Document:

Exhibit 10.3

PREPARED BY AND UPON

RECORDATION RETURN TO:

Hunton & Williams LLP

200 Park Avenue

New York, NY 10166

Attention: Peter Mignone, Esq

 

 

 

Tax Parcels: 334-H- 190; 265-J-10; 334-H-100; 265-E-1; 265-E-50; 265-K-60;
265-J-25; 265-E-100; 265-E-125; 334-H-60; and 334-H-80

 

 

 

IREIT PITTSBURGH SETTLERS RIDGE, L.L.C.,

a Delaware limited liability company, as mortgagor

(Borrower)

to

METROPOLITAN LIFE INSURANCE COMPANY,
as mortgagee

(Lender)

__________________________________________

OPEN-END MORTGAGE, ASSIGNMENT
OF LEASES AND RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

__________________________________________

		Dated:	Dated as of November 23, 2015,

made effective as of December 3, 2015

		Location:	200 Settlers Ridge Center Drive

Pittsburgh, Pennsylvania

		County:	Allegheny

.

 

    	 

    	 

    

Open-end
MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING

THIS MORTGAGE, ASSIGNMENT
OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this “Security Instrument”) is dated as of November
23, 2015, but made effective as of December 3, 2015, by IREIT PITTSBURGH SETTLERS RIDGE, L.L.C., a Delaware limited liability
company, having its principal place of business at 2901 Butterfield Road, Oak Brook, Illinois 60523, as mortgagor (“Borrower”)
for the benefit of METROPOLITAN LIFE INSURANCE COMPANY, a New York corporation, having an address at 10 Park Avenue, Morristown,
New Jersey 07962, as mortgagee (“Lender”).

W I T N E S S E T H:

WHEREAS, this Security
Instrument is given to secure a loan (the “Loan”) in the principal sum of SEVENTY-SIX MILLION FIVE HUNDRED THIRTY-TWO
THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($76,532,500.00) or so much thereof as may be advanced pursuant to that certain Loan Agreement
dated as of the date hereof between Borrower and Lender (as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, the “Loan Agreement”; capitalized terms not defined herein shall have the respective
meanings set forth in the Loan Agreement) and evidenced by that certain Promissory Note dated the date hereof made by Borrower
to Lender (such Note, together with all extensions, renewals, replacements, restatements or modifications thereof being hereinafter
referred to as the “Note”);

WHEREAS, Borrower
desires to secure the payment of the Debt and the performance of all of its obligations under the Note, the Loan Agreement and
the other Loan Documents; and

WHEREAS, this Security
Instrument is given pursuant to the Loan Agreement, and payment, fulfillment, and performance by Borrower of its obligations thereunder
and under the other Loan Documents are secured hereby, and each and every term and provision of the Loan Agreement and the Note,
including the rights, remedies, obligations, covenants, conditions, agreements, indemnities, representations and warranties of
the parties therein, are hereby incorporated by reference herein as though set forth in full and shall be considered a part of
this Security Instrument (the Loan Agreement, the Note, this Security Instrument, the Assignment of Leases and all other documents
evidencing or securing the Debt or delivered in connection with the making of the Loan are hereinafter referred to collectively
as the “Loan Documents”).

NOW THEREFORE, in
consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in the
Loan Documents:

Article
1 - GRANTS OF SECURITY

Section 1.1         
Property Mortgaged. Borrower does hereby irrevocably mortgage, grant, bargain, sell, pledge, assign,
warrant, transfer and convey to Lender and its successors and assigns the following property, rights, interests and estates now
owned, or hereafter acquired by Borrower (collectively, the “Property”):

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(a)            
Land. The real property described in Exhibit A attached hereto and made a part hereof (the “Land”);

(b)           
Additional Land. All additional lands, estates and development rights hereafter acquired by Borrower for use in connection
with the Land and the development of the Land and all additional lands and estates therein which may, from time to time, by supplemental
mortgage or otherwise be expressly made subject to the lien of this Security Instrument;

(c)            
Improvements. The buildings, structures, fixtures, additions, enlargements, extensions, modifications, repairs, replacements
and improvements now or hereafter erected or located on the Land (collectively, the “Improvements”);

(d)           
Easements. All easements, rights-of-way or use, rights, strips and gores of land, streets, ways, alleys, passages,
sewer rights, water, water courses, water rights and powers, air rights and development rights, and all estates, rights, titles,
interests, privileges, liberties, servitudes, tenements, hereditaments and appurtenances of any nature whatsoever, in any way now
or hereafter belonging, relating or pertaining to the Land and the Improvements and the reversion and reversions, remainder and
remainders, and all land lying in the bed of any street, road or avenue, opened or proposed, in front of or adjoining the Land,
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 Land and the Improvements
and every part and parcel thereof, with the appurtenances thereto;

(e)            
Equipment. All “equipment,” as such term is defined in Article 9 of the Uniform Commercial Code (as hereinafter
defined), now owned or hereafter acquired by Borrower, which is used at or in connection with the Improvements or the Land or is
located thereon or therein (including, but not limited to, all machinery, equipment, furnishings, and electronic data-processing
and other office equipment now owned or hereafter acquired by Borrower and any and all additions, substitutions and replacements
of any of the foregoing), together with all attachments, components, parts, equipment and accessories installed thereon or affixed
thereto (collectively, the “Equipment”). Notwithstanding the foregoing, Equipment shall not include any property
belonging to Tenants under Leases except to the extent that Borrower shall have any right or interest therein;

(f)            
Fixtures. All Equipment now owned, or the ownership of which is hereafter acquired, by Borrower which is so related
to the Land and Improvements forming part of the Property that it is deemed fixtures or real property under the law of the particular
state in which the Equipment is located, including, without limitation, all building or construction materials intended for construction,
reconstruction, alteration or repair of or installation on the Property, construction equipment, appliances, machinery, plant equipment,
fittings, apparatuses, fixtures and other items now or hereafter attached to, installed in or used in connection with (temporarily
or permanently) any of the Improvements or the Land, including, but not limited to, engines, devices for the operation of pumps,
pipes,

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plumbing,
cleaning, call and sprinkler systems, fire extinguishing apparatuses and equipment, heating, ventilating, plumbing, laundry,
incinerating, electrical, air conditioning and air cooling equipment and systems, gas and electric machinery, appurtenances
and equipment, pollution control equipment, security systems, disposals, dishwashers, refrigerators and ranges,
recreational equipment and facilities of all kinds, and water, gas, electrical, storm and sanitary sewer facilities, utility
lines and equipment (whether owned individually or jointly with others, and, if owned jointly, to the extent of
Borrower’s interest therein) and all other utilities whether or not situated in easements, all water tanks, water
supply, water power sites, fuel stations, fuel tanks, fuel supply, and all other structures, together with all accessions,
appurtenances, additions, replacements, betterments and substitutions for any of the foregoing and the proceeds thereof
(collectively, the “Fixtures”). Notwithstanding the foregoing, “Fixtures” shall not include
any property which Tenants are entitled to remove pursuant to Leases except to the extent that Borrower shall have any right
or interest therein;

(g)           
Personal Property. All furniture, furnishings, objects of art, machinery, goods, tools, supplies, appliances, general
intangibles, contract rights, accounts, accounts receivable, franchises, licenses, certificates and permits, and all other personal
property of any kind or character whatsoever (as defined in and subject to the provisions of the Uniform Commercial Code as hereinafter
defined), other than Fixtures, which are now or hereafter owned by Borrower and which are located within or about the Land and
the Improvements, together with all accessories, replacements and substitutions thereto or therefor and the proceeds thereof (collectively,
the “Personal Property”), and the right, title and interest of Borrower in and to any of the Personal Property
which may be subject to any security interests, as defined in the Uniform Commercial Code, as adopted and enacted by the state
or states where any of the Property is located (the “Uniform Commercial Code”), superior in lien to the lien
of this Security Instrument and all proceeds and products of the above;

(h)           
Leases and Rents. All leases and other agreements affecting the use, enjoyment or occupancy of the Land and the Improvements
heretofore or hereafter entered into, whether before or after the filing by or against Borrower of any petition for relief under
11 U.S.C. §101 et seq., as the same may be amended from time to time (the “Bankruptcy Code”) (collectively,
the “Leases”) and all right, title and interest of Borrower, its successors and assigns therein and thereunder,
including, without limitation, cash or securities deposited thereunder to secure the performance by the lessees of their obligations
thereunder and all rents, additional rents, revenues, issues and profits (including all oil and gas or other mineral royalties
and bonuses) from the Land and the Improvements whether paid or accruing before or after the filing by or against Borrower of any
petition for relief under the Bankruptcy Code (collectively, the “Rents”) and 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;

(i)             
Condemnation Awards. All awards or payments, including interest thereon, which may heretofore and hereafter be made
with respect to the Property, whether from the exercise of the right of eminent domain (including but not limited to any transfer
made in lieu of or in anticipation of the exercise of the right), or for a change of grade, or for any other injury to or decrease
in the value of the Property;

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(j)             
Insurance Proceeds. All proceeds in respect of the Property under any insurance policies covering the Property, including,
without limitation, the right to receive and apply the proceeds of any insurance, judgments, or settlements made in lieu thereof,
for damage to the Property;

(k)           
Tax Certiorari. All refunds, rebates or credits in connection with reduction in real estate taxes and assessments
charged against the Property as a result of tax certiorari or any applications or proceedings for reduction;

(l)             
Rights. 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;

(m)         
Agreements. All agreements, contracts, certificates, instruments, franchises, permits, licenses, plans, specifications
and other documents, now or hereafter entered into, and all rights therein and thereto, respecting or pertaining to the use, occupation,
construction, management or operation of the Land and any part thereof and any Improvements or respecting any business or activity
conducted on the Land and any part thereof and all right, title and interest of Borrower therein and thereunder, including, without
limitation, the right, upon the occurrence of any default hereunder or under any other Loan Document, to receive and collect any
sums payable to Borrower thereunder;

(n)           
Trademarks. All tradenames, trademarks, servicemarks, logos, copyrights, goodwill, books and records and all other
general intangibles relating to or used in connection with the operation of the Property (excluding however the name "Inland"
and any mark registered to The Inland Group, Inc., or any of its affiliates);

(o)           
Accounts. All reserves, escrows and deposit accounts maintained by Borrower with respect to the Property, including,
without limitation, all accounts, escrows, reserves, deposits and impounds established or maintained pursuant to the Loan Agreement
and the other Loan Documents (collectively, the “Accounts”); together with all deposits or wire transfers made
to such accounts and all cash, checks, drafts, certificates, securities, investment property, financial assets, instruments and
other property held therein from time to time and all proceeds, products, distributions or dividends or substitutions thereon and
thereof;

(p)           
Proceeds. All proceeds of any of the foregoing, including, without limitation, proceeds of insurance and condemnation
awards, whether cash, liquidation or other claims or otherwise; and

(q)           
Other Rights. Any and all other rights of Borrower in and to the items set forth in subsections (a) through
(p) above.

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AND without limiting
any of the other provisions of this Security Instrument, to the extent permitted by applicable law, Borrower expressly grants to
Lender, as secured party, a security interest in the portion of the Property which is or may be subject to the provisions of the
Uniform Commercial Code which are applicable to secured transactions; it being understood and agreed that the Improvements and
Fixtures are part and parcel of the Land (the Land, the Improvements and the Fixtures are collectively referred to as the “Real
Property”) appropriated to the use thereof and, whether affixed or annexed to the Real Property or not, shall for the
purposes of this Security Instrument be deemed conclusively to be real estate and mortgaged hereby.

