casualty or Condemnation).     "Net Operating Income" means, with respect to the Test Period, the excess of (i)     Operating Income (other than percentage rent and other income not considered base rent)     for the Test Period plus the actual percentage rent and other income not considered base     rent actually received by Borrowers during the Test Period, minus (ii) Operating     Expenses for the Test Period.     "Operating Expenses" means, for the Test Period, all operating, renting, administrative,     management, legal and other ordinary expenses of Borrowers and all of the Properties     actually paid by Borrowers during the Test Period, determined in accordance with the     GAAP;  provided, however, that such expenses shall not include (i) depreciation,     amortization or other non-cash items, (ii) interest, principal or any other sums due and     owing with respect to the Loan, (iii) income taxes or other taxes in the nature of income     taxes, (iv) Capital Expenditures, or (v) equity distributions.     "Operating Income" means, for any period, gross revenues from all of the Properties     during the Test Period, determined in accordance with GAAP (but without straight-lining     of rents) and as adjusted by Lender to normalize such income, other than (i) Loss     Proceeds (but Operating Income will include rental loss insurance proceeds to the extent     allocable to such period), (ii) any revenue attributable to a Lease (as defined in the     Instrument) to the extent it is paid more than 30 days prior to the due date, (iii) any     interest income from any source, (iv) any repayments received from any third party of     principal loaned or advanced to such third party borrower permitted by Lender in its sole     discretion, (v) any proceeds resulting from the Transfer of all or any portion of any of the     Properties permitted by Lender in its sole discretion, (vi) sales, use and occupancy or     other taxes on receipts required to be accounted for by Borrowers to any government or     governmental agency, and (vii) any other extraordinary or non-recurring items.     "Transfer" means the sale or other whole or partial conveyance of all or any portion of     any of the Properties or any direct or indirect interest therein (other than the Other     Properties and Businesses as defined in the Instrument) to a third party, including    REVOLVING PROMISSORY NOTE          5                   6760094 V4 (78055.00038.000) 

 

      granting of any purchase options, rights of first refusal, rights of first offer or similar        rights in respect of any portion of any of the Properties or the subjecting of any portion of        any of the Properties to restrictions on transfer permitted by Lender in its sole discretion;        except that the leasing of lease space at any of the Properties in accordance with the terms        of the Instrument shall not constitute a Transfer.  Notwithstanding the foregoing, a        "Transfer" should not include any merger or "roll up" approved by Lender pursuant to        Section 19(b) of the Instrument.        "Test Period" means the 12-month period commencing on January 1, 2019 and ending on        December 31, 2019 and each immediately successive 12-month period thereafter.        At the end of the first (1st) anniversary of this Note, in the event the combined ICR of the  Properties for the Test Period is less than 1.50, then Lender, after receiving the information  allowing Lender to calculate the ICR (whether from Borrowers or otherwise), may, at Lender's  sole option, send a written notice to Borrowers of such event and Borrowers, within twenty (20)  days of receipt of such written notice from Lender, shall pay down the unpaid principal balance  of this Note by an amount which would cause the combined ICR of the Properties for the Test  Period to equal 1.50 or greater and (a) upon such pay down the interest payments due under this  Note shall be recalculated by Lender at the then current Applicable Interest Rate to be paid on  each Payment Date thereafter and (b) the Lender, shall send a notice of re-calculation to  Borrowers notifying Borrowers of the new interest payment to be paid by Borrowers to Lender  thereafter on each Payment Date.        If any installment under this Note (other than the last installment paid on the Maturity  Date) is not received by Lender within ten (10) calendar days after the installment is due,  Borrowers shall pay to Lender a late charge of the greater of (a) US $250.00 or (b) five percent  (5%) of such installment, such late charge to be immediately due and payable without demand by  Lender.  If any installment under this Note or any other monetary payment due under this Note,  the Instrument or any other Loan Document is not received by Lender when such payment is due  and payable under the applicable Loan Document, the outstanding principal balance of this Note  shall bear interest at the Default Rate during the period from the original date such payment was  due through and including the date such payment is actually received by Lender, or if any non- monetary Default under this Note, the Instruments or any other Loan Document shall occur and  is continuing, the outstanding principal balance of this Note shall bear interest at the Default Rate during the period any of the Loan Parties is in Default, or, if such increased rate of interest may  not be collected from Borrowers under applicable law, then at the maximum increased rate of  interest, if any, which may be collected from Borrowers under applicable law.          From time to time, without affecting the obligation of Borrowers or the successors or  assigns of Borrowers to pay the outstanding principal balance of this Note and observe the  covenants of Borrowers contained herein, in the Instruments or in any other Loan Document,  without affecting the guaranty of any person, corporation, partnership or other entity for payment  of the outstanding principal balance of this Note, without giving notice to or obtaining the  consent of Borrowers or guarantors, the successors or assigns of Borrowers or guarantors, and  without liability on the part of Lender, Lender may, at the option of Lender, extend the time for  payment of said outstanding principal balance or any part thereof and/or any interest accrued  thereon, reduce the payments thereon, release anyone liable on any of said outstanding principal       REVOLVING PROMISSORY NOTE          6                   6760094 V4 (78055.00038.000) 

