Document:

Exhibit 10.1

 

ASSIGNMENT, ASSUMPTION AND RELEASE AGREEMENT

 

THIS ASSIGNMENT, ASSUMPTION
AND RELEASE AGREEMENT (this “Agreement”) is made as of this 31st day of August, 2021, by and among MEDALIST
FUND II-B, LLC, a Delaware limited liability company, whose address is 1051 E. Cary Street, Suite 601, Richmond, Virginia 23219
(the "Seller"), THOMAS E. MESSIER, whose address is 207 Massle Road, Richmond, Virginia 23221, WILLIAM R. ELLIOTT,
whose address is 9 Albemarle Avenue, Richmond, Virginia 23226, and Medalist Fund II, LLC, whose address is 1051 E. Cary Street, Suite
601, 23226 (collectively, the “Guarantors”), MDR GREENBRIER, LLC, a Delaware limited liability company,
whose address is 1051 E. Cary Street, Suite 601, 23226 (“MDR” and/or the “Buyer”), and THE
OLD POINT NATIONAL BANK OF PHOEBUS, whose address is 1 West Mellen Street, Hampton, Virginia 23663 (the “Lender”).

 

RECITALS

 

A.WHEREAS, pursuant to the provisions
of that certain Commitment Letter dated June 4, 2021, issued by the Lender and accepted by Seller, as amended (the “Commitment”),
and that certain Business Loan Agreement dated June 7, 2021 between Lender and Seller (the “Loan Agreement”), Lender
made a loan in the original amount of FOUR MILLION, FOUR HUNDRED NINTY FIVE THOUSAND AND NO/100 DOLLARS ($4,495,000.00) to Seller (the
 “Loan”); and

 

B.       WHEREAS,
Seller's obligation to repay the Loan is evidenced by that certain promissory note dated June 7, 2021 in the original principal amount
of FOUR MILLION, FOUR HUNDRED NINTY FIVE THOUSAND AND NO/100 DOLLARS ($4,495,000.00) made by Seller and payable to the order of Lender
(the “Note”); and

 

C.       WHEREAS,
the Note is secured by that certain Deed of Trust, dated June 7, 2021, from Seller, as Grantor, to Donald S. Buckless, a Virginia resident,
whose business address is 101 East Queen Street, Hampton, Virginia 23669, and Thomas A. Burcher, a Virginia resident, whose business address
is 1 East Queens Way, Hampton, Virginia 23669, as Trustees, either of whom may act (the “Lender’s Trustees”), for the
benefit of Lender, recorded in the Clerk’s Office of the Circuit Court of Chesapeake, Virginia (the “Clerk’s Office”),
in Deed Book 10386, at page 1207 (the "Deed of Trust") on that certain land and the improvements thereon located at 1244
Executive Blvd., Chesapeake, Virginia 23320 (the "Property"), as more particularly described in Exhibit A
to the Deed of Trust; and

 

D.       WHEREAS,
repayment of the Note is further secured by an Assignment of Rents, dated June 7, 2021, from the Seller as Grantor, to the Lender, for
the benefit of the Lender, recorded in the Clerk’s Office in Deed Book 10386, at page 1225 (the “Assignment of Leases”);
and

 

E.       WHEREAS,
repayment of the Note is further secured by a Security Agreement dated June 7, 2021 from the Seller, as Debtor, to the Lender, for the
benefit of the Lender and appropriately filed UCC-1 Financing Statements, filed for record in the Delaware Department of State U.C.C.
Filing Section, as U.C.C. Initial Filing No. 2021 4522299 on June 10, 2021, in the Chesapeake Circuit Court Clerk’s Office at Deed
Book 02021, at page 0635 as Instrument Number 00635, and with the Virginia State Corporation Commission (the “SCC”) as UCC-1
Statement Number 20210617063524 (collectively, the “Security Agreement”); and

 

     

     

    

 

F.       WHEREAS,
the Guarantors guaranteed payment of the Note in those certain Commercial Guarantees, dated June 7, 2021 (the “Guarantees”);
and

 

G.       WHEREAS,
the Seller and Lender executed that certain Business Loan Agreement, dated June 7, 2021 (the “Loan Agreement”); and