Section 1.2         
Assignment of Rents. Borrower hereby absolutely and unconditionally assigns to Lender all of Borrower’s
right, title and interest in and to 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. Nevertheless, subject to the terms
of the Assignment of Leases and Sections 7.1(c) and 7.1(d) of this Security Instrument, Lender grants to Borrower
a revocable license to collect, receive, use and enjoy the Rents. Borrower shall hold the Rents, or a portion thereof sufficient
to discharge all current sums due on the Debt, for use in the payment of such sums.

Section 1.3         
Security Agreement. This Security Instrument is both a real property mortgage and a “security agreement”
within the meaning of the Uniform Commercial Code. 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. By executing and delivering this Security Instrument,
Borrower hereby grants to Lender, as security for the Obligations (hereinafter defined), a security interest in all of Borrower’s
right, title and interest, whether now owned or hereafter acquired, in, to or under the Fixtures, the Equipment, the Personal Property
and other property constituting the Property to the full extent that the Fixtures, the Equipment, the Personal Property and such
other property may be subject to the Uniform Commercial Code (said portion of the Property so subject to the Uniform Commercial
Code being called the “Collateral”). The foregoing sentence is intended to grant in favor of Lender a first
priority continuing lien and security interest in all of Borrower’s assets. Borrower hereby authorizes Lender and its counsel
to file UCC financing statements in form and substance satisfactory to Lender, describing the collateral thereunder as “all
assets of the Borrower, whether now owned or existing or hereafter acquired or arising and wheresoever located, and all proceeds
and products thereof, including, without limitation, all fixtures on the Land”, or words to that effect, notwithstanding
that such collateral description may be broader in scope than the Collateral described in this Security Instrument. If an Event
of Default shall occur, 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 Uniform Commercial Code,
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 after the occurrence of an Event of Default, Borrower shall, at its expense, assemble the Collateral
and make it available to Lender at a convenient place (at the Land if tangible property) reasonably acceptable to Lender. Borrower
shall pay to 

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Lender on
demand any and all expenses, including reasonable legal expenses and attorneys’ fees, incurred or paid by Lender in
protecting its interest in the Collateral and in enforcing its rights hereunder with respect to the Collateral after the
occurrence of an Event of Default. 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 (10) business days prior to such action,
shall, except as otherwise provided by applicable law, constitute reasonable notice to Borrower. The proceeds of any
disposition of the Collateral, or any part thereof, may, except as otherwise required by applicable law, be applied by Lender
to the payment of the Debt in such priority and proportions as Lender in its discretion shall deem proper. The principal
place of business of Borrower (Debtor) is as set forth on page one hereof and the address of Lender (Secured Party) is as set
forth on page one hereof.

Section 1.4         
Fixture Filing. Certain of the Property is or will become “fixtures” (as that term is defined
in the Uniform Commercial Code) on the Land, described or referred to in this Security Instrument, and this Security Instrument,
upon being filed for record in the real estate records of the city or county wherein such fixtures are situated, shall operate
also as a financing statement (with Borrower as debtor and Lender as secured party) filed as a fixture filing in accordance with
the applicable provisions of said Uniform Commercial Code upon such of the Property that is or may become fixtures.

Section 1.5         
Pledges of Monies Held. Borrower hereby pledges to Lender any and all monies now or hereafter
held by Lender or on behalf of Lender in connection with the Loan, including, without limitation, any sums deposited in the Accounts
and Net Proceeds, as additional security for the Obligations until expended or applied as provided in this Security Instrument,
the Loan Agreement or the other Loan Documents.

Section 1.6         
Characterization of Property. The grant of a security interest to Lender in this Security Instrument shall
not be construed to limit or impair the lien of this Security Instrument or the rights of Lender with respect to any property which
is real property or which the parties have agreed to treat as real property. To the fullest extent permitted by law, everything
used in connection with the production of Rents is, and at all times and for all purposes and in all proceedings, both legal and
equitable, shall be regarded as real property, irrespective of whether or not the same is physically attached to the Land and/or
Improvements.

Section 1.7         
Protection Against Purchase Money Security Instruments. It is understood and agreed that in order to protect
Lender from the effect of Section 9-334 of the UCC, as amended from time to time and as enacted in the State, in the event that
Borrower intends to purchase any goods which may become fixtures attached to the Property, or any part of the Property, and such
goods will be subject to a purchase money security interest held by a seller or any other party:

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(a)            
Before executing any security agreement or other document evidencing or perfecting the security interest, Borrower shall
obtain the prior written approval of Lender. All requests for such written approval shall be in writing and contain the following
information: (i) a description of the fixtures; (ii) the address at which the fixtures will be located; and (iii) the name and
address of the proposed holder and proposed amount of the security interest.

(b)           
Borrower shall pay all sums and perform all obligations secured by the security agreement. A default by Borrower under the
security agreement shall constitute a default under this Security Instrument. If Borrower fails to make any payment on an obligation
secured by a purchase money security interest in the Personal Property or any fixtures, Lender, at its option, may pay the secured
amount and Lender shall be subrogated to the rights of the holder of the purchase money security interest.

(c)            
Lender shall have the right to acquire by assignment from the holder of the security interest for the Personal Property
or fixtures, all contract rights, accounts receivable, negotiable or non negotiable instruments, or other evidence of indebtedness
and to enforce the security interest as assignee.

(d)           
The provisions of subparagraphs (b) and (c) of this Section 1.7 shall not apply if the goods which may become fixtures
are of at least equivalent value and quality as the Personal Property being replaced and if the rights of the party holding the
security interest are expressly subordinated to the lien and security interest of this Security Instrument in a manner satisfactory
to Lender.

CONDITIONS
TO GRANT

TO HAVE AND TO HOLD
the above granted and described Property unto and to the use and benefit of 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 Note, the Loan Agreement and this Security Instrument, shall well and truly perform the Other Obligations
as set forth in this Security Instrument and shall well and truly abide by and comply with each and every covenant and condition
set forth herein and in the Note, the Loan Agreement and the other Loan Documents, these presents and the estate hereby granted
shall cease, terminate and be void; provided, however, that Borrower’s obligation to indemnify and hold harmless Lender pursuant
to the provisions hereof shall survive any such payment or release.

Article
2 - DEBT AND OBLIGATIONS SECURED

Section 2.1         
Debt. This Security Instrument and the grants, assignments and transfers made in Article 1 are given
for the purpose of securing the Debt.

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Section 2.2         
Other Obligations. This Security Instrument and the grants, assignments and transfers made in Article
1 are also given for the purpose of securing the following (collectively, the “Other Obligations”):

(a)            
the performance of all other obligations of Borrower contained herein;

(b)           
the performance of each obligation of Borrower contained in the Loan Agreement and any other Loan Document; and

(c)            
the performance of each obligation of Borrower contained in any renewal, extension, amendment, modification, consolidation,
change of, or substitution or replacement for, all or any part of the Note, the Loan Agreement or any other Loan Document.

Section 2.3         
Debt and Other Obligations. Borrower’s obligations for the payment of the Debt and the performance of
the Other Obligations shall be referred to collectively herein as the “Obligations.”

Article
3 - BORROWER COVENANTS

Borrower covenants
and agrees that:

Section 3.1         
Payment of Debt. Borrower will pay the Debt at the time and in the manner provided in the Loan Agreement,
the Note and this Security Instrument.

Section 3.2         
Incorporation by Reference. All the covenants, conditions and agreements contained in (a) the Loan
Agreement, (b) the Note and (c) all and any of the other 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. In the event of any conflict between the provisions of this
Security Instrument and the provisions of the Loan Agreement, the provisions of the Loan Agreement shall control.

Section 3.3         
Insurance. Borrower shall obtain and maintain, or cause to be maintained, in full force and effect at all
times insurance with respect to Borrower and the Property as required pursuant to the Loan Agreement.

Section 3.4         
Maintenance of Property. Borrower shall cause the Property to be maintained in a good and safe condition
and repair. The Improvements, the Fixtures, the Equipment and the Personal Property shall not be removed, demolished or materially
altered (except for normal replacement of the Fixtures, the Equipment or the Personal Property, Tenant finish and refurbishment
of the Improvements) without the consent of Lender. Borrower shall promptly repair, replace or rebuild any part of the Property
which may be destroyed by any Casualty or become damaged, worn or dilapidated or which may be affected by any Condemnation, and
shall complete and pay for any structure at any time in the process of construction or repair on the Land.

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Section 3.5         
Waste. Borrower shall not commit or suffer any waste of the Property or make any change in the use of the
Property which will in any way materially increase the risk of fire or other hazard arising out of the operation of the Property,
or take any action that might invalidate or allow the cancellation of any Policy, or do or permit to be done thereon anything that
may in any way materially impair the value of the Property or the security of this Security Instrument. Borrower will not, without
the prior written consent of Lender, permit any drilling or exploration for or extraction, removal, or production of any minerals
from the surface or the subsurface of the Land, regardless of the depth thereof or the method of mining or extraction thereof.

Section 3.6         
Payment for Labor and Materials. (a) Borrower will promptly pay when due all bills and
costs for labor, materials, and specifically fabricated materials (“Labor and Material Costs”) incurred in connection
with the Property and not permit to exist beyond the due date thereof in respect of the Property or any part thereof any lien or
security interest, even though inferior to the liens and the security interests hereof. In any event Borrower shall not permit
to be created or exist in respect of the Property or any part thereof any other or additional lien or security interest other than
the liens or security interests hereof and the Permitted Encumbrances.

(b)           
After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly
initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any
of the Labor and Material Costs, provided that (i) no Event of Default has occurred and is continuing under the Loan Agreement,
the Note, this Security Instrument or any of the other Loan Documents, (ii) Borrower is permitted to do so under the provisions
of any other mortgage, deed of trust or deed to secure debt affecting the Property, (iii) such proceeding shall suspend the collection
of the Labor and Material Costs from Borrower and from the Property or Borrower shall have paid all of the Labor and Material Costs
under protest, (iv) such proceeding shall be permitted under and be conducted in accordance with (A) all applicable Legal Requirements
and (B) the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder, (v)
neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled
or lost, and (vi) Borrower shall have furnished the security as may be required in the proceeding, or as may be reasonably requested
by Lender to insure the payment of any contested Labor and Material Costs, together with all interest and penalties thereon.

Section 3.7         
Performance of Other Agreements. Borrower shall observe and perform each and every term, covenant
and provision to be observed or performed by Borrower pursuant to the Loan Agreement, any other Loan Document and any other agreement
or recorded instrument affecting or pertaining to the Property and any amendments, modifications or changes thereto.

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Section 3.8         
Change of Name, Identity or Structure. Borrower shall not change Borrower’s
name, identity (including its trade name or names) or, if not an individual, Borrower’s corporate, partnership or other structure
without first (a) notifying Lender of such change in writing at least thirty (30) days prior to the effective date of such change,
(b) taking all action required by Lender for the purpose of perfecting or protecting the lien and security interest of Lender and
(c) in the case of a change in Borrower’s structure, without first obtaining the prior written consent of Lender. Borrower
shall promptly notify Lender in writing of any change in its organizational identification number. If Borrower does not now have
an organizational identification number and later obtains one, Borrower shall promptly notify Lender in writing of such organizational
identification number. Borrower shall authorize, prior to or contemporaneously with the effective date of any such change, any
financing statement or financing statement change required by Lender to establish or maintain the validity, perfection and priority
of the security interest granted herein. At the request of Lender, Borrower shall execute a certificate in form satisfactory to
Lender listing the trade names under which Borrower intends to operate the Property, and representing and warranting that Borrower
does business under no other trade name with respect to the Property.

