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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 30, 2023
The Necessity Retail REIT, Inc.
(Exact Name of Registrant as Specified in its Charter)
Maryland |
|
001-38597 |
|
90-0929989 |
(State or other jurisdiction
of incorporation) |
|
(Commission File Number) |
|
(I.R.S. Employer
Identification No.) |
650
Fifth Avenue, 30th
Floor
New York,
New York |
10019 |
(Address of Principal Executive Offices) |
(zip code) |
Registrant’s telephone
number, including area code: (212) 415-6500
Former name or former
address, if changed since last report: Not Applicable
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
x |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on
which registered |
Class
A Common Stock, $0.01 par value per share |
|
RTL |
|
The Nasdaq Global Select Market |
7.50% Series A Cumulative Redeemable
Perpetual Preferred Stock, $0.01 par value per share |
|
RTLPP |
|
The Nasdaq Global Select Market |
7.375% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share |
|
RTLPO |
|
The Nasdaq Global Select Market |
Preferred Stock Purchase Rights |
|
|
|
The Nasdaq Global Select Market |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item
1.01. Entry into a Material Definitive Agreement.
On August 30, 2023, The
Necessity Retail REIT, Inc. (the “Company”), through certain subsidiaries (collectively, the “Borrowers”) of its
operating partnership, The Necessity Retail REIT Operating Partnership, L.P. (the “OP”), entered into a commercial mortgage-backed
security Loan Agreement (the “Loan Agreement”), with (i) Barclays Capital Real Estate Inc., (ii) Société Générale
Financial Corporation, (iii) Bank of Montreal and (iv) KeyBank National Association (each individually, a “Lender,” and collectively,
the “Lenders”), in the aggregate amount of $260 million (the “Loan”). In connection with the Loan Agreement, the
OP entered into a Guaranty Agreement (the “Guaranty”) and an Environmental Indemnity Agreement (the “Environmental Indemnity”)
for the benefit of the Lenders.
The Loan is secured by,
among other things, first priority mortgages on the Borrowers’ interests in 29 multi-tenant properties the Company owns across the
United States. The Loan has a 10-year term and is interest-only at a fixed rate of 6.45% per year. The Loan Agreement requires the Borrowers
to pay interest only on a monthly basis. The principal balance of the Loan is due on the maturity date of September 6, 2033. The Loan
Agreement requires the Borrowers to comply with certain covenants, including, among other things, maintain at all times a combination
of cash and cash equivalents totaling at least $13.5 million.
The Loan may be prepaid,
in whole (or in part, subject to the satisfaction of the partial release conditions in Section 2.5.2 of the Loan Agreement) at any time
after August 30, 2024, with no less than thirty days prior written notice to Lenders, subject to paying a Yield Maintenance Premium (as
defined in the Loan Agreement). In addition, following the earlier of August 30, 2026 and the date that is two years after the securitization
of the Loan, the Borrowers may be released from its obligations under the Loan Agreement as outlined in Section 2.4.1 of the Loan. The
Loan may also be repaid at par during the final six months prior to maturity.
The proceeds from the
Loan will be used to repay draws on the Company’s credit facility. The properties securing the Loan were removed from the borrowing
base of the credit facility reducing the borrowing base for making draws under the credit facility.
Pursuant to the Guaranty,
the OP has (i) guaranteed the full repayment of the Loan in the case of certain major defaults by a Borrower or the OP, including bankruptcy,
and (ii) indemnified the Lenders against losses, costs or liabilities related to certain other “bad boy” acts of any Borrower
or the OP, including fraud, willful misconduct, bad faith, and gross negligence. Pursuant to the Environmental Indemnity, the OP and the
Borrowers have indemnified the Lenders against losses, costs or liabilities related to certain environmental matters.
The descriptions in this
Current Report on Form 8-K of the Loan Agreement, the Guaranty and the Environmental Indemnity are summaries and are qualified in their
entirety by the terms of the Loan Agreement, the Guaranty and the Environmental Indemnity. Copies of the Loan Agreement, the Guaranty
and the Environmental Indemnity are attached as Exhibit 10.1, Exhibit 10.2 and Exhibit 10.3, respectively, to this Current Report on Form
8-K and incorporated by reference herein.
Item. 2.03 Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information contained
in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
Item
9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
No. |
|
Description |
10.1 |
|
Loan Agreement, dated as of August 30, 2023, among the borrower entities party thereto, and Barclays Capital Real Estate Inc., Société Générale Financial Corporation, Bank of Montreal, and KeyBank National Association. |
10.2 |
|
Guaranty Agreement, dated as of August 30, 2023, by The Necessity Retail REIT Operating Partnership, L.P. in favor of Barclays Capital Real Estate Inc., Société Générale Financial Corporation, Bank of Montreal, and KeyBank National Association. |
10.3 |
|
Environmental Indemnity Agreement, dated as of August 30, 2023, by The Necessity Retail REIT Operating Partnership, L.P. and the borrower entities party thereto, for the benefit of Barclays Capital Real Estate Inc., Société Générale Financial Corporation, Bank of Montreal, and KeyBank National Association. |
104 |
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL |
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
|
THE NECESSITY RETAIL REIT, INC. |
|
|
|
|
By: |
/s/ Edward M. Weil, Jr. |
|
|
Edward M. Weil, Jr. |
|
|
Chief Executive Officer and President
(Principal
Executive Officer) |
Dated: September 5, 2023
Exhibit 10.1
LOAN AGREEMENT
Dated as of August 30, 2023
Between
THE
ENTITIES SET FORTH ON SCHEDULE IV ATTACHED HERETO,
collectively, as Borrower
and
BARCLAYS
CAPITAL REAL ESTATE INC.,
and
SOCIÉTÉ
GÉNÉRALE FINANCIAL CORPORATION,
and
KEYBANK NATIONAL ASSOCIATION,
and
BANK OF MONTREAL
individually and/or collectively, as the context
may require, as Lender
Loan No. 00022669
TABLE OF CONTENTS
Page
ARTICLE I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION |
1 |
Section 1.1 |
Definitions |
1 |
Section 1.2 |
Principles of Construction |
43 |
ARTICLE II. GENERAL TERMS |
44 |
Section 2.1 |
Loan Commitment; Disbursement to Borrower |
44 |
2.1.1 | Agreement to Lend and Borrow |
44 |
2.1.2 | Single Disbursement to Borrower |
45 |
2.1.3 | The Note, Security Instrument and Loan Documents |
45 |
2.1.4 | Use of Proceeds |
45 |
Section 2.2 |
Interest Rate; Loan Payments; Late Payment Charge |
45 |
2.2.1 | Payments |
45 |
2.2.2 | Interest Calculation |
45 |
2.2.3 | Payment on Maturity Date |
45 |
2.2.4 | Payments after Default |
46 |
2.2.5 | Late Payment Charge |
46 |
2.2.6 | Usury Savings |
46 |
2.2.7 | Indemnified Taxes |
46 |
2.2.8 | Invalidated Payments |
47 |
2.2.9 | New Payment Date |
48 |
Section 2.3 |
Prepayments |
48 |
2.3.1 | Voluntary Prepayments |
48 |
2.3.2 | Mandatory Prepayments |
49 |
2.3.3 | Prepayment During Existence of Event of Default |
49 |
2.3.4 | Making of Payments |
50 |
2.3.5 | Application of Principal Prepayments |
50 |
Section 2.4 |
Defeasance |
50 |
2.4.1 | Voluntary Defeasance |
50 |
2.4.2 | Successor Borrower |
53 |
Section 2.5 |
Release of Property |
53 |
2.5.1 | Release of All Property |
53 |
2.5.2 | Release of Individual Property |
54 |
Section 2.6 |
Clearing Account/Cash Management |
58 |
2.6.1 | Clearing Account |
58 |
2.6.2 | Cash Management Account |
60 |
2.6.3 | Payments Received under the Cash Management Agreement |
60 |
ARTICLE III. INTENTIONALLY OMITTED |
61 |
ARTICLE IV. REPRESENTATIONS AND WARRANTIES |
61 |
Section 4.1 |
Borrower Representations |
61 |
4.1.1 | Organization |
61 |
4.1.2 | Proceedings |
61 |
4.1.3 | No Conflicts |
61 |
4.1.4 | Litigation |
62 |
4.1.5 | Agreements |
62 |
4.1.6 | Title |
62 |
4.1.7 | Solvency |
63 |
4.1.8 | Full and Accurate Disclosure |
63 |
4.1.9 | No Plan Assets |
63 |
4.1.10 | Compliance |
64 |
4.1.11 | Financial Information |
64 |
4.1.12 | Condemnation |
64 |
4.1.13 | Federal Reserve Regulations |
64 |
4.1.14 | Utilities and Public Access |
65 |
4.1.15 | Not a Foreign Person |
65 |
4.1.16 | Separate Lots |
65 |
4.1.17 | Assessments |
65 |
4.1.18 | Enforceability |
65 |
4.1.19 | No Prior Assignment |
65 |
4.1.20 | Insurance |
65 |
4.1.21 | Use of Property |
65 |
4.1.22 | Certificate of Occupancy; Licenses |
66 |
4.1.23 | Flood Zone |
66 |
4.1.24 | Physical Condition |
66 |
4.1.25 | Boundaries |
66 |
4.1.26 | Leases |
67 |
4.1.27 | Survey |
67 |
4.1.28 | Inventory |
67 |
4.1.29 | Filing and Recording Taxes |
67 |
4.1.30 | Special Purpose Entity/Separateness/No Prohibited Entity/Ownership Structure |
68 |
4.1.31 | Management Agreement |
68 |
4.1.32 | Illegal Activity |
68 |
4.1.33 | No Change in Facts or Circumstances; Disclosure |
69 |
4.1.34 | Investment Company Act |
69 |
4.1.35 | Embargoed Person |
69 |
4.1.36 | Principal Place of Business; State of Organization |
69 |
4.1.37 | Environmental Representations and Warranties |
70 |
4.1.38 | Cash Management Account |
70 |
4.1.39 | TIF Agreement |
71 |
Section 4.2 |
Survival of Representations |
71 |
ARTICLE V. BORROWER COVENANTS |
72 |
Section 5.1 |
Affirmative Covenants |
72 |
5.1.1 | Existence; Compliance with Legal Requirements |
72 |
5.1.2 | Taxes and Other Charges |
73 |
5.1.3 | Litigation |
73 |
5.1.4 | Access to Property |
73 |
5.1.5 | Notice of Material Adverse Change |
73 |
5.1.6 | Cooperate in Legal Proceedings |
73 |
5.1.7 |
[Intentionally
Omitted] |
74 |
5.1.8 |
Award
and Insurance Benefits |
74 |
5.1.9 |
Further
Assurances |
74 |
5.1.10 |
Principal
Place of Business, State of Organization |
74 |
5.1.11 |
Financial
Reporting |
75 |
5.1.12 |
Business
and Operations |
78 |
5.1.13 |
Title
to the Property |
79 |
5.1.14 |
Costs
of Enforcement |
79 |
5.1.15 |
Estoppel
Statement |
79 |
5.1.16 |
Loan
Proceeds |
80 |
5.1.17 |
O&M
Program |
80 |
5.1.18 |
Confirmation
of Representations |
80 |
5.1.19 |
Environmental
Covenants |
80 |
5.1.20 |
Leasing
Matters |
82 |
5.1.21 |
Alterations |
83 |
5.1.22 |
Operation
of Property |
84 |
5.1.23 |
Embargoed
Person |
84 |
5.1.24 |
Violations |
84 |
5.1.25 |
TIF
Agreement |
85 |
Section 5.2 |
Negative Covenants |
85 |
5.2.1 |
Operation
of Property |
85 |
5.2.2 |
Liens |
85 |
5.2.3 |
Dissolution |
86 |
5.2.4 |
Change
In Business |
86 |
5.2.5 |
Debt
Cancellation |
86 |
5.2.6 |
Zoning |
86 |
5.2.7 |
No
Joint Assessment |
86 |
5.2.8 |
Intentionally
Omitted |
86 |
5.2.9 |
ERISA |
86 |
5.2.10 |
Transfers |
87 |
ARTICLE VI. INSURANCE; CASUALTY; CONDEMNATION |
93 |
Section 6.1 |
Insurance |
93 |
Section 6.2 |
Casualty |
98 |
Section 6.3 |
Condemnation |
99 |
Section 6.4 |
Restoration |
99 |
ARTICLE VII. RESERVE FUNDS |
104 |
Section 7.1 |
Required Repairs |
104 |
7.1.1 |
Deposits |
104 |
7.1.2 |
Release
of Required Repair Funds |
105 |
Section 7.2 |
Tax and Insurance Escrow Fund |
106 |
Section 7.3 |
Replacements and Replacement Reserve |
107 |
7.3.1 |
Replacement
Reserve Fund |
107 |
7.3.2 |
Disbursements
from Replacement Reserve Account |
108 |
7.3.3 |
Performance
of Replacements |
108 |
7.3.4 |
Failure
to Make Replacements |
109 |
7.3.5 |
Balance
in the Replacement Reserve Account |
109 |
Section 7.4 |
Rollover Reserve |
109 |
7.4.1 |
Deposits to Rollover Reserve Fund |
109 |
7.4.2 |
Disbursements from Rollover Reserve Account |
109 |
Section 7.5 |
Excess Cash Flow Reserve Fund |
110 |
7.5.1 |
Deposits to Excess Cash Flow Reserve Account |
110 |
7.5.2 |
Release of Excess Cash Flow Reserve Funds |
111 |
7.5.3 |
Hobby Lobby Reserve Funds Cap Cures |
111 |
Section 7.6 |
Reserve Funds, Generally |
111 |
Section 7.7 |
Environmental Reserve |
112 |
7.7.1 |
Deposit to Environmental Reserve Fund |
112 |
7.7.2 |
Disbursement of Environmental Reserve Fund |
113 |
Section 7.8 |
Free Rent Reserve |
113 |
7.8.1 |
Deposits to Free Rent Reserve Fund |
113 |
7.8.2 |
Disbursement of Free Rent Reserve Funds |
113 |
Section 7.9 |
Outstanding TI/LC Reserve |
114 |
7.9.1 |
Deposits to Outstanding TI/LC Reserve Account |
114 |
7.9.2 |
Disbursements of Outstanding TI/LC Reserve Funds |
114 |
Section 7.10 |
Letters of Credit |
115 |
Section 7.11 |
Gap Rent Reserve |
116 |
7.11.1 |
Deposits to Gap Rent Reserve Fund |
116 |
7.11.2 |
Disbursement of Gap Rent Reserve Funds |
117 |
ARTICLE VIII. DEFAULTS |
117 |
Section 8.1 |
Event of Default |
117 |
Section 8.2 |
Remedies |
120 |
Section 8.3 |
Remedies Cumulative; Waivers |
121 |
ARTICLE IX. SPECIAL PROVISIONS |
122 |
Section 9.1 |
Securitization |
122 |
9.1.1 |
Sale of Notes and Securitization |
122 |
Section 9.2 |
Disclosure |
124 |
Section 9.3 |
Exculpation |
127 |
Section 9.4 |
Matters Concerning Manager |
131 |
Section 9.5 |
Servicer |
131 |
Section 9.6 |
Lender/Servicer Loan Administration |
132 |
Section 9.7 |
Mezzanine Financing |
132 |
ARTICLE X. MISCELLANEOUS |
134 |
Section 10.1 |
Survival |
134 |
Section 10.2 |
Intentionally Omitted |
134 |
Section 10.3 |
Governing Law |
134 |
Section 10.4 |
Modification, Waiver in Writing |
135 |
Section 10.5 |
Delay Not a Waiver |
135 |
Section 10.6 |
Notices |
136 |
Section 10.7 |
Trial by Jury |
137 |
Section 10.8 |
Headings |
137 |
Section 10.9 |
Severability |
138 |
Section 10.10 |
Preferences |
138 |
Section 10.11 |
Waiver of Notice |
138 |
Section 10.12 |
Remedies of Borrower |
138 |
Section 10.13 |
Expenses; Indemnity |
139 |
Section 10.14 |
Schedules Incorporated |
140 |
Section 10.15 |
Offsets, Counterclaims and Defenses |
140 |
Section 10.16 |
No Joint Venture or Partnership; No Third Party Beneficiaries |
140 |
Section 10.17 |
Publicity |
141 |
Section 10.18 |
Waiver of Marshalling of Assets |
141 |
Section 10.19 |
Waiver of Counterclaim |
141 |
Section 10.20 |
Conflict; Construction of Documents; Reliance |
141 |
Section 10.21 |
Prior Agreements |
141 |
Section 10.22 |
Liability |
142 |
Section 10.23 |
Certain Additional Rights of Lender (VCOC) |
142 |
Section 10.24 |
OFAC |
142 |
Section 10.25 |
Duplicate Originals; Counterparts |
142 |
Section 10.26 |
Confidentiality |
143 |
Section 10.27 |
Acknowledgement and Consent to Bail-In of EEA Financial Institutions |
143 |
Section 10.29 |
Lender’s Right to Unwind Cross-Collateralization/Cross-Default |
145 |
Section 10.30 |
Contributions and Waivers |
145 |
Section 10.31 |
Co-Lenders |
148 |
SCHEDULES
Schedule I |
– |
Rent Roll and Lease Defaults |
Schedule II |
– |
Required Repairs - Deadlines for Completion |
Schedule III |
– |
Organizational Chart of Borrower |
Schedule IV |
– |
Allocated Loan Amounts |
Schedule V |
– |
Property Managers and Underwritten Management Fees |
Schedule VI |
– |
Tenant Direction Letter Form |
Schedule VII |
– |
Disbursement Certification and Schedule |
Schedule VIII |
– |
Free Rent Reserve |
Schedule IX |
– |
Outstanding TI/LC Reserve |
Schedule X |
– |
Violations |
Schedule XI |
– |
Form of Global Net Lease Merger Completion Notice |
Schedule XII |
– |
Gap Rent Reserve |
Schedule XIII |
– |
Tenants with Potential CAM Disputes |
Schedule XIV |
– |
Stale Mortgage Liens |
LOAN AGREEMENT
THIS
LOAN AGREEMENT is made as of August 30, 2023 (this “Agreement”), between BARCLAYS CAPITAL REAL ESTATE
INC., a Delaware corporation, having an address at 745 Seventh Avenue, New York, New York 10019 (“Barclays”), SOCIÉTÉ
GÉNÉRALE FINANCIAL CORPORATION, a Delaware corporation, having an address at 245 Park Avenue, New York, New York 10167
(“SocGen”), BANK OF MONTREAL, a Canadian Chartered bank acting through its Chicago Branch, having an address
at c/o BMO Capital Markets Corp., 3 Times Square, New York, New York 10036 (“BMO”) and KEYBANK NATIONAL ASSOCIATION,
a national banking association, having an address at 11501 Outlook Street, Suite 300, Overland Park, Kansas 66211 (“KeyBank”;
and together with Barclays, SocGen and BMO, and their respective successors and/or assigns, individually and/or collectively, as the context
may require, “Lender”) and THE ENTITIES SET FORTH ON SCHEDULE IV ATTACHED HERETO, each a Delaware limited liability
company and each having its principal place of business at 38 Washington Square, Newport, Rhode Island 02840 (hereinafter
referred to individually as a “Borrower” and collectively as
“Borrower” or “Borrowers” as the context may require, provided,
however, that the context shall always be one which affords Lender the broadest possible rights and remedies under the Loan Documents
and which permits Lender, in its discretion, to enforce the obligations and liabilities hereunder against one or more of the entities
comprising Borrower).
RECITALS:
A. Borrower
desires to obtain the Loan (as hereinafter defined) from Lender.
B. Lender
is willing to make the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (as
hereinafter defined).
NOW THEREFORE, for valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION
Section 1.1 Definitions.
For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent:
“Accounts”
shall mean, collectively, the Clearing Account, the Tax and Insurance Escrow Account, the Required Repair Account, the Replacement
Reserve Account, the Rollover Reserve Account, the Environmental Reserve Account, the Cash Management Account, all
subaccounts of the Cash Management Account established pursuant to the Cash Management Agreement, the Excess Cash Flow Reserve
Account, the Free Rent Reserve Account, the Outstanding TI/LC Reserve Account, the Gap Rent Reserve Account or any other escrow accounts
or reserve accounts established by the Loan Documents.
“Accrual Period”
means the period beginning on (and including) the sixth (6th) day of each calendar month during the term of the Loan and terminating
on the fifth (5th) day of the next succeeding calendar month; provided, however, that the initial Accrual Period
shall begin on the Closing Date and shall end on the immediately following fifth (5th) day of a calendar month.
“Action”
has the meaning set forth in Section 10.3 hereof.
“Additional Insolvency
Opinion” means any subsequent Insolvency Opinion.
“Additional Permitted
Transfer” has the meaning set forth in Section 5.2.10(f) hereof.
“Additional Windstorm
Insurance Coverage” means additional insurance limits with respect to the Additional Windstorm Properties necessary to meet
or exceed any applicable Rating Agency’s return-period expectations from an acceptable PML report, and that otherwise satisfies
the terms set forth in Section 6.1(c) hereof.
“Additional Windstorm
Properties” means the Individual Properties identified on Schedule IV attached hereto as (i) “Southway Shopping
Center – Houston, TX”, (ii) “Houma Crossing - Houma, LA”; (iii) “Walmart Neighborhood Market -
Summerville, SC”; and (iv) “Northwoods Marketplace – North Charleston, SC”.
“Adjusted Release
Amount” shall mean, for each Individual Property, the sum of (a) the Allocated Loan Amount for such Individual Property
and (b) fifteen percent (15%) of the Allocated Loan Amount for such Individual Property.
“Advisor Party”
shall mean Necessity Retail Advisors, LLC, a Delaware limited liability company, or any direct or indirect owner of Necessity Retail Advisors,
LLC, a Delaware limited liability.
“Affected Financial
Institution” has the meaning set forth in Section 10.27 hereof.
“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, is in Control of, is Controlled by or is under common Control
with such Person or is a director or officer of such Person or of an Affiliate of such Person.
“Affiliated Manager”
means any Manager in which Borrower or Guarantor has, directly or indirectly, any material legal, beneficial or economic interest.
“Agent”
means KeyBank (so long as KeyBank is not downgraded below BBB by S&P or the equivalent by another Rating Agency) or an Eligible Institution
acting as Agent under the Cash Management Agreement.
“Agreement of Merger”
shall mean that certain Agreement and Plan of Merger, dated as of May 23, 2023, by and among Pre-Merger Guarantor, The Necessity
Retail REIT, Inc., a Maryland corporation, Post-Merger Guarantor, Global Net Lease Operating Partnership, L.P., a Delaware limited
partnership, Osmosis Sub I, LLC, a Maryland limited liability company, and Osmosis Sub II, LLC, a Delaware limited liability company,
as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Allocated Loan Amount”
shall mean the portion of the principal amount of the Loan allocated to any applicable Individual Property as set forth on Schedule
IV hereof, as such amounts may be adjusted from time to time as hereinafter set forth. Notwithstanding the foregoing or anything herein
to the contrary, in the event of a Casualty or Condemnation whereby Net Proceeds (or any portion thereof) are to be applied to the principal
amount of the Debt pursuant to the terms of Article VI hereof (such Net Proceeds, the “Applied Net Proceeds”),
(a) then such Applied Net Proceeds shall be applied (1) first, to reduce the Allocated Loan Amount of the Individual Property
affected by such Casualty or Condemnation until reduced to zero and (2) second, pro rata to reduce the Allocated Loan Amounts of
each of the other Individual Properties and (b) notwithstanding the terms of the foregoing clause (a), with respect to a Condemnation
or Casualty affecting one hundred percent (100%) of an Individual Property, the Allocated Loan Amount for such Individual Property shall
be reduced to zero (such Allocated Loan Amount prior to reduction being referred to as the “Withdrawn Allocated Amount”)
and each other Allocated Loan Amount shall, if the Withdrawn Allocated Amount exceeds the Applied Net Proceeds realized with respect to
such Individual Property (such excess being referred to as the “Proceeds Deficiency”), be increased by an amount equal
to the product of (1) the Proceeds Deficiency and (2) a fraction, the numerator of which is the applicable Allocated Loan Amount
(prior to the adjustment in question) and the denominator of which is the aggregate of all of the Allocated Loan Amounts (prior to the
adjustment in question) other than the Withdrawn Allocated Amount. Additionally, in connection with any Partial Release, the Allocated
Loan Amounts for the Individual Properties shall be adjusted as provided for in Section 2.5.2(k) hereof.
“Annual Budget”
means an operating budget, including all planned Capital Expenditures, for each Individual Property prepared by Borrower in accordance
with Section 5.1.11(g) hereof for the applicable Fiscal Year or other period.
“Applicable Contribution”
has the meaning set forth in Section 10.30(f) hereof.
“Appraisal”
shall mean an appraisal prepared in accordance with the requirements of FIRREA, prepared by an independent third party appraiser holding
an MAI designation, who is state licensed or state certified if required under the laws of the state where each applicable Individual
Property is located, who meets the requirements of FIRREA and who is otherwise satisfactory in Lender’s reasonable discretion.
“Approved Accountant”
means a “Big Four” accounting firm or other independent certified public accountant acceptable to Lender.
“Approved Annual
Budget” has the meaning set forth in Section 5.1.11(g) hereof.
“Assignment of Leases
and Rents” means individually or collectively, as the context requires, each Assignment of Leases and Rents or similar document
dated the date hereof, executed and delivered by Borrower to Lender as security for the Loan and encumbering the Property (or any portion
thereof), as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Assignment of Management
Agreement” means, individually or collectively as the context requires, each Assignment of Management Agreement and Subordination
of Management Fees, dated as of the date hereof, among Lender, Borrower and Manager, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time.
“Availability
Threshold” means, with respect to each Individual Property, an amount equal to
the greater of (i) $1,000,000 and (ii) five percent (5%) of the outstanding Allocated
Loan Amount for such Individual Property.
“Award”
means any compensation paid by any Governmental Authority in connection with a Condemnation.
“Bail-In Action”
has the meaning set forth in Section 10.27 hereof.
“Bail-In Legislation”
has the meaning set forth in Section 10.27 hereof.
“Bankruptcy Action”
means with respect to any Person (a) such Person filing a voluntary petition under the Bankruptcy Code or any other Federal or state
bankruptcy or insolvency law; (b) the filing of an involuntary petition against such Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law; (c) such Person filing an answer consenting in writing to or joining in any involuntary
petition filed against it, by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, provided
that, notwithstanding the foregoing, the delivery and/or submission of factual statements in connection with any involuntary petition
filed against a Person as required by Legal Requirements shall not constitute a Bankruptcy Action; (d) such Person consenting in
writing to or joining in an application for the appointment of a custodian, receiver, trustee, or examiner for such Person or any portion
of the Property; (e) such Person making an assignment for the benefit of creditors, or admitting, in writing to a third party (other
than Lender or Servicer or any of their respective Affiliates or representatives) or in any legal proceeding (other than in connection
with an answer or in testimony), its insolvency or inability to pay its debts as they become due provided that, notwithstanding the foregoing,
the delivery and/or submission of factual statements in connection with any involuntary petition filed against a Person as required by
Legal Requirements shall not constitute a Bankruptcy Action.
“Bankruptcy Code”
means Title 11 of the United States Code, 11 U.S.C. §101, et seq., as the same may be amended from time to time, and any successor
statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating
to bankruptcy, insolvency or creditors’ rights or any other Federal or state bankruptcy or insolvency law.
“Barclays”
has the meaning set forth in the introductory paragraph hereto.
“Benefit Amount”
has the meaning set forth in Section 10.30(d) hereof.
“BMO” has
the meaning set forth in the introductory paragraph hereto.
“Borrower”
has the meaning set forth in the introductory paragraph hereto, together with its successors and permitted assigns.
“Borrower Party”
means each of Borrower and Guarantor.
“Business Day”
means a day upon which commercial banks are not authorized or required by law to close in New York City or such other city designated
in writing by Lender from time to time as the place for receipt of payments.
“Capital Expenditures”
means, for any period, the amount expended for items capitalized under GAAP (including expenditures for building improvements or major
repairs, leasing commissions and tenant improvements).
“Cash Management
Account” has the meaning set forth in Section 2.6.2 hereof.
“Cash Management
Agreement” means that certain Cash Management Agreement, dated as of the date hereof, by and among Borrower, Lender and Manager,
as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Cash Sweep Event”
means the occurrence of: (a) an Event of Default; (b) a Debt Yield Trigger Event; or (c) a Hobby Lobby Trigger Event.
“Cash Sweep Event
Cure” means:
(a) if
the Cash Sweep Event is caused by an Event of Default, a cure of such Event of Default (which cure Lender may accept in Lender’s
reasonable discretion; provided, however, that if (i) Lender has applied for the appointment of a receiver pursuant
to the Security Instrument, (ii) Lender shall have declared the entire unpaid Debt to be immediately due and payable, or (iii) Lender
shall have commenced a foreclosure action pursuant to the Security Instrument, Lender is not obligated to accept such cure and may reject
or accept such cure in Lender’s sole and absolute discretion);
(b) if
the Cash Sweep Event is caused solely by the occurrence of a Debt Yield Trigger Event, (i) the occurrence of a Debt Yield Cure, (ii) the
delivery by Borrower to Lender of the Debt Yield Cure – Letter of Credit in accordance with the terms hereof or (iii) Borrower’s
completion of a Debt Yield Cure –Partial Prepayment in accordance with the terms hereof; or
(c) if
the Cash Sweep Event is caused solely by the occurrence of a Hobby Lobby Trigger Event, the occurrence of a Hobby Lobby Trigger Event
Cure.
provided,
however, that, such Cash Sweep Event Cure set forth in this definition shall be subject to the following conditions, (i) no
Event of Default shall have occurred and be continuing and (ii) Borrower shall have paid, or Lender shall, at Borrower’s election,
deduct from Excess Cash Flow, all of Lender’s reasonable out-of-pocket expenses incurred in connection with such Cash Sweep Event
Cure including, reasonable out-of-pocket attorney’s fees and expenses. For the avoidance of doubt, if a Partial Release of an Individual
Property would result in the achievement of a Cash Sweep Event Cure, Borrower shall be permitted to effectuate such Partial Release pursuant
to Section 2.5.2 hereof.
“Cash Sweep Period”
means each period commencing on the occurrence of a Cash Sweep Event and continuing until the earlier of (a) the Payment Date next
occurring following the related Cash Sweep Event Cure, or (b) payment in full of all principal and interest on the Loan and all other
amounts payable under the Loan Documents or defeasance in full of the Loan in accordance with the
terms and provisions of the Loan Documents.
“Casualty”
has the meaning set forth in Section 6.2 hereof.
“Casualty Consultant”
has the meaning set forth in Section 6.4(b)(iii) hereof.
“Casualty Retainage”
has the meaning set forth in Section 6.4(b)(iv) hereof.
“Clearing Account”
has the meaning set forth in Section 2.6.1 hereof.
“Clearing Account
Agreement” means that certain Clearing Account - Deposit Account Control Agreement dated the date hereof among Borrower, Lender
and Clearing Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, relating to funds
deposited in the Clearing Account.
“Clearing Bank”
means the clearing bank which establishes, maintains and holds the Clearing Account, which shall be KeyBank (so long as KeyBank is not
downgraded below BBB by S&P or the equivalent by another Rating Agency) or an Eligible Institution appointed pursuant to Section 2.6.1(h) hereof.
“Closing Date”
means the date of the funding of the Loan (which, for the avoidance of doubt, is the date of this Agreement).
“Co-Lender”
means, at any time with the Loan is held by more than one Lender, each such Lender together with its respective successors and/or assigns.
“Code”
means the Internal Revenue Code of 1986, as amended, as it may be further amended from time to time, and any successor statutes thereto,
and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.
“Collateral”
has the meaning set forth in the Security Instruments.
“Condemnation”
means a temporary or permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise of the
right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto, including
any right of access thereto or any change of grade affecting the Property or any part thereof.
“Condemnation Proceeds”
has the meaning set forth in Section 6.4(b) hereof.
“Constituent Members”
means the constituent equity owners of Borrower.
“Contribution”
has the meaning set forth in Section 10.30(a) hereof.
“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a
Person, whether through ownership of voting securities, by contract or otherwise. “Controlled” and “Controlling”
have correlative meanings.
“Covered
Rating Agency Information” shall mean any Provided Information furnished to the Rating Agencies in connection with issuing,
monitoring and/or maintaining the Securities.
“Crowdfunding”
means, any offer or sale of equity or debt securities of Borrower or Guarantor or any Affiliate of any of them, involving or relating
to direct or indirect interests, or any combination of direct or indirect interests, in any of the foregoing Persons, that is conducted
or proposed to be conducted via the internet or through the use of other general solicitation or advertising of the investment opportunity
to prospective investors by the issuer of such securities or an online or other funding portal in a transaction or series of transactions
intended to be exempt from the registration requirements of the Securities Act of 1933, as amended, including but not limited to pursuant
to the exemptions provided by Section 4(a)(6) thereof or Rule 506(c) promulgated thereunder, any other similar state
securities law, or any similar transaction. Lender agrees that the foregoing shall not apply to non-Controlling shareholders of the REIT.
“Current Owner”
has the meaning set forth in Section 5.2.10(f) hereof.
“Debt”
means the outstanding principal amount of the Loan set forth in, and evidenced by, this Agreement and the Note together with all interest
accrued and unpaid thereon and all other sums (including any Defeasance Payment Amount, any Yield
Maintenance Premium, any Yield Maintenance Default Premium and any Individual Property Release Yield Maintenance Premium) due to
Lender in respect of the Loan under the Note, this Agreement, the Security Instrument or any other Loan Document.
“Debt Service”
means, with respect to any particular period of time, the scheduled interest payments due under this Agreement and the Note.
“Debt Service Coverage
Ratio” means a ratio for the applicable period in which:
(a) the
numerator is the Net Operating Income (excluding interest on credit accounts and using annualized operating expenses for any recurring
expenses not paid monthly (e.g., Taxes and Insurance Premiums)) for such period as set forth in the statements required hereunder, without
deduction for (i) actual management fees incurred in connection with the operation of the Property, or (ii) amounts paid to
the Reserve Funds, less (A) management fees equal to the greater of (1) assumed management fees of 3.00% of Gross Income from
Operations and (2) the actual management fees incurred, and (B) during a Cash Sweep Period only, (i) annual Replacement
Reserve Fund contributions equal to $0.25 per square foot of gross leasable area at the Property, and (ii) annual Rollover Reserve
Fund contributions equal to $1.50 per square foot of gross leasable area at the Property; and
(b) the
denominator is the aggregate amount of Debt Service for such period.
“Debt Service Coverage
Ratio as of the Closing Date” means 2.01 to 1.00.
“Debt Yield”
means a ratio in which:
(a) the
numerator is the same numerator that would be calculated in connection with the definition of Debt Service Coverage Ratio herein; and
(b) the
denominator is the outstanding balance of the Loan as of the date of calculation.
Anything contained herein
to the contrary notwithstanding, for purposes of calculating Debt Yield following a Partial Release, Lender shall (i) exclude Rent
from the applicable Released Property from the numerator and (ii) reduce the denominator by the amount of the applicable Adjusted
Released Amount paid by Borrower.
“Debt Yield as of
the Closing Date” means thirteen and 11/100 percent (13.11%).
“Debt Yield Cure”
means the achievement of a Debt Yield of equal to or greater than nine and 95/100 percent (9.95%) for two (2) consecutive quarters
based upon the trailing twelve (12) month period immediately preceding the date of determination.
“Debt Yield Cure
– Letter of Credit” means a Letter of Credit in an amount equal to the Excess Cash Flow that would have been swept in
the three (3) month period immediately preceding the applicable date of determination if a Cash Sweep Period had been in effect during
such time, as reasonably determined by Lender. Each Debt Yield Cure – Letter of Credit shall be effective for a period of three
(3) months and Borrower may continue to prevent subsequent Debt Yield Trigger Events after each three (3) month period by depositing
with Lender additional Debt Yield Cure – Letters of Credit on, or prior to, the expiration of each such three (3) month period.
The Debt Yield Cure – Letter of Credit and all proceeds thereof shall be deemed part of the Reserve Funds, and shall be held in
escrow by Lender according to the terms of this Agreement. Borrower will pay all costs associated with the initial issuance, any modification
or re-issuance of the Debt Yield Cure – Letter of Credit, now or in the future, in connection with any transfer of the Loan by Lender,
in connection with any Securitization or otherwise. Upon such transfer, Borrower agrees that Lender is released from all liability in
respect of the Debt Yield Cure – Letter of Credit, and that Borrower shall look solely to the transferee with respect to all matters
relating to the Debt Yield Cure – Letter of Credit. In the event that a Debt Yield Cure occurs during a period wherein Lender is
in possession of the Debt Yield Cure – Letter of Credit (or proceeds therefrom), Lender will promptly return the Debt Yield Cure
– Letter of Credit (or proceeds therefrom) to Borrower.
“Debt Yield Cure
– Partial Prepayment” means a partial prepayment of the Loan in accordance with Section 2.3.1(c) hereof
in an amount (including any required Yield Maintenance Premium) that results in a reduction of the then-outstanding principal balance
of the Loan sufficient to achieve a Debt Yield equal to or greater than nine and 95/100 percent (9.95%) for the trailing twelve (12) month
period immediately preceding the date of determination.
“Debt Yield Trigger
Event” means either (i) as of the date of determination, the Debt Yield based on the trailing twelve (12) month period
immediately preceding the date of such determination is less than nine and 95/100 percent (9.95%) for two (2) consecutive calendar
quarters, or (ii) if Borrower previously cured or prevented a Debt Yield Trigger Event by depositing a Debt Yield Cure – Letter
of Credit with Lender, the expiration of the three (3) month period that commenced on the date Borrower delivered such Debt Yield
Cure – Letter of Credit to Lender; provided, however, that a Debt Yield Trigger Event shall not be deemed to have
occurred if, within five (5) Business Days of the date described in clause (i) or (ii) of this definition, Borrower deposits
with Lender the applicable Debt Yield Cure – Letter of Credit or completes the applicable Debt Yield Cure – Partial Prepayment.
“Default”
means the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or passage of time, or
both, would be an Event of Default.
“Default Rate”
means, with respect to the Loan, a rate per annum equal to the lesser of (a) the Maximum Legal Rate or (b) five percent (5%)
above the Interest Rate.
“Defeased Note”
has the meaning set forth in Section 2.4.1 hereof.
“Defeasance Collateral”
has the meaning set forth in Section 2.4.1 hereof
“Defeasance Date”
means either the Total Defeasance Date or the Partial Defeasance Date, as applicable.
“Defeasance Deposit”
means an amount equal to the remaining principal amount of the Note or the Defeased Note, as applicable,
the Defeasance Payment Amount, an amount sufficient to purchase the Defeasance Collateral necessary to meet the Scheduled Defeasance Payments,
and any revenue, documentary stamp or intangible taxes or any other tax or charge due in connection with the transfer of the Note or
the Defeased Note, as applicable, the creation of the Defeased Note and the Undefeased Note, if applicable, or otherwise required
to accomplish the agreements of Sections 2.4 or 2.5 hereof (including, without limitation, any reasonable,
out-of-pocket fees and expenses of accountants, attorneys and the Rating Agencies incurred in connection therewith).
“Defeasance Event”
means either a Total Defeasance Event or a Partial Defeasance
Event, as applicable.
“Defeasance Payment
Amount” shall mean the amount which, when added to the remaining principal amount of the Note, or
the principal amount of a Defeased Note, as applicable, will be sufficient to purchase U.S. Obligations providing the required
Scheduled Defeasance Payments.
“Disbursement Certification
and Schedule” means a certificate in the form attached hereto as Schedule VII, delivered to Lender by Borrower which is signed
by an authorized officer of Borrower or the general partner, managing member or sole member of Borrower, as applicable.
“Disclosure Documents”
means, collectively and as applicable, any offering circular, prospectus, prospectus supplement, private placement memorandum or other
offering document, in each case, in connection with a Securitization.
“EEA Bail-In Legislation
Schedule” has the meaning set forth in Section 10.27 hereof.
“EEA Financial Institution”
has the meaning set forth in Section 10.27 hereof.
“EEA Member Country”
has the meaning set forth in Section 10.27 hereof.
“EEA Resolution Authority”
has the meaning set forth in Section 10.27 hereof.
“Eligible Account”
means a separate and identifiable account from all other funds held by the holding institution that is either (i) an account or accounts
maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution
or (ii) a segregated trust account or accounts maintained with the corporate trust department of a federal or state-chartered depository
institution or trust company acting in its fiduciary capacity which, in the case of a federally chartered depository institution or trust
company acting in its fiduciary capacity is subject to the regulations regarding fiduciary funds on deposit therein under 12 C.F.R.
§9.10(b), and in the case of a state-chartered depository institution or trust company, is subject to regulations substantially similar
to 12 C.F.R. §9.10(b), having in either case a combined capital surplus of at least $50,000,000 and subject to supervision or
examination by federal and state authority. An Eligible Account shall not be evidenced by a certificate of deposit, passbook or other
instrument. For the avoidance of doubt, as of the Closing Date, each Clearing Account satisfies the requirements of this definition.
“Eligible Institution”
means a (i) depository institution or trust company insured by the Federal Deposit Insurance Corporation (a) the short-term
unsecured debt obligations, commercial paper or other short-term deposits of which are rated at least “A-1” by S&P, “P-1”
by Moody’s, “F-1” by Fitch and “R-1 (middle)” by DBRS Morningstar (to the extent rated by DBRS Morningstar),
in the case of accounts in which funds are held for thirty (30) days or less, and (b) the long-term unsecured debt obligations
or deposits of which are rated at least “A” by S&P, “A2” by Moody’s, “A” by Fitch and “A”
by DBRS Morningstar (to the extent rated by DBRS Morningstar), in the case of accounts in which funds are held for more than thirty (30)
days; provided that after a Securitization only the foregoing ratings requirements of each Rating Agency rating such Securitization
shall apply, or (ii) an institution for which the applicable Rating Agencies have confirmed that such institution acting in the applicable
capacity will not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class thereof. For
the avoidance of doubt, as of the Closing Date, PNC Bank, National Association, satisfies the requirements of this definition.
“Embargoed Person”
means any person, entity or government subject to trade restrictions under U.S. law, including The USA PATRIOT Act (including the anti-terrorism
provisions thereof), the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701, et seq., The Trading with the Enemy
Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder including those related to Specially Designated
Nationals and Specially Designated Global Terrorists, with the result that the investment in Borrower or Guarantor, as applicable (whether
directly or indirectly), is prohibited by law or the Loan made by the Lender is in violation of law.
“Emergency Expenses”
means an expense which, in Borrower’s good faith judgment is necessary to (a) prevent an immediate threat to the health, safety
or welfare of any person in the immediate vicinity of any Individual Property, (b) prevent immediate material damage or material
loss to any Individual Property, (c) avoid the suspension of any necessary service in or to any portion of any Individual Property,
or (d) avoid criminal liability or material civil liability on the part of Borrower with respect to activities at any Individual
Property or pursuant to this Agreement or the other Loan Documents.
“Emergency Law”
shall mean any Legal Requirement related to, in connection with, or in response to any epidemic, pandemic and/or widespread medical emergency,
including without limitation the COVID-19 pandemic.
“Environmental Consultant”
has the meaning set forth in Section 7.7.2 hereof.
“Environmental Indemnity”
means (i) prior to the Global Net Lease Merger, that certain Environmental Indemnity Agreement, dated as of the date hereof, executed
by Borrower and Pre-Merger Guarantor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time, and (ii) from and after the Global Net Lease Merger, the Post-Merger Environmental
Indemnity.
“Environmental Law”
means any applicable federal, state and local laws, statutes, ordinances, rules and regulations, as well as common law, now or in
the future relating to protection of human health or the environment, regulating Hazardous Substances, or relating to liability for or
costs of Remediation or prevention of Releases of Hazardous Substances. Environmental Law includes the following statutes, as amended,
any successor thereto, and any regulations promulgated pursuant thereto, and any state or local corollary statutes, ordinances, rules and
regulations: the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know
Act; the Hazardous Substances Transportation Act; the Resource Conservation and Recovery Act (including Subtitle I relating to underground
storage tanks); the Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking
Water Act; the environmental provisions of the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal
Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; and the environmental provisions
of the River and Harbors Appropriation Act. Environmental Law also includes any applicable federal, state and local laws, statutes, ordinances,
rules and regulations, as well as common law, now or in the future: conditioning transfer of property upon a negative declaration
or other approval of a governmental authority of the environmental condition of the Property; requiring notification or disclosure of
Releases of Hazardous Substances or other environmental condition of the Property to any governmental authority, whether or not in connection
with transfer of title to or interest in property. Environmental Law also includes the environmental restrictions and land use limitations
described in the NFR Letter.
“Environmental Liens”
has the meaning set forth in Section 5.1.19 hereof.
“Environmental Report”
has the meaning set forth in Section 4.1.37 hereof.
“Environmental Reserve
Account” has the meaning set forth in Section 7.7.1 hereof.
“Environmental Reserve
Funds” has the meaning set forth in Section 7.7.1 hereof.
“EPD Final Guidance”
has the meaning set forth in Section 7.7.2 hereof.
“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and the rulings
issued thereunder.
“Event of Default”
has the meaning set forth in Section 8.1(a) hereof.
“Excess Cash Flow”
has the meaning set forth in the Cash Management Agreement.
“Excess Cash Flow
Reserve Account” has the meaning set forth in Section 7.5.1 hereof.
“Excess Cash Flow
Reserve Fund” has the meaning set forth in Section 7.5.1 hereof.
“Extraordinary Expense”
has the meaning set forth in Section 5.1.11(h) hereof.
“Fiscal Year”
means each twelve (12) month period commencing on January 1 and ending on December 31 during each year of the term of the Loan.
“Fitch”
means Fitch, Inc.
“Flood Insurance
Acts” has the meaning set forth in Section 6.1(a)(i) hereof.
“Force Majeure”
means natural disaster, fire, earthquake, floods, explosion, declared or undeclared war, terrorist acts, riots, mob violence, insurrections,
order of Governmental Authorities, pandemics or epidemics, quarantines or other restrictions on operations, business or activities as
a result of epidemic, disease, contagion or other health conditions, delay or failure in the performance by any Governmental Authority
of its statutory or regulatory duties and/or functions not arising from the acts or omissions of Borrower, any Guarantor, Manager or any
Affiliate of any of the foregoing, or other similar matters beyond the control of Borrower; provided, however, that any
lack of funds shall not be deemed to be a condition, matter or occurrence beyond the control of Borrower and shall not constitute a Force
Majeure event.
“Free
Rent Deposit” has the meaning set forth in Section 7.8.1 hereof.
“Free
Rent Reserve Account” has the meaning set forth in Section 7.8.1 hereof.
“Free
Rent Reserve Fund” has the meaning set forth in Section 7.8.1 hereof.
“Funding
Borrower” has the meaning set forth in Section 10.30(c) hereof.
“GAAP”
means generally accepted accounting principles in the United States of America as of the date of the applicable financial report.
“Gap
Rent Reserve Account” has the meaning set forth in Section 7.11.1 hereof.
“Gap
Rent Reserve Fund” has the meaning set forth in Section 7.11.1 hereof.
“Global Net Lease
Merger” has the meaning set forth in Section 5.2.10(h) hereof.
“Global Net Lease
Merger Completion Notice” has the meaning set forth in Section 5.2.10(h) hereof.
“Global
Net Lease Merger Documents” means, collectively, the Post-Merger Guaranty, the Post-Merger Environmental Indemnity and the Certificate
of Global Net Lease, Inc. (attaching, among other documents, an executed copy of the Resolutions of Global Net Lease, Inc.),
each of which have been delivered to Lender as of the Closing Date to be held in escrow by Lender pursuant to Section 5.2.10(h) until
the consummation of the Global Net Lease Merger and the delivery of the Global Net Lease Merger Completion Notice.
“Governing State”
has the meaning set forth in Section 10.3 hereof.
“Governmental Authority”
means any court, board, agency, commission, office or other authority of any nature whatsoever for any governmental unit (foreign, federal,
state, county, district, municipal, city or otherwise) whether now or hereafter in existence having jurisdiction over Borrower or the
applicable Individual Property. For the avoidance of doubt, the use of this term throughout this Agreement (or any other Loan Document)
shall not include any Tenant at any Property.
“Gross Income from
Operations” means all income, computed in accordance with GAAP derived from the ownership and operation of the Property from
whatever source, including, but not limited to, the Rents, reimbursements, utility charges, escalations, service fees or charges, license
fees, parking fees, rent concessions or credits disbursed by Lender to Borrower from the Free Rent Reserve Fund or Gap Rent Reserve Fund,
and other required pass-throughs, but excluding (i) sales, use and occupancy or other taxes on receipts required to be accounted
for by Borrower to any Governmental Authority, (ii) refunds and uncollectible accounts, (iii) sales of furniture, fixtures and
equipment, (iv) Insurance Proceeds (other than business interruption or other loss of income insurance), (v) Awards, (vi) interest
on credit accounts, security deposits, utility and other similar deposits, (vii) interest on the Reserve Funds, (viii) any disbursements
to Borrower from the Reserve Funds (except the Free Rent Reserve Fund and Gap Rent Reserve Fund), and (ix) rental income attributable
to any Tenant (1) in bankruptcy that has rejected its Lease in the applicable bankruptcy proceeding pursuant to a final, non-appealable
order of a court of competent jurisdiction, (2) not paying rent under its Lease (except to the extent the amount of such unpaid rent
has been deposited by Borrower with Lender) or otherwise in monetary or material non-monetary default under its Lease beyond any applicable
notice and cure periods, (3) that has expressed its intention (directly, constructively or otherwise) to not renew, terminate, cancel
and/or reject its applicable Lease, and such Lease expires, will terminate, be canceled or be rejected within 6 months or less of the
applicable date of calculation hereunder, (4) whose tenancy at the Property is month-to-month, (5) under a Lease which expires
within 6 months or less of the applicable date of calculation hereunder, and the applicable Tenant has not provided written notice of
its intention to renew or extend the terms of the applicable Lease and/or (6) that is not in physical occupancy of, and operating
in, the space demised under its Lease, and such Lease expires within 6 months or less of the applicable date of calculation hereunder.
Gross income shall not be diminished as a result of the Security Instrument or the creation of any intervening estate or interest in the
Property or any part thereof. Notwithstanding the foregoing exclusions under clause (ix) above, rental income received under short-term
“pop-up” retail Leases (including Halloween costume stores) shall be included in the calculation of Gross Income from Operations.
“Grove City”
means CITY OF GROVE CITY, OHIO, a municipal corporation organized and existing under the Constitution and the laws of the State of Ohio
and its Charter.
“Grove City TIF Owners”
means, collectively, (i) STRINGTOWN PARTNERS NORTH, LLC, (ii) STRINGTOWN PARTNERS SOUTH, LLC (as predecessor-in-interest to
STRINGTOWN SOUTH, LLC, as predecessor-in-interest to ARG PCGROOH001, LLC) and (iii) LUCAS STATE STREET STRINGTOWN LIMITED, each an
Ohio limited liability company.
“Guarantor”
means (i) prior to the Global Net Lease Merger, the Pre-Merger Guarantor, (ii) following the Global Net Lease Merger, the Post-Merger
Guarantor, and (iii) following any Qualified Equityholder Transfer, a Qualified Replacement Guarantor.
“Guaranty”
means (i) prior to the Global Net Lease Merger, that certain Guaranty Agreement, dated as of the date hereof, executed and delivered
by Pre-Merger Guarantor in connection with the Loan to and for the benefit of Lender, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time, and (ii) from and after the Global Net Lease Merger, the Post-Merger Guaranty.
“Hazardous Substances”
means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified as pollutants, hazardous wastes,
hazardous substances, hazardous materials, extremely hazardous wastes, or words of similar regulatory effect under any Environmental Laws,
including petroleum and petroleum products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead, radon, radioactive
materials, flammables, explosives, toxic mold or uncontrolled microbial matter and mycotoxins, but excluding substances of kinds and in
amounts ordinarily and customarily used or stored in similar properties for the purpose of cleaning or other maintenance or operations
and otherwise in compliance with all Environmental Laws.
“Hobby Lobby”
means Hobby Lobby Stores, Inc., an Oklahoma corporation, or, if applicable, any Hobby Lobby Replacement Tenant.
“Hobby Lobby Lease”
means, collectively or individually as the context shall require, (i) that certain Lease Agreement dated as of December 20,
2017, entered into by and between ARC QSOKCOK001, LLC, a Delaware limited liability company, as landlord, and Hobby Lobby, as tenant,
(ii) that certain Amended and Restated Lease Agreement dated as of August 9, 2021, entered into by and between Cole MT Rocky
Mount NC, LLC, a Delaware limited liability company (predecessor-in-interest to Borrower), as landlord, and Hobby Lobby, as tenant, (iii) that
certain Amended and Restated Lease Agreement dated as of August 24, 2021, entered into by and between ARCP MT Houma LA, LLC, a Delaware
limited liability company (predecessor-in-interest to Borrower), as landlord, and Hobby Lobby, as tenant, (iv) that certain Lease
Agreement dated as of February 3, 2015, entered into by and between Derby Marketplace Four, LLC, a Kansas limited liability company
(predecessor-in-interest to Borrower), as landlord, and Hobby Lobby, as tenant, (v) that certain Lease Agreement dated as of January 8,
2015, entered into by and between North Lake Shopping Center, LLC, a Georgia limited liability company (predecessor-in-interest to Borrower),
as landlord, and Hobby Lobby, as tenant, and (vi) if applicable, a Hobby Lobby Replacement Lease, in each case as the same may have
been (or may be) modified, amended and/or assigned from time to time.
“Hobby
Lobby Letter of Credit” means a Letter of Credit in an amount equal to the Hobby Lobby Reserve Funds Cap (as the same may be
reduced from time to time in accordance with clause (ii) of the definition of “Hobby Lobby Reserve Funds Cap”). Borrower
will pay all costs associated with the initial issuance, any modification or re-issuance of the Hobby Lobby Letter of Credit, now or in
the future, in connection with any transfer of the Loan by Lender, in connection with any Securitization or otherwise. Upon such transfer,
Borrower agrees that Lender is released from all liability in respect of the Hobby Lobby Letter of Credit, and that Borrower shall look
solely to the transferee with respect to all matters relating to the Hobby Lobby Letter of Credit.
“Hobby
Lobby Premises” means, collectively, the space demised at each applicable Individual Property pursuant to a Hobby
Lobby Lease in effect as of the Closing Date.
“Hobby Lobby Replacement
Lease” or “Hobby Lobby Replacement Leases” means a Lease or Leases entered into with one or more Hobby Lobby
Replacement Tenants approved by Lender in accordance with Section 5.1.20 of this Agreement.
“Hobby
Lobby Replacement Lease Criteria” means satisfaction of the following conditions with respect to all of the Hobby
Lobby Premises:
| (i) | Borrower shall have entered into one or more
Hobby Lobby Replacement Leases; |
| (ii) | Each Hobby
Lobby Replacement Tenant shall be in physical occupancy of the space covered by the applicable Hobby
Lobby Replacement Lease, open for business and paying full contractual rent, without offset, free rent credit (unless the amount
of any such free rent (less any amounts on deposit in the Excess Cash Flow Reserve Account) is deposited with Lender pursuant to Section 7.8.1
hereof) or outstanding tenant improvement or leasing commission obligations on the part of Borrower (unless the amount of any such outstanding
tenant improvements or leasing commission obligations (less any amounts on deposit in the Rollover Reserve Account or Excess Cash Flow
Reserve Account) is deposited with Lender pursuant to Section 7.9.1 hereof); and |
| (iii) | Borrower shall provide Lender with the following: |
| (A) | a copy of each executed Hobby
Lobby Replacement Lease; |
| (B) | a tenant estoppel certificate in form and substance
reasonably satisfactory to Lender executed by each Hobby Lobby Replacement Tenant which
confirms that (aa) the applicable Hobby Lobby Replacement Lease is in full force and effect,
(bb) to the tenant’s actual knowledge, there is no default under such Hobby Lobby Replacement
Lease, and (cc) such Hobby Lobby Replacement Tenant is in physical occupancy of its space
and paying full contractual rent, without offset or free rent credit (unless the amount of any such free rent (less any amounts on deposit
in the Excess Cash Flow Reserve Account) is deposited with Lender pursuant to Section 7.8.1 hereof)); |
| (C) | upon request of Lender, unless the Hobby
Lobby Replacement Lease is fully subordinate to the Loan by its terms, a subordination, non-disturbance and attornment agreement
in form and substance satisfactory to Lender executed by each Hobby Lobby Replacement Tenant
and Lender; |
| (D) | satisfactory evidence that Borrower has performed
and paid for all tenant improvements relating to such Hobby Lobby Replacement Tenant
and that there are no unpaid leasing commissions associated with such Hobby Lobby Replacement
Tenant (unless the amount of any such outstanding tenant improvements or leasing commission
obligations (less any amounts on deposit in the Rollover Reserve Account or Excess Cash Flow Reserve
Account) is deposited with Lender pursuant to Section 7.9.1 hereof); and |
“Hobby
Lobby Replacement Rent Amount” means, following the occurrence of a Hobby Lobby
Trigger Event and the execution of one or more Hobby Lobby Replacement Leases that demises a portion (but not all) of the Hobby Lobby
Premises, an amount equal to the amount of base Rent required to be paid by each Hobby Lobby Replacement Tenant to Borrower under the
applicable Hobby Lobby Replacement Lease for the two (2) year period immediately subsequent to the effective date of such Hobby Lobby
Replacement Lease.
“Hobby
Lobby Replacement Tenant” or “Hobby Lobby Replacement Tenants” means a new tenant or tenants reasonably approved
by Lender and leasing all or part of the Hobby Lobby Premises.
“Hobby Lobby Replacement
Tenant Reserve Funds” means amounts deposited or held in the Rollover Reserve Account, Free Rent Reserve Account, or Excess
Cash Flow Reserve Account for the express purpose of satisfying any requirements set forth in the definitions of “Hobby Lobby Replacement
Lease Criteria” or “Hobby Lobby Trigger Event Cure” for depositing amounts into the Free Rent Reserve Account or the
Outstanding TI/LC Reserve Account.
“Hobby
Lobby Reserve Funds Cap” means an amount equal to (i) $4,295,952.13, less (ii) if applicable, the Hobby Lobby Replacement
Rent Amount.
“Hobby
Lobby Reserve Funds Cap Cure” means that (i) Borrower has deposited with Lender an amount (in cash) equal to the Hobby
Lobby Reserve Funds Cap, (ii) during the applicable Cash Sweep Period, the amount on deposit in the Excess Cash Flow Reserve Account
at any time exceeds the Hobby Lobby Reserve Funds Cap, or (iii) Borrower has deposited with Lender a Hobby Lobby Letter of Credit.
In the event of any Hobby Lobby Reserve Funds Cap Cure, Lender shall maintain, disburse and/or return (as applicable) an amount equal
to the Hobby Lobby Reserve Funds Cap (or, if applicable, the Hobby Lobby Letter of Credit) pursuant to Section 7.5.3 hereof.
“Hobby
Lobby Trigger Event” means that Hobby Lobby or its parent company, or the
guarantor of any Hobby Lobby Lease, shall become a debtor in any bankruptcy or insolvency
proceeding or has its assets made subject to the jurisdiction of a bankruptcy court; provided,
however, that notwithstanding the definitions of “Cash Sweep Event” or “Cash Sweep Period” herein, a Cash
Sweep Event will not be deemed to have occurred, and a Cash Sweep Period will not commence, solely as a result of a Hobby Lobby Trigger
Event if a Hobby Lobby Reserve Funds Cap Cure occurs within five (5) Business Days of such Hobby Lobby Trigger Event.
“Hobby Lobby Trigger
Event Cure” means:
(i) Borrower
provides Lender with (a) reasonably satisfactory evidence that the assets of Hobby Lobby
or its parent company or lease guarantor (as applicable) are no longer subject to the jurisdiction of the bankruptcy court, and (b) reasonably
satisfactory evidence that each Hobby Lobby Lease or its guaranty (as applicable) has been
affirmed and is unmodified and in full force and effect, including an updated tenant estoppel certificate from Hobby
Lobby that is reasonably acceptable to Lender confirming that each Hobby Lobby Lease
is in full force and effect, Hobby Lobby is paying full contractual rent, without offset or
free rent credit (unless the amount of any such free rent (less any amounts on deposit in the Excess Cash Flow Reserve Account) is deposited
with Lender pursuant to Section 7.8.1 hereof) and that, to Hobby Lobby’s
actual knowledge, there is no default by either party under any Hobby Lobby Lease;
(ii) the
satisfaction of the Hobby Lobby Replacement Lease Criteria; or
(iii) the
occurrence of a Hobby Lobby Reserve Funds Cap Cure.
