# EDGAR Filing Document

**Accession Number:** 0001755755
**File Stem:** 0001755755-25-000013
**Filing Date:** 2025-8
**Character Count:** 734625
**Document Hash:** 43cb13dbd5d08a833511d4266d931762
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001755755-25-000013.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001755755-25-000013

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 91

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VINEBROOK HOMES TRUST, INC.
- **CENTRAL INDEX KEY:** 0001755755
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 831268857
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56274
- **FILM NUMBER:** 251216404

**BUSINESS ADDRESS:**
- **STREET 1:** 300 CRESCENT COURT
- **STREET 2:** SUITE 700
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201
- **BUSINESS PHONE:** 214-276-6300

**MAIL ADDRESS:**
- **STREET 1:** 300 CRESCENT COURT
- **STREET 2:** SUITE 700
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201

?xml version='1.0' encoding='ASCII'? vhti-20250630

<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**____________________________________________________________**

**FORM 10-Q**

**____________________________________________________________**

**(Mark One)**

⌧ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

□ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from __________to __________**

**Commission File Number 000-56274**

**____________________________________________________________**

**VINEBROOK HOMES TRUST, INC.**

**(Exact Name of Registrant as Specified in Its Charter)**

**____________________________________________________________**

---

| | |
|:---|:---|
| **Maryland** | **83-1268857** |
| **(State or other Jurisdiction of**<br>**Incorporation or Organization)** | **(I.R.S. Employer<br>Identification No.)** |

---

---

| | |
|:---|:---|
| **300 Crescent Court, Suite 700, Dallas, Texas** | **75201** |
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

**(214) 276-6300**

**(Telephone Number, Including Area Code)**

**____________________________________________________________**

**Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| **N/A** | **N/A** | **N/A** |

---

**____________________________________________________________**

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | □ | Accelerated Filer | □ |
| Non-Accelerated Filer | ⌧ | Smaller reporting company | □ |
| 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. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes □ No ⌧

As of August 13, 2025, the registrant had 25,778,073 shares of its Class A Common Stock, par value $0.01 per share, and no shares of its Class I Common Stock, par value $0.01 per share, outstanding.

------

<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**VineBrook Homes Trust, Inc.**

**Form 10-Q**

**Quarter Ended June 30, 2025**

**INDEX**

---

| | |
|:---|:---|
| | **Page** |
| <u>[Cautionary Note Regarding Forward-Looking Statements](#i0d56967759dc4fe89faa1c7c853a3143_10)</u> | <u>[ii](#i0d56967759dc4fe89faa1c7c853a3143_10)</u> |
| [Part I](#i0d56967759dc4fe89faa1c7c853a3143_13) | [Part I](#i0d56967759dc4fe89faa1c7c853a3143_13) |
| <u>[Item 1. Financial Statements](#i0d56967759dc4fe89faa1c7c853a3143_16)</u> | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i0d56967759dc4fe89faa1c7c853a3143_22)</u> | <u>[1](#i0d56967759dc4fe89faa1c7c853a3143_22)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Unaudited Statements of Operations and Comprehensive Income (Loss)](#i0d56967759dc4fe89faa1c7c853a3143_25)</u> | <u>[2](#i0d56967759dc4fe89faa1c7c853a3143_25)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Unaudited Statements of Stockholders' Equity](#i0d56967759dc4fe89faa1c7c853a3143_28)</u> | <u>[3](#i0d56967759dc4fe89faa1c7c853a3143_28)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Unaudited Statements of Cash Flows](#i0d56967759dc4fe89faa1c7c853a3143_31)</u> | <u>[4](#i0d56967759dc4fe89faa1c7c853a3143_31)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Consolidated Unaudited Financial Statements](#i0d56967759dc4fe89faa1c7c853a3143_34)</u> | <u>[5](#i0d56967759dc4fe89faa1c7c853a3143_34)</u> |
| <u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#i0d56967759dc4fe89faa1c7c853a3143_112)</u> | <u>[19](#i0d56967759dc4fe89faa1c7c853a3143_112)</u> |
| <u>[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#i0d56967759dc4fe89faa1c7c853a3143_184)</u> | <u>[39](#i0d56967759dc4fe89faa1c7c853a3143_184)</u> |
| <u>[Item 4. Controls and Procedures](#i0d56967759dc4fe89faa1c7c853a3143_187)</u> | <u>[40](#i0d56967759dc4fe89faa1c7c853a3143_187)</u> |
| [Part II](#i0d56967759dc4fe89faa1c7c853a3143_31) | [Part II](#i0d56967759dc4fe89faa1c7c853a3143_31) |
| <u>[Item 1. Legal Proceedings](#i0d56967759dc4fe89faa1c7c853a3143_232)</u> | <u>[41](#i0d56967759dc4fe89faa1c7c853a3143_232)</u> |
| <u>[Item 1A. Risk Factors](#i0d56967759dc4fe89faa1c7c853a3143_235)</u> | <u>[41](#i0d56967759dc4fe89faa1c7c853a3143_97)</u> |
| <u>[Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](#i0d56967759dc4fe89faa1c7c853a3143_238)</u> | <u>[41](#i0d56967759dc4fe89faa1c7c853a3143_238)</u> |
| <u>[Item 3. Defaults Upon Senior Securities](#i0d56967759dc4fe89faa1c7c853a3143_241)</u> | <u>[41](#i0d56967759dc4fe89faa1c7c853a3143_241)</u> |
| <u>[Item 4. Mine Safety Disclosures](#i0d56967759dc4fe89faa1c7c853a3143_244)</u> | <u>[41](#i0d56967759dc4fe89faa1c7c853a3143_244)</u> |
| <u>[Item 5. Other Information](#i0d56967759dc4fe89faa1c7c853a3143_247)</u> | <u>[41](#i0d56967759dc4fe89faa1c7c853a3143_247)</u> |
| <u>[Item 6. Exhibits](#i0d56967759dc4fe89faa1c7c853a3143_250)</u> | <u>[42](#i0d56967759dc4fe89faa1c7c853a3143_250)</u> |
| <u>[Signatures](#i0d56967759dc4fe89faa1c7c853a3143_253)</u> | <u>[43](#i0d56967759dc4fe89faa1c7c853a3143_253)</u> |

---

i

------

<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Certain statements contained in this Quarterly Report on Form 10-Q (this "Form 10-Q") of VineBrook Homes Trust, Inc. ("VineBrook", "we", "us", "our", or the "Company") other than historical facts may be considered forward-looking statements. In particular, statements relating to our business and investment strategies, plans or intentions, our liquidity and capital resources, our performance and results of operations, refinancing of the Warehouse Facility (as defined below) and the MetLife Note (as defined below) and our intent to invest in newer homes in BTR (as defined below) communities in higher growth markets contain forward-looking information and disclosures. Furthermore, all statements regarding future financial performance (including market conditions) are forward-looking statements. We caution investors that any forward-looking statements presented in this Form 10-Q are based on management's beliefs and assumptions made by, and information currently available to, management. When used, the words "anticipate," "believe," "could," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "would," "result," the negative version of these words and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you against relying on any of these forward-looking statements.

Some of the risks and uncertainties that may cause our actual results, performance, liquidity or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unfavorable changes in economic conditions and their effects on the real estate industry generally and our operations and financial condition, including our ability to access funding and generate returns for stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• macroeconomic trends including inflation and high interest rates may continue to, and other trends such as tariffs may, adversely affect our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with our limited operating history and the possibility that we may not replicate the historical results achieved by other entities managed or sponsored by affiliates of NexPoint Real Estate Advisors V, L.P. (our "Adviser");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dependence on our Adviser and its affiliates and personnel to conduct our day-to-day operations and potential conflicts of interest with our Adviser and its affiliates and personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the fluctuation in the net asset value ("NAV") per share amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loss of key personnel of the Company and our Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk we make significant changes to our strategies in a market downturn, or fail to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with ownership of real estate, including properties in transition, subjectivity of valuation, environmental matters and lack of liquidity in our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the Evergreen Manager's ability to terminate the Management Agreements and with any potential internalization of our management functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with acquisitions, including the risk of expanding our scale of operations and acquisitions, which could adversely impact anticipated yields;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to increasing property taxes, homeowner's associations ("HOAs") fees and insurance costs may negatively affect our financial results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with our ability to identify, lease to and retain quality residents, including those relating to housing market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with leasing real estate, including the risks that rents do not increase sufficiently to keep pace with inflation and other rising costs of operations and loss of residents to competitive pressures from other types of properties or market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to governmental laws, executive orders, regulations and rules applicable to our properties or that may be passed in the future which may impact operations, costs, revenue or growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks relating to the timing and costs of the renovation of properties which has the potential to adversely affect our operating results and ability to make distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with pandemics, including the future outbreak of other highly infectious or contagious diseases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to our ability to change our major policies, operations and targeted investments without stockholder consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to climate change and natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to our use of leverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with our substantial current indebtedness and indebtedness we may incur in the future, rising interest rates and the availability of sufficient financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to failure to maintain our status as a real estate investment trust ("REIT");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to failure of our OP (as defined below) to be taxable as a partnership for U.S. federal income tax purposes, possibly causing us to fail to qualify for or to maintain REIT status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to compliance with REIT requirements, which may limit our ability to hedge our liabilities effectively and cause us to forgo otherwise attractive opportunities, liquidate certain of our investments or incur tax liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that the Internal Revenue Service ("IRS") may consider certain sales of properties to be prohibited transactions, resulting in a 100% penalty tax on any taxable gain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ineligibility of dividends payable by REITs for the reduced tax rates available for some dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the stock ownership restrictions of the Internal Revenue Code of 1986, as amended (the "Code") for REITs and the stock ownership limits imposed by our charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recent and potential legislative or regulatory tax changes or other actions affecting REITs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to generate sufficient cash flows to service our outstanding indebtedness or pay distributions at expected levels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the Highland Bankruptcy (as defined below), including related litigation and potential conflicts of interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of the other risks included under Item 1A, "Risk Factors" in our Form 10-K, filed with the U.S. Securities and Exchange Commission ("SEC") on March 28, 2025 (our "Annual Report").

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date of this Form 10-Q. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by law.

ii

------

<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**VINEBROOK HOMES TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**(in thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(unaudited)** | |
| **ASSETS** | | |
| Operating real estate investments |  |  |
| &nbsp;&nbsp;&nbsp;Land | $513496 | $527422 |
| &nbsp;&nbsp;&nbsp;Buildings and improvements | 2701400 | 2739977 |
| &nbsp;&nbsp;&nbsp;Intangible lease assets | 143 |  |
| Total gross operating real estate investments | 3215039 | 3267399 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization | (421553) | (373964) |
| Total net operating real estate investments | 2793486 | 2893435 |
| &nbsp;&nbsp;&nbsp;Real estate held for sale, net | 54420 | 55592 |
| Total net real estate investments | 2847906 | 2949027 |
| &nbsp;&nbsp;&nbsp;Investments, at fair value | 2416 | 2500 |
| &nbsp;&nbsp;&nbsp;Cash | 24524 | 40738 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 53109 | 43894 |
| &nbsp;&nbsp;&nbsp;Accounts and other receivables, net | 12523 | 11231 |
| &nbsp;&nbsp;&nbsp;Prepaid and other assets | 46589 | 35497 |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives, at fair value | 9578 | 21289 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 3928 | 5786 |
| &nbsp;&nbsp;&nbsp;Asset-backed securitization certificates | 78964 | 78964 |
| &nbsp;&nbsp;&nbsp;Goodwill | 20522 | 20522 |
| **TOTAL ASSETS** | $3100059 | $3209448 |
| **LIABILITIES AND EQUITY** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Notes payable, net | $1890163 | $1893752 |
| &nbsp;&nbsp;&nbsp;Credit facilities, net | 551275 | 554135 |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities | 49470 | 43847 |
| &nbsp;&nbsp;&nbsp;Accrued real estate taxes payable | 38359 | 37235 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | 28923 | 30176 |
| &nbsp;&nbsp;&nbsp;Security deposit liability | 26990 | 26063 |
| &nbsp;&nbsp;&nbsp;Prepaid rents | 2583 | 2891 |
| **Total Liabilities** | 2587763 | 2588099 |
| Redeemable Series A Preferred stock, $0.01 par value: 16,000,000 shares authorized; 4,996,000 and 4,996,000 shares issued and outstanding, respectively | 123157 | 122820 |
| Redeemable noncontrolling interests in the OP | 256534 | 257454 |
| Redeemable noncontrolling interests in consolidated VIEs | 83001 | 80711 |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Class A Common stock, $0.01 par value: 300,000,000 shares authorized; 25,753,592 and 25,377,421 shares issued and outstanding, respectively | 260 | 256 |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock, $0.01 par value: 2,548,240 shares authorized; 2,548,240 and 2,548,240 shares issued and outstanding, respectively | 25 | 25 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 778793 | 762904 |
| &nbsp;&nbsp;&nbsp;Distributions in excess of retained earnings | (740419) | (623403) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 7533 | 14499 |
| **Total Stockholders' Equity** | 46192 | 154281 |
| Noncontrolling interests in consolidated VIEs | 3412 | 6083 |
| **TOTAL LIABILITIES AND EQUITY** | $3100059 | $3209448 |