Article
4 - OBLIGATIONS AND RELIANCES

Section 4.1         
Relationship of Borrower and Lender. The relationship between Borrower and Lender is solely
that of debtor and creditor, and Lender has no fiduciary or other special relationship with Borrower, and no term or condition
of any of the Loan Agreement, the Note, this Security Instrument and the other Loan Documents shall be construed so as to deem
the relationship between Borrower and Lender to be other than that of debtor and creditor.

Section 4.2         
No Reliance on Lender. The general partners, members, principals and (if Borrower is a trust)
beneficial owners of Borrower are experienced in the ownership and operation of properties similar to the Property, and Borrower
and Lender are relying solely upon such expertise and business plan in connection with the ownership and operation of the Property.
Borrower is not relying on Lender’s expertise, business acumen or advice in connection with the Property.

Section 4.3         
No Lender Obligations. (a) Notwithstanding the provisions of subsections 1.1(h), (m)
and (n) or Section 1.2, Lender is not undertaking the performance of (i) any obligations under the Leases; or (ii)
any obligations with respect to such agreements, contracts, certificates, instruments, franchises, permits, trademarks, licenses
and other documents.

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(b)           
By accepting or approving anything required to be observed, performed or fulfilled or to be given to Lender pursuant to
this Security Instrument, the Loan Agreement, the Note or the other Loan Documents, including, without limitation, any officer’s
certificate, balance sheet, statement of profit and loss or other financial statement, survey, appraisal, or insurance policy,
Lender shall not be deemed to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness of same,
and such acceptance or approval thereof shall not constitute any warranty or affirmation with respect thereto by Lender.

Section 4.4         
Reliance. Borrower recognizes and acknowledges that in accepting the Loan Agreement, the Note, this Security
Instrument and the other Loan Documents, Lender is expressly and primarily relying on the truth and accuracy of the warranties
and representations set forth in Article IV of the Loan Agreement without any obligation to investigate the Property and
notwithstanding any investigation of the Property by Lender; that such reliance existed on the part of Lender prior to the date
hereof, that the warranties and representations are a material inducement to Lender in making the Loan; and that Lender would not
be willing to make the Loan and accept this Security Instrument in the absence of the warranties and representations as set forth
in Article IV of the Loan Agreement.

Article
5 - FURTHER ASSURANCES

Section 5.1         
Recording of Security Instrument, etc. Borrower
forthwith upon the execution and delivery of this Security Instrument and thereafter, from time to time, will cause this Security
Instrument and any of the other Loan Documents 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 and perfect the lien or security interest hereof
upon, and the interest of Lender in, the Property. Borrower will pay all taxes, filing, registration or recording fees, and all
expenses incident to the preparation, execution, acknowledgment and/or recording of the Note, this Security Instrument, the other
Loan Documents, any note, deed of trust or mortgage supplemental hereto, any security instrument with respect to the Property and
any instrument of further assurance, and any modification or amendment of the foregoing documents, and all federal, state, county
and municipal taxes, duties, imposts, assessments and charges arising out of or in connection with the execution and delivery of
this Security Instrument, any deed of trust or mortgage supplemental hereto, any security instrument with respect to the Property
or any instrument of further assurance, and any modification or amendment of the foregoing documents, except where prohibited by
law so to do.

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Section 5.2         
Further Acts, etc. Borrower will, at the cost
of Borrower, and without expense to Lender, do, execute, acknowledge and deliver all and every such further acts, deeds, conveyances,
deeds of trust, mortgages, assignments, notices of assignments, 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, deeded, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and transferred 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 complying with all Legal Requirements. Borrower, on demand, will execute and deliver, and in the
event it shall fail to so execute and deliver, hereby authorizes Lender to execute in the name of Borrower or without the signature
of Borrower to the extent Lender may lawfully do so, one or more financing statements (including, without limitation, initial financing
statements and amendments thereto and continuation statements) with or without the signature of Borrower as authorized by applicable
law, to evidence more effectively the security interest of Lender in the Property. Borrower also ratifies its authorization for
Lender to have filed any like initial financing statements, amendments thereto and continuation statements, if filed prior to the
date of this Security Instrument. 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 without limitation
such rights and remedies available to Lender pursuant to this Section 5.2. To the extent not prohibited by applicable law,
Borrower hereby ratifies all acts Lender has lawfully done in the past or shall lawfully do or cause to be done in the future by
virtue of such power of attorney.

Section 5.3         
Changes in Tax, Debt, Credit and Documentary Stamp Laws. (a) 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 the tax, with interest and penalties thereon, if any. If Lender is advised by counsel chosen by it
that the payment of tax by Borrower would be unlawful or taxable to Lender or unenforceable or 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 without payment of any Prepayment Fee.

(b)           
Borrower will not claim or demand or be entitled to any credit or credits on account of the Debt for any part of the Taxes
or Other Charges assessed against the Property, or any part thereof, and no deduction shall otherwise be made or claimed from the
assessed value of the Property, or any part thereof, 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 without penalty or Prepayment Fee.

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(c)            
If at any time the United States of America, any State thereof or any subdivision of any such State shall require revenue
or other stamps to be affixed to the Note, this Security Instrument, or any of the other Loan Documents or impose any other tax
or charge on the same, Borrower will pay for the same, with interest and penalties thereon, if any.

Section 5.4         
Splitting of Security Instrument. This Security Instrument and the Note shall, at any time until
the same shall be fully paid and satisfied, at the sole election of Lender, be split or divided into two or more notes and two
or more security instruments, in such denominations as Lender shall otherwise determine in its sole discretion, each of which shall
cover all or a portion of the Property to be more particularly described therein; provided, however, that in creating such new
notes and security instruments Borrower shall not be required to modify (i) the initial weighted average interest payable
under the Note, (ii) the stated maturity of the Note, (iii) the aggregate amortization of principal of the Note, (iv) any
other material term of the Loan, or (v) any rights or obligations of Borrower under the Loan Documents in any material respect.
To that end, Borrower, upon written request of Lender, shall execute, acknowledge and deliver, or cause to be executed, acknowledged
and delivered by the then owner of the Property, to Lender and/or its designee or designees substitute notes and security instruments
in such principal amounts, aggregating not more than the then unpaid principal amount of the Note, and containing terms, provisions
and clauses similar to those contained herein and in the Note, and such other documents and instruments as may be required by Lender.

Section 5.5         
Replacement Documents. Upon receipt of an affidavit of an officer of Lender as to the loss, theft, destruction
or mutilation of the Note or any other Loan Document which is not of public record, and, in the case of any such mutilation, upon
surrender and cancellation of such Note or other Loan Document, Borrower will issue, in lieu thereof, a replacement Note or other
Loan Document, dated the date of such lost, stolen, destroyed or mutilated Note or other Loan Document in the same principal amount
thereof and otherwise of like tenor.

Article
6 - DUE ON SALE/ENCUMBRANCE

Section 6.1         
Lender Reliance. Borrower acknowledges that Lender has examined and relied on the experience of Borrower
and its general partners, members, principals and (if Borrower is a trust) beneficial owners in owning and operating properties
such as the Property in agreeing to make the Loan, and will continue to rely on Borrower’s ownership of the Property as a
means of maintaining the value of the Property as security for repayment of the Debt and the performance of the Other Obligations.
Borrower acknowledges that 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 or the performance of the Other Obligations, Lender can recover the Debt by a sale of the
Property.

Section 6.2         
No Transfer. Borrower shall not permit or suffer any Transfer to occur, unless specifically permitted
by the Loan Agreement or unless Lender shall consent thereto in writing, which consent may be granted or withheld in Lender’s
sole and absolution discretion.

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Section 6.3         
Lender’s Rights. 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 a Transfer without Lender’s
consent. This provision shall apply to every Transfer, other than any Transfer permitted pursuant to the Loan Agreement, regardless
of whether voluntary or not, or whether or not Lender has consented to any previous Transfer.

Article
7 - RIGHTS AND REMEDIES UPON DEFAULT

Section 7.1         
Remedies. Upon the happening and during the continuance of an Event of Default, the Debt shall, at the option
of Lender, become immediately due and payable, without further notice or demand, and Lender may suspend any or all performance
required of Lender under the Loan Documents and may undertake any one or more of the following remedies:

(a)            
Foreclosure. Institute a foreclosure action in accordance with the law of the state where the Real Property is located,
or take any other action as may be allowed, at law or in equity, for the enforcement of the Loan Documents and realization on the
Property or any other security afforded by the Loan Documents. In the case of a judicial proceeding, Lender may proceed to final
judgment and execution for the amount of the Debt owed as of the date of the judgment, together with all costs of suit, reasonable
attorneys’ fees and interest on the judgment at the maximum rate permitted by law from the date of the judgment until paid.
If Lender is the purchaser at the foreclosure sale of the Property, the foreclosure sale price shall be applied against the total
amount due Lender; and/or

(b)           
Power of Sale. Institute a non-judicial foreclosure proceeding in compliance with applicable law in effect on the
date foreclosure is commenced for the Lender to sell the Property either as a whole or in separate parcels as Lender may determine
at public sale or sales to the highest bidder for cash, in order to pay the Debt. If the Property is sold as separate parcels,
Lender may direct the order in which the parcels are sold. Lender shall deliver to the purchaser a deed or deeds without covenant
or warranty, express or implied. Lender may postpone the sale of all or any portion of the Property by public announcement at the
time and place of sale, and from time to time may further postpone the sale by public announcement in accordance with applicable
law; and/or

(c)            
Entry. Enter into possession of the Property, lease the Improvements, collect all Rents and, after deducting all
costs of collection and administration expenses, apply the remaining Rents in such order and amounts as Lender, in Lender’s
sole discretion, may elect to the payment of Taxes, operating costs, costs of maintenance, restoration and repairs, Insurance Premiums
and other charges, including, but not limited to, costs of leasing the Property and fees and costs of counsel and receivers, and
in reduction of the Debt; and/or

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(d)           
Receivership. Have a receiver appointed to enter into possession of the Property, lease the Property, collect the
Rents and apply them as the appropriate court may direct. Lender shall be entitled to the appointment of a receiver without the
necessity of proving either the inadequacy of the security or the insolvency of Borrower or any Guarantor. Borrower and Guarantor
shall be deemed to have consented to the appointment of the receiver. The collection or receipt of any of the Rents by Lender or
any receiver shall not affect or cure any Event of Default.

Section 7.2         
Application of Proceeds. The purchase money, proceeds and avails of any disposition of the Property,
and or any part thereof, or any other sums collected by Lender pursuant to the Note, this Security Instrument or the other Loan
Documents, may be applied by Lender to the payment of the Debt in such priority and proportions as Lender in its discretion shall
deem proper.

Section 7.3         
Right to Cure Defaults. Upon the occurrence and during the continuance of any Event of Default
or if Borrower fails to make any payment or to do any act as herein provided, 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, make or do the same 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 to the
extent permitted by law), with interest as provided in this Section 7.3, shall constitute a portion of the Debt and shall
be due and payable to Lender upon demand. All such costs and expenses incurred by Lender in remedying such Event of Default or
such failed payment or act or in appearing in, defending, or bringing any such action or proceeding shall bear interest at the
Default Rate, for the period beginning on the date of notice from Lender to Borrower that such cost or expense was incurred and
ending on the date of payment to Lender. All such costs and expenses incurred by Lender together with interest thereon calculated
at the Default Rate shall be deemed to constitute a portion of the Debt and be secured by this Security Instrument and the other
Loan Documents and shall be immediately due and payable upon demand by Lender therefor.