“Immaterial Easements”
shall mean the granting of easements, restrictions, covenants, reservations and rights of way in the ordinary course of business for access,
water and sewer lines, telephone or other fiber optic or other data transmission lines, electric lines or other utilities or for other
similar purposes; provided, however, that any such Transfer shall be subject to the following conditions precedent:
(i) Borrower
has provided Lender with thirty (30) days prior written notice of the proposed Transfer;
(ii) Borrower
has provided Lender with a copy of the instrument or instruments of Transfer;
(iii) Borrower
has provided Lender with an Officer’s Certificate of Borrower stating (1) with respect to any Transfer, the consideration,
if any, being paid for the Transfer, and (2) that such Transfer would not reasonably be expected to have, and does not have, a material
adverse effect on the use, operation and/or financial condition of the Property or the operations or financial condition of Borrower or
Guarantor;
(iv) Borrower
shall reimburse all of Lender’s reasonable out-of-pocket costs and expenses (including reasonable third-party attorneys’ fees
and disbursements) incurred in connection with such Transfer (which shall be paid by Borrower whether or not the proposed Transfer actually
occurs); and
(v) so
long as the Loan is included in a REMIC Trust in connection with a Securitization, no Immaterial Easement will be permitted unless, immediately
after such Immaterial Easement, either (1) the Loan to Value Ratio is equal to or less than one hundred twenty-five percent (125%)
(such value to be determined, in Lender’s sole discretion, by any commercially reasonable method permitted to a REMIC Trust, based
solely on the value of the real property excluding personal property and going concern value, if any) or (2) the principal balance
of the Loan is paid down by the least of the following amounts: (A) an amount equal to the net proceeds or other compensation paid
in connection with such Immaterial Easement, (B) the fair market value of the portion of the Property, or the right with respect
to the Property, being transferred at the time of such Immaterial Easement, or (C) an amount such that the Loan to Value Ratio (as
so determined by Lender) does not increase after the Immaterial Easement, unless the Lender receives an opinion of counsel that such Securitization
will not fail to maintain its status as a REMIC Trust as a result of the Immaterial Easement.
“Immediate Family
Member” has the meaning set forth in Section 5.2.10(f).
“Improvements”
means, individually or collectively (as the context requires), the “Improvements” as defined in each applicable Security Instrument.
“Indebtedness”
of a Person, at a particular date, means the sum (without duplication) at such date of (a) all indebtedness or liability of such
Person (including amounts for borrowed money and indebtedness in the form of mezzanine debt or preferred equity); (b) obligations
evidenced by bonds, debentures, notes, or other similar instruments; (c) obligations for the deferred purchase price of property
or services (including trade obligations); (d) obligations under letters of credit; (e) obligations under acceptance facilities;
(f) all guaranties, endorsements (other than for collection or deposit in the ordinary course of business) and other contingent obligations
to purchase, to provide funds for payment, to supply funds, to invest in any Person or entity, or otherwise to assure a creditor against
loss; and (g) obligations secured by any Liens, whether or not the obligations have been assumed (other than the Permitted Encumbrances).
“Indemnified Liabilities”
has the meaning set forth in Section 10.13(b) hereof.
“Indemnified Parties”
means Lender, any Affiliate of Lender 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, any Person in whose name the encumbrance created by the Security Instrument is or will have
been recorded, Persons who may hold or acquire or will have held a full or partial interest in the Loan, the holders of any Securities,
as well as custodians, trustees or other fiduciaries who hold or have held a full or partial interest in the Loan for the benefit of third
parties as well as the respective directors, officers, shareholders, partners, members, 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
or the Property, 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).
“Indemnified Taxes”
means any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority.
“Independent Director”
means a natural Person who (a) is not at the time of initial appointment, or at any time while serving in such capacity, and is not,
and has never been, and shall not while serving as Independent Director be: (i) a stockholder, director (with the exception of serving
as the Independent Director of Borrower), officer, employee, partner, member (other than a “special member” or “springing
member”), manager, attorney or counsel of Borrower, equity owners of Borrower or Guarantor or any Affiliate of Borrower or Guarantor;
(ii) a customer, supplier or other person who derives any of its purchases or revenues from its activities with Borrower or Guarantor,
equity owners of Borrower or Guarantor or any Affiliate of Borrower or Guarantor; (iii) a Person Controlling or under common Control
with any such stockholder, director, officer, employee, partner, member, manager, attorney, counsel, equity owner, customer, supplier
or other Person; or (iv) a member of the immediate family of any such stockholder, director, officer, employee, partner, member,
manager, attorney, counsel, equity owner, customer, supplier or other Person and (b) has (i) prior experience as an independent
director or independent manager for a corporation, a trust or limited liability company whose charter documents required the unanimous
consent of all independent directors or independent managers thereof before such corporation, trust or limited liability company could
consent to the institution of bankruptcy or insolvency proceedings against it or could file a petition seeking relief under any applicable
federal or state law relating to bankruptcy and (ii) at least three years of employment experience with one or more nationally-recognized
companies that provides, inter alia, professional independent directors or independent managers in the ordinary course of their
respective business to issuers of securitization or structured finance instruments, agreements or securities or lenders originating commercial
real estate loans for inclusion in securitization or structured finance instruments, agreements or securities (a “Professional
Independent Director”) and is at all times during his or her service as an Independent Director of Borrower an employee of such
a company or companies. A natural Person who satisfies the foregoing definition except for being (or having been) the independent director
or independent manager of a “special purpose entity” affiliated with Borrower (provided such affiliate does not or did not
own a direct or indirect equity interest in an Borrower) shall not be disqualified from serving as an Independent Director, provided that
such natural Person satisfies all other criteria set forth above and that the fees such individual earns from serving as independent director
or independent manager of affiliates of Borrower or in any given year constitute in the aggregate less than five percent (5%) of such
individual’s annual income for that year. A natural Person who satisfies the foregoing definition other than subparagraph (a)(ii) shall
not be disqualified from serving as an Independent Director of Borrower if such individual is a Professional Independent Director and
such individual complies with the requirements of the previous sentence. Lender has approved the Independent Directors existing as of
the date hereof.
“Individual Property”
shall mean each parcel of real property, the Improvements thereon and all personal property now or hereafter owned by a Borrower and encumbered
by the applicable Security Instrument, together with all rights pertaining to such property and Improvements, as more particularly described
in the granting clauses of the applicable Security Instrument and referred to therein as the “Property.” Such parcels of individual
real property, along with their respective Borrower owners, are set forth in Schedule IV attached hereto.
“Individual Property
Release Yield Maintenance Premium” shall mean an amount equal to the greater of (a) one percent (1%) of the Adjusted Release
Amount for the Individual Property and (b) the excess, if any, of (i) the sum of the present values of all then-scheduled payments
of principal and interest under the Loan with respect to a principal amount equal to the Adjusted Release Amount for the Individual Property,
assuming that all scheduled payments are made timely and that the remaining outstanding principal and interest on the Loan with respect
to a principal amount equal to the Adjusted Release Amount for the Individual Property is paid on the Permitted Par Prepayment Date (with
each such payment and assumed payment discounted to its present value at the date of prepayment at the rate which, when compounded monthly,
is equivalent to the Prepayment Rate when compounded semi-annually and deducting from the sum of such present values any short-term interest
paid from the date of prepayment to the next succeeding Payment Date in the event that such payment is not made on a Payment Date), over
(ii) a principal amount equal to the Adjusted Release Amount for the Individual Property.
“Insolvency Opinion”
means that certain non-consolidation opinion letter dated the date hereof delivered by Neuberger, Quinn, Gielen, Rubin & Gibber,
P.A. in connection with the Loan, or any other non-consolidation opinion letter (or update to the initial Insolvency Opinion delivered
on the date hereof) delivered pursuant to the terms of this Agreement.
“Institutional Controls”
means any legal or physical restrictions or limitations on the use of, or access to, the Property to eliminate or minimize potential exposures
to any Hazardous Substance, to prevent activities that would reasonably be expected to interfere with the effectiveness of any Remediation,
or to ensure maintenance of a level of risk to human health or the environment, including physical modifications to the Property such
as slurry walls, capping, hydraulic controls for ground water, restrictive covenants, environmental protection easements, or property
use limitations, subject to the terms of the Leases and rights of Tenants thereunder.
“Insurance Premiums”
has the meaning set forth in Section 6.1(b) hereof.
“Insurance Proceeds”
has the meaning set forth in Section 6.4(b) hereof.
“Interest Rate”
means six and 44,575/100,000 percent (6.44575%) per annum.
“KeyBank”
has the meaning set forth in the introductory paragraph hereof.
“Land”
means, individually or collectively (as the context requires), the “Land” as defined in each applicable Security Instrument.
“Lead Lender”
has the meaning set forth in Section 10.31(d) hereof.
“Lease”
means any lease, sublease or subsublease, letting, license, concession or other agreement (whether written or oral and whether now or
hereafter in effect), in each case to which Borrower is a party, pursuant to which any Person is granted a possessory interest in, or
right to use or occupy all or any portion of any space in the Property by or on behalf of Borrower, and (a) every modification, amendment
or other agreement relating to such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease,
subsublease, or other agreement and (b) every guarantee of the performance and observance of the covenants, conditions and agreements
to be performed and observed by the other party thereto.
“Legal Requirements”
means, all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions of Governmental Authorities related to the Property or any part thereof, or the construction, use, alteration
or operation thereof, or any part thereof, whether now or hereafter enacted and in force, and all permits, licenses and authorizations
and regulations relating thereto and all covenants, agreements, restrictions and encumbrances contained
in any instruments, either of record or known to Borrower, at any time in force affecting Borrower, the Property or any part thereof,
including, without limitation, any which may (a) require repairs, modifications or alterations in or to the Property or any part
thereof, or (b) in any way materially limit the use and enjoyment thereof.
“Lender”
has the meaning set forth in the introductory paragraph hereto, together with its successors and assigns.
“Lender Affiliate”
has the meaning set forth in Section 9.2(c) hereof.
“Lender Documents”
shall mean any agreement among Lenders and/or any participant or any fractional owner of a beneficial interest in the Loan or any Mezzanine
Loan relating to the administration of the Loan, any Mezzanine Loan, the Loan Documents or any Mezzanine Loan documents, including without
limitation any intercreditor agreements, co-lender agreements and participation agreements.
“Lender Group”
has the meaning set forth in Section 9.2(c) hereof.
“Letter
of Credit” shall mean an irrevocable, auto-renewing, unconditional, transferable, clean sight draft standby letter of
credit in form and substance reasonably acceptable to Lender (i) that is issued by KeyBank National Association (so long as KeyBank
is not downgraded below BBB by S&P or the equivalent by another Rating Agency), or an Eligible Institution, to Guarantor or a Person
reasonably approved by Lender, (ii) that has an initial term of not less than one year from the date of issuance and is automatically
renewable for successive one-year periods (unless the obligation being secured by, or otherwise requiring the delivery of, such letter
of credit is required to be performed at least thirty (30) days prior to the initial expiry date of such letter of credit), (iii) the
reimbursement obligation for which is not payable by the Borrower and is not secured by the Property, the Collateral or any other property
pledged to secure the Note, (iv) that is in favor of Lender and entitling Lender to draw thereon in New York, New York,
based solely on a statement that Lender has the right to draw thereon executed by an officer or authorized signatory of Lender, (v) that
permits multiple draws, and (vi) that is transferable from time to time by Lender and its successors and assigns without the consent
of the issuing bank and without cost or expense to the beneficiary.
“Liabilities”
has the meaning set forth in Section 9.2 hereof.
“Lien”
means, any mortgage, deed of trust, deed to secure debt, indemnity deed of trust, lien, pledge, hypothecation, assignment, security interest,
PACE Lien or any other encumbrance evidencing a financing or monetary obligation, charge or transfer of, on or affecting Borrower, the
Property, any portion thereof or any interest therein, including any conditional sale or other title retention agreement, any financing
lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s,
materialmen’s and other similar liens and encumbrances.
“Liquid Assets”
means assets in the form of cash, cash equivalents, obligations of (or fully guaranteed as to principal and interest by) the United States
or any agency or instrumentality thereof (provided the full faith and credit of the United States supports such obligation or guarantee),
certificates of deposit issued by a commercial bank having net assets of not less than $500 million, securities listed and traded on a
recognized stock exchange or traded over the counter and listed in the National Association of Securities Dealers Automatic Quotations,
or liquid debt instruments that have a readily ascertainable value and are regularly traded in a recognized financial market.
“Liquid Assets Threshold”
means Liquid Assets having a market value of at least $13,500,000.00.
“Loan”
means the loan in the Original Principal Amount made by Lender to Borrower pursuant to this Agreement.
“Loan Bifurcation”
has the meaning set forth in Section 9.1 hereof.
“Loan Documents”
means, collectively, this Agreement, the Note, the Security Instrument, the Environmental Indemnity, the Assignment of Management Agreement,
the Guaranty, the Clearing Account Agreement, the Cash Management Agreement, the Assignment of Leases and Rents and all other documents
executed or delivered by Borrower or Guarantor in connection with the Loan.
“Loan to Value Ratio”
shall mean, as of the date of its calculation, the ratio of (i) the sum of the outstanding principal amount of the Loan as of the
date of such calculation to (ii) the fair market value of all applicable Individual Properties, as determined, in Lender’s
reasonable discretion, by any commercially reasonable method permitted to a REMIC Trust.
“Major Lease”
means (i) a Lease which (A) together with all other Leases to the same Tenant or any Affiliate of such Tenant, constitutes ten
percent (10%) or more of the aggregate annual Rent of all of the Property, or demises ten percent (10%) or more of the aggregate rentable
square feet of all of the Property, (B) contains an option or preferential right to purchase any portion of the Property, or (C) is
with a Tenant that is an Affiliate of Borrower; and (ii) any instrument guaranteeing or providing credit support for any Lease identified
in clause (i) above. The only Major Leases in effect as of the Closing Date are (1) each Hobby Lobby Lease, (2) that certain
Ground Lease dated as of August 23, 2013, entered into by and between AVTEX Commercial Properties, Inc., a South Carolina corporation
(predecessor-in-interest to Borrower), as landlord, and Wal-Mart Stores East, LP, a Delaware limited partnership, as tenant, as the same
may have been (or may be) modified, amended and/or assigned from time to time and (3) that certain Ground Lease dated as of July 2,
2010, entered into by and between FP Southway, LLC, a Delaware limited liability company (predecessor-in-interest to Borrower), as landlord,
and McDonald’s USA, LLC, a Delaware limited liability company, as tenant, as the same may have been (or may be) modified, amended
and/or assigned from time to time.
“Management Agreement”
means individually or collectively (as the context may require), each management agreement entered into by and between Borrower and Manager,
pursuant to which the applicable Manager is to provide management and other services with respect to the Property or any portion thereof,
or, if the context requires, a Qualified Manager who is managing the Property in accordance with the terms and provisions of this Agreement
pursuant to a Replacement Management Agreement.
“Manager”
means with respect to each Individual Property, the Person associated therewith as set forth on Schedule V hereof (including any
Affiliated Manager), or, if the context requires, a Qualified Manager who is managing the Property or any portion thereof in accordance
with the terms and provisions of this Agreement pursuant to a Replacement Management Agreement.
“Material Action”
means to consolidate or merge Borrower with or into any Person, or to institute proceedings to have Borrower be adjudicated bankrupt or
insolvent, or consent to the institution of bankruptcy or insolvency proceedings against Borrower or file a petition seeking, or consent
to, reorganization or relief with respect to Borrower under any applicable federal or state law relating to bankruptcy, or consent to
the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of Borrower or a substantial part
of its property, or make any assignment for the benefit of creditors of Borrower, or admit in writing in a legal proceeding Borrower’s
inability to pay its debts generally as they become due (unless otherwise required by Legal Requirements), or take action in furtherance
of any such action (unless otherwise required by Legal Requirements), or, to the fullest extent permitted by law, dissolve or liquidate
Borrower.
“Maturity Date”
means September 6, 2033, or such other date on which the final payment of principal of the Note becomes due and payable as therein
or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise.
“Maximum Legal Rate”
means the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged
or received on the indebtedness evidenced by the Note and as provided for herein or in the other Loan Documents, under the laws of such
State or States whose laws are held by any court of competent jurisdiction to govern the interest rate provisions of the Loan.
“Mezzanine Borrower”
has the meaning set forth in Section 9.7 hereof.
“Mezzanine Control
Event” has the meaning set forth in the Guaranty.
“Mezzanine Loan”
has the meaning set forth in Section 9.7 hereof.
“Mezzanine Option”
has the meaning set forth in Section 9.7 hereof.
“Monthly Debt Service
Payment Amount” with respect to each Payment Date, a payment equal to the amount of interest which has accrued during the immediately
preceding Accrual Period computed at the Interest Rate.
“Moody’s”
means Moody’s Investors Service, Inc.
“Mortgage Loan”
has the meaning set forth in Section 9.7 hereof.
“Net Cash Flow”
means, with respect to the Property for any period, the amount obtained by subtracting Operating Expenses and Capital Expenditures for
such period from Gross Income from Operations for such period.
“Net Operating Income”
means the amount obtained by subtracting Operating Expenses from Gross Income from Operations.
“Net Proceeds”
has the meaning set forth in Section 6.4(b) hereof.
“Net Proceeds Deficiency”
has the meaning set forth in Section 6.4(b)(vi) hereof.
“Net Worth”
means, as of a given date, (a) all amounts (excluding the value of the Property) that would be included under net assets (the result
of total assets minus total liabilities) on the consolidated statement of net assets of Guarantor and its consolidated subsidiaries at
such date, determined pursuant to the fair value basis of accounting in conformity with GAAP, plus (b) seventy-five percent (75%)
of all Qualified Capital Commitments to which Guarantor is entitled. Provided, however, that any amounts included in Qualified Capital
Commitments shall be excluded from the amounts in clause (a) above.
“Net Worth Threshold”
means a Net Worth of at least $300,000,000.00.
“New Interest Accrual
Period” has the meaning set forth in Section 2.2.9 hereof.
“New Payment Date”
has the meaning set forth in Section 2.2.9 hereof.
“NFR Letter”
means that certain No Further Remediation Letter dated April 28, 2004 issued by the Illinois Environmental Protection Agency with
respect to the Individual Property identified on Schedule IV attached hereto as “Evergreen Marketplace - Evergreen Park, IL”.
“Non-Discretionary
Expenses” means any non-discretionary expense required for any Individual Property, including, without limitation, any expense
which, in Borrower’s good faith judgment is necessary to (a) comply with any of the material obligations of the Borrower as
landlord under any Lease, (b) comply with any material agreements, encumbrances or other instruments affecting the Property with
respect to which the failure to comply could reasonably be expected to have a material adverse effect on Borrower or the Property, (c) comply
with any other material obligations of Borrower under material agreements to which Borrower is a party (including, without limitation,
under any Management Agreement) with respect to which the failure to comply could reasonably be expected to have a material adverse effect
on Borrower or the Property, (d) pay Taxes or pay Emergency Expenses, (e) maintain insurance for the Property and Borrower as
required under Section 6.1, or (f) pay utility bills for the Property as and when due and payable.
“Non-U.S. Entity”
has the meaning set forth in Section 2.2.7(b) hereof.
“Note”
or “Notes” means, collectively, Note A-1, Note A-2, Note A-3, Note A-4, Note A-5, Note A-6, Note A-7, Note A-8, Note
A-9, Note A-10, Note A-11, Note A-12, Note A-13, Note A-14, Note A-15, Note A-16 and Note A-17, including any Defeased Note and Undefeased
Note that may exist from time to time.
“Note A-1”
means that certain Promissory Note A-1, dated the date hereof, in the principal amount of $24,000,000.00, made by Borrower in favor of
Barclays, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-2”
means that certain Promissory Note A-2, dated the date hereof, in the principal amount of $37,000,000.00, made by Borrower in favor of
Barclays, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-3”
means that certain Promissory Note A-3, dated the date hereof, in the principal amount of $30,000,000.00, made by Borrower in favor of
Barclays, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-4”
means that certain Promissory Note A-4, dated the date hereof, in the principal amount of $20,000,000.00, made by Borrower in favor of
SocGen, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-5”
means that certain Promissory Note A-5, dated the date hereof, in the principal amount of $13,800,000.00, made by Borrower in favor of
SocGen, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-6”
means that certain Promissory Note A-6, dated the date hereof, in the principal amount of $12,500,000.00, made by Borrower in favor of
SocGen, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-7”
means that certain Promissory Note A-7, dated the date hereof, in the principal amount of $10,033,333.00, made by Borrower in favor of
SocGen, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-8”
means that certain Promissory Note A-8, dated the date hereof, in the principal amount of $20,000,000.00, made by Borrower in favor of
BMO, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-9”
means that certain Promissory Note A-9, dated the date hereof, in the principal amount of $17,000,000.00, made by Borrower in favor of
BMO, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-10”
means that certain Promissory Note A-10, dated the date hereof, in the principal amount of $14,000,000.00, made by Borrower in favor of
BMO, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-11”
means that certain Promissory Note A-11, dated the date hereof, in the principal amount of $5,333,334.00, made by Borrower in favor of
BMO, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-12”
means that certain Promissory Note A-12, dated the date hereof, in the principal amount of $15,000,000.00, made by Borrower in favor of
KeyBank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-13”
means that certain Promissory Note A-13, dated the date hereof, in the principal amount of $11,000,000.00, made by Borrower in favor of
KeyBank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-14”
means that certain Promissory Note A-14, dated the date hereof, in the principal amount of $10,000,000.00, made by Borrower in favor of
KeyBank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-15”
means that certain Promissory Note A-15, dated the date hereof, in the principal amount of $8,000,000.00, made by Borrower in favor of
KeyBank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-16”
means that certain Promissory Note A-16, dated the date hereof, in the principal amount of $7,333,333.00, made by Borrower in favor of
KeyBank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Note A-17”
means that certain Promissory Note A-17, dated the date hereof, in the principal amount of $5,000,000.00, made by Borrower in favor of
KeyBank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“O&M Program”
shall mean, collectively, the asbestos, operations and maintenance programs developed by Borrower and approved by Lender, as the same
may be amended, replaced, supplemented or otherwise modified from time to time.
“OFAC”
has the meaning set forth in Section 10.25 hereof.
“Officer’s
Certificate” means a certificate delivered to Lender by Borrower which is signed by an authorized officer, authorized signatory
or authorized designee of Borrower or the general partner, managing member or sole member of Borrower, as applicable.
“Operating Expenses”
means the total of all expenditures, computed in accordance with GAAP, of whatever kind relating to the operation, maintenance and management
of the Property that are incurred on a regular monthly or other periodic basis, including, ground rent, utilities, ordinary repairs and
maintenance, insurance, license fees, property taxes and assessments, advertising expenses, management fees, payroll and related taxes,
computer processing charges, operational equipment or other lease payments as approved by Lender in its reasonable discretion, and other
similar costs, but excluding depreciation, amortization and other non-cash items and other non-cash charges, Debt Service, Capital
Expenditures, tenant improvements and leasing commissions and contributions to the Reserve Funds, income taxes or other taxes in the nature
of income taxes on sales, or use taxes required to be paid to any Governmental Authority, equity distributions, and other extraordinary
and non-recurring items, and legal or other professional services fees and expenses unrelated to the operation of the Property.
“Original Principal
Amount” means $260,000,000.00.
“Other Charges”
means all maintenance charges, impositions other than Taxes, and any other charges, including vault charges and license fees for the use
of vaults, chutes and similar areas adjoining the Property or any part thereof, now or hereafter levied or assessed or imposed against
the Property or any part thereof.
“Other Obligations”
has the meaning as set forth in the Security Instrument.
“Outstanding Principal
Balance” or “OPB” means the portion of the Original Principal Amount that remains outstanding from time to
time.
“Outstanding
TI/LC Deposit” has the meaning set forth in Section 7.9.1 hereof.
“Outstanding
TI /LC Reserve Account” has the meaning set forth in Section 7.9.1 hereof.
“Outstanding
TI/LC Reserve Fund” has the meaning set forth in Section 7.9.1 hereof.
“PACE
Lien” shall mean (x) any “Property-Assessed Clean Energy loan” or (y) any other indebtedness, without
regard to the name given to such indebtedness, which is (i) incurred for improvements to the Property for the purpose of increasing
energy efficiency, increasing use of renewable energy sources, resource conservation, or a combination of the foregoing, and (ii) repaid
through multi-year assessments against the Property.
“Partial Defeasance
Date” has the meaning set forth in Section 2.4.1 hereof.
“Partial Defeasance
Event” has the meaning set forth in Section 2.4.1 hereof.
“Partial Release”
has the meaning set forth in Section 2.5.2 hereof.
“Partial Release
Notice Date” has the meaning set forth in Section 2.5.2 hereof.
“Payment Date”
means the sixth (6th) day of each calendar month during the term of the Loan or, if such day is not a Business Day, the immediately preceding
Business Day.
“Permitted
Defeasance Date” means the date that is the earlier of (a) August 30, 2026 or (b) two (2) years from the
“startup day” within the meaning of Section 860G(a)(9) of the Code of the final REMIC Trust.
“Permitted Encumbrances”
means, with respect to each Individual Property, collectively, (a) the Liens and security interests created by, or expressly permitted
under, the Loan Documents, (b) the Stale Mortgage Liens (which, for the avoidance of doubt, shall not be exceptions on any Title
Insurance Policy) and all Liens, encumbrances and other matters disclosed in the applicable Title Insurance Policy, (c) Liens, if
any, for Taxes imposed by any Governmental Authority not yet due or delinquent (but expressly excluding any PACE Lien) or being contested
in accordance with the Loan Documents, (d) mechanic’s or materialmen’s liens, if any being contested in good faith and
by appropriate proceedings in accordance with the Loan Documents, (e) rights of existing and future tenants pursuant to Leases entered
into in accordance with this Agreement, (f) liens securing assessments or charges payable to a property owner association or similar
entity, which assessments are not yet due or delinquent, (g) liens relating to equipment financing which are incurred in the ordinary
course of business in connection with the ownership of the Property in an amount not to exceed one percent (1%) of the amount of the Loan
(“Permitted Equipment Financing”), provided, however, that Borrower shall not enter into any equipment financing arrangement
with respect to any equipment that is necessary and material to the operating of any of the Property; provided, further, however, any
“landlord lien waiver” or like agreement with any financing party to a Tenant whereby Borrower, as landlord, waives its landlord
lien rights to Tenant’s personal property shall be a Permitted Encumbrance, (h) bankers’ liens, rights of setoff and
other similar liens existing solely with respect to cash and other investments on deposit in one or more accounts maintained by or on
behalf of Borrower, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are
maintained, solely securing amounts owing to such bank with respect to cash management and operating account arrangements, (i) Immaterial
Easements and (j) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s reasonable
discretion.
“Permitted Equipment
Financing” has the meaning set forth in the definition of “Permitted Encumbrances”.
“Permitted Indebtedness”
has the meaning set forth in clause (xxiii) of the definition of “Special Purpose Entity”.
“Permitted Investments”
means “permitted investments” as then defined and required by the Rating Agencies.
“Permitted Par Prepayment
Date” means the Payment Date which is six (6) months prior to the Maturity Date.
“Permitted Prepayment
Date” means the Payment Date occurring in September, 2024.
“Permitted Trade
Payables” has the meaning set forth in clause (xxiii) of the definition of “Special Purpose Entity”.
“Permitted Transfer”
means any one or more of the following: (a) any transfer, directly as a result of the death of a natural person, of stock, membership
interests, partnership interests or other ownership interests previously held by the decedent in question to the Person or Persons lawfully
entitled thereto, (b) any transfer, directly as a result of the legal incapacity of a natural person, of stock, membership interests,
partnership interests or other ownership interests previously held by such natural person to the Person or Persons lawfully entitled thereto,
(c) any transfer of stock or membership interests in any publicly-held corporation or other publicly-held entity (in each case) which
is listed on the New York Stock Exchange, the NASDAQ Global Select Market or another nationally-recognized stock exchange, (d) the
offer, sale, listing, trading, pledging, transfer, withdrawal, cancellation or issuance of securities of the REIT, any publicly-held corporation
or other publicly-held entity provided that such securities are listed on the New York Stock Exchange, the NASDAQ Global Select Market
or another nationally recognized stock exchange (e) intentionally omitted, (f) a Qualified Equityholder Transfer, (g) any
Mezzanine Control Event, (h) any Lease entered into after the date hereof that does not require Lender consent or is approved or
deemed approved pursuant to the terms of Section 5.1.20 hereof, (i) a Permitted Encumbrance, (j) a Condemnation
affecting any Individual Property, (k) the release of an Individual Property pursuant to Section 2.5.2 hereof, (l) an
assumption of the Loan in accordance with Section 5.2.10(e) hereof and (m) the Global Net Lease Merger.
“Person”
means any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any
federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on
behalf of any of the foregoing.
“Personal Property”
means, individually or collectively (as the context requires), the “Personal Property” as defined in each applicable Security
Instrument.
“PLL Policy”
has the meaning set forth in Section 6.1(a)(ix) hereof.
“Policies”
has the meaning specified in Section 6.1(b) hereof.
“Policy”
has the meaning specified in Section 6.1(b) hereof.
“Post Defeasance
Payment Date” has the meaning set forth in Section 2.4.1(a)(ii) hereof.
“Post-Merger Environmental
Indemnity” means that certain Environmental Indemnity Agreement, to be dated as of the effective date of the Global Net Lease
Merger, executed by Borrower and Post-Merger Guarantor and delivered to Lender on the Closing Date to be held in escrow pursuant to Section 5.2.10(h) hereof,
as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Post-Merger Guarantor”
means Global Net Lease, Inc., a Maryland corporation.
“Post-Merger Guaranty”
means that certain Guaranty Agreement, to be dated as of the effective date of the Global Net Lease Merger, executed by Post-Merger Guarantor
and delivered to Lender on the Closing Date to be held in escrow pursuant to Section 5.2.10(h) hereof, as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Pre-Merger Guarantor”
means The Necessity Retail REIT Operating Partnership, L.P., a Delaware limited partnership.
“Prepayment Rate”
shall mean the bond equivalent yield (in the secondary market) on the United States Treasury Security that as of the Prepayment Rate Determination
Date has a remaining term to maturity closest to, but not exceeding, the remaining term to the Permitted Par Prepayment Date as most recently
published in “Statistical Release H.15 (519), Selected Interest Rates,” or any successor publication, published by the Board
of Governors of the Federal Reserve System, or on the basis of such other publication or statistical guide as Lender may reasonably select.
“Prepayment Rate
Determination Date” shall mean the date which is fifteen (15) Business Days prior to the date that the applicable prepayment
shall be applied in accordance with the terms and provisions of Section 2.3.1 hereof.
“Prohibited Entity/Ownership
Structure” means any direct or indirect ownership of either the Property or Borrower by (a) a statutory trust organized
under 12 Del.C. § 3801 et seq., or any successor statute thereto, or under any similar other state of federal law, (b) any one
or more Persons as tenants in common or any similar ownership structure, or (c) any one or more Persons as a result of any Crowdfunding;
provided that none of the foregoing shall apply to the Advisor Party or to shareholders of the REIT.
“Property”
means, individually or collectively (as the context requires), each Individual Property, the Improvements thereon and all Personal Property
owned by Borrower and encumbered by the Security Instruments, together with all rights pertaining to the real property, Personal Property
and Improvements, as more particularly described in the Security Instruments, and any portion of any of the foregoing which is subject
to the terms hereof and of the other Loan Documents. For the avoidance of doubt, following the release of any Individual Property pursuant
to Section 2.5.2 hereof, the term “Property” and related definitions in this Agreement and the other Loan Documents
shall no longer include such released Individual Property or any portion thereof.
“Provided Information”
means any and all financial and other information provided at any time prepared by, or on behalf of, Borrower, Guarantor or Manager.
“Prudent Lender Standard”
shall, with respect to any matter, be deemed to have been met if the matter in question (i) prior to a Securitization, is acceptable
to Lender in its commercially reasonable discretion and (ii) after a Securitization, (A) if permitted by the applicable legal
requirements relating to any REMIC Trust (including, without limitation, those relating to the continued treatment of the Loan (or the
applicable portion thereof and/or interest therein) as a “qualified mortgage” held by such REMIC Trust), the continued qualification
of such REMIC Trust as such, the non-imposition of any tax on such REMIC Trust (including, without limitation, taxes on “prohibited
transactions” and “contributions”) and any other REMIC Requirements, would be acceptable to Lender in its commercially
reasonable discretion or (B) if the Lender discretion in the foregoing subsection (A) is not permitted under such applicable
REMIC Requirements, would be acceptable to a prudent lender of commercial mortgage loans exercising its commercially reasonable discretion.
“Qualified
Capital Commitments” means, as of the date of calculation, the sum of (a) the amount of any uncalled capital commitments
of Guarantor’s investors to Guarantor that are (i) payable in cash, (ii) readily available to be called by such Guarantor
without restriction or any other condition at any time and from time to time other than notice and (iii) remain open through at least
six (6) months beyond the then scheduled Maturity Date, plus (b) the amount of any properly called capital commitments of Guarantor’s
investors to Guarantor that have not yet been funded provided that (i) such commitments are payable in cash and in less than five
(5) days, (ii) such commitments are irrevocable by such investors, (iii) such investors are not in default under the applicable
fund documents governing such capital commitments and (iv) such commitments remain open through at least six (6) months beyond
the then scheduled Maturity Date; provided further than all “Qualified Capital Commitments” must be unpledged and otherwise
unencumbered, and must be from an investor that is not subject to a bankruptcy or similar proceeding.
“Qualified Equityholder”
means (i) the REIT or (ii) a bank, savings and loan association, investment bank, insurance company, trust company, commercial
credit corporation, pension plan, pension fund or pension advisory firm, mutual fund, real estate investment trust, government entity
or plan, real estate company, investment fund, a company regularly engaged in the ownership, operation or investing in or funding of real
estate assets, or an institution substantially similar to any of the foregoing, provided in each case under this clause (ii) that
such Person (x) has total assets (in name or under management) in excess of $500,000,000.00 and (except with respect to a pension
advisory firm or similar fiduciary) capital/statutory surplus or shareholder’s equity in excess of $100,000,000.00 (in both cases,
exclusive of the Property), and (y) is regularly engaged in the business of owning and operating real estate (and if such real estate
is not comparable to the Property, then such Person will engage a Qualified Manager to manage the Property) or (iii) any other Person
reasonably (and promptly) approved by Lender. Additionally, for a Qualified Equityholder under either clause (ii) or (iii) above,
Lender must receive a credit check and bankruptcy, litigation, judgment lien and other customary comparable searches which must be reasonably
acceptable to Lender, including that (A) such Qualified Equityholder has not been the subject of any bankruptcy proceedings, voluntary
or involuntary, made an assignment for the benefit of creditors or taken advantage of any insolvency act, or any act for the benefit of
debtors within the previous seven (7) years, (B) such Qualified Equityholder has not been, and is not controlled by any party
which has ever been, convicted of a capital offense or fraud, embezzlement or other financial crime felony, and has no litigation or regulatory
action pending or threatened in writing against it which would reasonably be expected to result in a material adverse effect on such Person,
and (C) such Qualified Equityholder has never been, and is not affiliated with any person which has been, indicted or convicted for
a Patriot Act offense and is not on any anti-terrorism list of the United States of America.
“Qualified Equityholder
Transfer” has the meaning set forth in Section 5.2.10(g) hereof. For the avoidance of doubt, the Global Net
Lease Merger shall not be deemed to be a Qualified Equityholder Transfer hereunder.
“Qualified Manager”
means either (a) Manager; or (b) in the reasonable judgment of Lender, a reputable and experienced management organization (which
may be an Affiliate of Borrower) possessing experience in managing properties similar in size, scope, use and value as the Property, provided,
that, if required by Lender, Borrower shall have obtained (i) if a Securitization has occurred, prior written confirmation from the
applicable Rating Agencies that management of the Property by such entity will not cause a downgrade, withdrawal or qualification of the
then current ratings of the Securities or any class thereof and (ii) if such entity is an Affiliate of Borrower, an Additional Insolvency
Opinion. Lender hereby pre-approves each of the following as a “Qualified Manager”: NAI Hiffman, CBRE, Cushman &
Wakefield, Jones Lang LaSalle, Plaza Del Rio Management Corp., Transwestern, MedWest, Lincoln, The Shopping Center Group, LLC, Anchor
Property Management LLC (a/k/a Anchor Associates), Mid America Group, Ironwood and Necessity Retail Properties, LLC or another Affiliate
of Borrower or Post-Merger Guarantor.
“Qualified
Replacement Guarantor” shall mean a Person (a) who/that has its principal address and place business in the United States,
(b) who/that (i) has a tangible Net Worth of not less than $300,000,000.00 and Liquid Assets of not less than $13,500,000.00,
(ii) is a Qualified Equityholder or is twenty-five percent (25%) owned and Controlled by a Qualified Equityholder or (iii) is
otherwise approved by Lender, (c) for which Lender has received a credit check and bankruptcy, litigation, judgment lien and other
customary comparable searches which must be reasonably acceptable to Lender, including that (A) such Person has not been the subject
of any bankruptcy proceedings, voluntary or involuntary, made an assignment for the benefit of creditors or taken advantage of any insolvency
act, or any act for the benefit of debtors within the previous seven (7) years, (B) such Person has not been, and is not Controlled
by any party which has ever been, convicted of a capital offense or fraud, embezzlement or other financial crime felony, and has no material
litigation or regulatory action pending or threatened in writing against it, (C) such Person has never been, and is not Affiliated
with any person which has been, indicted or convicted for a Patriot Act offense and is not on any anti-terrorism list of the United States
of America, and (d) if a Securitization has occurred, for which Lender has received a written confirmation from the Rating
Agencies that the replacement of the Guarantor with a Qualified Replacement Guarantor shall not result in a downgrade, withdrawal or qualification
of the ratings then assigned to the Securities from each applicable Rating Agency.
“Ratable Share”
means, with respect to any Co-Lender, its share of the Loan based on the proportion of the outstanding principal of the Loan held by such
Co-Lender to the total outstanding principal amount of the Loan.
“Rating Agencies”
means whichever of S&P, Moody’s, Fitch, and Morningstar Credit Ratings, LLC which has been approved by Lender and designated
by Lender to assign a rating to the Securities, or any other nationally recognized statistical rating agency which has been approved by
Lender and designated by Lender to assign a rating to the Securities.
“Registration Statement”
has the meaning set forth in Section 9.2 hereof.
“Reimbursement Contribution”
has the meaning set forth in Section 10.30(c) hereof.
“Related Entities”
has the meaning set forth in Section 5.2.10(e)(v) hereof.
“Release”
means any release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping,
dumping, disposing or other movement of Hazardous Substances in violation of Environmental Laws.
“Released Property”
shall have the meaning set forth in Section 2.5.2 hereof.
“Remediation”
means any response, remedial, removal, or corrective action, any activity to cleanup, detoxify, decontaminate, contain or otherwise remediate
any Hazardous Substance, any actions to prevent, cure or mitigate any Release of any Hazardous Substance, any action to comply with any
Environmental Laws or with any permits issued pursuant thereto, any inspection, investigation, study, monitoring, assessment, audit, sampling
and testing, laboratory or other analysis, or evaluation relating to any Release of Hazardous Substances at or emanating from any Individual
Property, in each case, to the extent required under Environmental Law.
“REIT”
means (i) prior to the Global Net Lease Merger, The Necessity Retail REIT, Inc., a Maryland corporation, and (ii) after
the Global Net Lease Merger, the Post-Merger Guarantor.
“REMIC Requirements”
shall mean any applicable legal requirements relating to any REMIC Trust (including, without limitation, those relating to the continued
treatment of the Loan (or the applicable portion thereof or interest therein) as a “qualified mortgage” held by such REMIC
Trust, the continued qualification of such REMIC Trust as such under the Code, the non-imposition of any tax on such REMIC Trust under
the Code (including, without limitation, taxes on “prohibited transactions” and “contributions”) and any other
constraints, rules or other regulations or requirements relating to the servicing, modification or other similar matters with respect
to the Loan (or any portion thereof or interest therein) that may now or hereafter exist under applicable legal requirements (including,
without limitation under the Code)).
“REMIC Trust”
means a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds the Note
or a portion thereof.
“Rents”
means, all rents (including percentage rents), rent equivalents, moneys payable as damages or in lieu of rent or rent equivalents, royalties
(including all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, payments (including payments
in connection with the exercise of any purchase option or termination rights), deposits (including security, utility and other deposits,
to the extent the same have not been applied by Borrower or returned to the applicable Tenant in accordance with such Tenant’s Lease),
accounts, cash, issues, profits, charges for services rendered, all other amounts payable as rent under any Lease or other agreement relating
to the Property, including charges for electricity, oil, gas, water, steam, heat, ventilation, air-conditioning and any other energy,
telecommunication, telephone, utility or similar items or time use charges, HVAC equipment charges, sprinkler charges, escalation charges,
license fees, maintenance fees, charges for Taxes, operating expenses or other reimbursables payable to Borrower (or to the Manager for
the account of Borrower) under any Lease, and other consideration of whatever form or nature received by or paid to or for the account
of or benefit of Borrower or its agents or employees from any and all sources arising from or attributable to the Property.
“Replacement Management
Agreement” means, collectively, (a) either (i) a management agreement with a Qualified Manager substantially in the
same form and substance as the Management Agreement, or (ii) a management agreement with a Qualified Manager, which management agreement
shall be reasonably acceptable to Lender in form and substance (it being understood that a Replacement Management Agreement on a substantially
similar form as the Management Agreement provided to Lender in connection with the closing of the Loan is approved by Lender), provided,
however, with respect to either subclause (i) or (ii) above, that without Lender’s prior consent, in its sole discretion,
the management fee with respect to such Individual Property for such Qualified Manager shall not exceed the fee provided for in the Management
Agreement with respect to such Individual Property in effect as of the closing of the Loan, and provided, further, with
respect to subclause (ii) above, if a Securitization has occurred, Lender, at its option, may require that Borrower shall have obtained
prior written confirmation from the applicable Rating Agencies that such management agreement will not cause a downgrade, withdrawal or
qualification of the then current rating of the Securities or any class thereof and (b) an assignment of management agreement and
subordination of management fees substantially in the form delivered to Lender in connection with the origination of the Loan (or of such
other form and substance reasonably acceptable to Lender), executed and delivered to Lender by Borrower and such Qualified Manager at
Borrower’s expense.
“Replacement Reserve
Account” has the meaning set forth in Section 7.3.1 hereof.
“Replacement Reserve
Fund” has the meaning set forth in Section 7.3.1 hereof.
“Replacement Reserve
Monthly Deposit” has the meaning set forth in Section 7.3.1 hereof.
“Replacements”
has the meaning set forth in Section 7.3.1 hereof.
“Required PLL Period”
has the meaning set forth in Section 6.1(a)(ix) hereof.
“Required Repair
Account” has the meaning set forth in Section 7.1.1 hereof.
“Required Repair
Fund” has the meaning set forth in Section 7.1.1 hereof.
“Required Repairs”
has the meaning set forth in Section 7.1.1 hereof.
“Reserve Funds”
means, collectively, the Tax and Insurance Escrow Fund, the Replacement Reserve Fund, the Required Repair Fund, the Rollover Reserve Fund,
the Excess Cash Flow Reserve Fund, the Outstanding TI/LC Reserve Fund, the Free Rent Reserve
Fund, the Environmental Reserve Fund, the Gap Rent Reserve Fund and any other escrow fund established by the Loan Documents.
“Restoration”
means the repair and restoration of the Property (or applicable portion thereof) after a Casualty or Condemnation as nearly as possible
to the condition the Property (or applicable portion thereof) was in immediately prior to such Casualty or Condemnation, with such alterations
as may be reasonably approved by Lender.
“Restricted Party”
means collectively, (a) Borrower and any Guarantor and (b) any shareholder, partner, member, non-member manager, or any direct
or indirect legal or beneficial owner of Borrower, any Guarantor, or any non-member manager of Borrower and any Guarantor, in each case,
excluding shareholders or owners of stock or membership interests in any publicly-held corporation or other publicly-held entity (in each
case) which is listed on the New York Stock Exchange, the NASDAQ Global Select Market or another nationally-recognized stock exchange
that are not Affiliates of Borrower, Guarantor or any Affiliated Manager; provided, however that no Advisor Party shall
be a Restricted Party so long as such Advisor Party does not have Control of a Borrower or Guarantor, nor own more than 15% of the direct
or indirect ownership interests in a Borrower.
“Rollover Reserve
Account” has the meaning set forth in Section 7.4.1 hereof.
“Rollover Reserve
Fund” has the meaning set forth in Section 7.4.1 hereof.
“Rollover Reserve
Monthly Deposit” has the meaning set forth in Section 7.4.1 hereof.
“S&P”
means Standard & Poor’s Ratings Group, a division of the McGraw-Hill Companies.
“Sale or Pledge”
means a voluntary or involuntary sale, conveyance, assignment, transfer, encumbrance, pledge, grant of option or other transfer or disposal
of a legal or beneficial interest, whether direct or indirect.
“Satisfactory
Search Results” shall mean the results of credit history check, litigation, lien, bankruptcy, judgment and other similar
customary searches with respect to the applicable transferee and its applicable affiliates, in each case, (i) revealing no matters
which would have a material and adverse effect on Borrower’s financial condition, the value, use or operation of the applicable
Individual Property (and taking into account relativity to all Properties); (ii) demonstrating that any transferee is not an Embargoed
Person and (iii) yielding results which are otherwise acceptable to Lender in its commercially reasonable discretion.
“Scheduled Defeasance
Payments” has the meaning set forth in Section 2.4.1(c) hereof.
“Second Level SPE”
has the meaning set forth in Section 9.7 hereof.
“Securities”
has the meaning set forth in Section 9.1.1 hereof.
“Securitization”
has the meaning set forth in Section 9.1.1 hereof.
“Securitization/Loan
Component Provisions” has the meaning set forth in Section 9.1.1 hereof.
“Security Agreement”
has the meaning set forth in Section 2.4.1 hereof.
“Security Instrument”
and “Security Instruments” means individually or collectively, as the context requires, each first priority Deed of
Trust/Mortgage/Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, or similar document dated the
date hereof, executed and delivered by Borrower to Lender as security for the Loan and encumbering the Property (or any portion thereof),
as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Severed Loan Documents”
has the meaning set forth in Section 8.2(c) hereof.
“Servicer”
has the meaning set forth in Section 9.5 hereof.
“SocGen”
has the meaning set forth in the introductory paragraph hereof.
“Special Purpose
Entity” means a corporation, limited partnership or limited liability company that:
(i) is
and shall be organized solely for the purpose of acquiring, developing, owning, holding, selling, leasing, transferring, exchanging,
managing and operating the Property, entering into and performing its obligations under the Loan Documents with Lender, refinancing the
Property in connection with a permitted repayment (or partial repayment) of the Loan, and transacting lawful business that is incident,
necessary and appropriate to accomplish the foregoing;
(ii) has
not engaged and shall not engage in any business unrelated to the acquisition, development, ownership, holding, sale, lease, transfer,
exchange, management or operation of the Property;
(iii) has
not owned and shall not own any real property other than the Property;
(iv) does
not have, shall not have and at no time had any assets other than the Property and personal property necessary or incidental to its ownership
and operation of the Property;
(v) has
not engaged in, sought, consented to or permitted and shall not engage in, seek, consent to or permit (A) any dissolution, winding
up, liquidation, consolidation or merger or division into two (2) or more limited liability companies or other legal entities, or
(B) any sale or other transfer of all or substantially all of its assets or any sale of assets outside the ordinary course of its
business, except as permitted by the Loan Documents (including any delivery of a deed in lieu of foreclosure to Lender);
(vi) shall
not cause, consent to or permit any amendment of its limited partnership agreement, articles of incorporation, articles of organization,
certificate of formation, operating agreement or other formation document or organizational document (as applicable) with respect to
the matters set forth in this definition;
(vii) intentionally
omitted;
(viii) intentionally
omitted;
(ix) if
such entity is a limited liability company (other than a limited liability company meeting all of the requirements applicable to a single-member
limited liability company set forth in this definition of “Special Purpose Entity” whether or not it has one or more members),
has and shall have at least one (1) member that is a Special Purpose Entity, that is a corporation, that directly owns at least
one percent (1.0%) of the equity of the limited liability company; and that has at least two (2) Independent Directors;
(x) if
such entity is a single-member limited liability company, (A) is and shall be a Delaware limited liability company, (B) from
and after the date hereof has and shall have at least two (2) Independent Directors serving as managers of such company, (C) shall
not take any Material Action with respect to itself and shall not cause or permit the members or managers of such entity to take any
Material Action with respect to itself unless two (2) Independent Directors then serving as managers of the company shall have participated
consented in writing to such action, and (D) has and shall have either (1) a member which owns no economic interest in the
company, has signed the company’s limited liability company agreement and has no obligation to make capital contributions to the
company, or (2) two natural persons or one entity that is not a member of the company, that has signed its limited liability company
agreement and that, under the terms of such limited liability company agreement becomes a member of the company immediately prior to
the withdrawal or dissolution of the last remaining member of the company;
(xi) from
and after the date hereof shall not (and, if such entity is (a) a limited liability company, has and shall have a limited liability
agreement or an operating agreement, as applicable, (b) a limited partnership, has a limited partnership agreement, or (c) a
corporation, has a certificate of incorporation or articles that, in each case, provide that such entity shall not) (1) dissolve,
merge, liquidate, consolidate, divide into two (2) or more limited liability companies or other legal entities; (2) sell all
or substantially all of its assets while this Loan is outstanding, unless in accordance with the terms of this Agreement; (3) amend
its organizational documents with respect to the matters set forth in this definition without the consent of Lender; or (4) without
the affirmative vote of two (2) Independent Directors of itself: (A) file or consent in writing to the filing of any bankruptcy,
insolvency or reorganization case or proceeding, institute any proceedings under any applicable insolvency law or otherwise seek relief
under any laws relating to the relief from debts or the protection of debtors generally, file a bankruptcy or insolvency petition or
otherwise institute insolvency proceedings; (B) seek or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator, custodian or any similar official for the entity or a substantial portion of its property; (C) make an assignment
for the benefit of the creditors of the entity; or (D) take any action in furtherance of any of the foregoing;
(xii) has
at all times been and intends at all times to remain solvent and has paid and intends to pay its debts and liabilities (including, a
fairly-allocated portion of any personnel and overhead expenses that it shares with any Affiliate) from its assets as the same shall
become due, and has maintained and intends to maintain adequate capital for the normal obligations reasonably foreseeable in a business
of its size and character and in light of its contemplated business operations provided that the foregoing shall in no event obligate
any direct or indirect member, partner or shareholder (or any other party) of Borrower or any other Person to contribute equity (or make
any capital contributions (additional or otherwise)) into Borrower;
(xiii) holds
itself out as a legal entity, separate and apart from any other person or entity, has not failed and shall not fail to correct any known
misunderstanding regarding the separate identity of such entity and has not identified and shall not identify itself as a division of
any other Person;
(xiv) has
maintained and shall maintain its bank accounts (if any), books of account, books and records separate from those of any other Person
(other than the other Borrowers) and, to the extent that it is required to file tax returns under applicable law, has filed and shall
file its own tax returns, except to the extent that it is required by law to file consolidated tax returns and, if it is a corporation,
has not filed and shall not file a consolidated federal income tax return with any other corporation, except to the extent that it is
required by law to file consolidated tax returns;
(xv) has
maintained and shall maintain its own records, books, resolutions and agreements;
(xvi) has
not commingled and shall not commingle its funds or assets with those of any other Person and has not participated and shall not participate
in any cash management system with any other Person, excepting, however, (a) any cash management system entered into in connection
with any mortgage loan encumbering the Property or any part thereof prior to the date hereof, which prior cash management systems, if
any, have been terminated, and (b) the cash management system required by Lender in connection with the Loan;
(xvii) has
held and shall hold its assets in its own name (except to the extent delegated to the Manager pursuant to the Management Agreement);
(xviii) has
conducted and shall conduct its business in its name or in a name franchised or licensed to it by an entity other than an Affiliate of
itself or of Borrower, except for business conducted on behalf of itself by another Person under a business management services agreement
that is on commercially-reasonable terms, so long as the manager, or equivalent thereof, under such business management services agreement
holds itself out as an agent of Borrower;
(xix) (A) has
maintained and shall maintain its financial statements, accounting records and other entity documents separate from those of any other
Person; (B) has shown and shall show, in its financial statements, its asset and liabilities separate and apart from those of any
other Person; and (C) has not permitted and shall not permit its assets to be listed as assets on the financial statement of any
of its Affiliates (other than the other co-Borrowers) except as required by GAAP; provided, however, that any such consolidated financial
statement contains a note indicating that the Special Purpose Entity’s separate assets and credit are not available to pay the
debts of such Affiliate (other than the other co-Borrowers) and that the Special Purpose Entity’s liabilities do not constitute
obligations of the consolidated entity;
(xx) has
paid and intends to pay its own liabilities and expenses, including the salaries of its own employees, out of its own funds and assets
provided that the foregoing shall in no event obligate any direct or indirect member, partner or shareholder (or any other party) of
Borrower or any other Person to contribute equity (or make any capital contributions (additional or otherwise)) into Borrower, and has
maintained and shall maintain a sufficient number of employees in light of its contemplated business operations;
(xxi) has
observed and shall observe all partnership, corporate or limited liability company formalities, as applicable;
(xxii) has
not incurred any Indebtedness other than (i) acquisition financing with respect to the Property; construction financing with respect
to the Improvements and certain off-site improvements required by municipal and other authorities as conditions to the construction of
the Improvements; and first mortgage financings secured by the Property; and Indebtedness pursuant to letters of credit, guaranties,
interest rate protection agreements and other similar instruments executed and delivered in connection with such financings, (ii) unsecured
trade payables and operational debt not evidenced by a note, (iii) Indebtedness incurred in the financing of equipment and other
personal property used on the Property, and (iv) any other Permitted Indebtedness;
(xxiii) shall
have no Indebtedness other than (a) the Loan, (b) liabilities incurred in the ordinary course of business relating to the ownership
and operation of the Property and the routine administration of Borrower, in amounts not to exceed two percent (2%) of the amount of
the Loan which liabilities are not more than sixty (60) days past the date incurred and are not evidenced by a note, and which amounts
are commercially reasonable under the circumstances when incurred (“Permitted Trade Payables”), (c) Permitted
Equipment Financing and (d) such other liabilities that are permitted pursuant to this Agreement (collectively, the “Permitted
Indebtedness”), provided that the foregoing items (a) - (d) shall in no event obligate any direct or indirect owner
of Borrower or any other Person to contribute equity into Borrower, and provided further, that “Indebtedness” shall not include
any liability for Taxes or Other Charges or Insurance Premiums;
(xxiv) has
not assumed, guaranteed or become obligated and shall not assume or guarantee or become obligated for the debts of any other Person,
has not held out and shall not hold out its credit as being available to satisfy the obligations of any other Person or has not pledged
and shall not pledge its assets for the benefit of any other Person, in each case except for the Loan, debts that have been repaid in
full as of the Closing Date, and as otherwise permitted pursuant to this Agreement;
(xxv) has
not acquired and shall not acquire obligations or securities of its partners, members or shareholders or any other owner or Affiliate;
(xxvi) has
allocated and shall allocate fairly and reasonably any overhead expenses that are shared with any of its Affiliates, constituents, or
owners, or any guarantors of any of their respective obligations, or any Affiliate of any of the foregoing, including paying for shared
office space and for services performed by any employee of an Affiliate;
(xxvii) has
maintained and used and shall maintain and use separate stationery, invoices and checks bearing its name and not bearing the name of
any other entity unless such entity is clearly designated as being the Special Purpose Entity’s agent;
(xxviii) has
not pledged and shall not pledge its assets to or for the benefit of any other Person other than with respect to loans secured by the
Property, and no such pledge remains outstanding except to Lender to secure the Loan;
(xxix) has
held itself out and identified itself and shall hold itself out and identify itself as a separate and distinct entity under its own name
or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower and not as a division or part of any other
Person;
(xxx) has
maintained and shall maintain its assets in such a manner that it shall not be costly or difficult to segregate, ascertain or identify
its individual assets from those of any other Person;
(xxxi) has
not made and shall not make loans to any Person and has not held and shall not hold evidence of indebtedness issued by any other Person
or entity (other than cash and investment-grade securities and letters of credit held as security deposits issued by an entity that is
not an Affiliate of or subject to common ownership with such entity);
(xxxii) the
organizational documents for each Borrower that is a Delaware limited liability company shall, from and after the date hereof, provide
that except for duties to Borrower as set forth in the organizational documents (including duties to the member and Borrower’s
creditors solely to the extent of their respective economic interests in Borrower, but excluding (1) all other interests of the
member, (2) the interests of other Affiliates of Borrower, and (3) the interests of any group of Affiliates of which Borrower
is a part), the Independent Directors shall not, to the fullest extent permitted by law, including Section 18-1101(c) of the
Delaware Limited Liability Company Act, have any fiduciary duties to the member, any officer or any other Person bound by the applicable
Borrower’s organizational documents; provided, however, the foregoing shall not eliminate the implied contractual
covenant of good faith and fair dealing. The organizational documents for each Borrower that is a Delaware limited liability company
shall provide that all right, power and authority of the Independent Directors shall be limited to the extent necessary to exercise those
rights and perform those duties specifically set forth in the applicable Borrower’s organizational documents. The organizational
documents for each Borrower that is a Delaware limited liability company shall provide that notwithstanding any other provision of the
applicable Borrower’s organizational documents to the contrary, each Independent Director, in its capacity as an Independent Director,
may only act, vote or otherwise participate in those matters specifically required by the applicable organizational documents;
(xxxiii) other
than capital contributions and distributions permitted under the terms of its organizational documents (and other than any Management
Agreement with the Affiliated Manager and any other transactions permitted by this Agreement or approved by Lender), has not entered
into or been a party to, and shall not enter into or be a party to, any transaction with any of its partners, members, shareholders or
Affiliates except in the ordinary course of its business and on terms which are commercially reasonable terms comparable to those of
an arm’s-length transaction with an unrelated third party;
(xxxiv) Except
in connection with the Loan, from and after the date hereof, shall not have any obligation to, and shall not, indemnify its partners,
officers, directors or members, as the case may be, in each case unless such an obligation or indemnification is fully subordinated to
the Debt and shall not constitute a claim against it if its cash flow is insufficient to pay the amount of the Debt that is then due
and payable;
(xxxv) if
such entity is a corporation, has considered and shall consider the interests of its creditors in connection with all corporate actions;
(xxxvi) has
not had and shall not have any of its obligations guaranteed by any Affiliate except as provided by the Loan Documents;
(xxxvii) has
not formed, acquired or held and shall not form, acquire or hold any subsidiary;
(xxxviii) has
complied and shall comply in all respects with all of the terms and provisions contained in its organizational documents regarding the
matters set forth in this definition of “Special Purpose Entity”;
(xxxix) has
conducted and intends to conduct its business so that each of the assumptions made about it and each of the facts stated about it in
the Insolvency Opinion are true;
(xl) has
not permitted and shall not permit any Affiliate (other than an Affiliated Manager) or constituent party (other than a Manager) independent
access to its bank accounts;
(xli) has
not identified and shall not identify its partners, members or shareholders, or any Affiliate of any of them, as a division or part of
it, and has not identified itself and shall not identify itself as a division of any other Person;
(xlii) is,
has always been and intends to continue to be duly formed, validly existing, and in good standing in the state of its incorporation or
formation and in all other jurisdictions where it is qualified to do business;
(xliii) has
paid all taxes which are due and payable (unless otherwise being contested pursuant to the Loan Documents) and is not currently involved
in any dispute with any taxing authority (excluding any tax appeals or tax certiorari proceedings being conducted in the ordinary course
of Borrower’s business in accordance with the Loan Documents);
(xliv) is
not now, nor has ever been, party to any lawsuit, arbitration, summons, or legal proceeding that resulted in a final, non-appealable
judgment against it that has not been paid in full;
(xlv) has
no judgments or Liens of any nature against it except for tax liens not yet due and the Permitted Encumbrances;
(xlvi) [intentionally
omitted]; and
(xlvii) has
no material contingent or actual obligations not related to the Property.
“Stale Mortgage
Liens” means the Liens and encumbrances set forth on Schedule XIV attached hereto, each of which secured prior financing
that has been repaid in full.
“State”
means, the applicable State or Commonwealth in which the applicable Individual Property is located.
“Successor Borrower”
has the meaning set forth in Section 2.4.2 hereof.
“Survey”
means, individually or collectively (as the context requires), each survey of each Individual Property prepared by a surveyor licensed
in the State and reasonably satisfactory to Lender and the company or companies issuing the Title Insurance Policy, and containing a
certification of such surveyor reasonably satisfactory to Lender.
“Tax and Insurance
Escrow Account” has the meaning set forth in Section 7.2 hereof.
“Tax and Insurance
Escrow Fund” has the meaning set forth in Section 7.2 hereof.
“Taxes”
means all real estate and personal property taxes, assessments, water rates or sewer rents, and payments in lieu-of-taxes required by
the TIF Agreement, now or hereafter levied or assessed or imposed against the Property or part thereof.
“Tenant”
means the lessee of all or a portion of the Property under a Lease.
“Tenant Direction
Letter” means an instruction letter to Tenants substantially in the form attached hereto as Schedule VI.
“Terrell Mill Property”
has the meaning set forth in Section 6.1(a)(ix) hereof.
“Threshold Amount”
means, with respect to each Individual Property, an amount equal to the greater of (i) $500,000 and (ii) five percent (5%)
of the outstanding Allocated Loan Amount for such Individual Property.
“TIF Agreement”
means that certain Tax Increment Financing Agreement (Stringtown Road Development) dated December 19, 2002, entered into by and
among Grove City and Grove City TIF Owners, as the same may have been or may be amended, restated, supplemented or otherwise modified
from time to time in accordance with the terms of this Agreement.
“TILC Obligations”
has the meaning set forth in Section 7.4.1 hereof.
“Title Insurance
Policy” means each mortgagee title insurance policy issued with respect to one or more Individual Properties and insuring the
lien of each applicable Security Instrument.
“Total Defeasance
Date” has the meaning set forth in Section 2.4.1 hereof.
“Total Defeasance
Event” has the meaning set forth in Section 2.4.1 hereof.