 

balance, or any part thereof and/or any interest accrued thereon, accept a renewal of this Note,  modify the terms and time of payment of said outstanding principal balance and/or any interest  accrued thereon, join in any extension or subordination agreement, release any security given  herefor, take or release other or additional security, and agree in writing with Borrowers to  modify the rate of interest or period of amortization of this Note or change the amount of the  monthly installments payable hereunder.        Borrowers may prepay this Note in full at any time, or in part from time to time, without  premium or penalty; provided, however, Borrowers may only prepay this Note pursuant to the  following terms of this paragraph: (a) Borrowers may not make any prepayment under this Note  so long as a Default has occurred and is continuing either on the date a Prepayment Notice (as  defined below) is received by Lender or on the Payment Date on which such prepayment is to  occur; (b) Borrowers may make a prepayment of this Note on a Payment Date upon giving  Lender two (2) days prior written notice (a "Prepayment Notice") of the proposed prepayment;  and (c) any prepayment must be made with all other payments due and payable on such Payment  Date.         The unpaid balance of this Note shall increase and decrease with each new advance or  payment hereunder, as the case may be.  This Note shall not be deemed terminated or canceled  prior to the date of its maturity, although the entire principal balance hereof may from time to  time be paid in full.  Borrowers may borrow, repay and re-borrow hereunder for Operational  Purposes and Acquisition/Refinance Purposes (as such terms are defined in the Loan Agreement)  in accordance with the terms of the Loan Agreement. All payments and prepayments of principal  or interest on this Note shall be made in lawful money of the United States of America in  immediately available funds, at the address of Lender indicated above, or such other place as the  holder of this Note shall designate in writing to Borrowers.  If any payment of principal or  interest on this Note shall become due on a day which is not a Business Day, such payment shall  be made on the next succeeding Business Day and any such extension of time shall be included  in computing interest in connection with such payment.  The books and records of Lender shall  be prima facie evidence of all outstanding principal of and accrued and unpaid interest on this  Note.        This Note shall be governed by and construed in accordance with the laws of the State of  Texas and applicable federal law.        It is the intent of Borrowers and Lender and all other parties to the Loan Documents to  conform to and contract in strict compliance with applicable usury laws from time to time in  effect. All agreements between Lender and Borrowers (or any other party liable with respect to  any indebtedness under the Loan Documents) are hereby limited by the provisions of this  paragraph which shall override and control all such agreements, whether now existing or  hereafter arising and whether written or oral. In no way, nor in any event or contingency  (including but not limited to prepayment, default, demand for payment, or acceleration of the  maturity of any obligation), shall the interest taken, reserved, contracted for, charged or received  under this Note or otherwise, exceed the maximum nonusurious amount permissible under  applicable law. If, from any possible construction of any document, interest would otherwise be  payable in excess of the maximum nonusurious amount, any such construction shall be subject to  the provisions of this paragraph and such document shall be automatically reformed and the       REVOLVING PROMISSORY NOTE          7                   6760094 V4 (78055.00038.000) 