Section 7.4         
Actions and Proceedings. Lender has the right, in its own name or 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 bring any action or proceeding which
Lender, in its discretion, decides should be brought to protect its interest in the Property.

Section 7.5         
Recovery of Sums Required To Be Paid. Lender shall have the right from time
to time to take action to recover any sum or sums which constitute a part of the Debt as the same become due, without regard to
whether or not the balance of the Debt shall be due, and without prejudice to the right of Lender thereafter to bring an action
of foreclosure, or any other action, for a default or defaults by Borrower existing at the time such earlier action was commenced.

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Section 7.6         
Examination of Books and Records. At reasonable times and upon reasonable notice, Lender,
its agents, accountants and attorneys shall have the right to examine the records, books, management and other papers of Borrower
which reflect upon its financial condition, at the Property or at any office regularly maintained by Borrower where the books and
records are located. Lender and its agents shall have the right to make copies and extracts from the foregoing records and other
papers. In addition, at reasonable times and upon reasonable notice, Lender, its agents, accountants and attorneys shall have the
right to examine and audit the books and records of Borrower pertaining to the income, expenses and operation of the Property during
reasonable business hours at any office of Borrower where the books and records are located. Except during the continuance of an
Event of Default, the foregoing shall be at Lender’s sole cost and expense. This Section 7.6 shall apply throughout
the term of the Note and without regard to whether an Event of Default has occurred or is continuing.

Section 7.7         
Other Rights, Etc. (a) The failure of Lender to insist
upon strict performance of any term hereof shall not be deemed to be a waiver of any term of this Security Instrument. Borrower
shall not be relieved of Borrower’s obligations hereunder by reason of (i) the failure of Lender to comply with any request
of Borrower or any guarantor or indemnitor with respect to the Loan to take any action to foreclose this Security Instrument or
otherwise enforce any of the provisions hereof or of the Note or the other Loan Documents, (ii) the release, regardless of consideration,
of the whole or any part of the Property, or of any person liable for the Debt or any portion thereof, or (iii) any agreement or
stipulation by Lender extending the time of payment or otherwise modifying or supplementing the terms of the Note, this Security
Instrument or the other Loan Documents.

(b)           
It is agreed that the risk of loss or damage to the Property is on Borrower, and Lender shall have no liability whatsoever
for decline in value of the Property, for failure to maintain the Policies, or for failure to determine whether insurance in force
is adequate as to the amount of risks insured. Possession by Lender shall not be deemed an election of judicial relief, if any
such possession is requested or obtained, with respect to any Property or collateral not in Lender’s possession.

(c)            
Lender may resort for the payment of the Debt to any other security held by Lender in such order and manner as Lender, in
its discretion, may elect. Lender may take action to recover the Debt, or any portion thereof, or to enforce any covenant hereof
without prejudice to the right of Lender thereafter to foreclose this Security Instrument. The rights of Lender under this Security
Instrument shall be separate, distinct and cumulative and none shall be given effect to the exclusion of the others. No act of
Lender shall be construed as an election to proceed under any one provision herein to the exclusion of any other provision. Lender
shall not be limited exclusively to the rights and remedies herein stated but shall be entitled to every right and remedy now or
hereafter afforded at law or in equity.

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Section 7.8         
Right to Release Any Portion of the Property. Lender may release any portion
of the Property for such consideration as Lender may require without, as to the remainder of the Property, in any way impairing
or affecting the lien or priority of this Security Instrument, or improving the position of any subordinate lienholder with respect
thereto, except to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any,
received by Lender for such release, and may accept by assignment, pledge or otherwise any other property in place thereof as Lender
may require without being accountable for so doing to any other lienholder. This Security Instrument shall continue as a lien and
security interest in the remaining portion of the Property.

Section 7.9         
Violation of Laws. If the Property is not in material compliance with Legal Requirements, Lender
may impose additional requirements upon Borrower in connection herewith including, without limitation, monetary reserves or financial
equivalents.

Section 7.10      
Recourse and Choice of Remedies. Notwithstanding any other provision of this Security
Instrument or the Loan Agreement, including, without limitation, Section 12.22 of the Loan Agreement, Lender and other Indemnified
Parties (as hereinafter defined) are entitled to enforce the obligations of Borrower, any guarantor and indemnitor contained in
Sections 8.2 and 8.3 herein and Section 9.2 of the Loan Agreement without first resorting to or exhausting any security
or collateral and without first having recourse to the Note or any of the Property, through foreclosure or acceptance of a deed
in lieu of foreclosure or otherwise, and in the event Lender commences a foreclosure action against the Property, Lender is entitled
to pursue a deficiency judgment with respect to such obligations against Borrower and any guarantor or indemnitor with respect
to the Loan. The provisions of Sections 8.2 and 8.3 herein and Section 9.2 of the Loan Agreement are exceptions to
any non-recourse or exculpation provisions in the Loan Agreement, the Note, this Security Instrument or the other Loan Documents,
and Borrower and any guarantor or indemnitor with respect to the Loan are fully and personally liable for the obligations pursuant
to Sections 8.2 and 8.3 herein and Section 9.2 of the Loan Agreement. The liability of Borrower and any guarantor
or indemnitor with respect to the Loan pursuant to Sections 8.2 and 8.3 herein and Section 9.2 of the Loan Agreement
is not limited to the original principal amount of the Note. Notwithstanding the foregoing, nothing herein shall inhibit or prevent
Lender from foreclosing or exercising any other rights and remedies pursuant to the Loan Agreement, the Note, this Security Instrument
and the other Loan Documents, whether simultaneously with foreclosure proceedings or in any other sequence. A separate action or
actions may be brought and prosecuted against Borrower pursuant to Sections 8.2 and 8.3 herein and Section 9.2 of
the Loan Agreement, whether or not action is brought against any other Person or whether or not any other Person is joined in the
action or actions. In addition, Lender shall have the right but not the obligation to join and participate in, as a party if it
so elects, any administrative or judicial proceedings or actions initiated in connection with any matter addressed in the Environmental
Indemnity.

Section 7.11      
Right of Entry. Upon reasonable notice to Borrower and subject to the rights of Tenants, Lender
and its agents shall have the right to enter and inspect the Property at all reasonable times.

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Section 7.12      
Lender’s Right to Perform Borrower’s Obligations. Borrower agrees that, if Borrower fails to perform
any act or to pay any money which Borrower is required to perform or pay under the Loan Documents, Lender may make the payment
or perform the act at the cost and expense of Borrower and in Borrower’s name or in its own name. Any money paid by Lender
under this Section 7.12 shall be reimbursed to Lender in accordance with Section 11.3 of the Loan Agreement.

Article
8 - INDEMNIFICATION

Section 8.1         
General Indemnification. Borrower shall, at its sole cost and expense, protect, defend, indemnify, release
and hold harmless the Indemnified Parties from and against any and all claims, suits, liabilities (including, without limitation,
strict liabilities), actions, proceedings, obligations, debts, damages, losses, costs, expenses, diminutions in value, fines, penalties,
charges, fees, expenses, judgments, awards, amounts paid in settlement, punitive damages, foreseeable and unforeseeable damages,
of whatever kind or nature (including but not limited to reasonable attorneys’ fees and other costs of defense) (collectively,
the “Losses”) imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly
arising out of or in any way relating to any one or more of the following: (a) ownership of this Security Instrument, the Property
or any interest therein or receipt of any Rents; (b) any amendment to, or restructuring of, the Debt, and the Note, the Loan Agreement,
this Security Instrument, or any other Loan Documents; (c) any and all lawful action that may be taken by Lender in connection
with the enforcement of the provisions of this Security Instrument or the Loan Agreement or the Note or any of the other Loan Documents,
whether or not suit is filed in connection with same, or in connection with Borrower, any guarantor or indemnitor and/or any partner,
joint venturer or shareholder thereof becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or
similar proceeding; (d) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about
the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or
ways; (e) any use, nonuse or condition in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent
property or adjacent parking areas, streets or ways; (f) any failure on the part of Borrower to perform or be in compliance with
any of the terms of this Security Instrument; (g) performance of any labor or services or the furnishing of any materials or other
property in respect of the Property or any part thereof; (h) the failure of any person to file timely with the Internal Revenue
Service an accurate Form  1099-S, Proceeds from Real Estate Transactions, which may be required in connection with this Security
Instrument, or to supply a copy thereof in a timely fashion to the recipient of the proceeds of the transaction in connection with
which this Security Instrument is made; (i) any failure of the Property to be in compliance with any Legal Requirements; (j) the
enforcement by any Indemnified Party of the provisions of this Article 8; (k) any and all claims and demands whatsoever
which may be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any
of the terms, covenants, or agreements contained in any Lease; (1) the payment of any commission, charge or brokerage fee to anyone
claiming through Borrower which may be payable in connection with the funding of the Loan; or (m) any material misrepresentation
made by Borrower in this Security Instrument or any other Loan Document; provided, however, Borrower shall not be

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responsible for any such Losses caused solely by the gross negligence or intentional misconduct of the Indemnified
Parties. Any amounts payable to Lender by reason of the application of this Section 8.1 shall become immediately due and
payable and shall bear interest at the Default Rate from the date loss or damage is sustained by Lender until paid. For purposes
of this Article 8, the term “Indemnified Parties” means Lender and any Person who is or will have been
involved in the origination of the Loan, any Person who is or will have been involved in the servicing of the Loan secured hereby,
any Person in whose name the encumbrance created by this Security Instrument is or will have been recorded, persons and entities
who may hold or acquire or will have held a full or partial interest in the Loan secured hereby (including, but not limited to,
investors or prospective investors in the Securities, as well as custodians, trustees and other fiduciaries who hold or have held
a full or partial interest in the Loan secured hereby for the benefit of third parties) as well as the respective directors, officers,
shareholders, partners, employees, agents, servants, representatives, contractors, subcontractors, affiliates, subsidiaries, participants,
successors and assigns of any and all of the foregoing (including but not limited to any other Person who holds or acquires or
will have held a participation or other full or partial interest in the Loan, whether during the term of the Loan or as a part
of or following a foreclosure of the Loan and including, but not limited to, any successors by merger, consolidation or acquisition
of all or a substantial portion of Lender’s assets and business).

Section 8.2         
Mortgage and/or Intangible Tax. Borrower shall, at its sole cost and expense, protect, defend,
indemnify, release and hold harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or
asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any tax on the making
and/or recording of this Security Instrument, the Note or any of the other Loan Documents, but excluding any income, franchise
or other similar taxes.

Section 8.3         
ERISA Indemnification. Borrower shall, at its sole cost and expense, protect, defend, indemnify, release
and hold harmless the Indemnified Parties from and against any and all Losses (including, without limitation, reasonable attorneys’
fees and costs incurred in the investigation, defense, and settlement of Losses incurred in correcting any prohibited transaction
or in the sale of a prohibited loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be required,
in Lender’s sole and absolute discretion) that Lender may incur, directly or indirectly, as a result of a default under Sections
4.1.8 or 5.2.11 of the Loan Agreement.