“Transfer”
has the meaning set forth in Section 5.2.10(b) hereof.
“Transferee”
has the meaning set forth in Section 5.2.10(e) hereof.
“Transferee’s
Principals” means collectively, (A) Transferee’s managing members, general partners or principal shareholders and
(B) such other members, partners or shareholders which directly or indirectly shall own a fifty-one percent (51%) or greater economic
and voting interest in Transferee.
“U.S. Obligations”
means nonredeemable, nonprepayable, noncallable securities evidencing an obligation to timely pay principal and/or interest in a full
and timely manner that constitute “government securities” within the meaning of Section 2(a)(16) of the Investment Company
Act of 1940, as amended, and are (a) direct obligations of the United States of America for the payment of which its full faith
and credit is pledged, or (b) to the extent acceptable to the Rating Agencies, other “government securities” within
the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended.
“UCC”
or “Uniform Commercial Code” means the Uniform Commercial Code as in effect in the State in which applicable Individual
Property is located.
“UK Financial Institution”
has the meaning set forth in Section 10.27 hereof.
“UK Resolution Authority”
has the meaning set forth in Section 10.27 hereof.
“Undefeased Note”
has the meaning set forth in Section 2.4.1 hereof.
“Underwriter Group”
has the meaning set forth in Section 9.2 hereof.
“Updated Information”
has the meaning set forth in Section 9.1 hereof.
“Vapor Intrusion
Condition” has the meaning set forth in Section 7.7.2 hereof.
“Vapor Intrusion
Mitigation” has the meaning set forth in Section 7.7.2 hereof.
“Violation”
or “Violations” means, individually or collectively as the context shall require, the violations of Legal Requirements
set forth on Schedule X attached hereto.
“Write-Down and
Conversion Powers” has the meaning set forth in Section 10.27 hereof.
“Yield Maintenance
Default Premium” shall mean an amount equal to the greater of (a) three percent (3%) of the outstanding principal balance
of the Loan to be prepaid or satisfied and (b) the excess, if any, of (i) the sum of the present values of all then-scheduled
payments of principal and interest under the Note assuming that all scheduled payments are made timely and that the remaining outstanding
principal and interest on the Loan is paid on the Permitted Par Prepayment Date (with each such payment and assumed payment discounted
to its present value at the date of prepayment at the rate which, when compounded monthly, is equivalent to the Prepayment Rate when
compounded semi-annually and deducting from the sum of such present values any short-term interest paid from the date of prepayment to
the next succeeding Payment Date in the event such payment is not made on a Payment Date), over (ii) the principal amount being
prepaid.
“Yield Maintenance
Premium” means an amount equal to the greater of (a) one percent (1%) of the outstanding principal of the Loan to be prepaid
or satisfied and (b) the excess, if any, of (i) the sum of the present values of all then-scheduled payments of principal and
interest under the Note assuming that all scheduled payments are made timely and that the remaining outstanding principal and interest
on the Loan is paid on the Permitted Par Prepayment Date (with each such payment and assumed payment discounted to its present value
at the date of prepayment at the rate which, when compounded monthly, is equivalent to the Prepayment Rate when compounded semi-annually
and deducting from the sum of such present values any short-term interest paid from the date of prepayment to the next succeeding Payment
Date in the event such payment is not made on a Payment Date), over (ii) the principal amount being prepaid.
Section 1.2 Principles
of Construction. The following rules of construction shall be applicable for all purposes of this Agreement and all documents
or instruments supplemental hereto, unless the context otherwise clearly requires:
(a) any
pronoun used herein shall be deemed to cover all genders, and words importing the singular number shall mean and include the plural number,
and vice versa;
(b) the
term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”;
(c) an
Event of Default shall “continue” or be “continuing” until such Event of Default has been waived in writing by
Lender or a cure has been accepted by Lender (which cure Lender may accept in Lender’s reasonable discretion; provided,
however, that if (i) Lender has applied for the appointment of a receiver pursuant to the Security Instrument, (ii) Lender
shall have declared the entire unpaid Debt to be immediately due and payable, or (iii) Lender shall have commenced a foreclosure
action pursuant to the Security Instrument, Lender is not obligated to accept such cure and may reject or accept such cure in Lender’s
sole and absolute discretion);
(d) no
inference in favor of or against any party shall be drawn from the fact that such party has drafted any portion hereof or any other Loan
Document;
(e) the
cover page (if any) of, all recitals set forth in, and all Exhibits to, any Loan Document are hereby incorporated therein;
(f) References
herein to “the Property or any portion thereof” and words of similar import shall be deemed to refer, as applicable, to any
portion of the Property taken as a whole (including any Individual Property) and any portion of any Individual Property;
(g) all
references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified;
(h) all
uses of the words “include,” “including” and similar terms shall be construed as if followed by the phrase “without
being limited to” unless the context shall indicate otherwise;
(i) unless
otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar import when
used in any Loan Document shall refer to such Loan Document as a whole and not to any particular provision of such Loan Document;
(j) unless
otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms
of the terms so defined;
(k) all
captions to the Sections in any Loan Document are used for convenience and reference only and in no way define, limit or describe the
scope or intent of, or in any way affect, such Loan Document; and
(l) Wherever
Lender’s judgment, consent, approval or discretion is required under any Loan Document for any matter or thing or Lender shall
have an option, election, or right of determination or any other power to decide any matter relating to the terms and conditions of such
Loan Document, including any right to determine that something is satisfactory or not (“Decision Power”), such Decision
Power shall be exercised in the sole and absolute discretion of Lender unless otherwise expressly stated. Such Decision Power and each
other power granted to Lender may be exercised by Lender or by any authorized agent of Lender (including any servicer and/or attorney-in-fact),
and Borrower hereby expressly agrees to recognize the exercise of such Decision Power by such authorized agent acting at the direction
of Lender. Without limiting the generality of the foregoing, any authorized agent of Lender (including any servicer and/or attorney-in-fact)
is hereby specifically authorized to remove a trustee under any applicable Security Instrument and select and appoint a successor trustee
with respect to such Security Instrument so long as such removal does not prejudice Borrower or any of its rights thereunder (other than
to a de minimis extent).
ARTICLE II. GENERAL TERMS
Section 2.1 Loan
Commitment; Disbursement to Borrower.
2.1.1 Agreement
to Lend and Borrow. Subject to and upon the terms and conditions set forth herein, Lender
hereby agrees to make and Borrower hereby agrees to accept the Loan on the Closing Date.
2.1.2 Single
Disbursement to Borrower. Borrower may request and receive only one (1) borrowing hereunder
in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. Borrower acknowledges
and agrees that the Loan has been fully funded as of the Closing Date.
2.1.3 The
Note, Security Instrument and Loan Documents. The Loan shall be evidenced by the Note and
secured by the Security Instruments and the other Loan Documents.
2.1.4 Use
of Proceeds. Borrower shall use the proceeds of the Loan to (a) acquire the Property,
recapitalize Borrower equity or repay and discharge any existing loans relating to the Property, (b) pay all past due basic carrying
costs, if any, with respect to the Property, (c) make deposits into the Reserve Funds on the Closing Date in the amounts provided
herein, (d) pay costs and expenses incurred in connection with the closing of the Loan, and pay other amounts set forth on the settlement
statement approved by Lender on or prior to the Closing Date, (e) fund any working capital requirements of the Property and (f) distribute
the balance, if any, to Borrower or its direct or indirect owners.
Section 2.2 Interest
Rate; Loan Payments; Late Payment Charge.
2.2.1 Payments.
(a) On
the Closing Date, Borrower shall pay to Lender interest on the outstanding principal amount of the Loan for the period through and including
September 5, 2023. In addition, Borrower shall make a payment to Lender of interest in the amount of the Monthly Debt Service Payment
Amount on the Payment Date occurring in October, 2023 and on each Payment Date thereafter to but excluding the Maturity Date. Provided
no Event of Default shall have occurred and be continuing, each payment and prepayment under this Agreement shall be applied on a pro
rata and pari passu basis to each Note, first to accrued and unpaid interest and then (as applicable) to the portion of the principal
allocable to each Note. Any amounts recovered by or paid to Lender during the continuance of an Event of Default may be applied to the
Debt in such order, proportion and priority as Lender may determine in its sole and absolute discretion.
(b) All
payments and other amounts due under the Note, this Agreement and the other Loan Documents shall be made without any setoff, defense
or irrespective of, and without deduction for, counterclaims.
2.2.2 Interest
Calculation. Interest on the outstanding principal balance of the Loan shall be calculated
by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) the Interest
Rate divided by three hundred sixty (360) by (c) the Outstanding Principal Balance. The accrual period for calculating interest
due on each Payment Date shall be the Accrual Period in which the related Payment Date occurs.
2.2.3 Payment
on Maturity Date. Borrower shall pay to Lender on the Maturity Date the outstanding principal
balance of the Loan, all accrued and unpaid interest thereon, and all other amounts due hereunder and under the Note, the Security Instrument
and the other Loan Documents, including, without limitation, all interest accrued on the outstanding principal balance of the Loan through
and including the Maturity Date.
2.2.4 Payments
after Default. Upon the occurrence and during the continuance of an Event of Default, (a) interest
on the outstanding principal balance of the Loan and, to the extent permitted by applicable law, overdue interest and other amounts due
in respect of the Loan, shall accrue at the Default Rate, calculated from the date such payment was delinquent taking into account any
grace or cure periods contained herein. Interest at the Default Rate shall be computed from the occurrence of the Event of Default until
the actual receipt and collection of the Debt (or that portion thereof that is then due). To the extent permitted by applicable law,
interest at the Default Rate shall be added to the Debt, shall itself accrue interest at the same rate as the Loan and shall be secured
by the Security Instrument. This paragraph shall not be construed as an agreement or privilege to extend the date of the payment of the
Debt, nor as a waiver of any other right or remedy accruing to Lender by reason of the occurrence of any Event of Default. Lender retains
its rights under the Note to accelerate and to continue to demand payment of the Debt upon the happening and during the continuance of
any Event of Default.
2.2.5 Late
Payment Charge. If any principal, interest or any other sums due under the Loan Documents
is not paid by Borrower on the date on which it is due (other than any principal due on the Maturity Date), Borrower shall pay to Lender
upon demand an amount equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount permitted by applicable law in
order to defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss
of the use of such delinquent payment; provided, however, the failure by Cash Management Bank during the continuance of a Cash Sweep
Period to disburse any payments due to Lender and/or allocate such funds to the appropriate Reserve Account in violation of the Loan
Documents shall not result in a late payment charge under this Section 2.2.5. Any such amount shall be secured by the Security
Instrument and the other Loan Documents to the extent permitted by applicable law.
2.2.6 Usury
Savings. This Agreement and the Note are subject to the express condition that at no time
shall Borrower be obligated or required to pay interest on the principal balance of the Loan at a rate which could subject Lender to
either civil or criminal liability as a result of being in excess of the Maximum Legal Rate. If, by the terms of this Agreement or the
other Loan Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate
in excess of the Maximum Legal Rate, the Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced
to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction
of principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance,
or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and
spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan
does not exceed the Maximum Legal Rate of interest from time to time in effect and applicable to the Loan for so long as the Loan is
outstanding.
2.2.7 Indemnified
Taxes.
(a) All
payments made by Borrower hereunder shall be made free and clear of, and without reduction for or on account of, Indemnified Taxes,
excluding (i) Indemnified Taxes measured by Lender’s net income, and franchise taxes imposed on it, by the jurisdiction under
the laws of which Lender is resident or organized, or any political subdivision thereof, (ii) taxes measured by Lender’s overall
net income, and franchise taxes imposed on it, by the jurisdiction of Lender’s lending office or any political subdivision thereof
or in which Lender is resident or engaged in business, and (iii) withholding taxes imposed by the United States of America, any
state, commonwealth, protectorate territory or any political subdivision or taxing authority thereof or therein as a result of the failure
of Lender which is a Non-U.S. Entity to comply with the terms of paragraph (b) below. If any non-excluded Indemnified Taxes are
required to be withheld from any amounts payable to Lender hereunder, the amounts so payable to Lender shall be increased to the extent
necessary to yield to Lender (after payment of all non-excluded Indemnified Taxes) interest or any such other amounts payable hereunder
at the rate or in the amounts specified hereunder. Whenever any non-excluded Indemnified Tax is payable pursuant to applicable law by
Borrower, Borrower shall send to Lender an original official receipt showing payment of such non-excluded Indemnified Tax or other evidence
of payment reasonably satisfactory to Lender. Borrower hereby indemnifies Lender for any incremental taxes, interest or penalties that
may become payable by Lender which may result from any failure by Borrower to pay any such non-excluded Indemnified Tax when due to the
appropriate taxing authority or any failure by Borrower to remit to Lender the required receipts or other required documentary evidence.
(b) In
the event that Lender or any successor and/or assign of Lender is not incorporated under the laws of the United States of America or
a state thereof (a “Non-U.S. Entity”) Lender agrees that, prior to the first date on which any payment is due such
entity hereunder, it will deliver to Borrower two duly completed copies of United States Internal Revenue Service Form W-8BEN or
W-8ECI or successor applicable form, as the case may be, certifying in each case that such entity is entitled to receive payments under
the Note, without deduction or withholding of any United States federal income taxes. Each entity required to deliver to Borrower a Form W-8BEN
or W-8ECI pursuant to the preceding sentence further undertakes to deliver to Borrower two further copies of such forms, or successor
applicable forms, or other manner of certification, as the case may be, on or before the date that any such form expires (which, in the
case of the Form W-8ECI, is the last day of each U.S. taxable year of the Non-U.S. Entity) or becomes obsolete or after the occurrence
of any event requiring a change in the most recent form previously delivered by it to Borrower, and such other extensions or renewals
thereof as may reasonably be requested by Borrower, certifying in the case of a Form W-8BEN or W-8ECI that such entity is entitled
to receive payments under the Note without deduction or withholding of any United States federal income taxes, unless in any such case
an event (including, without limitation, any change in treaty, law or regulation) has occurred prior to the date on which any such delivery
would otherwise be required which renders all such forms inapplicable or which would prevent such entity from duly completing and delivering
any such form with respect to it and such entity advises Borrower that it is not capable of receiving payments without any deduction
or withholding of United States federal income tax.
2.2.8 Invalidated
Payments. If any payment received by Lender is deemed by a court of competent jurisdiction
to be a voidable preference or fraudulent conveyance under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency
law, and is required to be returned by Lender, then the obligation to make such payment shall be reinstated, notwithstanding that the
Note may have been marked satisfied and returned to Borrower or otherwise canceled, and such payment shall be immediately due and payable
upon demand.
2.2.9 New
Payment Date. Lender shall have the right, to be exercised not more than one (1) time
during the term of the Loan, to change the Payment Date to a date other than the sixth (6th) day of each month (a “New
Payment Date”), on not less than sixty (60) days’ written notice to Borrower; provided, however, that any
such change in the Payment Date: shall not (x) increase any of Borrower’s obligations hereunder (other than to a de minimis
extent), (y) change the Maturity Date or (z) modify the Monthly Debt Service Payment Amount, except that the first (1st)
payment of interest payable on the New Payment Date shall be accompanied by interest at the Interest Rate for the period from the Payment
Date in the month in which the New Payment Date first occurs to the New Payment Date. In addition, in the event that Lender elects to
change the Payment Date to a New Payment Date pursuant to this Section 2.2.9, Lender may, but shall not be obligated to,
change the Accrual Period to a corresponding period of thirty-one (31) days or less selected by Lender (a “New Interest Accrual
Period”), and in the event that Lender elects to change the Accrual Period to a New Interest Accrual Period, the first (1st)
payment of interest payable on the New Payment Date shall be adjusted accordingly to accommodate such change in the Accrual Period.
Section 2.3 Prepayments.
2.3.1 Voluntary
Prepayments.
(a) Except
as otherwise expressly provided herein, Borrower shall not have the right to prepay the Loan in whole or in part prior to the Maturity
Date.
(b) After
the Permitted Prepayment Date, Borrower may, at its option and upon thirty (30) days prior written notice to Lender, prepay the Debt
in full (but not in part), provided that (i) [intentionally omitted], (ii) Borrower submits a notice to Lender setting forth
the projected date of prepayment (the “Prepayment Date”), which date shall be no less than thirty (30) days from the
date of such notice, (iii) Borrower pays to Lender (A) the unpaid principal amount of the Note, (B) all interest accrued
and unpaid on the principal balance of the Note to and including the date of prepayment, (C) all other sums due under the Note,
this Agreement and the other Loan Documents, (D) if such prepayment occurs prior to the Permitted Par Prepayment Date, the Yield
Maintenance Premium (or, if an Event of Default then exists, the Yield Maintenance Default Premium pursuant to Section 2.3.3),
and (E) if such prepayment is not paid on a regularly scheduled Payment Date, interest for the full Accrual Period during which
the prepayment occurs, notwithstanding that such Accrual Period extends beyond the date of prepayment. If a notice of prepayment is given
by Borrower to Lender pursuant to this Section 2.3.1, the amount designated for prepayment and all other sums required under
this Section 2.3.1 shall be due and payable on the Prepayment Date. A notice of prepayment may be revoked by Borrower or
Borrower may change the repayment date if written notice of such revocation or change is delivered by Borrower to Lender on or before
the date that is five (5) Business Days prior to the repayment date set forth in the notice of prepayment and Borrower pays any
reasonable actual third-party costs and expenses incurred by Lender in connection with such revocation.
(c) After
the Permitted Prepayment Date, Borrower may, at its option and upon thirty (30) days prior written notice to Lender, prepay the Debt
in part in connection with a Debt Yield Cure – Partial Prepayment or a prepayment pursuant to Section 6.4(b)(i)(C) hereof,
provided that (i) no Event of Default then exists, (ii) Borrower submits the notice to Lender described in Section 2.3.1(b)(ii) above
to Lender setting forth the Prepayment Date, which date shall be no less than thirty (30) days from the date of such notice, (iii) Borrower
pays to Lender (A) the amount described in the definition of “Debt Yield Cure – Partial Prepayment” in Article I
hereof, or the amount needed to achieve the Debt Service Coverage Ratio required by Section 6.4(b)(i)(C) (as applicable), (B) all
interest accrued and unpaid on the principal balance of the Note being prepaid, including the date of prepayment, (C) all other
sums due under the Note, this Agreement and the other Loan Documents, (D) if such prepayment occurs prior to the Permitted Par Prepayment
Date, the Yield Maintenance Premium applicable to the amount being prepaid, and (E) if such prepayment is not paid on a regularly
scheduled Payment Date, interest for the full Accrual Period during which the prepayment occurs, notwithstanding that such Accrual Period
extends beyond the date of prepayment. If a notice of prepayment is given by Borrower to Lender pursuant to this Section 2.3.1,
the amount designated for prepayment and all other sums required under this Section 2.3.1 shall be due and payable on the
Prepayment Date. A notice of prepayment may be revoked by Borrower or Borrower may change the repayment date if written notice of such
revocation or change is delivered by Borrower to Lender on or before the date that is five (5) Business Days prior to the repayment
date set forth in the notice of prepayment and Borrower pays any reasonable actual third-party costs and expenses incurred by Lender
in connection with such revocation. Notwithstanding the foregoing, Borrower shall also have the right to prepay the Debt in part in accordance
with Section 2.5.2 hereof.
(d) In
addition to Borrower’s right to prepay pursuant to Section 2.3.1(b) and (c) above and Section 2.5.2
below, Borrower shall also have the right to voluntarily defease the Loan pursuant to Section 2.4 and Section 2.5.2
hereof.
(e) For
the avoidance of doubt, prepayments during an Event of Default are subject to the terms and conditions set forth in Section 2.3.3
hereof.
2.3.2 Mandatory
Prepayments. On each date on which Borrower actually receives any Net Proceeds, if and to
the extent Lender is not obligated (and does not elect) to make such Net Proceeds available to Borrower for the Restoration of the Property,
Borrower shall prepay the outstanding principal balance of the Note together with all interest which would have accrued on the amount
of the Loan through and including the last day of the Accrual Period related to the Payment Date next occurring following the date of
such prepayment (or, if such prepayment occurs on a Payment Date, through and including the last day of the Accrual Period related to
such Payment Date) in an amount equal to one hundred percent (100%) of such Net Proceeds. No Yield Maintenance Premium shall be due in
connection with any prepayment made pursuant to this Section 2.3.2.
2.3.3 Prepayment
During Existence of Event of Default. Except in connection with a repayment pursuant to
Section 2.3.2 or Section 2.5.2 hereof, if, during the continuance of an Event of Default, Borrower tenders payment
of all or any part of the Debt, or if all or any portion of the Debt is recovered by Lender after such Event of Default, Borrower shall
pay, in addition to the Debt, (i) the Yield Maintenance Default Premium if such tender or recovery occurs on or prior to the Permitted
Prepayment Date, or the Yield Maintenance Premium if such tender or recovery occurs after the Permitted Prepayment Date and prior to
the Permitted Par Prepayment Date, (ii) all accrued and unpaid interest on the amount of principal being prepaid through and including
the date of prepayment, together with an amount equal to the interest that would have accrued at the Default Rate through and including
the end of the Accrual Period in which such prepayment occurs, notwithstanding that such Accrual Period extends beyond the date of prepayment
and (iii) all other sums due and payable under the Loan Documents.
2.3.4 Making
of Payments. Each payment by Borrower hereunder or under the Note shall be made in funds
settled through the New York Clearing House Interbank Payments System or other funds immediately available to Lender by 4:00 p.m., New
York City time, on or prior to the date such payment is due, to Lender by deposit to such account as Lender may designate by written
notice to Borrower. Whenever any payment hereunder or under the Note shall be stated to be due on a day which is not a Business Day,
such payment shall be made on the first Business Day preceding such scheduled due date.
2.3.5 Application
of Principal Prepayments. All voluntary and involuntary prepayments on the Debt shall be
applied, to the extent thereof, to accrued but unpaid interest on the amount prepaid, to the Outstanding Principal Balance, and any other
sums due and unpaid to the Lender in connection with the Loan, in such order. During the continuance of an Event of Default, any payment
made on the Debt shall be applied to accrued but unpaid interest, late charges, accrued fees, the unpaid principal amount of the Debt,
and any other sums due and unpaid to Lender in connection with the Loan, in such manner and order as Lender may elect in its sole and
absolute discretion.
Section 2.4 Defeasance.
2.4.1 Voluntary
Defeasance.
(a) Provided
no Event of Default shall then exist (other than an Event of Default that will be cured by such defeasance in accordance with Section 2.5.2
hereof, and provided that Lender has not applied for the appointment of a receiver, declared the entire unpaid Debt to be immediately
due and payable or commenced a foreclosure action), Borrower shall have the right at any time after the Permitted Defeasance Date to
voluntarily defease all of the Loan, or a portion thereof in connection with a release of one or more Individual Properties pursuant
to Section 2.5.2 hereof, by and upon satisfaction of the following conditions (such event being a “Total Defeasance
Event” with respect to the defeasance of the entire Loan and a “Partial Defeasance Event” with respect to
a defeasance of only a portion of the Loan in connection with the release of an Individual Property pursuant to Section 2.5.2
hereof):
(i) Borrower
shall provide not less than fifteen (15) (but not more than ninety (90)) days prior written notice to Lender specifying the Business
Day on which the defeasance will occur (with respect to a Total Defeasance Event such date being the “Total Defeasance Date”
and with respect to a Partial Defeasance Event, such date being the “Partial Defeasance Date”), provided, however,
that Borrower shall have the right to cancel such notice by providing Lender with notice of cancellation not less than five (5) Business
Days prior to the scheduled Total Defeasance Date or Partial Defeasance Date, as appliable, provided that Borrower shall pay all of Lender’s
reasonable costs and expenses incurred as a result of such cancellation;
(ii) If
the Defeasance Date is not a Payment Date, then Borrower shall pay to Lender the Monthly Debt Service Payment Amount due on the Payment
Date next following the Defeasance Date (the “Post Defeasance Payment Date”);
(iii) Borrower
shall pay to Lender all other sums, not including scheduled interest or principal payments, then due under the Note, this Agreement,
the Security Instrument, and the other Loan Documents;
(iv) Borrower
shall deliver to Lender the Defeasance Deposit applicable to the Defeasance Event;
(v) In
connection with a Partial Defeasance Event, Borrower shall cooperate and execute all necessary documents to modify this Agreement and
to amend and restate the Note and issue two (2) substitute notes (or, if there is more than one note prior to such Partial Defeasance
Event, such number of notes required to split all such notes, and the splitting of such notes shall be pro rata), one (1) note having
a principal balance equal to the defeased portion of the original Note and a maturity date equal to the Maturity Date (the “Defeased
Note”), which Defeased Note shall set forth that portion of the Monthly Debt Service Payment Amount that shall be due thereunder
on each Payment Date, and the other note having a principal balance equal to the undefeased portion of the Note (the “Undefeased
Note”), which Undefeased Note shall set forth that portion of the Monthly Debt Service Payment Amount due thereunder on each
Payment Date and which together with the Defeased Note(s) shall total the Monthly Debt Service Payment Amount due on each Payment
Date. The Defeased Note and Undefeased Note shall otherwise have terms identical to the Note, except that a Defeased Note cannot be the
subject of any further Defeasance Event;
(vi) Borrower
shall execute and deliver a security agreement, in a form and substance that would be reasonably satisfactory to a prudent institutional
lender, creating a first priority lien on the Defeasance Deposit and the Defeasance Collateral purchased with the Defeasance Deposit
in accordance with the provisions of this Section 2.4 (the “Security Agreement”);
(vii) Borrower
shall deliver an opinion of counsel for Borrower in a form and substance that would be reasonably satisfactory to a prudent institutional
lender stating, among other things, that Borrower has legally and validly transferred and assigned the Defeasance Collateral and all
obligations, rights and duties under and to the Note (or the Defeased Note, as applicable) to the Successor Borrower, that Lender has
a perfected first priority security interest in the Defeasance Deposit and the Defeasance Collateral delivered by Borrower and that any
REMIC Trust formed pursuant to a Securitization will not fail to maintain its status as a “real estate mortgage investment conduit”
within the meaning of Section 860D of the Code as a result of such Defeasance Event;
(viii) if
a Securitization has occurred, (A) Borrower shall deliver confirmation in writing from the applicable Rating Agencies to the effect
that such defeasance and release will not result in a downgrading or withdrawal or qualification of the respective ratings in effect
for the Securities immediately prior to such Defeasance Event, and (B) if required by the applicable Rating Agencies, Borrower shall
also deliver or cause to be delivered a non-consolidation opinion with respect to the Successor Borrower in form and substance reasonably
satisfactory to Lender and satisfactory to the applicable Rating Agencies;
(ix) Borrower
shall deliver an Officer’s Certificate certifying that the requirements set forth in this Section 2.4.1(a) have
been satisfied;
(x) Borrower
shall deliver a certificate of an Approved Accountant certifying that the Defeasance Collateral purchased with the Defeasance Deposit
generates monthly amounts equal to or greater than the Scheduled Defeasance Payments;
(xi) Borrower
shall deliver such other certificates, documents or instruments as Lender may reasonably request which are necessary to effectuate the
Defeasance Event; and
(xii) Borrower
shall pay all costs and expenses of Lender incurred in connection with the Defeasance Event, including, without limitation, (A) any
costs and expenses associated with the release of the Lien of the Security Instrument as provided in Section 2.5 hereof,
(B) Lender’s reasonable attorneys’ fees and expenses, (C) the costs and expenses of the Rating Agencies, (D) any
revenue, documentary stamp or intangible taxes or any other tax or charge due in connection with the transfer of the Note, or otherwise
required to accomplish the defeasance and (E) the costs and expenses incurred by Lender, Servicer and any trustee, including attorneys’
fees. Notwithstanding the foregoing or anything to the contrary in the Loan Documents, the defeasance fee charged by the Servicer, exclusive
of its actual out-of-pocket expenses, shall not exceed an aggregate amount of (1) $10,000 with respect to each Partial Defeasance
Event or (2) $25,000 with respect to any Total Defeasance Event.
(b) In
no event shall Lender have any obligation to notify Borrower that the Permitted Defeasance Date has occurred with respect to the Loan,
except that Lender shall notify Borrower whether or not the Permitted Defeasance Date has occurred with respect to the Loan after receiving
Borrower’s notice described in Section 2.4(a)(i) hereof; provided, however, that the failure of
Lender to so notify Borrower shall not impose any liability upon Lender or grant Borrower any right to defease the Loan on or prior to
the occurrence of the Permitted Defeasance Date.
(c) In
connection with each Defeasance Event, Borrower retains the right to direct the purchase of U.S. Obligations (the “Defeasance
Collateral”), subject to the prior written consent of Lender, such consent not to be unreasonably withheld, conditioned or
delayed, which provide payments on or prior to, but as close as possible to, all successive scheduled Payment Dates after the Post Defeasance
Payment Date upon which interest and (if applicable) principal payments are required under this Agreement and the Note or the Defeased
Note (as applicable), and in amounts equal to or more than the scheduled payments due on such Payment Dates under this Agreement and
the Note or the Defeased Note (as applicable) (including, without limitation, scheduled payments of principal (if any), interest, servicing
fees (if any), and any other amounts due under the Loan Documents on such Payment Dates) and assuming the Note or the Defeased Note (as
applicable) is repaid in full on the Permitted Par Prepayment Date (the “Scheduled Defeasance Payments”). Each of
the U.S. Obligations that are part of the Defeasance Collateral shall be duly endorsed by the holder thereof as directed by Lender or
accompanied by a written instrument of transfer in form and substance that would be satisfactory to a prudent institutional lender (including,
without limitation, such instruments as may be required by the depository institution holding such securities or by the issuer thereof,
as the case may be, to effectuate book entry transfers and pledges through the book entry facilities of such institution) in order to
perfect upon the delivery of the Defeasance Collateral a first priority security interest therein in favor of Lender in conformity with
all applicable state and federal laws governing the granting of such security interests. Borrower, pursuant to the Security Agreement
or other appropriate document, shall authorize and direct that the payments received from the Defeasance Collateral may be made directly
to the Cash Management Account (unless otherwise directed by Lender) and applied to satisfy the obligations of Borrower under the Note
or the Defeased Note (as applicable). Any portion of the Defeasance Deposit in excess of the amount necessary to purchase the Defeasance
Collateral required by this Section 2.4 and satisfy Borrower’s other obligations under this Section 2.4
and Section 2.5 hereof shall be remitted to Borrower.
2.4.2 Successor
Borrower. In connection with any Defeasance Event, Borrower shall establish or designate
a successor entity (the “Successor Borrower”) which shall be a single purpose bankruptcy remote entity (meeting the
requirements of Section 4.1.30 below, as applicable) with two (2) Independent Directors approved by Lender, and Borrower
shall transfer and assign all obligations, rights and duties under and to the Note or the Defeased Note (as applicable) together with
the pledged Defeasance Collateral to such Successor Borrower. Such Successor Borrower shall assume the obligations under the Note or
the Defeased Note (as applicable) and the Security Agreement and Borrower shall be relieved of its obligations under such documents and
the other Loan Documents, except with respect to those obligations which are expressly stated to survive. Borrower shall pay $1,000 to
any such Successor Borrower as consideration for assuming the obligations under the Note or the Defeased Note (as applicable) and the
Security Agreement. Notwithstanding anything in this Agreement to the contrary, no other assumption fee shall be payable upon a transfer
of the Note or the Defeased Note (as applicable) in accordance with this Section 2.4.2, but Borrower shall pay all costs
and expenses incurred by Lender, including Lender’s reasonable attorneys’ fees and expenses, actually incurred in connection
therewith.
Section 2.5 Release
of Property. Except as set forth in Section 2.4 hereof and this Section 2.5 (and without limiting the
terms of the next sentence), no repayment, prepayment or defeasance of all or any portion of the Loan shall cause, give rise to a right
to require, or otherwise result in, the release of the Lien of the Security Instrument on the Property. Lender shall, upon the written
request and at the expense of Borrower, upon payment in full of the Debt and all other amounts due and payable under the Loan Documents
in accordance with the terms and provisions of the Note and this Agreement, release the Lien of the Security Instrument.
2.5.1 Release
of All Property.
(a) After
the Permitted Defeasance Date, if Borrower has elected to defease the entire Loan, and after the Permitted Prepayment Date, if Borrower
has elected to prepay the entire Loan, and all the applicable requirements of Section 2.4 hereof and this Section 2.5
have been satisfied, all of the Property shall be released from the Lien of the respective Security Instruments.
(b) In
connection with the release of the Security Instruments, Borrower shall submit to Lender, not less than ten (10) Business Days prior
to the Defeasance Date or prepayment date (as applicable), a release of Lien (and related Loan Documents) for each Individual Property
for execution by Lender. Each such release shall be in a form appropriate in the jurisdiction in which the Individual Property is located
and that would be satisfactory to a prudent lender and contains standard provisions, if any, protecting the rights of the releasing lender.
In addition, Borrower shall provide all other documentation Lender reasonably requires to be delivered by Borrower in connection with
such release. Borrower shall reimburse Lender and Servicer for any reasonable out-of-pocket costs and expenses Lender and Servicer incur
arising from such release (including reasonable out-of-pocket attorneys’ fees and expenses) and Borrower shall pay, in connection
with such release, all recording charges, filing fees, taxes or other reasonable expenses payable in connection therewith.
(c) Lender
shall, upon the written request and at the expense of Borrower, upon payment in full of the Debt (or upon the occurrence of a Total Defeasance
Event) in accordance with the terms and provisions of the Note and this Agreement, in lieu of applying monies as a full repayment of
the Debt, and in lieu of releasing the Lien of the Security Instrument and the other Loan Documents, in consideration of an amount equal
to that necessary for a full repayment of the Debt in accordance with the terms and provisions of the Note and this Agreement, endorse
the Note, and assign the Security Instrument and the other Loan Documents (if the same is so requested), without representation or warranty
by or recourse to Lender (other than representations relating to due execution and authority), to a lender designated by Borrower, and
Lender shall execute and deliver to Borrower or such lender such instruments and other documents as shall be reasonably necessary, in
compliance with all applicable laws, to evidence any such assignment of the Security Instrument and the Loan (including, if applicable,
any of the note splitter agreements, Assigned Loan Documents and other documents referenced in Section 2.5.2(n) hereof).
Borrower shall reimburse Lender and Servicer for any reasonable out of pocket costs and expenses Lender and Servicer incur arising from
such assignment (including reasonable out-of-pocket attorneys’ fees and expenses) and Borrower shall pay, in connection with such
assignment all recording charges, filing fees, taxes or other reasonable expenses in connection with therewith.
2.5.2 Release
of Individual Property. No release of an Individual Property shall occur on or prior to
the Permitted Prepayment Date (or prior to the date that is ninety (90) days following the Permitted Prepayment Date, if Lender delivers
a written notice to Borrower on or prior to the Permitted Prepayment Date stating that a Securitization is imminently pending). Thereafter,
Borrower shall have the right at any time to obtain the release (the “Partial Release”) of any one or more of the
Individual Properties (individually and collectively, as the context requires, the “Released Property”) from the lien
of the applicable Security Instrument thereon (and related Loan Documents) and the release of Borrower’s obligations under the
Loan Documents with respect to such Released Property (other than those expressly stated to survive), upon the satisfaction (or written
waiver by Lender or Servicer) of each of the following conditions precedent:
(a) Borrower
shall provide Lender with fifteen (15) days (or a shorter period of time if permitted by Lender in its sole discretion) prior written
notice of the proposed Partial Release (the date of Lender’s receipt of such notice shall be referred to herein as a “Partial
Release Notice Date,” and the proposed date of such Partial Release the “Partial Release Date”).
(b) Any
and all sums due and payable to Lender under the Loan Documents on each of the Partial Release Notice Date and the date of consummation
of the Partial Release, shall be fully paid and no Event of Default (other than an Event of Default which applies only to the Released
Property and Lender has determined in its reasonable discretion that such Partial Release will result in a cure of such Event of Default)
shall be continuing as of the Partial Release Notice Date or the date of consummation of the Partial Release.
(c) Borrower
shall have paid or reimbursed Lender for all out-of-pocket expenses reasonably incurred by Lender in connection with the Partial Release
(including without limitation, reasonable out-of-pocket attorneys’ fees, recording costs, Rating Agency fees and the current fee
then being assessed by Servicer to all similarly situated borrowers to effect such release).
(d) Borrower
shall submit to Lender, not less than ten (10) days prior to the date of such Partial Release, a release of lien (and related Loan
Documents) for the Released Property for execution by Lender. Such release shall be in a form appropriate in each jurisdiction in which
the Released Property is located and shall contain standard provisions, if any, protecting the rights of Lender. In addition, Borrower
shall provide all other documentation as may reasonably be required to satisfy the Prudent Lender Standard in connection with such release,
together with an Officer’s Certificate certifying that such documentation (i) is in compliance with all applicable Legal Requirements,
(ii) will effect such release in accordance with the terms of this Agreement and (iii) will not impair or otherwise adversely
affect the Liens, security interests and other rights of Lender under the Loan Documents not being released (or as to the parties to
the Loan Documents and Individual Properties subject to the Loan Documents not being released).
(e) To
the extent there is one Clearing Account in the name of one Borrower utilized for all of the Property (rather than a separate Clearing
Account for each Individual Property), and such Borrower is released from the obligations of the Loan Documents pursuant to this Section 2.5.2,
then the name of the Clearing Account shall be changed to the name of a different Borrower.
(f) Subsequent
to such release, each remaining Borrower shall continue to be a Special Purpose Entity pursuant to, and in accordance with, Section 4.1.30
hereof.
(g) [Intentionally
omitted].
(h) Borrower
shall provide updated title reports for the remaining Individual Properties confirming no change in the priority of each of the unreleased
Security Instruments on such remaining Individual Properties.
(i) If
required under the operative documents with respect to any Securitization, Lender shall have received evidence in writing from any applicable
Rating Agency to the effect that the proposed Partial Release will not result in a qualification, reduction, downgrade or withdrawal
of any rating initially assigned or to be assigned in such Securitization, or a waiver from any such rating agency stating that it has
declined to review the Partial Release.
(j) If
a Securitization has occurred, the Partial Release shall be permitted under REMIC Requirements in effect as of the consummation of the
Partial Release, and, if reasonably required by Lender to confirm the same, Borrower shall (i) deliver to Lender opinions of counsel
satisfying the Prudent Lender Standard (including an Additional Insolvency Opinion) and acceptable to the Rating Agencies (issued by
counsel satisfying the Prudent Lender Standard and acceptable to the Rating Agencies) (1) stating that the Partial Release will
not cause (A) the Loan to cease to be a “qualified mortgage” within the meaning of Section 860G of the Code, either
under the provisions of Treasury Regulation Sections 1.860G-2(a)(8) or 1.860G-2(b) (as such regulations may be amended or superseded
from time to time) or under any other provision of the Code or otherwise, and (B) the failure of any REMIC Trust or any other entity
that holds the Note to maintain its tax status and (2) with respect to such other matters as may be required by Lender and (ii) pay
all of Lender’s reasonable out-of-pocket costs and expenses and the costs and expenses of the Rating Agencies in connection with
the Partial Release, including, without limitation, reasonable out-of-pocket costs counsel fees.
(k) As
of the date of consummation of the Partial Release, after giving effect to the release of the lien of the Security Instrument(s) encumbering
the applicable Released Property: (i) if seventy percent (70%) or more of the aggregate rentable square footage of such Released
Property is occupied by Tenants as of the Partial Release Date, then the Debt Service Coverage Ratio with respect to the remaining Individual
Properties (based upon the trailing twelve (12) month period) shall be no less than the greater of (A) the Debt Service Coverage
Ratio as of the Closing Date and (B) the Debt Service Coverage Ratio immediately prior to the consummation of the Partial Release;
or (ii) if less than seventy percent (70%) of the aggregate rentable square footage of such Released Property is occupied by Tenants
as of the Partial Release Date, then the Debt Service Coverage Ratio with respect to the remaining Individual Properties (based upon
the trailing twelve (12) month period) shall be no less than the Debt Service Coverage Ratio immediately prior to the consummation of
the Partial Release; provided, however, that Borrower will have the right to satisfy the foregoing applicable test in this
Section 2.5.2(k) by prepaying, in accordance with the requirements of Section 2.3.1 hereof and in addition
to the Adjusted Release Amount payable pursuant to Section 2.5.2(m) below, an additional portion of the outstanding
principal balance of the Loan in an amount sufficient, when applied to the outstanding principal balance of the Loan, to cause such applicable
Debt Service Coverage Ratio test to be satisfied.
(l) As
of the date of consummation of the Partial Release, after giving effect to the release of the lien of the Security Instrument(s) encumbering
the applicable Released Property: (i) if seventy percent (70%) or more of the aggregate rentable square footage of such Released
Property is occupied by Tenants as of the Partial Release Date, then the Debt Yield with respect to the remaining Individual Properties
(based upon the trailing twelve (12) month period) shall be no less than the greater of (A) the Debt Yield as of the Closing Date
and (B) the Debt Yield immediately prior to the consummation of the Partial Release; or (ii) if less than seventy percent (70%)
of the aggregate rentable square footage of such Released Property is occupied by Tenants as of the Partial Release Date, then the Debt
Yield with respect to the remaining Individual Properties (based upon the trailing twelve (12) month period) shall be no less than the
Debt Yield immediately prior to the consummation of the Partial Release; provided, however, that Borrower will have the
right to satisfy the foregoing applicable test in this Section 2.5.2(l) by prepaying, in accordance with the requirements
of Section 2.3.1 hereof and in addition to the Adjusted Release Amount payable pursuant to Section 2.5.2(m) below,
an additional portion of the outstanding principal balance of the Loan in an amount sufficient, when applied to the outstanding principal
balance of the Loan, to cause such applicable Debt Yield test to be satisfied.
(m) Borrower
shall either, (i) provided the Partial Release Date is after the Permitted Defeasance Date, have satisfied all of the requirements
of Section 2.4 (or Lender shall have waived any such requirements in writing) hereof for a Partial Defeasance Event and partially
defease the Loan in an amount equal to or greater than the Adjusted Release Amount for the applicable Individual Property, and such defeasance
shall be deemed a voluntary defeasance for all purposes hereunder, or (ii) have paid to Lender the Adjusted Release Amount for the
applicable Individual Property together with the Individual Property Release Yield Maintenance Premium and all other amounts payable
in connection with such voluntary prepayment due hereunder, including without limitation that if the Adjusted Release Amount is not paid
on a regularly scheduled Payment Date, Borrower shall pay interest on the entire principal balance of the Loan for the full Accrual Period
during which payment of the Adjusted Release Amount occurs. Any portion of the Adjusted Release Amount applied to the principal amount
of the Debt shall be applied first, to reduce the Allocated Loan Amount attributable to the Released Property to zero and second, pro
rata to reduce the Allocated Loan Amounts of each of the other remaining Individual Properties. Notwithstanding the foregoing, in the
event that Lender has applied the Net Proceeds from a Casualty or Condemnation of an Individual Property to the repayment of the Debt
and a Partial Release of such Individual Property is thereafter completed, (1) the Adjusted Release Amount for such Individual Property
shall be reduced by the amount of such Net Proceeds so applied, and (2) no Yield Maintenance Premium or similar sum shall be due
in connection therewith.
(n) If,
in connection with a Partial Release effectuated by a partial prepayment (and not a Partial Defeasance Event), Borrower advises Lender
that it desires Lender to assign the applicable Security Instrument and other Loan Documents (collectively, the “Assigned Loan
Documents”) encumbering the Released Properties that are the subject of a Partial Release (collectively, the “Assigned
Properties”) to a Person designated by Borrower (the “Partial Assignee Lender”), then Lender shall (a) cooperate
in all reasonable respects with Borrower (i) to split and sever each promissory note constituting the Note into two Notes, with
one such Note (each, a “Remaining Note”) continuing to evidence the portion of the Loan secured by the Individual
Properties that are not Assigned Properties (collectively, the “Remaining Properties”), and the other such Note (each,
an “Assigned Note”) securing the portion of the Loan to be secured by the Assigned Properties, and (ii) to assign
the Assigned Note and the Assigned Loan Documents to the Partial Assignee Lender, with assignments of the recorded Assigned Loan Documents
in recordable form and otherwise in form and substance reasonably acceptable to Lender and the Partial Assignee Lender, (b) deliver
to the Partial Assignee Lender or as directed by Borrower the originally executed Assigned Note, (c) execute and deliver to the
Partial Assignee Lender or as directed by Borrower, (i) an allonge with respect to the Assigned Note, (ii) executed assignments
of the recorded Assigned Loan Documents (and the original applicable Assigned Loan Documents or a certified copy of record to the assignee
thereof), and (iii) such other instruments of conveyance, assignment, termination, severance and release (including appropriate
UCC-3 termination statements and terminations of rent direction notices to Tenants and other third parties), all in recordable form as
may reasonably be requested by Borrower to evidence such assignment; provided, however, that such assignment shall be made without representation,
warranty or covenant by Lender (other than that Lender is the lawful owner of such Assigned Note and the Assigned Loan Documents, and
Lender has the power to assign the same and the outstanding principal balance thereof). In connection with any assignment effected in
accordance with this paragraph, Borrower shall deliver such documents and agreements as may be reasonably required by Lender.
(o) Borrower
shall deliver to Lender such additional information and documentation with respect to such Partial Release as Lender may reasonably request
and shall deliver or take, as the case may be, any other documents, items or actions reasonably requested by Lender in connection with
such release; provided, however, no such documents or actions shall increase Borrower’s liability or decrease Borrower’s
rights under the Loan Documents, other than to a de minimis extent.
(p) Notwithstanding
the foregoing provisions of this Section 2.5.2, if the Loan is included in a REMIC Trust and the Loan to Value Ratio (as
determined by Lender in its sole discretion using any commercially reasonable method permitted to a REMIC Trust and excluding the value
of personal property and going concern value) exceeds 125% immediately after the release of the applicable Individual Property, no release
will be permitted unless the principal balance of the Loan is paid down by the greater of (i) the Adjusted Release Amount and (ii) an
amount such that the Loan to Value Ratio (as so determined by Lender) after the release of the applicable Individual Property is not
greater than 125% immediately after the release of the applicable Individual Property, unless Lender receives an opinion of counsel that,
if this clause (ii) is not followed, the Securitization will not fail to maintain its status as a REMIC Trust as a result of the
release of the applicable Individual Property.
Notwithstanding anything
to the contrary contained in this Section 2.5.2, the parties hereto hereby acknowledge and agree that after the Securitization
of the Loan (or any portion thereof or interest therein), with respect to any Lender approval or similar discretionary rights over any
matters contained in this Section 2.5.2, such rights shall be construed such that Lender shall only be permitted to withhold
its consent or approval with respect to any such matters if the same fails to meet the Prudent Lender Standard.
Section 2.6 Clearing
Account/Cash Management.
2.6.1 Clearing
Account.
(a) During
the term of the Loan, Borrower shall establish and maintain an Eligible Account (the “Clearing Account”) with Clearing
Bank for the benefit of Lender, which Clearing Account shall be under the sole dominion and control of Lender. Subject to Section 2.5.2(e),
the Clearing Account shall be entitled in the name of ARC LCROWTX001, LLC Et. Al. for the benefit of Lender. Borrower hereby grants to
Lender a first-priority security interest in the Clearing Account and all deposits at any time contained therein and the proceeds thereof
and shall take all actions reasonably necessary to maintain in favor of Lender a perfected first priority security interest in the Clearing
Account, including (at Lender’s request) filing UCC-1 Financing Statements and continuations thereof. Lender and Servicer shall
have the sole right to make withdrawals from the Clearing Account. All actual, reasonable costs and expenses for establishing and maintaining
the Clearing Account shall be paid by Borrower. All monies on deposit in the Clearing Account shall be deemed additional security for
the Debt. The Clearing Account Agreement and Clearing Account shall remain in effect until the Loan has been repaid in full.
(b) Borrower
shall, or shall cause Manager to, (i) within ten (10) days of the Closing Date with respect to Leases in existence on the date
hereof and (ii) simultaneously with the execution of any Lease entered into after the date hereof, deliver Tenant Direction Letters
to all Tenants, directing such Tenants to deliver all Rents payable under their respective Leases directly to the Clearing Account. Without
the prior written consent of Lender (except in connection with the delivery to Tenants of a Released Property following satisfaction
of the conditions set forth in Section 2.5.2 with respect to such Released Property), neither Borrower nor Manager shall
(i) terminate, amend, revoke or modify any Tenant Direction Letter in any manner or (ii) direct or cause any Tenant to pay
any amount in any manner other than as provided in the Tenant Direction Letter. Borrower shall, and shall cause Manager to, deposit all
amounts received by Borrower or Manager constituting Rents into the Clearing Account within one (1) Business Day after receipt thereof.
Until so deposited, all Rents received by Borrower or Manager shall be held in trust for the benefit of Lender and shall not be commingled
with any other funds or property of Borrower or Manager. Notwithstanding the foregoing terms of this Section 2.6.1 or anything
to the contrary in the other Loan Documents (including the Cash Management Agreement), and without limiting Borrower’s obligation
to cause all amounts received by Borrower or Manager constituting Rents to be deposited into the Clearing Account within one (1) Business
Day after receipt thereof, Borrower shall not be required to send Tenant Direction Letters to the Tenants that use VersaPay to pay their
Rent, provided that Borrower shall (using VersaPay) direct all such Rent to the Clearing Account.
(c) The
Clearing Account Agreement shall provide that Clearing Bank shall transfer on each Business Day all amounts on deposit in the Clearing
Account at the direction of Borrower (including a transfer to Borrower) unless a Cash Sweep Period is in effect, in which case such funds
shall be transferred to the Cash Management Account.
(d) During
the continuance of an Event of Default or any Bankruptcy Action of Borrower, Lender may, in addition to any and all other rights and
remedies available to Lender, apply any sums then present in the Clearing Account to the payment of the Debt in any order in its discretion.
Upon cessation (or waiver) of such Event of Default or Bankruptcy Action, all such funds (to the extent same have not been applied to
the Debt) shall be returned to the Clearing Account.
(e) The
Clearing Account shall not be commingled with other monies held by Borrower, Manager or Clearing Bank.
(f) Borrower
shall not further pledge, assign or grant any security interest in the Clearing Account or the monies deposited therein or permit any
lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those naming Lender
as the secured party, to be filed with respect thereto.
(g) Borrower
shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, and demands, and actual out-of-pocket
liabilities, losses, damages (excluding, consequential, punitive, special, exemplary and indirect damages, except to the extent such
damages are actually paid or payable to a third-party), obligations and reasonable, actual costs and expenses (including litigation costs
and reasonable out-of-pocket attorneys’ fees and expenses) arising from or in any way connected with the Clearing Account or the
Clearing Account Agreement (unless arising from the gross negligence, fraud or willful misconduct of Lender).
(h) Upon
(i) Clearing Bank ceasing to be an Eligible Institution or, with respect to KeyBank, if KeyBank is downgraded below BBB by S&P
or the equivalent by another Rating Agency, (ii) the Clearing Account ceasing to be an Eligible Account, (iii) any resignation
by Clearing Bank or termination of the Clearing Account Agreement in accordance with the terms and conditions thereof or (iv) the
occurrence and continuance of an Event of Default, Borrower shall, within fifteen (15) days of Lender’s written request, (A) terminate
the existing Clearing Account Agreement, (B) appoint a new Clearing Bank (which such Clearing Bank shall (I) be an Eligible
Institution, (II) other than during the continuance of an Event of Default, be selected by Borrower and approved by Lender and (III) during
the continuance of an Event of Default, be selected by Lender), (C) cause such Clearing Bank to open a new Clearing Account (which
such account shall be an Eligible Account) and enter into a new Clearing Account Agreement with Lender on substantially the same terms
and conditions as the previous Clearing Account Agreement and (D) send any notices required pursuant to the terms hereof relating
to such new Clearing Account Agreement and Clearing Account and new Tenant Direction Letters.
2.6.2 Cash
Management Account.
(a) Upon
the occurrence of a Cash Sweep Event, a segregated Eligible Account (the “Cash Management Account”) shall be established
and maintained with Agent in Borrower’s name for the benefit of Lender, which Cash Management Account shall be under the sole dominion
and control of Lender. Borrower hereby grants to Lender a first priority security interest in the Cash Management Account and all deposits
at any time contained therein and the proceeds thereof and shall take all actions necessary to maintain in favor of Lender a perfected
first priority security interest in the Cash Management Account, including, at Lender’s request, filing UCC-1 Financing Statements
and continuations thereof. Lender and Servicer shall have the sole right to make withdrawals from the Cash Management Account and all
reasonable costs and expenses for establishing and maintaining the Cash Management Account shall be paid by Borrower.
(b) The
insufficiency of funds on deposit in the Cash Management Account shall not relieve Borrower from the obligation to make any payments,
as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and
not conditioned on any event or circumstance whatsoever.
(c) All
funds on deposit in the Cash Management Account during the continuance of an Event of Default or any Bankruptcy Action of Borrower may
be applied by Lender in such order and priority as Lender shall determine. Upon cessation (or waiver) of such Event of Default or Bankruptcy
Action, all such funds (to the extent same have not been applied to the Debt) shall be returned to the Clearing Account.
(d) Borrower
hereby agrees that Lender may, at no cost or expense of Borrower, modify the Cash Management Agreement for the sole purpose of establishing
additional sub-accounts in connection with any payments otherwise required under this Agreement and the other Loan Documents and Lender
shall provide notice thereof to Borrower.
2.6.3 Payments
Received under the Cash Management Agreement. Notwithstanding anything to the contrary contained
in this Agreement or the other Loan Documents, and provided no Event of Default has occurred and is continuing, during a Cash Sweep Period,
Borrower’s obligations with respect to the payment of the Monthly Debt Service Payment Amount and amounts required to be deposited
into the Reserve Funds, if any, shall be deemed satisfied to the extent sufficient amounts are deposited in the Cash Management Account
to satisfy such obligations pursuant to this Agreement on the dates each such payment is required, regardless of whether any of such
amounts are so applied by Lender.
ARTICLE III. INTENTIONALLY OMITTED
ARTICLE IV. REPRESENTATIONS AND WARRANTIES
Section 4.1 Borrower
Representations. Borrower (as to itself and not as to all Borrowers, as the context may require) represents and warrants as of
the date hereof that:
4.1.1 Organization.
Each Borrower has been duly organized and is validly existing and in good standing with requisite power and authority to own the applicable
Individual Property and to transact the businesses in which it is now engaged. Borrower is duly qualified to do business and is in good
standing in the jurisdiction in which the applicable Individual Property is located and each other jurisdiction where it is required
to be so qualified in connection with its businesses and operations. Borrower possesses all material rights, licenses, permits and authorizations,
governmental or otherwise, necessary to entitle it to own the applicable Individual Property and activities incidental thereto and to
transact the businesses in which it is now engaged, and the sole business of Borrower is the ownership, management and operation of the
applicable Individual Property. As of the Closing Date, direct and indirect ownership interests in Borrower are as set forth on the first
page of the organizational chart attached hereto as Schedule III, and as of the consummation of the Global Net Lease Merger,
direct and indirect ownership interests in Borrower shall be as set forth on the second page of the organizational chart attached
hereto as Schedule III. The direct and indirect ownership interests in Borrower or the Property do not include any Prohibited
Entity/Ownership Structure.
4.1.2 Proceedings.
Borrower has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents.
This Agreement and such other Loan Documents have been duly executed and delivered by or on behalf of Borrower and constitute legal,
valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, except as such enforcement
may be limited by (i) bankruptcy, insolvency, fraudulent transfer, reorganization or other similar laws affecting the enforcement
of creditors’ rights generally, and (ii) general principles of equity (regardless of whether enforcement is considered in
a proceeding in equity or at law).
4.1.3 No
Conflicts. The execution, delivery and performance of this Agreement and the other Loan
Documents by Borrower will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under,
or result in the creation or imposition of any lien, charge or encumbrance (other than pursuant to the Loan Documents) upon any of the
property or assets of Borrower pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, partnership agreement,
management agreement or other agreement or instrument to which Borrower is a party or by which any of the Property or Borrower’s
assets is subject, nor, to the best of Borrower’s knowledge, will such action result in any violation of the provisions of any
statute or any order, rule or regulation of any Governmental Authority having jurisdiction over Borrower or any of Borrower’s
properties or assets, and, to the best of Borrower’s knowledge, any consent, approval, authorization, order, registration or qualification
of or with any court or any such Governmental Authority required for the execution, delivery and performance by Borrower of this Agreement
or any other Loan Documents has been obtained and is in full force and effect.
4.1.4 Litigation.
There are no actions, suits or proceedings at law or in equity, arbitrations, or governmental investigations by or before any Governmental
Authority or other agency now pending, filed, or, to Borrower’s knowledge, threatened in writing against or affecting Borrower,
Guarantor or the Property or any portion thereof, which would reasonably be expected to materially and adversely affect (a) title
to the Property or any portion thereof; (b) the validity or enforceability of the Security Instruments; (c) Borrower’s
ability to perform under the Loan; (d) Guarantor’s ability to perform under the Guaranty; (e) the use, operation or value
of the Property or any portion thereof; (f) the principal benefit of the security intended to be provided by the Loan Documents;
(g) the current ability of the Property to generate Net Cash Flow sufficient to service the Loan; or (h) the current principal
use of the Property or any portion thereof.
4.1.5 Agreements.
Other than any exceptions reflected on the Title Insurance Policy, Borrower is not a party to any agreement or instrument or subject
to any restriction which would reasonably be expected to materially and adversely affect Borrower or the Property (or any portion thereof),
or Borrower’s business, properties or assets, operations or condition, financial or otherwise. Borrower is not in default in any
material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement
or instrument to which it is a party or by which Borrower or the Property (or any portion thereof) is bound. Borrower has no Indebtedness
under any indenture, mortgage, deed of trust, loan agreement or other written agreement or instrument to which Borrower is a party or
by which Borrower or the Property (or any portion thereof) is otherwise bound, other than (a) obligations incurred in the ordinary
course of Borrower’s business or the operation of the Property as permitted pursuant to clause (xxiii) of the definition
of “Special Purpose Entity” set forth in Section 1.1 hereof and (b) obligations under the Loan Documents.
4.1.6 Title.
Borrower has good and insurable fee simple title to the real property comprising part of the Property and good title to the balance of
the Property, free and clear of all Liens whatsoever except the Permitted Encumbrances, such other Liens as may be expressly permitted
pursuant to the Loan Documents and the Liens created by the Loan Documents. The Permitted Encumbrances in the aggregate do not materially
and adversely affect the value, operation or use of the Property (or any portion thereof) as currently used or Borrower’s ability
to repay the Loan. To the best of Borrower’s knowledge, each Security Instrument, when properly recorded in the appropriate records,
together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (a) a valid,
perfected first priority lien on the applicable Individual Property, subject only to Permitted Encumbrances and the Liens created by
the Loan Documents and (b) perfected security interests in and to, and perfected collateral assignments of, all personalty (including
the Leases), all in accordance with the terms thereof, in each case subject only to any applicable Permitted Encumbrances, such other
Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. To the best of Borrower’s knowledge,
are no claims for payment for work, labor or materials affecting the Property which are or may become a Lien prior to, or of equal priority
with, the Liens created by the Loan Documents.
4.1.7 Solvency.
Borrower has (a) not entered into this transaction or executed the Note, this Agreement or any other Loan Documents with the actual
intent to hinder, delay or defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under
such Loan Documents. Giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following
the making of the Loan, exceed Borrower’s total liabilities, including subordinated, unliquidated, disputed and contingent liabilities.
The fair saleable value of Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s
probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and matured.
Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry
out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur debt
and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debt and liabilities as they
mature (taking into account the timing and amounts of cash to be received by Borrower and the amounts to be payable on or in respect
of obligations of Borrower). No petition in bankruptcy has been filed against Borrower or any Person Controlling Borrower in the last
seven (7) years, and neither Borrower nor any Person Controlling Borrower in the last seven (7) years has ever made an assignment
for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any of its Persons
Controlling Borrower are contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws
or the liquidation of all or a major portion of Borrower’s assets or property, and Borrower has no knowledge of any Person contemplating
the filing of any such petition against it or such constituent Persons.
4.1.8 Full
and Accurate Disclosure. No statement of fact made by Borrower in this Agreement or in any
of the other Loan Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make statements
contained herein or therein not misleading. There is no material fact presently known to Borrower which has not been disclosed to Lender
which materially and adversely affects, or, based on Borrower’s reasonable determination, would reasonably be expected to materially
and adversely affect, the Property or the business, operations or condition (financial or otherwise) of Borrower (provided that the foregoing
is meant to relate specifically to Borrower and the Property and not, by way of example only, to the economy of the United States or
the location of the Property or the medical profession).
4.1.9 No
Plan Assets. Borrower does not sponsor, is not obligated to contribute to, and is not itself
an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA or Section 4975
of the Code, and none of the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans within
the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. In addition, (a) Borrower is not a
“governmental plan” within the meaning of Section 3(32) of ERISA and (b) transactions by or with Borrower are not
subject to any state or other statute, regulation or other restriction regulating investments of, or fiduciary obligations with respect
to, governmental plans within the meaning of Section 3(32) of ERISA which is similar to the provisions of Section 406 of ERISA
or Section 4975 of the Code which, as of the date hereof, prohibit or otherwise restrict the transactions contemplated by this Agreement,
including the exercise by Lender of any of its rights under the Loan Documents.