 

H.       WHEREAS,
the Seller, the Guarantors and the Lender executed that certain Omnibus Addendum to the Loan Documents, dated June 7, 2021 (the “Addendum”);
and

 

I.       WHEREAS,
the Seller and Lender executed that certain Hazardous Substances Certificate and Indemnity Agreement, dated June 7, 2021 (the “Hazardous
Substances Indemnity”); and

 

J.       WHEREAS,
the Seller and Lender have executed other documents in connection with the loan which, together with the documents listed above, are herein
referred to, individually and collectively, as the “Loan Documents”; and

 

M.       WHEREAS,
Seller has sold and conveyed, or is about to sell and convey, the Property to Buyer, and Buyer has requested that Lender permit Buyer
to assume the Loan and all the obligations and liabilities of Seller under the Commitment, the Loan Agreement, the Note, the Deed of Trust,
the Assignment of Leases, the Guarantees, the Security Agreement, the Loan Agreement, the Addendum, the Hazardous Substances Indemnity
and the other Loan Documents; and

 

N.       WHEREAS,
Lender and Lender’s Trustees have agreed to such sale and the conveyance from Seller to Buyer and to such assumption by Buyer subject
to the provisions of this Agreement.

 

NOW, THEREFORE, in consideration
of the foregoing premises, the promises and covenants contained in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Seller, Buyer, Lender, Guarantors and Lender’s Trustees agree as follows:

 

1.                 
Status of Note and Escrow Account. As of the date of this Agreement, the outstanding principal balance of the Note is $,
the interest rate on the Note is 4.90%, and accrued and unpaid late charges due from the Seller total $0.00. Interest is paid through.
Buyer, Seller and Guarantors agree that such amounts are due and payable without defense, setoff or counterclaim. As of the date of ,
the sum of $__________ is being held in the Escrow Account.

 

2.                 
Consent to Transfer. The Lender and its Trustees each consent to the transfer and sale of the Property to Buyer subject to the
terms of this Agreement, but do not otherwise consent to any other or further assignment or transfer of the Property. Only with the express
consent of the Lender shall the Buyer finance the purchase of the Property and place a lien or liens thereon to secure such financing,
which if approved, any lien will be at all times junior to the lien of the Deed of Trust. The consent of the Lender to the transfer of
the Property to Buyer shall not otherwise constitute a waiver of any provisions of the Loan Documents.

 

    2 

     

    

 

3.                 
Assumption. Buyer unconditionally assumes the Loan and assumes and agrees to perform, be bound by, be liable for, and be subject
to all the obligations and liabilities of Seller under the Loan Documents. Buyer further unconditionally assumes and agrees to pay any
and all indebtedness now due or which may become due under the Note or the other Loan Documents. Each reference in any Loan Document to
Seller also shall be deemed to be a reference to Buyer, and Buyer shall hereafter be deemed the Grantor under the Deed of Trust.

 

In the event of a default
by Buyer under the Loan Documents or this Agreement, Lender shall be entitled to exercise all remedies available to it or them under the
terms of this Agreement and the Loan Documents, as well as all other remedies available to Lender at law or in equity.

 

4.                 
Affirmation. Except as modified in this Agreement, all terms of the Loan Documents shall remain unchanged and are ratified and
affirmed by all parties to this Agreement. Buyer and Seller acknowledge and agree that the execution, delivery and performance of this
Agreement shall not constitute a novation of any Loan Document and that the Loan Documents all continue in full force and effect.

 

5.                 
Limited Release of Seller. In reliance upon the representations, warranties and covenants set forth herein by Seller, Buyer, Guarantors,
Lender hereby releases Seller from any liability for repayment of the principal and interest due under the terms of the Loan Documents,
and any and all other borrower obligations under the Loan Documents, to the extent such obligations arise from matters first occurring
from and after the date of this Agreement.