---

See Accompanying Notes to Consolidated Financial Statements

------

<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**VINEBROOK HOMES TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)**

**(in thousands, except per share amounts)** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Rental income | $90840 | $90776 | $181224 | $179559 |
| &nbsp;&nbsp;&nbsp;Other income | 3364 | 969 | 5741 | 2471 |
| Total revenues | 94204 | 91745 | 186965 | 182030 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property operating expenses | 21402 | 19765 | 43155 | 39394 |
| &nbsp;&nbsp;&nbsp;Real estate taxes and insurance | 17912 | 17069 | 35111 | 34256 |
| &nbsp;&nbsp;&nbsp;Property management fees | 633 | 840 | 1243 | 1629 |
| &nbsp;&nbsp;&nbsp;Advisory fees | 4970 | 5187 | 9954 | 10446 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 55302 | 18038 | 76351 | 39255 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 32192 | 31378 | 62197 | 63434 |
| &nbsp;&nbsp;&nbsp;Interest expense | 35117 | 34358 | 70459 | 67662 |
| Total expenses | 167528 | 126635 | 298470 | 256076 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | (195) | (73) | (353) | (1374) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on sales and impairment of real estate, net | 2845 | (5234) | 2381 | (9121) |
| &nbsp;&nbsp;&nbsp;Investment income | 716 | 1819 | 1271 | 2092 |
| &nbsp;&nbsp;&nbsp;Change in unrealized loss on investments |  | (255) |  | (255) |
| &nbsp;&nbsp;&nbsp;Reversal of (provision for) loan losses |  |  | 500 |  |
| &nbsp;&nbsp;&nbsp;Loss on forfeited deposits | (6) |  | (1409) |  |
| **Net loss** | (69964) | (38633) | (109115) | (82704) |
| **Dividends on and accretion to redemption value of Redeemable Series A Preferred stock** | 2198 | 2030 | 4397 | 4237 |
| **Net income attributable to Redeemable Series B Preferred stock** | 1513 |  | 3026 |  |
| **Net loss attributable to redeemable noncontrolling interests in the OP** | (10494) | (5796) | (16369) | (12407) |
| **Net loss attributable to redeemable noncontrolling interests in consolidated VIEs** | (3968) | (5840) | (9671) | (11515) |
| **Net loss attributable to noncontrolling interests in consolidated VIEs** | (528) | (921) | (1343) | (1814) |
| **Net loss attributable to stockholders** | $(58685) | $(28106) | $(89155) | $(61205) |
| **Other comprehensive loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized loss on interest rate hedges | (3809) | (6005) | (8197) | (3232) |
| **Total comprehensive loss** | (73773) | (44638) | (117312) | (85936) |
| **Dividends on and accretion to redemption value of Redeemable Series A Preferred stock** | 2198 | 2030 | 4397 | 4237 |
| **Comprehensive income attributable to Redeemable Series B Preferred stock** | 1513 |  | 3026 |  |
| **Comprehensive loss attributable to redeemable noncontrolling interests in the OP** | (11065) | (6697) | (17599) | (12891) |
| **Comprehensive loss attributable to redeemable noncontrolling interests in consolidated VIEs** | (3968) | (5840) | (9671) | (11515) |
| **Comprehensive loss attributable to noncontrolling interests in consolidated VIEs** | (528) | (921) | (1343) | (1814) |
| **Comprehensive loss attributable to stockholders** | $(61923) | $(33210) | $(96122) | $(63953) |
| **Weighted average common shares outstanding - basic** | 25724 | 25235 | 25594 | 25167 |
| **Weighted average common shares outstanding - diluted** | 25724 | 25235 | 25594 | 25167 |
| **Loss per share - basic** | $(2.28) | $(1.11) | $(3.48) | $(2.43) |
| **Loss per share - diluted** | $(2.28) | $(1.11) | $(3.48) | $(2.43) |

---

See Accompanying Notes to Consolidated Financial Statements

------

<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**VINEBROOK HOMES TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(dollars in thousands, except share and per share amounts)**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series B Preferred Stock** | **Series B Preferred Stock** | **Class A Common Stock** | **Class A Common Stock** | | | | |
| **Three Months Ended June 30, 2025** | **Number of Shares** | **Par Value** | **Number of Shares** | **Par Value** |<br>**Additional Paid-in Capital** |<br>**Distributions in Excess of<br>Retained Earnings** |<br>**Accumulated Other<br>Comprehensive Income (Loss)** |<br>**Total** |
| **Balances, March 31, 2025** | 2548240 | $25 | 25508642 | $257 | $759413 | $(667731) | $10771 | $102735 |
| &nbsp;&nbsp;&nbsp;Net loss attributable to stockholders |  |  |  |  |  | (58685) |  | (58685) |
| &nbsp;&nbsp;&nbsp;Net income attributable to Series B preferred stockholders |  |  |  |  |  | 1513 |  | 1513 |
| &nbsp;&nbsp;&nbsp;Issuance of Class A common stock |  |  | 107289 | 1 | 2102 |  |  | 2103 |
| &nbsp;&nbsp;&nbsp;Redemptions of Class A common stock |  |  | (18154) |  | (990) |  |  | (990) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation |  |  | 155815 | 2 | 15875 |  |  | 15877 |
| &nbsp;&nbsp;&nbsp;Common stock dividends declared ($0.5301 per share) |  |  |  |  |  | (14003) |  | (14003) |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock dividends declared ($0.59375 per share) |  |  |  |  |  | (1513) |  | (1513) |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss attributable to stockholders |  |  |  |  |  |  | (3238) | (3238) |
| &nbsp;&nbsp;&nbsp;Adjustments to reflect redemption value of redeemable noncontrolling interests in the OP |  |  |  |  | 9773 |  |  | 9773 |
| &nbsp;&nbsp;&nbsp;Adjustments to reflect redemption value of redeemable noncontrolling interests in consolidated VIEs |  |  |  |  | (7380) |  |  | (7380) |
| **Balances, June 30, 2025** | 2548240 | $25 | 25753592 | $260 | $778793 | $(740419) | $7533 | $46192 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series B Preferred Stock** | **Series B Preferred Stock** | **Class A Common Stock** | **Class A Common Stock** | | | | |
| **Six Months Ended June 30, 2025** | **Number of Shares** | **Par Value** | **Number of Shares** | **Par Value** |<br>**Additional Paid-in Capital** |<br>**Distributions in Excess of<br>Retained Earnings** |<br>**Accumulated Other<br>Comprehensive Income (Loss)** |<br>**Total** |
| **Balances, December 31, 2024** | 2548240 | $25 | 25377421 | $256 | $762903 | $(623403) | $14500 | $154281 |
| &nbsp;&nbsp;&nbsp;Net loss attributable to stockholders |  |  |  |  |  | (89155) |  | (89155) |
| &nbsp;&nbsp;&nbsp;Net income attributable to Series B preferred stockholders |  |  |  |  |  | 3026 |  | 3026 |
| &nbsp;&nbsp;&nbsp;Issuance of Class A common stock |  |  | 213927 | 2 | 6999 |  |  | 7001 |
| &nbsp;&nbsp;&nbsp;Redemptions of Class A common stock |  |  | (31353) |  | (1710) |  |  | (1710) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation |  |  | 193597 | 2 | 17249 |  |  | 17251 |
| &nbsp;&nbsp;&nbsp;Common stock dividends declared ($1.06020 per share) |  |  |  |  |  | (27861) |  | (27861) |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock dividends declared ($1.18750 per share) |  |  |  |  |  | (3026) |  | (3026) |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss attributable to stockholders |  |  |  |  |  |  | (6967) | (6967) |
| &nbsp;&nbsp;&nbsp;Adjustments to reflect redemption value of redeemable noncontrolling interests in the OP |  |  |  |  | 5313 |  |  | 5313 |
| &nbsp;&nbsp;&nbsp;Adjustments to reflect redemption value of redeemable noncontrolling interests in consolidated VIEs |  |  |  |  | (11961) |  |  | (11961) |
| **Balances, June 30, 2025** | 2548240 | $25 | 25753592 | $260 | $778793 | $(740419) | $7533 | $46192 |

---

See Accompanying Notes to Consolidated Financial Statements

**VINEBROOK HOMES TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(dollars in thousands, except share and per share amounts)**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series B Preferred Stock** | **Series B Preferred Stock** | **Class A Common Stock** | **Class A Common Stock** | | | | |
| **Three Months Ended June 30, 2024** | **Number of Shares** | **Par Value** | **Number of Shares** | **Par Value** |<br>**Additional Paid-in Capital** |<br>**Distributions in Excess of<br>Retained Earnings** |<br>**Accumulated Other<br>Comprehensive Income (Loss)** |<br>**Total** |
| **Balances, March 31, 2024** | 2548240 | $25 | 25132484 | $253 | $763652 | $(472039) | $33564 | $325430 |
| &nbsp;&nbsp;&nbsp;Net loss attributable to stockholders |  |  |  |  |  | (28106) |  | (28106) |
| &nbsp;&nbsp;&nbsp;Issuance of Class A common stock |  |  | 107515 | 1 | 5534 |  |  | 5535 |
| &nbsp;&nbsp;&nbsp;Redemptions of Class A common stock |  |  | (25140) |  | (1455) |  |  | (1455) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation |  |  | 37706 | 1 | 1533 |  |  | 1534 |
| &nbsp;&nbsp;&nbsp;Common stock dividends declared ($0.5301 per share) |  |  |  |  |  | (13762) |  | (13762) |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock dividends declared $0.59375 per share) |  |  |  |  |  | (1513) |  | (1513) |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss attributable to stockholders |  |  |  |  |  |  | (5104) | (5104) |
| &nbsp;&nbsp;&nbsp;Adjustments to reflect redemption value of redeemable noncontrolling interests in the OP |  |  |  |  | (8705) |  |  | (8705) |
| &nbsp;&nbsp;&nbsp;Adjustments to reflect redemption value of redeemable noncontrolling interests in consolidated VIEs |  |  |  |  | (2897) |  |  | (2897) |
| **Balances, June 30, 2024** | 2548240 | $25 | 25252565 | $255 | $757662 | $(515420) | $28460 | $270982 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series B Preferred Stock** | **Series B Preferred Stock** | **Class A Common Stock** | **Class A Common Stock** | | | | |
| **Six Months Ended June 30, 2024** | **Number of Shares** | **Par Value** | **Number of Shares** | **Par Value** |<br>**Additional Paid-in Capital** |<br>**Distributions in Excess of<br>Retained Earnings** |<br>**Accumulated Other<br>Comprehensive Income (Loss)** |<br>**Total** |
| **Balances, December 31, 2023** | 2548240 | $25 | 25006237 | $252 | $776755 | $(423769) | $31208 | $384471 |
| &nbsp;&nbsp;&nbsp;Net loss attributable to stockholders |  |  |  |  |  | (61205) |  | (61205) |
| &nbsp;&nbsp;&nbsp;Issuance of Class A common stock |  |  | 217635 | 2 | 11395 |  |  | 11397 |
| &nbsp;&nbsp;&nbsp;Redemptions of Class A common stock |  |  | (44827) |  | (2616) |  |  | (2616) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation |  |  | 73520 | 1 | 2908 |  |  | 2909 |
| &nbsp;&nbsp;&nbsp;Common stock dividends declared ($1.06020 per share) |  |  |  |  |  | (27420) |  | (27420) |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock dividends declared ($1.18750 per share) |  |  |  |  |  | (3026) |  | (3026) |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss attributable to stockholders |  |  |  |  |  |  | (2748) | (2748) |
| &nbsp;&nbsp;&nbsp;Adjustments to reflect redemption value of redeemable noncontrolling interests in the OP |  |  |  |  | (25837) |  |  | (25837) |
| &nbsp;&nbsp;&nbsp;Adjustments to reflect redemption value of redeemable noncontrolling interests in consolidated VIEs |  |  |  |  | (4943) |  |  | (4943) |
| **Balances, June 30, 2024** | 2548240 | $25 | 25252565 | $255 | $757662 | $(515420) | $28460 | $270982 |