4.1.10 Compliance.
Except as disclosed in the separate zoning report for each Individual Property delivered to Lender in connection with the closing of
the Loan, to the best of Borrower’s knowledge, Borrower and each Individual Property and the use thereof comply in all material
respects with all applicable Legal Requirements, including building and zoning ordinances and codes. Borrower is not in default or violation
of any order, writ, injunction, decree or demand of any Governmental Authority. There has not been committed by Borrower or, to Borrower’s
knowledge, any other Person in occupancy of or involved with the operation or use of the Property any act or omission affording the federal
government or any other Governmental Authority the right of forfeiture as against the Property or any part thereof or any monies paid
in performance of Borrower’s obligations under any of the Loan Documents. Except as disclosed in the separate property condition
report for each Individual Property delivered to Lender in connection with the closing of the Loan, the Improvements at each Individual
Property were in material compliance with applicable law on the Closing Date.
4.1.11 Financial
Information. All financial data, including the statements of cash flow and income and operating
expense, that have been delivered to Lender in connection with the Loan (a) are true, complete and correct in all material respects,
(b) except for financial data with respect to dates prior to the date Borrower acquired title to the applicable Individual Property,
accurately represent the financial condition of Borrower and the Property, as applicable, as of the date of such reports, and (c) to
the extent prepared or audited by an independent certified public accounting firm, have been prepared in accordance with GAAP throughout
the periods covered, except as disclosed therein. Except for Permitted Encumbrances, Borrower does not have any contingent liabilities,
liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments
that are known to Borrower and reasonably likely to have a material adverse effect on the Property (or any portion thereof) or the current
operation thereof, except as referred to or reflected in said financial statements. Since the date of such financial statements, there
has been no material adverse change in the financial condition, operations or business of Borrower from that set forth in said financial
statements.
4.1.12 Condemnation.
Except as disclosed in the separate zoning report, title report or survey for each Individual Property delivered to Lender in connection
with the closing of the Loan, no Condemnation or other similar proceeding has been commenced or, to Borrower’s knowledge, is threatened
with respect to all or any portion of the Property or for the relocation of roadways providing access to any Individual Property.
4.1.13 Federal
Reserve Regulations. No part of the proceeds of the Loan will be used for the purpose of
purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve
System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors,
or for any purposes prohibited by Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents. None
of Borrower, Guarantor, and/or (to Borrower’s knowledge with respect to shareholders of the REIT) any Constituent Member of the
foregoing is affiliated with or is an insider with respect to Lender (or its affiliates) in any manner that implicates either Regulation
W or Regulation O of the Federal Reserve Act (as each of the same may be amended, modified, supplemented, and/or replaced from time to
time). To the best of Borrower’s knowledge, neither the Loan nor any transaction contemplated herein and/or in the other Loan Documents
is in violation of Regulation W and/or Regulation O. Borrower shall, from time to time, provide Lender with such information relating
to Borrower, Guarantor, and/or (to the extent Borrower has access to such information) any Constituent Member thereof as Lender shall
deem necessary (in Lender’s sole and absolute discretion) in determining Lender’s ongoing compliance with Regulation W and
Regulation O of the Federal Reserve Act (as each of the same may be amended, modified, supplemented, and/or replaced from time to time).
Notwithstanding anything to contrary contained herein, neither Borrower nor Guarantor shall take any action that will cause Lender and/or
the Loan to violate Regulation W and/or Regulation O.
4.1.14 Utilities
and Public Access. To the best of Borrower’s knowledge and except as otherwise disclosed
in the Title Insurance Policy and/or the Survey, each Individual Property has rights of access to public ways and is served by water,
sewer, sanitary sewer and storm drain facilities adequate to service the applicable Individual Property for its intended uses. To the
best of Borrower’s knowledge, all public utilities necessary or convenient to the full use and enjoyment of each Individual Property
are located either in the public right of way abutting the applicable Individual Property (which are connected so as to serve the applicable
Individual Property without passing over other property) or in recorded easements serving and appurtenant to the applicable Individual
Property. To the best of Borrower’s knowledge, all roads necessary for the use of each Individual Property for its current purposes
have been completed and dedicated to public use and accepted by all Governmental Authorities.
4.1.15 Not
a Foreign Person. Borrower is not a “foreign person” within the meaning of §1445(f)(3) of
the Code.
4.1.16 Separate
Lots. Each Individual Property is comprised of one (1) or more parcels which constitute
a separate tax lot or lots and does not constitute a portion of any other tax lot not a part of the applicable Individual Property.
4.1.17 Assessments.
To the best of Borrower’s knowledge and except as otherwise disclosed in the Title Insurance Policy and/or the Survey, there are
no pending or, to Borrower’s knowledge, proposed special or other assessments for public improvements, PACE Liens or otherwise
affecting the Property of any portion thereof, nor are there any contemplated improvements to the Property (or any portion thereof) that
would reasonably be expected to result in such special or other assessments.
4.1.18 Enforceability.
The Loan Documents are not subject to any right of rescission, set off, counterclaim or defense by Borrower or Guarantor, and neither
Borrower nor Guarantor has asserted any right of rescission, set off, counterclaim or defense with respect thereto.
4.1.19 No
Prior Assignment. There are no prior assignments of the Leases or any portion of the Rents
due and payable or to become due and payable which are presently outstanding.
4.1.20 Insurance.
No material claims have been made or are currently pending, outstanding or otherwise remain unsatisfied with respect to the Properties
under any of the Policies, and neither Borrower nor any other Person, has done, by act or omission, anything which would impair the coverage
of any of the Policies.
4.1.21 Use
of Property. Each Individual Property is used exclusively for retail purposes and other
appurtenant and related uses.
4.1.22 Certificate
of Occupancy; Licenses. To the best of Borrower’s knowledge, and except as shown on
the Survey or the zoning reports delivered to Lender in connection with the closing of the Loan, all certifications, permits, franchises,
licenses, consents, authorizations, and approvals, including, certificates of completion and occupancy permits, required for the legal
use, occupancy and operation of each Individual Property have been obtained and are in full force and effect. The use being made of each
Individual Property is in conformity with the certificate of occupancy issued for the applicable Individual Property.
4.1.23 Flood
Zone. To the best of Borrower’s knowledge, except as shown on the Survey, none of
the Improvements on the Property (or any portion thereof) are located in an area as identified by the Federal Emergency Management Agency
as an area having special flood hazards, or, if so located, the flood insurance required pursuant to Section 6.1(a) is
in full force and effect with respect to the applicable Individual Property.
4.1.24 Physical
Condition. Except as disclosed in the separate property condition report for each Individual
Property delivered to Lender in connection with the closing of the Loan, each Individual Property, including all buildings, Improvements,
parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems,
equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, is in good condition,
order and repair in all material respects; there exists no structural or other material defects or damages in the Property (or any portion
thereof), whether latent or otherwise, and Borrower has not received notice from any insurance company or bonding company of any defects
or inadequacies in the Property, or any part thereof, which would adversely affect the insurability of the same or cause the imposition
of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond.
4.1.25 Boundaries.
To the best of Borrower’s knowledge and except as shown on the Survey, all of the Improvements which constitute Property (or any
portion thereof) lie wholly within the boundaries and building restriction lines of the applicable Individual Property, and no improvements
on adjoining properties encroach upon the Property or any portion thereof, and no easements or other encumbrances upon the Property (or
any portion thereof) encroach upon any of the Improvements, so as to materially and adversely affect the value or marketability of the
Property (or any portion thereof) except those which are insured against by the applicable Title Insurance Policy.
4.1.26 Leases.
The Property is not subject to any leases other than the Leases described in the rent roll attached hereto as Schedule I and made
a part hereof, which rent roll is true, complete and accurate in all respects as of the Closing Date. Borrower is the owner and lessor
(or sublessor) of landlord’s interest in the Leases. Except with respect to the Permitted Encumbrances, no Person has any possessory
interest in the Property (or any portion thereof) or right to occupy the same except under and pursuant to the provisions of the Leases.
The current Leases are in full force and effect and, except as set forth on the rent roll attached hereto as Schedule I or in
any tenant estoppel certificate delivered to Lender, there are no uncured defaults thereunder by Borrower nor, to the best of Borrower’s
knowledge, any other party thereunder and, to the best of Borrower’s knowledge, there are no conditions that, with the passage
of time or the giving of notice, or both, would constitute defaults thereunder. Except as set forth in any tenant estoppel certificate
delivered to Lender, or as otherwise disclosed to Lender in the Lease or by Borrower, no Rent has been paid more than one (1) month
in advance of its due date (other than in connection with the first month’s Rent under a new Lease). All security deposits are
held by Borrower in accordance with applicable law. Except as set forth in any tenant estoppel certificate delivered to Lender, or as
otherwise disclosed to Lender in the Lease or by Borrower, all work to be performed by Borrower under each Lease as of the Closing Date
has been performed as required and has been accepted by the applicable Tenant, and any payments, free rent, partial rent, rebate of rent
or other payments, credits, allowances or abatements required to be given by Borrower to any Tenant as of the Closing Date has already
been received by (or credited to) such Tenant. There has been no prior sale, transfer or assignment, hypothecation or pledge of any Lease
or of the Rents received therein, in each case, which is outstanding. To Borrower’s knowledge, no Tenant listed on Schedule I
has assigned its Lease or except as set forth in any tenant estoppel certificate delivered to Lender, or as otherwise disclosed to
Lender in the Lease or by Borrower, sublet all or any portion of the premises demised thereby, no such Tenant holds its leased premises
under assignment. Except as disclosed to Lender or except as set forth in a Lease or in any tenant estoppel certificate delivered to
Lender, no Tenant under any Lease has a right or option pursuant to such Lease or otherwise to purchase all or any part of the leased
premises or the building of which the leased premises are a part. Except as disclosed to Lender or as set forth in the Leases or except
as set forth in any tenant estoppel certificate delivered to Lender, no Tenant under any Lease has any right or option for additional
space in the Improvements. Except as disclosed to Lender in writing or as set forth in the Leases or in any tenant estoppel certificate
delivered to Lender, no tenant has (i) asserted any defense or otherwise sought or given notice (whether written or oral) that it
intends to seek any relief or concessions with respect to the payment of rent or other sums or the performance of any obligations under
its Lease or (ii) made any other bona fide request for or otherwise given written notice that it intends to seek any amendment,
waiver, deferral, forbearance or other modification of any term or provision of its Lease, in each case (A) pursuant to any force
majeure clause contained in its Lease or otherwise as a result of the COVID-19 pandemic or any Emergency Law and (B) other than
requests, notices or defenses that have been withdrawn or resolved or are otherwise no longer outstanding.
4.1.27 Survey.
To Borrower’s knowledge, each Survey for each Individual Property delivered to Lender in connection with this Agreement does not
fail to reflect any material matter affecting the applicable Individual Property or the title thereto.
4.1.28 Inventory.
Borrower is the owner of all of the Equipment, Fixtures and Personal Property (as such terms are defined in the Security Instrument)
located on or at the Property (except for any equipment or personal property owned by Tenants or third-party service providers) and shall
not lease any Equipment, Fixtures or Personal Property other than as permitted hereunder. All of the Equipment, Fixtures and Personal
Property (together with any equipment and personal property owned by Tenants or third-party service providers) are sufficient to operate
the Property in the manner required hereunder and in the manner in which it is currently operated.
4.1.29 Filing
and Recording Taxes. All transfer taxes, deed stamps, intangible taxes or other amounts
in the nature of transfer taxes required to be paid by Borrower under applicable Legal Requirements have been paid. All mortgage, mortgage
recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in
effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents,
including the Security Instrument, have been paid.
4.1.30 Special
Purpose Entity/Separateness/No Prohibited Entity/Ownership Structure.
(a) Until
the Debt has been paid in full, Borrower hereby represents, warrants and covenants that (i) Borrower is, shall be and shall continue
to be a Special Purpose Entity, (ii) no direct ownership interests in Borrower or the Property shall include any Prohibited Entity/Ownership
Structure, and (iii) Guarantor has implemented procedures to confirm that no direct or indirect ownership interests in Guarantor
shall include any Prohibited Entity/Ownership Structure.
(b) The
representations, warranties and covenants set forth in Section 4.1.30(a) and Section 4.1.30(c) shall
survive for so long as any amount remains payable to Lender under this Agreement or any other Loan Document.
(c) Borrower
hereby represents and warrants to Lender that:
(i) Borrower
is in compliance (in all material respects) with all laws, regulations and orders applicable to Borrower and has received all permits
necessary for Borrower to operate and for which a failure to possess would materially and adversely affect the condition, financial or
otherwise, of Borrowers;
(ii) Borrower
is not aware of any pending or threatened litigation involving Borrower that, if adversely determined, would reasonably be expected to
materially adversely affect the condition (financial or otherwise) of Borrowers, or the condition or ownership of the property owned
by Borrower;
(d) Borrower
covenants that in connection with any Additional Insolvency Opinion delivered in connection with this Agreement it shall provide an updated
certification regarding compliance with the facts and assumptions made therein.
(e) Borrower
covenants and agrees that Borrower shall provide Lender with thirty (30) days’ prior written notice prior to the removal of an
Independent Director of any of Borrower.
(f) Any
and all of the stated facts and assumptions made in any Insolvency Opinion, including, but not limited to, any exhibits attached thereto,
will have been and shall be true and correct in all respects, and Borrower and Guarantor will have complied and will comply with all
of the stated facts and assumptions made with respect to it in any Insolvency Opinion. Each entity other than Borrower and Guarantor
with respect to which an assumption is made or a fact stated in any Insolvency Opinion will have complied and will comply with all of
the assumptions made and facts stated with respect to it in any such Insolvency Opinion.
4.1.31 Management
Agreement. The Management Agreement is in full force and effect and there is no default
beyond applicable notice and grace periods by Borrower, or to Borrower’s knowledge, Manager. The Management Agreement was entered
into on commercially reasonable terms.
4.1.32 Illegal
Activity. No portion of the Property has been or will be purchased with proceeds of any
illegal activity.
4.1.33 No
Change in Facts or Circumstances; Disclosure. All information submitted by Borrower to Lender
and in all financial statements, rent rolls, reports, certificates and other documents submitted in connection with the Loan or in satisfaction
of the terms thereof and all statements of fact made by Borrower in this Agreement or in any other Loan Document, are accurate, complete
and correct in all material respects. There has been no material adverse change in any condition, fact, circumstance or event that would
make any such information inaccurate, incomplete or otherwise misleading in any material respect or that otherwise materially and adversely
affects or is reasonably likely to materially and adversely affect the use, operation or value of the Properties or the business operations
or the financial condition of Borrowers. Borrower has disclosed to Lender all material facts and has not failed to disclose any material
fact that could cause any Provided Information or information described in this Section 4.1.33 or any representation or warranty
made herein to be materially misleading.
4.1.34 Investment
Company Act. Borrower is not (a) an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding
company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding
company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 2005, as amended;
or (c) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money.
4.1.35 Embargoed
Person. As of the date hereof and at all times throughout the term of the Loan, including
after giving effect to any Transfers permitted pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower
and Guarantor constitute property of, or are beneficially owned, directly or, to Borrower’s knowledge, indirectly, by any Embargoed
Person; (b) to Borrower’s knowledge, no Embargoed Person has any interest of any nature whatsoever in Borrower or Guarantor,
as applicable, with the result that the investment in Borrower or Guarantor, as applicable (whether directly or indirectly), is prohibited
by law or the Loan is in violation of law; and (c) to the best of Borrower’s knowledge, none of the funds of Borrower or Guarantor,
as applicable, have been derived from any unlawful activity with the result that the investment in Borrower or Guarantor, as applicable
(whether directly or indirectly), is prohibited by law or the Loan is in violation of law.
4.1.36 Principal
Place of Business; State of Organization. Borrower’s principal place of business as
of the date hereof is the address set forth in the introductory paragraph of this Agreement. Borrower’s state of organization is
as set forth in the introductory paragraph of this Agreement.
4.1.37 Environmental
Representations and Warranties. Except as otherwise disclosed by each Phase I environmental
report (or Phase II environmental report, if required) delivered to Lender in connection with the origination of the Loan (such report
is referred to below as the “Environmental Report”), (a) to Borrower’s knowledge, there are no Hazardous
Substances or underground storage tanks in, on, or under any Individual Property and no Hazardous Substances have been handled, manufactured,
generated, stored, processed, or disposed of on or released or discharged from any Individual Property, in each case, except those that
are (i) in material compliance with Environmental Laws and with permits issued pursuant thereto (to the extent such permits are
required under Environmental Law), or (ii) de-minimis amounts necessary to operate the Property for the purposes set forth in this
Agreement and which are otherwise permitted under and used in compliance with Environmental Law; (b) to Borrower’s knowledge,
there are no past, present or threatened Releases of Hazardous Substances, which would require the same to be reported to Governmental
Authorities or otherwise remediated, in, on, under or from any Individual Property which have not been remediated in accordance with
Environmental Law or otherwise addressed in a manner so that no violation of Environmental Law exists in connection therewith; (c) to
Borrower’s knowledge, there is no threat of any Release of Hazardous Substances migrating to any Individual Property in violation
of Environmental Law; (d) to Borrower’s knowledge, there is no past or present non-compliance with Environmental Laws, or
with permits issued pursuant thereto, in connection with the Property which has not been remediated in accordance with Environmental
Law or otherwise addressed in a manner so that no violation of Environmental Law exists in connection therewith; (e) Borrower does
not know of, and has not received, any written notice from any Governmental Authority relating to Hazardous Substances or the Remediation
thereof, in connection with any Individual Property, of alleged liability of any Person pursuant to any Environmental Law, in connection
with any Individual Property, or any administrative or judicial proceedings in connection with any of the foregoing, in each case, which
have not been remediated in accordance with Environmental Law or otherwise addressed in a manner so that no violation of Environmental
Law exists in connection therewith; (f) there are no Institutional Controls on or affecting any Individual Property; and (g) Borrower
has truthfully and fully disclosed to Lender, in writing, any and all information relating to environmental conditions in, on, under
or from the Property that is known to Borrower and has provided to Lender all information that is contained in Borrower’s files
and records.
4.1.38 Cash
Management Account. Borrower hereby represents and warrants to Lender that:
(a) This
Agreement, together with the other Loan Documents, create a valid and continuing security interest (as defined in the Uniform Commercial
Code) in the Clearing Account and Cash Management Account (when and to the extent opened) in favor of Lender, which security interest
is prior to all other Liens, other than Permitted Encumbrances, and is enforceable as such against creditors of and purchasers from Borrower,
subject to applicable bankruptcy, insolvency and similar laws affecting rights of credits generally and subject, as to enforceability,
to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). Other than in connection
with the Loan Documents and except for Permitted Encumbrances, Borrower has not sold, pledged, transferred or otherwise conveyed the
Clearing Account or Cash Management Account;
(b) Each
of the Clearing Account and Cash Management Account (when and to the extent opened) constitutes a “deposit account” or “securities
account” within the meaning of the Uniform Commercial Code;
(c) Pursuant
and subject to the terms hereof and the other applicable Loan Documents, the Clearing Bank has agreed to comply with all instructions
originated by Lender, without further consent by Borrower, directing disposition of the Clearing Account and Cash Management Account
(when and to the extent opened) and all sums at any time held, deposited or invested therein, together with any interest or other earnings
thereon, and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel
paper, deposit accounts, instruments, documents or securities;
(d) The
Clearing Account and Cash Management Account are not in the name of any Person other than Borrower, as pledgor, or Lender, as pledgee.
Borrower has not consented to the Clearing Bank and Agent complying with instructions with respect to the Clearing Account and Cash Management
Account from any Person other than Lender; and
(e) The
Property is not subject to any cash management system (other than pursuant to the Loan Documents), and any and all existing tenant instruction
letters issued in connection with any previous financing have been duly terminated prior to the date hereof (or will be terminated by
delivery of the Tenant Direction Letters in accordance with the terms of this Agreement).
4.1.39 TIF
Agreement. The TIF Agreement is in full force and effect and there is no default thereunder
by Borrower, and, to the best of Borrower’s knowledge, any other party thereto, and, to the best of Borrower’s knowledge,
no event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. Neither the execution
and delivery of the Loan Documents nor Borrower’s performance thereunder will adversely affect Borrower’s rights under the
TIF Agreement. The Loan, and the encumbrance of the Property as security for the Loan, will not cause Borrower to violate any covenants
contained in the TIF Agreement.
Section 4.2 Survival
of Representations. Borrower agrees that all of the representations and warranties of Borrower set forth in Section 4.1
hereof and elsewhere in this Agreement and in the other Loan Documents shall survive for so long as any amount remains owing to Lender
under this Agreement or any of the other Loan Documents by Borrower; it being understood and agreed, however, that such representations
and warranties shall only be deemed to have been made as of the date hereof, as set forth in Section 4.1. All representations,
warranties, covenants and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied
upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf.
ARTICLE V. BORROWER COVENANTS
Section 5.1 Affirmative
Covenants. From the date hereof and until payment and performance in full of all obligations of Borrower under the Loan Documents
or the earlier release of the Lien of the Security Instrument encumbering the Property (and all related obligations) in accordance with
the terms of this Agreement and the other Loan Documents, Borrower (as to itself and not as to all Borrowers, as the context may require)
hereby covenants and agrees with Lender that:
5.1.1 Existence;
Compliance with Legal Requirements. Each Borrower shall do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits, authorizations, and franchises
and comply in all material respects with all Legal Requirements applicable to it and the Property, including all regulations, building
and zoning codes and certificates of occupancy. Borrower has never, and shall not in the future, commit, and Borrower shall exercise
commercially reasonable efforts to ensure that no other Person in occupancy of or involved with the operation or use of the Property
shall commit, any act or omission affording the federal government or any state or local government the right of forfeiture against the
Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower
hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Borrower
shall at all times maintain, preserve and protect all franchises and trade names and preserve all the remainder of its property used
or useful in the conduct of its business and shall keep each Individual Property in good working order and repair, and from time to time
make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto, all as more
fully provided in the Loan Documents. Borrower shall keep each Individual Property insured, or shall cause each Individual Property to
be insured, at all times by financially sound and reputable insurers, to such extent and against such risks, and maintain liability and
such other insurance, as is more fully provided in this Agreement. Borrower shall give prompt notice to Lender of the receipt by Borrower
of any notice related to a violation of any Legal Requirements and of the commencement of any proceedings or investigations which relate
to compliance with Legal Requirements if such violation would reasonably be expected to have a material adverse effect on Borrowers or
the Property. After prior written notice to Lender, Borrower, at Borrower’s own expense, may contest by appropriate legal proceeding
promptly initiated and conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any
Legal Requirement to Borrower or any Individual Property or any alleged violation of any Legal Requirement, provided that (i) no
Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance
with the provisions of any instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding
shall be conducted in accordance with all applicable statutes, laws and ordinances; (iii) neither the applicable Individual Property
nor any part thereof or interest therein will be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower
shall promptly upon final determination thereof comply with any such Legal Requirement determined to be valid or applicable or cure any
violation of any Legal Requirement; (v) such proceeding shall suspend the enforcement of the contested Legal Requirement against
Borrower or the applicable Individual Property; and (vi) Borrower shall furnish such security as may be required in the proceeding,
or as may be reasonably requested by Lender, to insure compliance with such Legal Requirement, together with all interest and penalties
payable in connection therewith. Lender may apply any such security, as necessary to cause compliance with such Legal Requirement at
any time when, in the reasonable judgment of Lender, the validity, applicability or violation of such Legal Requirement is finally established
or the applicable Individual Property (or any part thereof or interest therein) shall be in imminent danger of being sold, forfeited,
terminated, cancelled or lost.
5.1.2 Taxes
and Other Charges. Borrower shall pay all Taxes and Other Charges now or hereafter levied
or assessed or imposed against the Property or any part thereof prior to the date the same shall become delinquent; provided, however,
Borrower’s obligation to directly pay Taxes shall be suspended for so long as Borrower complies with the terms and provisions of
Section 7.2 hereof. Upon Lender’s written request therefor from time to time, Borrower shall furnish to Lender receipts for
the payment of Taxes and Other Charges prior to the date same shall become delinquent (provided, however, Borrower is not required to
furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 7.2
hereof). Except for any Permitted Encumbrances, Borrower shall not suffer and shall cause to be paid and discharged any Lien or charge
whatsoever which may be or become a Lien or charge against the Property, and shall pay for all utility services provided to the Property
prior to the date the same shall become delinquent. After prior written notice to Lender, Borrower, at Borrower’s 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 Taxes or Other Charges, provided that (i) no Event of Default has occurred and is continuing;
(ii) such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (iii) neither the
Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost as a result
of such contest; (iv) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges,
together with all costs, interest and penalties which may be payable in connection therewith; and (v) Borrower shall furnish such
security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure the payment of any such Taxes or
Other Charges, together with all interest and penalties thereon. Lender may pay over any such cash deposit or part thereof held by Lender
to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of such claimant is established or the
Property (or part thereof or interest therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost or there shall
be any danger of the Lien of the Security Instrument being primed by any related Lien.
5.1.3 Litigation.
Borrower shall give prompt written notice to Lender of any litigation or governmental proceedings pending or threatened in writing against
Borrower or Guarantor which would reasonably be expected to materially adversely affect Borrowers’ or Guarantor’s condition
(financial or otherwise) or business or the Property.
5.1.4 Access
to Property. Subject to the rights of tenants, Borrower shall permit agents, representatives
and employees of Lender to inspect the Property or any part thereof at reasonable hours upon reasonable advance notice. Unless an Event
of Default is continuing, Borrower shall have the right to have Borrower’s representative present during any such inspection. Without
limiting Borrower’s general obligations under Section 5.1.1 to keep each Individual Property in good working order
and repair, Borrower shall not be required to make any repairs, replacements or improvements requested by Lender or Servicer based on
any inspection of an Individual Property by Lender or Servicer other than any repairs, replacements or improvements that are necessary
to comply with Legal Requirements or address any material damage or life-safety issues at an Individual Property.
5.1.5 Notice
of Material Adverse Change. Borrower shall promptly advise Lender of any material adverse
change in Borrower’s or Guarantor’s condition, financial or otherwise of which Borrower has knowledge; provided, however,
that this Section 5.1.5 shall not apply so long as the REIT remains subject to filing periodic reports with the United States
Securities and Exchange Commission (i.e., Forms 10-K, 10Q and 8-K) and the REIT remains in Control of Borrower.
5.1.6 Cooperate
in Legal Proceedings. Borrower shall cooperate with Lender with respect to any proceedings
before any court, board or other Governmental Authority which would reasonably be expected to materially and adversely affect the rights
of Lender hereunder or any rights obtained by Lender under any of the other Loan Documents and, in connection therewith, permit Lender,
at its election, to participate in any such proceedings.
5.1.7 [Intentionally
Omitted].
5.1.8 Award
and Insurance Benefits. Borrower shall cooperate with Lender in a commercially reasonable
matter in obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully or equitably payable in connection with the
Property, and Lender shall be reimbursed for any reasonable expenses incurred in connection therewith (including reasonable attorneys’
fees and disbursements, and the payment by Borrower of the reasonable expense of an appraisal on behalf of Lender in case of Casualty
or Condemnation affecting a portion of the Property or any part thereof) out of such Insurance Proceeds.
5.1.9 Further
Assurances. Provided the following further assurances do not increase Borrower’s obligations
and/or liability under the Loan Documents (other than in de minimis respects) or decrease Borrower’s rights under the Loan Documents,
Borrower shall, at Borrower’s sole cost and expense:
(a) permit
Lender to inspect at Borrower’s offices all instruments, documents, boundary surveys, footing or foundation surveys, certificates,
plans and specifications, appraisals, title and other insurance reports and agreements, and each and every other document, certificate,
agreement and instrument in Borrower’s possession or readily available to it at no material out-of-pocket cost (subject, however,
with respect to those which are by their nature confidential or subject to a privilege of confidentiality, to Lender’s delivery
of a confidentiality agreement acceptable to Lender in it’s reasonable discretion) required to be furnished by Borrower pursuant
to the terms of the Loan Documents or which are reasonably requested by Lender in connection therewith;
(b) execute
and deliver to Lender such customary documents, instruments, certificates, assignments and other writings, and do such other customary
acts necessary, to evidence, preserve or protect the collateral at any time securing or intended to secure the obligations of Borrower
under the Loan Documents, as Lender may reasonably require; and
(c) do
and execute all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out
of the intents and purposes of this Agreement and the other Loan Documents, as Lender shall reasonably require from time to time provided
that Borrower’s rights are not reduced or obligations increased.
5.1.10 Principal
Place of Business, State of Organization. Borrower shall not cause or permit any change
to be made in its name, identity (including its trade name or names), place of organization or formation (as set forth in Section 4.1.36
hereof), except as may be permitted in connection with a Permitted Transfer, or Borrower’s corporate or partnership or other
structure unless Borrower shall have first notified Lender in writing of such change at least thirty (30) days prior to the effective
date of such change, and shall have first taken all action reasonably required by Lender for the purpose of perfecting or protecting
the lien and security interests of Lender pursuant to this Agreement, and the other Loan Documents and, in the case of a change in Borrower’s
structure, without first obtaining the prior written consent of Lender, which consent may be given or denied in Lender’s reasonable
discretion. Upon Lender’s request, Borrower shall, at Borrower’s sole cost and expense, execute and deliver additional security
agreements and other customary instruments which may be necessary to effectively evidence or perfect Lender’s security interest
in the Property (or any portion thereof) as a result of such change of principal place of business or place of organization. Borrower’s
principal place of business and chief executive office, and the place where Borrower keeps its books and records, including recorded
data of any kind or nature, regardless of the medium or recording, including software, writings, plans, specifications and schematics,
has been for the preceding four months (or, if less, the entire period of the existence of Borrower) and will continue to be the address
of Borrower set forth at the introductory paragraph of this Agreement (unless Borrower notifies Lender in writing at least thirty (30)
days prior to the date of such change). Borrower shall promptly notify Lender of any change in its organizational identification number.
If Borrower does not now have an organizational identification number and later obtains one, Borrower promptly shall notify Lender of
such organizational identification number.
5.1.11 Financial
Reporting.
(a) Borrower
shall keep and maintain or shall cause to be kept and maintained on a Fiscal Year basis, in accordance with the requirements for a Special
Purpose Entity set forth herein and GAAP (or such other accounting basis reasonably acceptable to Lender), proper and accurate books,
records and accounts reflecting all of the financial affairs of Borrower and all items of income and expense in connection with the operation
of each Individual Property. Lender shall have the right from time to time at all times during normal business hours upon reasonable
notice to examine such books, records and accounts at the office of Borrower or any other Person maintaining such books, records and
accounts and to make such copies or extracts thereof as Lender shall desire. During the continuance of an Event of Default, Borrower
shall pay any costs and expenses reasonably incurred by Lender to examine Borrower’s accounting records with respect to each Individual
Property, as Lender shall reasonably determine to be necessary or appropriate in the protection of Lender’s interest; provided,
however, in no event shall Borrower be responsible for any such cost exceeding $2,000 per inspection.
(b) Borrower
shall furnish to Lender annually, within one hundred twenty (120) days following the end of each Fiscal Year of Borrower, (i) a
complete copy of Borrower’s annual financial statements certified by the chief financial officer of the REIT, prepared in accordance
with GAAP (or such other accounting basis acceptable to Lender), covering each Individual Property for such Fiscal Year and containing
statements of profit and loss for Borrower and each Individual Property, (ii) an annual rent roll and a balance sheet for Borrower,
and (iii) the quarterly reports for the fourth (4th) calendar quarter required under Section 5.1.11(c) hereof.
If Borrower consists of more than one entity, said financial statements shall be in the form of an annual combined balance sheet of the
Borrower entities (and no other entities), together with the related combined statements of operations, members’ capital and cash
flows, including a combining balance sheet and statement of income for the Individual Properties on a combined basis. Such statements
shall set forth the financial condition and the results of operations for each Individual Property for such Fiscal Year, and shall include
amounts representing annual net operating income, Net Cash Flow, gross income, and operating expenses. Prior to the Global Net Lease
Merger, Borrower shall cause The Necessity Retail REIT, Inc., a Maryland corporation, to furnish to Lender annually, within one
hundred twenty (120) days following the end of each Fiscal Year of The Necessity Retail REIT, Inc., a Maryland corporation, financial
statements of such entity (10-K) audited by an Approved Accountant. Following the Global Net Lease Merger, Borrower shall cause Global
Net Lease, Inc., a Maryland corporation, to furnish to Lender annually, within one hundred twenty (120) days following the end of
each Fiscal Year of Global Net Lease, Inc., a Maryland corporation, financial statements of such entity (10-K) audited by an Approved
Accountant.
(c) Borrower
shall furnish, or cause to be furnished, to Lender on or before sixty (60) days after the end of each calendar quarter the following
items, accompanied by an Officer’s Certificate stating that such items are true, correct, accurate, and complete and fairly present
the financial condition and results of the operations of Borrower and each Individual Property (subject to normal year-end adjustments)
as applicable, all prepared in accordance with GAAP (or such other accounting basis acceptable to Lender): (i) a rent roll for the
subject quarter, along with copies of any new Leases and any amendments, extensions or modifications of any Leases entered into during
the preceding quarter; (ii) quarterly and year-to-date operating statements (including Capital Expenditures) prepared for each calendar
quarter, noting net operating income, gross income, and operating expenses (not including any contributions to the Replacement Reserve
Fund and the Required Repair Fund), and other information necessary and sufficient to fairly represent the financial position and results
of operation of each Individual Property during such calendar quarter, and containing a comparison of budgeted income and expenses and
the actual income and expenses;(iii) a balance sheet for Borrower; and (iv) a calculation reflecting the annual Debt Service
Coverage Ratio for the immediately preceding three (3), six (6), and twelve (12) month periods as of the last day of such quarter (to
the extent the Loan has been outstanding for such periods). In addition, such Officer’s Certificate shall also state that, to the
best of Borrower’s knowledge, no Hobby Lobby Trigger Event has occurred. Any time that Approved Accountant audited versions of
any of the items described in items (i)-(iv) immediately above are available, Borrower shall promptly provide the same to Lender.
Notwithstanding the foregoing, Borrower may deliver the quarterly reports for the fourth (4th) calendar quarter required under
this Section 5.1.11(c) with the annual financial statements delivered to Lender within one hundred twenty (120) days
following the end of each Fiscal Year of Borrower under Section 5.1.11(b) hereof.
(d) Prior
to a Securitization, Borrower shall furnish, or cause to be furnished, to Lender on or before twenty (20) days after the end of each
calendar month, all of the following items with respect to the previous calendar month, accompanied by an Officer’s Certificate
stating that such items are true, correct, accurate, and complete and fairly present the financial condition and results of the operations
of Borrower and each Individual Property (subject to normal year-end adjustments) as applicable: (A) a rent roll for the subject
month; (B) monthly operating statement(s) of each Individual Property; and (C) year-to-date operating statement(s) of
each Individual Property.
(e) Intentionally
omitted.
(f) Upon
request, Borrower and its affiliates shall furnish to Lender (but not more frequently than quarterly) an accounting of all security deposits
held in connection with any Lease of any part of the Property, including the name and identification number of the accounts in which
such security deposits are held, the name and address of the financial institutions in which such security deposits are held and the
name of the person to contact at such financial institution, along with any authority or release necessary for Lender to obtain information
regarding such accounts directly from such financial institutions.
(g) For
the partial year period commencing on the date hereof, and for each Fiscal Year thereafter, Borrower shall submit to Lender a draft Annual
Budget not later than thirty (30) days prior to the commencement of such period or Fiscal Year in form reasonably satisfactory to Lender.
If a Cash Sweep Period exists, the Annual Budget shall be subject to Lender’s written approval (each such Annual Budget, an “Approved
Annual Budget”), not to be unreasonably withheld, delayed or conditioned. If Lender objects to a proposed Annual Budget submitted
by Borrower, Lender shall advise Borrower of such objections within ten (10) days after receipt thereof (and deliver to Borrower
a reasonably detailed written description of such objections) and Borrower shall promptly revise such Annual Budget and resubmit the
same to Lender. Lender shall advise Borrower of any objections to such revised Annual Budget within ten (10) days after receipt
thereof (and deliver to Borrower a reasonably detailed written description of such objections) and Borrower shall promptly revise the
same in accordance with the process described in this subsection until Lender approves the Annual Budget. Until such time that Lender
approves a proposed Annual Budget, the most recently Approved Annual Budget shall apply; provided that, such Approved Annual Budget shall
be adjusted to reflect actual increases in Taxes, Insurance Premiums and Other Charges and other Non-Discretionary Expenses and
an increase of an additional five percent (5%) of each line item to account for inflation. Notwithstanding anything to the contrary contained
herein, to the extent Lender’s prior approval is required for an Annual Budget as set forth in this Section 5.1.11(g),
such approval shall be deemed given if the first correspondence from Borrower to Lender requesting such approval contains a conspicuous
legend at the top of the first page thereof stating that “THIS IS A REQUEST FOR APPROVAL OF AN ANNUAL BUDGET. IF YOU FAIL
TO APPROVE OR DISAPPROVE SUCH ANNUAL BUDGET IN WRITING WITHIN SEVEN (7) BUSINESS DAYS, BORROWER MAY DELIVER A DEEMED APPROVAL
NOTICE”, and any customary information and documents in Borrower’s possession reasonably requested by Lender in writing prior
to the expiration of such seven (7) Business Day period in order to adequately review the same has been delivered to Lender and,
if Lender fails to approve or disapprove in writing within the seven (7) Business Day period, a second notice is delivered to Lender
from Borrower in an envelope marked “PRIORITY” requesting approval containing a conspicuous legend at the top of the first
page thereof stating that “THIS IS A REQUEST FOR APPROVAL OF AN ANNUAL BUDGET. IF YOU FAIL TO APPROVE OR DISAPPROVE SUCH ANNUAL
BUDGET IN WRITING WITHIN THREE (3) BUSINESS DAYS, YOUR APPROVAL SHALL BE DEEMED GIVEN” and Lender fails to approve or disapprove
within the three (3) Business Day period.
(h) If
Borrower must incur an extraordinary operating expense or capital expense not set forth in the Approved Annual Budget (each an “Extraordinary
Expense”), then Borrower shall promptly deliver to Lender a reasonably detailed explanation of such proposed Extraordinary
Expense for Lender’s approval, not to be unreasonably withheld, conditioned or delayed. Notwithstanding anything to the contrary
contained herein, Lender’s approval of an Extraordinary Expense shall be deemed given if the first correspondence from Borrower
to Lender requesting such approval contains a conspicuous legend at the top of the first page thereof stating that “THIS IS
A REQUEST FOR APPROVAL OF AN EXTRAORDINARY EXPENSE. IF YOU FAIL TO APPROVE OR DISAPPROVE SUCH EXTRAORDINARY EXPENSE IN WRITING WITHIN
SEVEN (7) BUSINESS DAYS, BORROWER MAY DELIVER A DEEMED APPROVAL NOTICE”, and any customary information and documents
in Borrower’s possession reasonably requested by Lender in writing prior to the expiration of such seven (7) Business Day
period in order to adequately review the same has been delivered to Lender and, if Lender fails to approve or disapprove in writing within
the seven (7) Business Day period, a second notice is delivered to Lender from Borrower in an envelope marked “PRIORITY”
requesting approval containing a conspicuous legend at the top of the first page thereof stating that “THIS IS A REQUEST FOR
APPROVAL OF AN EXTRAORDINARY EXPENSE. IF YOU FAIL TO APPROVE OR DISAPPROVE SUCH EXTRAORDINARY EXPENSE IN WRITING WITHIN THREE (3) BUSINESS
DAYS, YOUR APPROVAL SHALL BE DEEMED GIVEN” and Lender fails to approve or disapprove within the three (3) Business Day period.
(i) Borrower
shall furnish to Lender, within ten (10) Business Days after written request (or as soon thereafter as may be reasonably possible),
such further detailed information with respect to the operation of the applicable Individual Property (or any portion thereof) and the
financial affairs of Borrower as may be reasonably requested by Lender.
(j) Borrower
shall furnish to Lender, within ten (10) Business Days after Lender’s written request (or as soon thereafter as may be reasonably
possible), financial information from any Tenant designated by Lender (to the extent such financial information is required to be provided
under the applicable Lease and same is received by Borrower after written request therefor).
(k) Subject
to the last sentence of this Section 5.1.11(k), Borrower shall cause Guarantor to furnish to Lender annually, within one
hundred twenty (120) days following the end of each Fiscal Year of Guarantor: (i) if such Guarantor is an entity, financial statements
audited by an Approved Accountant (or, alternatively, if such Guarantor is a publicly-held corporation or other publicly-held entity
(in each case) which is listed on the New York Stock Exchange, the NASDAQ Global Select Market or another nationally-recognized stock
exchange, the 10-K of such Guarantor), which shall include an annual balance sheet and profit and loss statement of Guarantor, in the
form reasonably required by Lender, or (ii) if such Guarantor is an individual, a signed personal financial statement in a form
reasonably satisfactory to Lender. Notwithstanding the foregoing, the delivery of the 10-K of (y) The Necessity Retail REIT, Inc.,
a Maryland corporation, prior to the Global Net Lease Merger (so long as Pre-Merger Guarantor is Guarantor), and (x) Global Net
Lease, Inc., a Maryland corporation, following the Global Net Lease Merger (so long as Post-Merger Guarantor is Guarantor) will
satisfy the foregoing.
(l) Any
reports, statements or other information required to be delivered under this Agreement shall be delivered (i) in paper form, (ii) on
a diskette (e.g., a thumb drive), or (iii) if requested by Lender and within the capabilities of Borrower’s data systems without
change or modification thereto, in electronic form and prepared using Microsoft Word for Windows files (which files may be prepared using
a spreadsheet program and saved as word processing files). Borrower agrees that Lender may disclose information regarding the Property
and Borrower that is provided to Lender pursuant to this Section 5.1.11 in connection with the Securitization to such parties
requesting such information in connection with such Securitization.
5.1.12 Business
and Operations. Borrower shall continue to engage in the businesses presently conducted
by it as and to the extent the same are necessary for the ownership, maintenance, management and operation of each Individual Property.
Borrower shall qualify to do business and shall remain in good standing in the jurisdiction in which each Individual Property is located
and the jurisdiction of its formation. Borrower shall at all times during the term of the Loan, continue to own all Equipment, Fixtures
and Personal Property which (together with any equipment, fixtures and personal property owned by tenants or third parties) are necessary
to operate each Individual Property in the manner required hereunder and in substantially the same manner in which it is currently operated.
5.1.13 Title
to the Property. Borrower shall warrant and defend (a) the title to each Individual
Property and every part thereof, subject only to Liens permitted hereunder (including Permitted Encumbrances) and (b) the validity
and priority of the Lien of the Security Instrument on each Individual Property, subject only to Liens permitted hereunder (including
Permitted Encumbrances), in each case against the claims of all Persons whomsoever. Borrower shall reimburse Lender for any actual losses,
reasonable costs, damages exclusive of consequential, punitive, special, exemplary and indirect damages or reasonable expenses (including
reasonable out-of-pocket attorneys’ fees and expenses) incurred by Lender if an interest in the Property (or any part thereof),
other than as permitted hereunder, is claimed by another Person.
5.1.14 Costs
of Enforcement. In the event (a) that the Security Instrument encumbering the Property
(or any portion thereof) is foreclosed in whole or in part or that the Security Instrument is put into the hands of an attorney for collection,
suit, action or foreclosure, (b) of the foreclosure of any mortgage encumbering the Property (or any portion thereof) prior to or
subsequent to the Security Instrument in which proceeding Lender is made a party, or (c) of the bankruptcy, insolvency, rehabilitation
or other similar proceeding in respect of Borrower or any of its constituent Persons or an assignment by Borrower or any of its constituent
Persons for the benefit of its creditors, Borrower, its successors or assigns, shall be chargeable with and agrees to pay all costs of
collection and defense, including reasonable out-of-pocket attorneys’ fees and expenses, incurred by Lender or Borrower in connection
therewith and in connection with any appellate proceeding or post judgment action involved therein, together with all required service
or use taxes.
5.1.15 Estoppel
Statement.
(a) After
request by Lender, Borrower shall within ten (10) Business Days furnish Lender or any proposed assignee of the Loan with a statement,
duly acknowledged and certified, setting forth (i) the original principal amount of the Note, (ii) the unpaid principal amount
of the Note, (iii) the Interest Rate of the Note, (iv) the Maturity Date, (v) the date the most recent Monthly Debt Service
Payment Amount was paid and (vi) that, except as provided in such statement, to Borrower’s knowledge, there are no Events
of Default under this Agreement or any of the other Loan Documents; provided that Borrower shall not be required to deliver such statement
more frequently than two (2) times in any calendar year unless an Event of Default has occurred and is continuing.
(b) After
request by Borrower, Lender shall within ten (10) Business Days furnish Borrower or any proposed assignee of the Loan with a statement,
duly acknowledged and certified, setting forth (i) the original principal amount of the Note, (ii) the unpaid principal amount
of the Note, (iii) the Interest Rate of the Note, (iv) the Maturity Date, (v) the date the most recent Monthly Debt Service
Payment Amount was paid, and (vi) that, except as provided in such statement, to Lender’s knowledge, there are no Events of
Default under this Agreement or any of the other Loan Documents; provided that Lender shall only deliver such statements if an Event
of Default has not occurred and is continuing and, in any event, shall not be required to deliver such statement more frequently than
two (2) times in any calendar year.
(c) Borrower
shall use commercially reasonable efforts to deliver to Lender upon request, tenant estoppel certificates from each commercial Tenant
leasing space at the Property in form and substance reasonably satisfactory to Lender; provided that Borrower shall not be required to
use such efforts to deliver such certificates with respect to more than (i) five (5) Tenants not under a Major Lease in any
calendar year, or (ii) more frequently than one (1) time in any calendar year for any Tenants under a Major Lease unless an
Event of Default has occurred and is continuing.
5.1.16 Loan
Proceeds. Borrower shall use the proceeds of the Loan received by it on the Closing Date only for the purposes set forth in Section 2.1.4
hereof.
5.1.17 O&M
Program. Borrower covenants and agrees to implement and follow the terms and conditions of the O&M Program for the Property
during the term of the Loan, including any extension or renewal thereof. Lender’s requirement that Borrower comply with the
O&M Program shall not be deemed to constitute a waiver or modification of any of Borrower’s covenants and agreements with respect
to Hazardous Materials or Environmental Laws.
5.1.18 Confirmation
of Representations. Borrower shall deliver, in connection with any Securitization, (a) one (1) or more Officer’s
Certificates certifying as to the accuracy of all representations made by Borrower in the Loan Documents (as the same may be updated
by Borrower provided that such updates do not violate any of the covenants set forth in this Article V) as of the date of
the closing of such Securitization in all relevant jurisdictions, and (b) certificates of the relevant Governmental Authorities
in all relevant jurisdictions indicating the good standing and qualification of Borrower and Guarantor as of the date of the Securitization;
provided that Borrower shall not be required to deliver such Officer’s Certificates or good standing and qualification certificates
more frequently than two (2) times in any calendar year for each Co-Lender unless an Event of Default has occurred and is continuing.
5.1.19 Environmental
Covenants.
(a) Borrower
covenants and agrees that: (i) all uses and operations on or of the Property (or any portion thereof), by Borrower shall be in material
compliance with all Environmental Laws and permits issued pursuant thereto and Borrower shall use commercially reasonable efforts to
cause all uses and operations on or of the Property by any other Person to be in material compliance with all Environmental Laws and
permits issued pursuant thereto; (ii) there shall be no Releases of Hazardous Substances in, on, under or from any Individual Property
in violation of Environmental Law; (iii) there shall be no Hazardous Substances in, on, or under any Individual Property, except
those that are (A) in material compliance with all Environmental Laws and with permits issued pursuant thereto (to the extent such
permits are required by Environmental Law), or (B) de-minimis amounts necessary to operate the applicable Individual Property for
the purposes set forth in this Agreement and which are otherwise permitted under and used in compliance with Environmental Law; (iv) Borrower
shall keep the Property free and clear of all liens and other encumbrances imposed pursuant to any Environmental Law, whether due to
any act or omission of Borrower or any other Person (the “Environmental Liens”); (v) Borrower shall, at its sole
cost and expense, cooperate in all activities required pursuant to subsection (b) below, including providing all relevant information
and making knowledgeable persons available for interviews; (vi) Borrower shall, at its sole cost and expense, perform any environmental
site assessment or other investigation of environmental conditions in connection with the Property, pursuant to any reasonable written
request of Lender made in the event that Lender has reason to believe that an environmental hazard in violation of Environmental Laws
exists on the Property (including but not limited to sampling, testing and analysis of soil, water, air, building materials and other
materials and substances whether solid, liquid or gas), and share with Lender the reports and other results thereof, and Lender and other
Indemnified Parties shall be entitled to rely on such reports and other results thereof; (vii) Borrower shall, at its sole cost
and expense, comply with all reasonable written requests of Lender made if Lender has a reasonable basis to believe that an environmental
hazard in violation of Environmental Law exists on any Individual Property in order to: (A) reasonably effectuate Remediation of
any environmental condition (including a Release of a Hazardous Substance) in, on, under or from any Individual Property in violation
of Environmental Law; (B) comply with any Environmental Law; (C) comply with any directive from any Governmental Authority
with jurisdiction with respect to the environmental condition of the Property; provided, however, that nothing herein shall preclude
Borrower from the right to defend against or challenge, using all legal means, the imposition of any governmental directives or requirements
or the imposition of any liability by any Governmental Authority or other Person; and (D) take any other reasonable action necessary
or appropriate for protection of human health or the environment with respect to the Property, to the extent required pursuant to Environmental
Law; (viii) Borrower shall not do any act, and Borrower shall use commercially reasonable efforts to cause all Tenants or other
users of the Property to not do any act, in connection with the Property, that materially increases the harm to human health or the environment,
poses an unreasonable risk of harm to any Person from a Release of any Hazardous Substances on, at, under, or from the Property (or any
portion thereof), impairs or is reasonably likely to impair the value of the Property (or any portion thereof) due to the presence of
Hazardous Substances, is contrary to any requirement of any insurer, constitutes a public or private nuisance, or violates any covenant,
condition, agreement or easement applicable to the environmental condition of the Property (or any portion thereof); (ix) after
obtaining knowledge thereof, Borrower shall promptly notify Lender in writing of (A) any presence or Releases or threatened Releases
of Hazardous Substances in, on, under, from or migrating onto any Individual Property which would require the same to be reported to
Governmental Authorities or otherwise remediated pursuant to Environmental Laws; (B) any material non-compliance with any Environmental
Laws related in any way to any Individual Property; (C) any actual or reasonably likely Environmental Lien on any Individual Property;
(D) any required Remediation of environmental conditions relating to any Individual Property; and (E) any written notice or
other written communication of which Borrower becomes aware from any source whatsoever (including a Governmental Authority) relating
in any way to the release or potential release of Hazardous Substances on, at, under or from any Individual Property or the Remediation
thereof, likely to result in liability of any Person in connection with any Individual Property pursuant to any Environmental Law, other
environmental conditions in connection with any Individual Property, or any actual or potential administrative or judicial proceedings
in connection therewith; (x) Borrower shall not install, use, generate, manufacture, store, treat, release or dispose of, nor permit
the installation, use, generation, storage, treatment, release or disposal of, any Hazardous Substances (except de-minimis amounts necessary
to operate the Property (or any portion thereof) for the purposes set forth in this Agreement and which are otherwise permitted under
and used in compliance with Environmental Law) on, under or about the Property (or any portion thereof); (xi) Borrower shall not
make any change in the use or condition of any Individual Property which (A) would reasonably be expected to lead to the presence
on, under or about the applicable Individual Property of any Hazardous Substances which is not in accordance with any applicable Environmental
Law, or (B) would require, under any applicable Environmental Law, notice to be given to or approval to be obtained from any Governmental
Authority in the event of a transfer of ownership or control of the applicable Individual Property, in each case without the prior written
consent of Lender; (xii) Borrower shall not allow any Institutional Control to be imposed on any Individual Property; and (xiii) Borrower
shall take all acts necessary to preserve its status, if applicable, as an “innocent landowner,” “contiguous property
owner,” or “prospective purchaser” as to the Property (or any portion thereof) as those terms are defined in CERCLA;
provided, however, that this covenant does not limit or modify any of Borrower’s other duties or obligations under this Agreement.
(b) If
Lender has a reasonable basis to believe that an environmental condition in violation of Environmental Law exists on any Individual Property,
upon reasonable written notice from Lender, Borrower shall, at Borrower’s expense, promptly cause an engineer or consultant reasonably
satisfactory to Lender to conduct an environmental assessment or audit (the scope of which shall be determined in Lender’s reasonable
discretion) and take any samples of soil, groundwater or other water, air, or building materials or any other invasive testing at such
Individual Property as reasonably requested by Lender and promptly deliver the results of any such assessment, audit, sampling or other
testing; provided, however, if such results are not delivered to Lender within a reasonable period or if Lender has a reasonable basis
to believe that an environmental hazard exists on the Property that, in Lender’s reasonable judgment, endangers the health of any
Tenant or other occupant of the Property or their guests or the general public or is reasonably likely to materially and adversely affect
the value of the applicable Individual Property, upon reasonable written notice to Borrower, Lender and any other Person designated by
Lender, including any receiver, any representative of a Governmental Authority with jurisdiction over the matter, and any environmental
consultant, shall have the right, subject to the rights of the occupants of the Individual Property, but not the obligation, to enter
upon the applicable Individual Property at all reasonable times to assess the environmental hazard on the applicable Individual Property,
including conducting any environmental assessment or audit (the scope of which shall be determined in Lender’s reasonable discretion)
and taking samples of soil, groundwater or other water, air, or building materials, and conducting other invasive testing, in each case,
to the extent reasonably determined to be warranted in connection with such suspected environmental hazard. Borrower shall cooperate
with and provide Lender and any such Person designated by Lender with access to the applicable Individual Property. Unless an Event of
Default exists, Borrower shall not be required to perform an environmental site assessment or audit hereunder with respect to any Individual
Property more often than once per twelve (12) month period. Lender and any person designated by Lender shall use commercially reasonable
efforts to minimize interference with or impact on Tenants and other occupants or visitors of the Property.
(c) [Intentionally
omitted].
(d) [Intentionally
omitted].
(e) Subject
to the rights of Tenants, Borrower shall promptly perform (or cause Tenants to perform) all necessary remedial work in response to the
presence of any Hazardous Substances on any Individual Property in violation of any Environmental Laws, or any claims or requirements
made by any Governmental Authority with jurisdiction regarding the environmental condition of such Individual Property; provided, however,
that nothing herein shall preclude Borrower from the right to defend against or challenge using all lawful means, the imposition of any
governmental directives or requirements or the imposition of any liability by any governmental entity or other Person. All such work
shall be conducted by licensed and reputable contractors pursuant to written plans approved by the agency or authority in question (if
applicable), under proper permits and licenses (if applicable) with such insurance coverage as is customarily maintained by prudent property
owners in similar situations. If the cost of the work exceeds $1,000,000, then Lender shall have the right of prior approval over the
environmental contractor and plans, which shall not be unreasonably withheld or delayed. All costs and expenses of the remedial work
shall be promptly paid by Borrower. In the event Borrower fails to undertake the remedial work, or fails to complete the same within
a reasonable time period after the same is undertaken, and if Lender is of the good faith opinion that Lender’s security in the
applicable Individual Property is jeopardized thereby, then Lender shall have the right to undertake or complete the remedial work itself.
In such event all reasonable out-of-pocket costs of Lender in doing so, including all reasonable out-of-pocket fees and expenses of environmental
consultants, engineers, attorneys, accountants and other professional advisors, shall become a part of the Loan and shall be due and
payable from Borrower upon demand. Such amount shall be secured by the Loan Documents, and failure to pay the same shall be an Event
of Default under the Loan Documents. In the event any Hazardous Substances are removed from the Property, either by Borrower or Lender,
the number assigned by the United States Environmental Protection Agency to such Hazardous Substances shall be solely in the name of
Borrower, and Borrower shall have any and all liability for such removed Hazardous Substances.
5.1.20 Leasing
Matters. Any Major Leases executed after the date hereof, as well as any amendments or modifications of existing Major Leases,
shall be subject to the prior written approval of Lender, which approval shall not be unreasonably withheld, conditioned or delayed (provided
that any renewal or extension of a Major Lease that is executed pursuant to the Tenant’s rights under such Major Lease or that
results in the extension of the term of such Major Lease upon the same material terms set forth in the Major Lease prior to such renewal
or extension shall not be subject to approval by Lender). Upon written request by Lender, Borrower shall furnish Lender with executed
copies of all Major Leases not previously delivered to Lender. Borrower shall not be required to obtain Lender’s prior written
approval for, nor provide Lender notice or copies of, any Leases (or any alterations, modifications, changes, extensions, terminations,
expansions, renewals or supplements thereof) that are not Major Leases. All renewals of existing Leases and all proposed new Leases shall
provide for rental rates (to the extent not already set forth in the Lease) comparable to existing local market rates. All proposed Leases
shall be on commercially reasonable terms. All new Leases executed after the date hereof shall provide that they are subordinate to any
loan documents encumbering the Individual Property subject to such Lease(s). Borrower (i) shall observe and perform the obligations
imposed upon the lessor under the Leases in a commercially reasonable manner; (ii) shall enforce and may amend or terminate the
terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to be observed or performed in a commercially
reasonable manner and in a manner not to impair the value of the Property (or any portion thereof) involved; (iii) shall not collect
any of the rents more than one (1) month in advance (other than security deposits or first month’s Rent in connection with
a new Lease); (iv) shall not execute any other assignment of lessor’s interest in the Leases or the Rents (except as contemplated
by the Loan Documents); (v) shall not alter, modify or change the terms of the Leases in a manner inconsistent with the provisions
of the Loan Documents; provided, however that (notwithstanding anything to the contrary in the Loan Documents) Borrower shall not be
required to obtain Lender’s prior written approval for, nor provide Lender notice or copies of, any Lease, or any alterations,
modifications, changes, extensions, terminations, expansions, renewals or supplements of or to any Lease, in each case, that is not a
Major Lease; and (vi) shall execute and deliver at the request of Lender all such further assurances, confirmations and assignments
in connection with the Leases as Lender shall from time to time reasonably require, provided that same do not increase Borrower’s
obligations or decrease Borrower’s rights under such Leases or the Loan Documents. Notwithstanding anything to the contrary contained
herein, all new Leases and all amendments, modifications, extensions, and renewals of existing Leases with Tenants that are Affiliates
of Borrower shall be subject to the prior written consent of Lender. Notwithstanding anything to the contrary contained herein, Borrower
shall not be permitted to terminate or accept a surrender any Major Lease without the prior written consent of Lender. Lender agrees
to enter into a subordination, non-disturbance agreement with tenants with respect to any Lease in a form substantially similar to the
subordination, non-disturbance agreements entered into in connection with the closing of the Loan. Borrower shall deliver to Lender written
notice of (i) any Tenant event of default (after expiration of any notice and cure periods) under a Major Lease and (ii) the
occurrence of any Hobby Lobby Trigger Event promptly following Borrower obtaining actual knowledge of the same.
Notwithstanding
anything to the contrary contained herein, to the extent Lender’s prior approval is required for any Major Lease (or any modification
or other matter with respect to such Major Lease requiring Lender’s approval under this Section 5.1.20), such approval
shall be deemed given if the first correspondence from Borrower to Lender requesting such approval contains a conspicuous legend at the
top of the first page thereof stating that “THIS IS A REQUEST FOR APPROVAL OF A MAJOR LEASE. IF YOU FAIL TO APPROVE OR DISAPPROVE
SUCH MAJOR LEASE IN WRITING WITHIN SEVEN (7) BUSINESS DAYS, BORROWER MAY DELIVER A DEEMED APPROVAL NOTICE”, and any customary
information and documents in Borrower’s possession reasonably requested by Lender in writing prior to the expiration of such seven
(7) Business Day period in order to adequately review the same has been delivered to Lender and, if Lender fails to approve or disapprove
such Major Lease within the seven (7) Business Day period, a second notice is delivered to Lender from Borrower in an envelope marked
“PRIORITY” requesting approval containing a conspicuous legend at the top of the first page thereof stating that “THIS
IS A REQUEST FOR APPROVAL OF A MAJOR LEASE. IF YOU FAIL TO APPROVE OR DISAPPROVE SUCH MAJOR LEASE IN WRITING WITHIN THREE (3) BUSINESS
DAYS, YOUR APPROVAL SHALL BE DEEMED GIVEN” and Lender fails to approve or disapprove such Major Lease within the three (3) Business
Day period.