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Section 8.4         
Duty to Defend; Attorneys’ Fees and Other Fees and Expenses.
Upon written request by any Indemnified Party, Borrower shall defend such Indemnified Party (if requested by any Indemnified Party,
in the name of the Indemnified Party) by attorneys and other professionals approved by the Indemnified Parties. Notwithstanding
the foregoing, if the defendants in any such claim or proceeding include both Borrower and any Indemnified Party and Borrower and
such Indemnified Party shall have reasonably concluded that there are any legal defenses available to it and/or other Indemnified
Parties that are different from or additional to those available to Borrower, such Indemnified Party shall have the right to select
separate counsel, at the cost and expense of Borrower, to assert such legal defenses and to otherwise participate in the defense
of such action on behalf of such Indemnified Party. Upon demand, Borrower shall pay or, in the sole and absolute discretion of
the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys,
engineers, environmental consultants, laboratories and other professionals in connection therewith.

Article
9 - WAIVERS

Section 9.1         
Waiver of Counterclaim. To the extent permitted by applicable law, Borrower hereby waives the right
to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against it by
Lender arising out of or in any way connected with this Security Instrument, the Loan Agreement, the Note, any of the other Loan
Documents, or the Obligations.

Section 9.2         
Marshalling and Other Matters. To the extent permitted by applicable law, Borrower hereby waives
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.

Section 9.3         
Waiver of Notice. To the extent permitted by applicable law, Borrower shall not be entitled to any
notices of any nature whatsoever from Lender except with respect to matters for which this Security Instrument specifically and
expressly provides for the giving of notice by Lender to Borrower and except with respect to matters for which Lender is required
by applicable law to give notice, and Borrower hereby expressly waives the right to receive any notice from Lender with respect
to any matter for which this Security Instrument does not specifically and expressly provide for the giving of notice by Lender
to Borrower.

Section 9.4         
Waiver of Statute of Limitations. To the extent permitted by applicable law, Borrower
hereby expressly waives and releases to the fullest extent permitted by law, the pleading of any statute of limitations as a defense
to payment of the Debt or performance of its Other Obligations.[1]

[1]
Note to Borrower: The enforceability of this waiver can be carved out of the enforceability opinion.

 

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Section 9.5         
Survival. The indemnifications made pursuant to Section 8.3 herein and the representations and warranties,
covenants, and other obligations arising under the Environmental Indemnity, shall continue indefinitely in full force and effect
and shall survive and shall in no way be impaired by: any satisfaction or other termination of this Security Instrument, any assignment
or other transfer of all or any portion of this Security Instrument or Lender’s interest in the Property (but, in such case,
shall benefit both Indemnified Parties and any assignee or transferee), any exercise of Lender’s rights and remedies pursuant
hereto including but not limited to foreclosure or acceptance of a deed in lieu of foreclosure, any exercise of any rights and
remedies pursuant to the Loan Agreement, the Note or any of the other Loan Documents, any transfer of all or any portion of the
Property (whether by Borrower or by Lender following foreclosure or acceptance of a deed in lieu of foreclosure or at any other
time), any amendment to this Security Instrument, the Loan Agreement, the Note or the other Loan Documents, and any act or omission
that might otherwise be construed as a release or discharge of Borrower from the obligations pursuant hereto.

Article
10 - EXCULPATION

The provisions of
Section 12.23 of the Loan Agreement are hereby incorporated by reference into this Security Instrument to the same extent and with
the same force as if fully set forth herein.

Article
11 - NOTICES

All notices or other
written communications hereunder shall be delivered in accordance with Section 12.6 of the Loan Agreement.

Article
12 - APPLICABLE LAW

Section 12.1      
GOVERNING LAW. (a) THIS SECURITY INSTRUMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

Section 12.2      
Usury Laws. Notwithstanding anything to the contrary, (a) all agreements and communications between Borrower
and Lender are hereby and shall automatically be limited so that, after taking into account all amounts deemed interest, the interest
contracted for, charged or received by Lender shall never exceed the maximum lawful rate or amount, (b) in calculating whether
any interest exceeds the lawful maximum, all such interest shall be amortized, prorated, allocated and spread over the full amount
and term of all principal indebtedness of Borrower to Lender, and (c) if through any contingency or event, Lender receives or is
deemed to receive interest in excess of the lawful maximum, any such excess shall be deemed to have been applied toward payment
of the principal of any and all then outstanding indebtedness of Borrower to Lender, or if there is no such indebtedness, shall
immediately be returned to Borrower.

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Section 12.3      
Provisions Subject to Applicable Law. All rights, powers and remedies provided in this
Security Instrument may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of
law and are intended to be limited to the extent necessary so that they will not render this Security Instrument invalid, unenforceable
or not entitled to be recorded, registered or filed under the provisions of any applicable law. If any term of this Security Instrument
or any application thereof shall be invalid or unenforceable, the remainder of this Security Instrument and any other application
of the term shall not be affected thereby.

Article
13 - DEFINITIONS

All capitalized
terms not defined herein shall have the respective meanings set forth in the Loan Agreement. 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 word “Note” shall mean “the Note and any other evidence
of indebtedness secured by this Security Instrument,” the word “Property” shall include any portion of
the Property and any interest therein, and the phrases “attorneys’ fees”, “legal fees”
and “counsel fees” shall include any and all attorneys’, paralegal and law clerk fees and disbursements,
including, but not limited to, fees and disbursements at the pre-trial, trial and appellate levels incurred or paid by Lender in
protecting its interest in the Property, the Leases and the Rents and enforcing its rights hereunder.

Article
14 - MISCELLANEOUS PROVISIONS

Section 14.1      
No Oral Change. This Security Instrument, and any provisions hereof, may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Borrower or Lender, but
only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension,
change, discharge or termination is sought.

Section 14.2      
Successors and Assigns. This Security Instrument shall be binding upon and inure to the benefit of Borrower
and Lender and their respective successors and assigns forever.

Section 14.3      
Inapplicable Provisions. If any term, covenant or condition of the Loan Agreement, the Note or this Security
Instrument is held to be invalid, illegal or unenforceable in any respect, the Loan Agreement, the Note and this Security Instrument
shall be construed without such provision.

Section 14.4      
Headings, etc. The headings and captions of various
Sections of 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.

    22 

     

    

 

Section 14.5      
Number and Gender. Whenever the context may require, any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice
versa.

Section 14.6      
Subrogation. If any or all of the proceeds of the Note have been used to extinguish, extend or renew any indebtedness
heretofore existing against the Property, then, to the extent of the funds so used, Lender shall be subrogated to all of the rights,
claims, liens, titles, and interests existing against the Property heretofore held by, or in favor of, the holder of such indebtedness
and such former rights, claims, liens, titles, and interests, if any, are not waived but rather are continued in full force and
effect in favor of Lender and are merged with the lien and security interest created herein as cumulative security for the repayment
of the Debt, the performance and discharge of Borrower’s obligations hereunder, under the Loan Agreement, the Note and the
other Loan Documents and the performance and discharge of the Other Obligations.

Section 14.7      
Entire Agreement. The Note, the Loan Agreement, this Security Instrument and the other Loan Documents
constitute the entire understanding and agreement between Borrower and Lender with respect to the transactions arising in connection
with the Debt and supersede all prior written or oral understandings and agreements between Borrower and Lender with respect thereto.
Borrower hereby acknowledges that, except as incorporated in writing in the Note, the Loan Agreement, this Security Instrument
and the other Loan Documents, there are not, and were not, and no persons are or were authorized by Lender to make, any representations,
understandings, stipulations, agreements or promises, oral or written, with respect to the transaction which is the subject of
the Note, the Loan Agreement, this Security Instrument and the other Loan Documents.

Section 14.8      
Limitation on Lender’s Responsibility. No provision of this Security Instrument shall operate to place
any obligation or liability for the control, care, management or repair of the Property upon Lender, nor shall it operate to make
Lender responsible or liable for any waste committed on the Property by the Tenants or any other Person, or for any dangerous or
defective condition of the Property, or for any negligence in the management, upkeep, repair or control of the Property resulting
in loss or injury or death to any Tenant, licensee, employee or stranger. Nothing herein contained shall be construed as constituting
Lender a “mortgagee in possession.”

Section 14.9      
Joint and Several. If more than one Person has executed this Security Instrument as “Borrower,”
the representations, covenants, warranties and obligations of all such Persons hereunder shall be joint and several.

    23 

     

    

 

Section 14.10  
No Waiver. No single or partial exercise by Lender, or delay or omission in the exercise by Lender, of any
right or remedy under the Loan Documents shall preclude, waive or limit the exercise of any other right or remedy. Lender shall
at all times have the right to proceed against any portion of, or interest in, the Property without waiving any other rights or
remedies with respect to any other portion of the Property. No right or remedy under any of the Loan Documents is intended to be
exclusive of any other right or remedy but shall be cumulative and may be exercised concurrently with or independently from any
other right and remedy under any of the Loan Documents or under applicable law.

Article
15 - STATE-SPECIFIC PROVISIONS

Section 15.1      
Principles Of Construction. In the event of any inconsistencies
between the terms and conditions of this Article 15 and the other terms and conditions of this Security Instrument, the
terms and conditions of this Article 15 shall control and be binding.

Section 15.2      
Open-End Mortgage. This Security Instrument is an Open-End Mortgage as defined in Section 8143(f) of Title
42 of the Pennsylvania Consolidated Statutes, and as such, is entitled to the benefits of 42 PA. C.S.A. § 8143 et seq. (the
“Act”) and shall secure future advances. The parties to this Security Instrument intend that, in addition to
any other debt or obligations secured hereby, this Security Instrument shall secure unpaid balances of future advances made after
this Security Instrument is left for record with the Recorder’s Office of the Counties in Pennsylvania in which the Property
is located. The maximum amount of indebtedness (as defined in 42 PA. C.S.A. § 8143) that may be outstanding at any time and
secured hereby is $153,065,000.00, plus accrued and unpaid interest thereon. In addition to the obligations of Borrower with respect
to such loan indebtedness and interest, this Security Instrument secures unpaid balances of advances made with respect to the Property
for the payment of taxes, assessments, maintenance charges, insurance premiums and costs incurred for the protection of the Property
or the lien of this Security Instrument, and costs and expenses, including attorneys’ fees, court costs and disbursements,
incurred by Lender by reason of default by Borrower under the Note, the Loan Agreement, this Security Instrument or the other Loan
Documents.

    24 

     

    

 

 

Notices pursuant to the Act
shall be delivered to:

Metropolitan Life Insurance Company

10 Park Avenue, 3rd Floor

PO Box 1902

Morristown, New Jersey 07962

Attention: Senior Managing Director, Real Estate Investments

Facsimile No. (973) 355-4430

With a copy to:

Metropolitan Life Insurance Company

10 Park Avenue, 3rd Floor

PO Box 1902

Morristown, New Jersey 07962

Attention: Associate General Counsel, Real Estate Investments

Facsimile No. (973) 355-4920

Section 15.3           
Remedies. The text of Section 7.1 of this Security Instrument entitled “REMEDIES” is hereby deleted
and the following is substituted therefor:

Upon the occurrence and continuance of
any Event of Default, Borrower agrees that 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, including, but not limited to, 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:

(a)            
Lender may declare the entire unpaid principal balance of the Note to be due and payable immediately, whereupon the obligations
secured hereby shall become immediately due and payable. Thereafter, the default may be cured only by the payment of the entire
Debt.