---

See Accompanying Notes to Consolidated Financial Statements

------

<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**VINEBROOK HOMES TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(dollars in thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net loss | $(109115) | $(82704) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;(Gain) loss on sales and impairment of real estate, net | (2381) | 9121 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 62197 | 63434 |
| &nbsp;&nbsp;&nbsp;Non-cash interest expense (income) | 12299 | 7985 |
| &nbsp;&nbsp;&nbsp;Change in fair value of interest rate derivatives | (10415) | (23252) |
| &nbsp;&nbsp;&nbsp;Provision for (reversal of) loan losses | (500) |  |
| &nbsp;&nbsp;&nbsp;Net cash received on derivative settlements | 14480 | 24398 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 353 | 1374 |
| &nbsp;&nbsp;&nbsp;Equity-based compensation | 43627 | 10453 |
| &nbsp;&nbsp;&nbsp;Loss on forfeited deposits | 1409 |  |
| Changes in operating assets and liabilities, net of effects of sales and acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (1843) | 4429 |
| &nbsp;&nbsp;&nbsp;Prepaids and other assets | (16584) | (3292) |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities | 6387 | 1268 |
| &nbsp;&nbsp;&nbsp;Accrued real estate taxes payable | 1124 | (3852) |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | (1253) | 3742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (215) | 13104 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net proceeds from sales of investment | 302 |  |
| &nbsp;&nbsp;&nbsp;Net proceeds from sales of real estate | 83875 | 91355 |
| &nbsp;&nbsp;&nbsp;Prepaid deposits |  | 76 |
| &nbsp;&nbsp;&nbsp;Insurance proceeds received | 3492 | 695 |
| &nbsp;&nbsp;&nbsp;Acquisitions of real estate investments | (18501) |  |
| &nbsp;&nbsp;&nbsp;Additions to real estate investments | (23196) | (35047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 45972 | 57079 |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Dividends payable |  | (4710) |
| &nbsp;&nbsp;&nbsp;Notes payable proceeds received | 28719 | 303923 |
| &nbsp;&nbsp;&nbsp;Notes payable payments | (43245) | (26704) |
| &nbsp;&nbsp;&nbsp;Credit facilities proceeds received | 13710 | 2759 |
| &nbsp;&nbsp;&nbsp;Credit facilities principal payments | (16650) | (305129) |
| &nbsp;&nbsp;&nbsp;Financing costs paid | (1635) | (4667) |
| &nbsp;&nbsp;&nbsp;Interest rate cap premium paid |  |  |
| &nbsp;&nbsp;&nbsp;Redemptions of Class A common stock paid | (1907) | (3104) |
| &nbsp;&nbsp;&nbsp;Dividends paid to common stockholders | (15642) | (14081) |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock dividends paid | (3026) | (3026) |
| &nbsp;&nbsp;&nbsp;Payments for taxes related to net share settlement of stock-based compensation | (4360) | (1187) |
| &nbsp;&nbsp;&nbsp;Redemptions of Series A Preferred stock paid |  | (86) |
| &nbsp;&nbsp;&nbsp;Series A Preferred stock dividends paid | (4060) | (4061) |
| &nbsp;&nbsp;&nbsp;Contributions from redeemable noncontrolling interests in the OP | 1048 | 1074 |
| &nbsp;&nbsp;&nbsp;Distributions to redeemable noncontrolling interests in the OP | (4380) | (1119) |
| &nbsp;&nbsp;&nbsp;Redemptions by redeemable noncontrolling interests in the OP |  | (457) |
| &nbsp;&nbsp;&nbsp;Distributions to redeemable noncontrolling interests in consolidated VIEs |  | 38 |
| &nbsp;&nbsp;&nbsp;Contributions from noncontrolling interests in consolidated VIEs | 307 | 103 |
| &nbsp;&nbsp;&nbsp;Distributions to noncontrolling interests in consolidated VIEs | (424) | (450) |
| &nbsp;&nbsp;&nbsp;Redemptions by noncontrolling interests in consolidated VIEs | (1211) | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (52756) | (60959) |
| Change in cash and restricted cash | (6999) | 9224 |
| Cash and restricted cash, beginning of period | 84632 | 85620 |
| Cash and restricted cash, end of period | $77633 | $94844 |
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid, net of amount capitalized | $59413 | $68374 |
| **Supplemental Disclosure of Noncash Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Accrued dividends payable to common stockholders | 807 | 752 |
| &nbsp;&nbsp;&nbsp;Accrued distributions payable to redeemable noncontrolling interests in the OP | 1052 | 1231 |
| &nbsp;&nbsp;&nbsp;Accrued dividends payable to Series A Preferred stockholders | 4060 | 4061 |
| &nbsp;&nbsp;&nbsp;Accrued redemptions payable to common stockholders | 990 | 2616 |
| &nbsp;&nbsp;&nbsp;Accrued capital expenditures | 622 |  |
| &nbsp;&nbsp;&nbsp;Accretion to redemption value of Redeemable Series A Preferred stock | 337 | 176 |
| &nbsp;&nbsp;&nbsp;Asset backed securitization certificates |  | 71868 |
| &nbsp;&nbsp;&nbsp;Write off of fully amortized deferred financing costs |  | 1965 |
| &nbsp;&nbsp;&nbsp;Issuance of Class A common stock related to DRIP dividends | 11412 | 12588 |
| &nbsp;&nbsp;&nbsp;DRIP dividends to common stockholders | (11412) | (12588) |
| &nbsp;&nbsp;&nbsp;Contributions from redeemable noncontrolling interests in the OP related to DRIP distributions | 412 | 3333 |
| &nbsp;&nbsp;&nbsp;DRIP distributions to redeemable noncontrolling interests in the OP | (412) | (3333) |
| &nbsp;&nbsp;&nbsp;Conversion of PI Units to OP Units by redeemable noncontrolling interests in the OP | 17796 |  |
| &nbsp;&nbsp;&nbsp;Contributions from redeemable noncontrolling interests in consolidated VIEs related to DRIP distributions | 2786 | 2679 |
| &nbsp;&nbsp;&nbsp;DRIP distributions to redeemable noncontrolling interests in consolidated VIEs | (2786) | (2679) |
| &nbsp;&nbsp;&nbsp;Contributions from noncontrolling interests in consolidated VIEs related to DRIP distributions | 172 | 183 |
| &nbsp;&nbsp;&nbsp;DRIP distributions to noncontrolling interests in consolidated VIEs | (172) | (183) |

---

See Accompanying Notes to Consolidated Financial Statements

------

<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**VINEBROOK HOMES TRUST, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1*.* Organization and Description of Business**

VineBrook Homes Trust, Inc. (the "Company", "VineBrook", "we", "us", "our") was incorporated in Maryland on July 16, 2018 and has elected to be taxed as a REIT, and the Company believes the current organization and method of operation will enable it to maintain its status as a REIT. The Company is focused on acquiring, renovating, leasing, maintaining and otherwise managing single family rental ("SFR") home investments primarily located in large to medium size cities and suburbs located in the midwestern, heartland and southeastern United States and providing our residents with affordable, safe and clean dwellings with a high level of service. Substantially all of the Company's business is conducted through VineBrook Homes Operating Partnership, L.P. (the "OP"), the Company's operating partnership, as the Company owns its properties indirectly through the OP. As of June 30, 2025, there were a combined 24,343,468 Class A, Class B and Class C units of the OP (collectively, "OP Units"), of which 19,641,598 Class A OP Units, or 80.7%, were owned by the Company, 2,814,062 Class B OP Units, or 11.6%, were owned by NexPoint Real Estate Opportunities, LLC ("NREO"), 97,601 Class C OP Units, or 0.4%, were owned by NRESF REIT Sub, LLC ("NRESF"), 154,025 Class C OP Units, or 0.6%, were owned by GAF REIT, LLC ("GAF REIT") and 1,636,182 Class C OP Units, or 6.7%, were owned by limited partners that were sellers in the Formation Transaction (as defined below) (the "VineBrook Contributors") or other Company insiders. NREO, NRESF and GAF REIT are noncontrolling limited partners unaffiliated with the Company but are affiliates of the Adviser (as defined below). The Third Amended and Restated Limited Partnership Agreement of the OP (as amended, the "OP LPA") generally provides that Class A OP Units and Class B OP Units each have 50.0% of the voting power of the OP Units, including with respect to the election of directors to the board of directors of the OP whose sole responsibility is appointment and removal of the general partner of the OP, and the Class C OP Units have no voting power. Each Class A OP Unit, Class B OP Unit and Class C OP Unit otherwise represents substantially the same economic interest in the OP. VineBrook Homes OP GP, LLC (the "OP GP"), is the general partner of the OP with exclusive management powers over the business and affairs of the OP and as of August 3, 2023, a wholly owned subsidiary of the Company. The Company determined it must consolidate the OP under the VIE model as it was determined the Company both controls the direct activities of the OP and has the right to receive benefits that could potentially be significant to the OP.

The Company's mission is to provide our residents with affordable, safe, clean and functional homes with a high level of service through institutional, quality management. Our investment objective is to acquire properties with cash flow growth potential, renovate (when appropriate) and maintain our homes to deliver a high-quality resident experience, while providing quarterly cash distributions and seeking long-term capital appreciation for our stockholders

The Company began operations on November 1, 2018 as a result of the acquisition of various partnerships and limited liability companies owned and operated by the VineBrook Contributors and other third parties, which owned 4,129 SFR assets located in Ohio, Kentucky and Indiana (the "Initial Portfolio") for a total purchase price of approximately $330.2 million, including closing and financing costs of $6.0 million (the "Formation Transaction"). On November 1, 2018, the Company accepted subscriptions for 1,097,367 shares of its Class A common stock, par value $0.01 ("Common Stock"), for gross proceeds of approximately $27.4 million in connection with the Formation Transaction. The proceeds from the issuance of Common Stock were used to acquire OP Units. The OP used the capital contribution from the Company to fund a portion of the purchase price for the Initial Portfolio. The remaining purchase price and closing costs were funded by a capital contribution totaling $70.7 million from NREO, $8.6 million of equity rolled over from VineBrook Contributors, and $241.4 million from a Federal Home Loan Mortgage Corporation ("Freddie Mac") mortgage (the "Initial Mortgage") provided by KeyBank N.A. ("KeyBank").