5.1.21 Alterations.
Borrower
shall obtain Lender’s prior written consent to any alterations to any Improvements, which consent shall not be unreasonably withheld
or delayed. Notwithstanding the foregoing, Lender’s consent shall not be required in connection with any alterations that will
not have a material adverse effect on Borrowers’ financial condition, Borrower’s ability to perform its obligations under
the Loan Documents or the value of any Individual Property, provided that such alterations are made in connection with (a) tenant
improvement work performed pursuant to the terms of any Lease executed on or before the date hereof (or, after the date hereof, which
are approved or deemed approved or which do not require Lender approval hereunder), (b) tenant improvement work performed pursuant
to the terms and provisions of a Lease and not materially and adversely affecting any structural component of any Improvements, any utility
or HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements (unless the Tenant
is obligated to maintain or repair any structural components of any Improvements pursuant to its Lease), (c) alterations performed
in connection with the Restoration of any Individual Property after the occurrence of a Casualty or Condemnation in accordance with the
terms and provisions of this Agreement, (d) alterations required to comply with Legal Requirements or the terms of the Loan Documents
or (e) alterations the aggregate cost of which is less than the Threshold Amount. If the total unpaid amounts due and payable with
respect to alterations to the Improvements with respect to an Individual Property or any portion thereof (other than such amounts to
be paid or reimbursed by Tenants under the Leases or paid with insurance or condemnation proceeds or reserves established pursuant to
the Loan Documents) shall at any time exceed the Threshold Amount, Borrower shall promptly deliver to Lender as security for the payment
of such amounts and as additional security for Borrower’s obligations under the Loan Documents any of the following: (A) cash,
(B) U.S. Obligations, (C) other securities having a rating reasonably acceptable to Lender and that, at Lender’s option
(if a Securitization has occurred), the applicable Rating Agencies have confirmed in writing will not, in and of itself, result in a
downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof
in connection with any Securitization or (D) a completion and performance bond or an irrevocable Letter of Credit (payable on sight
draft only) issued by a financial institution having a rating by S&P of not less than “A-1+” if the term of such bond
or Letter of Credit is no longer than three (3) months or, if such term is in excess of three (3) months, issued by a financial
institution having a rating that is reasonably acceptable to Lender and that, at Lender’s option (if a Securitization has occurred),
the applicable Rating Agencies have confirmed in writing will not, in and of itself, result in a downgrade, withdrawal or qualification
of the initial, or, if higher, then current ratings assigned to any Securities or class thereof in connection with any Securitization.
Such security shall be in an amount equal to the excess of the total unpaid amounts with respect to alterations to the Improvements on
the Property (or any portion thereof) (other than such amounts to be paid or reimbursed by Tenants under the Leases) over the Threshold
Amount and Lender may apply such security from time to time at the option of Lender to pay for such alterations. Lender shall return
such security to Borrower when the remaining cost for the applicable alteration triggering the security is reduced below the Threshold.
5.1.22 Operation
of Property.
(a) Borrower
shall cause each Individual Property to be operated, in all material respects, in accordance with the applicable Management Agreement
(or Replacement Management Agreement) as applicable. If the applicable Management Agreement expires or is terminated (without limiting
any obligation of Borrower to obtain Lender’s consent to any termination or modification of the Management Agreement in accordance
with the terms and provisions of this Agreement), Borrower shall promptly enter into a Replacement Management Agreement with Manager
or another Qualified Manager, as applicable. Notwithstanding the foregoing or anything to the contrary in this Agreement or the other
Loan Documents, (i) Lender acknowledges that each Individual Property is subject to a sub-management agreement between an Affiliated
Manager and a third party property manager as of the Closing Date, and (ii) if any such sub-management agreement expires or is terminated,
then at Borrower’s option (and without notice to or consent from Lender) (A) Borrower may cause the Affiliated Manager to
enter into a replacement sub-management agreement with any of the third party property managers that are listed in the last sentence
of the definition of “Qualified Manager”, or (B) Borrower may cause an Affiliated Manager to manage the applicable Property
pursuant to the applicable Management Agreement with such Affiliated Manager (and neither Borrower nor such Affiliated Manager shall
be required to enter into a Replacement Management Agreement for such terminated or expired sub-management agreement).
(b) Borrower
shall: (i) promptly perform or observe, in all material respects, all of the covenants and agreements required to be performed and
observed by it under each Management Agreement and do all things necessary to preserve and to keep unimpaired its material rights thereunder;
(ii) promptly notify Lender of any material default (after the expiration of notice and cure periods) under each Management Agreement
of which it has knowledge; (iii) upon request of Lender, promptly deliver to Lender a copy of each business plan and capital expenditures
plan received by it under a Management Agreement (to the extent such information is not duplicative of materials provided by Borrower
to Lender under other provisions of the Loan Documents); and (iv) enforce the performance and observance of all of the covenants
and agreements required to be performed or observed by the applicable Manager under the related Management Agreement, in a commercially
reasonable manner.
5.1.23 Embargoed
Person. Borrower has instituted procedures to insure that at all times throughout the term of the Loan, including after giving
effect to any Transfers permitted pursuant to the Loan Documents, (a) to Borrower’s actual knowledge, none of the funds or
other assets of Borrower and Guarantor constitute property of, or are beneficially owned, directly or indirectly, by any Embargoed Person;
(b) to Borrower’s actual knowledge, no Embargoed Person has any interest of any nature whatsoever in Borrower or Guarantor,
as applicable, with the result that the investment in Borrower or Guarantor, as applicable (whether directly or indirectly), is prohibited
by law or the Loan is in violation of law; and (c) to Borrower’s actual knowledge, none of the funds of Borrower or Guarantor,
as applicable, have been derived from, or are the proceeds of, any unlawful activity, including money laundering, terrorism or terrorism
activities, with the result that the investment in Borrower or Guarantor, as applicable (whether directly or indirectly), is prohibited
by law or the Loan is in violation of law, or may cause the Property to be subject to forfeiture or seizure.
5.1.24 Violations.
Within sixty (60) days following the Closing Date, Borrower shall (i) cure all of the Violations with the applicable Governmental
Authority and (ii) deliver to Lender updates to the zoning reports obtained in connection with the closing of the Loan for each
Individual Property identified on Schedule X attached hereto confirming that there are no outstanding violations of any Legal
Requirements; provided, however, that if any Violation is not cured, or an updated zoning report is not delivered within
such sixty (60) day period, and provided further that Borrower (i) shall have commenced and used diligent efforts to cure such Violation
and obtain such updated zoning report within such sixty (60) day period and (ii) thereafter diligently and expeditiously proceeds
to accomplish the same, such sixty (60) day period shall be extended for such time as is reasonably necessary for Borrower in the exercise
of due diligence to cure such Violation and deliver such updated zoning report, such additional period not to exceed an additional sixty
(60) days; provided further, however, that, so long as Borrower has taken all commercially reasonable actions within its
control to cure the Violations and deliver to Lender updated zoning reports (including, without limitation, completing work, paying amounts
due or submitting applicable filings to a Governmental Authority), Borrower’s failure to do so within the timeframes set forth
in this Section 5.1.24 shall not, on its own, result in an Event of Default.
5.1.25 TIF
Agreement. Borrower shall (i) pay all sums required to be paid by Borrower under the TIF Agreement, (ii) diligently
perform and observe all of the material terms, covenants and conditions of Borrower under the TIF Agreement, (iii) promptly deliver
to Lender a copy of any written notice to Borrower of any default by Borrower under the TIF Agreement, (iv) promptly deliver to
Lender a copy of any written notice from Borrower to Grove City of any default by Grove City under the TIF Agreement and (v) not,
without Lender’s prior written consent, modify, amend, terminate, cancel or replace the TIF Agreement to the extent the same would
have a material adverse effect on Borrower or the Property.
Section 5.2 Negative
Covenants. From the date hereof until payment and performance in full of all obligations of Borrower under the Loan Documents
or the earlier release of the Lien of the Security Instrument and any other collateral in accordance with the terms of this Agreement
and the other Loan Documents, Borrower (as to itself and not as to all Borrowers, as the context may require) covenants and agrees with
Lender that it shall not do, directly or indirectly, any of the following:
5.2.1 Operation
of Property.
(a) Borrower
shall not, without Lender’s prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned): (i) surrender,
terminate, cancel, amend or modify the Management Agreement; provided, that Borrower may, without Lender’s consent, terminate the
Management Agreement and replace the Manager so long as the replacement manager is a Qualified Manager pursuant to a Replacement Management
Agreement; (ii) increase or consent to the increase of the amount of any “Management Fee” (as defined in the applicable
Management Agreement) with respect to any Individual Property so that such “Management Fee” would be in excess of the underwritten
management fee for such Property set forth on Schedule V hereof, or (iii) otherwise modify, change, supplement, alter or
amend, or waive or release any of its rights and remedies under, the Management Agreement in any material respect.
(b) Following
the occurrence and during the continuance of an Event of Default, Borrower shall not exercise any rights, make any decisions, grant any
approvals or otherwise take any action with respect to Manager under the Management Agreement without the prior written consent of Lender,
which consent may be granted, conditioned or withheld in Lender’s discretion.
5.2.2 Liens.
Without Lender’s consent, Borrower shall not create, incur, assume or suffer to exist any Lien on any portion of the Property or
knowingly permit any such action to be taken, except for Permitted Encumbrances.
5.2.3 Dissolution.
Borrower shall not (a) engage in any dissolution, liquidation or consolidation or merger with or into any other business entity,
(b) engage in any business activity not related to the ownership and operation of each Individual Property, (c) transfer, lease
or sell, in one transaction or any combination of transactions, the assets or all or substantially all of the properties or assets of
Borrower except to the extent permitted by the Loan Documents, (d) modify, amend, waive or terminate its organizational documents
or its qualification and good standing in any jurisdiction, or (e) divide into two (2) or more limited liability companies
or other legal entities pursuant to Section 18-217 of the Act or otherwise, in each case, without obtaining the prior written consent
of Lender, not to be unreasonably withheld, delayed or conditioned.
5.2.4 Change
In Business. Borrower shall not enter into any line of business other than the ownership and operation of each Individual Property
(and activities incidental thereto), or make any material change in the scope or nature of its business objectives, purposes or operations,
or undertake or participate in activities other than the continuance of its present business (and activities incidental thereto). Nothing
contained in this Section 5.2.4 is intended to expand the rights of Borrower contained in Section 5.2.10(d) hereof.
5.2.5 Debt
Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than termination of Leases in
accordance herewith) owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s
business.
5.2.6 Zoning.
Borrower shall not initiate or consent to any zoning reclassification of any portion of any Individual Property or seek any variance
under any existing zoning ordinance or use or permit the use of any portion of any Individual Property in any manner that could reasonably
be expected to result in such use becoming a nonconforming use under any zoning ordinance or any other applicable land use law, rule or
regulation, without the prior written consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed.
5.2.7 No
Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of any Individual Property (a) with
any other real property constituting a tax lot separate from the applicable Individual Property, and (b) which constitutes real
property with any portion of the applicable Individual Property which may be deemed to constitute personal property, or any other procedure
whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to such real
property portion of the Individual Property.
5.2.8 Intentionally
Omitted.
5.2.9 ERISA.
(a) Borrower
shall not engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise by Lender
of any of its rights under the Note, this Agreement or the other Loan Documents) to be a non-exempt (under a statutory or administrative
class exemption) prohibited transaction under ERISA, to the extent that no portion of the assets used by Lender in connection with the
transaction contemplated under this Agreement and the other Loan Documents constitutes “plan assets” of one or more Plans
within the meaning of 29 C.F.R. §2510.3-101, as modified by Section 3(42) of ERISA.
(b) Borrower
further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the
Loan, as requested by Lender in its discretion, that (A) Borrower is not and does not maintain an “employee benefit plan”
as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the
meaning of Section 3(32) of ERISA; (B) Borrower is not subject to any state statute regulating investment of, or fiduciary
obligations with respect to governmental plans and (C) one or more of the following circumstances is true:
(i) Equity
interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2);
(ii) Less
than twenty-five percent (25%) of each outstanding class of equity interests in Borrower are held by “benefit plan investors”
within the meaning of 29 C.F.R. §2510.3-101(f)(2); or
(iii) Borrower
qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. §2510.3-101(c) or
(e).
5.2.10 Transfers.
(a) Borrower
acknowledges that Lender has examined and relied on the experience of Borrower and its stockholders, 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.
(b) Without
the prior written consent of Lender, not to be unreasonably withheld, delayed or conditioned, and except to the extent otherwise set
forth in this Section 5.2.10, Borrower shall not, and shall not permit any Restricted Party to do any of the following (collectively,
a “Transfer”): (i) sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options with respect
to, or otherwise transfer or dispose of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and
whether or not for consideration or of record) the Property or any part thereof (except in connection with any Condemnation) or any legal
or beneficial interest therein or any interest of Borrower in the Loan or (ii) permit a Sale or Pledge of an interest in any Restricted
Party, other than (A) pursuant to Leases of space in the Improvements to Tenants in accordance with the provisions of Section 5.1.20
hereof and (B) Permitted Transfers. For the avoidance of doubt, in no event shall the Transfers described in clauses (a), (b),
(c), (d), (g), (h), (j) or (m) of the definition of “Permitted Transfers” set forth in Section 1.1
hereof require consent by Lender or, except as otherwise expressly required hereunder, notice to Lender.
(c) A
Transfer shall include (i) an installment sales agreement wherein Borrower agrees to sell the Property or any part thereof for a
price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial part of any Individual Property for
other than actual occupancy by a space Tenant thereunder or a sale, assignment or other transfer of, or the grant of a security interest
in, Borrower’s right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a corporation,
any merger, consolidation division into two (2) or more legal entities or Sale or Pledge of such corporation’s stock or the
creation or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or
consolidation, division into two (2) or more legal entities or the change, removal, resignation or addition of a general partner
or the Sale or Pledge of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest,
or the Sale or Pledge of limited partnership interests or any profits or proceeds relating to such limited partnership interest or the
creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger
or consolidation, division into two (2) or more legal entities or the change, removal, resignation or addition of a managing member
or nonmember manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of a managing member (or
if no managing member, any member) or any profits or proceeds relating to such membership interest, or the Sale or Pledge of nonmanaging
membership interests or the creation or issuance of new nonmanaging membership interests; (vi) if a Restricted Party is a trust
or nominee trust, any merger, consolidation, division into two (2) or more legal entities or the Sale or Pledge of the legal or
beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests; (vii) the removal or
the resignation of the Manager (including an Affiliated Manager) other than in accordance with Section 5.1.22 hereof; or
(viii) Borrower entering into or affirmatively consenting to any PACE Lien.
(d) Notwithstanding
the provisions of this Section 5.2.10, Lender’s consent shall not be required in connection with one or a series of
Transfers, of not more than forty-nine percent (49%) of the direct or indirect ownership interests in a Restricted Party; provided,
however, no such Transfer shall result in the change of Control in Borrower or Guarantor, and as a condition to each such Transfer
that results in the transferee owning ten percent (10%) or more of the direct or indirect ownership interests in a Borrower (which such
transferee did not own 10% or more of the direct or indirect ownership interests in a Borrower prior to such Transfer), (i) Borrower
shall provide to Lender, not less than ten (10) days prior to such transfer, the name and identity of each proposed transferee,
together with the names of its controlling principals, the social security number (if applicable) or employee identification number (if
applicable) of such transferee and controlling principals (if applicable), and such transferee’s and, if applicable, controlling
principal’s home address or principal place of business, and home or business telephone number (if applicable) and (ii) Lender
shall have received Satisfactory Search Results with respect to the proposed transferee and such controlling principals, if applicable;
provided, further, however, the foregoing clause (i) and (ii) shall not be applicable in connection with any transfer (or pledging)
of stock or membership interests in any publicly-held corporation or other publicly-held entity (in each case) which is listed on the
New York Stock Exchange, the NASDAQ Global Select Market or another nationally-recognized stock exchange, or transfer or issuance of
securities of the REIT provided that such securities are listed on the New York Stock Exchange, the NASDAQ Global Select Market or another
nationally recognized stock exchange. If as a result of such Transfer, more than forty-nine percent (49%) of the direct or indirect ownership
interests in Borrower or Guarantor are owned by any Person and its Affiliates that owned less than forty-nine percent (49%) of the aggregate
direct or indirect ownership interests in Borrower or Guarantor as of the Closing Date, and if such Persons are not already included
in the pairings of the Insolvency Opinion most recently delivered in connection with the Loan, Borrower shall, no less than ten (10) days
prior to the effective date of any such Transfer, deliver to Lender an Additional Insolvency Opinion reasonably acceptable to Lender
and (if a Securitization has occurred) the Rating Agencies (which Additional Insolvency Opinion may be on the same form as the Insolvency
Opinion provided on the date hereof). Borrower shall pay any and all reasonable out-of-pocket costs and expenses incurred in connection
with such Transfers (including Lender’s counsel fees and disbursements and any fees and expenses of the Rating Agencies). In addition,
at all times (other than in connection with a Mezzanine Control Event), Guarantor (or a Qualified Equity Holder) must continue to Control
Borrower, and own, directly or indirectly, at least a 51% legal and beneficial interest in Borrower.
(e) Notwithstanding
anything to the contrary contained in this Section 5.2.10, Lender shall not unreasonably withhold its consent to a sale,
assignment, or other transfer of the Property (or such Property remaining after any releases of Individual Properties pursuant to Section 2.5.2
hereof) and the assumption of the Loan by the applicable Transferee provided that (i) Lender receives prior written notice of
such transfer, (ii) no Event of Default has occurred and is continuing both at the time such notice is given and as of the closing
date of such transaction, (iii) no such sale, assignment or other transfer of the Property shall occur on or prior to the Permitted
Prepayment Date (or prior to the date that is ninety (90) days following the Permitted Prepayment Date, if Lender delivers a written
notice to Borrower on or prior to the Permitted Prepayment Date stating that a Securitization is imminently pending), and (iv) the
following conditions precedent are satisfied (or waived in writing by Lender or Servicer):
(i) Borrower
shall pay Lender a transfer fee equal to the lesser of (a) $250,000.00 or (b) one-quarter of one percent (0.25%) of the Outstanding
Principal Balance of the Loan for each such Transfer resulting in the assumption of the Loan;
(ii) Borrower
shall pay any and all reasonable out-of-pocket costs incurred in connection with such Transfer (including Lender’s outside counsel
reasonable fees and disbursements and all recording fees, title insurance premiums and mortgage and intangible taxes and the fees and
expenses of the Rating Agencies pursuant to clause (x) below);
(iii) The
proposed transferee (the “Transferee”) or Transferee’s Principals (directly or indirectly) must have demonstrated
expertise in owning and operating properties similar in location, size, class and operation to each Individual Property (or deliver evidence
that they will engage a Qualified Manager to manage each Individual Property), which expertise shall be reasonably determined by Lender;
(iv) Transferee
and Transferee’s Principals shall, as of the date of such transfer, have an aggregate net worth and liquidity reasonably acceptable
to Lender; with the understanding that if Transferee and Transferee’s Principals would otherwise satisfy the Qualified Replacement
Guarantor or Qualified Equity Holder Thresholds, as the case may be, then this clause (iv) shall be deemed satisfied;
(v) Transferee,
Transferee’s Principals and all other entities which may be owned or Controlled directly or indirectly by Transferee’s Principals
(“Related Entities”) must not have been party to any bankruptcy proceedings, voluntary or involuntary, made an assignment
for the benefit of creditors or taken advantage of any insolvency act, or any act for the benefit of debtors within seven (7) years
prior to the date of the proposed Transfer;
(vi) Transferee
shall assume all of the obligations of Borrower under the Loan Documents in a manner reasonably satisfactory to Lender in all respects,
including by entering into an assumption agreement in form and substance reasonably satisfactory to Lender;
(vii) There
shall be no material litigation or regulatory action pending or threatened in writing against Transferee, Transferee’s Principals
or Related Entities which is not acceptable to Lender in its reasonable discretion and Lender shall have performed searches and/or received
other diligence such that Lender is in compliance with Lender’s then current “know your customer” requirements and
shall have received Satisfactory Search Results for any owner of Transferee which will own a 10% or greater equity interest (directly
or indirectly) in Borrower after giving effect to such transfer;
(viii) Transferee,
Transferee’s Principals and Related Entities shall not have defaulted under its or their obligations with respect to any other
Indebtedness in a manner which is not acceptable to Lender in its reasonable discretion;
(ix) Transferee
and Transferee’s Principals must be able to satisfy all the representations and covenants set forth in Sections 4.1.30,
4.1.35, 5.1.23 and 5.2.9 of this Agreement, no Event of Default shall otherwise occur as a result of such Transfer,
and Transferee and Transferee’s Principals shall deliver (A) all organizational documentation reasonably requested by Lender,
which shall be reasonably satisfactory to Lender and (B) all certificates, agreements, covenants and legal opinions reasonably required
by Lender;
(x) If
required by Lender (and if a Securitization has occurred), Transferee shall be approved by the Rating Agencies selected by Lender, which
approval, if required by Lender, shall take the form of a confirmation in writing from such Rating Agencies to the effect that such Transfer
will not result in a requalification, reduction, downgrade or withdrawal of the ratings in effect immediately prior to such assumption
or transfer for the Securities or any class thereof issued in connection with a Securitization which are then outstanding;
(xi) Prior
to any release of Guarantor, one (1) or more substitute guarantors reasonably acceptable to Lender shall have assumed all of the
liabilities and obligations of Guarantor under the Guaranty and Environmental Indemnity executed by Guarantor or execute a replacement
guaranty and environmental indemnity reasonably satisfactory to Lender; with the understanding that a substitute guarantor that qualifies
as a Qualified Replacement Guarantor will be acceptable to Lender.
(xii) Borrower
shall deliver, at its sole cost and expense, an endorsement (or equivalent) to each Title Insurance Policy insuring the Security Instruments,
as modified by the assumption agreement, as valid first liens on each Individual Property and naming the Transferee as owner of each
Individual Property, which endorsement shall insure that each Individual Property shall not be subject to any additional exceptions or
liens other than those contained in the Title Policies issued on the date hereof and the Permitted Encumbrances;
(xiii) Each
Individual Property shall be managed by Qualified Manager pursuant to a Replacement Management Agreement; and
(xiv) If
requested by Lender, Borrower or Transferee, at its sole cost and expense, shall deliver to Lender an Additional Insolvency Opinion reflecting
such Transfer satisfactory in form and substance to Lender.
(f) Notwithstanding
any provision in this Section 5.2.10 to the contrary, direct or indirect limited partnership, membership or other equity
interests, as applicable, in a Restricted Party may be transferred without Lender’s consent and without application of the fee
set forth in Section 5.2.10(e)(i): (i) among direct or indirect limited partners or members or other equity owners,
as applicable, of a Restricted Party who are direct or indirect limited partners or members or other equity owners, as applicable, of
a Restricted Party as of the date of this Agreement (each a “Current Owner”), and (ii) to immediate family members
(which shall be limited to a spouse, parent, child and grandchild (each, an “Immediate Family Member”)), of any Current
Owner or to trusts formed for the benefit of Immediate Family Members of such Current Owner for bona fide estate planning purposes (each,
an “Additional Permitted Transfer”), provided each of the following conditions is satisfied: (A) no Event of
Default has occurred and is continuing; (B) Lender has received Borrower’s notice of the Additional Permitted Transfer no
less than 30 days prior to the commencement of such transfer, if required by clause (J) below; (C) no Guarantor shall be released
from any guaranty or indemnity agreement by virtue of the Additional Permitted Transfer; (D) Borrower shall be responsible for the
costs and expenses of documenting the Additional Permitted Transfer; (E) Borrower shall reimburse Lender for all actual costs and
expenses incurred by Lender in connection with the Additional Permitted Transfer, whether or not consummated; (F) the Additional
Permitted Transfer will not result in a change of Control of Borrower; (G) upon Lender’s request, Borrower shall furnish Lender
copies of any documentation executed in connection with the Additional Permitted Transfer promptly after execution thereof; (H) the
Additional Permitted Transfer shall not cause Borrower to violate any of the provisions of Section 4.1.30 hereof and, upon
Lender’s request, Borrower shall deliver a written certification of such compliance to Lender; (I) intentionally omitted;
and (J) in connection with any Additional Permitted Transfer that results in the transferee owning ten percent (10%) of the direct
or indirect ownership interests in a Borrower (which such transferee did not own 10% or more of the direct or indirect ownership interests
in a Borrower prior to such Transfer), (i) Borrower shall provide to Lender, not less than thirty (30) days prior to such transfer,
the name and identity of each proposed transferee, together with the names of its controlling principals, the social security number
or employee identification number of such transferee and controlling principals, and such transferee’s and controlling principal’s
home address or principal place of business, and home or business telephone number, (ii) Lender shall have received Satisfactory
Search Results with respect to the proposed transferee and such controlling principals and (iii) if such proposed transferee is
not already included in the pairings of the Insolvency Opinion most recently delivered in connection with the Loan, Lender shall have
received, upon Lender’s request, an Additional Insolvency Opinion reasonably acceptable to Lender.
(g) A
Transfer (a “Qualified Equityholder Transfer”) of direct or indirect ownership interests in Borrower to a Qualified
Equityholder resulting in a change in Control of Borrower may occur at any time and from time-to-time without Lender’s consent,
so long as no Event of Default has occurred and is continuing and the following conditions are satisfied (or waived in writing by Lender
or Servicer): (i) Following the consummation of such Qualified Equityholder Transfer, such Qualified Equityholder shall Control
Borrower (and shall Control Qualified Replacement Guarantor, if the Qualified Equityholder is not also the Qualified Replacement Guarantor),
and such Qualified Replacement Guarantor must own not less than fifty-one percent (51%) of Borrower; (ii) a Qualified Replacement
Guarantor shall deliver to Lender a replacement guaranty and a replacement environmental indemnity agreement each in form and substance
substantially identical to the Guaranty and Environmental Indemnity executed by Guarantor as of the closing of the Loan; (iii) such
Qualified Replacement Guarantor shall have furnished to Lender all appropriate documentation evidencing such Person’s organization
and good standing, and the qualification of the signers to execute the applicable documents on its behalf, which documentation shall
include certified copies of all relevant documents relating to the organization and formation of such Qualified Replacement Guarantor
and of the entities, if any, which are partners or members of the Qualified Replacement Guarantor; (iv) Lender must receive at least
thirty (30) days prior written notice thereof; (v) Borrower shall furnish to Lender an Additional Insolvency Opinion and such other
legal opinions reasonably required by Lender; (vi) Borrower shall furnish one or more Officer’s Certificates representing
and warranting that, following such Qualified Equityholder Transfer, each Borrower continues to comply with the provisions of Section 4.1.30
hereof; (vii) Borrower shall pay to Lender, concurrently with the closing of such Qualified Equityholder Transfer all reasonable
out-of-pocket costs and expenses, including reasonable out-of-pocket attorneys’ fees, incurred by Lender in connection therewith;
and (viii) Borrower shall furnish Lender copies of any documentation executed in connection with the Qualified Equityholder Transfer
promptly after execution thereof.
(h) Notwithstanding
anything to the contrary herein or the other Loan Documents, the Transfer of one hundred percent (100%) of the indirect ownership interests
in Borrower (and the related Transfers of The Necessity Retail REIT, Inc. and Pre-Merger Guarantor and direct and indirect interests
therein, as reflected on the organizational charts attached hereto as Schedule III) in connection with the completion of the merger
transaction described in the Agreement of Merger (the “Global Net Lease Merger”) may occur at any time without Lender’s
consent, provided that: (i) if such Global Net Lease Merger is to occur after March 1, 2024, then Borrower shall give Lender
written notice not less than ten (10) Business Days prior to the consummation of such Global Net Lease Merger and Borrower shall
attach to such notice (A) a certification by Post-Merger Guarantor and Borrower certifying that Post-Merger Guarantor (1) has
not been the subject of any Bankruptcy Action within the previous seven (7) years, (2) has no litigation or regulatory action
pending or threatened in writing against it that would reasonably be expected to have a material adverse effect on Post-Merger Guarantor’s
ability to perform its obligations under the Post-Merger Guaranty or Post-Merger Environmental Indemnity Agreement, and (3) has
never been, and is not Affiliated with any person which has been, indicted or convicted for a Patriot Act offense and is not on any anti-terrorism
list of the United States of America, (B) the results of bankruptcy, litigation, judgment lien, tax lien and OFAC searches that
Post-Merger Guarantor and Borrower certify are consistent with the foregoing certifications in clause (A) above, and (C) a
current financial statement of Post-Merger Guarantor confirming that such entity has a Net Worth in excess of the Net Worth Threshold
and Liquid Assets having a market value of at least the Liquid Assets Threshold; (ii) following the consummation of such Global
Net Lease Merger, (A) Post-Merger Guarantor shall indirectly Control Borrower and own not less than fifty-one percent (51%) of the
indirect ownership interests in Borrower, and (B) other than Post-Merger Guarantor, Global Net Lease Operating Partnership, LP.,
a Delaware limited partnership, Pre-Merger Guarantor, Osmosis Sub I, LLC, a Maryland limited liability company, and GNL Retail GP, LLC,
a Delaware limited liability company, no Person shall, as a result of the Global Net Lease Merger, own a direct or indirect interest
of ten percent (10%) or more in Borrower; (iii) not later than two (2) Business Days following the consummation of the Global
Net Lease Merger, Post-Merger Guarantor shall deliver a written notice to Lender substantially in the form attached hereto as Schedule
XI (the “Global Net Lease Merger Completion Notice”) (A) confirming that the conditions in clause (ii) above
have been satisfied, (B) authorizing Lender to release from escrow, and to date as of the date of the Global Net Lease Merger, each
of the Global Net Lease Merger Documents, which such documents shall be effective from and after such date, and (C) enclosing any
amendments to the organizational and formation documents of Borrower, Pre-Merger Guarantor and Post-Merger Guarantor that have been entered
into since the Closing Date; and (iv) if such Global Net Lease Merger is to occur after August 30, 2024, and if a Securitization
has occurred as of such date, Lender shall have received a written confirmation from the Rating Agencies that the replacement of Pre-Merger
Guarantor with Post-Merger Guarantor shall not result in a downgrade, withdrawal or qualification of the ratings then assigned to the
Securities from each applicable Rating Agency. Following the consummation of the Global Net Lease Merger and the satisfaction of the
foregoing conditions, Pre-Merger Guarantor shall automatically be released from all liability under the Loan Documents. Borrower and
Lender agree and acknowledge that Lender shall hold each of the Global Net Lease Merger Documents in escrow until the consummation of
the Global Net Lease Merger and Borrower’s delivery of the Global Net Lease Merger Completion Notice.
(i) Without
Lender’s prior written consent thereto, in its sole discretion, any Transfer or Permitted Transfer resulting in any direct or indirect
ownership interests in Borrower or the Property being held in any Prohibited Entity/Ownership Structure is prohibited, even if the same
would be otherwise allowed pursuant to this Section 5.2.10, the definition of a Permitted Transfer or any other provision
of any Loan Document.
(j) Other
than in connection with a Transfer pursuant to Section 5.2.10(e) hereof, Borrower’s obligation to reimburse Lender
for any costs and expenses incurred by Lender in connection with a Permitted Transfer pursuant to this Section 5.2.10 shall
not exceed $25,000.00.
(k) 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 Borrower’s Transfer without Lender’s consent, to the extent such consent is required
pursuant to this Agreement. This provision shall apply to every Transfer regardless of whether voluntary or not, or whether or not Lender
has consented to any previous Transfer.
(l) Upon
satisfaction of all the applicable conditions under Section 5.2.10(e) or Section 5.2.10(g) hereof,
as applicable, and the consummation of the Transfer contemplated thereby, Lender shall release Guarantor and (unless Borrower continues
to own the Property after such Transfer) Borrower from liability under the Loan Documents for acts, events, conditions, or circumstances
first occurring or arising after the date of such Transfer.
ARTICLE VI.
INSURANCE; CASUALTY; CONDEMNATION
Section 6.1 Insurance.
(a) Each
Borrower shall obtain and maintain, or cause to be maintained, insurance for each Borrower and each Individual Property providing at
least the following coverages:
(i) special
form (sometimes referred to as “all risk”) insurance including without limitation loss caused by any type of windstorm, windstorm
related perils, “named storms,” and hail on the Improvements and the Personal Property, (A) in an amount equal to one
hundred percent (100%) of the “Full Replacement Cost,” which for purposes of this Agreement means actual replacement value
(exclusive of costs of excavations, foundations, underground utilities and footings) with a waiver of depreciation; (B) containing
an agreed amount endorsement with respect to the Improvements waiving all co-insurance provisions or to be written on a no co-insurance
form; (C) providing for no deductible in excess of One Hundred Thousand and No/100 Dollars ($100,000); provided however with
respect to windstorm/named storm, tornado, hail and earthquake coverages, providing for a deductible not to exceed 5% of the total insurable
value of each Individual Property; and (D) if any of the Improvements or the use of the applicable Individual Property shall at
any time constitute legal non-conforming structures or uses, coverage for loss due to operation of law in an amount equal to the full
Replacement Cost for, loss to the undamaged portion of the Improvements, and ten percent (10%) each for demolition costs and increased
costs of construction. In addition, Borrower shall obtain: (y) if any portion of the Improvements or Personal Property is currently
or at any time in the future located in an area identified by the Secretary of Housing and Urban Development or any successor thereto
as an area having special flood hazards (“SFHA”) pursuant to the National Flood Insurance Act of 1968, the Flood Disaster
Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended, or any successor law (the “Flood
Insurance Acts”) flood hazard insurance for all such Improvements and/or Personal Property located within the SFHA in an amount
equal to (1) the maximum amount of building and/or contents coverage available for the Individual Property, under the Flood Insurance
Acts plus (2) excess flood coverage in such greater amount as Lender shall reasonably require with deductibles no greater than the
maximum limit of coverage available under the Flood Insurance Acts, and (z) earthquake insurance in amounts and in form and substance
reasonably satisfactory to Lender (but in any event, in an amount not less than 150% of the “probable maximum loss”) of the
Individual Property plus business income, in the event the applicable Individual Property is located in seismic zone 3 or 4 and the PML/SEL
of the Property, as determined by an engineer reasonably satisfactory to Lender, is 20% or greater (based on a 475-year return period,
an exposure period of 50 years and a 10% probability of exceedance), provided that the insurance pursuant to clauses (y) and
(z) hereof shall be on terms consistent with the comprehensive all risk insurance policy required under this subsection
(i);
(ii) business
income or rental loss insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by the insurance
provided for in subsections 6.1(a) (i), (iii), (iv) and (ix)herein; (C) in an amount equal to one hundred percent
(100%) of the projected gross revenues from the operation of the applicable Individual Property (on an actual loss sustained basis) for
a period of eighteen (18) months from the date of casualty; and (D) containing an extended period of indemnity endorsement which
provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will
be insured until such income either returns to the same level it was at prior to the loss, or the expiration of 365 days from the date
that the applicable Individual Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding
that the policy may expire prior to the end of such period. The amount of such business income or rental loss insurance shall be determined
prior to the date hereof and at least once each year thereafter based on Borrower’s reasonable estimate of the gross revenues from
the applicable Individual Property for the succeeding twelve (12) month period. Notwithstanding the provisions of Section 2.6.1
hereof, all proceeds payable to Lender pursuant to this subsection shall be held by Lender as additional reserves hereunder pursuant
to Section 7.6 hereof and, in the event that the proceeds of such business income or rental loss insurance are paid in a
lump sum in advance, in the absence of an Event of Default, Lender shall disburse a portion thereof (calculated based upon aggregate
amount of such proceeds divided by the number of Payment Dates occurring during the time period reasonably determined by Lender to be
required to restore the damage caused by the related casualty) on each Payment Date to the Clearing Account; provided, however,
that nothing herein contained shall be deemed to relieve Borrower of its obligations to pay the obligations secured by the Loan Documents
on the respective dates of payment provided for in this Agreement and the other Loan Documents except to the extent such amounts are
actually paid out of the proceeds of such business income insurance;
(iii) at
all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the
applicable Individual Property property and liability coverage form does not otherwise apply, (A) commercial general liability and
umbrella/excess liability insurance, covering claims related to the structural construction, repairs or alterations being made at such
Individual Property which are not covered by or under the terms or provisions of the above mentioned commercial general liability and
umbrella/excess liability insurance policies and (B) the insurance provided for in subsection (i) above written in a
so-called builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant
to subsection (i) above, (3) including permission to occupy the applicable Individual Property and (4) with an
agreed amount endorsement waiving co-insurance provisions;
(iv) comprehensive
boiler and machinery insurance (also known as “equipment breakdown” insurance), if steam boilers, other pressure-fixed vessels,
large air conditioning systems, elevators or other large machinery are in operation, in amounts as shall be reasonably required by Lender
on terms consistent with the commercial property insurance policy required under subsections (i) and (ii) above;
(v) commercial
general liability insurance against claims for personal injury, bodily injury, death, contractual damage or property damage occurring
upon, in or about the applicable Individual Property, such insurance (A) to be on the so-called “occurrence” form with
a combined limit of not less than $2,000,000.00 in the aggregate and $1,000,000.00 per occurrence, per location with deductible acceptable
to Lender (and, if on a blanket policy, containing an “Aggregate Per Location” endorsement); (B) to continue at not
less than the aforesaid limit until required to be changed by Lender in writing by reason of changed economic conditions making such
protection inadequate and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed
operations on an “if any” basis; (3) independent contractors; (4) contractual liability for all insured contracts
and (5) contractual liability covering the indemnities contained in Article 9 of the Security Instrument to the extent the
same is available;
(vi) if
applicable, commercial automobile liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing
minimum limits per occurrence of $1,000,000.00;
(vii) if
Borrower has any employees, worker’s compensation subject to the worker’s compensation laws of the applicable state and employee’s
liability in amounts as shall be reasonably required by Lender;
(viii) umbrella
and excess liability insurance in a combined amount not less than $100,000,000.00 per occurrence, on terms consistent with the commercial
general liability insurance policy required under subsection (v) above, including without limitation supplemental coverage
for employer liability, if applicable, and automobile liability, which umbrella liability coverage shall apply in excess of such supplemental
coverages in clauses (vi) and (vii) above;
(ix) pollution
legal liability insurance against claims for pollution remediation legal liability resulting from existing conditions and new pollution
events related to the Individual Property identified on Schedule IV attached hereto as “Terrell Mill Village – Marietta,
GA” (the “Terrell Mill Property”) in form and substance acceptable to Lender (“PLL Policy”),
such insurance: (A) to be a claims made and reported policy which shall be maintained, either by renewal, extension or replacement,
for a period commencing no later than the Closing Date and continuing through the date that is thirty-six (36) months beyond the Maturity
Date (the “Required PLL Period”); (B) shall have a minimum limit of liability of Twenty Million Dollars ($20,000,000)
for each incident and Twenty Million Dollars ($20,000,000) in the aggregate (or, if the PLL Policy covers the Terrell Mill Property only
(as opposed to multiple Individual Properties), Five Million Dollars ($5,000,000) in the aggregate); (C) shall have a self-insured
retention not to exceed Fifty Thousand Dollars ($50,000) for each incident; (D) shall name Lender as an additional named insured
with its successors and/or assigns as their interests may appear; (E) [intentionally omitted]; and (F) shall, throughout the
Required PLL Period, include the same coverages, terms, conditions and endorsements (and shall not be amended in any way that would have
material or adverse impacts on the Terrell Mill Property, or cancelled, without the prior written consent of Lender) as the PLL Policy
approved at Closing. In the event the limits which are in place as of the Closing Date are eroded by fifty percent (50%) or more due
to claims, Borrower shall reinstate the available environmental coverage limits within sixty (60) days to the limits in place as of the
Closing Date;
(x) the
insurance required under this Section 6.1(a)(i), (ii), (iii), (v) and (viii) above shall cover perils of terrorism
and acts of terrorism and Borrower shall maintain insurance for loss resulting from perils and acts of terrorism (as defined in the Terrorism
Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007 and the Terrorism Risk Insurance
Program Reauthorization Act of 2015, or its subsequent extensions or reauthorizations, or replacement act), on terms (including amounts)
consistent with those required under Sections 6.1(a)(i), (ii), (iii), (v) and (viii) above at all times during the term
of the Loan; provided, however, Borrower shall not be required to spend on terrorism insurance coverage more than two (2) times
the amount of the Insurance Premiums that are payable in respect of the property and rental loss and/or business income insurance required
hereunder (without giving effect to the cost of terrorism, earthquake components and catastrophic premium surcharges of such property
and rental loss and/or business income insurance) on the date of this Agreement, and if the cost of terrorism insurance exceeds such
amount, Borrower shall purchase the maximum amount of terrorism insurance available with funds equal to such amount; and
(xi) upon
sixty (60) days written notice, such other insurance, including without limitation sinkhole or land subsidence insurance, and in such
amounts as Lender from time to time may request against such other insurable hazards which at the time are commonly insured against for
property similar to the applicable Individual Property located in or around the region in which the Property is located.
(b) All
insurance provided for in Section 6.1(a) hereof, shall be obtained under valid and enforceable policies (collectively,
the “Policies” or in the singular, the “Policy”), and shall be subject to the approval of Lender
as to form and substance including without limitation insurance companies, amounts, deductibles, loss payees and insureds. The Policies
shall be issued by financially sound and responsible insurance companies approved to do business in the State and having a rating of
“A-:VIII” or better in the current Best’s Insurance Reports and a claims paying ability rating of “A-”
or better by S&P. Notwithstanding the foregoing, Borrower shall be permitted to maintain a portion of the coverage required hereunder
with insurance companies which do not meet the foregoing requirements (“Otherwise Rated Insurers”) in their current
participation amounts and positions within the syndicate provided that (1) if the Loan is part of a Secondary Market Transaction
where S&P rates any of the issued securities or classes of certificates in connection with such Securitization, Borrower shall replace
the Otherwise Rated Insurers at renewal with insurance companies meeting the rating requirements set forth hereinabove and/or (2) if
the current AM Best rating of any such Otherwise Rated Insurer is withdrawn or downgraded, Borrower shall replace any Otherwise Rated
Insurer with an insurance company meeting the rating requirements set forth hereinabove. The Policies described in Section 6.1
hereof (other than those strictly limited to liability protection) shall designate Lender as mortgagee and loss payee. Prior to the
expiration dates of the Policies theretofore furnished to Lender, certificates of insurance evidencing the Policies (and, upon the written
request of Lender, copies of such Policies) accompanied by evidence satisfactory to Lender of payment of the premiums due thereunder
(the “Insurance Premiums”), shall be delivered by Borrower to Lender. Borrower shall forward to Lender a copy of each
written notice received by Borrower of any proposed or actual modification, reduction or cancellation of any of the Policies or of any
of the coverages afforded under any of the Policies pursuant to Section 6.1(e) hereof.
(c) Any
blanket insurance Policy shall be subject to Lender’s approval and shall provide the same protection as would a separate Policy
insuring only the applicable Individual Property in compliance with the provisions of Section 6.1(a) hereof (any such
blanket policy, an “Acceptable Blanket Policy”). To the extent that the Policies are maintained pursuant to an Acceptable
Blanket Policy that covers more than one location within a one thousand foot radius of the Property (the “Radius”),
the limits of such Acceptable Blanket Policy must be sufficient to maintain coverage as set forth in Section 6.1(a) for
the Property and any and all other locations combined within the Radius that are covered by such blanket policy calculated on a total
insured value basis. Lender shall determine based on a review of the schedule of locations and values that the amount of such coverage
is sufficient in light of the other risks and properties insured under the blanket policy. In addition, prior to Policy renewal, and
on an annual basis thereafter, Borrower shall provide a summary of locations and values, portfolio PML reports for all Properties applicable
to any limit and/or sublimit for the peril of wind/hail (including named storm and storm surge, as applicable) in form and substance
as requested by Lender. Further, any such material changes to (i) the limits under the Policy as of the Closing Date or, (ii) an
aggregation of the insured values covered under the blanket policy, including the reduction or erosion of flood and windstorm/named storm
limits, or (iii) the addition of locations that are subject to the perils of flood and windstorm/named storm, shall be subject to
Lender’s reasonable approval and confirmation from the applicable Rating Agencies.
(d) All
Policies provided for or contemplated by Section 6.1(a) hereof, shall name Borrower as a named insured, and with respect
to liability policies, except for the Policies referenced in Section 6.1(a)(vi) and (vii) of this Agreement,
Lender as the additional insured, as its interests may appear, and in the case of property policies, including without limitation terrorism,
boiler and machinery, loss of rents/business income, flood and earthquake insurance, shall contain a standard non-contributing mortgagee
clause in favor of Lender providing that the loss thereunder shall be payable to Lender.
(e) All
Policies provided for in Section 6.1(a) shall contain clauses or endorsements to the effect that:
(i) With
respect to the Policies of property insurance, contain clauses or endorsements to the effect that no act or negligence of Borrower, or
anyone acting for Borrower, or of any Tenant or other occupant, or failure to comply with the provisions of any Policy, which might otherwise
result in a forfeiture of the insurance or any part thereof, or foreclosure or similar action, shall in any way affect the validity or
enforceability of the insurance insofar as Lender is concerned;
(ii) the
Policies shall not be canceled without at least thirty (30) days written notice to Lender, except at least ten (10) days written
notice to Lender for non-payment of premiums;
(iii) the
issuers thereof shall give written notice to Lender if the issuers elect not to renew the Policy prior to its expiration. If the issuers
cannot or will not provide notice, the Borrower shall be obligated to provide such notice; and
(iv) Lender
shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder.
(f) If
at any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall
have the right to take such action as Lender deems reasonably necessary to protect its interest in the applicable Individual Property,
including the obtaining of such insurance coverage as Lender in its reasonable discretion deems appropriate after five (5) Business
Days’ notice to Borrower if prior to the date upon which any such coverage will lapse or at any time Lender reasonably deems necessary
(regardless of prior notice to Borrower) to avoid the lapse of any such coverage. All premiums incurred by Lender in connection with
such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and, until paid,
shall be secured by the Security Instrument and shall bear interest at the Default Rate.
Section 6.2 Casualty.
If any Individual Property shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”),
Borrower shall give prompt written notice of such damage to Lender as soon as reasonably practicable after Borrower becomes aware of
such Casualty and shall promptly commence or cause to be commenced and diligently prosecute the completion of the Restoration of the
applicable Individual Property pursuant to Section 6.4 hereof as nearly as possible to the condition the applicable Individual
Property was in immediately prior to such Casualty, with such alterations as may be reasonably approved by Lender and otherwise in accordance
with Section 6.4 hereof. Borrower shall pay or cause to be paid all costs of such Restoration whether or not such costs are
covered by insurance. Lender may, but shall not be obligated to make proof of loss if not made promptly by Borrower. In addition, Lender
may participate in any settlement discussions with any insurance companies (and shall approve the final settlement, which approval shall
not be unreasonably withheld or delayed) with respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration
are equal to or greater than the Availability Threshold and Borrower shall deliver to Lender all instruments reasonably required by Lender
to permit such participation.
Section 6.3 Condemnation.
Borrower shall promptly give Lender notice of the commencement of any proceeding for the Condemnation of any Individual Property (or
any portion thereof) as reasonably practicable after Borrower becomes aware of such Condemnation and shall deliver to Lender copies of
any and all papers served in connection with such proceedings. Lender may participate in any such proceedings, and Borrower shall from
time to time deliver to Lender all instruments requested by it to permit such participation. Borrower shall, at its expense, diligently
prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on
or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise
(including any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower shall continue to pay the Debt at
the time and in the manner provided for its payment in the Note and in this Agreement and the Debt shall not be reduced until any Award
shall have been actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or discharge
of the Debt. Lender shall not be limited to the interest paid on the Award by the condemning authority but shall be entitled to receive
out of the Award interest at the rate or rates provided herein or in the Note. If any portion of any Individual Property is taken by
a condemning authority, Borrower shall promptly commence and diligently prosecute the Restoration of the Property pursuant to Section 6.4
hereof and otherwise comply with the provisions of Section 6.4 hereof. If the applicable Individual Property is sold,
through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have the right, whether or not a deficiency
judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt.
Section 6.4 Restoration.
The following provisions shall apply in connection with the Restoration of any Individual Property:
(a) If
the Net Proceeds shall be less than $500,000, Lender shall permit such amount to be paid directly to Borrower and shall waive the requirement
for Lender to be named as “loss payee” with respect to such payment. If the Net Proceeds shall be $500,000 or greater, but
less than the Availability Threshold and the costs of completing the Restoration shall be less than the Availability Threshold, the Net
Proceeds shall be disbursed by Lender to Borrower upon receipt, provided that all of the conditions set forth in Sections 6.4(b)(i)(A),
(C), (D), (E), (F), (G), (H), and (I) hereof are met and Borrower delivers to Lender a written undertaking to expeditiously
commence and to satisfactorily complete with due diligence the Restoration in accordance with the terms of this Agreement.
(b) If
the Net Proceeds are equal to or greater than the Availability Threshold or the costs of completing the Restoration are equal to or greater
than the Availability Threshold, and provided that such Restoration is permitted under applicable Legal Requirements, Lender shall make
the Net Proceeds available for the Restoration in accordance with the provisions of this Section 6.4. The term “Net
Proceeds” for purposes of this Section 6.4 means: (i) the net amount of all insurance proceeds received by
Lender pursuant to Section 6.1 (a)(i), (iv), (ix) (excluding in the case of such item (ix), any such insurance
proceeds payable to third parties for liability or tort claims) and (x) as a result of such damage or destruction, after
deduction of its reasonable out-of-pocket costs and expenses (including reasonable out-of-pocket counsel fees), if any, in collecting
same (“Insurance Proceeds”), or (ii) the net amount of the Award, after deduction of its reasonable out-of-pocket
costs and expenses (including reasonable out-of-pocket counsel fees), if any, in collecting same (“Condemnation Proceeds”),
whichever the case may be.
(i) The
Net Proceeds shall be made available to Borrower for Restoration provided that each of the following conditions are met (or waived in
writing by Lender or Servicer):
(A) no
Event of Default shall have occurred and be continuing;
(B) (1) in
the event the Net Proceeds are Insurance Proceeds, less than forty percent (40%) of the total floor area of the Improvements on the applicable
Individual Property has been damaged, destroyed or rendered unusable as a result of such Casualty or (2) in the event the Net Proceeds
are Condemnation Proceeds, less than fifteen percent (15%) of the land constituting the applicable Individual Property is taken, and
such land is located along the perimeter or periphery of the applicable Individual Property, and no portion of the Improvements is located
on such land;
(C) Borrower
and/or Tenant, as applicable under the respective Lease, shall make all necessary repairs and restorations thereto (utilizing the Net
Proceeds and any applicable Net Proceeds Deficiency), and (1) Leases demising in the aggregate a percentage amount equal to or greater
than the Rentable Space Percentage of the total rentable space in the applicable Individual Property which has been demised under executed
and delivered Leases in effect as of the date of the occurrence of such Casualty or Condemnation, whichever the case may be, shall remain
in full force and effect during and after the completion of the Restoration, notwithstanding the occurrence of any such Casualty or Condemnation;
provided, however, this clause shall not apply if any Leases were naturally expiring by their terms during the period of
Restoration, (2) Lender is satisfied in its reasonable judgment that the net operating income for the Individual Property will be
equal to or greater than that which exists prior to the Casualty or Condemnation, as applicable, prior to the expiration of the insurance
coverage referred to in Section 6.1(a)(ii), or (3) the Debt Service Coverage Ratio is reasonably expected to be 2.5:1.0
or greater after the Restoration; provided, however, that Borrower shall have the right to satisfy the foregoing test in
this Section 6.4(b)(i)(C) by prepaying, in accordance with the requirements of Section 2.3.1 hereof, a portion
of the outstanding principal balance of the Loan in an amount sufficient to cause such Debt Service Coverage Ratio test to be satisfied.
The term “Rentable Space Percentage” means (1) in the event the Net Proceeds are Insurance Proceeds, a percentage
amount equal to eighty percent (80%) and (2) in the event the Net Proceeds are Condemnation Proceeds, a percentage amount equal
to eighty percent (80%);
(D) Borrower
shall commence the Restoration as soon as reasonably practicable but in no event later than one hundred twenty (120) days after such
Casualty or Condemnation, whichever the case may be, occurs and shall diligently pursue the same to satisfactory completion (for the
purposes of this clause the filing of an application for a building permit in accordance with all Legal Requirements shall be deemed
to be commencement of the Restoration provided Borrower diligently pursues obtaining such permit and promptly commences the physical
Restoration following the issuance of the building permit);
(E) Lender
shall be satisfied that any operating deficits, including all scheduled Monthly Debt Service Payment Amounts, which will be incurred
with respect to the Property as a result of the occurrence of any such Casualty or Condemnation, whichever the case may be, will be covered
out of (1) the Net Proceeds, (2) the insurance coverage referred to in Section 6.1(a)(ii) hereof, if applicable,
or (3) by other funds of Borrower;
(F) Lender
shall be satisfied that the Restoration will be completed on or before the earliest to occur of (1) six (6) months prior to
the Maturity Date, (2) the earliest date required for such completion under the terms of any Lease related to the Individual Property
which suffered the Casualty or Condemnation, (3) such time as may be required under all applicable Legal Requirements in order to
repair and restore the applicable Individual Property to the condition it was in immediately prior to such Casualty or to as nearly as
possible the condition it was in immediately prior to such Condemnation, as applicable, or (4) the expiration of the insurance coverage
referred to in Section 6.1(a)(ii) hereof;
(G) the
Restoration is permitted under all applicable Legal Requirements and the Property and the use thereof after the Restoration will be in
compliance with and permitted under all applicable Legal Requirements, subject to any existing non-conforming status that is not prohibited
in relation to the Restoration;
(H) the
Restoration shall be done and completed by Borrower in compliance with all applicable Legal Requirements;
(I) such
Casualty or Condemnation, as applicable, does not result in the permanent loss of access to the applicable Individual Property or the
Improvements;
(J) intentionally
omitted;
(K) Borrower
shall deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s architect or engineer
stating the entire cost of completing the Restoration, which budget shall be subject to Lender’s approval; and
(L) the
Net Proceeds together with any cash or cash equivalent (including any Letter of Credit) deposited by Borrower with Lender are sufficient
in Lender’s reasonable discretion to cover the cost of the Restoration.
(ii) The
Net Proceeds shall be held by Lender in an Eligible Account and, until disbursed in accordance with the provisions of this Section 6.4(b),
shall constitute additional security for the Debt and Other Obligations under the Loan Documents. The Net Proceeds shall be disbursed
by Lender to, or as directed by, Borrower from time to time during the course of the Restoration, upon receipt of evidence reasonably
satisfactory to Lender that (A) all materials installed and work and labor performed (except to the extent that they are to be paid
for out of the requested disbursement) in connection with the Restoration have been paid for in full, and (B) there exist no notices
of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances
of any nature whatsoever on the applicable Individual Property which have not either been fully bonded to the reasonable satisfaction
of Lender and discharged of record or in the alternative fully insured to the reasonable satisfaction of Lender by the title company
issuing the applicable Title Insurance Policy.
(iii) All
plans and specifications required in connection with the Restoration shall be subject to prior review and acceptance, not to be unreasonably
withheld, delayed or conditioned, in all respects by Lender and by an independent consulting engineer selected by Lender (the “Casualty
Consultant”). Lender shall have the use of the plans and specifications and all permits, licenses and approvals required or
obtained in connection with the Restoration. The identity of the contractors, subcontractors and materialmen engaged in the Restoration,
as well as the contracts under which they have been engaged, shall be subject to prior review and approval by Lender and the Casualty
Consultant, not to be unreasonably withheld, delayed or conditioned. All costs and expenses incurred by Lender in connection with making
the Net Proceeds available for the Restoration including reasonable outside counsel fees and disbursements and the Casualty Consultant’s
fees, shall be paid by Borrower.
(iv) In
no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred
from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Casualty Retainage.
The term “Casualty Retainage” means an amount equal to ten percent (10%) of the costs actually incurred for work in
place as part of the Restoration, as certified by the Casualty Consultant, until the Restoration has been completed until the Restoration
is fifty percent (50%) complete and five percent (5%) thereafter. The Casualty Retainage shall in no event, and notwithstanding anything
to the contrary set forth above in this Section 6.4(b), be less than the amount actually held back by Borrower from contractors,
subcontractors and materialmen engaged in the Restoration. The Casualty Retainage shall not be released until the Casualty Consultant
certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 6.4(b) and
that all approvals necessary for the re-occupancy and use of the Property have been obtained from all appropriate governmental and quasi-governmental
authorities, and Lender receives evidence reasonably satisfactory to Lender that the costs of the Restoration have been paid in full
or will be paid in full out of the Casualty Retainage; provided, however, that Lender shall release the portion of the Casualty Retainage
being held with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the Casualty
Consultant certifies to Lender that the contractor, subcontractor or materialman has completed all work and has supplied all materials
in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s contract, the contractor, subcontractor
or materialman delivers the lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or materialman
as may be reasonably requested by Lender or by the title company issuing the Title Insurance Policy, and Lender receives evidence reasonably
acceptable to Lender evidencing that the applicable Title Insurance Policy continues to insure the priority of the lien of the applicable
Security Instrument over any mechanic’s or materialmen’s lien related to the Restoration. If required by Lender, the release
of any such portion of the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance
bond with respect to the contractor, subcontractor or materialman.
(v) Lender
shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month.
(vi) If
at any time the Net Proceeds or the undisbursed balance thereof shall not, in the reasonable opinion of Lender in consultation with the
Casualty Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to be incurred
in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net Proceeds Deficiency”)
with Lender before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender shall
be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions applicable
to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 6.4(b) shall constitute additional
security for the Debt and Other Obligations under the Loan Documents.
(vii) Provided
no continuing Event of Default shall then exist, after the Casualty Consultant certifies to Lender that the Restoration has been completed
in accordance with the provisions of this Section 6.4(b), and the receipt by Lender of evidence satisfactory to Lender in
its reasonable discretion that all costs incurred in connection with the Restoration have been paid in full, the excess, if any, of the
Net Proceeds (and the remaining balance, if any, of the Net Proceeds Deficiency) deposited with Lender shall be (1) if a Cash Sweep
Period then exists, deposited in the Cash Management Account to be disbursed in accordance with this Agreement, and (2) if no Cash
Sweep Period then exists, disbursed to Borrower.
(c) All
Net Proceeds not required (i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds
pursuant to Section 6.4(b)(vii) hereof may be retained and applied by Lender toward the payment of the Debt in accordance
with Section 2.3.2 hereof, whether or not then due and payable in such order, priority and proportions as Lender in its reasonable
discretion shall deem proper, or, at the discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such
purposes as Lender shall approve, in its reasonable discretion.
(d) In
the event of foreclosure of the Security Instrument, or other transfer of title to the Property (or any portion thereof) in extinguishment
in whole or in part of the Debt all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in
force concerning the Property and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or Lender
or other transferee in the event of such other transfer of title.
(e) Notwithstanding
anything contained herein or in any other Loan Document, if Lender applies any Net Proceeds to the repayment of the Debt and such Net
Proceeds are not sufficient to obtain the release of the Individual Property subject to the Casualty or Condemnation, Borrower may, in
its sole discretion, repay a portion of the Loan in an amount equal to the difference between the applicable Adjusted Release Amount
and the Net Proceeds applied to repay the Loan, and satisfy all of the other conditions for Partial Release contained in Section 2.5.2
of this Agreement, Lender shall release the lien of the Security Instrument from the applicable Individual Property, and no Yield
Maintenance Premium or similar sum shall be due in connection therewith.
(f) Notwithstanding
anything to the contrary set forth in this Agreement, with respect to a Casualty or a Condemnation, for so long as the Loan or any portion
thereof is included in a Securitization, if the loan to value ratio (such value to be determined by the Lender in its sole discretion
based on a commercially reasonable valuation method using only the portion of the Property which constitutes acceptable real estate collateral
under the Code for a REMIC Trust) immediately after such Condemnation or Casualty, as the case may be, and prior to any Restoration (but
taking into account any planned Restoration of the Property as if such planned Restoration were completed) is more than one hundred and
twenty-five percent (125%), the principal balance of the Loan must be paid down by “qualified amount” as that term is defined
in the IRS Revenue Procedure 2010-30, as the same may be amended, modified or supplemented from time to time (and no Yield Maintenance
Premium or any other prepayment premium or fee shall be due in connection therewith), in order to meet the foregoing loan to value ratio
unless Borrower delivers to Lender an opinion of counsel, acceptable to Lender in its reasonable discretion, that if such amount is not
paid, such Securitization will not fail to meet applicable federal income tax qualification requirements or subject such Securitization
to tax; provided, however, that if the immediately preceding provisions are no longer applicable under legal requirements relating to
a REMIC Trust, Borrower shall comply with all legal requirements relating to a Casualty or Condemnation then in effect.
ARTICLE VII.
RESERVE FUNDS
Section 7.1 Required
Repairs.
7.1.1 Deposits.
Borrower shall perform, or cause to be performed, the repairs at the Property, as more particularly set forth on Schedule II hereto
(such repairs hereinafter referred to as “Required Repairs”). Borrower shall complete the Required Repairs on or before
the required deadline for each repair as set forth on Schedule II, each as extended as a result of Force Majeure. Upon the occurrence
and during the continuance of an Event of Default, Lender, at its option, may withdraw all Required Repair Funds from the Required Repair
Account and Lender may apply such funds either to completion of the Required Repairs at the Property or toward payment of the Debt in
such order, proportion and priority as Lender may determine in its discretion. Lender’s right to withdraw and apply Required Repair
Funds shall be in addition to all other rights and remedies provided to Lender under this Agreement and the other Loan Documents; provided,
however, any unapplied portions of the Required Repair Funds after the cessation of such Event of Default shall promptly be returned
by Lender to Borrower or into the Required Repair Account, as the case may be. On the Closing Date, Borrower shall deposit with Lender
the amount for the Property set forth on such Schedule II hereto to perform the Required Repairs for the Property. Amounts so
deposited with Lender shall be held by Lender in accordance with Section 7.6 hereof. Amounts so deposited shall hereinafter
be referred to as Borrower’s “Required Repair Fund” and the account in which such amounts are held shall hereinafter
be referred to as Borrower’s “Required Repair Account.” Anything contained herein to the contrary notwithstanding,
with respect to any Required Repairs that a Tenant is obligated to perform pursuant to its Lease, Borrower’s obligation under this
Section 7.1 shall be limited to using commercially reasonable efforts to cause such Tenant to perform the applicable Required
Repair, and the failure to make the Required Repairs shall not, on its own, result in an Event of Default.