 

6.                 
Assumption Fees and Other Fees and Costs. In consideration of the consent of Lender to the provisions of this Agreement, and to
compensate Lender for the time spent in obtaining approval of the assumption of the Loan by Buyer, Lender or its representatives or counsel
shall receive reimbursement for all of its out-of-pocket costs and expenses in connection with the negotiation and preparation of this
Agreement and the documents related to such assumption, including its attorneys’ fees and out-of-pocket costs and expenses. Payment
of these amounts must be made upon the closing of the transfer of the Property from Seller to Buyer. The consent of Lender and to the
transfer of the Property is expressly conditional upon the payment of such amounts. Such amounts shall be paid by Buyer in accordance
with the provisions of the sales contract between Buyer and Seller.

 

7.                 
Property Subject to Lien. The Property shall remain subject to the lien created by the Deed of Trust, and nothing contained in
this Agreement shall affect or be construed to affect such lien or the priority of such lien over other liens, charges or encumbrances
affecting the Property. Seller agrees that Lender may grant any extension, forbearance or other indulgence with respect to the Loan Documents,
or may release any security therefor or any person liable therefor without notice to or consent of Seller.

 

8.                 
Assignment of Leases and Rents. In the event that the Buyer executes any lease agreement with respect to the Property, Buyer will
provide Lender with a copy of any executed lease or leases covering all or any portion of the Property and will execute a Collateral Assignment
of Leases and Rents for the said leases referenced above.

 

    3 

     

    

 

9.                 
Buyer's Evaluation. Buyer represents and warrants that it has made an independent inspection and evaluation of the Property and
the business being conducted at the Property and that its decision to purchase the Property and assume the Loan is based upon that independent
evaluation and not upon any representations or inducements by Lender.

 

10.             
Warranties as to Existing Compliance of Property with Environmental Regulations. Seller and Buyer each represents and warrants
that, to the best of their knowledge, after due inquiry and investigation, the Property is now, and at all times since the date of the
Loan has been, in full compliance with all federal, state and local environmental laws, rules, regulations and ordinances, and that, to
the best of their knowledge, as of the date of this Agreement there are no hazardous materials, substances, wastes or other environmentally
regulated substances (including, without limitation, any materials containing asbestos) located on, in or under the Property or used in
connection therewith, except such as are in compliance with all applicable laws, rules, regulations and ordinances.

 

11.             
Future Compliance of Property with Environmental Regulations. Buyer agrees that during the term of the Note and any extensions
thereof, that Buyer and any tenant of the Property shall comply fully with all applicable local, state and federal laws, rules, regulations
and ordinances related to land use, zoning or protection of the environment, or to the generation, use, storage, removal, transportation,
handling or disposal of toxic materials or substances, as such substances may be identified or defined by such laws, rules, regulations
and/or ordinances from time to time. Buyer agrees that it shall not cause or permit to exist, as a result of any intentional or unintentional
act or omission on its part or on the part of any other tenant or occupant of the Property, a releasing, spilling, leaking, pumping, emitting,
pouring, emptying or dumping of a toxic material, hazardous substance or hazardous waste into air or waters, wildlife or other resources.
Buyer agrees to notify Lender promptly of any event or occurrence, whether occurring on the Property or on adjacent or nearby property,
which poses a risk of contamination by any hazardous substance, toxic material, hazardous waste or similar substance or materials (as
defined in or regulated by any applicable federal, state or local law, rule, regulation or ordinance) to the Property or such adjacent
or nearby property or of air or water on, under or near the Property or such adjacent or nearby property.

 

12.             
Indemnification. Seller and Buyer each acknowledges that Lender is relying upon their representations, warranties and covenants
as set forth above in consenting to the assumption of the Loan by Buyer. Seller and Buyer agree, jointly and severally, to indemnify,
defend and hold Lender harmless against any loss that Lender suffers, including but not limited to penalties, fines, claims, costs (including
clean-up costs) and other expenses incurred by Lender (including the expenses of environmental consultants) as a result of any inaccuracy
or any breach of the representations, warranties or covenants set forth above; provided, however, that Seller shall not have any liability
for the violation by Buyer of any representations, warranties or covenants provided in Section 10 of this Agreement, nor for any losses
arising out of or caused by the gross negligence or willful misconduct of Lender or its employees or agents. The indemnity obligations
of this Section shall not be limited by the term of the Note or any extensions thereof, but shall continue, survive and remain in full
force and effect notwithstanding payment in full and satisfaction of the Note and the Deed of Trust or the foreclosure or acceptance of
a deed in lieu of foreclosure with respect to the Property.