On August 28, 2018, the Company commenced the offering of 40,000,000 shares of Common Stock through a continuous private placement (the "Private Offering"), under Regulation D of the Securities Act of 1933, as amended (the "Securities Act") for a maximum of $1.0 billion of its Common Stock. The Private Offering closed on September 14, 2022. The initial offering price for shares of Common Stock sold through the Private Offering was $25.00 per share. The Company conducted periodic closings and sold Common Stock shares at the prior NAV per share as determined using the valuation methodology recommended by the Adviser and approved by the pricing committee (the "Pricing Committee") of the Board (the "Valuation Methodology"), plus applicable fees and commissions. The NAV per share is calculated on a fully diluted basis and is unaudited. NAV may differ from the values of our real estate assets as calculated in accordance with the generally accepted accounting principles in the United States ("GAAP").

Between November 1, 2018 and June 30, 2025, the Company, through special purpose limited liability companies ("SPEs") owned by the OP, purchased 20,827 additional homes and sold 4,507 homes within the VineBrook Portfolio (as defined below) (see Note 3), and through the OP's consolidated investment in NexPoint Homes (as defined in Note 2) purchased 2,573 additional homes and sold 470 homes. Together with the Initial Portfolio, the Company, through the OP's SPEs, indirectly owned an interest in 20,449 homes (the "VineBrook Portfolio") in 18 states, and with its consolidation of NexPoint Homes, indirectly owned an interest in an additional 2,103 homes (the "NexPoint Homes Portfolio"), for a total of 22,552 homes in 20 states as of June 30, 2025. We refer to the VineBrook Portfolio and the NexPoint Homes Portfolio collectively as our Portfolio. The acquisitions of the additional homes in the VineBrook Portfolio were funded by loans (see Note 5), proceeds from the sale of Common Stock and Preferred Stock (as defined below) and excess cash generated from operations.

The Company is externally managed by the Adviser through an agreement dated November 1, 2018, subsequently amended and restated on May 4, 2020, and further amended on October 25, 2022 and February 27, 2024 (the "Advisory Agreement"). The Advisory Agreement will automatically renew on the anniversary of the renewal date for one-year terms hereafter, unless otherwise terminated. The Adviser provides asset management services to the Company. Prior to the OP acquiring all of the outstanding equity interests of VineBrook Homes, LLC (the "Legacy VineBrook Manager"), which was completed on August 3, 2023 (the "Internalization"), the OP caused the SPEs to retain the Legacy VineBrook Manager, an affiliate of certain VineBrook Contributors, to renovate, lease, maintain, and operate the VineBrook properties under management agreements (as amended, the "Legacy VineBrook Management Agreements") that generally had an initial three-year term with one-year automatic renewals, unless otherwise terminated. The Legacy VineBrook Management Agreements were supplemented by a side letter (as amended and restated, the "Legacy VineBrook Side Letter") by and among the Company, the OP, the OP GP, the Legacy VineBrook Manager and certain of its affiliates. All of the Company's investment decisions were made by employees of the Company and Adviser, subject to general oversight by the OP's investment committee and the Company's board of directors (the "Board").

On June 10, 2025, the OP caused certain of its subsidiaries to enter into property management agreements (the "Management Agreements") with Evergreen Residential Management, LLC (the "Evergreen Manager") to renovate, lease, maintain, and generally operate the Company's properties within the VineBrook Portfolio. Pursuant to the Management Agreements, responsibility for the day-to-day management of the properties, leasing the properties, managing resident situations, collecting rents, paying operating expenses, managing maintenance issues, accounting for each property using GAAP and other responsibilities customary for the management of single-family rental properties will transition to the Evergreen Manager (the "Externalization") by the end of 2025. We refer to the date that the last property in the VineBrook Portfolio is transitioned to the Management Agreements as the "Transition Effective Date." On the Transition Effective Date, all of the Legacy VineBrook Management Agreements will have terminated. As a result of the Management Agreements, on the Transition Effective Date the VineBrook Portfolio will be externally managed by the Evergreen Manager. Under the Management Agreements, monthly in arrears, the Evergreen Manager is entitled to (1) a property management fee equal to 2.5% of collected rents, (2) a shared services agreement fee that shall not exceed the greater of 6.0% of collected rents and $75 per property, less any property management fee paid, (3) a major repair and maintenance fee of 10% of expenses for projects with an individual expense equal to or greater than $5,000 or an aggregate expense equal or greater than $10,000, subject to a maximum of $3,500, (4) new lease commissions equal to the greater of 40% of first-month's rent or $600, and (5) renewal lease commission equal to the greater of 40% of first-month's rent and $600. The Evergreen Manager is also entitled to other repair, maintenance, vacancy and turnover fees on a per property basis. The Management Agreements have an initial seven-year term with one-year automatic renewals, unless otherwise terminated. Either party may choose not to renew the Management Agreement at the end of any term by providing at least 90 days' prior notice and, if terminated by the Owner, with a payment to the Evergreen Manager equal to fees under the Management Agreement for 90 days after termination. Certain SPEs from time to time may have property management agreements with independent third parties. These are typically the result of maintaining legacy property managers after an acquisition to help transition the properties to the Company or, in the case of a future sale, to manage the properties until they are sold.

On June 10, 2025, the SPEs entered into asset management agreements (the "Asset Management Agreements") with Evergreen Asset Management, LLC (the "Asset Manager") to provide asset management, operation, accounting support, leasing, repair and turnover scope of work and property accounting services as well as disposition services. Under each Asset Management Agreement, the Asset Manager is entitled to an annual fee equal to 0.24% of the NAV of the properties subject to the Asset Management Agreement, to be paid monthly in arrears. The NAV of the properties subject to the Asset Management Agreement will be calculated by prorating the Company's NAV based on the value of those properties relative to the Company's overall NAV. In addition, the Asset Manager shall be reimbursed for all reasonable, documented out-of-pocket expenses incurred in performance of its services. The Asset Manager will also receive a disposition fee of 1.0%, payable at the closing of such sale, of the gross sales price for each property for which the Asset Manager provides disposition services.

On June 10, 2025, the OP and Evergreen Development Services, LLC (the "Service Provider") entered into a real estate development services agreement (the "Development Services Agreement") to provide for the identification, sourcing, inspection and acquisition of properties on behalf of the OP. Under the Development Services Agreement, the Service Provider is entitled to an acquisition fee of (1) 2.0% of the price paid to acquire the property if the acquired property is not part of a broadly marketed process, (2) 1.375% of the price paid to acquire the property if it is part of a broadly marketed process from a third party with structured bid timelines or (3) 0.75% of the price paid to acquire the property if the acquired property is acquired solely as a result of a non-broadly marketed process and neither Service Provider nor its affiliates received or accessed information regarding such property prior to the OP. In addition, the Service Provider is entitled to (1) a due diligence inspection fee of $450 for the completion of diligence on a target property, (2) a clean and secure fee for cleaning and secure services after a property is acquired of $450 per property and (3) a project administration services fee for project administration services prior to occupation of (A) $1,000 if related to new-build homes already completed upon closing that require make-ready repairs or (B) $3,500 if related to contracted forward home deliveries requiring project oversight for construction and punch list completion.

Also on June 10, 2025, the OP, the Evergreen Manager and the Service Provider entered into a letter agreement (the "Letter Agreement" and, together with the Property Management Agreements, the Asset Management Agreements and the Development Services Agreement, the "Externalization Agreements") to set forth certain agreements among the parties related to the Externalization, including certain termination rights and fees in the Management Agreements and the Development Services Agreement described above. Pursuant to the Letter Agreement, the OP will pay $1.75 million to the Evergreen Manager on the date the first property is transitioned to a Management Agreement and will pay an additional $1.75 million to the Evergreen Manager within 45 days after such date. In addition, the OP will issue Class C OP Units with a value of $5.0 million on the earlier of December 31, 2025 and the Transition Effective Date.

Additionally, the Service Provider is also entitled to a measurement period service fee for any measurement period in which the Service Provider presents the OP with qualified target properties with an aggregate fair market value of $600.0 million and the OP, directly or indirectly, fails to acquire properties with an aggregate purchase price of at least the lesser of $250.0 million and 41.7% of the aggregate fair value of the target properties presented during the measurement period (the lesser, the "Minimum Spend Amount"). The measurement period service fee ("Measurement Period Service Fee") for any measurement period is equal to 2% of the positive difference between the Minimum Spend Amount in the applicable measurement period and the aggregate purchase price for acquired properties during the applicable measurement period. If, during any measurement period, the OP, directly or indirectly, acquires properties with an aggregate purchase price over the minimum spend amount, such additional amount may be used to satisfy the Minimum Spend Amount in any subsequent measurement period. A measurement period is each consecutive 12-month period within the first 36 months after the date of the Development Services Agreement.

In connection with the Externalization, on June 10, 2025, the Company announced it has committed to a reduction in force involving approximately 500 employees, representing 100% of our full-time employees. These actions are part of a Company restructuring that is intended to externalize management of the VineBrook Portfolio and under which the Evergreen Manager intends to assume broad responsibility for the renovation, lease, maintenance, and operation of the VineBrook Portfolio. The Company expects to complete the reduction in force by the end of 2025. As part of this restructuring, the Evergreen Manager and its affiliates are currently in contact with certain employees about potential employment opportunities and may initiate contact with additional employees. Severance may be available to eligible employees if, among other things, they do not accept alternative employment prior to their designated end date. As of June 30, 2025, the Company has $3.8 million relating to separation benefits accrued, which is included within accounts payable and other accrued liabilities on the consolidated balance sheets. Additional separation benefits cannot be reasonably estimated at this time given the uncertainty of eligibility and whether eligible employees will receive severance. For the three and six months ended June 30, 2025, the Company incurred restructuring charges of $12.8 million included within general and administrative expenses on the consolidated statements of operations and comprehensive income (loss), of which $10.3 million was related to non-cash stock-based compensation expense due to accelerated vesting of awards from terminated employees (see Notes 7 and 8). The Company also incurred $2.0 million included within depreciation and amortization expense on the consolidated statements of operations and comprehensive income (loss) relating to the write off of certain internally developed software and also revised the estimated amortization for other internally developed software (see Note 2). There were no similar restructuring charges incurred during fiscal year 2024.

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**2. Summary of Significant Accounting Policies**

*Basis of Accounting and Use of Estimates*

Readers of this Form 10-Q should refer to the audited financial statements and notes to consolidated financial statements of the Company for the year ended December 31, 2024, which are included in our Annual Report, filed with the SEC on March 28, 2025, since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Summary of Significant Accounting Policies, in the notes to consolidated financial statements in our Annual Report for further discussion of our significant accounting policies and estimates.

The accompanying unaudited consolidated financial statements are presented in accordance with GAAP and the rules and regulations of the SEC. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates.

In the opinion of management, all adjustments and eliminations necessary for the fair presentation of the Company's financial position as of June 30, 2025 and December 31, 2024 and results of operations for the three and six months ended June 30, 2025 and 2024 have been included. The unaudited information included in these interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2024 and 2023 included in our Annual Report. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2025, or any other future period.