7.1.2 Release
of Required Repair Funds. Lender shall disburse to Borrower the Required Repair Funds from the Required Repair Account from time
to time upon satisfaction by Borrower of each of the following conditions: (a) Borrower shall submit a written request for payment
to Lender at least twenty (20) days prior to the date on which Borrower requests such payment be made and specifies the Required Repairs
(or the completed portion thereof) to be paid, (b) on the date such request is received by Lender and on the date such payment is
to be made, no Event of Default shall exist and remain uncured, (c) Lender shall have received an Officers’ Certificate (i) stating
that all Required Repairs (or the completed portion thereof) to be funded by the requested disbursement have been completed in good and
workmanlike manner and in accordance with all applicable federal, state and local laws, rules and regulations, such certificate
to be accompanied by a copy of any license, permit or other approval by any Governmental Authority required to commence or complete such
Required Repairs (or the completed portion thereof), (ii) identifying each Person that supplied materials or labor in connection
with the Required Repairs (or the completed portion thereof) to be funded by the requested disbursement, and (iii) stating that
each such Person has been paid in full or will be paid in full upon such disbursement and (d) if the requested disbursement is for
a sum in excess of $100,000 for any applicable Individual Property, at Lender’s option (and following delivery of Lender’s
written request therefor), Lender shall have received a title search for the applicable Individual Property indicating that the applicable
Individual Property is free from all liens, claims and other encumbrances not previously approved by Lender. Lender shall not be required
to make disbursements from the Required Repair Account with respect to the Property (i) more than once a month and (ii) unless
such requested disbursement is in an amount greater than $25,000.00 (or a lesser amount if the total amount in the Required Repair Account
is less than $25,000.00 in which case only one disbursement of the amount remaining in the account shall be made) and such disbursement
shall be made only upon satisfaction of each condition contained in this Section 7.1.2. At Borrower’s election, Borrower
may either (x) pay all invoices in connection with the Required Repairs with respect to each request for disbursement prior to submitting
such request for disbursement from the Required Repair Account or, (y) request Lender to issue joint checks, payable to Borrower
and the contractor, supplier, materialman, mechanic, subcontractor or other party to whom payment is due in connection with Required
Repair work.
Section 7.2 Tax
and Insurance Escrow Fund.
(a) Subject
to the terms of Section 7.2(b) and (c) hereof, Borrower shall pay to Lender (A) on the Closing Date an initial
deposit and (B) on each Payment Date thereafter (i) one-twelfth (1/12) of the Taxes and Other Charges that Lender reasonably
estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such
Taxes and Other Charges at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth (1/12) of the Insurance
Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the Policies upon the expiration thereof in
order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration
of the Policies (said amounts in (A) and (B) above hereinafter called the “Tax and Insurance Escrow Fund”
and the account in which such sums are held shall hereinafter be referred to as the “Tax and Insurance Escrow Account”).
Lender shall apply the Tax and Insurance Escrow Fund to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant
to Section 5.1.2 hereof and under the Security Instrument. In making any payment relating to the Tax and Insurance Escrow
Fund, Lender may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes)
or insurer or agent (with respect to Insurance Premiums), without inquiry into the accuracy of such bill, statement or estimate or into
the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount of the Tax and Insurance Escrow
Fund shall exceed the amounts due for Taxes, Other Charges and Insurance Premiums pursuant to Section 5.1.2 hereof, Lender
shall, in its discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance
Escrow Fund. If at any time Lender reasonably determines that the Tax and Insurance Escrow Fund is not or will not be sufficient to pay
Taxes, Other Charges and, if Borrower is required to deposit sums in the Tax and Insurance Escrow Fund with respect to Insurance Premium, Insurance
Premiums by the date set forth in clause (B) above, Lender shall notify Borrower in writing of such determination and Borrower shall
increase its monthly payments to Lender by the amount that Lender reasonably estimates is sufficient to make up the deficiency at least
thirty (30) days prior to the due date of the Taxes and Other Charges or, if applicable, thirty (30) days prior to expiration of the
Policies, as the case may be. Notwithstanding the foregoing, in the event of a completed Partial Release, upon Borrower’s written
request, Lender shall recalculate the monthly deposit required pursuant to (B) above taking into account the Individual Properties
securing the Loan following such completed Partial Release and the Taxes and Other Charges that Lender reasonably estimates will be payable
during the next ensuing twelve (12) months with respect to such Individual Properties.
(b) Notwithstanding
the foregoing or anything to the contrary in this Agreement, Lender shall waive the requirement set forth herein for Borrower to make
deposits for the payment of Insurance Premiums for an Individual Property into the Tax and Insurance Escrow Fund so long as:
(i) Borrower
maintains blanket policies of insurance in accordance with Section 6.1 hereof, unless Lender elects to apply such provisions
following (1) the issuance by any insurer or its agent of any notice of cancellation, termination, or lapse of any insurance coverage
required under Section 6.1 hereof, (2) any cancellation, termination, or lapse of any insurance coverage required under
Section 6.1 hereof whether or not any notice is issued, (3) Lender having not received from Borrower evidence of insurance
coverages as required by and in accordance with the terms of Section 6.1 hereof, or (4) the occurrence of any Event
of Default; or
(ii) all
of the following conditions remain satisfied: (i) no Event of Default has occurred and is continuing, (ii) such Individual
Property is leased to a single Tenant, (iii) the Tenant at such Individual Property is required pursuant to the applicable Lease
to maintain, and is in fact maintaining, insurance for the Individual Property that complies with the requirements set forth in Section 6.1
hereof, (iv) Borrower provides to Lender satisfactory evidence on an ongoing basis that all Insurance Premiums with regard to
the insurance required to be maintained pursuant to this Agreement have been paid for the relevant period with respect to such Individual
Property no later than thirty (30) days prior to the expiration date of such insurance, (v) the Lease at such Individual Property
is in full force and effect and there is no default thereunder and (vi) no Cash Sweep Period is in effect. If any condition in the
preceding sentence has not been satisfied, Borrower shall be required to commence making monthly deposits with respect solely to the
applicable Individual Property for Insurance Premiums in accordance with the first sentence of this Section 7.2.
(c) Notwithstanding
the foregoing or anything to the contrary in this Agreement, Lender shall waive the requirement set forth herein for Borrower to make
deposits for the payment of Taxes and Other Charges for an Individual Property into the Tax and Insurance Escrow Fund so long as (i) no
Event of Default has occurred and is continuing, (ii) such Individual Property is leased to a single Tenant, (iii) the Tenant
at such Individual Property occupies one or more entire tax parcel(s) and is required pursuant to the applicable Lease to pay all
Taxes and Other Charges due with respect to the Individual Property directly to the applicable taxing authorities and actually does pay
such Taxes and Other Charges directly, (iv) Borrower provides to Lender satisfactory evidence on an ongoing basis of payment of
Taxes and Other Charges with respect to such Individual Property prior to the date such Taxes and Other Charges become delinquent, (v) the
Lease at such Individual Property is in full force and effect and there is no default thereunder and (vi) no Cash Sweep Period is
in effect. If any condition in the preceding sentence has not been satisfied, Borrower shall be required to commence making monthly deposits
with respect solely to the applicable Individual Property for Taxes and Other Charges in accordance with the first sentence of this Section 7.2.
Section 7.3 Replacements
and Replacement Reserve.
7.3.1 Replacement
Reserve Fund. On each Payment Date during the continuance of a Cash Sweep Period, Borrower shall deposit with Lender (subject
to Section 2.6.3 hereof) an amount equal to (a) $0.25 multiplied by the total number of rentable square feet of the
Improvements located at the Property at the time of such Cash Sweep Period, (b) divided by twelve (12) (the “Replacement
Reserve Monthly Deposit”), to be used by Borrower for replacements and repairs made to any Individual Property in accordance
with this Agreement (collectively, the “Replacements”). In the event of a Partial Release, the Replacement Reserve
Monthly Deposit shall be reduced by an amount equal to (i) $0.25 multiplied by the total number of square feet of the Improvements
located at the Individual Property that is the subject of such Partial Release, (ii) divided by twelve. Amounts so deposited shall
hereinafter be referred to as Borrower’s “Replacement Reserve Fund” and the account in which such amounts are
held shall hereinafter be referred to as Borrower’s “Replacement Reserve Account.”
7.3.2 Disbursements
from Replacement Reserve Account. Lender shall make disbursements from the Replacement Reserve Account to pay Borrower only for
the costs of the Replacements. Lender shall not be obligated to make disbursements from the Replacement Reserve Account to reimburse,
or pay, Borrower for the costs of routine maintenance to the Property (which does not include Extraordinary Expenses), replacements of
inventory or for costs which are to be reimbursed from Rollover Reserve Funds or Required Repair Funds. Lender shall disburse Replacement
Reserve Funds from the Replacement Reserve Account from time to time upon satisfaction by Borrower (or waiver in writing by Lender or
Servicer) of each of the following conditions: (a) Borrower shall submit a written request for payment to Lender at least twenty
(20) days prior to the date on which Borrower requests such payment be made (other than in connection with any emergency Replacements,
for which the minimum notice period shall be waived), (b) on the date such request is received by Lender and on the date such payment
is to be made, no Event of Default shall exist and remain uncured, (c) Lender shall have received a Disbursement Certification and
Schedule for the requested disbursement, and (d) with respect to any requested disbursement in excess of $100,000, (i) Lender
shall have received: (A) copies of appropriate lien waivers or conditional lien waivers (conditioned only on payment) reasonably
satisfactory to Lender with respect to any contractor, subcontractor and/or materialman whose proposed payment (or Borrower reimbursement,
if applicable) is in excess of $100,000, and (B) if required by Lender (following delivery of Lender’s written request therefor),
a title search for the applicable Individual Property indicating that such Individual Property is free from all Liens, claims and other
encumbrances not previously approved by Lender (other than Permitted Encumbrances), and (ii) Lender may require an inspection of
the applicable Individual Property, at Borrower’s reasonable expense, by an appropriate independent qualified professional selected
by Lender prior to making such disbursement in order to verify completion of the Replacements (or the completed portion thereof) for
which reimbursement is sought. Lender shall not be required to make disbursements from the Replacement Reserve Account (i) more
than once a month and (ii) unless such requested disbursement is in an amount greater than $25,000.00 (or a lesser amount if the
total amount in the Replacement Reserve Account is less than $25,000.00), in which case only one disbursement of the amount remaining
in the account shall be made and such disbursement shall be made only upon satisfaction (or waiver in writing by Lender or Servicer)
of each condition contained in this Section 7.3.2. At Borrower’s election, Borrower shall either (x) pay all invoices
in connection with the Replacements work with respect to each request for disbursement prior to submitting such request for disbursement
from the Replacement Reserve Account or, (y) request Lender to issues joint checks, payable to Borrower and the contractor, supplier,
materialman, mechanic, subcontractor or other party to whom payment is due in connection with the Replacements work.
7.3.3 Performance
of Replacements. Borrower shall make, or shall cause to be made, Replacements when required in order to keep each Individual
Property in condition and repair consistent with other comparable properties in the same market segment in the metropolitan area in which
the applicable Individual Property is located, and to keep each Individual Property or any portion thereof from deteriorating. Borrower
shall complete all Replacements in a good and workmanlike manner as soon as practicable following the commencement of making each such
Replacement.
7.3.4 Failure
to Make Replacements.
(a) Upon
the occurrence and during the continuance of an Event of Default, Lender may use the Replacement Reserve Fund (or any portion thereof)
for any purpose, including completion of the Replacements as provided in Section 7.3.3, or for any other repair or replacement
to the Property or toward payment of the Debt in such order, proportion and priority as Lender may determine in its discretion. Lender’s
right to withdraw and apply the Replacement Reserve Fund shall be in addition to all other rights and remedies provided to Lender under
this Agreement and the other Loan Documents.
(b) Nothing
in this Agreement shall obligate Lender to apply all or any portion of the Replacement Reserve Fund on account of an Event of Default
to payment of the Debt or in any specific order or priority.
7.3.5 Balance
in the Replacement Reserve Account. The insufficiency of any balance in the Replacement Reserve Account shall not relieve Borrower
from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents.
Section 7.4 Rollover
Reserve.
7.4.1 Deposits
to Rollover Reserve Fund. On each Payment Date during the continuance of a Cash Sweep Period, Borrower shall deposit with Lender
(subject to Section 2.6.3 hereof) an amount equal to (a) $1.50 multiplied by the total number of rentable square feet
of the Improvements located at the Property at the time of such Cash Sweep Period, (b) divided by twelve (12) (the “Rollover
Reserve Monthly Deposit”), which amounts shall be deposited with and held by Lender for tenant improvement and leasing commission
obligations incurred following the date hereof in connection with Leases entered into in accordance with the terms hereof (the “TILC
Obligations”). In the event of a Partial Release, the Rollover Reserve Monthly Deposit shall be reduced by an amount equal
to (i) $1.50 multiplied by the total number of rentable square feet of the Improvements located at the Individual Property that
is the subject of such Partial Release, (ii) divided by twelve. Amounts so deposited shall hereinafter be referred to as the “Rollover
Reserve Fund” and the account to which such amounts are held shall hereinafter be referred to as the “Rollover Reserve
Account.” Upon the occurrence and during the continuance of a Cash Sweep Period, Borrower shall also pay to Lender, for deposit
into the Rollover Reserve Account, all fees and other like payments (but not amounts that would be considered Rents) made to Borrower
in connection with or relating to the rejection, buy-out, termination, surrender or cancellation of any Lease.
7.4.2 Disbursements
from Rollover Reserve Account.
(a) Lender
shall make disbursements from the Rollover Reserve Account to pay Borrower only for the costs of TILC Obligations. Subject to Section 7.4.2(b),
Lender shall disburse Rollover Reserve Funds from the Rollover Reserve Account from time to time upon satisfaction by Borrower (or waiver
in writing by Lender or Servicer) of each of the following conditions: (a) Borrower shall submit a written request for payment to
Lender at least twenty (20) days prior to the date on which Borrower requests such payment be made, (b) on the date such request
is received by Lender and on the date such payment is to be made, no Event of Default shall exist and remain uncured, (c) Lender
shall have received a Disbursement Certification and Schedule for the requested disbursement, and (d) with respect to any requested
disbursement in excess of $100,000, (i) Lender shall have received: (A) copies of appropriate lien waivers or conditional lien
waivers (conditioned only on payment) reasonably satisfactory to Lender with respect to any contractor, subcontractor and/or materialman
whose proposed payment (or Borrower reimbursement, if applicable) is in excess of $100,000, and (B) if reasonably required by Lender
(following delivery of Lender’s written request therefor), a title search for the applicable Individual Property indicating that
such Individual Property is free from all Liens, claims and other encumbrances not previously approved by Lender (other than Permitted
Encumbrances), and (ii) Lender may require an inspection of the applicable Individual Property, at Borrower’s reasonable expense,
by an appropriate independent qualified professional selected by Lender prior to making such disbursement in order to verify completion
of the TILC Obligations (or the completed portion thereof) for which reimbursement is sought. At Borrower’s election, Borrower
shall either (x) pay all invoices in connection with the TILC Obligations with respect to each request for disbursement prior to
submitting such request for disbursement from the Rollover Reserve Account or, (y) request Lender to issue joint checks, payable
to Borrower and the contractor, supplier, materialman, mechanic, subcontractor or other party to whom payment is due in connection with
TILC Obligations. Lender shall not be required to make disbursements from the Rollover Reserve Account with respect to the Property (i) more
than once a month and (ii) unless such requested disbursement is in an amount greater than $25,000.00 (or a lesser amount if the
total amount in the Rollover Reserve Account is less than $25,000.00 in which case only one disbursement of the amount remaining in the
account shall be made) and such disbursement shall be made only upon satisfaction of each condition contained in this Section 7.4.2(a) or
Section 7.4.2(b) below.
(b) Anything
contained in Section 7.4.2(a) above notwithstanding, with respect to TILC Obligations for which the applicable Tenant
(rather than Borrower) is obligated to perform the work, at Borrower’s election, Borrower shall either (x) pay all invoices
in connection with such TILC Obligations, or pay the amount of such TILC Obligations directly to the applicable tenant (in accordance
with what the applicable Lease requires), prior to submitting a request for disbursement from the Rollover Reserve Account or, (y) request
Lender to issue joint checks, payable to Borrower and the contractor, supplier, materialman, mechanic, subcontractor, tenant or other
party to whom payment is due in connection with TILC obligations. Lender shall disburse Rollover Reserve Funds from the Rollover Reserve
Account with respect to TILC Obligations for which the applicable Tenant (rather than Borrower) is obligated to perform the work from
time to time upon satisfaction by Borrower (or waiver by Lender or Servicer) of each of the following conditions: (a) Borrower shall
submit a written request for payment to Lender at least twenty (20) days prior to the date on which Borrower requests such payment be
made and specifies the aggregate amount requested and the TILC Obligations (or the completed portion thereof) to be reimbursed and (b) on
the date such request is received by Lender and on the date such payment is to be made, no Event of Default shall exist and remain uncured.
Section 7.5 Excess
Cash Flow Reserve Fund.
7.5.1 Deposits
to Excess Cash Flow Reserve Account. During a Cash Sweep Period, subject to Section 7.5.3 hereof, all Excess Cash
Flow shall be deposited with and held by Lender as additional security for the Loan. Amounts so held shall be hereinafter referred to
as the “Excess Cash Flow Reserve Fund” and the account to which such amounts are held shall hereinafter be referred
to as the “Excess Cash Flow Reserve Account.”
7.5.2 Release
of Excess Cash Flow Reserve Funds. Upon the occurrence of a Cash Sweep Event Cure, so long as no Event of Default or other uncured
Cash Sweep Event then exists, all Excess Cash Flow Reserve Funds, Tax and Insurance Escrow Funds, Replacement Reserve Funds, Rollover
Reserve Funds and other Reserve Funds (other than any outstanding Hobby Lobby Replacement Tenant Reserve Funds) that would have otherwise
not been collected had a Cash Sweep Period not been in effect shall be disbursed to Borrower, subject to Lender’s right to retain
the Hobby Lobby Reserve Funds Cap amount (or the applicable Hobby Lobby Letter of Credit) in accordance with the terms of Section 7.5.3
hereof. Any Excess Cash Flow Reserve Funds (and all other Reserve Funds and all other funds in the Accounts) remaining after the
Debt has been paid in full shall be paid to Borrower.
7.5.3 Hobby
Lobby Reserve Funds Cap Cures.
(a) If
the applicable Cash Sweep Event Cure was caused by a Hobby Lobby Reserve Funds Cap Cure as the result of Borrower making a cash deposit
(under clause (i) of the definition of “Hobby Lobby Reserve Funds Cap Cure”) or as a result of the amount in the Excess
Cash Flow Reserve Account at any time exceeding the Hobby Lobby Reserve Funds Cap (under clause (ii) of the definition of “Hobby
Lobby Reserve Funds Cap Cure”), then (1) Lender may maintain an amount equal to the Hobby Lobby Reserve Funds Cap (as the
same may be reduced from time to time in accordance with clause (ii) of the definition of “Hobby Lobby Reserve Funds Cap”)
in the Excess Cash Flow Reserve Account, (2) the amounts held in such Excess Cash Flow Reserve Account shall be made available to
Borrower for TILC Obligations under any Hobby Lobby Replacement Leases (subject to Borrower’s satisfaction of the applicable disbursement
conditions under Section 7.4.2 hereof) and to satisfy any requirements hereunder for depositing amounts into the Free Rent
Reserve Account or the Outstanding TI/LC Reserve Account with respect to any Hobby Lobby Replacement Leases, and (3) Lender shall
return any remaining funds in the Excess Cash Flow Reserve Account (other than any outstanding Hobby Lobby Replacement Tenant Reserve
Funds) to Borrower after the applicable Cash Sweep Event would have been cured by another method (or, if earlier, after the Debt has
been paid in full).
(b) If
the applicable Cash Sweep Event Cure was caused by a Hobby Lobby Reserve Funds Cap Cure as the result of Borrower depositing a Hobby
Lobby Letter of Credit with Lender (under clause (iii) of the definition of “Hobby Lobby Reserve Funds Cap Cure”), then
(1) Lender may hold such Hobby Lobby Letter of Credit (as the same may be replaced from time to time in connection with any reduction
of the Hobby Lobby Reserve Funds Cap amount in accordance with clause (ii) of the definition of “Hobby Lobby Reserve Funds
Cap”) as additional collateral for the Loan, and (2) Lender shall return such Hobby Lobby Letter of Credit to Borrower after
the applicable Cash Sweep Event would have been cured by another method (or, if earlier, after the Debt has been paid in full).
Section 7.6 Reserve
Funds, Generally.
(a) Borrower
grants to Lender a first-priority perfected security interest in the Reserve Funds and each of the Accounts in which the Reserve Funds
are held as additional security for payment of the Debt. Until expended or applied in accordance herewith, the Reserve Funds shall constitute
additional security for the Debt.
(b) Subject
to the terms of this Agreement, upon the occurrence and during the continuance of an Event of Default, Lender may, in addition to any
and all other rights and remedies available to Lender, apply any or all of the Reserve Funds to the payment of the Debt in any order
in its discretion.
(c) The
Reserve Funds shall not constitute trust funds and may be commingled with other monies held by Lender. The Reserve Funds shall be held
in an Eligible Account in Permitted Investments as directed by Lender or Lender’s Servicer. Unless expressly provided for in this
Article VII, all interest on a Reserve Fund shall not be added to or become a part thereof and shall be the sole property
of and shall be paid to Lender. Borrower shall be responsible for payment of any federal, state or local income or other tax applicable
to the interest earned on the Reserve Funds credited or paid to Borrower.
(d) Borrower
shall not, without obtaining the prior written consent of Lender, further pledge, assign or grant any security interest in any Reserve
Fund or the monies deposited in any Accounts holding such Reserve Funds or permit any lien or encumbrance to attach thereto, or any levy
to be made thereon, or any UCC-1 Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto.
(e) Lender
and Servicer shall not be liable for any loss sustained on the investment of any funds constituting the Reserve Funds. Borrower shall
indemnify Lender and Servicer and hold Lender and Servicer harmless from and against any and all actions, suits, claims and demands and
actual out-of-pocket liabilities, losses, damages (excluding consequential, punitive, special, exemplary and indirect damages), obligations
and costs and expenses (including litigation costs and reasonable out-of-pocket attorneys’ fees and expenses) arising from or in
any way connected with the Reserve Funds or the performance of the obligations for which the Reserve Funds were established, except to
the extent arising from the gross negligence or willful misconduct of Lender or Service. Borrower shall assign to Lender all rights and
claims Borrower may have against all persons or entities supplying labor, materials or other services which are to be paid from or secured
by the Reserve Funds; provided, however, that Lender may not pursue any such right or claim unless an Event of Default has occurred and
remains uncured.
(f) The
required monthly Reserve Fund deposits and the Monthly Debt Service Payment Amount shall be added together and shall be paid as an aggregate
sum by Borrower to Lender.
(g) Any
amount remaining in the Reserve Funds after the Debt has been paid in full shall be promptly returned to Borrower.
Section 7.7 Environmental
Reserve.
7.7.1 Deposit
to Environmental Reserve Fund. Borrower shall deposit into an Eligible Account held by Lender or Servicer (the “Environmental
Reserve Account”) on the Closing Date the sum of $977,500.00 in connection with the identified presence of chlorinated volatile
organic compounds in soil gas at or above vapor intrusion screening levels at the Terrell Mill Property. Amounts so deposited shall hereinafter
be referred to as the “Environmental Reserve Fund”.
7.7.2 Disbursement
of Environmental Reserve Fund. Within ninety (90) days after the Closing Date, Borrower shall use commercially reasonable efforts
to cause Nova Group, GBC or another environmental consultant reasonably acceptable to Lender (the “Environmental Consultant”)
to conduct testing in general accordance with the Georgia Department of Natural Resources Environmental Protection Division Final Guidance
for Evaluating the Vapor Intrusion Exposure Pathway dated August 31, 2021 (as the same may be amended, modified or replaced from
time to time, the “EPD Final Guidance”) as such Environmental Consultant deems necessary and appropriate to confirm
whether there is a complete vapor intrusion exposure pathway to indoor air on the Terrell Mill Property (a “Vapor Intrusion
Condition”). If such sampling results confirm that there is no Vapor Intrusion Condition, then so long as no Event of Default
is then continuing, Lender shall promptly disburse all amounts on deposit in the Environmental Reserve Account to Borrower. If such sampling
results confirm that there is a Vapor Intrusion Condition, then within two hundred seventy (270) days after the Closing Date, Borrower
shall use commercially reasonable efforts to (i) undertake further sampling in general accordance with the EPD Final Guidance (if
and to the extent recommended by the Environmental Consultant) and (ii) thereafter install a passive or active vapor intrusion mitigation
system (or undertake any other necessary and appropriate action to mitigate such Vapor Intrusion Condition in accordance with the mitigation
guidelines of the EPD Final Guidance, as reasonably recommended by such Environmental Consultant) at the Terrell Mill Property (the “Vapor
Intrusion Mitigation”). Upon installation of the Vapor Intrusion Mitigation, Borrower shall promptly deliver to Lender a Phase
I Environmental Site Assessment for the Terrell Mill Property which confirms that the Vapor Intrusion Condition is considered a “Controlled
Recognized Environmental Concern” and no further investigation or remediation of the Vapor Intrusion Condition is warranted (it
being agreed that a Phase I Environmental Site Assessment that does not include any statement that further investigation or remediation
is required shall be deemed to confirm that no such investigation or remediation is required). Upon Lender’s receipt of such
Phase I Environmental Site Assessment described in the immediately preceding sentence, and so long as no Event of Default is then continuing,
Lender shall disburse all amounts on deposit in the Environmental Reserve Account to Borrower.
Section 7.8 Free
Rent Reserve.
7.8.1 Deposits
to Free Rent Reserve Fund. Borrower shall deposit into an Eligible Account held by Lender or Servicer (the “Free Rent
Reserve Account”) on the Closing Date the sum of $311,601.00 to cover free rent or rent abatement for the tenants set forth
on Schedule VIII attached hereto. At Borrower’s election, in its sole discretion, Borrower may deposit into the Free Rent
Reserve Account an amount equal to all or any portion of any free rent credit due from Borrower in connection with satisfying a Hobby
Lobby Trigger Event Cure. Amounts so deposited shall hereinafter be referred to as the “Free Rent Reserve Fund”.
7.8.2 Disbursement
of Free Rent Reserve Funds. Provided no Event of Default is then continuing, Lender shall disburse to Borrower the amounts on
deposit in the Free Rent Reserve Account in accordance with Schedule VIII attached hereto or, if applicable, in connection with
any free rent credits deposits by Borrower in connection with satisfying a Hobby Lobby Trigger Event Cure on a monthly basis, on each
Payment Date for each month of free rent credit deposited based on the corresponding month to which such free rent applies.
Section 7.9 Outstanding
TI/LC Reserve.
7.9.1 Deposits
to Outstanding TI/LC Reserve Account. Borrower shall pay to Lender on the Closing Date a deposit in the amount of $9,576,923.00
(“Outstanding TI/LC Deposit”), which amount shall be deposited with and held by Lender to cover outstanding TILC Obligations
for the tenants described on Schedule IX attached hereto. At Borrower’s election, in its sole discretion, Borrower may deposit
into the Outstanding TI/LC Reserve Account an amount equal to all or any portion of any outstanding tenant improvement or leasing commission
obligations due from Borrower in connection with satisfying a Hobby Lobby Trigger Event Cure. Amounts so deposited shall hereinafter
be referred to as the “Outstanding TI/LC Reserve Fund” and the account in which such amounts are held shall hereinafter
be referred to as the “Outstanding TI/LC Reserve Account”. During the term of the Loan, in connection with new leases
or lease renewals, Borrower shall have the option to deposit additional amounts into the Outstanding TI/LC Reserve Fund and deliver an
updated Schedule IX to Lender in connection with such additional deposit.
7.9.2 Disbursements
of Outstanding TI/LC Reserve Funds(a) .
(a) Lender
shall make disbursements from the Outstanding TI/LC Reserve Account to pay Borrower only for the costs of outstanding TILC Obligations.
Subject to Section 7.9.2(b) hereof, Lender shall disburse Outstanding TI/LC Reserve Funds from the Outstanding TI/LC
Reserve Account from time to time upon satisfaction by Borrower (or waiver in writing by Lender or Servicer) of each of the following
conditions: (a) Borrower shall submit a written request for payment to Lender at least twenty (20) days prior to the date on which
Borrower requests such payment be made and specifies the outstanding TILC Obligations (or the completed portion thereof) to be paid,
(b) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default shall exist and
remain uncured, (c) Lender shall have received an Officers’ Certificate (i) stating that all TILC Obligations (or the
completed portion thereof) to be funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance
with all applicable federal, state and local laws, rules and regulations, such certificate to be accompanied by a copy of any license,
permit or other approval by any Governmental Authority required to commence or complete such TILC Obligations (or the completed portion
thereof), (ii) identifying each Person that supplied materials or labor in connection with the TILC Obligations (or the completed
portion thereof) to be funded by the requested disbursement, and (iii) stating that each such Person has been paid in full or will
be paid in full upon such disbursement, (d) if the requested disbursement is for a sum in excess of $100,000 for any applicable
Individual Property, at Lender’s option (and following delivery of Lender’s written request therefor), Lender shall have
received a title search for the applicable Individual Property indicating that the applicable Individual Property is free from all liens,
claims and other encumbrances not previously approved by Lender (other than the Permitted Encumbrances), and (e) if the requested
disbursement is for a sum in excess of $250,000 for any applicable Individual Property Lender may require an inspection of the applicable
Individual Property, at Borrower’s reasonable expense, by an appropriate independent qualified professional selected by Lender
prior to making such disbursement in order to verify completion of the outstanding TILC Obligations for which reimbursement is sought.
At Borrower’s election, Borrower shall either (x) pay all invoices in connection with the outstanding TILC Obligation with
respect to each request for disbursement prior to submitting such request for disbursement from the Outstanding TI/LC Reserve Account
or, (y) request Lender to issue joint checks, payable to Borrower and the contractor, supplier, materialman, mechanic, subcontractor
or other party to whom payment is due in connection with outstanding TILC Obligations. Lender shall not be required to make disbursements
from the Outstanding TI/LC Reserve Account with respect to the Property (i) more than once a month and (ii) unless such requested
disbursement is in an amount greater than $25,000.00 (or a lesser amount if the total amount in the Outstanding TI/LC Reserve Account
is less than $25,000.00 in which case only one disbursement of the amount remaining in the account shall be made) and such disbursement
shall be made only upon satisfaction of each condition contained in this Section 7.9.2(a) or Section 7.9.2(b) below.
(b) Anything
contained in Section 7.9.2(a) above notwithstanding, with respect to outstanding TILC Obligations for which the applicable
Tenant (rather than Borrower) is obligated to perform the work, at Borrower’s election, Borrower shall either (x) pay all
invoices in connection with such outstanding TILC Obligations, or pay the amount of such outstanding TILC Obligations directly to the
applicable tenant (in accordance with what the applicable Lease requires), prior to submitting a request for disbursement from the Outstanding
TI/LC Reserve Account or, (y) request Lender to issue joint checks, payable to Borrower and the contractor, supplier, materialman,
mechanic, subcontractor, tenant or other party to whom payment is due in connection with outstanding TILC obligations. Lender shall disburse
Outstanding TI/LC Reserve Funds from the Outstanding TI/LC Reserve Account with respect to outstanding TILC Obligations for which the
applicable Tenant (rather than Borrower) is obligated to perform the work from time to time upon satisfaction by Borrower (or waiver
by Lender or Servicer) of each of the following conditions: (a) Borrower shall submit a written request for payment to Lender at
least twenty (20) days prior to the date on which Borrower requests such payment be made and specifies the aggregate amount requested
and the outstanding TILC Obligations (or the completed portion thereof) to be reimbursed and (b) on the date such request is received
by Lender and on the date such payment is to be made, no Event of Default shall exist and remain uncured.
Section 7.10 Letters
of Credit.
(a) Other
than in connection with any Letter of Credit delivered in connection with the closing of the Loan, to the extent Borrower is expressly
permitted to deliver a Letter of Credit to Lender pursuant to the terms of any Loan Document, Borrower shall give Lender no less than
five (5) days’ written notice of Borrower’s election to deliver a Letter of Credit together with a draft of the proposed
Letter of Credit and Borrower shall pay to Lender all of Lender’s reasonable out of pocket costs and expenses (including reasonable
attorneys’ fees and disbursements) in connection therewith. No party other than Lender shall be entitled to draw on any such Letter
of Credit.
(b) Each
Letter of Credit delivered hereunder shall be additional security for the payment of the Debt. Upon the occurrence and during the continuance
of an Event of Default, Lender shall have the right, at its option, to draw on any Letter of Credit and to apply all or any part thereof
to the payment of the items for which such Letter of Credit was established or to apply such Letter of Credit to payment of the Debt
in such order, proportion or priority as Lender may determine in its sole discretion. Any such application to the Debt shall be subject
to the terms and conditions hereof relating to application of sums to the Debt. Lender shall have the additional rights to draw in full
any Letter of Credit: (i) if Lender has received a notice from the issuing bank that the Letter of Credit will not be renewed and
a substitute Letter of Credit is not provided at least thirty (30) days prior to the date on which the outstanding Letter of Credit
is scheduled to expire; (ii) if Lender has not received a notice from the issuing bank that it has renewed the Letter of Credit
at least thirty (30) days prior to the date on which such Letter of Credit is scheduled to expire and a substitute Letter of Credit
is not provided to Lender at least thirty (30) days prior to the date on which the outstanding Letter of Credit is scheduled to
expire; (iii) upon receipt of notice from the issuing bank that the Letter of Credit will be terminated (except if the termination
of such Letter of Credit is permitted pursuant to the terms and conditions hereof or a substitute Letter of Credit is provided to Lender
by no later than thirty (30) days prior to such termination); (iv) if the issuing bank shall cease to be an Eligible Institution
and a substitute Letter of Credit from an Eligible Institution is not delivered to Lender within fifteen (15) days after notice
is delivered to Borrower that the issuing bank is no longer an Eligible Institution; and/or (v) if the issuing bank shall fail to
issue a replacement Letter of Credit in the event the original Letter of Credit has been lost, mutilated, stolen and/or destroyed. If
Lender draws upon a Letter of Credit pursuant to the terms and conditions of this Agreement, provided no Event of Default exists,
Lender shall apply all or any part thereof for the specific purposes for which such Letter of Credit was established. Notwithstanding
anything to the contrary contained in the above, Lender is not obligated to draw upon any Letter of Credit upon the happening of an event
specified in (i), (ii), (iii), (iv) or (v) above and shall not be liable for any losses sustained by Borrower due
to the insolvency of the issuing bank if Lender has not drawn upon the Letter of Credit.
(c) In
the event Borrower delivers to Lender a Letter of Credit pursuant to the provisions of this Section 7.10 after the Closing Date,
Borrower shall deliver to Lender an Additional Insolvency Opinion or a “no effect letter” with respect to the Insolvency
Opinion delivered to Lender on the Closing Date, the applicant under such Letter of Credit shall be a direct or indirect parent of the
Borrower and the right to draw any funds on such Letter of Credit shall be a direct or indirect capital contribution to the Borrower
by such parent and shall be accompanied by the execution and delivery of a contribution agreement in form reasonably acceptable to Lender.
Anything contained herein to the contrary notwithstanding, delivery by Borrower of a Debt Yield Cure – Letter of Credit or Hobby
Lobby Letter of Credit shall be irrevocably effective as a Cash Sweep Event Cure related to a Debt Yield Trigger Event or a Hobby Lobby
Trigger Event (as applicable) immediately upon receipt by Lender of such Debt Yield Cure – Letter of Credit or Hobby Lobby Letter
of Credit, regardless of whether the Additional Insolvency Opinion or a “no effect letter” has been delivered as of such
date.
(d) The
applicant under each Letter of Credit shall be required, until such time the Debt has been paid in full, to waive, release and abrogate
any and all rights it may have under any agreement, at law or in equity (including, without limitation, any law subrogating the applicant
to the rights of Lender), to assert any claim against or seek contribution, indemnification or any other form of reimbursement from Borrower
or any other party liable for payment of the amounts which the Letter of Credit is intended to cover for any draw made on any such Letter
of Credit or otherwise.
Section 7.11 Gap
Rent Reserve.
7.11.1 Deposits
to Gap Rent Reserve Fund. Borrower shall deposit into an Eligible Account held by Lender or Servicer (the “Gap Rent
Reserve Account”) on the Closing Date the sum of $241,832.00 to cover gap rent for the tenants set forth on Schedule XII
attached hereto. Amounts so deposited shall hereinafter be referred to as the “Gap Rent Reserve Fund”.
7.11.2 Disbursement
of Gap Rent Reserve Funds. Provided no Event of Default is then continuing, Lender shall disburse to Borrower the amount
on deposit in the Gap Rent Reserve Account associated with a particular tenant, as set forth on Schedule XII attached hereto,
upon Lender’s receipt of an updated tenant estoppel certificate or rent commencement letter, in either case signed by the applicable
tenant, confirming that such tenant is in occupancy of its respective space, open for business and paying rent.
ARTICLE VIII.
DEFAULTS
Section 8.1 Event
of Default. (a) Each of the following events shall constitute an event of default hereunder (an “Event of Default”):
(i) if
(A) any Monthly Debt Service Payment Amount is not paid when due by Borrower under the Loan Documents, (B) the payment due
on the Maturity Date is not paid when due by Borrower under the Loan Documents, (C) any deposit to any of the Accounts required
hereunder or under the other Loan Documents is not paid when due by Borrower, or (D) any other portion of the Debt is not paid when
due by Borrower under the Loan Documents; provided, however, that (1) with respect to clauses (A) and (C) only,
one (1) time each calendar year Borrower shall have a five (5) day grace period before a failure to pay a Monthly Debt Service
Payment Amount or a deposit into any of the Accounts required under the Loan Documents shall constitute an Event of Default, but only
so long as the failure to make such payment was not in Borrower’s reasonable control and provided that Lender shall not be required
to deliver notice to Borrower of any such delinquent payments, and (2) with respect to clause (D) only, such non-payment continues
for five (5) days following notice to Borrower that the same is due and payable;
(ii) if
any of the Taxes or Other Charges are not paid prior to the date when the same become delinquent; provided, however, so
long as Borrower is in compliance with the terms of Section 7.2 hereof (including having on deposit in the Tax and Insurance
Escrow Fund sums sufficient to pay such Taxes or Other Charges and allocated by Lender to pay such Taxes or Other Charges when the same
become due and payable) and no other Event of Default has occurred and is continuing, Lender’s failure to pay such Taxes or Other
Charges from the Tax and Insurance Escrow Fund when the same are due and payable shall not constitute an Event of Default;
(iii) if
the Policies are not kept in full force and effect, or if evidence of the Policies is not delivered to Lender upon request; provided,
however, so long as Borrower is in compliance with the terms of Section 7.2 hereof (including having on deposit in
the Tax and Insurance Escrow Fund sums sufficient to pay the Insurance Premiums and allocated for the payment of such Insurance Premiums
when the same become due and payable) and Lender’s access to such sums is not restricted or constrained in any manner as a result
of any act of omission of Borrower or any Affiliate of Borrower, and no other Event of Default has occurred and is continuing, a failure
to keep the Policies in full force and effect shall not constitute an Event of Default if Lender’s failure to pay the Insurance
Premiums when the same are due and payable is the sole reason the Policies are not in full force and effect;
(iv) if
Borrower Transfers or otherwise encumbers any portion of the Property without Lender’s prior written consent in violation of the
provisions of this Agreement (it being agreed that Transfers (including encumbering any portion of the Property) which are Permitted
Transfers shall not constitute an Event of Default if made in accordance with the terms and conditions of this Agreement);
(v) if
any representation or warranty made by Borrower herein or in any other Loan Document, or in any report, certificate, financial statement
or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect as of the
date the representation or warranty was made; provided, however, that if such representation or warranty which was false
or misleading in any material respect is, by its nature, curable, and such representation or warranty was not, to Borrower’s knowledge,
false or misleading in any material respect when made, then the same shall not constitute an Event of Default unless Borrower has not
cured the same within ten (10) Business Days after receipt by Borrower of notice from Lender in writing of such breach;
(vi) if
Borrower or Guarantor, or any other guarantor or indemnitor under any guarantee issued in connection with the Loan, shall make an assignment
for the benefit of creditors;
(vii) if
a receiver, liquidator or trustee shall be appointed for Borrower, Guarantor or any other guarantor or indemnitor under any guarantee
or indemnity, respectively issued in connection with the Loan or if Borrower, Guarantor or such other guarantor or indemnitor shall be
adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to the Bankruptcy Code,
or any similar federal or State law, shall be filed by or against, consented to, or acquiesced in by, Borrower, Guarantor or such other
guarantor or indemnitor, or if any proceeding for the division, dissolution or liquidation of Borrower, Guarantor or such other guarantor
or indemnitor shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary
and not consented to by Borrower, Guarantor or such other guarantor or indemnitor, upon the same not being discharged, stayed or dismissed
within one hundred twenty (120) days; provided further, however, that with respect to Guarantor it shall not be an Event
of Default under this Section 8.1(a)(vii) if, within thirty (30) days of the occurrence of such Default, a Qualified
Replacement Guarantor shall, subject to the conditions of Section 5.2.10(g) hereof, have assumed all of the liabilities
and obligations of Guarantor under the Loan Documents executed by Guarantor or executed a replacement guaranty substantially similar
to the Guaranty and a replacement environmental indemnity substantially similar to the Environmental Indemnity;
(viii) subject
to the provisions of Section 5.2.10 hereof, if Borrower attempts to assign its rights under this Agreement or any of the
other Loan Documents or any interest herein or therein in contravention of the Loan Documents;
(ix) if
Borrower (A) breaches any covenant contained in Section 4.1.30 (provided, however, that if such breach pursuant to this
subsection (A) (1) is inadvertent, immaterial and non-recurring and (2) is susceptible of cure, such breach shall not
be an Event of Default hereunder if within thirty (30) days of notice from Lender to Borrower, Borrower (x) cures such breach and
(y) provides Lender with written evidence acceptable to Lender of such cure and, if requested by Lender, an Additional Insolvency
Opinion), (B) breaches any covenant contained in Section 5.1.24 hereof or (C) breaches any negative covenants contained
in Sections 5.2.2, 5.2.3, 5.2.4, 5.2.9 or 5.2.10 hereof;
(x) subject
to Borrower’s right to contest as provided in Section 3.6 of the applicable Security Instrument, if the Property becomes subject
to any mechanic’s or materialman’s Lien, and the Lien shall remain undischarged of record (by payment, bonding or otherwise)
for a period of thirty (30) days after Borrower receives written notice or obtains actual knowledge of the same;
(xi) if
any of the assumptions related to the Borrower being a Special Purpose Entity contained in the Insolvency Opinion delivered to Lender
in connection with the Loan, or in any Additional Insolvency Opinion delivered subsequent to the closing of the Loan, is or shall become
untrue in any material respect, provided, however, the foregoing shall not be deemed an Event of Default hereunder if (A) Borrower
exercises commercially reasonable efforts to cure the same within twenty (20) Business Days of the earlier of (1) notice thereof
from Lender or (2) the date Borrower becomes aware thereof;
(xii) if
Borrower fails to exercise commercially reasonable efforts to deliver any document or to take any other reasonable action Borrower is
obligated to take hereunder with respect to any Securitization for a period of five (5) Business Days after such notice by Lender,
it being understood that Borrower shall not be obligated to deliver any document or take any action that would increase its obligations
or decrease its rights under the Loan Documents, other than to a de minimis extent;
(xiii) if
Borrower shall fail to comply with Section 9.1 hereof, or fails to cooperate with Lender in connection with a Securitization
pursuant to the provisions of Section 9.1 hereof, for five (5) Business Days after written notice to Borrower from Lender;
(xiv) if
there shall be a default under any Security Instrument or any of the other Loan Documents beyond any applicable notice and cure periods
contained in such documents, whether as to Borrower or the Property, or if any other such event shall occur or condition shall exist,
if the effect of such event or condition is to accelerate the maturity of any portion of the Debt or to permit Lender to accelerate the
maturity of all or any portion of the Debt;
(xv) subject
to Borrower’s right to contest pursuant to this Agreement, if any federal tax lien or state or local income tax lien is filed against
Borrower, Guarantor or the Property and same is not discharged of record within thirty (30) days after same is filed;
(xvi) [intentionally
omitted];
(xvii) [intentionally
omitted];
(xviii) (A) if
Guarantor fails at any time to comply with any of the representations, warranties or covenants set forth in the Guaranty or Environmental
Indemnity, or (B) if Guarantor fails at any time to maintain the Net Worth Threshold or the Liquid Assets Threshold and does not,
within thirty (30) days after notice from Lender of such failure, provide evidence reasonably satisfactory to Lender that such deficiency
has been cured; or
(xix) if
Borrower shall continue to be in Default under any of the other terms, covenants or conditions of this Agreement not specified in subsections
(i) to (xviii) above, for ten (10) days after written notice to Borrower from Lender, in the case of any Default
which can be cured by the payment of a sum of money, or for thirty (30) days after notice from Lender in the case of any other Default;
provided, however, that if such nonmonetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30) day
period and provided further that Borrower shall have commenced to cure such Default within such thirty (30) day period and thereafter
diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for such time as is reasonably
necessary for Borrower in the exercise of due diligence to cure such Default, such additional period not to exceed one hundred twenty
(120) days.
(b) Upon
the occurrence of an Event of Default (other than an Event of Default described in clauses (vi), (vii) or (viii) above)
and at any time thereafter, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan
Documents or at law or in equity, Lender may take such action, without notice or demand, that Lender deems advisable to protect and enforce
its rights against Borrower and the Property, including declaring the Debt to be immediately due and payable, and Lender may enforce
or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and any or all of the Property, including
all rights or remedies available at law or in equity; and upon any Event of Default described in clauses (vi), (vii) or
(viii) above, the Debt and Other Obligations of Borrower hereunder and under the other Loan Documents shall immediately and
automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything
contained herein or in any other Loan Document to the contrary notwithstanding.
Section 8.2 Remedies.
(a) Upon
the occurrence and during the continuance of an Event of Default, all or any one or more of the rights, powers, privileges and other
remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable
to, Borrower or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Debt
shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the
enforcement of its rights and remedies under any of the Loan Documents with respect to all or any part of the Property. Any such actions
taken by Lender shall be cumulative and concurrent and may be pursued independently, singularly, successively, together or otherwise,
at such time and in such order as Lender may determine in its discretion, to the fullest extent permitted by law, without impairing or
otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in the other
Loan Documents. Without limiting the generality of the foregoing, Borrower agrees that if an Event of Default is continuing, subject
to applicable law, (i) Lender is not subject to any “one action” or “election of remedies” law or rule,
and (ii) all liens and other rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender
has exhausted all of its remedies against the Property and the Security Instruments have been foreclosed, sold or otherwise realized
upon in satisfaction of the Debt or the Debt has been paid in full.
(b) With
respect to Borrower and the Property, nothing contained herein or in any other Loan Document shall be construed as requiring Lender to
resort to any Individual Property for the satisfaction of any of the Debt in any preference or priority to any other Individual Property,
and Lender may seek satisfaction out of all of the Properties, or any part thereof, in its discretion in respect of the Debt. In addition,
Lender shall have the right from time to time to partially foreclose the Security Instruments in any manner and for any amounts secured
by the Security Instruments then due and payable as determined by Lender in its discretion including the following circumstances: (i) in
the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled payments of principal and interest,
Lender may foreclose one or more of the Security Instruments to recover such delinquent payments or (ii) in the event Lender elects
to accelerate less than the entire outstanding principal balance of the Loan, Lender may foreclose one or more of the Security Instruments
to recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured by one or more of the Security
Instruments as Lender may elect. Notwithstanding one or more partial foreclosures, the Properties shall remain subject to the Security
Instruments to secure payment of sums secured by the Security Instruments and not previously recovered.
(c) If
an Event of Default exists, Lender shall have the right to sever the Note and the other Loan Documents into one or more separate notes,
mortgages and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall determine
in its discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower shall execute and deliver
to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request
in order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender; provided,
subject to the provisions of Section 9.1, that Borrower shall not be required to execute and deliver Severed Loan Documents
which increase Borrower’s obligations and/or liabilities under the Loan Documents or decrease Borrower’s rights under the
Loan Documents or Severed Loan Documents, other than to a de minimum extent. Borrower hereby absolutely and irrevocably appoints Lender
as its true and lawful attorney, coupled with an interest, in its name and stead, after the occurrence and during the continuance of
an Event of Default, to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all
that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such
power until three (3) Business Days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights
under such power. Borrower shall be obligated to pay any costs or expenses incurred in connection with the preparation, execution, recording
or filing of the Severed Loan Documents and the Severed Loan Documents shall not contain any representations, warranties or covenants
not contained in the Loan Documents and any such representations and warranties contained in the Severed Loan Documents will be given
by Borrower only as of the Closing Date and no Severed Loan Documents shall increase in any manner Borrower’s obligations, decrease
Borrower’s rights or modify in a manner adverse to Borrower any financial obligations of Borrower.
(d) As
used in this Section 8.2, a “foreclosure” shall include, without limitation, any sale by power of sale.
Section 8.3 Remedies
Cumulative; Waivers. The rights, powers and remedies of Lender under this Agreement shall be cumulative and not exclusive of
any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing
at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued singularly, concurrently or otherwise, at
such time and in such order as Lender may determine in Lender’s discretion. No delay or omission to exercise any remedy, right
or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but
any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or
Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower
or to impair any remedy, right or power consequent thereon.
ARTICLE IX.
SPECIAL PROVISIONS
Section 9.1 Securitization.
9.1.1 Sale
of Notes and Securitization.
(a) Lender
shall have the right (i) to sell or otherwise transfer the Loan (or any portion thereof and/or interest therein), (ii) to sell
participation interests in the Loan (or any portion thereof and/or interest therein) or (iii) to securitize the Loan (or any portion
thereof and/or interest therein) in a single asset securitization or a pooled asset securitization. The transactions referred to in clauses
(i), (ii) and (iii) above shall hereinafter be referred to collectively as a “Securitization”. Any certificates,
notes or other securities issued in connection with a Securitization are hereinafter referred to as “Securities”.
(b) If
requested by Lender, Borrower shall assist Lender in satisfying the market standards to which Lender customarily adheres or which may
be reasonably required in the marketplace or by the Rating Agencies in connection with any Securitizations, including, without limitation,
to:
(i) provide
(A) updated financial and other information with respect to the Property, the business operated at the Property, Borrower, Guarantor,
and Manager, (B) updated budgets relating to the Property, and (C) updated appraisals, market studies, environmental reviews
(Phase I’s and, if appropriate, Phase II’s), property condition reports and other due diligence investigations of the Property
(the “Updated Information”), together, if customary, with appropriate verification of the Updated Information through
letters of auditors or opinions of counsel acceptable to Lender and the Rating Agencies (provided, however, to the extent such updated
information relates to a Tenant, Borrower’s obligation shall be limited to enforcing Borrower’s rights under the applicable
Leases and using commercially reasonable efforts to obtain such information in connection therewith);
(ii) provide
new and/or updated opinions of counsel, which may be relied upon by Lender, the Rating Agencies and their respective counsel, agents
and representatives, as to substantive non-consolidation, fraudulent conveyance, matters of Delaware and federal bankruptcy law relating
to limited liability companies, true sale, true lease and any other opinion customary in Securitizations or required by the Rating Agencies
with respect to the Property, Borrower and Borrower’s Affiliates, which counsel and opinions shall be reasonably satisfactory in
form and substance to Lender and satisfactory to the Rating Agencies;
(iii) provide
updated, as of the closing date of the Securitization, representations and warranties made in the Loan Documents and such additional
representations and warranties as the Rating Agencies may require; and
(iv) execute
such amendments to the Loan Documents and Borrower’s organizational documents as may be reasonably requested by Lender or requested
by the Rating Agencies or otherwise to effect any Securitization, including, without limitation, (A) to amend and/or supplement
the Independent Director provisions provided herein and therein, in each case, in accordance with the applicable requirements of the
Rating Agencies, (B) bifurcating the Loan into two or more components and/or additional separate notes and/or creating additional
senior/subordinate note structure(s) (any of the foregoing, a “Loan Bifurcation”; the Mezzanine Option is separate
from a Loan Bifurcation) and (C) to modify all operative dates (including but not limited to payment dates, interest period start
dates and end dates, etc.) under the Loan Documents, by up to ten (10) days; provided, however, that Borrower
shall not be required to so modify or amend any Loan Document if such modification or amendment would change the interest rate, the stated
maturity (except as provided in subclause (C) above) or the amortization of principal set forth herein, except in connection with
a Loan Bifurcation which may result in varying fixed interest rates, principal balances and amortization schedules on the components/notes,
but which components shall have the same weighted average interest rate as the original Note prior to the Loan Bifurcation as well as
the same aggregate principal balance and weighted amortization schedule except following an Event of Default or following any prepayment
(whether resulting from the application of Net Proceeds after a Casualty or Condemnation or otherwise) of any portion of the principal
amount of the Loan; provided, further, however, that Borrower shall not be required to so modify or amend any Loan
Document or Borrower organizational documents if any such changes shall increase Borrower’s or Guarantor’s or their Affiliates’
obligations or decrease Borrower’s or Guarantor’s or their Affiliates’ rights under the Loan Documents or organizational
documents (in each case, other than to a de minimis extent).
(c) Upon
request, Borrower shall furnish to Lender from time to time such financial data and financial statements as Lender determines to be necessary,
advisable or appropriate for complying with any applicable legal requirements (including those applicable to Lender or any Servicer (including,
without limitation and to the extent applicable, Regulation AB)) within the timeframes necessary, advisable or appropriate in order to
comply with such legal requirements. Without limiting the generality of the foregoing, and notwithstanding anything to the contrary contained
herein, if the Loan is included in a Securitization that is subject to the disclosure requirements of Regulation AB, Lender shall provide
Borrower prompt written notification thereof and thereafter Borrower shall furnish, or cause to be furnished, via email or regular mail
deposited with the US Postal Service, to Lender: (i) on or before the day that is forty-five (45) calendar days after the end of
the first, second and third calendar quarters, the estimated Net Operating Income for the Property for the most recent calendar quarter;
and (ii) on or before the day that is seventy-five (75) calendar days after the end of each Fiscal Year, the estimated Net Operating
Income for the Property for the most recent Fiscal Year.
(d) Notwithstanding
anything to the contrary in this Agreement or the other Loan Documents, following the Closing Date (i) all costs and expenses incurred
by Lender, its successors, assigns or Affiliates in connection with this Section 9.1 and Sections 5.1.18, 9.2(c),
9.7 and 10.29, including in connection with any Securitization and any exercise of a Mezzanine Option (collectively, the
“Securitization/Loan Component Provisions”) shall be paid by Lender, its successors, assigns or Affiliates, and (ii) all
reasonable third-party costs and expenses (including legal fees and expenses) and any taxes (such as transfer taxes or controlling interest
taxes resulting from the creation of additional ownership entities within the organizational structure of Borrower pursuant to the terms
of Section 9.7 hereof) incurred by Borrower or Guarantor in connection with Borrower’s or Guarantor’s compliance
with their obligations, or requests made by Lender, under the Securitization/Loan Component Provisions shall be paid by Lender; provided,
however, Borrower shall be responsible for Borrower’s and Guarantor’s legal fees and expenses incurred in connection
with such compliance up to the amount of $20,000 (in the aggregate between the Closing Date and Maturity Date), and Lender shall reimburse
Borrower for any legal fees and expenses in excess of that amount. Nothing in the preceding sentence, however, shall limit Borrower’s
obligations to pay any costs and expenses (or be deemed to require Lender to pay or reimburse Borrower for any costs and expenses) which
are otherwise the responsibility of Borrower pursuant to the terms of the Loan Documents (other than the Securitization/Loan Component
Provisions). Anything contained herein to the contrary notwithstanding, the $20,000 cap described above shall not be applicable to, and
Borrower shall be obligated to pay (1) all costs and expenses of Lender and its successors, assigns or Affiliates described in clause
(i) above, solely to the extent the same were incurred prior to the Closing Date and are set forth on the closing/settlement statement
(approved by Borrower and Lender on or prior to the Closing Date) as a Borrower obligation, and (2) any costs and expenses of Borrower
or Guarantor under clause (ii) above to the extent incurred prior to the Closing Date.
Section 9.2 Disclosure.
(a) Borrower
(on its own behalf and on behalf of each other Borrower Party) understands that information provided to Lender by Borrower, any other
Borrower Party and/or their respective agents, counsel and representatives may be (i) included in (A) the Disclosure Documents
and (B) filings under the Securities Act and/or the Exchange Act and (ii) made available to Investors, the Rating Agencies
and service providers, in each case, in connection with any Securitization.
(b) Subject
to Section 9.3 hereof, Borrower shall indemnify Lender and its officers, directors, partners, employees, representatives,
agents and affiliates against any losses, claims, damages or liabilities (collectively, the “Liabilities”) to which
Lender and/or its officers, directors, partners, employees, representatives, agents and/or affiliates may become subject in connection
with (x) any Disclosure Document and/or any Covered Rating Agency Information, in each case, insofar as such Liabilities arise out
of or are based upon any untrue statement of any material fact in the Provided Information and/or arise out of or are based upon the
omission to state a material fact in the Provided Information required to be stated therein or necessary in order to make the statements
in the applicable Disclosure Document and/or Covered Rating Agency Information, in light of the circumstances under which they were made,
not misleading (provided that such indemnification obligation does not specifically relate to a comment made with respect to any applicable
Disclosure Document and/or Covered Rating Agency Information which Lender failed to accept in substance) and (y) after a Securitization,
any indemnity obligations incurred by Lender or Servicer in connection with any required confirmation from the applicable Rating Agencies.
(c) Borrower
and Guarantor agree to provide in connection with each of (i) a preliminary and a final private placement memorandum or (ii) a
preliminary and final prospectus or prospectus supplement, as applicable, an agreement (A) certifying that Borrower has examined
such Disclosure Documents specified by Lender and that each such Disclosure Document, as it relates to Borrower, Borrower Affiliates,
the Property, Manager, Guarantor and all other aspects of the Loan, does not contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made,
not misleading, (B) indemnifying Lender (and for purposes of this Section 9.2, Lender hereunder shall include its officers
and directors), the Affiliate of Lender. (“Lender Affiliate”) that has filed the registration statement relating to
the Securitization (the “Registration Statement”), each of their respective directors, each of their respective officers
who have signed the Registration Statement and each Person that controls the Lender Affiliate within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act (collectively, the “Lender Group”), and Lender Affiliate,
and any other placement agent or underwriter with respect to the Securitization, each of their respective directors and each Person who
controls Lender Affiliate or any other placement agent or underwriter within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act (collectively, the “Underwriter Group”) for any Liabilities to which Lender, the
Lender Group or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in such sections or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated in such sections or necessary in order to make the statements in such
sections, in light of the circumstances under which they were made, not misleading (provided that such indemnification obligation does
not specifically relate to a comment made with respect to any applicable Disclosure Document and/or Covered Rating Agency Information
which Lender failed to accept in substance) and (C) agreeing to reimburse Lender, the Lender Group and/or the Underwriter Group
for any legal or other expenses reasonably incurred by Lender, the Lender Group and the Underwriter Group in connection with investigating
or defending the Liabilities. The indemnification provided for in clauses (B) and (C) above shall be effective whether or not
the indemnification agreement described above is provided. The aforesaid indemnity will be in addition to (but not in duplication of)
any liability which Borrower may otherwise have.
(d) In
connection with filings under Exchange Act and/or the Securities Act, Borrower, and Guarantor agree to (i) indemnify Lender, the
Lender Group and the Underwriter Group for Liabilities to which Lender, the Lender Group or the Underwriter Group may become subject
insofar as the Liabilities arise out of or are based upon the omission or alleged omission to state in the Disclosure Document a material
fact required to be stated in the Disclosure Document in order to make the statements in the Disclosure Document, in light of the circumstances
under which they were made, not misleading (provided that such indemnification obligation does not specifically relate to a comment made
with respect to any applicable Disclosure Document and/or Covered Rating Agency Information which Lender failed to accept in substance)
and (ii) reimburse Lender, the Lender Group or the Underwriter Group for any legal or other expenses reasonably incurred by Lender,
the Lender Group or the Underwriter Group in connection with defending or investigating the Liabilities.
(e) Promptly
after receipt by an indemnified party under this Section 9.2 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 9.2, notify the
indemnifying party in writing of the commencement thereof (but the omission to so notify the indemnifying party will not relieve the
indemnifying party from any liability which the indemnifying party may have to any indemnified party hereunder except to the extent that
failure to notify causes prejudice to the indemnifying party). In the event that any action is brought against any indemnified party,
and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled, jointly with any other indemnifying
party, to participate therein and, to the extent that it (or they) may elect by written notice delivered to the indemnified party promptly
after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel satisfactory to such indemnified
party. After notice from the indemnifying party to such indemnified party under this Section 9.2, such indemnifying party
shall pay for any legal or other expenses subsequently incurred by such indemnifying party in connection with the defense thereof; provided,
however, if the defendants in any such action include both the indemnified party and the indemnifying party and the 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 the indemnifying party, the indemnified party or parties shall have the right to select separate
counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party
at the cost of the indemnifying party.
