6.	Loan Payable

The Company secured a non-revolving credit line for up to

$3,000,000

(the “Original Line”) with a bank, which closed on

March 21, 2018.

There was an interest only phase for the

first

eight

months of the loan (“Interest-Only Phase”). On

January 24, 2019,

the Company amended and extended the Original Line which included extending the maturity date of the Interest-Only Phase to the earlier of

January 20, 2020

or upon drawing down a total of

$3,000,000

after which it automatically converts to a permanent loan maturing on the earlier of

January 20, 2027

months after conversion to a permanent loan (the “Permanent Phase”). The Company amended and extended the Original Line which included extending the maturity date of the Interest-Only Phase to the earlier of

April 30, 2020

or upon drawing down a total of

$3,000,000

after which it automatically converts to a permanent loan maturing on the earlier of

April 30, 2027

months after conversion to a permanent loan (the “Permanent Phase”). The interest rate during the Interest-Only Phase is a variable rate equal to the daily highest prime rate published by the Wall Street Journal plus

100

basis points (

rounded up to the nearest

1/8

percent), but in

event less than the initial interest rate in effect on the closing date (

6.5%

). During the Permanent Phase, the Company will pay interest at a fixed rate based on the Federal Home Loan Bank rate for a

-year maturity as made available by the Federal Home Loan Bank of New York plus a margin of

200

basis points (

) rounded up to the nearest

1/8

percent, plus principal based on a

-year amortization period. The Permanent Phase interest rate currently would be

3.25%.

The

first

advance of

$1.1

million was used to finance the tenant improvements pursuant to the amended and expanded signed lease with Stony Brook University Hospital (“SBU Hospital”). An additional advance of

$1.1

million was drawn on

March 29, 2019

to finance the buildouts on leases signed through

December 31, 2018.

The balance of the loan can be drawn upon for improvements to be completed by the Company, as landlord, pursuant to future leases with the State University of New York or institutions affiliated with it (or other tenants subject to the bank’s approval) anytime during the Interest-Only Phase.

To secure access to additional working capital through the final sale date of the Flowerfield industrial buildings, the Company secured a

second

loan evidenced by a non-revolving business line of credit agreement and promissory note with the Original Line bank for up to

$3,000,000,

which closed on

January 24, 2019.

There is an interest only phase for the

first

twenty-four

months of the loan (“Interest-Only Phase”) after which it automatically converts to a permanent loan maturing on

January 20, 2028 (

months after conversion to a permanent loan) (the “Permanent Phase”). The interest rate during the Interest-Only Phase shall be a variable rate equal to the daily highest prime rate published by the Wall Street Journal plus

100

basis points (

rounded up to the nearest

1/8

percent), but in

event less than the initial interest rate in effect on the closing date (

6.5%

). During the Permanent Phase, the Company will pay interest at a fixed rate based on the Federal Home Loan Bank rate for a

-year maturity as made available by the Federal Home Loan Bank of New York plus a margin of

200

basis points (

) rounded up to the nearest

1/8

percent, plus principal based on a

-year amortization period. Permanent Phase interest rate currently would be

3.25%.

Two advances of

$1,000,000

and

$500,000

were drawn on

September 30

and

December 31, 2019,

respectively. The balance of

$1,419,932,

net of closing costs of

$80,068,

is available to be drawn down.

Both lines are secured by approximately

31.8

acres of the Flowerfield Industrial Park including the related buildings and leases. As of

December 31, 2019,

the Company is in compliance with the loan covenants. The Company anticipates modifying the terms of the loans following the completion of the subdivision so that the loans remain secured by the subdivided industrial park lot only.

The loan payable matures upon the earlier of the sale of the Flowerfield Industrial Park or as follows:

Years Ending December 31,
2020	$	66,000
2021		138,630
2022		143,204
2023		147,928
2024		152,807
Thereafter		3,131,499
Total	$	3,780,068

To secure access to additional working capital through the final sale date of the Cortlandt Property lots (“Lots”), the Company, through its subsidiary GSD Cortlandt, LLC (“GSD Cortlandt”) signed a commitment letter for a

third

loan evidenced by a non-revolving business line of credit agreement and promissory note with the Original Line bank for up to

$2,500,000,

which is scheduled to close in the

second

quarter of

2020.

The term is

months, with an option to extend for an additional

months. The interest rate is a variable rate equal to the daily highest prime rate published by the Wall Street Journal plus

100

basis points (

), rounded up to the nearest

1/8

percent), but in

event less than

four

and

three

quarters percent (

4.75%

). The ability to draw upon the line is limited to certain amounts, contingent upon whether GSD Cortlandt delivered signed contracts for

one

or both Lots.

The line is secured by the Cortlandt property (approximately

acres) and cross collateralized by approximately

31.8

acres of the Flowerfield Industrial Park including the related buildings and leases. The Company anticipates modifying the terms of the loans following the completion of the subdivision so that the loans remain cross collateralized by the subdivided industrial park lot only.

Effective

February 27, 2020,

the Company entered into an engagement letter with a national real estate finance firm (the “Firm”) pursuant to which the Firm agreed to assist the Company secure financing with prospective lenders, and the Company agreed to pay the Firm an origination fee equal to

one

percent (

) of any loan secured by the Company with any lender introduced to the Company by the Firm other than designated excluded lenders with whom the Company has a preexisting relationship. The intended use of this facility is to finance tenant improvements on new leases, if any, and a reserve for additional working capital.