 

interest payable shall be automatically reduced to the maximum nonusurious amount permitted  under applicable law, without the necessity of execution of any amendment or new document. If  Lender shall ever receive anything of value which is characterized as interest under applicable  law and which would apart from this provision be in excess of the maximum lawful amount, an  amount equal to the amount which would have been excessive interest shall, without penalty, be  applied to the reduction of the principal amount owing on the indebtedness evidenced hereby in  the inverse order of its maturity and not to the payment of interest, or refunded to Borrowers or  any other payor thereof if and to the extent such amount which would have been excessive  exceeds such unpaid principal. The right to accelerate maturity of this Note or any other  indebtedness does not include the right to accelerate any interest which has not otherwise  accrued on the date of such acceleration, and Lender does not intend to charge or receive any  unearned interest in the event of acceleration. All interest paid or agreed to be paid to Lender  shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread  throughout the full stated term (including any renewal or extension) of such indebtedness so that  the amount of interest on account of such indebtedness does not exceed the maximum  nonusurious amount permitted by applicable law. As used in this paragraph, the term "applicable  law" shall mean the laws of the State of Texas or the federal laws of the United States, whichever  laws allow the greater interest, as such laws now exist or may be changed or amended or come  into effect in the future.        BORROWERS    HEREBY  KNOWINGLY,    VOLUNTARILY    AND  INTENTIONALLY  WAIVE  ANY RIGHT BORROWERS     MAY HAVE TO A TRIAL BY JURY IN RESPECT TO  ANY   LITIGATION   BASED   HEREON,   OR   ARISING   OUT  OF,  UNDER    OR  IN  CONJUNCTION    WITH   THIS   NOTE,  THE   INSTRUMENT,    ANY   OTHER    LOAN  DOCUMENT,   ANY   OTHER   AGREEMENT    CONTEMPLATED     TO  BE  EXECUTED   IN  CONNECTION   HEREWITH,   OR ANY  COURSE   OF CONDUCT,   COURSE   OF DEALING,  STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY          PARTY.        THIS NOTE IS BEING EXECUTED AND DELIVERED, AND IS INTENDED TO BE  PERFORMED IN THE STATE OF TEXAS.  EXCEPT TO THE EXTENT THAT THE LAWS  OF THE UNITED STATES MAY APPLY TO THE TERMS HEREOF, THE SUBSTANTIVE  LAWS OF THE STATE OF TEXAS SHALL GOVERN THE VALIDITY, CONSTRUCTION,  ENFORCEMENT    AND   INTERPRETATION    OF  THIS NOTE.   IN  THE  EVENT  OF  A  DISPUTE  INVOLVING    THIS NOTE,   THE  INSTRUMENT    OR  ANY   OTHER   LOAN  DOCUMENTS,    THE  UNDERSIGNED    IRREVOCABLY     AGREES   THAT   VENUE   FOR  SUCH  DISPUTE  SHALL   LIE IN ANY   COURT   OF  COMPETENT    JURISDICTION  IN  HARRIS COUNTY, TEXAS.        IF MORE   THAN   ONE   PERSON   OR  ENTITY   EXECUTES   THIS  NOTE   AS  BORROWER, ALL OF SAID PARTIES SHALL BE JOINTLY AND SEVERALLY LIABLE  FOR THE  REPAYMENT    OF THE  LOAN.   PRESENTMENT    FOR PAYMENT,   DEMAND,  NOTICE   OF  NONPAYMENT      OR  NONPERFORMANCE,       PROTEST,   NOTICE   OF  PROTEST, NOTICE OF INTENT TO ACCELERATE, NOTICE OF ACCELERATION, AND  ALL  OTHER    NOTICES   (EXCEPT    ONLY   FOR   ANY   NOTICES    WHICH    ARE  SPECIFICALLY   REQUIRED   BY  THIS NOTE,  THE  INSTRUMENT    OR  ANY   OTHER  LOAN  DOCUMENT),   FILING OF SUIT  AND DILIGENCE   IN COLLECTING THIS NOTE  OR ENFORCING    ANY  OF  THE  SECURITY   HEREFOR   ARE  HEREBY   WAIVED    BY       REVOLVING PROMISSORY NOTE          8                   6760094 V4 (78055.00038.000) 

 