(f) The
liabilities and obligations of Borrower, Guarantor and Lender under this Section 9.2 shall survive the termination of this
Agreement and the satisfaction and discharge of the Debt. Failure by Borrower and/or any Borrower Party to comply with the provisions
of Section 9.1 and/or Section 9.2 within the timeframes specified therein and/or as otherwise required by Lender
shall, at Lender’s option, constitute a breach of the terms thereof and/or an Event of Default. Borrower (on its own behalf and
on behalf of each Borrower Party) hereby expressly authorizes and appoints Lender its attorney-in-fact to take any actions required of
any Borrower Party under Sections 9.1, 9.2 and/or 9.7 in the event any Borrower Party fails to do the same, which
power of attorney shall be irrevocable and shall be deemed to be coupled with an interest. Notwithstanding anything to the contrary contained
herein, (i) except as may otherwise expressly provided to the contrary in this Article 9, each Borrower Party shall bear its
own cost of compliance with this Article (including, without limitation, the costs of any ongoing financial reporting or similar
provisions contained herein) and (ii) to the extent that the timeframes for compliance with such ongoing financial reporting and
similar provisions are shorter than the timeframes allowed for comparable reporting obligations under Section 5.1.11 hereof
(if any), the timeframes under this Article 9 shall control.
Section 9.3 Exculpation.
(a) Subject
to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the obligations
contained in the Note, this Agreement, the Security Instrument or the other Loan Documents by any action or proceeding wherein a money
judgment shall be sought against Borrower or any officer, director, shareholder, partner, member, principal, employee of Borrower or
any direct or indirect owner of Borrower (provided that the foregoing shall not limit in any manner, the liability of any Guarantor),
except that Lender may bring a foreclosure action, an action for specific performance or any other appropriate action or proceeding to
enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Security Instrument and the other Loan Documents,
or in the Property (or any portion thereof), the Rents, or any other collateral given to Lender pursuant to the Loan Documents; provided,
however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against
Borrower only to the extent of Borrower’s interest in the Property, in the Rents and in any other collateral given to Lender, and
Lender, by accepting the Note, this Agreement, the Security Instrument and the other Loan Documents, agrees that it shall not sue for,
seek or demand any deficiency judgment against Borrower in any such action or proceeding under or by reason of or under or in connection
with the Note, this Agreement, the Security Instrument or the other Loan Documents. The provisions of this Section 9.3 shall
not, however, (i) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents;
(ii) impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Security
Instrument; (iii) affect the validity or enforceability of any guaranty, indemnity or similar agreement or undertaking made in connection
with the Loan or any of the rights and remedies of Lender thereunder; (iv) impair the right of Lender to obtain the appointment
of a receiver; (v) impair the enforcement of any assignment of leases contained in the Security Instrument and any other Loan Documents;
or (vi) constitute a prohibition against Lender to seek a deficiency judgment against Borrower in order to fully realize the security
granted by the Security Instrument (if required by applicable law and provided such deficiency judgment is not enforced personally against
Borrower or any officer, director, shareholder, partner, member, principal, employee of Borrower or any direct or indirect owner of Borrower
(excluding Guarantor under the Guaranty and Environmental Indemnity, as applicable)) or to commence any other appropriate action or proceeding
in order for Lender to exercise its remedies against the Property (or any portion thereof).
(b) Nothing
contained herein shall in any manner or way release, affect or impair the right of Lender to recover from Borrower, and Borrower shall
be fully and personally liable and subject to legal action, for any actual out-of-pocket loss, cost, expense, damage, claim or other
obligation (including reasonable out-of-pocket attorneys’ fees and expenses and other collection and litigation expenses, but excluding
consequential, punitive, special, indirect and exemplary damages or diminutions in value) incurred or suffered by Lender arising out
of or in connection with the following:
(i) fraud
or intentional misrepresentation by Borrower or Guarantor in connection with the Loan;
(ii) the
gross negligence or willful misconduct of Borrower or Guarantor;
(iii) arson
or any intentional material physical waste of the Property, provided, however, that if Borrower does not have sufficient cash flow on
a current basis to prevent waste, any waste shall not be deemed intentional and Borrower shall have no liability under this clause (iii);
(iv) the
removal or disposal of any portion of the Property by Borrower during the continuance of an Event of Default, unless such removed or
disposed portion of the Property is subsequently replaced with property of equal or greater utility or value;
(v) the
misappropriation, misapplication or conversion by Borrower or Guarantor, or any Affiliate of the foregoing, of (A) any Insurance
Proceeds paid by reason of any loss, damage or destruction to the Property, (B) any Awards received in connection with a Condemnation
of all or a portion of the Property during the continuance of an Event of Default, (C) any Rents or other Property income or collateral
proceeds, or (D) any Rents paid more than one month in advance (including security deposits) during the continuance of an Event
of Default;
(vi) following
the occurrence and during the continuance of an Event of Default, the failure to either apply rents or other Property income, collected
after such Event of Default, to the ordinary, customary, and necessary expenses of operating the Property or, upon demand, to deliver
such rents or other Property income to Lender (or otherwise to the Clearing Account or Cash Management Account, as required by this Agreement);
(vii) failure
to maintain insurance or to pay taxes and assessments, or to pay charges for labor or materials or other charges or judgments that can
create Liens on any portion of the Property (unless Lender is escrowing funds therefor and fails to make such payments or has taken possession
of the Property following an Event of Default, has received all Rents from the Property applicable to the period for which such insurance,
taxes or other items are due, and thereafter fails to make such payments), it being acknowledged that if Borrower does not have sufficient
cash flow on a current basis to maintain insurance or to pay taxes and assessments or to pay charges for labor or materials or other
charges or judgments (unless such charges were incurred following the occurrence and during the continuance of an Event of Default) that
create Liens on any portion of the Property, Borrower shall have no liability under this clause (vii);
(viii) any
security deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender upon
a foreclosure of the Property or action in lieu thereof, except to the extent any such security deposits were (A) applied or returned
to Tenants in accordance with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave
rise to such foreclosure or action in lieu thereof or (B) previously delivered to Lender to be applied to repay the Loan;
(ix) any
voluntary Liens, other than Permitted Encumbrances and Liens described in Sections 9.3(b)(vii) or 9.3(c)(B) hereof;
(x) any
failure by Borrower to comply with any of the representations, warranties or covenants set forth in Sections 4.1.37 or 5.1.19
hereof;
(xi) [intentionally
omitted];
(xii) (A) a
Casualty at the Individual Property identified on Schedule IV attached hereto as “Nordstrom Rack – Tampa, FL”
(the “Florida Property”) caused by a “named storm” under the applicable insurance policy covering the
Florida Property, after the application of all Insurance Proceeds received in connection with such Casualty; or (B) a Casualty at
an Additional Windstorm Property caused by a “named storm” under the applicable insurance policy covering such Additional
Windstorm Property (provided that that there shall be no liability pursuant to this clause (xii)(B) with respect to an Additional
Windstorm Property following the date that Borrower obtains the Additional Windstorm Insurance Coverage for such Additional Windstorm
Property and delivers one or more insurance certificates to Lender evidencing the same);
(xiii) any
failure by Borrower to comply with any representation, warranty or covenant set forth in Section 4.1.30 hereof to the extent
such failure is not expressly covered by the full recourse event set forth in Section 9.3(c)(D) below;
(xiv) Borrower
fails to obtain Lender’s prior written consent to any Transfer that is not a Full Recourse Transfer, to the extent required pursuant
to the terms of the Loan Documents;
(xv) the
Violations; provided, however, that there shall be no liability pursuant to this clause (xv) with respect to a particular
Violation at an Individual Property from and after the date that Borrower has cured such Violation and delivered to Lender an update
to the applicable zoning report verifying such Violation has been cured;
(xvi) Borrower’s
failure to comply with the provisions of Sections 5.1.9 hereof;
(xvii) criminal
acts of Borrower or Guarantor, or executives of Borrower or Guarantor, resulting in the seizure, forfeiture or loss of the Property;
(xviii) Borrower,
acting in bad faith, fails to cooperate in transferring any licenses or permits requested by Lender in connection with any foreclosure
of the Property, deed in lieu or other transfer of the Property to Lender or Lender’s designee;
(xix) if
Guarantor, Borrower or any Affiliate of any of the foregoing, in connection with any enforcement action or exercise or assertion of any
right or remedy by or on behalf of Lender under or in connection with the Note, the Security Instruments or any other Loan Document,
(a) seeks a defense, judicial intervention or injunctive or other equitable relief of any kind or asserts in a pleading filed in
connection with a judicial proceeding any defense against Lender or any right in connection with any security for the Loan and (b) the
court in any such action or proceeding determines that Guarantor’s, Borrower’s or such Affiliate’s defense or request
for judicial intervention (1) was made by Guarantor, Borrower or such Affiliate with the intent to hinder, delay or otherwise interfere
with Lender’s exercise of its remedies (whether at law or granted under the Loan Documents), or (2) was made in bad faith
by Guarantor, Borrower or such Affiliate; or
(xx) reconciliation
of common area maintenance or other reimbursements or charges related to the calendar year 2022 and prior years under any of the Leases
identified on Schedule XIII attached hereto; provided, however, that there shall be no liability pursuant to this
clause (xx) with respect to a particular Lease from and after the date that Borrower has delivered to Lender a written notice executed
by the applicable Tenant, or other evidence reasonably satisfactory to Lender, confirming that such Tenant has accepted all reconciliations
of common area maintenance and other reimbursements and charges for the calendar year 2022 and prior years under such Tenant’s
Lease and there are no disputes in connection therewith.
(c) Notwithstanding
anything to the contrary in this Agreement, the Note or any of the other Loan Documents, Borrower shall be personally liable for the
Debt if (A) Borrower fails to obtain Lender’s prior written consent (to the extent such consent is required pursuant to the
terms of the Loan Documents) to any Transfer (other than a Transfer approved by Lender or a Transfer in connection with Lender’s
enforcement of its rights and remedies) (1) that results in a change in Control over Borrower or (2) of any of the Property
by deed, bill of sale, installment sales agreement or ground lease (excluding any lease to a Tenant in the ordinary course of business)
(a “Full Recourse Transfer”); (B) except for any Permitted Encumbrances and Permitted Indebtedness, Borrower
fails to obtain Lender’s prior written consent to any Indebtedness or voluntary mortgage, deed of trust, collateral assignment
or similar voluntary Lien (including a PACE Lien) encumbering the Property; provided, however, in no event shall a mechanic’s
or materialman’s Lien encumbering the Property apply to this clause (B); (C) Borrower shall at any time hereafter make an
assignment for the benefit of its creditors; (D) Borrower fails to comply with any representation, warranty or covenant set forth
in Section 4.1.30 hereof, which failure is cited as a factor in the substantive consolidation of Borrower with any other
entity in connection with any proceeding under the Bankruptcy Code; (E) Borrower admits, in any legal proceeding (other than Borrower
admitting or making any truthful statement that it has been advised by counsel is required to be admitted or made under applicable laws,
regulations or court orders), its insolvency or inability to pay its debts as they become due, provided that neither Borrower nor Guarantor
shall have liability under this clause (E) in connection with the delivery of financial statements or any other filing required
to be delivered pursuant to a subpoena or any order entered in a bankruptcy proceeding or required under applicable law in connection
with any such petition made by any Person which is not an Affiliate of Borrower; or (F) Borrower files, or consents in writing to,
or acquiesces in, a petition for bankruptcy, insolvency, dissolution or liquidation under the Bankruptcy Code or any other Federal or
state bankruptcy or insolvency law, or there is a filing of an involuntary petition against Borrower under the Bankruptcy Code or any
other Federal or state bankruptcy or insolvency law in which Borrower or Guarantor colludes with, or otherwise assists any party in connection
with such filing, or solicits or causes to be solicited petitioning creditors for any involuntary petition against Borrower from any
party (provided, however, that the failure to defend such an involuntary petition where no meritorious defense exists shall not be deemed
“assisting” for purposes hereof).
(d) Nothing
herein shall be deemed to constitute a waiver by Lender of any right Lender may have under Sections 506(a), 506(b), 1111(b) or any
other provision of the Bankruptcy Code to file a claim for the full amount of the Debt or to require that all collateral shall continue
to secure all of the Debt.
(e) Notwithstanding
anything to the contrary contained herein or in any of the other Loan Documents, Borrower shall not have any liability pursuant to this
Section 9.3 if a court of competent jurisdiction issues a final non-appealable judgement that any acts or omissions creating
liability hereunder were caused by the fraud, bad faith, willful misconduct or gross negligence of Lender or Servicer.
(f) Notwithstanding
anything to the contrary contained in the Loan Documents, other than with respect to the Guarantor under the Guaranty and the Environmental
Indemnity, neither Guarantor, nor any officer, director, shareholder, partner, member, principal, employee of, shall have any personal
liability for, nor be joined as a party to, any action with respect to (i) the payment of any sum which is or may be payable under
this Agreement or the Loan Documents, or (ii) the performance or discharge of any covenants, obligations or undertakings of Borrower.
In addition to the foregoing, in no event will the assets of any officer, director, shareholder, partner, member, principal, employee
of Borrower or Guarantor be available to satisfy any obligation of Guarantor thereunder.
(g) Notwithstanding
the foregoing provisions of this Section 9.3 or anything to the contrary in this Agreement or the other Loan Documents, (i) Guarantor
shall have no liability under Sections 9.3(b)(ix), (xiii), or (xiv) or Section 9.3(c) for
Permitted Equipment Financing or Permitted Trade Payables that constituted Permitted Equipment Financing or Permitted Trade Payables
when incurred but, due to insufficient cash flow at the Property, subsequently breaches the definition of Permitted Equipment Financing
or Permitted Trade Payables by being outstanding for longer than any time period specified in such definitions, or by exceeding the one
percent (1%) or two percent (2%) cap, as applicable, specified in such definitions, and (ii) Guarantor shall have no liability under
any of the Loan Documents with respect to liabilities or obligations arising from events, acts, omissions, facts or circumstances first
occurring from and after the date that Lender (or any Affiliate, designee, agent, nominee, successor to or assignee of Lender) takes
title to the Property or the ownership interests in Borrower pursuant to a foreclosure, deed-in-lieu of foreclosure, assignment-in-lieu
of foreclosure, other exercise of remedies under the Loan Documents or any other means, and which do not arise as a result of the acts
of Guarantor or any Affiliate thereof; provided, however, that Guarantor’s liability shall be automatically reinstated upon any
such foreclosure or conveyance being set aside, rescinded or invalidated.
Section 9.4 Matters
Concerning Manager. If (a) an Event of Default hereunder has occurred and remains uncured, (b) Manager shall become
subject to a Bankruptcy Action, or (c) a material default by Manager occurs under the Management Agreement and remains uncured beyond
all applicable notice and cure periods, Borrower shall, at the request of Lender, terminate the Management Agreement and replace the
Manager with a Qualified Manager pursuant to a Replacement Management Agreement.
Section 9.5 Servicer.
At the option of Lender, the Loan may be serviced by a servicer/trustee (the “Servicer”) selected by Lender and Lender
may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to
a servicing agreement (the “Servicing Agreement”) between Lender and Servicer. Upon the appointment of a Servicer,
to the extent of the delegation to such Servicer, the term “Lender” shall be deemed to include the “Servicer”.
Borrower shall be responsible for any set-up fees, or any other initial costs relating to the appointment of any Servicer, in each case,
of up to $500.00, provided, however, that Borrower shall not be responsible for payment of the monthly servicer fee due to Servicer.
In addition and notwithstanding the foregoing, Borrower shall be responsible for any fees and expenses of Lender or any securitization
trust, servicer, special servicer, trust advisor, trustee, certificate administrator and any third party fees and expenses, including,
without limitation, reasonable attorneys’ fees and disbursements, incurred or arising as a result of or following a request by
Borrower, an Event of Default, a failure to pay sums when due as and when required under the Loan Documents, the Loan being transferred
to a special servicer and while the Loan is a specially serviced loan, including, without limitation, (a) interest on advances made
by the servicer, special servicer, trustee or certificate administrator; (b) special servicer fees, workout fees, liquidation fees,
as well as other compensation payable to the special servicer as a result of the Property becoming a foreclosed property; (c) indemnification
obligations to any such persons and any of their respective directors, officers, members, managers, partners, employees, agents, Affiliates
or other “controlling persons” within the meaning of the Securities Act of 1933; and (d) taxes payable from the assets
of a securitization trust and tax related expenses, but only to the extent Borrower is otherwise required to pay the same under the Loan
Documents or by law. Notwithstanding the foregoing, all of such costs and expenses set forth in clauses (a) through (d) of
the preceding sentence shall exclude (i) the regular monthly fee due to the servicer, the trustee and the certificate administrator,
(ii) those costs and expenses which are identified pursuant to the servicing agreement with respect to such securitization trust
as expenses to be borne by the servicer, special servicer, trust advisor, trustee or certificate administrator without reimbursement
as an advance or otherwise from the related securitization trust (including without limitation such person’s ordinary overhead
expenses and the expenses of such person associated with maintaining a fidelity bond or errors and omissions insurance with respect to
itself, preparing annual compliance statements with respect to its own performance and preparing and filing and maintaining ordinary
tax information reports and returns for such securitization trust) and (iii) those costs and expenses incurred as a result of the
gross negligence, fraud, bad faith or willful misconduct of the servicer, special servicer, trustee or certificate administrator.
Section 9.6 Lender/Servicer
Loan Administration. From and after the date hereof, the owner and holder of the Note shall be deemed the agent of the holder(s) of
the Note in connection with all matters related to the administration, servicing and payment of the Loan, and such owner and holder of
the Note shall be Borrower’s point of contact in connection with all such matters. Notwithstanding the forgoing, following the
transfer of the Note to a Securitization, the Servicer for such Securitization to which the Note is transferred shall be deemed the agent
of the holder(s) of the Note, and such Servicer shall be Borrower’s point of contact in connection with all matters related
to the administration, servicing and payment of the Loan.
Section 9.7 Mezzanine
Financing. Lender shall have the right at any time to divide the Loan into two or more parts (the “Mezzanine Option”):
a mortgage loan (the “Mortgage Loan”) and one or more mezzanine loans (the “Mezzanine Loan(s)”).
The principal amount of the Mortgage Loan plus the principal amount of the Mezzanine Loan(s) shall equal the outstanding principal
balance of the Loan immediately prior to the creation of the Mortgage Loan and the Mezzanine Loan(s). In effectuating the foregoing,
the Mezzanine Lender will make a loan to the Mezzanine Borrower(s); Mezzanine Borrower(s) will contribute the amount of the Mezzanine
Loan(s) to Borrower and Borrower will apply the contribution to pay down the Mortgage Loan. The Mortgage Loan and the Mezzanine
Loan(s) will be on the same terms and subject to the same conditions set forth in this Agreement, the Note, the Security Instrument
and the other Loan Documents except as follows:
(a) Lender
shall have the right to establish different interest rates and debt service payments for the Mortgage Loan(s) and the Mezzanine
Loan and to require the payment of the Mortgage Loan and the Mezzanine Loan(s) in such order of priority as may be designated by
Lender; provided, that (i) the total loan amounts for the Mortgage Loan and the Mezzanine Loan(s) shall equal the amount of
the Loan immediately prior to the creation of the Mortgage Loan and the Mezzanine Loan(s), (ii) the initial weighted average interest
rate of the Mortgage Loan and the Mezzanine Loan(s) shall initially on the date created equal the interest rate which was applicable
to the Loan immediately prior to creation of the Mortgage Loan and the Mezzanine Loan(s) and (iii) the initial debt service
payments on the Mortgage Loan note and the Mezzanine Loan note(s) shall initially on the date created equal the debt service payment
which was due under the Loan immediately prior to creation of the Mortgage Loan and the Mezzanine Loan(s). The Mezzanine Loan(s) will
be made pursuant to Lender’s standard mezzanine loan documents (as such documents may be revised as a result of reasonable negotiation).
The Mezzanine Loan(s) will be subordinate to the Mortgage Loan and will be governed by the terms of an intercreditor agreement between
the holders of the Mortgage Loan and the Mezzanine Loan(s).
(b) The
borrower(s) under the Mezzanine Loan(s) (“Mezzanine Borrower(s)”) shall be a special purpose, bankruptcy
remote entity pursuant to applicable Rating Agency criteria and otherwise acceptable to Lender that shall own directly or indirectly
one hundred percent (100%) of Borrower. The direct equity holder(s) of Mezzanine Borrower(s) (such holder(s) the “Second
Level SPE”) shall be a special purpose, bankruptcy remote entity pursuant to applicable Rating Agency criteria and shall own
directly or indirectly one hundred percent (100%) of Mezzanine Borrower. The security for the Mezzanine Loan shall be a pledge of one
hundred percent (100%) of the direct and indirect ownership interests in Borrower and Mezzanine Borrower.
(c) Mezzanine
Borrower, Second Level SPE and Borrower shall cooperate with all reasonable requests of Lender in order to divide the Loan into a Mortgage
Loan and one or more Mezzanine Loan(s) and shall execute and deliver such documents as shall reasonably be required by Lender and
any Rating Agency in connection therewith, including, without limitation, (i) the delivery of non-consolidation opinions; (ii) the
modification of organizational documents and Loan Documents, provided that Borrower shall not be required to so modify or amend any Loan
Document or organizational documents if any such changes shall increase Borrower’s or Guarantor’s or their Affiliates’
obligations or decrease Borrower’s or Guarantor’s or their Affiliates’ rights under the Loan Documents or organizational
documents (in each case, other than to a de minimis extent); (iii) authorize Lender to file any UCC-1 Financing Statements reasonably
required by Lender to perfect its security interest in the collateral pledged as security for the Mezzanine Loan(s); (iv) execute
such other documents reasonably required by Lender in connection with the creation of the Mezzanine Loan(s), including, without limitation,
a guaranty substantially similar in form and substance to the Guaranty delivered on the date hereof in connection with the Loan, an environmental
indemnity substantially similar in form and substance to the Environmental Indemnity delivered on the date hereof in connection with
the Loan and a conditional assignment of management agreement substantially similar in form and substance to the Assignment of Management
Agreement delivered on the date hereof in connection with the Loan; (v) deliver appropriate authorization, execution and enforceability
opinions with respect to the Mezzanine Loan(s) and amendments to the Mortgage Loan; and (vi) deliver a “UCC-9”,
“Eagle 9” or equivalent UCC title insurance policy, satisfactory to Lender, insuring the perfection and priority of the lien
on the collateral pledged as security for the Mezzanine Loan. For the avoidance of doubt, in no event shall the Mezzanine Loan have any
features of “preferred equity.”
(d) All
costs and expenses incurred by Lender, Borrower or Guarantor in connection with this Section 9.7 shall be paid in accordance
with Section 9.1.1(d) hereof.
ARTICLE X.
MISCELLANEOUS
Section 10.1 Survival.
This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto
shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force
and effect so long as all or any of the Debt is outstanding and unpaid unless a longer period is expressly set forth herein or in the
other Loan Documents. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include
the successors and assigns of such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall
inure to the benefit of the legal representatives, successors and assigns of Lender. Any representations, warranties or covenants made
by Borrower hereunder are being made by the applicable Borrower as to itself only and not on behalf of any other Borrower.
Section 10.2 Intentionally
Omitted.
Section 10.3 Governing
Law.
(a) LENDER
HAS OFFICES IN THE STATE OF NEW YORK AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK
(“GOVERNING STATE”), WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION
EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE
(WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES
THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIEN AND SECURITY INTEREST CREATED PURSUANT HERETO AND PURSUANT TO
THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE APPLICABLE INDIVIDUAL PROPERTY
IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK
SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER.
TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY
OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW.
(b) ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS
(“ACTION”) MAY AT LENDER’S OPTION BE INSTITUTED IN (AND IF ANY ACTION IS ORIGINALLY BROUGHT IN ANOTHER VENUE,
THE ACTION SHALL AT THE ELECTION OF LENDER BE TRANSFERRED TO) ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK,
PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND EACH OF LENDER AND BORROWER WAIVES ANY OBJECTIONS WHICH IT
MAY NOW OR HEREAFTER HAVE BASED ON VENUE OR FORUM NON CONVENIENS OF ANY SUCH ACTION. BORROWER DOES HEREBY DESIGNATE AND APPOINT:
THE
CORPORATION SERVICE COMPANY
251
LITTLE FALLS DRIVE,
WILMINGTON,
DELAWARE 19808
AS
ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT,
ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN THE STATE OF NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID
ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT
EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER
OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE
AUTHORIZED AGENT (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL
PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.
Section 10.4 Modification,
Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement,
or of the Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless
the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective
only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or
demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances.
Section 10.5 Delay
Not a Waiver. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition,
covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the Note or under any other Loan Document,
or any other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise
thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by
way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Note or any other Loan Document,
Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement,
the Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount.
Section 10.6 Notices.
All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document shall be given in writing
and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid,
return receipt requested or (b) expedited prepaid delivery service, either commercial or United States Postal Service, with proof
of attempted delivery, or (c) by email and with a second copy to be sent to the intended recipient by any other means permitted
under this Section, addressed as follows (or at such other address and Person as shall be designated from time to time by any party hereto,
as the case may be, in a written notice to the other parties hereto in the manner provided for in this Section):
If
to Lender: | |
Barclays
Capital Real Estate Inc. 745 Seventh Avenue New York, New York 10019 Attention: Adam Scotto
Email: adam.scotto@barclays.com |
And: |
|
KeyBank
National Association 11501 Outlook Street, Suite 300 Overland Park, Kansas 66211 Attention: Loan Servicing |
And: | |
Société
Générale Financial Corporation |
| |
245 Park Avenue |
| |
New York, New York 10167 |
| |
Attention: COO –
CM Loan Origination |
| |
Email: list.us-glba-abp-cmbs-notices@sgcib.com |
And: | |
Bank
of Montreal |
| |
c/o BMO Capital Markets Corp. |
| |
151 West 42nd Street |
| |
New York, New York 10036 |
| |
Attention: Mike Birajiclian
|
| |
Email: Michael.Birajiclian@bmo.com
|
And: | |
Bank
of Montreal | |
| |
c/o BMO Capital Markets Corp. | |
| |
151 West 42nd Street
|
| |
New York, New York 10036 | |
| |
Attention: Legal Department
| |
|
| Email:
BMOCMBSNotices@bmo.com |
With
a copy to: | |
Frost
Brown Todd LLP 400 West Market Street, Suite 3200 Louisville, Kentucky 40202 Attention: Barry A. Hines, Esq.
Email: bhines@fbtlaw.com |
If
to a Borrower: | |
c/o
AR Global |
| |
650 Fifth Avenue, 30th
Floor |
| |
New York, New York 10019 |
| |
Attention: Michael Anderson |
| |
Email: MAnderson@ar-global.com |
with
a copy to: | |
Arnold &
Porter |
| |
601 Massachusetts Ave., NW |
| |
Washington, D.C. 20001 |
| |
Attention: Jon Boswell and
Amy Rifkind |
| |
Email: Jon.Boswell@arnoldporter.com
and
Amy.Rifkind@arnoldporter.com |
A
notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery; in the case of registered or certified
mail, when delivered or the first attempted delivery on a Business Day; or in the case of expedited prepaid delivery, upon the first
attempted delivery on a Business Day. Notice for any party may be given by its respective counsel. Additionally, Notice from Lender may
also be given by Servicer and Lender hereby acknowledges and agrees that Borrower shall be entitled to rely on any Notice given by Servicer
as if it had been sent by Lender.
Section 10.7 Trial
by Jury. TO THE FULLEST EXTENT NOW OR HEREAFTER PERMITTED BY APPLICABLE LAW, BORROWER AND LENDER HEREBY AGREE NOT TO ELECT A
TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL
NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH.
THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY
EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER AND BORROWER ARE HEREBY AUTHORIZED
TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER.
Section 10.8 Headings.
The Article or Section headings and the Table of Contents in this Agreement are included herein for convenience of reference
only and shall not constitute a part of this Agreement for any other purpose.
Section 10.9 Severability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Agreement.
Section 10.10 Preferences.
Except as otherwise expressly set forth herein or in any of the other Loan Documents, Lender shall have the continuing and exclusive
right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder. To the
extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law,
state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the obligations hereunder
or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not
been received by Lender.
Section 10.11 Waiver
of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from Lender except with respect to matters
for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower
and except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving
of notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this Agreement
or the other Loan Documents do not specifically and expressly provide for the giving of notice by Lender to Borrower.
Section 10.12 Remedies
of Borrower. If a claim or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting
in any case where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation
to act reasonably or promptly, Borrower agrees that neither Lender nor its agents shall be liable for any monetary damages, and Borrower’s
sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that
any action or proceeding to determine whether Lender has acted reasonably shall be determined by an action seeking declaratory judgment.
Notwithstanding the foregoing, the terms of this Section 10.12 shall not apply with respect to the gross negligence, illegal
acts, bad faith, willful misconduct or fraud of Lender, Servicer or its agents.
Section 10.13 Expenses;
Indemnity.
(a) Subject
to the terms of Section 9.1.1(d) and any other provisions of this Agreement or the other Loan Documents that expressly
provide otherwise, Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon receipt of written notice
from Lender for all reasonable out-of-pocket costs and expenses (including reasonable out-of-pocket attorneys’ fees and expenses)
incurred by Lender in connection with (i) the preparation, negotiation, execution and delivery of this Agreement and the other Loan
Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing all opinions by counsel
for Borrower (including any opinions requested prior to the Closing Date by Lender as to any legal matters arising under this Agreement
or the other Loan Documents with respect to the Property or any portion thereof); (ii) Borrower’s ongoing performance of and
compliance with Borrower’s respective agreements and covenants contained in this Agreement and the other Loan Documents on its
part to be performed or complied with after the Closing Date, including confirming compliance with environmental and insurance requirements;
(iii) Lender’s ongoing performance and compliance with all agreements and conditions contained in this Agreement and the other
Loan Documents on its part to be performed or complied with after the Closing Date; (iv) the negotiation, preparation, execution,
delivery and administration of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents
and any other documents or matters requested by Lender; (v) securing Borrower’s compliance with any requests made pursuant
to the provisions of this Agreement; (vi) the filing and recording fees and expenses, title insurance and fees and expenses of counsel
for providing to Lender all reasonably required legal opinions, and other similar expenses incurred in creating and perfecting the Lien
in favor of Lender pursuant to this Agreement and the other Loan Documents, each with respect to the Property; (vii) enforcing or
preserving any rights, in response to third party claims or the prosecuting or defending of any action or proceeding or other litigation,
in each case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Property (or any portion thereof), or
any other security given for the Loan; and (viii) enforcing any obligations of or collecting any payments due from Borrower under
this Agreement, the other Loan Documents or with respect to the Property or any portion thereof (including any fees actually and reasonable
incurred by Servicer in connection with the transfer of the Loan to a special servicer prior to an Event of Default) or in connection
with any restructuring of the credit arrangements provided under this Agreement in the nature of a “work out” or of any insolvency
or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses
to the extent the same arise by reason of the bad faith, gross negligence, illegal acts, fraud or willful misconduct of Lender (or Servicer).
Any actual, reasonable cost and expenses due and payable to Lender may be paid from any amounts in the Clearing Account or Cash Management
Account, as applicable.
(b) Subject
to Section 9.3, Borrower shall indemnify, defend and hold harmless the Indemnified Parties from and against any and all other
actual out-of-pocket liabilities, obligations, losses, damages (excluding consequential, punitive, special, exemplary and indirect damages),
penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable
out-of-pocket fees and disbursements of counsel in connection with any investigative, administrative or judicial proceeding commenced
or threatened, whether or not an Indemnified Party shall be designated a party thereto), that are imposed on, incurred by, or asserted
against any Indemnified Party in any manner relating to or arising out of (i) any breach by Borrower of its obligations under, or
any material misrepresentation by Borrower contained in, this Agreement or the other Loan Documents, or (ii) the use or intended
use of the proceeds of the Loan (collectively, the “Indemnified Liabilities”); provided, however, that
Borrower shall not have any obligation to any Indemnified Party hereunder to the extent that such Indemnified Liabilities arise from
the gross negligence, illegal acts, fraud or willful misconduct of such Indemnified Party, or any liability for any Indemnified Liabilities
specifically relating to the condition of any Individual Property to the extent arising from events first occurring from and after Lender
(or its designee or transferee) takes title to the Property by foreclosure, deed-in-lieu thereof or otherwise. To the extent that the
undertaking to indemnify, defend and hold harmless set forth in the preceding sentence may be unenforceable because it violates any law
or public policy, Borrower shall pay the maximum portion that it is permitted to pay and satisfy under applicable law to the payment
and satisfaction of all Indemnified Liabilities incurred by the Indemnified Parties.
(c) Separate
from the Securitization costs specifically set forth in Section 9.1.1(d) hereof, Borrower covenants and agrees to pay
for or, if Borrower fails to pay, to reimburse Lender for, any fees and expenses incurred by any Rating Agency in connection with any
Rating Agency review of the Loan, the Loan Documents or any transaction contemplated thereby or any consent, approval, waiver or confirmation
obtained from such Rating Agency pursuant to the terms and conditions of this Agreement or any other Loan Document that results from
an action or request of Borrower and Lender shall be entitled to require payment of such fees and expenses as a condition precedent to
the obtaining of any such consent, approval, waiver or confirmation.
Section 10.14 Schedules
Incorporated. The Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as
if set forth in the body hereof.
Section 10.15 Offsets,
Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement, the Note and the other Loan Documents
shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower may
otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted
by Borrower in any action or proceeding brought by any such assignee upon such documents and any such right to interpose or assert any
such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower.
Section 10.16 No
Joint Venture or Partnership; No Third Party Beneficiaries.
(a) Borrower
and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and lender.
Nothing herein or therein is intended to create a joint venture, partnership, tenancy in common, or joint tenancy relationship between
Borrower and Lender nor to grant Lender any interest in the Property (or any portion thereof) other than that of mortgagee, beneficiary
or lender.
(b) This
Agreement and the other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in this Agreement or the
other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the
performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make
the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have standing to require satisfaction
of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of
strict compliance with any or all thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions,
any or all of which may be freely waived in whole or in part by Lender if, in Lender’s discretion, Lender deems it advisable or
desirable to do so.
Section 10.17 Publicity.
All news releases, publicity or advertising by Borrower or its Affiliates other than releases required by law or regulation through any
media intended to reach the general public which refers to the Loan Documents or the financing evidenced by the Loan Documents, to Lender
or any of their Affiliates shall be subject to the prior written approval of Lender in their reasonable discretion.
Section 10.18 Waiver
of Marshalling of Assets. To the fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives
all rights to a marshalling of the assets of Borrower, Borrower’s partners and others with interests in Borrower, and of the Property,
and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead
exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender
under the Loan Documents to a sale of the Property (or any portion thereof) for the collection of the Debt without any prior or different
resort for collection or of the right of Lender to the payment of the Debt out of the net proceeds of the Property (or any portion thereof)
in preference to every other claimant whatsoever.
Section 10.19 Waiver
of Counterclaim. Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action
or proceeding brought against it by Lender or its agents.
Section 10.20 Conflict;
Construction of Documents; Reliance. In the event of any conflict between the provisions of this Agreement and any of the other
Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by counsel
in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to
the principle of construing their meaning against the party which drafted same. Borrower acknowledges that, with respect to the Loan,
Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any statements,
representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation
whatsoever in the exercise of any rights or remedies available to it under any of the Loan Documents or any other agreements or instruments
which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of
them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on the basis of
the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the
business of real estate financings and other real estate transactions and investments which may be viewed as adverse to or competitive
with the business of Borrower or its Affiliates.
Section 10.21 Prior
Agreements. This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in respect
of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written,
between Borrower and Lender are superseded by the terms of this Agreement and the other Loan Documents.
Section 10.22 Liability.
If Borrower consists of more than one (1) Person the obligations and liabilities of each Person shall be joint and several. Under
no circumstances whatsoever shall Lender have any liability for punitive, special, consequential or incidental damages in connection
with, arising out of, or in any way related to or under this Loan Agreement or any other Loan Document or in any way related to the transactions
contemplated or any relationship established by this Agreement or any other Loan Document or any act, omission or event occurring in
connection herewith or therewith, and, to the extent not expressly prohibited by applicable laws, Borrower for itself and its Guarantor
and indemnitors waives all claims for punitive, special, consequential or incidental damages. Lender shall have no duties or responsibilities
except those expressly set forth in this Agreement, the Security Instrument and the other Loan Documents. Neither Lender nor any of its
officers, directors, employees or agents shall be liable for any action taken or omitted by them as such hereunder or in connection herewith,
unless caused by their fraud, bad faith, gross negligence or willful misconduct. This Agreement shall be binding upon and inure to the
benefit of Borrower and Lender and their respective successors and assigns forever. Under no circumstances whatsoever shall Borrower
have any liability for punitive, special, consequential or incidental damages in connection with, arising out of, or in any way related
to or under this Loan Agreement or any other Loan Document or in any way related to the transactions contemplated or any relationship
established by this Agreement or any other Loan Document and, to the extent not expressly prohibited by applicable laws, Lender waives
all claims for punitive, special, consequential or incidental damages.
Section 10.23 Certain
Additional Rights of Lender (VCOC). Solely to the extent that Lender or any direct or indirect holder of an interest in the Loan
must qualify as a “venture capital operating company” (as defined in Department of Labor Regulation 29 C.F.R. § 2510.3
101), Lender shall have the right to consult with and advise Borrower regarding significant business activities and business and financial
developments of Borrower, provided that any such advice or consultation or the result thereof shall be completely nonbinding on Borrower.
Section 10.24 OFAC.
Borrower hereby represents, warrants and covenants that neither Borrower nor any Guarantor is (or will be) a person with whom Lender
is restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department
of the Treasury of the United States of America (including, those Persons named on OFAC’s Specially Designated and Blocked Persons
list) or under any statute, executive order (including, the September 24, 2001 Executive Order Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and shall not
knowingly engage in any dealings or transactions or otherwise be knowingly associated with such persons. In addition, Borrower hereby
covenants to provide Lender with any additional information that Lender deems necessary from time to time in order to ensure compliance
with all applicable laws concerning money laundering and similar activities.
Section 10.25 Duplicate
Originals; Counterparts. This Agreement may be executed in any number of duplicate originals and each duplicate original shall
be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterpart shall be deemed an original
instrument and all of which together shall constitute a single Agreement. The failure of any party hereto to execute this Agreement,
or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.
Section 10.26 Confidentiality.
Notwithstanding anything to the contrary in this Agreement, Lender agrees that any reports, statements or other information required
to be delivered or provided under this Agreement or any of the other Loan Documents and furnished at any time and from time to time by
Borrower or Guarantor (“Furnished Information”), which is provided to Lender by or on behalf of Borrower or Guarantor,
shall be kept confidential. Any Furnished Information may also be disclosed to any Rating Agency, underwriter or nationally recognized
statistical rating organization (“NRSRO”); provided (i) each Rating Agency or underwriter to which such information
is disclosed has executed its usual and customary confidentiality agreement and (ii) any NRSRO desiring access to any secured website
containing such information shall, as a condition to its access to, have either furnished to the Securities and Exchange Commission the
certification required under Rule 17g-5(e) of the Exchange Act or be required to agree to (or “click through”)
such website’s confidentiality provisions. Nothing herein shall preclude Lender from disclosing any Furnished Information (A) as
required by any applicable Legal Requirement, (B) which is already publicly available as a result of disclosure by any other party,
(C) in response to any order of any court or other Governmental Authority, or (D) if Lender is required to do so in connection
with any litigation or similar proceeding; provided that in the case of clause (A), (C) or (D), Lender shall exercise reasonable
efforts to give prior written notice of such requirement to Borrower or Guarantor, as applicable, (to the extent it is lawful to do so)
in order to permit Borrower or Guarantor, as applicable, to, and shall reasonably cooperate, provided such cooperation shall be at no
cost or expense to Lender, with Borrower or Guarantor, as applicable, in its efforts to, seek a protective order. This Section 10.26
shall survive the repayment of the Loan and the termination of this Agreement.
Section 10.27 Acknowledgement
and Consent to Bail-In of EEA Financial Institutions.
(a) Notwithstanding
anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among the respective parties thereto,
each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such
liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents
to, and acknowledges and agrees to be bound by:
(i) the
application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may
be payable to it by any party hereto that is an EEA Financial Institution; and
(ii) the
effects of any Bail-in Action on any such liability, including, if applicable:
(A) a
reduction in full or in part or cancellation of any such liability;
(B) a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its
parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments
of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document;
or
(C) the
variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution
Authority.
(b) As
used in this Section 10.27 the following terms have the following meanings ascribed thereto: (i) “Affected
Financial Institution” means (I) any EEA Financial Institution or (II) any UK Financial Institution, (ii) “Bail-In
Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of
any liability of an EEA Financial Institution; (iii) “Bail-In Legislation” means, (I) with respect to any
EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European
Union, the implementing law for such EEA Member Country from time to time which is described in the EEA Bail-In Legislation Schedule
and (II) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and
any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment
firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings);
(iv) “EEA Bail-In Legislation Schedule” means the EU Bail In Legislation Schedule published by the Loan Market
Association (or any successor person), as in effect from time to time, (v) “EEA Financial Institution” means
(x) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA
Resolution Authority; (y) any entity established in an EEA Member Country which is a parent of an institution described in clause
(x) of this definition, or (x) any financial institution established in an EEA Member Country which is a subsidiary of an institution
described in clauses (x) or (y) of this definition and is subject to consolidated supervision with its parent; (vi) “EEA
Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway; (vii) “EEA
Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority
of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution; (viii) “UK
Financial Institution” means the BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to
time) promulgated by the United Kingdom Prudential Regulation Authority or any person falling within IFPRU 11.6 of the FCA Handbook (as
amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions
and investment firms, and certain affiliates of such credit institutions or investment firms; (ix) “UK Resolution Authority”
means The Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution;
and (x) “Write-Down and Conversion Powers” means, (I) with respect to any EEA Resolution Authority, the
write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable
EEA Member Country, which write-down and conversion powers are described in the EEA Bail-In Legislation Schedule and (II) with respect
to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change
the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all
or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract
or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or
any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.
Section 10.29 Lender’s
Right to Unwind Cross-Collateralization/Cross-Default. Lender shall have the right, at any time and from time to time or in connection
with a repurchase by Lender of any portion of the Loan in connection with a Securitization, to unilaterally require the release of any
Individual Property or Borrower from the cross-defaulting and the cross-collateralization provisions effected pursuant to the grant of
the Security Instrument from each Borrower and secured by the lien of the applicable Security Instrument. Borrower shall cooperate with
Lender in executing all documents as may be required in connection with splitting the Loan into two or more loans which shall not be
cross-collateralized or cross-defaulted with each other. Borrower shall promptly deliver or cause to be delivered to Lender or its designee
any replacement or substitute loan agreements, promissory notes, security instruments and other loan documents, title, hazard and liability
insurance policies, opinions of counsel and other documents and instruments as Lender may reasonably request in order to effectuate the
foregoing.
Section 10.30 Contributions
and Waivers.
(a) As
a result of the transactions contemplated by the Loan Documents, each individual Borrower will benefit, directly and indirectly, from
each individual Borrower’s obligation to pay the Debt and in consideration therefor each individual Borrower shall allocate such
benefits among themselves and fairly and equitably make contributions among each individual Borrower in the event any payment is made
by an individual Borrower hereunder to Lender which is in excess of the amount attributable to that individual Borrower or its portion
of its Individual Property (such payment being referred to herein as a “Contribution,” and for purposes of this Section 10.30,
includes any exercise of recourse by Lender against any collateral of an individual Borrower and application of proceeds of such collateral
in satisfaction of such individual Borrower’s obligations to Lender under the Loan Documents).
(b) Each
individual Borrower shall be liable hereunder with respect to the Debt only for such total maximum amount (if any) that would not render
its obligations hereunder or under any of the Loan Documents subject to avoidance under Section 548 of the Bankruptcy Code or any
comparable provisions of any State law.
(c) In
order to provide for a fair and equitable contribution among each individual Borrower in the event that any Contribution is made by an
individual Borrower (a “Funding Borrower”), such Funding Borrower shall be entitled to a reimbursement Contribution
(“Reimbursement Contribution”) from all other individual Borrowers for all payments, damages and expenses incurred
by that Funding Borrower in discharging any of the Debt, in the manner and to the extent set forth in this Section 10.30.
(d) For
purposes hereof, the “Benefit Amount” of an individual Borrower as of any date of determination shall be the net value
of the benefits to such individual Borrower and its affiliates from extensions of credit made by Lender to (a) such individual Borrower
and (b) to the other individual Borrowers hereunder and the Loan Documents to the extent such other individual Borrowers have guaranteed
or mortgaged their interest in one or more of the Properties to secure the Debt of such individual Borrower to Lender.
(e) Each
individual Borrower shall be liable to a Funding Borrower in an amount equal to the greater of (A) the (i) ratio of the Benefit
Amount of such individual Borrower to the total amount of Debt, multiplied by (ii) the amount of Debt paid by such Funding Borrower,
or (B) ninety-five percent (95%) of the excess of the fair saleable value of the Individual Property of such individual Borrower
over the total liabilities of such individual Borrower (including the maximum amount reasonably expected to become due in respect of
contingent liabilities) determined as of the date on which the payment made by a Funding Borrower is deemed made for purposes hereof
(giving effect to all payments made by other Funding Borrowers as of such date in a manner to maximize the amount of such Contributions).
(f) In
the event that at any time there exists more than one Funding Borrower with respect to any Contribution (in any such case, the “Applicable
Contribution”), then Reimbursement Contributions from other Borrowers pursuant hereto shall be allocated among such Funding
Borrowers in proportion to the total amount of the Contribution made for or on account of the other individual Borrowers by each such
Funding Borrower pursuant to the Applicable Contribution. In the event that at any time any individual Borrower pays an amount hereunder
in excess of the amount calculated pursuant to this Section 10.30 above, that individual Borrower shall be deemed to be a
Funding Borrower to the extent of such excess and shall be entitled to a Reimbursement Contribution from the other individual Borrowers
in accordance with the provisions of this Section.
(g) Each
individual Borrower acknowledges that the right to Reimbursement Contribution hereunder shall constitute an asset in favor of such individual
Borrower to which such Reimbursement Contribution is owing.
(h) No
Reimbursement Contribution payments payable by an individual Borrower pursuant to the terms of this Section 10.30 shall be
paid until all amounts then due and payable by all of the individual Borrowers to Lender, pursuant to the terms of the Loan Documents,
are paid in full in cash. Nothing contained in this Section 10.30 shall limit or affect in any way the obligations of any
individual Borrower to Lender under the Note or any other Loan Documents.
(i) Each
individual Borrower waives:
(i) any
right to require Lender to proceed against any other individual Borrower or any other person or to proceed against or exhaust any security
held by Lender at any time or to pursue any other remedy in Lender’s power before proceeding against such individual Borrower;
(ii) any
defense based upon any legal disability or other defense of any other individual Borrower, any guarantor of any other person or by reason
of the cessation or limitation of the liability of any other individual Borrower or any guarantor from any cause other than full payment
of all sums payable under the Note and any of the other Loan Documents;
(iii) any
defense based upon any lack of authority of the officers, directors, partners or agents acting or purporting to act on behalf of any
other individual Borrower or any principal of any other individual Borrower or any defect in the formation of any other individual Borrower
or any principal of any other individual Borrower;
(iv) any
defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor
in any other respects more burdensome than that of a principal;
(v) any
defense based upon any failure by Lender to obtain collateral for the indebtedness or failure by Lender to perfect a lien on any collateral;
(vi) presentment,
demand, protest and notice of any kind except as set forth in the Loan Documents;
(vii) any
defense based upon any failure of Lender to give notice of sale or other disposition any collateral to any other individual Borrower
or to any other person or entity or any defect in any notice that may be given in connection with any sale or disposition of any collateral;
(viii) any
defense based upon any failure of Lender to comply with applicable laws in connection with the sale or other disposition of any collateral,
including, without limitation, any failure of Lender to conduct a commercially reasonable sale or other disposition of any collateral;
(ix) any
defense based upon any election by Lender, in any bankruptcy proceeding, of the application or non-application of Section 1111(6)(2) of
the Bankruptcy Code or any successor statute;
(x) any
defense based upon any use of cash collateral under Section 363 of the Bankruptcy Code;
(xi) any
defense based upon any agreement or stipulation entered into by Lender with respect to the provision of adequate protection in any bankruptcy
proceeding;
(xii) any
defense based upon any borrowing or any grant of a security interest under Section 364 of the Bankruptcy Code;
(xiii) any
defense based upon the avoidance of any security interest in favor of Lender for any reason;
(xiv) any
defense based upon any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding,
including any discharge of, or bar or stay against collecting, all or any of the obligations evidenced by the Note or owing under any
of the Loan Documents; and
(xv) any
defense or benefit based upon an individual Borrower’s, or any other party’s, resignation of the portion of any obligation
secured by the applicable Security Instrument to be satisfied by any payment from any other individual Borrower or any such party.
(j) Each
individual Borrower waives:
(i) all
rights and defenses arising out of an election of remedies by Lender even though the election of remedies, such as nonjudicial foreclosure
with respect to security for the Loan or any other amounts owing under the Loan Documents, has destroyed such individual Borrower’s
rights of subrogation and reimbursement against any other individual Borrower;
(ii) all
rights and defenses that such individual Borrower may have because any of the Debt is secured by real property. This means, among other
things: (i) Lender may, subject to Section 9.3 hereof, collect from such individual Borrower without first foreclosing
on any real or personal property collateral pledged by any other individual Borrower, (ii) if Lender forecloses on any real property
collateral pledged by any other individual Borrower, (a) except as provided by applicable law, the amount of the Debt may be reduced
only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price,
(b) Lender may, subject to Section 9.3 hereof, collect from such individual Borrower even if any other individual Borrower,
by foreclosing on the real property collateral, has destroyed any right such individual Borrower may have to collect from any other individual
Borrower. This is an unconditional and irrevocable waiver of any rights and defenses such individual Borrower may have because any of
the Debt is secured by real property; and
(iii) any
claim or other right which individual Borrower might now have or hereafter acquire against any other individual Borrower or any other
person that arises from the existence or performance of any obligations under the Note, the Security Instruments or the other Loan Documents,
including, without limitation, any of the following: (i) any right of subrogation, reimbursement, exoneration, contribution, or
indemnification; or (ii) any right to participate in any claim or remedy of Lender against any other individual Borrower or any
collateral security therefor, whether or not such claim, remedy or right arises in equity or under contract, statute or common law.
Section 10.31 Co-Lenders.
(a) At
all times (i) the liabilities of Lender shall be several and not joint, (ii) no Co-Lender shall be responsible for the obligations
of any other Co-Lender, and (iii) each Co-Lender shall be liable to Borrower only for their respective Ratable Share of the Loan.
Notwithstanding anything to the contrary herein, all indemnities by Borrower and obligations for costs, expenses, damages or advances
set forth herein shall run to and benefit each Co-Lender in accordance with its Ratable Share.
(b) Each
Co-Lender agrees that it has, independently and without reliance on the other Co-Lender, and based on such documents and information
as it has deemed appropriate, made its own credit analysis of Borrower and its affiliates and decision to enter into this Agreement and
that it will, independently and without reliance upon the other Co-Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own analysis and decisions in taking or not taking action under this Agreement or under
any other Loan Document.
(c) Notwithstanding
anything to the contrary contained in this Agreement or any of the other Loan Documents, Lender hereby appoints Lead Lender to serve
as non-fiduciary administrative agent and collateral agent for all Lenders and hereby agrees that Lead Lender shall be the sole Lender
to whom payments, notices, requests and other communications shall be addressed and from whom notices, requests and communications shall
be received (subject, in each case, to appointment of a Servicer, to receive such payments and send and receive such notices, requests
and other communications). No Lender shall have any liabilities or responsibilities to Borrower on account of the failure of any other
Lender to perform its obligations hereunder to any Lender on account of the failure of Borrower to perform its obligations hereunder
or under any other Loan Document.
(d) Barclays
Capital Real Estate Inc. or an Affiliate thereof that owns a portion of the Loan shall be the initial “Lead Lender”
(provided, however, that following the first securitization of any portion of the Loan, the “Lead Lender” shall mean
and refer to such securitization (subject to the appointment of the servicer thereunder pursuant to the terms of the Lender Documents)),
provided that at any time (i) during the continuance of an Event of Default or (ii) pursuant to the terms of any of the Lender
Documents, the Lead Lender may, without the consent of Borrower or any of its Affiliates, resign or be replaced with a single Lender
that is either then the sole Lender or is a Lender that has otherwise been designated as the replacement Lead Lender under the Lender
Documents. Lender shall provide Borrower with notice of any resignation or replacement as described in the immediately preceding sentence
within thirty (30) days following such resignation or replacement. Upon the appointment of any successor Lead Lender hereunder, such
successor Lead Lender shall succeed to and become the Lead Lender hereunder and any further resignation or replacement of any successor
Lead Lender shall be subject to the terms and conditions of this Section 10.31(d). Notwithstanding the foregoing, Borrower acknowledges
and agrees that if the Loan is sold by any Lender such that the Loan is held by a single Lender, then automatically, and without any
further action by any such Lender, all references to Lead Lender hereunder shall be deemed to refer to such single Lender (or affiliate
appointed thereby) that holds the Loan. Lender shall provide Borrower with notice of any sale as described in the immediately preceding
sentence within thirty (30) days following such sale.
[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly authorized representatives, all as of
the day and year first above written.
BORROWER:
|
ARC
LCROWTX001, LLC
ARC
SWHOUTX001, LLC
ARC
CTCHRNC001, LLC
ARC
QSOKCOK001, LLC
ARG
NRTAMFL001, LLC
ARG
PSREYOH001, LLC
ARG
WCSALNC001, LLC
ARG
WSCLAIN001, LLC
ARG
EMEVGIL001, LLC
ARG
CALAFLA001, LLC
ARG
SCROCNC001, LLC
ARG
TMMARGA001, LLC
ARG
SVJEFMO001, LLC
ARG
FTFTWIN001, LLC
ARG
CCCARPA001, LLC
ARG
TCHATMS001, LLC
ARG
HTMANWI001, LLC
ARG
OTOWEKY001, LLC
ARG
LSSALMD001, LLC
ARG
PCGROOH001, LLC
ARG
HCHOULA001, LLC
ARG
LMLAWOK001, LLC
ARG
DMDERKS001, LLC
ARG
TVLOUTN001, LLC
ARG
MPELYOH001, LLC
ARG
NLGAIGA001, LLC
ARG
WASUMSC001, LLC
ARC
NWNCHSC001, LLC
ARG
VPALBNM001, LLC,
each
a Delaware limited liability company
|
|
By: |
/s/
Michael R. Anderson |
|
Name: |
Michael R. Anderson |
|
Title: |
Authorized Signatory for each entity listed above |
[Signatures
continue on the following page]
Loan
Agreement
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly authorized representatives, all as of
the day and year first above written.
|
LENDER: |
|
|
|
BARCLAYS CAPITAL REAL ESTATE INC., a
Delaware corporation |
|
|
|
By: |
/s/
Adam Scotto |
|
Name: |
Adam Scotto |
|
Title: |
Authorized Signatory |
Loan
Agreement
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly authorized representatives, all as of
the day and year first above written.
|
LENDER: |
|
|
|
SOCIÉTÉ GÉNÉRALE
FINANCIAL CORPORATION, a Delaware corporation |
|
|
|
By: |
/s/
Kevin Kelley |
|
Name: |
Kevin Kelley |
|
Title: |
Vice President |
Loan
Agreement
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly authorized representatives, all as of
the day and year first above written.
|
LENDER: |
|
|
|
KEYBANK NATIONAL ASSOCIATION, a
national banking association |
|
|
|
By: |
/s/
Cynthia M. Milioto |
|
Name: |
Cynthia M. Milioto |
|
Title: |
Vice President |
Loan
Agreement
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly authorized representatives, all as of
the day and year first above written.
|
LENDER: |
|
|
|
BANK OF MONTREAL, a Canadian Chartered
bank acting through its Chicago Branch |
|
|
|
By: |
/s/
Michael Birajiclian |
|
Name: |
Michael Birajiclian |
|
Title: |
Authorized Signatory |
Loan
Agreement
Exhibit 10.2
Loan No.: 00022669
GUARANTY AGREEMENT
THIS
GUARANTY AGREEMENT (this “Guaranty”) is made as of August 30, 2023, by THE NECESSITY RETAIL REIT
OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an address at 650 Fifth Avenue, 30th Floor, New York,
New York 10019 (“Guarantor”) in favor of BARCLAYS CAPITAL REAL ESTATE INC., a Delaware corporation, having an
address at 745 Seventh Avenue, New York, New York 10019 (“Barclays”), SOCIÉTÉ GÉNÉRALE
FINANCIAL CORPORATION, a Delaware corporation, having an address at 245 Park Avenue, New York, New York 10167 (“SocGen”),
BANK OF MONTREAL, a Canadian Chartered bank acting through its Chicago Branch, having an address at c/o BMO Capital Markets Corp.,
3 Times Square, New York, New York 10036 and KEYBANK NATIONAL ASSOCIATION, a national banking association, having an address at
11501 Outlook Street, Suite 300, Overland Park, Kansas 66211 (“KeyBank”; and together with Barclays, SocGen and
BMO, and their respective successors and/or assigns, individually and/or collectively, as the context may require, “Lender”).
Recitals
The following recitals are
a material part of this Guaranty:
A. Lender
is making a loan in the principal sum of $260,000,000.00 (the “Loan”) pursuant to that certain Loan Agreement of even
date herewith (the “Loan Agreement”) by and among Lender and the entities identified therein as “Borrower”
(hereinafter referred to individually as a “Borrower” and collectively as “Borrower” or “Borrowers”
as the context may require, provided, however, that the context shall always be one which affords Lender the broadest possible rights
and remedies under the Loan Documents and which permits Lender, in its discretion, to enforce the obligations and liabilities hereunder
against one or more of the entities comprising Borrower), on or about the date of this Guaranty. Guarantor has a significant financial
interest in Lender’s making of the Loan to Borrower, and will realize significant financial benefit from the Loan. The Loan is
evidenced by one or more promissory notes (individually and collectively, as the context may require, the “Note”)
of even date herewith and is secured in part by one or more deeds of trust, mortgages, deeds to secure debt and/or open-end mortgages
(individually and collectively, as the context may require, the “Security Instrument”) encumbering Borrower’s
interest in the Property (as defined in the Loan Agreement) and is further evidenced and secured by the Loan Documents (as defined in
the Loan Agreement). The Loan Documents are hereby incorporated by this reference as if fully set forth in this Guaranty. Any capitalized
terms used in this Guaranty and not otherwise defined herein shall have the meaning set forth in the Loan Agreement.
B. Lender
has required that Guarantor guaranty to Lender the payment of Borrower’s liabilities pursuant to Section 9.3 of the Loan Agreement
(the “Recourse Liabilities”).
C. Lender
is unwilling to make the Loan to Borrower absent this Guaranty.
Agreement
In consideration of Lender’s
agreement to make the Loan to Borrower and other good and valuable consideration, the receipt and legal sufficiency of which is hereby
acknowledged, Guarantor hereby states and agrees as follows:
1. Request
to Make Loan. Guarantor hereby requests that Lender make the Loan to Borrower pursuant to the terms of the Loan Documents.
2. Guaranty
of Obligations.
2.1 Guarantor
hereby absolutely and unconditionally guarantees full payment of the following (collectively, the “Liabilities”): (i) the
Recourse Liabilities (whether arising under the original Loan or any extension, modification, future advance, increase, amendment or modification
thereof); (ii) interest due on amounts owing under any such Recourse Liabilities at the Default Rate to the extent not paid on or
before the expiration of any applicable notice and cure periods with such interest accruing from and after such date until the date paid;
(iii) all reasonable out-of-pocket expenses, including reasonable out-of-pocket attorneys’ fees, actually incurred by Lender
in connection with the enforcement of any of Lender’s rights under this Guaranty; and (iv) to the extent the same relate to
amounts or obligations owing under Recourse Liabilities, all reimbursement and indemnification obligations of Borrower set forth in Section 10.13
of the Loan Agreement. Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, Guarantor shall
have no liability for Liabilities or any other matters hereunder (a) if any acts or omissions creating liability hereunder were caused
by the fraud, bad faith, willful misconduct or gross negligence of Lender or Servicer, or (b) for any events or matters to the extent
that same arise or accrue from and after the date that Lender or its nominee or designee acquires title to the Property by foreclosure
(whether judicial or non-judicial), delivery by Borrower of a deed-in-lieu (or, if applicable, assignment-in-lieu) of foreclosure or otherwise
in connection with any exercise of Lender’s remedies pursuant to the Loan Documents, or (c) for any events or matters to the
extent that same arise or accrue after the date of a Mezzanine Control Event (as defined below), or (d) for any events or matters
to the extent that same arise or accrue from and after the replacement of Guarantor with a Qualified Replacement Guarantor or Post-Merger
Guarantor in accordance with the terms and conditions of the Loan Agreement, or (e) for any events or matters to the extent that
same arise or accrue from and after the occurrence of a transfer and assumption of the Loan pursuant to Section 5.2.10(e) of
the Loan Agreement. For the purposes hereof, a “Mezzanine Control Event” shall mean the occurrence of any of the following
events: (i) the equity interests pledged by a Mezzanine Borrower to Mezzanine Lender are transferred in a public or private foreclosure
or disposition (including without limitation under Section 9-610 of the Uniform Commercial Code); (ii) the equity interests
pledged to Mezzanine Lender are accepted by Mezzanine Lender in full satisfaction of the Mezzanine Loan (including, without limitation,
pursuant to Section 9-621 of the Uniform Commercial Code); or (iii) Guarantor ceases to be in control of Borrower as a result
of the exercise by Mezzanine Lender of any remedies in the Mezzanine Loan Documents; provided in each instance of clause (i) or (ii) above,
the applicable Guarantor does not any longer own any beneficial interest (directly or indirectly) in Borrower.