*Principles of Consolidation*

The Company accounts for subsidiary partnerships, limited liability companies, joint ventures and other similar entities in which it holds an ownership interest in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, *Consolidation*. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. If the Company determines the entity is not a VIE, it evaluates whether the entity should be consolidated under the voting model. The Company consolidates an entity when it controls the entity through ownership of a majority voting interest. As of June 30, 2025, the Company determined it must consolidate the OP, its subsidiaries and the OP's investment in NexPoint Homes Trust, Inc. ("NexPoint Homes") (see Note 4) under the VIE model as it was determined the Company both controls the direct activities of the OP and its investments, including NexPoint Homes, and has the right to receive benefits that could potentially be significant to the OP, its subsidiaries and its investment in NexPoint Homes. The Company has control to direct the activities of the OP and its subsidiaries because the OP GP is a wholly-owned subsidiary of the Company and the Company determined it was the party most closely associated with the OP. The Company has control to direct the activities of NexPoint Homes because the OP owns approximately 83% of the outstanding equity of NexPoint Homes and the parties that beneficially own over 99% of the operating partnership of NexPoint Homes are related parties to the Company as of June 30, 2025. The Company will continue to evaluate whether the NexPoint Homes entity is a VIE and if the Company is the primary beneficiary of the VIE and should consolidate the NexPoint Homes entity. The consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP, its subsidiaries, and NexPoint Homes. All significant intercompany accounts and transactions have been eliminated in consolidation. OP Units and equity interests in consolidated VIEs that are not owned by the Company are presented as noncontrolling interests in the consolidated financial statements, and income or loss generated is allocated between the Company and the noncontrolling interests based upon their relative ownership percentages. In these consolidated financial statements, redeemable noncontrolling interests in the OP are exclusive of any interests in NexPoint Homes and its SFR OP (as defined in Note 4). Noncontrolling interests in consolidated VIEs are representative of interests in NexPoint Homes and redeemable noncontrolling interests in consolidated VIEs are representative of interests in the SFR OP (as defined in Note 4).

*Real Estate Investments*

Upon acquisition, we evaluate our acquired SFR properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Since substantially all of the fair value of our acquired properties is concentrated in a single identifiable asset or group of similar identifiable assets and the acquisitions do not include a substantive process, our purchases of homes or portfolios of homes qualify as asset acquisitions. Accordingly, upon acquisition of a property, the purchase price and related acquisition costs ("Total Consideration") are allocated to land, buildings, improvements, fixtures, and intangible lease assets based upon their relative fair values.

The allocation of Total Consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, *Fair Value Measurement* ("ASC 820") (see Note 6), is based on an independent third-party valuation firm's estimate of the fair value of the tangible and intangible assets and liabilities acquired or management's internal analysis based on market knowledge obtained from historical transactions. The valuation methodology utilizes market comparable information, depreciated replacement cost and other estimates in allocating value to the tangible assets. The allocation of the Total Consideration to intangible lease assets represents the value associated with the in-place leases, as one month's worth of effective gross income (rental revenue, less credit loss allowance, plus other income) as the average downtime of the assets in the portfolio is approximately one month and the assets in the portfolio are leased on a gross rental structure. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized or accreted as interest expense over the life of the debt assumed.

Real estate assets, including land, buildings, improvements, fixtures, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Expenditures for improvements, renovations, and replacements are capitalized at cost. The Company also incurs indirect costs to prepare acquired properties for rental. These costs are capitalized to the cost of the property during the period the property is undergoing activities to prepare it for its intended use. We capitalize interest, real estate taxes, insurance, utilities and other indirect costs as costs of the property only during the period for which activities necessary to prepare an asset for its intended use are ongoing, provided that expenditures for the asset have been made and the costs have been incurred. Upon completion of the renovation of our properties, all costs of operations, including repairs and maintenance, are expensed as incurred, unless the renovation meets the Company's capitalization criteria. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table:

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| | |
|:---|:---|
| Land | Not depreciated |
| Buildings | 27.5 years |
| Improvements and other assets | 2.5 - 15 years |
| Acquired improvements and fixtures | 1 - 8 years |
| Intangible lease assets | 6 months |

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As of June 30, 2025, the gross balance and accumulated amortization related to the intangible lease assets was $0.1 million and zero, respectively. As of December 31, 2024, the gross balance and accumulated amortization related to the intangible lease assets were both zero. For each of the three months ended June 30, 2025 and 2024, the Company recognized zero amortization expense related to the intangible lease assets which would be included in depreciation and amortization expense on the consolidated statements of operations and comprehensive income (loss). For each of the six months ended June 30, 2025 and 2024, the Company recognized zero amortization expense related to the intangible lease assets which would be included in depreciation and amortization expense on the consolidated statements of operations and comprehensive income (loss).

Real estate assets are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Significant indicators of impairment may include, but are not limited to, declines in home values and rental rates, changes in hold periods and occupancy percentages, as well as significant changes in the economy. In such cases, the Company will evaluate the recoverability of the assets by comparing the estimated future cash flows expected to result from the use and eventual disposition of each asset to its carrying amount and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount. If impaired, the real estate asset will be written down to its estimated fair value. The process whereby we assess our single-family rental homes for impairment requires significant judgment and assessment of factors that are, at times, subject to significant uncertainty. For the three months ended June 30, 2025 and 2024, the Company recorded approximately $3.9 million and $4.4 million, respectively, of impairment charges on real estate assets, mostly related to assets that were held for sale, which are included in Gain (loss) on sales and impairment of real estate, net on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2025 and 2024, the Company recorded approximately $8.4 million and $8.7 million, respectively, of impairment charges on real estate assets, mostly related to assets that were held for sale, which are included in Gain (loss) on sales and impairment of real estate, net on the consolidated statements of operations and comprehensive income (loss). During the three months ended June 30, 2025 and 2024, zero impairments on operating properties not held for sale were recorded, respectively, which are included in Gain (loss) on sales and impairment of real estate, net on the consolidated statements of operations and comprehensive income (loss). During the six months ended June 30, 2025 and 2024, $1.0 million and zero of impairments on operating properties not held for sale were recorded, respectively, which are included in Gain (loss) on sales and impairment of real estate, net on the consolidated statements of operations and comprehensive income (loss).

Intangible assets primarily include internally developed software and are amortized on a straight-line basis over the estimated useful lives as described in the following table:

Internally developed software 5 years

In connection with the Externalization, the Company re-assessed the useful life and service potential of the intangible assets. As of June 30, 2025, the remaining net carrying amount of the intangible IT platform asset acquired related to the Internalization of the Legacy VineBrook Manager was $1.9 million, and is included within Intangible assets, net on the consolidated balance sheet. The IT platform is currently still in use and is expected to be utilized until the Externalization is complete at the end of the fiscal year. The Company has determined to shorten the remaining useful life of the previously acquired IT platform intangible asset, and accelerate the remaining amortization through December 31, 2025, which will be included in depreciation and amortization expense on the consolidated statements of operations and comprehensive income (loss). During the three months ended June 30, 2025, the Company determined that $2.0 million of previously capitalized internal software was still in development and would not have any future use, and therefore immediately wrote off the balance in full. The $2.0 million write off is included within depreciation and amortization expense on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2025. As of June 30, 2025, the remaining net carrying amount of the intangible assets internally developed and still in use was $1.4 million, and is included within Intangible assets, net on the consolidated balance sheet. The software is expected to have existing service potential through the end of the fiscal year, aligning with the complete execution of the Externalization. The Company has revised the estimated amortization over the remaining useful life through December 31, 2025, which will be included in depreciation and amortization expense on the consolidated statements of operations and comprehensive income (loss).

Intangible assets subject to amortization are reviewed for impairment, wherein an impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. No impairment losses on intangible assets have been recognized for the three and six months ended June 30, 2025 and 2024.

*Goodwill*

Goodwill has an indefinite life and therefore is not amortized under the provisions of *ASC 350, Intangibles – Goodwill and Other*. Goodwill is tested at least annually for impairment to ensure that the carrying amount of goodwill exceeds its implied fair value. We assess goodwill for impairment annually on October 1<sup>st</sup>, or more frequently if there are indicators of impairment. We completed the annual impairment testing on October 1, 2024 and determined there was no impairment of goodwill. No impairment losses on goodwill have been recognized for the three and six months ended June 30, 2025 and 2024.

*Held to Maturity Investments*

Investments in debt securities that we have a positive intent and ability to hold to maturity are classified as held to maturity and are presented within asset-backed securitization certificates on our consolidated balance sheets. These investments are recorded at amortized cost. Interest income, including amortization of any premium or discount, is classified as investment income in the consolidated statements of operations.

In connection with the Company's asset backed securitization transactions (as discussed in Note 5), we have retained and purchased certificates totaling approximately $79.0 million. These investments in debt securities are classified as held to maturity investments, and our retained certificates are scheduled to mature over the next four years. For the three and six months ended June 30, 2025 and 2024, we have not recognized any credit losses with respect to these investments in debt securities.

*Cash and Restricted Cash*

The Company maintains cash at multiple financial institutions and, at times, these balances exceed federally insurable limits. As a result, there is a concentration of credit risk related to amounts on deposit. We believe any risks are mitigated through the size of the financial institutions at which our cash balances are held.

Restricted cash represents cash deposited in accounts related to security deposits, property taxes, insurance premiums, deductibles and other lender-required escrows. Amounts deposited in the reserve accounts associated with the loans can only be used as provided for in the respective loan agreements, and security deposits held pursuant to lease agreements are required to be segregated.

The following table provides a reconciliation of cash and restricted cash reported on the consolidated balance sheets that sum to the total of such amount shown in the consolidated statements of cash flows (in thousands):

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| | | |
|:---|:---|:---|
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Cash | $24524 | $43913 |
| Restricted cash | 53109 | 50931 |
| &nbsp;&nbsp;&nbsp;Total cash and restricted cash | $77633 | $94844 |

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*Reclassification of Prior Year Activity on the Consolidated Statements of Cash Flows*

Certain reclassifications have been made within the consolidated statements of cash flows to the non-cash interest amortization, net cash received on derivative settlements, and the changes in operating assets and liabilities, net of effects of sales and acquisitions for the six months ended June 30, 2024 to be comparative to the consolidated statement of cash flows for the six months ended June 30, 2025.

*Revenue Recognition*

The Company's primary operations consist of rental income earned from its residents under lease agreements typically with terms of one year or less. In accordance with ASC 842, *Leases*, the Company classifies the SFR property leases as operating leases and elects to not separate the lease component, comprised of rents from SFR properties, from the associated non-lease component, comprised of fees from SFR properties and resident charge-backs. The combined component is accounted for under the lease accounting standard while certain resident reimbursements are accounted for as variable payments under the revenue accounting guidance. Rental income is recognized when earned. This policy effectively results in income recognition on a straight-line basis over the related terms of the leases. Resident reimbursements and other income consist of charges billed to residents for utilities, resident-caused damages, pets, and administrative, application and other fees and are recognized when earned. Historically, the Company has used a direct write-off method for uncollectible rents; wherein uncollectible rents are netted against rental income. For the three months ended June 30, 2025 and 2024, rental income includes $3.8 million and $4.0 million of variable lease payments, respectively. For the six months ended June 30, 2025 and 2024, rental income includes $8.2 million and $7.8 million of variable lease payments, respectively.

Gains on sales of properties are recognized pursuant to the provisions included in ASC 610-20, Other Income. We recognize a full gain on sale when the derecognition criteria under ASC 610-20 have been met, which is included in gain (loss) on sales and impairment of real estate on the consolidated statements of operations and comprehensive income (loss).

*Redeemable Securities*

Included in the Company's consolidated balance sheets are redeemable noncontrolling interests in the OP, redeemable noncontrolling interests in consolidated VIEs, and 6.50% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock"). These interests are presented in the "mezzanine" section of the consolidated balance sheets because they do not meet the functional definition of a liability or permanent equity under current accounting literature. The Company accounts for these under the provisions of ASC Topic 480-10-S99-3A, paragraph 15(b).

In accordance with ASC Topic 480-10-S99, since the redeemable noncontrolling interests in the OP and redeemable noncontrolling interests in consolidated VIEs have a redemption feature, they are measured at their redemption value if such value exceeds the carrying value of interests. The redemption value is based on the NAV per unit at the measurement date. The offset to the adjustment to the carrying amount of the redeemable noncontrolling interests in the OP and redeemable noncontrolling interests in consolidated VIEs is reflected in the Company's additional paid-in capital on the consolidated balance sheets. In accordance with ASC Topic 480-10-S99, the Series A Preferred Stock is measured at its carrying value plus the accretion to its future redemption value on the balance sheet. The accretion is reflected in the Company's dividends on and accretion to redemption value of Series A Redeemable Preferred stock on the consolidated statements of operations and comprehensive income (loss).