BORROWERS,    GUARANTORS,    ENDORSERS,   SURETIES  AND   ANY  OTHER   PARTY  NOW OR HEREAFTER LIABLE FOR THE PAYMENT OF THIS NOTE IN WHOLE OR IN  PART.   THIS  NOTE   SHALL   BE  THE  JOINT  AND   SEVERAL   OBLIGATION    OF  BORROWERS,    ALL  MAKERS,   SURETIES,  GUARANTORS    AND   ENDORSERS,   AND  SHALL  BE   BINDING  UPON   THEM    AND  THEIR   SUCCESSORS    AND   ASSIGNS.   BORROWERS, AND ANY ENDORSERS, GUARANTORS, SURETIES AND ANY OTHER  PARTY NOW OR HEREAFTER LIABLE FOR THE PAYMENT OF THIS NOTE IN WHOLE  OR IN PART,  HEREBY   SEVERALLY   WAIVE   AND  RELINQUISH,   TO THE  FULLEST  EXTENT   PERMITTED    BY  LAW,   ALL   RIGHTS   TO  THE   BENEFITS   OF  ANY  MORATORIUM,    REINSTATEMENT,     MARSHALING,    FORBEARANCE,    VALUATION,  STAY, EXTENSION, REDEMPTION, APPRAISEMENT, EXEMPTION AND HOMESTEAD  NOW  OR  HEREAFTER    PROVIDED   BY  THE  CONSTITUTION    AND  LAWS   OF  THE  UNITED STATES OF AMERICA AND OF EACH STATE THEREOF, BOTH AS TO ITSELF  AND  IN AND  TO  ALL  OF ITS PROPERTY,   REAL  AND  PERSONAL,   AGAINST   THE  ENFORCEMENT     OF   THE  OBLIGATIONS     EVIDENCED    BY   THIS  NOTE,   THE  INSTRUMENT OR ANY OTHER LOAN DOCUMENTS.        Lender shall have the right to assign, in whole or in part, this Note, the Instrument and  any other Loan Document and all of its rights hereunder and thereunder, and all of the provisions  herein and therein shall continue to apply to the Loan. Lender and any subsequent holder hereof  shall have the right to participate the Loan with other parties.        In no event shall Chapter 346 of the Texas Finance Code (which regulates certain  revolving loan accounts and revolving tri-party accounts) apply to this Note.  To the extent that  Chapter 303 of the Texas Finance Code is applicable to this Note, the "weekly ceiling" specified  in such article is the applicable ceiling; provided that, if any applicable law permits greater  interest, the law permitting the greatest interest shall apply.        Borrowers agree that no advances under this Note shall be used for personal, family or  household purposes, and that all advances hereunder shall be used solely for business,  commercial, investment, or other similar purposes.            [Remainder of Page Intentionally Left Blank.  Signature Page Follows.]      REVOLVING PROMISSORY NOTE          9                   6760094 V4 (78055.00038.000)Exhibit
4.1

 

THE BANK OF NEW YORK MELLON

NEW YORK’S FIRST BANK-FOUNDED 1784 BY ALEXANDER HAMILTON

 

 

2 HANSON PLACE, 12TH FLOOR, BROOKLYN,
N.Y. 11217

 

 

 

January 3, 2019

 

Hennion & Walsh, Inc.

2001 Route 46, Waterview Plaza

Parsippany, New Jersey 07054

 

Smart Trust 411 (the “Fund”)

 

Dear Sirs:

The Bank of New York
Mellon is acting as trustee for the Fund, consisting of the unit investment trusts (the “Trusts”) included in
the Registration Statement relating to the Fund. We enclosed a list of the securities to be deposited in the Trusts on the date
hereof. The prices indicated therein reflect our evaluation of such securities as of close of business on January 2, 2019, in accordance
with the valuation method set forth in the applicable Standard Terms and Conditions of Trust and Trust Agreements. We consent to
the reference to The Bank of New York Mellon as the party performing the evaluations of the Trust securities in the Registration
Statement (No. 333-228418) filed with the Securities and Exchange Commission with respect to the registration of the sale of the
Units of the Trusts and to the filing of this consent as an exhibit thereto.

 

Very truly yours,

 

/s/ GERARDO CIPRIANO_________________

Gerardo Cipriano

Vice President

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