    25 

     

    

 

(b)           
Lender may (i) institute and maintain an action of mortgage foreclosure against any of the Property through judicial proceedings
pursuant to the applicable statutes, ordinances, or rules of civil procedure, (ii) institute and maintain an action on the obligations
secured hereby, (iii) have judgment entered pursuant to any power to confess judgment contained in this Security Instrument, (iv)
sell or cause to be sold any of the Property at public sale, and convey the same to the purchaser in accordance with said statutes
in a single parcel or in several parcels at the option of Lender, or (v) take such other action at law or in equity for the enforcement
of any document evidencing or securing the obligations secured hereby as the law may allow. Lender may proceed in any such action
to final judgment and execution thereon for all sums due under Subsection (a) of this Section 8.1, together with interest on such
sums as provided in the Note and the Loan Agreement, all costs of suit and a reasonable attorneys’ commission for fees and
expenses actually incurred. To the extent permitted by law, interest at a rate equal to the Default Rate shall be due on any judgment
obtained by Lender from the date of judgment until actual payment is made of the full amount of the judgment by the Sheriff or
otherwise.

(c)            
Lender may, without releasing Borrower from any obligation under any document evidencing or securing the obligations secured
hereby or under any lease or waiving any default: (i) collect any or all of the rents, including any rents past due and unpaid,
(ii) perform any obligation or exercise any right or remedy of Borrower under any lease, or (iii) enforce any obligation of any
tenant of any of the Property. Lender shall not be obligated to do any of the foregoing, even if Lender may have performed any
obligation or exercised any remedy of landlord or have enforced any obligation of a tenant. Lender may exercise any right under
this subsection (c) whether or not Lender shall have entered into possession of any of the Property, and nothing contained herein
shall be construed as constituting Lender a “mortgagee in possession” unless Lender shall have entered into and shall
remain in actual possession of the Property. Borrower hereby authorizes and instructs each and every present and future tenant
of any of the Property to pay all rents directly to Lender and to perform all other obligations of that tenant for the direct benefit
of Lender as if Lender were the landlord under the lease with that tenant immediately upon receipt of a demand by Lender to make
such payment or perform such obligations. No tenant shall have any responsibility to ascertain whether such demand is permitted
hereunder or whether an Event of Default shall have occurred; Borrower hereby waives any right, claim or demand it may now or hereafter
have against any such tenant by reason of such payment of rents or performance of obligations to Lender; and any such payment or
performance to Lender shall discharge the obligations of the tenant to make such payment or performance to Borrower. Borrower agrees
to indemnify Lender and hold Lender harmless from any and all liability under any lease and from any and all claims and demands
which may be asserted against Lender by reason of any alleged obligations to perform any provision of any lease, except as to Lender’s
own negligence or willful misconduct.

    26 

     

    

 

(d)           
Lender may, without releasing Borrower from any obligation under any document evidencing or securing the obligations secured
hereby or under any lease or waiving any default, enter upon and take possession of any of the Property, with or without legal
action and by force if necessary, or upon any proper action being commenced for the foreclosure of this Security Instrument, have
a receiver appointed without proof of depreciation or inadequacy of the value of the Property or other security or proof of the
insolvency of Borrower. Lender or said receiver may manage and operate any of the Property; make, cancel, enforce or modify leases;
obtain and evict tenants; establish or change the amount of any rents; and perform any acts which Lender deems proper to protect
the security of this Security Instrument. After deduction of all costs and expenses of operation and management of the Property
and of collection of the rents (including reasonable attorneys’ fees actually incurred, administration expenses, management
fees and brokers’ commissions), Lender may apply the rents received by Lender to the payment of any or all of the following,
in such order and amounts as Lender, in its sole discretion, may elect: liens on any of the Property, taxes, claims, insurance
premiums, other carrying charges, invoices of persons who have supplied goods or services to or for the benefit of any of the Property,
costs and expenses of maintenance, repair, restoration, alteration or improvement of any of the Property, costs and expenses of
maintenance, repair, restoration, alteration or improvement of any of the Property, or any amount outstanding on the obligations
secured hereby. Lender may, in its sole discretion, determine the method by which, and extent to which, the rents will be collected
and obligations of tenants enforced; and Lender may waive or fail to enforce any right or remedy of the landlord under a lease.
Lender shall not be accountable for any rents or other sums it does not actually receive. Borrower hereby appoints Lender as its
attorney-in-fact to perform all acts which Borrower is required or permitted to perform under any and all leases.

(e)            
Lender may enter upon and take possession of the Property, with or without legal action, and by force if necessary, collect
therefrom all rentals (which term shall also include sums payable for use and occupation) and, after deducting all costs of collection
and administration expense, apply the net rentals to any one or more of the following items in such manner and in such order of
priority as Lender, in Lender’s sole discretion, may elect: the payment of any sums due under any prior lien, taxes, water
and sewer rents, charges and claims, insurance premiums and all other carrying charges, and to the maintenance, repair or restoration
of the Property, or on account of the Debt; in and for that purpose Borrower hereby assigns to Lender all rentals due and to become
due under any lease or leases or rights to use and occupation of the Property hereafter created, as well as all rights and remedies
provided in such lease or leases or at law or in equity for the collection of the rentals.

(f)            
Intentionally omitted.

(g)           
any time before the expiration of sixty (60) days after Lender acquires legal title to the Property by any transfer pursuant
to the exercise of a remedy hereunder or otherwise, even though Lender shall have enforced such lease, collected rents thereunder
or taken any action that might be deemed by law to constitute an affirmance of the lease. Such disaffirmance shall be made by notice
addressed to the tenant at the Property or, at Lender’s option, such other address of the tenant as may be provided in that
tenant’s lease.

    27 

     

    

 

(h)           
Lender may take possession of any of the Property constituting personal property and may sell such property pursuant to
the provisions of the applicable Uniform Commercial Code and exercise such other rights and remedies with respect to such property
as may be provided by said Code.

(i)             
Lender may apply on account of the obligations secured hereby the balance of the accumulated installment payments made by
Borrower for taxes, water and sewer rents and insurance premiums, and all other items for which Lender has made payment, as set
forth herein.

(j)             
Upon the acceleration of the maturity of the obligations secured hereby as herein provided, a tender of payment of the amount
necessary to satisfy the entire Debt made at any time prior to foreclosure sale by Borrower, its successors or assigns, shall,
to the extent permitted by law, constitute an evasion of the prepayment terms of the obligations secured hereby and be deemed to
be a voluntary prepayment thereunder, and Lender shall not be obligated to accept any such tender of payment unless such tender
of payment includes the additional prepayment premium required under the terms of the prepayment privilege, if any, contained in
the Note and the Loan Agreement.

In the event of a sale, by foreclosure, power of sale,
or otherwise, of less than all of the Property, this Security Instrument shall continue as a lien and security interest on the
remaining portion of the Property unimpaired and without loss of priority. Notwithstanding the provisions of this Section 8.1 to
the contrary, if any Event of Default as described in Subsection 10.1(f) of the Loan Agreement shall occur, the entire unpaid Debt
shall be automatically due and payable, without any further notice, demand or other action by Lender.

Section 15.4           
Commercial Loan. Borrower represents and warrants that the Debt included as obligations secured by this Security
Instrument was obtained solely for the purpose of carrying on or acquiring a business or commercial investment and not for residential,
consumer or household purposes.

Section 15.5           
Construction Mortgage. This Security Instrument is intended to be a Construction Mortgage within the meaning
of 13 Pa. C.S.A. § 9313(a).

    28 

     

    

 

Section 15.6      
Power of Attorney. LENDER AGREES THAT THE POWER OF ATTORNEY GRANTED BY BORROWER TO LENDER UNDER THIS SECURITY
INSTRUMENT SHALL ONLY BE EXERCISED UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF EVENT OF DEFAULT. BORROWER HEREBY ACKNOWLEDGES
AND AGREES THAT BORROWER’S REASONABLE EXPECTATION WITH RESPECT TO THE AUTHORIZATION GRANTED PURSUANT TO ANY POWER OF ATTORNEY
HEREUNDER OR UNDER ANY OTHER LOAN DOCUMENT, IS THAT LENDERS OR THEIR ATTORNEYS MAY SEEK TO FORECLOSE ON COLLATERAL AND TAKE ANY
OTHER ACTIONS WITH RESPECT TO THE EXERCISE OF LENDERS’ RIGHTS AND REMEDIES HEREUNDER AND UNDER THE OTHER LOAN DOCUMENTS. 
BORROWER HEREBY WAIVES ALL OTHER DUTIES OF LENDER THAT MAY ARISE UNDER 20 PA. C.S.A. §5601.3(b).  BORROWER HEREBY REMISES,
RELEASES, AND FOREVER DISCHARGES, AND WAIVES ALL CLAIMS, CAUSES OF ACTION AND ANY OTHER RIGHTS AGAINST ANY LENDER AND ITS OR THEIR
RESPECTIVE PREDECESSORS, LEGAL REPRESENTATIVES, PAST AND PRESENT PARENT COMPANIES, SUBSIDIARIES, AGENTS, EMPLOYEES, SERVANTS, INSURERS,
ATTORNEYS, OFFICERS, DIRECTORS, STOCKHOLDERS, AFFILIATES, AFFILIATE COUNTERPARTIES, SUCCESSORS IN INTEREST, AND ASSIGNS (COLLECTIVELY,
“INDEMNIFIED PARTY”) OF AND FROM ANY AND ALL CLAIMS, DEMANDS, LIABILITIES, OBLIGATIONS, LOSSES, PENALTIES, FINES, ACTIONS,
JUDGMENTS, SUITS, COSTS, CHARGES, EXPENSES AND DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER INCLUDING ATTORNEYS’ FEES,
ARISING UNDER OR RELATING TO ANY DUTIES OF AN AGENT UNDER 20 PA. C.S.A. §5601.3 OR OTHERWISE; PROVIDED THAT NO BORROWER SHALL
BE LIABLE FOR ANY PORTION OF SUCH CLAIMS, DEMANDS, LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, FINES, ACTIONS, JUDGMENTS,
SUITS, COSTS, CHARGES, EXPENSES AND DISBURSEMENTS RESULTING FROM ANY INDEMNIFIED PARTY’S GROSS (NOT MERE) NEGLIGENCE OR WILLFUL
MISCONDUCT (AS DETERMINED BY A COURT OF COMPETENT JURISDICTION IN A FINAL NON-APPEALABLE JUDGMENT).

[NO FURTHER
TEXT ON THIS PAGE]

    29 

     

    

IN WITNESS WHEREOF,
THIS SECURITY INSTRUMENT has been executed by Borrower as of the day and year first above written.

	 	
        BORROWER:

         

        IREIT PITTSBURGH SETTLERS RIDGE, L.L.C., 

        a Delaware limited liability company

	 	 	 	 
	 	By:	
        Inland Real Estate Income Trust, Inc.,

        a Maryland corporation, its sole member

	 	 	 	 
	 	 	By:	/s/ Mary J. Pechous
	 	 	 	Name:  Mary J. Pechous
	 	 	 	Title:    Assistant Secretary
	 	 	 	 

 

 

The mailing address of the within-named Lender
is:

 

Metropolitan Life Insurance Company

10 Park Avenue, 3rd Floor

PO Box 1902

Morristown, New Jersey 07962

 

 

METROPOLITAN LIFE INSURANCE COMPANY,

a New York corporation

 

	By:	/s/ Michael Hofheinz	 
	 	
        Name: Michael Hofheinz

        Title: Director
	 

 

    	 

    	 

    

 

ACKNOWLEDGMENT

 

STATE OF ILLINOIS          )

: ss.:

COUNTY OF DUPAGE      )

On this, the 23rd day of November 2015,
before me, the subscriber, a Notary Public in and for the State and county aforesaid, personally appeared Mary J. Pechous, who
acknowledged himself/herself to be Assistant Secretary of Inland Real Estate Income Trust, Inc., a Maryland corporation, the sole
general partner of IREIT Pittsburgh Settlers Ridge, L.L.C., a Delaware limited liability company, who I am satisfied is the person
who signed the within Security Instrument and who acknowledged that he/she executed same as such Assistant Secretary on behalf
of the limited partnership, being authorized to do so, and that the within Security Instrument is the voluntary act and deed of
such limited partnership.