*Segment Reporting*

We adopted Accounting Standards Update ("ASU") ASU 2023-07, *Segment Reporting – Improvements to Reportable Segment Disclosures* ("ASU 2023-07"), which requires a public entity to disclose significant segment expenses and other segment items in interim and annual periods and expands the GAAP disclosure requirements for interim periods. ASU 2023-07 also explicitly requires public entities with a single reportable segment to provide all segment disclosures under GAAP. The Company identifies and discloses its reporting segment(s) in accordance with ASC 280, *Segment Reporting*. In applying this guidance, the Company first identifies its operating segment(s) from the component(s) where: (1) it engages in business activities from which it may recognize revenue and incur expenses, (2) its operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and (3) its discrete financial information is available. Reportable segments are generally those operating segments that meet certain quantitative thresholds. The Company has determined it has two reportable segments: the VineBrook Portfolio and the NexPoint Homes Portfolio.

*Recent Accounting Pronouncements*

In March 2024, the FASB issued ASU 2024-01, *Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards* ("ASU 2024-01"), to clarify the scope application of profits interest and similar awards by adding illustrative guidance in ASC 718, *Compensation-Stock Compensation* ("ASC 718"). ASU 2024-01 clarifies how to determine whether profits interest and similar awards should be accounted for as a share-based payment arrangement (ASC 718) or as a cash bonus or profit-sharing arrangement (ASC 710, *Compensation-General*, or other guidance) and applies to all reporting entities that account for profits interest awards as compensation to employees or non-employees. In addition to adding the illustrative guidance, ASU 2024-01 modified the language in paragraph 718-10-15-3 to improve its clarity and operability without changing the guidance. ASU 2024-01 is effective for fiscal years beginning after December 15, 2024, including interim periods within those annual periods. Early adoption is permitted. The amendments should be applied either retrospectively to all prior periods presented in the financial statements, or prospectively to profits interests and similar awards granted or modified on or after the adoption date. The adoption of ASU 2024-01, beginning on January 1, 2025, did not have an impact on the consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, *Disaggregation of Income Statement Expenses* ("ASU 2024-03"). ASU 2024-03 requires disclosures of disaggregated information about certain income statement expense line items on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and should be applied prospectively, with the option to apply retrospectively. The Company is currently evaluating the impact of adopting the amendments on its disclosures.

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**3. Real Estate Investments**

As of June 30, 2025, the Company, through the OP and its SPE subsidiaries, owned 22,552 homes, including 20,449 homes in the VineBrook Portfolio and 2,103 homes in the NexPoint Homes Portfolio. As of December 31, 2024, the Company through the OP and its SPE subsidiaries, owned 23,051 homes, including 20,804 homes in the VineBrook Portfolio and 2,247 homes in the NexPoint Homes Portfolio. The components of the Company's real estate investments in homes were as follows (in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Land** | **Buildings and improvements (1)** | | **Intangible lease assets** | **Real estate held for sale, net** | **Total gross real estate** | **Accumulated depreciation and amortization** | |
| Real Estate Balances, December 31, 2024 | $527422 | $2739977 |  | $— | $55592 | $3322991 | $(373964) |  |
| Additions (2) | 1523 | 38922 | (3) | 143 | 2555 | 43143 | (57549) | (4) |
| Transfers to held for sale | (14776) | (71961) |  |  | 77156 | (9581) | 9581 |  |
| Reclasses | 121 | 495 |  |  | (1773) | (1157) | (65) |  |
| Write-offs | (40) | (370) |  |  |  | (410) |  |  |
| Dispositions | (754) | (4668) |  |  | (71679) | (77101) | 444 |  |
| Impairment |  | (995) |  |  | (7431) | (8426) |  |  |
| Real Estate Balances, June 30, 2025 | $513496 | $2701400 |  | $143 | $54420 | $3269459 | $(421553) |  |

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(1)Includes capitalized interest, real estate taxes, insurance and other costs incurred during rehabilitation of the properties.

(2)Includes acquisition additions of approximately $1.3 million in land, $17.1 million in buildings and improvements, and $0.1 million in intangible assets related to property acquisitions.

(3)Includes capitalized interest of approximately $0.2 million and other capitalizable costs outlined in (1) above of approximately $0.3 million.

(4)Accumulated depreciation and amortization activity excludes approximately $4.6 million of depreciation and amortization related to assets not classified as real estate investments.

During the three months ended June 30, 2025 and 2024, the Company recognized depreciation expense of approximately $29.2 million and $31.0 million, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized depreciation expense of approximately $58.7 million and $62.7 million, respectively.

*Real estate acquisitions and dispositions*

During the three months ended June 30, 2025 and 2024, the Company acquired 77 and zero additional homes within the VineBrook Portfolio, respectively. During the six months ended June 30, 2025 and 2024, the Company acquired 77 and zero additional homes within the VineBrook Portfolio, respectively. During both the three months ended June 30, 2025 and 2024, the Company acquired zero additional homes within the NexPoint Homes Portfolio. During both the six months ended June 30, 2025 and 2024, the Company acquired zero additional homes within the NexPoint Homes Portfolio. See Note 4 for additional information about NexPoint Homes.

During the three months ended June 30, 2025 and 2024, the Company, through the OP, disposed of 229 and 201 homes within the VineBrook Portfolio, respectively. During the six months ended June 30, 2025 and 2024, the Company, through the OP, disposed of 432 and 739 homes within the VineBrook Portfolio, respectively. During the three months ended June 30, 2025 and 2024, the Company, through its consolidated investment in NexPoint Homes, disposed of 48 and 79 homes, respectively. During the six months ended June 30, 2025 and 2024, the Company, through its consolidated investment in NexPoint Homes, disposed of 144 and 83 homes, respectively. The Company strategically identified those homes for disposal and expects the disposal of these properties to be accretive to the Portfolio's results of operations and overall performance.

*Held for sale properties*

The Company periodically classifies real estate assets as held for sale when the held for sale criteria is met in accordance with GAAP. At that time, the Company presents the net real estate assets separately in its consolidated balance sheet, and the Company ceases recording depreciation and amortization expense related to that property. Real estate held for sale is reported at the lower of its carrying amount or its estimated fair value less estimated costs to sell. For the three months ended June 30, 2025 and 2024, the Company recorded approximately $3.5 million and $4.4 million of impairment charges on real estate assets held for sale, respectively. The impairment charges recorded include approximately $0.4 million and $0.4 million of casualty related impairment for the three months ended June 30, 2025 and 2024, respectively, and are included in Gain (loss) on sales and impairment of real estate, net on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2025 and 2024, the Company recorded approximately $7.7 million and $8.7 million of impairment charges on real estate assets held for sale, respectively. The impairment charges recorded include approximately $0.7 million and $0.9 million of casualty related impairment for the six months ended June 30, 2025 and 2024, respectively, and are included in Gain (loss) on sales and impairment of real estate, net on the consolidated statements of operations and comprehensive income (loss). As of June 30, 2025 and 2024, there were 404 and 257 homes that were classified as held for sale, respectively. These held for sale properties had a carrying amount of approximately $54.4 million and $38.1 million, respectively. As of June 30, 2025 and 2024, the total impairment charges on these held for sale properties was approximately $7.4 million and $9.6 million, respectively.

*Hurricane Helene*

During September 2024, Hurricane Helene hit the southeastern seaboard of the United States, generally affecting Florida, Georgia, South Carolina, North Carolina, Virginia and Tennessee. In total, over 800 properties in the VineBrook Portfolio were impacted by Hurricane Helene across the following ten markets: Augusta, Cincinnati, Columbia, Atlanta, Triad, Huntsville, Indianapolis, Greenville, Dayton and Montgomery. The NexPoint Homes Portfolio saw minimal damage related to Hurricane Helene as it only affected 12 homes in the NexPoint Homes Portfolio. As of June 30, 2025, all markets impacted by Hurricane Helene have had repairs completed, with the exception of Augusta, which was still undergoing rehab work. For the three and six months ended June 30, 2025, there were no impairment charges recorded due to property damage related to Hurricane Helene. For the three and six months ended June 30, 2025, there was a $2.3 million gain on insurance repairs recorded. Total insurance recoveries were $6.2 million, of which $6.2 million has been received as of June 30, 2025. These amounts are included in the Gain (loss) on sales and impairment of real estate, net, on the consolidated statements of operations and comprehensive income (loss).

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**4. NexPoint Homes Investment**

Substantially all of NexPoint Homes' business is conducted through NexPoint SFR Operating Partnership, L.P. (the "SFR OP"), the operating partnership of NexPoint Homes.

On September 19, 2024, certain subsidiaries of the SFR OP entered into property management agreements with Mynd Management, Inc. ("Mynd") to manage the NexPoint Homes Portfolio (the "Mynd Management Agreements"). Mynd is now responsible for the day-to-day management of the NexPoint Homes Portfolio, paying operating expenses, managing maintenance issues, accounting for each property using GAAP, overseeing third-party property managers and other responsibilities customary for the management of SFR properties. Under the Mynd Management Agreements, Mynd is entitled to a property management fee, an asset management services fee, a disposition fee and a construction management fee, in addition to leasing, onboarding and certain inspection fees. The fees are generally paid monthly in arrears. Mynd is not a related party of the Company.

During the three months ended June 30, 2025, $1.0 million in fees were earned by Mynd in connection with the Mynd Management Agreements. Related to the fees earned by Mynd, $0.6 million and $0.4 million were expensed and included within property management fees and general and administrative expenses, respectively, on the consolidated statements of operations and comprehensive income (loss) for the three months ended June 30, 2025, and no fees were capitalized to the property basis based on the nature of the fee for the three months ended June 30, 2025.

During the six months ended June 30, 2025, $2.0 million in fees were earned by Mynd in connection with the Mynd Management Agreements. Related to the fees earned by Mynd, $1.2 million and $0.8 million were expensed and included within property management fees and general and administrative expenses, respectively, on the consolidated statements of operations and comprehensive income (loss) for the six months ended June 30, 2025, and no fees were capitalized to the property basis based on the nature of the fee for the six months ended June 30, 2025.

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**5. Debt**

As of June 30, 2025, the VineBrook Portfolio had approximately $2.0 billion of debt outstanding, and the NexPoint Homes Portfolio had $518.0 million of debt outstanding. The following table contains summary information of the Company's debt as of June 30, 2025 and December 31, 2024 (dollars in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Outstanding Principal as of** | **Outstanding Principal as of** | | | |
| | **Type** | **June 30, 2025** | **December 31, 2024** | **Interest Rate (1)** | **Maturity** | |
| Warehouse Facility | Floating | $441795 | $457183 | 7.32% | 11/3/2025 |  |
| JPM Facility | Floating | 96089 | 97350 | 7.30% | 10/31/2025 | (2) |
| JPM Acquisition Facility | Floating | 13710 |  | 6.67% | 7/9/2027 |  |
| ABS I Loan | Fixed | 380574 | 389274 | 4.92% | 12/8/2028 |  |
| ABS II Loan | Fixed | 399149 | 402334 | 4.65% | 3/9/2029 |  |
| MetLife Note | Fixed | 101723 | 104312 | 3.25% | 1/31/2026 |  |
| MetLife Term Loan I | Fixed | 328352 | 340099 | 4.50% | 8/22/2029 |  |
| MetLife Term Loan II | Fixed | 247942 | 249899 | 4.75% | 11/4/2029 |  |
| OSL Loan | Fixed | 15000 |  | 9.00% | 2/25/2027 |  |
| TrueLane Mortgage | Fixed | 7730 | 8165 | 5.35% | 2/1/2028 |  |
| Crestcore II Note | Fixed | 2494 | 2574 | 5.12% | 7/9/2029 |  |
| Crestcore IV Note | Fixed | 2367 | 2391 | 5.12% | 7/9/2029 |  |
| Total VineBrook Portfolio debt |  | $2036925 | $2053581 |  |  |  |
| NexPoint Homes MetLife Note 1 | Fixed | 236870 | 237173 | 3.73% | 3/3/2027 |  |
| NexPoint Homes MetLife Note 2 | Fixed | 174354 | 174590 | 5.44% | 8/12/2027 |  |
| NexPoint Homes OSL Note | Fixed | 9767 |  | 9.75% | 5/15/2026 |  |
| SFR OP Note Payable I | Fixed |  | 500 | 8.80% | 4/25/2025 |  |
| SFR OP Note Payable II | Fixed |  | 500 | 12.50% | 3/31/2025 |  |
| SFR OP Note Payable III | Fixed | 1564 | 3500 | 15.00% | 7/10/2026 | (3) |
| SFR OP Convertible Notes | Fixed | 95457 | 102557 | 7.50% | 6/30/2027 |  |
| Total NexPoint Homes Portfolio debt |  | $518012 | $518820 |  |  |  |
| Total debt |  | $2554937 | $2572401 |  |  |  |
| Debt premium, net (4) |  | 198 | 234 |  |  |  |
| Debt discount, net (5) |  | (80012) | (89128) |  |  |  |
| Deferred financing costs, net of accumulated amortization of $35,417 and $32,110, respectively |  | (33685) | (35620) |  |  |  |
|  |  | $2441438 | $2447887 |  |  |  |

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(1)Represents the interest rate as of June 30, 2025. Except for fixed rate debt, the interest rate is 30-day average Secured Overnight Financing Rate ("SOFR"), daily SOFR or one-month term SOFR, plus an applicable margin. The 30-day average SOFR as of June 30, 2025 was 4.3190%, daily SOFR as of June 30, 2025 was 4.4500% and one-month term SOFR as of June 30, 2025 was 4.3220%.