2.2 Upon
the request of Lender, Guarantor shall immediately pay or perform the Liabilities when they or any of them become due or are to be paid
or performed under the term of any of the Loan Documents. Any amounts received by Lender from any sources and applied by Lender towards
the payment of the Liabilities shall be applied in accordance with the Loan Documents or, during the continuation of an Event of Default,
such order of application as Lender may from time to time elect. All Liabilities shall conclusively be presumed to have been created,
extended, contracted, or incurred by Lender in reliance upon this Guaranty and all dealings between Borrower and Lender shall likewise
be presumed to be in reliance upon this Guaranty.
3. Additional
Advances, Renewals, Extensions and Releases. Guarantor hereby agrees and consents that, without notice to or further consent by Guarantor,
Lender may make additional advances with respect to the Loan or the Property, and the obligations of Borrower in connection with the Loan
may be renewed, extended, modified, accelerated or released by Lender as Lender may deem advisable, and any collateral the Lender may
hold or in which the Lender may have an interest may be exchanged, sold, released or surrendered by it, as it may deem advisable, without
impairing or affecting the obligations of Guarantor hereunder in any way whatsoever.
4. Waivers.
4.1 Guarantor
hereby waives each of the following: (a) any and all notice of the acceptance of this Guaranty or of the creation, renewal or accrual
of any Liabilities or the Debt, present or future (including any additional advances made by Lender under the Loan Documents); (b) the
reliance of Lender upon this Guaranty; (c) notice of the existence or creation of any Loan Document or of any of the Liabilities
or the Debt; (d) protest, presentment, demand for payment, notice of default or nonpayment, notice of dishonor to or upon Guarantor,
Borrower or any other party liable for any of the Liabilities or the Debt; (e) any and all other notices or formalities to which
Guarantor may otherwise be entitled, including notice of Lender’s granting the Borrower any indulgences or extensions of time on
the payment of any Liabilities or the Debt; and (f) promptness in making any claim or demand hereunder; provided, however, notwithstanding
anything to the contrary contained in this Guaranty, no amounts shall be due hereunder from Guarantor to Lender prior to the date which
is ten (10) Business Days after written demand from Lender to Guarantor.
4.2 No
delay or failure on the part of Lender in the exercise of any right or remedy against either Borrower or Guarantor shall operate as a
waiver thereof, and no single or partial exercise by Lender of any right or remedy herein shall preclude other or further exercise thereof
or of any other right or remedy whether contained herein or in the Note or any of the other Loan Documents. No action of Lender permitted
hereunder shall in any way impair or affect this Guaranty.
4.3 Guarantor
acknowledges and agrees that Guarantor shall be and remain absolutely and unconditionally liable for the full amount of all Liabilities
notwithstanding any of the following, and Guarantor waives any defense or counterclaims (other than compulsory counterclaims) to which
Guarantor may be entitled, based upon any of the following, in any proceeding (without prejudice to assert the same in a separate cause
of action at a later time):
(a) Subject
to Section 2.1 above, any or all of the Liabilities being or hereafter becoming invalid or otherwise unenforceable for any reason
whatsoever or being or hereafter becoming released or discharged, in whole or in part, whether pursuant to a proceeding under any bankruptcy
or insolvency laws or otherwise (except in regard to indefeasible payment in full of the Liabilities); or
(b) Lender
failing or delaying to properly perfect or continue the perfection of any security interest or lien on any property which secures any
of the Liabilities, or to protect the property covered by such security interest or enforce its rights respecting such property or security
interest; or
(c) Lender
failing to give notice of any disposition of any property serving as collateral for any Liabilities or failing to dispose of such collateral
in a commercially reasonable manner; or
(d) Any
other circumstance that might otherwise constitute a defense other than payment in full of the Liabilities.
Nothing contained in this Guaranty shall
be construed so as to preclude Guarantor from asserting, on a good faith basis, as a defense to a claim by Lender made under this Guaranty
that (a) Guarantor or Borrower has previously actually indefeasibly paid to Lender the full amount (or a portion thereof) then being
claimed by Lender as being due and owing under this Guaranty and/or (b) the amount of the Liabilities being claimed by Lender to
be due and owing was not calculated by Lender in accordance with the terms of this Guaranty (or the underlying Loan Documents giving rise
to same).
For the purposes of this Guaranty, “indefeasible
payment” or “indefeasibly paid” (as the context requires) means with respect to the making of any payment on or in respect
of the Debt, that such payment of such Debt has been paid in full in cash (or that such payment of such Debt has been otherwise satisfied
in a manner acceptable to the holders of the Debt in their discretion), and such Debt is no longer subject to any recission, restoration,
or return.
5. Guaranty
of Payment. Guarantor agrees that Guarantor’s liability hereunder is primary, absolute and unconditional without regard to the
liability of any other party. This Guaranty shall be construed as an absolute, irrevocable and unconditional guaranty of payment and performance
(and not a guaranty of collection), without regard to the validity, regularity or enforceability of any of the Liabilities. Notwithstanding
anything to the contrary contained herein, this Guaranty shall automatically terminate upon the indefeasible payment in full of the Debt.
6. Guaranty
Effective Regardless of Collateral. This Guaranty is made and shall continue as to any and all Liabilities without regard to any liens
or security interests in any collateral, the validity, effectiveness or enforceability of such liens or security interests, or the existence
or validity of any other guaranties or rights of Lender against any other obligors (subject to the terms of Section 24.3 hereof).
Any and all such collateral, security, guaranties and rights against other obligors, if any, may from time to time without notice to or
consent of Guarantor, be granted, sold, released, surrendered, exchanged, settled, compromised, waived, subordinated or modified, with
or without consideration, on such terms or conditions as may be acceptable to Lender, without in any manner affecting or impairing the
liabilities of Guarantor. Without limiting the generality of the foregoing, it is acknowledged that Guarantor’s liability hereunder
shall survive any foreclosure proceeding, any foreclosure sale, any delivery of a deed in lieu of foreclosure, and any release of record
of the Security Instrument.
7. Additional
Credit. Credit or financial accommodation may be granted or continued from time to time by Lender to Borrower regardless of Borrower’s
financial or other condition at the time of any such grant or continuation, without notice to or the consent of Guarantor and without
affecting Guarantor’s obligations hereunder. Lender shall have no obligation to disclose or discuss with Guarantor its assessment
of the financial condition of Borrower.
8. Rescission
of Payments. If at any time payment of any of the Liabilities or any part thereof is rescinded or must otherwise be restored or returned
by Lender upon the insolvency, bankruptcy or reorganization of Borrower or under any other circumstances whatsoever, this Guaranty shall,
upon such rescission, restoration or return, continue to be effective or shall (if previously terminated) be reinstated, as the case may
be, as if such payment had not been made.
9. Additional
Waivers. So long as any portion of the Liabilities or Debt remains unpaid or any portion of the Liabilities or Debt (or any security
therefor) that has been paid to Lender remains subject to invalidation, reversal or avoidance as a preference, fraudulent transfer or
for any other reason whatsoever (whether under bankruptcy or non-bankruptcy law) to being set aside or required to be repaid to Borrower
as a debtor in possession or to any trustee in bankruptcy, Guarantor irrevocably waives (a) any rights which it may acquire against
Borrower by way of subrogation under this Guaranty or by virtue of any payment made hereunder (whether contractual, under the Bankruptcy
Code or similar state or federal statute, under common law, or otherwise), (b) all contractual, common law, statutory or other rights
of reimbursement, contribution, exoneration or indemnity (or any similar right) from or against Borrower that may have arisen in connection
with this Guaranty, (c) any right to participate in any way in the Loan Documents or in the right, title and interest in any collateral
securing the payment of Borrower’s obligations to Lender, and (d) all rights, remedies and claims relating to any of the foregoing.
If any amount is paid to Guarantor on account of subrogation rights or otherwise, such amount shall be held in trust for its benefit and
shall forthwith be paid to Lender to be applied to the Debt, whether matured or unmatured, in such order as Lender shall determine.
10. Independent
Obligations. The obligations of Guarantor are independent of the obligations of Borrower, and a separate action or actions for payment,
damages or performance may be brought and prosecuted against Guarantor, whether or not an action is brought against Borrower or the security
for Borrower’s obligations, and whether or not Borrower is joined in any such action or actions. Guarantor expressly waives any
requirement that Lender institute suit against Borrower or any other persons, or exercise or exhaust its remedies or rights against Borrower
or against any other person, other guarantor, or other collateral securing all or any part of the Liabilities, prior to enforcing any
rights Lender has under this Guaranty or otherwise. Lender may pursue all or any such remedies at one or more different times without
in any way impairing its rights or remedies hereunder. If there shall be more than one guarantor with respect to any of the Liabilities,
then the obligations of each such guarantor shall be joint and several.
11. Subordination
of Indebtedness of Borrower to Guarantor. Any indebtedness of Borrower to Guarantor now or hereafter existing is hereby subordinated
to the prior payment in full of the Liabilities. Guarantor agrees that following the occurrence and during the continuance of an Event
of Default, until the Liabilities and Debt have been paid in full, Guarantor will not seek, accept or retain for Guarantor’s own
account, any payment (whether for principal, interest, or otherwise) from Borrower for or on account of such subordinated debt. Following
the occurrence and during the continuance of an Event of Default, any payments to Guarantor on account of such subordinated debt shall
be collected and received by Guarantor in trust for Lender and shall be paid over to Lender on account of the Liabilities or Debt, as
Lender determines in its discretion, without impairing or releasing the obligations of Guarantor hereunder. Guarantor hereby unconditionally
and irrevocably agrees that (a) Guarantor will not at any time while the Liabilities remain unpaid, assert against Borrower (or
Borrower’s estate in the event that Borrower becomes the subject of any case or proceeding under any federal or state bankruptcy
or insolvency laws) any right or claim to indemnification, reimbursement, contribution or payment for or with respect to any and all
amounts Guarantor may pay or be obligated to pay Lender, including the Liabilities, and any and all obligations which Guarantor may perform,
satisfy or discharge, under or with respect to the Guaranty, and (b) Guarantor subordinates to the Debt all such rights and claims
to indemnification, reimbursement, contribution or payment that Guarantor may have now or at any time against Borrower (or Borrower’s
estate in the event that Borrower becomes the subject of any case or proceeding under any federal or state bankruptcy or insolvency laws).
12. Claims
in Bankruptcy. Guarantor shall file all claims against Borrower in any bankruptcy or other proceeding in which the filing of claims
is required by law upon any indebtedness of Borrower to Guarantor and will assign to Lender all right of Guarantor thereunder. Guarantor
hereby irrevocably appoints Lender its attorney-in-fact, which appointment is coupled with an interest, to file any such claim that Guarantor
may fail to file, in the name of Guarantor or, in Lender’s discretion, to assign the claim and to cause proof of claim to be filed
in the name of Lender’s nominee. In all such cases, whether in administration, bankruptcy or otherwise, the person or persons authorized
to pay such claim shall pay to Lender the full amount thereof and, to the full extent necessary for that purpose, Guarantor hereby assigns
to Lender all of Guarantor’s rights to any such payments or distributions to which Guarantor would otherwise be entitled.
13. Guarantor’s
Representations and Warranties. Guarantor represents and warrants to Lender (as of the date hereof) that:
13.1 There
is no action or proceeding pending or, to the actual knowledge of Guarantor, threatened (in writing) against Guarantor before any court
or administrative agency which would reasonably be expected to result in any material adverse change in the business or financial condition
of Guarantor or in the property of Guarantor;
13.2 Guarantor
has filed all Federal and state income tax returns which Guarantor has been required to file, and has paid all taxes as shown on said
returns and on all assessments received by Guarantor to the extent that such taxes have become due;
13.3 Neither
the execution nor delivery of this Guaranty nor fulfillment of nor compliance with the terms and provisions hereof will, to the knowledge
of the Guarantor, conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under, or result
in the creation of any lien, charge or encumbrance upon any property or assets of Guarantor under any agreement or instrument to which
Guarantor is now a party or by which Guarantor may be bound;
13.4 This
Guaranty is a valid and legally binding agreement of Guarantor and is enforceable against Guarantor in accordance with its terms subject
to the rights of creditors and general principles of equity;
13.5 Guarantor
has either (i) examined the Loan Documents or (ii) has had an opportunity to examine the Loan Documents and has waived the right
to examine them;
13.6 Guarantor
has the full power, authority, and legal right to execute and deliver this Guaranty. If Guarantor is not an individual, (i) Guarantor
is duly organized, validly existing and in good standing under the laws of the state of its formation, and (ii) the execution, delivery
and performance of this Guaranty by Guarantor has been duly and validly authorized and the person(s) signing this Guaranty on Guarantor’s
behalf has been validly authorized and directed to sign this Guaranty;
13.7 Guarantor
is not an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA or Section 4975
of the Code (a “Plan”) and none of the assets of Guarantor constitute or will constitute “plan assets”
of one or more Plans. If Guarantor is not a natural person, Guarantor further represents and warrants as of the date hereof that (i) Guarantor
is not a “governmental plan” within the meaning of Section 3(32) of ERISA (“Plan Assets”) and (ii) transactions
by or with Guarantor are not subject to State statutes regulating investment of, and fiduciary obligations with respect to, governmental
plans similar to the provisions of Section 406 of ERISA or Section 4975 of the Code currently in effect, which prohibit or otherwise
restrict the transactions contemplated by this Guaranty.
14. Notice
of Litigation. Guarantor shall promptly give Lender notice of all litigation or proceedings before any court or Governmental Authority
affecting Guarantor or its property, except litigation or proceedings which, if adversely determined, would not reasonably be expected
to have a material adverse effect on the financial condition or operations of Guarantor or its ability to perform any of its obligations
hereunder.
15. Access
to Records. Guarantor shall give Lender and its representatives access to, and permit Lender and such representatives to examine,
copy or make extracts from, books, records and documents in the possession of Guarantor relating to the performance of Guarantor’s
obligations hereunder and under any of the Loan Documents, all at such times and as often as Lender may reasonably request. If Guarantor
is not an individual, Guarantor shall continuously maintain its existence and shall not dissolve or permit its dissolution.
16. Assignment
by Lender. In connection with any sale, assignment or transfer of the Loan permitted under the Loan Agreement, Lender may sell, assign
or transfer this Guaranty and all or any of its rights, privileges, interests and remedies hereunder to any other person or entity whatsoever
without notice to or consent by Guarantor, and in such event the assignee shall be entitled to the benefits of this Guaranty and to exercise
all rights, interests and remedies as fully as Lender.
17. Termination.
Subject to Section 24.3 below, this Guaranty shall terminate only when all of the Liabilities and the Debt have been paid in full,
including all interest thereon, late charges and other charges and fees included within the Liabilities and the Debt. When the conditions
described above have been fully met, Lender will, upon request, promptly furnish to Guarantor a written cancellation of this Guaranty.
18. Notices.
All notices, consents, approvals and requests required or permitted hereunder shall be given in writing and shall be effective for all
purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, return receipt requested
or (b) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted delivery,
or (c) by email and with a second copy to be sent to the intended recipient by any other means permitted under this Section, addressed
as follows (or at such other address and Person as shall be designated from time to time by any party hereto, as the case may be, in
a written notice to the other parties hereto in the manner provided for in this Section):
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If to Lender: |
Barclays Capital Real Estate Inc. |
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745 Seventh Avenue |
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New York, New York 10019 |
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Attention: Adam Scotto |
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Email: adam.scotto@barclays.com |
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And: |
Société Générale Financial
Corporation |
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245 Park Avenue |
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New York, New York 10167 |
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Attention: COO – CM Loan Origination |
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Email: list.us-glba-abp-cmbs-notices@sgcib.com |
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And: |
KeyBank National Association |
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11501 Outlook Street, Suite 300 |
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Overland Park, Kansas 66211 |
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Attention Loan Servicing |
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And: |
Bank of Montreal |
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c/o BMO Capital Markets Corp. |
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151 West 42nd Street |
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New York, New York 10036 |
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Attention: Mike Birajiclian |
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Email: Michael.Birajiclian@bmo.com |
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And: |
Bank of Montreal |
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c/o BMO Capital Markets Corp. |
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151 West 42nd Street |
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New York, New York 10036 |
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Attention: Legal Department |
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Email: BMOCMBSNotices@bmo.com |
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With a copy to: |
Frost Brown Todd LLP |
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400 West Market Street, Suite 3200 |
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Louisville, Kentucky 40202 |
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Attention: Barry A. Hines, Esq. |
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Email: bhines@fbtlaw.com |
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If to a Guarantor: |
The Necessity Retail REIT Operating Partnership,
L.P. |
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650 Fifth Avenue, 30th Floor |
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New York, New York 10019 |
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Attention: Michael Anderson |
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Email: MAnderson@ar-global.com |
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with a copy to: |
Arnold & Porter Kaye Scholer LLP |
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601 Massachusetts Ave., NW |
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Washington, D.C. 20001 |
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Attention: Jon Boswell and Amy Rifkind |
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Email: Jon.Boswell@arnoldporter.com and
Amy.Rifkind@arnoldporter.com |
A notice shall be deemed to have been given: in
the case of hand delivery, at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted
delivery on a Business Day; or in the case of expedited prepaid delivery, upon the first attempted delivery on a Business Day.
19. Waiver
of Jury Trial. TO THE FULLEST EXTENT NOW OR HEREAFTER PERMITTED BY APPLICABLE LAW, GUARANTOR AND LENDER HEREBY AGREE NOT TO ELECT
A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL
NOW OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, THE NOTE, THE SECURITY INSTRUMENT OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM
OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR
AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH RIGHT TO TRIAL BY JURY WOULD OTHERWISE
ACCRUE. LENDER AND GUARANTOR ARE HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER.
20. Miscellaneous.
This Guaranty shall be a continuing guaranty. This Guaranty shall bind the heirs, successors and assigns of Guarantor (except that Guarantor
may not assign his, her, or its liabilities under this Guaranty without the prior written consent of Lender, which consent Lender may
in its discretion withhold), and shall inure to the benefit of Lender, its successors, transferees and assigns. Each provision of this
Guaranty shall be interpreted in such manner as to be effective and valid under applicable law. Neither this Guaranty nor any of the
terms hereof, including the provisions of this Section, may be terminated, amended, supplemented, waived or modified orally, but only
by an instrument in writing executed by the party against which enforcement of the termination, amendment, supplement, waiver or modification
is sought, and the parties hereby: (a) expressly agree that it shall not be reasonable for any of them to rely on any alleged, non-written
amendment to this Guaranty; (b) irrevocably waive any and all right to enforce any alleged, non-written amendment to this Guaranty;
and (c) expressly agree that it shall be beyond the scope of authority (apparent or otherwise) for any of their respective agents
to agree to any non-written modification of this Guaranty. This Guaranty may be executed in several counterparts, each of which counterpart
shall be deemed an original instrument and all of which together shall constitute a single Guaranty. The failure of any party hereto
to execute this Guaranty, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder. As used
in this Guaranty, the term “Borrower” shall mean individually and collectively, jointly and severally, each Borrower (if
more than one) and shall include the successors (including any subsequent owner or owners of the Property or any part thereof or any
interest therein and Borrower in its capacity as debtor-in-possession after the commencement of any bankruptcy proceeding), assigns,
heirs, personal representatives, executors and administrators of Borrower. Any capitalized terms used in this Guaranty and not otherwise
defined herein shall have the meaning set forth in the Loan Agreement. Section 1.1 of the Loan Agreement is specifically incorporated
herein as if fully restated herein.
21. Applicable
Law; Jurisdiction and Venue.
(a) LENDER
HAS OFFICES IN THE STATE OF NEW YORK AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK
(“GOVERNING STATE”), WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING
TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS GUARANTY, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH
STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES
THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIEN AND SECURITY INTEREST CREATED PURSUANT TO THE LOAN DOCUMENTS
SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT,
TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND
ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW,
GUARANTOR AND LENDER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS
GUARANTY, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS GUARANTY, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. BY ITS ACCEPTANCE
OF THIS GUARANTY, LENDER SHALL BE DEEMED TO HAVE AGREED TO THIS SECTION 21(a).
(b) ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR GUARANTOR ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE OTHER LOAN DOCUMENTS (“ACTION”)
MAY AT LENDER’S OPTION BE INSTITUTED IN (AND IF ANY ACTION IS ORIGINALLY BROUGHT IN ANOTHER VENUE, THE ACTION SHALL AT THE
ELECTION OF LENDER BE TRANSFERRED TO) ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402
OF THE NEW YORK GENERAL OBLIGATIONS LAW AND GUARANTOR WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE OR
FORUM NON CONVENIENS OF ANY SUCH ACTION, AND GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY ACTION.
IN THE EVENT THAT GUARANTOR’S PRINCIPAL OFFICE IS NOT LOCATED IN THE STATE OF NEW YORK AT ANY TIME IN THE FUTURE, GUARANTOR (I) SHALL
PROMPTLY DESIGNATE AND APPOINT AN AUTHORIZED AGENT, REASONABLY ACCEPTABLE TO LENDER, TO ACCEPT AND ACKNOWLEDGE ON GUARANTOR’S BEHALF
SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH ACTION IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND IN
SUCH CASE, GUARANTOR AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED
TO GUARANTOR IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON GUARANTOR IN ANY SUCH ACTION
IN THE STATE OF NEW YORK, (II) SHALL GIVE PROMPT NOTICE TO LENDER OF (A) THE NAME AND ADDRESS OF SUCH AGENT, (B) ANY CHANGED
ADDRESS THEREAFTER OF ITS AUTHORIZED AGENT HEREUNDER, (III) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED
AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE
OF PROCESS), AND (IV) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW
YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.
22. OFAC.
Guarantor hereby represents, warrants and covenants that Guarantor is not (nor will be) a person with whom Lender is restricted from
doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury
of the United States of America (including, those Persons named on OFAC’s Specially Designated and Blocked Persons list) or under
any statute, executive order (including, the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and shall not engage in any dealings
or transactions or otherwise be associated with such persons. In addition, Guarantor hereby covenants to provide Lender with any additional
information that is reasonably necessary from time to time in order to evidence compliance with all applicable laws concerning money
laundering and similar activities.
23. Covenants.
23.1 Until
all of the Liabilities and the Debt, including all interest thereon, late charges and other charges and fees included within the Liabilities
and the Debt, have been paid in full, Guarantor (a) shall maintain (1) an aggregate Net Worth in excess of the Net Worth Threshold
and (2) aggregate Liquid Assets having a market value of at least the Liquid Assets Threshold and (b) shall not sell, pledge,
mortgage or otherwise transfer any assets, or any interest therein, which would cause Guarantor’s Net Worth to fall below the Net
Worth Threshold or cause Guarantor’s Liquid Assets to fall below the Liquid Assets Threshold. Anything contained herein to the contrary
notwithstanding, if Guarantor’s Net Worth falls below the Net Worth Threshold or its Liquid Assets fall below the Liquid Assets
Threshold, Guarantor shall have thirty (30) days to provide evidence reasonably satisfactory to lender that such deficiency has been cured
prior to such occurrence resulting in an Event of Default.
23.2 Guarantor
shall ensure that the financial information with respect to Guarantor required to be provided to Lender pursuant to Section 5.1.11
of the Loan Agreement is so provided.
23.3 During
the term of the Loan or of any obligation or right hereunder, Guarantor shall not be a Plan and none of the assets of Guarantor shall
constitute Plan Assets.
(a) Guarantor
further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan,
as requested by Lender in its sole discretion and represents and covenants that (A) Guarantor is not and does not maintain an “employee
benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan”
within the meaning of Section 3(32) of ERISA; (B) Guarantor is not subject to State statutes regulating investments and fiduciary
obligations with respect to governmental plans; and (C) one or more of the following circumstances is true:
(i) Equity
interests in Guarantor are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2);
(ii) Less
than twenty-five percent (25%) of each outstanding class of equity interests in Guarantor are held by “benefit plan investors”
within the meaning of 29 C.F.R. §2510.3-101(f)(2); or
(iii) Guarantor
qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. §2510.3-101(c) or
(e).
24. Additional
Provisions.
24.1 Notwithstanding
anything to the contrary contained in this Guaranty, Guarantor shall not be liable for any punitive, exemplary, special or consequential
damages or diminution in value under any provision of this Guaranty that would otherwise impose liability on Guarantor for such damages.
24.2 Notwithstanding
anything to the contrary contained in this Guaranty, (i) no shareholder, member or partner in Guarantor or any Person that, directly
or indirectly through one or more other partnerships, limited liability companies, corporations or other entities is a shareholder, member
or partner in Guarantor or owns an interest in Guarantor (each a “Constituent Member”) shall have any personal liability,
directly or indirectly, under or in connection with this Guaranty, and Lender hereby waives any and all such personal liability, and (ii) no
recourse shall be had for the payment of any amounts owed hereunder, or for any claim based on this Guaranty against any Constituent Member,
any of their respective successors and assigns, or any of the assets of any Constituent Member, it being expressly understood that the
sole remedy of Lender with respect to such amounts and claims shall be against Guarantor and the assets of Guarantor.
24.3 Termination
of Guaranty; Replacement Guarantor.
(a) Notwithstanding
anything to the contrary contained herein, upon the occurrence of the Global Net Lease Merger and the delivery of the Global Net Lease
Merger Completion Notice in accordance with Section 5.2.10(h) of the Loan Agreement, this Guaranty (including all obligations
and liabilities of Guarantor hereunder) shall automatically terminate and be of no further force or effect. In connection with the foregoing,
promptly upon request from Guarantor, Lender shall provide to Guarantor a signed written release and termination of Guarantor’s
obligations hereunder in a commercially reasonable form, provided that the delivery (or non-delivery) of such written release and termination
shall have no effect on the automatic release and termination provided for hereunder.
(b) Without
limiting the terms of Section 24.3(a), Guarantor shall have the right to replace this Guaranty (or cause Borrower to do so)
with a replacement guaranty from a Qualified Replacement Guarantor as and when provided in, and subject to, the applicable terms and conditions
of the Loan Agreement, and upon such replacement, Guarantor shall be automatically released from its liabilities and obligations hereunder,
to the extent relating to matters arising after the date of such replacement, and this Guaranty shall automatically be deemed to be terminated
with respect to such liabilities and obligations. In connection with the foregoing, promptly upon request from Guarantor, Lender shall
provide to Guarantor a signed written release of Guaranty in a commercially reasonable form, provided that the delivery (or non-delivery)
of such written release shall have no effect on the automatic release and termination provided for hereunder.
24.4 Waiver
of Statutory Appraisal Rights. The following provision shall apply only if a court of competent jurisdiction shall disregard the
choice of law provision contained herein and determine that South Carolina law shall govern the terms hereof: THE LAWS OF THE STATE OF
SOUTH CAROLINA PROVIDE THAT IN ANY REAL ESTATE FORECLOSURE PROCEEDING, A DEFENDANT AGAINST WHOM A PERSONAL JUDGMENT IS TAKEN OR ASKED
MAY, WITHIN THIRTY (30) DAYS AFTER THE SALE OF ANY PROPERTY SUBJECT TO A MORTGAGE LIEN IN FAVOR OF ITS LENDER (the “MORTGAGED
PROPERTY”), APPLY TO THE COURT FOR AN ORDER OF APPRAISAL. THE STATUTORY APPRAISAL VALUE AS APPROVED BY THE COURT WOULD BE SUBSTITUTED
FOR THE HIGH BID OBTAINED IN SUCH SALE AND MAY DECREASE THE AMOUNT OF ANY DEFICIENCY OWING IN CONNECTION WITH THE TRANSACTION. THE
UNDERSIGNED HEREBY WAIVES AND RELINQUISHES ANY STATUTORY APPRAISAL RIGHTS WHICH IT MIGHT HAVE, WHICH MEANS THAT THE HIGH BID AT THE JUDICIAL
FORECLOSURE SALE OF ANY MORTGAGED PROPERTY WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF SUCH MORTGAGED PROPERTY.
24.5 The
following provision shall apply only if a court of competent jurisdiction shall disregard the choice of law provision contained herein
and determine that Kentucky law shall govern the terms hereof:
(a) Without
increasing any obligations of Guarantor hereunder, the maximum aggregate principal amount of this Guaranty shall not exceed $780,000,000.00
(“Maximum Aggregate Liability”), plus interest on the Recourse Liabilities accruing from the date of and pursuant to
the instrument(s) creating or evidencing the Recourse Liabilities, or if there are no such instruments, from the date the Recourse
Liabilities were incurred until the Recourse Liabilities have been repaid or otherwise satisfied in full to the Lender (the “Interest”),
plus all reasonable attorneys' fees and costs and expenses incurred by the Lender in collecting or attempting to collect the Recourse
Liabilities or incurred in attempting to enforce this Guaranty (the “Costs”). The Maximum Aggregate Liability does
not include Interest and Costs and shall be in addition to the Maximum Aggregate Liability of Guarantor to the Lender under any other
guaranty of Guarantor heretofore or hereafter given.
(b) With
respect to the Recourse Liabilities, unless this Guaranty is terminated (or Guarantor’s liabilities and obligations hereunder are
released) at an earlier date pursuant to Section 24.3 or otherwise, this Guaranty shall terminate on [September 6, 2034
- one year after maturity date] (the “Limitation Date”). The words terminate and termination in the preceding sentence
shall be given the same use and effect as set forth in KRS 371.065, as amended and effective in July, 1990, and shall hereinafter be referred
to as the “Limitation.” The Limitation of this Guaranty shall not affect in any manner the Recourse Liabilities created
or incurred on or prior to and existing on the Limitation Date and shall not affect any renewals, extensions, modifications or revivals
of, Interest accruing on, or Costs incurred with respect to, the Recourse Liabilities on or after the Limitation Date. The sole effect
of the Limitation of this Guaranty shall be to exclude from the Recourse Liabilities all liabilities and Recourse Liabilities arising
out of additional loans, advances, discounts, or credit extensions made by the Lender to the Borrower after the Limitation Date which
are not renewals, extensions, modifications or revivals of the Recourse Liabilities.
[NO FURTHER TEXT ON THIS PAGE]
The laws of South Carolina provide that in any
real estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked may within thirty days after the sale
of the mortgaged property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be
substituted for the high bid and may decrease the amount of any deficiency owing in connection with the transaction. THE UNDERSIGNED
HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED
TO THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE MORTGAGED PROPERTY.
IN WITNESS WHEREOF, Guarantor
has executed or caused this Guaranty to be executed as of the day and year first above written.
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GUARANTOR: |
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THE NECESSITY RETAIL REIT
OPERATING PARTNERSHIP, L.P., a Delaware limited partnership |
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By: |
THE NECESSITY
RETAIL REIT, INC., a Maryland corporation, its General Partner |
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By: |
/s/
Jason F. Doyle |
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Name: Jason F. Doyle |
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Title: Chief Financial
Officer |
Signature
Page To Guaranty Agreement
Exhibit 10.3
Loan No.: 00022669
ENVIRONMENTAL INDEMNITY AGREEMENT
THIS
ENVIRONMENTAL INDEMNITY AGREEMENT (this “Agreement”) is made as of August 30, 2023, by THE ENTITIES
SET FORTH ON SCHEDULE I attached hereto, each a Delaware limited liability company, each having its principal place of business at 38
Washington Square, Newport, Rhode Island 02840 (hereinafter referred to individually as a “Borrower” and collectively
as “Borrower” or “Borrowers” as the context may require, provided, however, that the context shall
always be one which affords Indemnitee the broadest possible rights and remedies under the Loan Documents and which permits Indemnitee,
in its discretion, to enforce the obligations and liabilities hereunder against one or more of the entities comprising Borrower), and
THE NECESSITY RETAIL REIT OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an address at 650 Fifth Avenue, 30th
Floor, New York, New York 10019 (“Guarantor”; Borrower and Guarantor are hereinafter referred to, individually and
collectively, as the context may require, as “Indemnitor”), in favor of BARCLAYS CAPITAL REAL ESTATE INC., a Delaware
corporation, having an address at 745 Seventh Avenue, New York, New York 10019 (“Barclays”), SOCIÉTÉ
GÉNÉRALE FINANCIAL CORPORATION, a Delaware corporation, having an address at 245 Park Avenue, New York, New York 10167 (“SocGen”),
BANK OF MONTREAL, a Canadian Chartered bank acting through its Chicago Branch, having an address at c/o BMO Capital Markets Corp., 3 Times
Square, New York, New York 10036 (“BMO”) and KEYBANK NATIONAL ASSOCIATION, a national banking association, having an
address at 11501 Outlook Street, Suite 300, Overland Park, Kansas 66211 (“KeyBank”; and together with Barclays,
SocGen and BMO, and their respective successors and/or assigns, individually and/or collectively, as the context may require, “Indemnitee”)
and the other Indemnified Parties (as defined in the Loan Agreement).
RECITALS:
The following recitals are a
material part of this Agreement.
A. Borrower
is the owner of the Property.
B. Indemnitee
is prepared to make a loan (the “Loan”) to Borrower in the original principal amount of $260,000,000.00 pursuant to
a Loan Agreement of even date herewith between Indemnitee and Borrower (the “Loan Agreement”), which Loan shall be
evidenced by one or more promissory notes, each dated the date hereof, and made by Borrower in favor of Indemnitee (individually and collectively,
as the context may require, the “Note”) and secured by, among other things one or more mortgages/deeds of trust/deeds
to secure debt, dated as of the date hereof, given by Borrower to or for the benefit of Indemnitee and encumbering the Property (individually
and collectively, as the context may require, the “Security Instrument”). Capitalized terms not otherwise defined herein
shall have the meaning set forth in the Loan Agreement.
C. Indemnitee
is unwilling to make the Loan unless Indemnitor agrees to provide the indemnification, representations, warranties, covenants and other
matters described in this Agreement for the benefit of the Indemnified Parties.
D. Indemnitor
is entering into this Agreement to induce Indemnitee to make the Loan.
AGREEMENT:
NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Indemnitor
hereby agrees for the benefit of the Indemnified Parties as follows:
1. Indemnification.
Indemnitor covenants and agrees, at its sole cost and expense, to protect, defend, indemnify, release and hold the Indemnified Parties
harmless from and against any and all Losses (defined below) imposed upon or incurred by or asserted against any Indemnified Parties and
directly or indirectly arising out of or in any way relating to the Property by any one or more of the following: (a) any presence
of any Hazardous Substances in, on, above, or under the Property in violation of Environmental Law; (b) any past, present or threatened
Release of Hazardous Substances in, on, above, under or from the Property in violation of Environmental Law; (c) any activity by
Indemnitor, any Affiliate of Indemnitor, and any tenant or other user of the Property in connection with any use, treatment, storage,
holding, existence, disposition or other Release, generation, production, manufacturing, processing, refining, control, management, abatement,
removal, handling, transfer or transportation to or from the Property of any Hazardous Substances at any time located in, under, on or
above the Property; (d) any activity by Indemnitor, any Affiliate of Indemnitor, and any tenant or other user of the Property in
connection with any Remediation of any Hazardous Substances at any time located in, under, on or above the Property, whether or not such
Remediation is voluntary or pursuant to court or administrative order, including any removal, remedial or corrective action; (e) any
past, present or threatened non-compliance or violations of any applicable Environmental Laws (or permits issued pursuant to any Environmental
Law) in connection with the Property or operations thereon, including any failure by Indemnitor, Affiliate of Indemnitor, and any tenant
or other user of the Property to comply with any order of any Governmental Authority in connection with any applicable Environmental Laws
with respect to the Property; (f) the imposition, recording or filing or the threatened imposition, recording or filing of any Environmental
Lien encumbering the Property; (g) any administrative processes or proceedings or judicial proceedings in any way connected with
the environmental condition of the Property; (h) any past, present or threatened injury to, destruction of or loss of natural resources
in any way connected with the Property, including costs to investigate and assess such injury, destruction or loss; (i) intentionally
omitted; (j) intentionally omitted; (k) any personal injury, wrongful death, or property or other damage arising under any statutory
or common law or tort law theory, including but not limited to damages assessed for private or public nuisance or for the conducting of
an abnormally dangerous activity on the Property, in each case solely relating to Hazardous Substances or the environmental condition
of the Property; and (l) any misrepresentation or inaccuracy in any material respect in any material representation or warranty relating
to the environmental condition of the Property or material breach or failure to perform any covenants or other obligations relating to
the environmental condition of the Property pursuant to this Agreement or the Loan Agreement.
2. Duty
to Defend and Attorneys and Other Fees and Expenses. Upon written request by any Indemnified Party, Indemnitor shall defend
same (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals reasonably approved
by the Indemnified Parties. Notwithstanding the foregoing, any Indemnified Parties may, in their sole and absolute discretion, engage
their own attorneys and other professionals to defend or assist them, and, at the option of such Indemnified Parties, their attorneys
shall control the resolution of any claim or proceeding, providing that no compromise or settlement shall be entered without Indemnitor’s
written consent, which consent shall not be unreasonably withheld. Upon demand, Indemnitor shall pay or, in the sole and absolute
discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable, out-of-pocket fees and disbursements
of attorneys, engineers, environmental consultants, laboratories and other professionals reasonably engaged in connection therewith; provided,
however, that Indemnitor shall not be liable for, and shall not have to pay or reimburse the Indemnified Parties for, the fees and expenses
of more than one (1) general counsel, and one (1) separate local counsel for the state in which the Property is located. In
no event shall any Indemnitee engage counsel that has or is reasonably likely to have a conflict of interest in relation to Indemnitor
or any affiliates of Indemnitor.
3. Definitions.
Capitalized terms used herein and not specifically defined herein shall have the respective meanings ascribed to such terms in the Loan
Agreement. As used in this Agreement, the following terms shall have the following meanings:
The term “Legal Action”
means any claim, suit or proceeding, whether administrative or judicial in nature.
The term “Losses”
means any actual out-of-pocket losses, damages (provided that “Losses” shall not include any special, indirect, consequential,
exemplary, and/or punitive damages), costs, fees, expenses, claims, suits, judgments, awards, liabilities (including strict liabilities),
obligations, debts, fines, penalties, charges, costs of Remediation (whether or not performed voluntarily), amounts paid in settlement,
litigation costs, reasonable attorneys’ fees, engineers’ fees and environmental consultants’ fees, and investigation
costs (including costs for sampling, testing and analysis of soil, water, air, building materials, and other materials and substances
whether solid, liquid or gas), whether or not incurred in connection with any judicial or administrative proceedings, actions, claims,
suits, judgments or awards but in no event shall “Losses” include any sums incurred as a result of (and arising to the extent
of) the gross negligence, fraud or willful misconduct of Indemnitee or the employees, principals, agents, contractors, consultants and
representatives of Indemnitee or any other Indemnified Party.
4. Unimpaired
Liability. The liability of Indemnitor under this Agreement shall in no way be limited or impaired by any amendment or modification
of the provisions of the Note, the Loan Agreement, the Security Instrument or any other Loan Document to or with Indemnitee by Indemnitor
or any Person who succeeds Indemnitor or any Person as owner of the Property. In addition, the liability of Indemnitor under this Agreement
shall in no way be limited or impaired by (i) any extensions of time for performance required by the Note, the Loan Agreement, the
Security Instrument or any of the other Loan Documents, (ii) any sale or transfer of all or part of the Property, except as expressly
permitted in the Loan Documents, (iii) except as provided herein, any exculpatory provision in the Note, the Loan Agreement, the
Security Instrument, or any of the other Loan Documents limiting Indemnitee’s recourse to the Property or to any other security
for the Note, or limiting Indemnitee’s rights to a deficiency judgment against Indemnitor, (iv) the accuracy or inaccuracy
of the representations and warranties made by Indemnitor under the Note, the Loan Agreement, the Security Instrument or any of the other
Loan Documents or herein, (v) subject to Section 25 hereof, the release of Indemnitor or any other Person from performance
or observance of any of the agreements, covenants, terms or conditions contained in any of the other Loan Documents by operation of law, Indemnitee’s
voluntary act, or otherwise, (vi) the release or substitution in whole or in part of any security for the Loan, or (vii) Indemnitee’s
failure to record the Security Instrument or file any UCC financing statements (or Indemnitee’s improper recording or filing of
any thereof) or to otherwise perfect, protect, secure or insure any security interest or lien given as security for the Loan; and, in
any such case, whether with or without notice to Indemnitor and with or without consideration.
5. Enforcement.
The Indemnified Parties may enforce the obligations of Indemnitor without first resorting to or exhausting any security or collateral
or without first having recourse to the Note, the Loan Agreement, the Security Instrument, or any other Loan Documents or any of the Property,
through foreclosure proceedings or otherwise; provided, however, that nothing herein shall inhibit or prevent Indemnitee from suing on
the Note, foreclosing, or exercising any power of sale under, the Security Instrument, or exercising any other rights and remedies thereunder.
This Agreement is not collateral or security for the Debt, unless Indemnitee expressly elects in writing to make this Agreement additional
collateral or security for the Debt, which Indemnitee is entitled to do in its discretion. It is not necessary for an Event of Default
to have occurred for the Indemnified Parties to exercise their rights pursuant to this Agreement. Notwithstanding any provision of the
Loan Agreement, the obligations pursuant to this Agreement are exceptions to any non-recourse or exculpation provision of the Loan Agreement;
Indemnitor is fully and personally liable for such obligations, and such liability is not limited to the original or amortized principal
balance of the Loan or the value of the Property.
6. Survival.
Without limiting the terms of Section 25 hereof, the indemnity obligations and liabilities of Indemnitor under this Agreement
shall fully survive indefinitely notwithstanding any termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise
of any power of sale, or delivery of a deed in lieu of foreclosure of the Security Instrument. Notwithstanding the foregoing, the liabilities
and obligations of Indemnitor hereunder shall not apply (i) to the extent that any such liability or obligation has been adjudicated
as final (and is not subject to appeal) to have arisen from, or that Indemnitor can prove arose solely from, Hazardous Substances that:
(a) were not present on the Property prior to the date (the “Foreclosure Date”) that Indemnitee or its nominee
acquired title to the Property, whether by foreclosure, exercise of power of sale or otherwise (including a deed in lieu or as applicable,
assignment in lieu, that has been accepted by Indemnitee or its nominee) and (b) were not the result of any act or negligence of
Indemnitor or any of Indemnitor’s affiliates, agents or contractors; or (ii) for any events or matters to the extent that same
arise or accrue after the date of a Mezzanine Control Event (as defined below). For the purposes hereof, a “Mezzanine Control
Event” shall mean the occurrence of any of the following events: (i) the equity interests pledged by a Mezzanine Borrower
to Mezzanine Lender are transferred in a public or private foreclosure or disposition (including without limitation under Section 9-610
of the Uniform Commercial Code); (ii) the equity interests pledged to Mezzanine Lender are accepted by Mezzanine Lender in full satisfaction
of the Mezzanine Loan (including, without limitation, pursuant to Section 9-621 of the Uniform Commercial Code); or (iii) Guarantor
ceases to be in control of Borrower as a result of the exercise by Mezzanine Lender of any remedies in the Mezzanine Loan Documents; provided
in each instance of clause (i) or (ii) above, the applicable Guarantor does not any longer own any beneficial interest (directly
or indirectly) in Borrower. Notwithstanding the foregoing, the continuing liability of Indemnitors hereunder shall terminate (other than
with respect to (i) any outstanding unfulfilled obligations or claims that have been made pursuant thereto and (ii) any Losses
with respect to the Individual Property known as Terrell Mill Village – Marietta, GA) on the date which is one (1) year after,
as applicable, the Foreclosure Date or the date on which the obligations of Borrower under the Loan Documents have been indefeasibly paid
in full (the “Satisfaction Date”), provided that such termination shall be further conditioned upon Indemnitee’s
(or its servicer) receipt and reasonable approval of an updated Phase I environmental assessment report (and a follow up Phase II environmental
assessment report if required by the Phase I), which report shall be dated, or last updated, to a date which is not earlier than the Satisfaction
Date, showing no recognized environmental conditions or other materially adverse environmental conditions that were not disclosed in the
Environmental Report. For the avoidance of doubt, the termination described in the preceding sentence shall not apply with respect to
the Individual Property known as Terrell Mill Village – Marietta, GA and the indemnity obligations and liabilities of Indemnitor
under this Agreement with respect to such Individual Property shall fully survive indefinitely.
For the purposes of this Agreement, “indefeasibly
paid” means with respect to the making of any payment on or in respect of the Debt, that such payment of such Debt has been paid
in full in cash (or that such payment of such Debt has been otherwise satisfied in a manner acceptable to the holders of the Debt in their
discretion), and such Debt is no longer subject to any recission, restoration, or return.
7. Interest.
Any amounts payable to any Indemnified Parties under this Agreement shall become immediately due and payable on demand and, if not paid
within thirty (30) days of such demand therefor, shall bear interest at the lesser of (a) the Default Rate or (b) the maximum
interest rate which Indemnitor may by law pay or the Indemnified Parties may charge and collect, from the date payment was due, provided
that the foregoing shall be subject to the provisions of the Loan Agreement.
8. Waivers.
(a) Indemnitor hereby waives (i) any right or claim of right to cause a marshaling of Indemnitor’s assets or to cause
Indemnitee or other Indemnified Parties to proceed against any of the security for the Loan before proceeding under this Agreement against
Indemnitor; (ii) and relinquishes all rights and remedies accorded by applicable law to indemnitors or guarantors, except any rights
of subrogation which Indemnitor may have, provided that the indemnity provided for hereunder shall neither be contingent upon the existence
of any such rights of subrogation nor subject to any claims or defenses whatsoever which may be asserted in connection with the enforcement
or attempted enforcement of such subrogation rights including any claim that such subrogation rights were abrogated by any acts of Indemnitee
or other Indemnified Parties; (iii) the right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any
action or proceeding brought against or by Indemnitee or other Indemnified Parties; (iv) notice of acceptance hereof and of any action
taken or omitted in reliance hereon; (v) presentment for payment, demand of payment, protest or notice of nonpayment or failure to
perform or observe, or other proof, or notice or demand; and (vi) all homestead exemption rights against the obligations hereunder
and the benefits of any statutes of limitations or repose. Notwithstanding anything to the contrary contained herein, Indemnitor
hereby agrees to postpone the exercise of any rights of subrogation with respect to any collateral securing the Loan until the Loan shall
have been paid in full.
(b) Indemnitor
and Indemnitee hereby waive, to the fullest extent permitted by law, the right to trial by jury in any action, proceeding or counterclaim,
whether in contract, tort or otherwise, relating to this Agreement or any acts or omissions of any Indemnified Parties in connection therewith.
9. Subrogation.
Indemnitor shall take any and all reasonable actions, including institution of Legal Action against third parties, necessary or appropriate
to obtain reimbursement, payment or compensation from such Person responsible for the presence of any Hazardous Substances at, in, on,
under or migrating onto the Property or otherwise obligated by law to bear the cost. The Indemnified Parties shall be and hereby are subrogated
to all of Indemnitor’s rights now or hereafter in such claims.
10. Indemnitor’s
Representations and Warranties. Indemnitor represents and warrants (as of the date hereof) that (as to itself only):
(a) if
Indemnitor is a corporation, a limited liability company, a trust or partnership, it has the full corporate/ limited liability company/
partnership/ trust power and authority to execute and deliver this Agreement and to perform its obligations hereunder; the execution,
delivery and performance of this Agreement by Indemnitor has been duly and validly authorized; and all requisite corporate/ limited liability
company/ partnership/ trust action has been taken by Indemnitor to make this Agreement valid and binding upon Indemnitor;
(b) if
Indemnitor is a corporation, a limited liability company, a trust or partnership, its execution of, and compliance with, this Agreement
is in the ordinary course of business of Indemnitor and will not result in the breach of any term or provision of the charter, by-laws,
partnership, operating or trust agreement, or other governing instrument of Indemnitor or result in the breach of any term or provision
of, or conflict with or constitute a default under, or result in the acceleration of any obligation under, any agreement, indenture or
loan or credit agreement or other instrument to which Indemnitor or the Property is subject, or result in the violation of any law, rule,
regulation, order, judgment or decree to which Indemnitor or the Property is subject;
(c) to
Indemnitor’s actual knowledge, there is no action, suit, proceeding or investigation pending or threatened against it which, either
in any one instance or in the aggregate, would reasonably be expected to result in any material adverse change in the business, operations,
financial condition, properties or assets of Indemnitor, or in any material impairment of the right or ability of Indemnitor to carry
on its business substantially as now conducted, or in any material liability on the part of Indemnitor, or which would draw into question
the validity of this Agreement or of any action taken or to be taken in connection with the obligations of Indemnitor contemplated herein,
or which would be likely to impair materially the ability of Indemnitor to perform under the terms of this Agreement;
(d) [Intentionally
Omitted]
(e) to
the Indemnitor’s knowledge, no approval, authorization, order, license or consent of, or registration or filing with, any governmental
authority or other person, and no approval, authorization or consent of any other party is required in connection with this Agreement;
and
(f) subject
to general principles of equity and creditors’ rights, this Agreement constitutes a valid, legal and binding obligation of Indemnitor,
enforceable against it in accordance with the terms hereof.
11. No
Waiver. No delay by any Indemnified Party in exercising any right, power or privilege under this Agreement shall operate as a
waiver of any such privilege, power or right.
12. Notice
of Legal Actions. Each party hereto shall, within ten (10) Business Days of receipt thereof, give written notice to the other
party hereto of (i) any notice, advice or other written communication from any Governmental Authority or any source whatsoever with
respect to Hazardous Substances on, from or related to the Property which could reasonably be expected to materially and adversely affect
the Property, and (ii) any Legal Action brought against such party or so related to the Property, with respect to which Indemnitor
may have liability under this Agreement. Such notice shall comply with the provisions of Section 14 hereof.
13. Intentionally
Omitted.
14. Notices.
All notices or other written communications hereunder shall be made in accordance with (a) Section 10.6 of the Loan Agreement
in the case of Indemnitee and Borrower, and (b) the respective Guaranty Agreement executed by any Indemnitor other than Borrower
in the case of any such Indemnitor.
15. Counterparts.
This Agreement may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which
together shall constitute a single Agreement.
16. No
Oral Change. This Agreement, 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 Indemnitor or any Indemnified Party, 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.
17. Headings,
Etc. The headings and captions of various paragraphs of this Agreement are for convenience of reference only and are not to be
construed as defining or limiting, in any way, the scope or intent of the provisions hereof.
18. Number
and Gender/Successors and Assigns. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the Person referred to may require. Without limiting the effect of specific references in
any provision of this Agreement, the term “Indemnitor” shall be deemed to refer to each and every Person comprising
an Indemnitor from time to time, as the sense of a particular provision may require, and to include the heirs, executors, administrators,
legal representatives, successors and assigns of Indemnitor, all of whom shall be bound by the provisions of this Agreement, provided
that no obligation of Indemnitor may be assigned except with the written consent of Indemnitee. Each reference herein to Indemnitee shall
be deemed to include its successors and assigns. This Agreement shall inure to the benefit of the Indemnified Parties and their respective
successors and assigns.
19. Release
of Liability. Any one or more parties liable upon or in respect of this Agreement may be released without affecting the liability
of any party not so released.
20. Rights
Cumulative. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies which Indemnitee
has under the Note, the Security Instrument, the Loan Agreement or the other Loan Documents or would otherwise have at law or in equity.
21. Inapplicable
Provisions. If any term, condition or covenant of this Agreement shall be held to be invalid, illegal or unenforceable in any
respect, this Agreement shall be construed without such provision.
22. Governing
Law. The governing law and related provisions set forth in Section 10.3 of the Loan Agreement (including, any authorized
agent provisions thereof) are hereby incorporated by reference as if fully set forth herein (with Indemnitor substituted in all places
where Borrower appears thereunder) and shall be deemed fully applicable to Indemnitor hereunder. Indemnitor hereby certifies that it has
received and reviewed the Loan Agreement (including, Section 10.3 thereof). Indemnitor and Indemnitee submit to the jurisdiction
of any State or federal court sitting in the City, County and State of New York.
23. Waiver
of Jury Trial. TO THE FULLEST EXTENT NOW OR HEREAFTER PERMITTED BY APPLICABLE LAW, INDEMNITOR AND INDEMNITEE HEREBY AGREE
NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY
SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION
THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY INDEMNITOR AND INDEMNITEE, AND IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH RIGHT TO TRIAL BY JURY WOULD OTHERWISE ACCRUE. INDEMNITOR AND INDEMNITEE ARE HEREBY
AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER.
24. Constituent
Members. Notwithstanding anything to the contrary contained in this Agreement, (i) no shareholder, member or partner in Indemnitor
(or any person or entity constituting same) or any Person that, directly or indirectly through one or more other partnerships, limited
liability companies, corporations or other entities is a shareholder, member or partner in Indemnitor (or any person or entity constituting
same) or owns an interest in Indemnitor (or any person or entity constituting same) (each a “Constituent Member”) shall have
any personal liability, directly or indirectly, under or in connection with this Agreement, and Indemnitee hereby waives any and all such
personal liability, and (ii) no recourse shall be had for the payment of any amounts owed hereunder, or for any claim based on this
Agreement against any Constituent Member, any of their respective successors and assigns, or any of the assets of any Constituent Member,
it being expressly understood that the sole remedy of Indemnitee or any other Indemnified Party with respect to such amounts and claims
shall be against Indemnitor and the assets of Indemnitor.
25. Termination
of Agreement; Replacement Guarantor.
(a) Notwithstanding
anything to the contrary contained herein, upon the occurrence of the Global Net Lease Merger and the delivery of the Global Net Lease
Merger Completion Notice in accordance with Section 5.2.10(h) of the Loan Agreement, this Agreement (including all obligations
and liabilities of Indemnitor hereunder) shall automatically terminate and be of no further force or effect. In connection with the foregoing,
promptly upon request from any Indemnitor, Indemnitee shall provide to Indemnitor a signed written release and termination of Indemnitor’s
obligations hereunder in a commercially reasonable form, provided that the delivery (or non-delivery) of such written release and termination
shall have no effect on the automatic release and termination provided for hereunder.
(b) Without
limiting the terms of Section 25(a), Guarantor shall have the right to be released hereunder so long as Guarantor’s
obligations hereunder are assumed by a Qualified Replacement Guarantor as and when provided in, and subject to, the applicable terms and
conditions of the Loan Agreement, and upon such assumption, Guarantor shall be automatically released from its liabilities and obligations
hereunder to the extent relating to matters first arising after, and to the extent expressly assumed by such Qualified Replacement Guarantor,
prior to, the date of such assumption. In connection with the foregoing, promptly upon request from Guarantor, Indemnitee shall provide
to Guarantor a signed written release of Guarantor’s obligations hereunder in a commercially reasonable form, provided that the
delivery (or non-delivery) of such written release shall have no effect on the automatic release provided for hereunder.
26. Miscellaneous.
(a) Wherever pursuant to this Agreement (i) Indemnitee exercises any right given to it to approve or disapprove, (ii) any
arrangement or term is to be satisfactory to Indemnitee, or (iii) any other decision or determination is to be made by Indemnitee,
the decision of Indemnitee to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and
all other decisions and determinations made by Indemnitee, shall be in the sole and absolute discretion of Indemnitee, except as may
be otherwise expressly and specifically provided herein. Notwithstanding anything to the contrary contained herein, to the extent Indemnitee’s
prior approval is required as set forth in this Agreement, such approval shall be deemed given if the first correspondence from Borrower
to Indemnitee requesting such approval contains a conspicuous legend at the top of the first page thereof stating that “THIS
IS A REQUEST FOR APPROVAL. IF YOU FAIL TO APPROVE OR DISAPPROVE SUCH REQUEST IN WRITING WITHIN SEVEN (7) BUSINESS DAYS, BORROWER
MAY DELIVER A DEEMED APPROVAL NOTICE”, and any customary information and documents in Borrower’s possession reasonably
requested by Indemnitee in writing prior to the expiration of such seven (7) Business Day period in order to adequately review the
same has been delivered to Indemnitee and, if Indemnitee fails to approve or disapprove in writing within the seven (7) Business
Day period, a second notice is delivered to Indemnitee from Borrower in an envelope marked “PRIORITY” requesting approval
containing a conspicuous legend at the top of the first page thereof stating that “THIS IS A REQUEST FOR APPROVAL. IF YOU
FAIL TO APPROVE OR DISAPPROVE SUCH REQUEST IN WRITING WITHIN THREE (3) BUSINESS DAYS, YOUR APPROVAL SHALL BE DEEMED GIVEN”
and Indemnitee fails to approve or disapprove within the three (3) Business Day period.
(b) Wherever
pursuant to this Agreement it is provided that Indemnitor pay any costs and expenses, such costs and expenses shall include reasonable
out-of-pocket legal fees and disbursements of Indemnitee.
(c) Notwithstanding
anything to the contrary contained in this Agreement, Indemnitor shall not be liable for any punitive, exemplary, special or consequential
damages or diminution in value under any provision of this Agreement that would otherwise impose liability on Indemnitor for such damages.
(d) If
Indemnitor consists of more than one person or party, the obligations and liabilities of each such person or party hereunder shall be
joint and several.
(e) The
following rules of construction shall be applicable for all purposes of this Agreement and all documents or instruments supplemental
hereto, unless the context otherwise clearly requires:
| (i) | The terms “include,” “including” and similar terms shall be construed as if followed
by the phrase “without being limited to”; |
| (ii) | The term “or” has, except where otherwise indicated, the inclusive meaning represented by
the phrase “and/or”; |
| (iii) | The words “hereof,” “herein,” “hereby,” “hereunder,” and
similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision or section of this Agreement; |
| (iv) | An Event of Default shall “continue” or be “continuing” until such Event of Default
has been waived in writing by Indemnitee; and |
| (v) | No inference in favor of or against any party shall be drawn from the fact that such party has drafted
any portion hereof or any other Loan Document. |
[NO FURTHER TEXT ON THIS PAGE]
IN WITNESS WHEREOF, this Agreement
has been executed by Indemnitor as of the day and year first above written.
INDEMNITOR:
|
ARC LCROWTX001, LLC |
|
ARC SWHOUTX001, LLC |
|
ARC CTCHRNC001, LLC |
|
ARC QSOKCOK001, LLC |
|
ARG NRTAMFL001, LLC |
|
ARG PSREYOH001, LLC |
|
ARG WCSALNC001, LLC |
|
ARG WSCLAIN001, LLC |
|
ARG EMEVGIL001, LLC |
|
ARG CALAFLA001, LLC |
|
ARG SCROCNC001, LLC |
|
ARG TMMARGA001, LLC |
|
ARG SVJEFMO001, LLC |
|
ARG FTFTWIN001, LLC |
|
ARG CCCARPA001, LLC |
|
ARG TCHATMS001, LLC |
|
ARG HTMANWI001, LLC |
|
ARG OTOWEKY001, LLC |
|
ARG LSSALMD001, LLC |
|
ARG PCGROOH001, LLC |
|
ARG HCHOULA001, LLC |
|
ARG LMLAWOK001, LLC |
|
ARG DMDERKS001, LLC |
|
ARG TVLOUTN001, LLC |
|
ARG MPELYOH001, LLC |
|
ARG NLGAIGA001, LLC |
|
ARG WASUMSC001, LLC |
|
ARC NWNCHSC001, LLC |
|
ARG VPALBNM001, LLC, |
|
each a Delaware limited liability company |
|
|
|
By: |
/s/ Michael R. Anderson |
|
Name: |
Michael R. Anderson |
|
Title: |
Authorized Signatory for each entity |
|
|
listed above |
[Signatures continue on the following page]
Environmental
Indemnity Agreement
|
INDEMNITOR: |
|
|
|
THE
NECESSITY RETAIL REIT |
|
OPERATING PARTNERSHIP, L.P., a Delaware |
|
limited partnership |
|
|
|
By: |
THE NECESSITY RETAIL REIT, INC., a |
|
|
Maryland corporation, its General Partner |
|
|
|
|
|
By: |
/s/ Jason F. Doyle |
|
|
Name: |
Jason F. Doyle |
|
|
Title: |
Chief Financial Officer |
Environmental
Indemnity Agreement
v3.23.2
Cover
|
Aug. 30, 2023 |
Document Information [Line Items] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Aug. 30, 2023
|
Entity File Number |
001-38597
|
Entity Registrant Name |
The Necessity Retail REIT, Inc.
|
Entity Central Index Key |
0001568162
|
Entity Tax Identification Number |
90-0929989
|
Entity Incorporation, State or Country Code |
MD
|
Entity Address, Address Line One |
650
Fifth Avenue
|
Entity Address, Address Line Two |
30th
Floor
|
Entity Address, City or Town |
New York
|
Entity Address, State or Province |
NY
|
Entity Address, Postal Zip Code |
10019
|
City Area Code |
212
|
Local Phone Number |
415-6500
|
Written Communications |
true
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Common Stock [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Class
A Common Stock, $0.01 par value per share
|
Trading Symbol |
RTL
|
Security Exchange Name |
NASDAQ
|
Series A Preferred Stock [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
7.50% Series A Cumulative Redeemable
Perpetual Preferred Stock, $0.01 par value per share
|
Trading Symbol |
RTLPP
|
Security Exchange Name |
NASDAQ
|
Series C Preferred Stock [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
7.375% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share
|
Trading Symbol |
RTLPO
|
Security Exchange Name |
NASDAQ
|
Preferred Stock Purchase Rights [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Preferred Stock Purchase Rights
|
No Trading Symbol Flag |
true
|
Security Exchange Name |
NASDAQ
|
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