 

    4 

     

    

 

13.             
Guarantors’ Consent. Guarantors hereby consent to Buyer's assumption of the Loan and payment of any and all indebtedness
now due or which may become due under the Note or the other Loan Documents, and Buyer's agreement to perform, be bound by, be liable for,
and be subject to all the obligations and liabilities of Seller under the Loan Documents.

 

Guarantors further acknowledge
and agree that the execution, delivery and performance of this Agreement shall not constitute a novation of the Guarantees and that the
Guarantees continue in full force and effect, subject to the release contained in Section 5. Guarantors also agree that Lender may grant
any extension, forbearance or other indulgence with respect to the Loan or the Loan Documents, or may release any security therefor or
any person liable therefor without notice to or consent of Guarantors.

 

14.             
Buyer Unaffected by Default of Seller or Guarantors. Lender hereby agrees that no act or omission of Seller or Guarantors that
does or would constitute a default or an event of default by Seller or Guarantors under the Loan Documents will be considered a default
or an event of default by Buyer under the Loan Documents.

 

15.             
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia, without
reference to conflict of laws principles.

 

16.             
No Waiver. No waiver of a right, interest or remedy of Lender under this Agreement or any Loan Document shall be enforceable unless
it is in writing and signed by Lender. Except as specifically provided in writing signed by the party seeking enforcement thereof, the
failure to enforce or the waiver of any term, breach or default of this Agreement or any Loan Document shall not constitute the waiver
of such term, breach or default at any subsequent time or under any other circumstances and shall not give rise to any restriction on
or condition to the prompt, full and strict enforcement of this Agreement or such Loan Document thereafter.

 

17.             
Notices. Any notice required or permitted to be given under this Agreement shall be sufficient if (a) in writing and (b) either
(1) personally delivered or (2) sent by certified or registered mail, return receipt requested and postage prepaid, or (3) sent by
overnight U.S. Express mail or overnight letter (commercial courier), to the party's address as specified below:

 

	Buyer:	MDR Greenbrier, LLC	 
	 	 	 
	 	 	 
	Guarantor:	Thomas Messier	 
	 	207 Massie Road, Richmond, VA 23221	 
	 	 	 
	Guarantor:	William Elliott	 
	 	9 Albemarle Avenue, Richmond, VA 23226	 
	 	 	 
	Guarantor:	Medalist Fund, II, LLC	 
	 	 	 
	 	 	 
	Lender:
	The Old Point National Bank of Phoebus
	 
	 	Peninsula Landing, 1 West Mellen Street, Hampton, VA 23663
	 

 

    5 

     

    

 

Any notice required or permitted
to be given under this Agreement shall be deemed effective upon receipt. Notice of any change in address shall be given as set forth in
this Section. Any notice required or permitted to be given under any Loan Document shall be given first in accordance with the notice
provision(s) of such Loan Document; second, if there is no notice provision in such Loan Document, then in accordance with the notice
provision(s) of the Loan Agreement; or otherwise in accordance with this Section.

 

18.             
Modifications. No modification, waiver, extension, discharge or other change of this Agreement or of any Loan Documents shall be
binding unless executed in writing by the party against whom enforcement of any such modification, waiver, extension, discharge or change
is sought.

 

19.             
Binding Agreement. This Agreement applies to, inures to the benefit of, and binds all parties hereto, and their respective personal
representatives, heirs, successors and assigns.

 

20.             
Assignment. Neither Buyer, Seller nor Guarantors may assign, transfer, pledge or hypothecate in any way his, her or its rights,
interests or benefits under this Agreement and may not delegate the performance of his, her or its obligations under this Agreement without
the prior written consent of Lender.

 

21.             
Severability. In the event that a court of competent jurisdiction finds any provision(s) of this Agreement invalid, illegal or
unenforceable as applied to any circumstance, the remaining provisions of this Agreement, and the same provision(s) as applied to other
circumstances, shall be unimpaired and remain in full force and effect.