(2)Subsequent to June 30, 2025, the JPM Facility (as defined below) was amended (see Note 14). This is the modified maturity date for the JPM Facility.

(3)Subsequent to June 30, 2025, the SFR OP Note Payable III (as defined below) was amended (see Note 14). This is the modified maturity date for the SFR OP Note Payable III.

(4)The Company reflected valuation adjustments on its assumed fixed rate debt to adjust it to fair market value on the dates of acquisition for the difference between the fair value and the assumed principal amount of debt. The difference is amortized into interest expense over the remaining terms of the debt.

(5)The Company reflected a discount on ABS I Loan, ABS II Loan, MetLife Term Loan I Facilities and MetLife Term Loan II Facility (as defined below), which is amortized into interest expense over the remaining term of the debt.

Additionally, we have included a summary of debt agreements and significant changes to the agreements during the six months ended June 30, 2025 below.

*JPM Facility*

On March 1, 2021, the Company entered into a non-recourse carveout guaranty and certain wholly owned subsidiaries of VB Three, LLC (as borrowers) entered into a $500.0 million credit agreement with JP Morgan (the "JPM Facility"). The JPM Facility is secured by equity pledges in VB Three, LLC and its wholly owned subsidiaries and bore interest at a variable rate equal to one-month London Interbank Offered Rate ("LIBOR") plus 2.75%. The JPM Facility is interest-only and was due in full on March 1, 2023. On March 10, 2022, the Company entered into Amendment No. 1 to the JPM Facility, wherein each advance under the JPM Facility will bear interest at the daily SOFR plus 2.85%. On January 31, 2023, the Company entered into Amendment No. 2 to the JPM Facility, wherein the total facility amount was updated to $350.0 million, and the maturity date was extended to January 31, 2025, which may be extended for 12 months upon submission of an extension request, subject to approval. On March 15, 2023, the Company entered into Amendment No. 3 to the JPM Facility to give the Company credit for pledging an interest rate cap by reducing the interest reserve requirements under the JPM Facility based on the capped rate. On December 26, 2024, the Company entered into Amendment No. 4 to the JPM Facility, wherein the maturity date was extended to April 30, 2025. On April 24, 2025, the Company entered into Amendment No. 5 to the JPM Facility, wherein the maturity date was extended to July 31, 2025. On July 28, 2025, the Company entered into Amendment No. 6 to the JPM Facility, wherein the maturity date was extended to October 31, 2025, and the commitment was reduced to the amount equal to the advances outstanding as of the Amendment No. 6 effective date and all repayments will permanently reduce the commitment.

During the six months ended June 30, 2025, the Company paid down approximately $1.3 million on the JPM Facility. The outstanding balance on the JPM Facility as of June 30, 2025, is approximately $96.1 million. The balance of the JPM Facility, net of unamortized deferred financing costs, is included in credit facilities on the consolidated balance sheets.

*JPM Acquisition Facility*

On June 25, 2025, VB Twelve, LLC, an indirect subsidiary of the Company, entered into a loan and security agreement with JPMorgan Chase Bank, National Association, as lender, providing for an uncommitted facility for up to $500.0 million (the "JPM Acquisition Facility"). The JPM Acquisition Facility bears interest at the greater of (i) one-month term SOFR or (ii) 3.00% plus 2.35% per annum. The JPM Acquisition Facility is interest-only and matures on July 9, 2027 with a one-year extension option subject to meeting certain criteria, payment of an extension fee and increases in the interest rate spread. The outstanding balance on the JPM Acquisition Facility as of June 30, 2025 is approximately $13.7 million. The JPM Acquisition Facility, net of unamortized deferred financing costs, is included in notes payable on the consolidated balance sheets.

*MetLife Note*

On January 26, 2021, the Company (as guarantor) and VB Two, LLC (as borrower) entered into a $125.0 million note with Metropolitan Life Insurance (the "MetLife Note"). The MetLife Note is secured by equity pledges in VB Two, LLC and its wholly owned subsidiaries and bears interest at a fixed rate of 3.25%. The MetLife Note is interest-only and matures and is due in full on January 31, 2026. The outstanding balance on the MetLife Note as of June 30, 2025 is approximately $101.7 million. The MetLife Note, net of unamortized deferred financing costs, is included in notes payable on the consolidated balance sheets.

*Asset Backed Securitization I*

On December 6, 2023, the OP completed an asset backed securitization ("ABS") transaction, in connection with which VineBrook Homes Borrower 1, LLC, an indirect special purpose subsidiary of the OP (the "ABS I Borrower") entered into a loan agreement (the "ABS I Loan Agreement") with Bank of America, National Association, as lender (the "ABS I Lender"), providing for a 5-year, fixed-rate, interest-only loan with a total principal balance of $392.2 million (the "ABS I Loan").

Concurrent with the execution of the ABS I Loan Agreement, the ABS I Lender sold the ABS I Loan to VineBrook Homes Depositor A, LLC (the "Depositor"), an indirect subsidiary of the OP, which, in turn, transferred the ABS I Loan to a trust in exchange for (i) $178.4 million principal amount of Class A pass-through certificates (the "Class A Certificates"),

(ii) $38.6 million principal amount of Class B pass-through certificates (the "Class B Certificates"), (iii) $30.8 million principal amount of Class C pass-through certificates (the "Class C Certificates"), (iv) $43.0 million principal amount of Class D pass-through certificates (the "Class D Certificates"), (v) $50.1 million principal amount of Class E pass-through certificates (the "Class E1 Certificates"), (vi) $12.2 million principal amount of Class E pass-through certificates (the "Class E2 Certificates," and collectively with the Class A Certificates, Class B Certificates, Class C Certificates, Class D Certificates and Class E1 Certificates, the "Regular Certificates"), and (vii) $39.1 million Class R pass-through certificates (the "Class R Certificates," and together with the Regular Certificates, the "Certificates"). The Certificates represent beneficial ownership interests in the trust and its assets, including the ABS I Loan.

The Depositor sold the Certificates, acquired by the Depositor in the manner described above, to placement agents who resold the Certificates to investors in a private offering. The Regular Certificates are exempt from registration under the Securities Act and are "exempted securities" under the Securities Exchange Act of 1934 (the "Exchange Act"). To satisfy applicable risk retention rules, the OP completed a securitization transaction, VINE 2023-SFR1, providing for a 5-year, fixed-rate, interest-only loan of Class F certificates ("Class F Certificates") with a total principal amount of $39.1 million. The Company evaluated the purchased Class F Certificates as a variable interest in the trust and concluded that the Class F Certificates do not provide the Company with an ability to direct activities that could impact the trust's economic performance. The Company does not consolidate the trust and the $39.1 million of purchased Class F Certificates are reflected as asset-backed securitization certificates in the Company's consolidated balance sheets. The Depositor used the proceeds from the sale of the Certificates to purchase the ABS I Loan from the ABS I Lender, as described above. The Regular Certificates were sold to investors at a discount and the OP retained the Class F Certificate (as described above), with the result that the proceeds, before closing costs, from the ABS I Loan to the ABS I Borrower were approximately $314.0 million. The net proceeds of $300.6 million were used to partially pay down the Warehouse Facility.

The balance of the ABS I Loan, net of unamortized deferred financing costs and debt discount, is included in notes payable on the consolidated balance sheets. The ABS I Loan is collateralized by 2,711 single family rental homes, and as of June 30, 2025, approximately 12.02% of the Portfolio served as collateral for outstanding borrowings under the ABS I Loan. The ABS I Loan, is segregated into six tranches, all of which accrue interest at 4.9235% and have a maturity date of December 8, 2028.

*Asset Backed Securitization II*

On February 29, 2024, the OP, via its indirect special purpose subsidiary, VineBrook Homes Borrower 2, LLC (the "ABS II Borrower"), completed an asset backed securitization ("ABS II") and entered into a loan agreement (the "ABS II Loan Agreement") with BofA Securities, Inc., as sole structuring agent, joint bookrunner and co-lead manager, Mizuho Securities USA LLC, as joint bookrunner and co-lead manager and Citizens JMP Securities, LLC, J.P. Morgan Securities LLC, Raymond James & Associates, Inc., and Truist Securities, Inc., as co-managers (the "ABS II Loan").

Concurrent with the execution of the ABS II Loan Agreement, the lender sold the ABS II Loan to the Depositor, an indirect subsidiary of the OP, which, in turn, transferred the loan to a trust in exchange for (i) $176.9 million principal amount of Class A pass-through certificates (the "ABS II Class A Certificates"), (ii) $38.6 million principal amount of Class B pass-through certificates (the "ABS II Class B Certificates"), (iii) $30.6 million principal amount of Class C pass-through certificates (the "ABS II Class C Certificates"), (iv) $42.9 million principal amount of Class D pass-through certificates (the "ABS II Class D Certificates"), (v) $63.5 million principal amount of Class E pass-through certificates (the "ABS II Class E1 Certificates"), (vi) $11.2 million principal amount of Class E pass-through certificates (the "ABS II Class E2 Certificates," and collectively with the ABS II Class A Certificates, ABS II Class B Certificates, ABS II Class C Certificates, ABS II Class D Certificates and ABS II Class E1 Certificates, the "ABS II Regular Certificates"), and (vii) $39.9 million ABS II Class R pass-through certificates (the "ABS II Class R Certificates," and together with the ABS II Regular Certificates, the "ABS II Certificates"). Initially, the OP retained $19.5 million of the ABS II Class A Certificates, $10.5 million of the ABS II Class B Certificates, and $2.0 million of the ABS II Class C Certificates. On July 11, 2024, the OP sold $10.5 million of the ABS II Class B Certificates. On July 24, 2024, the OP sold $19.5 million of the ABS II Class A Certificates. On September 25, 2024, the OP sold $2.0 million of the ABS II Class C Certificates.

