23.	Subsequent Events

Employment -

January 25, 2018,

Gyrodyne entered into an addendum to the employment agreement with Mr. Pitsiokos effective

January 25, 2018,

pursuant to define with greater specificity Mr. Pitsiokos’ duties and responsibilities with respect to the Company’s properties.

Debt Facility

–

Effective

October 24, 2017,

the Company and the State of New York acting through Stony Brook University Hospital (“SBU Hospital”) entered into an amendment to the existing lease with SBU Hospital (approved by the New York State Controller’s Office on

January 19, 2018)

for the expansion of the existing space currently occupied by SBU Hospital from approximately

13,747

square feet at a rate of

$24.76

per square foot to

26,573

square feet at rate of

$19.00

(plus annual escalators) per square foot. The total lease commitment from the amendment net of the existing lease is approximately

$3.5

million and extends through

2025.

The lease amendment obligates the Company, at its sole cost and expense, to build out the additional

12,826

square feet (the “Additional Space”) and provide a "turnkey" facility in accordance with an agreed-upon work letter.

To finance the buildout of the additional space, the Company secured a non-revolving credit line with a bank for up to

$3,000,000,

which closed on

March 21, 2018.

There will be an interest only phase for the

first

eight

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

November 30, 2025 (

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). 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 but in

event less than

4.25%,

plus principal based on a

-year amortization period.

The mortgage loan is secured by approximately

31.8

acres of the Flowerfield Industrial Park including the respective buildings and related leases. The Company anticipates modifying the terms of the loan following the completion of its subdivision.

The Company is committed to focusing its current capital on supporting operations and the pursuit of entitlements. The loan is financing the Company

’s secondary but dual strategy of maximizing the value of the Flowerfield.