WITNESS my hand and seal the day and year
aforesaid.

	 	/s/ Vivian L. Brown
	 	Notary Public

 

My Commission Expires:

       4-1-2018       

    	 

    	 

    

 

EXHIBIT
A

LEGAL
DESCRIPTION

First Described:

 

All those certain lots or pieces of ground
situate in the Township of Robinson, County of Allegheny and Commonwealth of Pennsylvania, being Parcels B and D in the Robinson
Park Associates Consolidation Plan, as recorded in the Department of Real Estate of Allegheny County, Pennsylvania, in Plan Book
Volume 257, page 66; also Parcel 1 in the Settlers Ridge Subdivision Plan No. 1, as recorded in the Department of Real Estate of
Allegheny County, Pennsylvania, in Plan Book Volume 263, page 78; and also Lots 2, 3, 5, 6, 7 and 8 on the Settlers Ridge Subdivision
Plan No. 2, as recorded in the Department of Real Estate of Allegheny County, Pennsylvania, in Plan Book Volume 264, page 112.

 

Being designated as the following tax parcels:

 

Parcel B Block 334-H, Lot 190

Parcel D Block 265-J, Lot 10

Parcel 1 Block 334-H, Lot 100

Lot 2 Block 265-E, Lot 50

Lot 3 Block 265-K, Lot 60

Lot 5 Block 265-E, Lot 100

Lot 6 Block 265-E, Lot 125

Lot 7 Block 334-H, Lot 60

Lot 8 Block 334-H, Lot 80

 

First Described being part of the same property
which was conveyed by Robinson Park Associates to Settlers Ridge, L.P. by deed dated August 15, 2007 and recorded in Deed Book
Volume 13350, page 140. Settlers Ridge, L.P. became an acquired company as evidenced by Declaration of Acquisition dated October
1, 2015 and recorded on October 16, 2015 in Deed Book Volume 16163, page 53; and by Declaration of Acquisition dated October 1,
2015 and recorded on October 16, 2015 in Deed Book Volume 16163, page 53.

 

The name of Settlers Ridge, L.P. was changed
to IREIT Pittsburgh Settlers Ridge, L.L.C., a Delaware limited liability company, by Certificate of Conversion filed with the Office
of the Secretary of State of Delaware on October 1, 2015 and Statement of Conversion filed with the Office of the Secretary of
State of the Commonwealth of Pennsylvania on October 5, 2015, both as evidenced by Affidavit of Name Change dated November 3, 2015
and recorded on November 6, 2015 in Deed Book Volume 16188, page 471. As a result of the foregoing, title is vested in IREIT Pittsburgh
Settlers Ridge, L.L.C., a Delaware limited liability company.

 

Second Described:

 

All those certain lots or pieces of ground
situate in the Township of Robinson, County of Allegheny and Commonwealth of Pennsylvania, being Lot 1 and Lot 4 on the Settlers
Ridge Subdivision Plan No. 2, as

 

 

recorded in the Department of Real Estate of
Allegheny County, Pennsylvania, in Plan Book Volume 264, page 112.

    	 

    	 

    

 

Being designated as the following tax parcels:

Lot 1 Block 265-E, Lot 1

Lot 4 Block 265-J, Lot 25

 

Second Described being the same property that
was conveyed by Settlers Ridge, L.P. to Settlers Ridge Management, L.P. by deed dated December 10, 2010 and recorded in Deed Book
Volume 14454, page 366. Settlers Ridge Management, L.P. became an acquired company as evidenced by Declaration of Acquisition dated
October 1, 2015 and recorded on October 16, 2015 in Deed Book Volume 16163, page 55.

 

The name of Settlers Ridge Management, L.P.
was changed to IREIT Pittsburgh Settlers Ridge II, L.L.C., a Delaware limited liability company, by Certificate of Conversion filed
with the Office of the Secretary of State of Delaware on October 1, 2015 and Statement of Conversion filed with the Office of the
Secretary of State of the Commonwealth of Pennsylvania on October 5, 2015; IREIT Pittsburgh Settlers Ridge II, L.L.C., a Delaware
limited liability company, merged with and into the surviving entity, IREIT Pittsburgh Settlers Ridge, L.L.C., a Delaware limited
liability company, by Certificate of Merger filed with the Office of the Secretary of State of Delaware on October 1, 2015 and
Transfer to Foreign Registration filed with the Office of the Secretary of State of the Commonwealth of Pennsylvania on October
5, 2015, all as evidenced by Affidavit of Name Change dated November 3, 2015 and recorded on November 6, 2015 in Deed Book Volume
16188, page 473. As a result of the foregoing, title is vested in IREIT Pittsburgh Settlers Ridge, L.L.C., a Delaware limited liability
company.

 

Third Described:

 

Together with those non-exclusive easements
benefitting the Land insured as First Described and Second Described created by that certain Reciprocal Easement, Covenant and
Restriction Agreement between Settlers Ridge L.P. and Settlers Ridge Management L.P., dated December 10, 2010 and recorded in Deed
Book Volume 14454, page 389; as amended by First Amendment to Reciprocal Easement, Covenant and Restriction Agreement between Settlers
Ridge L.P. and Settlers Ridge Management L.P., dated June 11, 2012 and recorded in Deed Book Volume 14943, page 228.

 

Fourth Described:

 

Together with the easement rights benefitting
the Land insured as Second Described created by that certain Easement Agreement between Chief Commercial Construction, L.P. and
Settlers Ridge, L.P., dated May 9, 2007 and recorded in Deed Book Volume 13560, page 334; as assigned by Assignment and Assumption
of Agreements from Settlers Ridge, L.P. to Settlers Ridge Management, L.P., dated December 15, 2010, effective as of December 17,
2010 and recorded in Deed Book Volume 14473, page 513.Exhibit 10.4

 

 

 

	
        RECORDING REQUESTED

        BY AND WHEN

        RECORDED RETURN TO:

        Peter J. Mignone, Esq.

        Hunton & Williams LLP

        200 Park Avenue

        New York, NY 10166
	 

 

Tax Parcels: 334-H- 190; 265-J-10; 334-H-100; 265-E-1; 265-E-50;
265-K-60; 265-J-25; 265-E-100; 265-E-125; 334-H-60; and 334-H-80

 

ASSIGNMENT
OF LEASES

DEFINED
TERMS

	Closing
    Date:    Dated as of November 23, 2015 (the “Execution Date”),
    but made effective as of December 3, 2015 (the “Closing Date”)
	Loan:
                     A first mortgage loan in an amount of $76,532,500.00 from Assignee
    to Assignor
	
        Assignor & Address:

        IREIT
        Pittsburgh Settlers Ridge, L.L.C.

        2901 Butterfield Road

        Oak Brook, Illinois 60523

	
        Assignee & Address:

        Metropolitan Life Insurance Company, a New York corporation

        10 Park Avenue

        Morristown, New Jersey 07962

        Attention: Senior Vice President

        Real Estate Investments

	Note:     A
    Promissory Note executed by Assignor in favor of Assignee in the amount of the Loan dated as of December 3, 2015
	Security
    Instrument:    An Open-End Mortgage, Security Agreement
    and Fixture Filing dated as of even date herewith, executed by Assignor to Assignee securing repayment of the Note.  The
    Security Instrument will be recorded in the records of the County in which the Property is located.
	Loan
    Agreement:         A Loan Agreement dated as of the Closing Date by and
    between Assignor and Assignee

    	 

    	 

    

THIS ASSIGNMENT
OF LEASES (this “Agreement”) is entered into by Assignor as of the Execution Date but effective as of the
Closing Date in favor of Assignee and affects the Property as hereinafter described. Certain terms used in this Agreement are defined
in the Defined Terms on page 1.

RECITALS

A.             
Pursuant to the Loan Agreement, Assignee has loaned or will loan to Assignor the Loan which is evidenced by the Note and
includes all extensions, renewals, modifications and amendments. The payment of the Note is secured by the Security Instrument
which encumbers Assignor’s interest in the real property described in Exhibit A attached to this Agreement (the “Land”)
and Assignor’s interest in the improvements and personal property and equipment situated on the Land (the “Improvements”)
(collectively, the “Property”); and

B.             
In accordance with the terms set forth herein, Assignor desires to assign to Assignee all of Assignor’s right, title
and interest in and to all leases and all other agreements for possession of all or any portion of the Property, including all
of the same now or hereafter existing, and all extensions, modifications, amendments, expansions and renewals of any of the same
and all guaranties of any obligations under any of the foregoing, including all modifications and amendments to such guaranties.
The documents described in this Recital B are collectively referred to as the “Leases”.

In consideration
of the Recitals and for good and valuable consideration, Assignor agrees with Assignee and its successors and assigns as follows:

Section 1.            
Payment of Note. Assignor desires to secure (a) the timely payment of the principal of and interest on the
Note and all other indebtedness secured by the Security Instrument; and (b) the full compliance with the terms, conditions, covenants
and agreements contained in the Note, the Loan Agreement, the Security Instrument and the other documents executed by Assignor
in connection with the Loan.

Section 2.            
Present and Absolute Assignment of Leases, Rents and Profits. Assignor absolutely, presently and unconditionally
grants, assigns and transfers to Assignee all of Assignor’s right, title and interest in and to the Leases. This grant includes
without limitation all of the following (the “Income”): (a) all rent payable under the Leases; (b) all tenant
security deposits held by Assignor pursuant to the Leases; (c) all additional rent payable under the Leases; (d) all proceeds of
insurance payable to Assignor under the Leases and all awards and payments on account of any taking or condemnation; (e) all claims,
damages and other amounts payable to Assignor in the event of a default under or termination of any of the Leases, including without
limitation all of Assignor’s claims to the payment of damages arising from any rejection by a tenant of any Lease under the
Bankruptcy Code as amended from time to time, and (f) all other items included in the definition of Rents under the Loan Agreement.

    1 

     

    

 

Section 3.            
Specific Covenants of Assignor. Assignor covenants and agrees:

(a)            
No action by Assignee shall release Assignor from its obligations under this Agreement. Assignor irrevocably appoints Assignee
its true and lawful attorney to exercise its rights under this Agreement, which appointment is coupled with an interest.

(b)           
If a petition under the Bankruptcy Code shall be filed by or against Assignor and Assignor, as landlord, shall determine
to reject any Lease pursuant to Section 365 (a), then Assignee shall have the right, but not the obligation, to demand that Assignor
assume and assign the Lease to Assignee and that Assignor shall provide adequate assurance of future performance under the Lease,
in which case Assignor shall comply with such demands.

(c)            
Assignee’s rights under this Agreement may be exercised either independently of or concurrently with any other right
in this Agreement, the Loan Agreement, the Security Instrument or in any other document securing the Note. No action taken by Assignee
under this Agreement shall cure or waive any default nor affect any notice under the Loan Agreement or the Security Instrument.

Section 4.            
Confirmation of Assignment. Assignor covenants and agrees, upon demand, to confirm in writing the assignment
to Assignee of all present and future Leases upon the terms set forth in this Agreement. Notwithstanding the preceding sentence,
the terms and provisions of this Agreement shall apply automatically to any Leases entered into after the Closing Date.

Section 5.            
Representations and Warranties. Assignor makes the following representations and warranties to Assignee: (a)
Assignor has not executed any currently effective prior assignment of its right, title and interest in the Leases or the Income,
and (b) Assignor has not done any act which might prevent Assignee from exercising its rights under this Agreement.