 

22.             
Entire Agreement. This Agreement (including any exhibits or other documents incorporated herein) contains the entire understanding
of the parties concerning the subject matter hereof and there are no other understandings or agreements between the parties with respect
thereto other than this Agreement. This Agreement supersedes all prior or contemporaneous understandings, agreements, representations,
promises or statements, whether written or oral, between the parties on the subject matter hereof, and all such prior or contemporaneous
understandings, agreements, representations, promises or statements, whether written or oral, are of no effect except as may be provided
in this Agreement.

 

23.             
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of
which together shall constitute one and the same agreement.

 

24.             
Authority. Each party hereby represents and warrants that its entry into and its performance of its obligations under this Agreement
are fully authorized and that all requisite corporate actions therefor have been taken by it, and the person signing this Agreement below
on such party's behalf represents and warrants that he or she is fully authorized to do so.

 

Signatures and notarial
acknowledgments follow

 

    6 

     

    

 

IN WITNESS WHEREOF, the parties
have executed this Agreement.

 

BUYER:

 

MDR
GREENBRIER, llc, a

Delaware limited liability company

 

		By:	Medalist Diversified Holdings, L.P., a

Delaware limited partnership

 

		Its:	Sole Member

 

		By:	Medalist Diversified REIT, Inc., a

Maryland corporation

		Its:	General Partner

 

	By:	/s/ William R. Elliott	 
	 	William R. Elliott	 
	 	Co-President	 

  

COMMONWEALTH OF VIRGINIA

CITY/COUNTY OF ______________________, TO-WIT:

 

The foregoing was duly acknowledged before
me, the undersigned Notary Public, this _____________ day of , 2021, by William R. Elliott, the duly authorized Co-President of
Medalist Diversified REIT, Inc., a Maryland corporation, which is the duly authorized General Partner of Medalist Diversified Holdings,
L.P., a Delaware limited partnership, the duly authorized Sole Member of MDR Greenbrier, LLC, a Delaware limited liability company, on
behalf of the said company. He is personally known to me or has produced as identification.

 

My commission expires on _______________________.

 

 

__________________________________
(SEAL)

Notary Public

 

Notarial Registration Number:______________________

 

    7 

     

    

 

SELLER:

 

MEDALIST FUND-II B, LLC, a Delaware limited
liability company

 

		By:	Medalist Fund II, LLC, a Delaware limited liability

company, its Sole Member

 

		By:	Medalist Fund Manager, Inc., a

Virginia Corporation

		Its:	Manager

 

	By:	/s/ Thomas E. Messier	 
	Name:	Thomas E. Messier	 
	Title:	Co-President	 

 

COMMONWEALTH OF VIRGINIA

CITY/COUNTY OF ______________________, TO-WIT:

 

The foregoing instrument
was sworn to and acknowledged before me this _____________ day of August, 2021, by, the duly authorized  of Medalist
Fund-II B, LLC, a Delaware limited liability company, the duly authorized Manager of Medalist Fund Manager, Inc., a Virginia corporation,
on behalf of the said company. He is personally known to me or has produced _______________________________as identification.

  

_______________________________
(SEAL)

Notary Public

 

	My commission expires:	 	 
	Notary Registration No.: 	 	 
	[Affix Notarial Stamp]	 	 

  

    8 

     

    

 

GUARANTOR:

 

 

/s/ Thomas Messier_________________________________
(SEAL)

Thomas Messier

 

COMMONWEALTH OF VIRGINIA

CITY/COUNTY OF ______________________, TO-WIT:

 

The foregoing was duly acknowledged before me,
the undersigned Notary Public, this _____________ day of ________________, 2021, by Thomas Messier. He is personally known to me or has
produced ________________ as identification.

 

My commission expires on _______________________.

  

__________________________________
(SEAL)

Notary Public

 

Notarial Registration Number:_________________

 

    9 

     

    

 

GUARANTOR:

 

William Elliott________________________________
(SEAL)

William Elliott

 

COMMONWEALTH OF VIRGINIA

CITY/COUNTY OF ______________________, TO-WIT:

 

The foregoing was duly acknowledged before
me, the undersigned Notary Public, this ____ day of _____________, 2021, by William Elliott. He is personally known to me or has produced
____________________ as identification.

 

My commission expires on _______________________.

 

__________________________________
(SEAL)

Notary Public

 

Notarial Registration Number:_________________

 

    10 

     

    

 

GUARANTOR:

 

MEDALIST FUND II, LLC, a

Delaware limited liability company

 

		By:	Medalist Fund Manager, Inc., a

Virginia corporation

		Its:	Sole Member

 

	By:	/s/ Thomas E. Messier	 (SEAL)
	 	Thomas E. Mesier	 
	 	Manager	 

  

COMMONWEALTH OF VIRGINIA

CITY/COUNTY OF _____________________, TO WIT:

 

The foregoing instrument was
sworn to and acknowledged before me this ____ day of August, 2021, by Thomas E. Messier, the duly authorized Manager of Medalist Fund
Manager, Inc., a Virginia corporation, which is the duly authorized Sole Member of Medalist Fund II, LLC, a Delaware limited liability
company, on behalf of the said company. He is personally known to me or has produced ___________________ as identification.

 

My commission expires on _______________________.

 

__________________________________
(SEAL)

Notary Public

 

Notarial Registration Number:______________________

 

    11 

     

    

 

LENDER: 

 

THE OLD POINT NATIONAL BANK OF PHOEBUS

 

	By:	/s/ Natasha Merz	 (SEAL)
	Name:	Natasha Merz	 
	Title: 	SVP, Market Executive	 

  

COMMONWEALTH OF VIRGINIA

AT LARGE, to-wit:

 

The foregoing instrument
was acknowledged before me in _______________, Virginia, this _____ day of August, 2021, by ____________, as ____________,
of The Old Point National Bank of Phoebus (the “Lender”), on behalf of the Lender. He/she is personally known to me or has
produced ____________ as identification.

 

	 	 	 
	 	Notary Public	 

 

	My commission expires:	 	 
	Notary Registration No.: 	 	 
	[Affix Notarial Stamp]	 	 

 

    12Exhibit 10.2

 

 

*000000955527950820780*

PROMISSORY NOTE

 

	Principal	Loan Date	Maturity	Loan No	Call / Coll	Account	Officer	Initials

 

	$4,495,000.00	06-07-2021	07-01-2026	527950820780	151 / 55		 225	 

 

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

 

Any item above containing "***"
has been omitted due to text length limitations.

 

	Borrower:	
    Medalist Fund II-B, LLC, a Delaware
    limited liability company

    1051 E Cary Street, Suite 601

    Richmond, VA 23219
	Lender:	
    THE OLD POINT NATIONAL BANK OF PHOEBUS

    Peninsula Lending

    1 West Mellen Street

    Hampton, VA 23663

 

	Principal Amount:  $4,495,000.00	Date of Note:  June 7, 2021

 

PROMISE TO PAY. Medalist Fund II-B, LLC,
a Delaware limited liability company ("Borrower") promises to pay to THE OLD POINT NATIONAL BANK OF PHOEBUS ("Lender"),
or order, in lawful money of the United States of America, the principal amount of Four Million Four Hundred Ninety-five Thousand &
00/100 Dollars ($4,495,000.00), together with interest on the unpaid principal balance from June 7, 2021, until paid in full.

 

PAYMENT. Borrower will pay this loan in
accordance with the following payment schedule, which calculates interest on the unpaid principal balances as described in the "INTEREST
CALCULATION METHOD" paragraph using the interest rates described in this paragraph: 12 monthly consecutive interest payments, beginning
August 1, 2021, with interest calculated on the unpaid principal balances using an interest rate of 4.000%; 47 monthly consecutive principal
and interest payments of $23,873.37 each, beginning August 1, 2022, with interest calculated on the unpaid principal balances using an
interest rate of 4.000%; and one principal and interest payment of $4,067,885.93 on July 1, 2026, with interest calculated on the unpaid
principal balances using an interest rate of 4.000%. This estimated final payment is based on the assumption that all payments will be
made exactly as scheduled; the actual final payment will be for all principal and accrued interest not yet paid, together with any other
unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid
interest; then to principal; then to any escrow or reserve account payments as required under any mortgage, deed of trust, or other security
instrument or security agreement securing this Note; then to any late charges; and then to any unpaid collection costs. Borrower will
pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. All payments must be made in U.S.
dollars and must be received by Lender consistent with any written payment instructions provided by Lender. If a payment is made consistent
with Lender's payment instructions but received after 5:00 P.M. Eastern Time, Lender will credit Borrower's payment on the next business
day.