Section 6.            
License to Collect Monies Until Event of Default. So long as no Event of Default (as defined in the Loan Agreement)
exists, Assignor shall have a license to receive and use all Income, subject to compliance with the Loan Documents. This license
shall be terminable at the sole option of Assignee, without regard to the adequacy of its security under this Agreement or under
the Security Instrument and without notice to Assignor, if there is an Event of Default. Notwithstanding the foregoing, this license
does not include the right to receive or use Insurance Proceeds or any Award, each as defined in and governed by the Loan Agreement.

    2 

     

    

 

Section 7.            
Entry by Assignee and Receiver. Assignee is authorized either in person or by agent, with or without bringing
any action or proceeding or having a receiver appointed by a court, (a) to enter upon, take possession of, manage and operate the
Property and collect the Income, and (b) to make, enforce, modify, and accept the surrender of the Leases. Assignee is authorized
to take these actions either with or without taking possession of the Property. In connection with this entry, Assignor authorizes
Assignee to perform all acts necessary for the operation and maintenance of the Property. Assignee may sue for or otherwise collect
all Income, including those past due and unpaid, and apply the Income, less costs and expenses of operation and collection, including
reasonable attorneys’ fees, to the indebtedness secured by the Security Instrument in such order as Assignee may determine.
Assignee’s exercise of its rights under this Section shall not be deemed to cure or waive any default or Event of Default.

Section 8.            
Indemnification. Assignor shall indemnify Assignee against and hold it harmless from any and all liability,
claims, loss or damage which it may incur under the Leases or under this Agreement.

Section 9.            
Mortgagee in Possession. To the fullest extent permitted by law, neither the assignment of Leases and Income
to Assignee nor the exercise by Assignee of any of its rights or remedies under this Agreement, including without limitation, the
entering into possession or the appointment of a receiver shall be deemed to make Assignee a “mortgagee-in-possession”
or otherwise liable with respect to the Property. Although Assignee has the right to do so, it shall not be obligated to perform
any obligation under the Leases by reason of this Agreement. To the fullest extent permitted by law, neither this Agreement nor
any action or inaction on the part of Assignee shall constitute an assumption on the part of Assignee of any obligation or liability
under any of the Leases.

Section 10.         
Reconveyance and Termination. Upon the payment in full of the Loan, as evidenced by the recording of a Satisfaction
of the Security Instrument, this Agreement shall be void and of no effect.

Section 11.         
Tenants Entitled to Rely on Assignee’s Requests. Assignor irrevocably authorizes and directs the tenants
and their successors, upon receipt of any written request of Assignee stating that an Event of Default exists, to pay to Assignee
the Income due and to become due under the Leases. Assignor agrees that the tenants shall have the right to rely upon any such
statement without any obligation to inquire as to whether any Event of Default actually exists and regardless of any claim of Assignor
to the contrary. Assignor agrees that it shall have no claim against the tenants for any Income paid by the tenants to Assignee.

Section 12.         
Successors and Assigns. This Agreement shall be binding upon the successors and assigns of Assignor and shall
inure to the benefit of and be enforceable by Assignee, its successors and assigns. If more than one person, corporation, partnership
or other entity shall execute this Agreement, then the obligations of the parties executing the Agreement shall be joint and several.

    3 

     

    

 

Section 13.         
Notices. All notices pursuant to this Agreement shall be given in accordance with the Notice provision of
the Loan Agreement, which is incorporated into this Agreement by this reference.

Section 14.         
Governing Law. This Agreement shall be governed and construed by the laws of the State in which the Property
is located.

Section 15.         
Miscellaneous. This Agreement may be modified, amended, waived, or terminated only by an instrument in writing
signed by the party against which enforcement of such modification, amendment, waiver, or termination is sought. No failure or
delay in exercising any of these rights shall constitute a waiver of any default or Event of Default. Assignor, at its expense,
will execute all documents and take all action that Assignee from time to time may reasonably request to preserve and protect the
rights provided under this Agreement. The headings in this Agreement are for convenience of reference only and shall not expand,
limit or otherwise affect the meanings of the provisions. This Agreement may be executed in several counterparts, each of which
shall be an original, but all of which shall constitute one document.

Section 16.         
Liability of Assignor. The obligations of Assignor under this Agreement are subject to the limitations on
recourse set forth in Section 12.23 of the Loan Agreement.

[NO FURTHER
TEXT ON THIS PAGE]

    4 

     

    

IN WITNESS WHEREOF,
THIS ASSIGNMENT OF LEASES has been duly executed by Assignor as of the day and year first above written.

	 	
        ASSIGNOR:

         

        IREIT PITTSBURGH SETTLERS RIDGE, L.L.C., 

        a Delaware limited liability company

	 	 	 	 
	 	By:	
        Inland Real Estate Income Trust, Inc.,

        a Maryland corporation, its sole member

	 	 	 	 
	 	 	By:	/s/ Mary J. Pechous
	 	 	 	Name:  Mary J. Pechous
	 	 	 	Title:    Assistant Secretary
	 	 	 	 

 

    	 

    	 

    

ACKNOWLEDGMENT

 

STATE OF ILLINOIS          )

: ss.:

COUNTY OF DUPAGE      )

On this, the 23rd day of November 2015,
before me, the subscriber, a Notary Public in and for the State and county aforesaid, personally appeared Mary J. Pechous, who
acknowledged himself/herself to be Assistant Secretary of Inland Real Estate Income Trust, Inc., a Maryland corporation, the sole
member of IREIT Pittsburgh Settlers Ridge, L.L.C., a Delaware limited liability company, who I am satisfied is the person who signed
the within Security Instrument and who acknowledged that he/she executed same as such Assistant Secretary on behalf of the limited
partnership, being authorized to do so, and that the within Security Instrument is the voluntary act and deed of such limited partnership.

WITNESS my hand and seal the day and year
aforesaid.

 

	 	/s/ Vivian L. Brown
	 	Notary Public

 

My Commission Expires:

          4-1-2018          

 

    	 

    	 

    

EXHIBIT
A

DESCRIPTION
OF LAND

First Described:

 

All those certain lots or pieces of ground
situate in the Township of Robinson, County of Allegheny and Commonwealth of Pennsylvania, being Parcels B and D in the Robinson
Park Associates Consolidation Plan, as recorded in the Department of Real Estate of Allegheny County, Pennsylvania, in Plan Book
Volume 257, page 66; also Parcel 1 in the Settlers Ridge Subdivision Plan No. 1, as recorded in the Department of Real Estate of
Allegheny County, Pennsylvania, in Plan Book Volume 263, page 78; and also Lots 2, 3, 5, 6, 7 and 8 on the Settlers Ridge Subdivision
Plan No. 2, as recorded in the Department of Real Estate of Allegheny County, Pennsylvania, in Plan Book Volume 264, page 112.

 

Being designated as the following tax parcels:

 

Parcel B Block 334-H, Lot 190

Parcel D Block 265-J, Lot 10

Parcel 1 Block 334-H, Lot 100

Lot 2 Block 265-E, Lot 50

Lot 3 Block 265-K, Lot 60

Lot 5 Block 265-E, Lot 100

Lot 6 Block 265-E, Lot 125

Lot 7 Block 334-H, Lot 60

Lot 8 Block 334-H, Lot 80

 

First Described being part of the same property
which was conveyed by Robinson Park Associates to Settlers Ridge, L.P. by deed dated August 15, 2007 and recorded in Deed Book
Volume 13350, page 140. Settlers Ridge, L.P. became an acquired company as evidenced by Declaration of Acquisition dated October
1, 2015 and recorded on October 16, 2015 in Deed Book Volume 16163, page 53; and by Declaration of Acquisition dated October 1,
2015 and recorded on October 16, 2015 in Deed Book Volume 16163, page 53.

 

The name of Settlers Ridge, L.P. was changed
to IREIT Pittsburgh Settlers Ridge, L.L.C., a Delaware limited liability company, by Certificate of Conversion filed with the Office
of the Secretary of State of Delaware on October 1, 2015 and Statement of Conversion filed with the Office of the Secretary of
State of the Commonwealth of Pennsylvania on October 5, 2015, both as evidenced by Affidavit of Name Change dated November 3, 2015
and recorded on November 6, 2015 in Deed Book Volume 16188, page 471. As a result of the foregoing, title is vested in IREIT Pittsburgh
Settlers Ridge, L.L.C., a Delaware limited liability company.

 

Second Described:

 

All those certain lots or pieces of ground
situate in the Township of Robinson, County of Allegheny and Commonwealth of Pennsylvania, being Lot 1 and Lot 4 on the Settlers
Ridge Subdivision Plan No. 2, as

 

 

recorded in the Department of Real Estate of
Allegheny County, Pennsylvania, in Plan Book Volume 264, page 112.

    	 

    	 

    

 

Being designated as the following tax parcels:

Lot 1 Block 265-E, Lot 1

Lot 4 Block 265-J, Lot 25

 

Second Described being the same property that
was conveyed by Settlers Ridge, L.P. to Settlers Ridge Management, L.P. by deed dated December 10, 2010 and recorded in Deed Book
Volume 14454, page 366. Settlers Ridge Management, L.P. became an acquired company as evidenced by Declaration of Acquisition dated
October 1, 2015 and recorded on October 16, 2015 in Deed Book Volume 16163, page 55.

 

The name of Settlers Ridge Management, L.P.
was changed to IREIT Pittsburgh Settlers Ridge II, L.L.C., a Delaware limited liability company, by Certificate of Conversion filed
with the Office of the Secretary of State of Delaware on October 1, 2015 and Statement of Conversion filed with the Office of the
Secretary of State of the Commonwealth of Pennsylvania on October 5, 2015; IREIT Pittsburgh Settlers Ridge II, L.L.C., a Delaware
limited liability company, merged with and into the surviving entity, IREIT Pittsburgh Settlers Ridge, L.L.C., a Delaware limited
liability company, by Certificate of Merger filed with the Office of the Secretary of State of Delaware on October 1, 2015 and
Transfer to Foreign Registration filed with the Office of the Secretary of State of the Commonwealth of Pennsylvania on October
5, 2015, all as evidenced by Affidavit of Name Change dated November 3, 2015 and recorded on November 6, 2015 in Deed Book Volume
16188, page 473. As a result of the foregoing, title is vested in IREIT Pittsburgh Settlers Ridge, L.L.C., a Delaware limited liability
company.

 

Third Described:

 

Together with those non-exclusive easements
benefitting the Land insured as First Described and Second Described created by that certain Reciprocal Easement, Covenant and
Restriction Agreement between Settlers Ridge L.P. and Settlers Ridge Management L.P., dated December 10, 2010 and recorded in Deed
Book Volume 14454, page 389; as amended by First Amendment to Reciprocal Easement, Covenant and Restriction Agreement between Settlers
Ridge L.P. and Settlers Ridge Management L.P., dated June 11, 2012 and recorded in Deed Book Volume 14943, page 228.

 

Fourth Described:

 

Together with the easement rights benefitting
the Land insured as Second Described created by that certain Easement Agreement between Chief Commercial Construction, L.P. and
Settlers Ridge, L.P., dated May 9, 2007 and recorded in Deed Book Volume 13560, page 334; as assigned by Assignment and Assumption
of Agreements from Settlers Ridge, L.P. to Settlers Ridge Management, L.P., dated December 15, 2010, effective as of December 17,
2010 and recorded in Deed Book Volume 14473, page 513.

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