 

INTEREST CALCULATION METHOD. Interest
on this Note is computed 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. All interest payable
under this Note is computed using this method.

 

PREPAYMENT PENALTY. Borrower agrees
that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon
early payment (whether voluntary or as a result of default), except as otherwise required by law. Upon prepayment of this Note, Lender
is entitled to the following prepayment penalty: The prepayment premium shall apply throughout maturity. If the Borrower prepays this
Loan with the proceeds of a Loan from another financial institution prior to its maturity, the prepayment must be accompanied by a prepayment
premium equal to 1.00% of the outstanding principal balance. OPNB will receive Last Look and first Right of Refusal for any refinance.

 

Except for the foregoing, Borrower may
pay all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve
Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal
balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full",
 "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's
rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning
disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full"
of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed
or delivered to: THE OLD POINT NATIONAL BANK OF PHOEBUS, 1 West Mellen Street Hampton, VA 23663.

 

LATE CHARGE. If a payment is 7 days
or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment.

 

INTEREST AFTER DEFAULT. Upon default,
including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding an additional 4.000 percentage
point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that
would have applied had there been no default. After maturity, or after this Note would have matured had there been no default, the Default
Rate Margin will continue to apply to the final interest rate described in this Note. However, in no event will the interest rate exceed
the maximum interest rate limitations under applicable law.

 

DEFAULT. Each of the following shall
constitute an event of default ("Event of Default") under this Note:

 

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

 

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

 

    1 

     

    

 

Default in Favor of Third Parties.
Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement,
in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note
or perform Borrower's obligations under this Note or any of the related documents.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Insecurity. Lender in good
faith believes itself insecure.

 

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

 

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

 

JURY WAIVER. Lender and Borrower hereby
waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.

 

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

 

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

 

DISHONORED ITEM FEE. Borrower will
pay a fee to Lender of $35.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower
pays is later dishonored.

 

RIGHT OF SETOFF. To the extent permitted
by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other
account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However,
this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts,
and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided
in this paragraph.

 

COLLATERAL. Borrower acknowledges
this Note is secured by a Credit Line Deed of Trust and Assignment of Rents and Leases dated June 7, 2021 in the amount of $4,495,000.00,
recorded in the Clerk's Office of the Circuit Court in the City of Chesapeake on the real property located at 1244 Executive Blvd., Chesapeake,
VA 23320 in the name of Medalist Fund II-B, LLC; and Security Agreement dated June 7, 2021 on all Equipment, General Intangibles and Fixtures
located in or attached to the real property located at 1244 Executive Blvd., Chesapeake, VA 23320 and owned by the Debtor.

 

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

 

    2 

     

    

 

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

 

NOTIFY US OF INACCURATE INFORMATION WE
REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender if Lender reports any inaccurate information about Borrower's account(s)
to a consumer reporting agency. Borrower's written notice describing the specific inaccuracy(ies) should be sent to Lender at the following
address: THE OLD POINT NATIONAL BANK OF PHOEBUS 1 West Mellen Street Hampton, VA 23663.

 

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

 

    3 

     

    

 

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

 

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

 

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

 

BORROWER:

 

Medalist Fund II-B, LLC, a

Delaware limited liability company

 

		By:	Medalist Fund II, LLC, a

               
Delaware limited liability company

		Its:	Sole Member

 

		By:	Medalist Fund Manager, Inc., a

Virginia corporation

		Its:	Manager

 

	By: 	/s/ William Elliott	 
	Name: 	William Elliott	 
	Title: 	Co-President	 

         

LENDER:

 

THE OLD POINT NATIONAL BANK OF PHOEBUS

 

	X	/s/ Natasha Merz	 
	 	Authorized Officer	 

 

    4 
Sigature page to Note

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