The Depositor sold the ABS II Certificates, acquired by the Depositor in the manner described above, to placement agents who resold the Certificates to investors in a private offering. The ABS II Regular Certificates are exempt from registration under the Securities Act and are "exempted securities" under the Exchange Act. To satisfy applicable risk retention rules, the OP purchased and retained the ABS II Class F component, totaling $39.9 million. Additionally, the OP purchased and retained a portion of the ABS II Class A, Class B and Class C components, totaling $19.5 million, $10.5 million and $2.0 million, respectively. The Company evaluated the purchased ABS II Class A, Class B, Class C and Class F certificates as a variable interest in the trust and concluded that the ABS II Class A, Class B, Class C and Class F certificates do not provide the Company with an ability to direct activities that could impact the trust's economic performance. The Company does not consolidate the trust and the remaining $39.9 million of the ABS II Certificates are reflected as asset-backed securitization certificates on the Company's consolidated balance sheets. For the retained ABS II Class F certificate, the Company determined to classify the debt security as a held to maturity investment (see Note 2). The Depositor used the proceeds from the sale of the ABS II Certificates to purchase the ABS II Loan from the lender, as described above. The ABS II Regular Certificates were sold to investors at a discount and the OP retained the entire Class F certificate (as described above), with the result that the proceeds, before closing costs, from the ABS II Loan to the ABS II Borrower were approximately $331.8 million. A portion of the net proceeds from the ABS II were used to pay down $242.4 million on the JPM Facility and fund reserves per the credit agreement.

The balance of the ABS II Loan, net of unamortized deferred financing costs and debt discount, is included in notes payable on the consolidated balance sheets. The ABS II Loan is collateralized by 2,436 single family rental homes, and as of June 30, 2025, approximately 10.80% of the Portfolio served as collateral for outstanding borrowings under the ABS II Loan. The ABS II Loan is segregated into seven tranches, Components A through F, providing for a 5-year, fixed-rate, interest-only loan with a total principal balance of $403.7 million. The weighted average interest rate of the ABS II Regular Certificates (Class A through E2) is 4.6495% and have a maturity date of March 9, 2029.

*Warehouse Facility*

On September 20, 2019, the OP (as guarantor) and VB One, LLC (as borrower) entered into a credit facility (the "Warehouse Facility") with KeyBank. On August 14, 2024, the OP entered into a Seventh Amendment to the Warehouse Facility (the "Warehouse Seventh Amendment") with KeyBank, as administrative agent, and the lenders party thereto. The Warehouse Seventh Amendment, among other things, provided for (1) a reduction in the maximum commitment of the Warehouse Facility; (2) reduced unused facility fees; (3) modifications and additions of certain covenants, including adjusting the minimum fixed charge coverage ratio to not less than 1.40 to 1.0, effective as of January 1, 2024; (4) in connection with sales of assets to unaffiliated third parties, the prepayment of the commitment amount with 100% of such proceeds until the commitment under the Warehouse Facility is reduced to $475.0 million and with 75% of such proceeds thereafter; provided that certain additional amounts may be required to be prepaid if the outstanding principal balance would exceed the value of the assets in the borrowing base following such sale; (5) the reduction of the outstanding principal balance to be no more than $475.0 million by October 31, 2024 (the "Commitment Reduction"). During the six months ended June 30, 2025, the Company paid down approximately $15.4 million on the Warehouse Facility. All repayments under the Warehouse Facility will permanently reduce the commitment amount under the Warehouse Facility and may not be reborrowed. As of June 30, 2025, the outstanding balance of the Warehouse Facility was approximately $441.8 million, which is below the required Commitment Reduction.

*MetLife Term Loan I Facilities*

On August 22, 2024, VB Nine, LLC ("VB Nine") and VB Ten, LLC ("VB Ten"), indirect subsidiaries of the Company, as borrowers, entered into two credit agreements for term loan credit facilities (collectively, the "MetLife Term Loan I Facilities") with Metropolitan Life Insurance Company and Metropolitan Tower Life Insurance Company, and the lenders party thereto from time to time, which provided a total commitment of $343.2 million. Borrowings under the MetLife Term Loan I Facilities are secured by an equity pledge by VB Nine Equity and VB Ten Equity of their equity interests in VB Nine and VB Ten, respectively, and the property and assets held by VB Nine and VB Ten, respectively, and bear interest at a fixed rate equal to 4.5%. The MetLife Term Loan I Facilities are full-term, interest-only facilities that mature on August 22, 2029. The Company used $282.0 million of the proceeds to pay down a portion of the outstanding amounts under the Warehouse Facility. As of June 30, 2025, the outstanding balance of the MetLife Term Loan I Facilities was approximately $328.4 million.

*MetLife Term Loan II Facility*

On November 4, 2024, VB Eleven, LLC, an indirect subsidiary of the Company, as borrower, entered into a $250.0 million credit agreement for a term loan credit facility (the "MetLife Term Loan II Facility") with Metropolitan Life Insurance Company and Metropolitan Tower Life Insurance Company, and the lenders party thereto from time to time. Borrowings under the MetLife Term Loan II Facility are secured by an equity pledge by VB Eleven Equity of its equity interests in VB Eleven and the property and assets held by VB Eleven, and bear interest at a fixed rate equal to 4.75%. The MetLife Term Loan II Facility is a full-term, interest-only facility that matures on November 4, 2029. The Company used $226.8 million of the proceeds to pay down the remaining outstanding amount under the Initial Mortgage. As of June 30, 2025, the outstanding balance of the MetLife Term Loan II Facility was approximately $247.9 million.

*The OSL Loan*

On February 25, 2025, the OP, as borrower, entered into a $10.0 million credit agreement (the "OSL Loan") with The Ohio State Life Insurance Company ("OSL"). OSL is an entity that may be deemed an affiliate of the Company's Adviser through common beneficial ownership. The OSL Loan provides for a 2-year, interest-only loan at a 9.0% fixed interest rate and is guaranteed by the Company. On May 5, 2025, the OP used its option to draw an additional $5.0 million on the OSL Loan. As of June 30, 2025, the outstanding balance of the OSL Loan was approximately $15.0 million.

*NexPoint Homes*

In addition to the debt agreements discussed above for the VineBrook Portfolio, as of June 30, 2025, the NexPoint Homes Portfolio had $518.0 million of debt outstanding included in notes payable on the consolidated balance sheets, which is comprised of two consolidated notes with Metropolitan Life Insurance Company (the "NexPoint Homes MetLife Note 1" and "NexPoint Homes MetLife Note 2"), the NexPoint Homes OSL Note (as defined below), the SFR OP Note Payable I (as defined below), the SFR OP Note Payable II (as defined below), the SFR OP Note Payable III (as defined below) and the SFR OP Convertible Notes (as defined in Note 10). See the summary table above for further information on the debt of the NexPoint Homes Portfolio.

*NexPoint Homes OSL Note*

On May 15, 2025, NexPoint SFR SPE 2, LLC, a wholly owned subsidiary of SFR OP, as borrower, entered into a promissory note with OSL, as lender, providing for a maximum principal amount of $17.3 million (the "NexPoint Homes OSL Note"). The NexPoint Homes OSL Note matures on May 15, 2026 and bears interest at a fixed rate of 9.75%. As of June 30, 2025, the outstanding balance of the NexPoint Homes OSL Note is $9.8 million.

*SFR OP Note Payable I*

On October 25, 2023, the SFR OP as borrower entered into a promissory note with NexPoint Diversified Real Estate Trust Operating Partnership, L.P., the parent of which is advised by an affiliate of our Adviser, as lender (the "SFR OP Note Payable I") for $0.5 million. The SFR OP Note Payable I bore interest at a fixed rate of 8.80% and had an original maturity date of April 25, 2024. On April 25, 2024, the SFR OP Note Payable I was amended to modify the maturity date to be April 25, 2025. On February 27, 2025, the SFR OP fully paid off the outstanding principal balance and interest on SFR OP Note Payable I.

*SFR OP Note Payable II*

On March 31, 2024, the SFR OP as borrower entered into a promissory note with NexPoint Real Estate Finance, Inc. ("NREF") as lender (the "Original SFR OP Note Payable II") for $0.5 million. On January 17, 2025, the Original SFR OP Note Payable II was amended and restated to correct the holder of the Original SFR OP Note Payable II to be NexPoint Real Estate Finance Operating Partnership, L.P., the party that funded the original loan (the amendment and restatement together with the Original SFR OP Note Payable II, the "SFR OP Note Payable II"). The SFR OP Note Payable II had an original maturity date of March 31, 2025 and bore interest at a fixed rate of 12.50%. On March 12, 2025, the SFR OP fully paid off the outstanding principal balance and interest on SFR OP Note Payable II.

*SFR OP Note Payable III*

On July 10, 2024, the SFR OP as borrower entered into a promissory note with NREF as lender (the "Original SFR OP Note Payable III") for a total commitment of $5.0 million. On January 17, 2025, the Original SFR OP Note Payable III was amended and restated to correct the holder of the Original SFR OP Note Payable III to be NREF OP IV REIT Sub, LLC, the party that funded the original loan (the amendment and restatement together with the Original SFR OP Note Payable III, the "SFR OP Note Payable III"). The SFR OP Note Payable III matures on July 10, 2025 and bears interest at a fixed rate of 15.00%. As of June 30, 2025, the outstanding balance of the SFR OP Note Payable III is $1.6 million. On July 9, 2025, the SFR OP entered into Amendment No. 1 to the SFR OP Note Payable III, wherein the maturity date was extended to July 10, 2026.

As of June 30, 2025, the Company is in compliance with all debt covenants in all of its debt agreements.

*Weighted Average Interest*

The weighted average interest rate of the Company's debt was 5.3271% as of June 30, 2025 and 5.2779% as of December 31, 2024. As of June 30, 2025 and December 31, 2024, the adjusted weighted average interest rate of the Company's debt, including the effect of derivative financial instruments, was 4.2091% and 4.0576%, respectively. For purposes of calculating the adjusted weighted average interest rate of the Company's debt as of June 30, 2025, including the effect of derivative financial instruments, the Company has included the weighted average fixed rate of 2.3646% on its combined $1.4 billion notional amount of interest rate swap and cap agreements, representing a weighted average fixed rate for daily SOFR and one-month term SOFR, which effectively fixes the interest rate on the entirety of the $551.6 million of the Company's floating rate indebtedness.

*Schedule of Debt Maturities*

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to June 30, 2025 are as follows (in thousands):

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| | |
|:---|:---|
| | **Total** |
| 2025 | $539585 |
| 2026 | 111776 |
| 2027 | 124469 |
| 2028 | 792113 |
| 2029 | 980127 |
| Thereafter | 6867 |
| Total | $2554937 |

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Each reporting period, management evaluates the Company's ability to continue as a going concern in accordance with ASC 205-40, Going Concern, by evaluating conditions and events, including assessing the liquidity needs to meet obligations as they become due within one year after the date the financial statements are issued. The Company has significant debt obligations of approximately $650.9 million coming due within 12 months of the financial statement issuance date, primarily related to the Warehouse Facility, JPM Facility and the MetLife Note. As of the date of issuance, the Company does not have sufficient liquidity to satisfy these obligations. In order to satisfy obligations as they mature, management intends to evaluate its options and may seek to: (i) make partial loan pay downs, (ii) refinance certain debt instruments and (iii) sell homes from its portfolio and pay down debt balances with the net sale proceeds. The Company's ability to meet its debt obligations as they come due is dependent upon its ability to meet debt covenants, which it currently projects to do, its ability to refinance debt and its ability to sell homes from its portfolio to pay down the balances. The Company intends to refinance these obligations primarily using debt or equity financing before they come due. The Company is currently engaged in active discussions with lenders to provide debt financing that would be sufficient to repay the amounts coming due over the next 12 months. In considering whether it is probable the Company will refinance the maturing debt obligations prior to their maturity dates, the Company performed a comprehensive assessment including the Company's historical ability to obtain financing, its creditworthiness based upon current and expected financial performance and leverage levels and current debt market conditions. As a result, the Company has concluded it is probable that refinancings will be completed prior to the maturity dates of the aforementioned debt obligations. There can be no assurances that financing can be obtained. The sale of homes from the Portfolio could cause a decrease in net operating income but is expected to be offset by the interest savings from the pay downs. Management believes these plans by the Company will be sufficient to satisfy the obligations as they become due. These financial statements have been prepared by management in accordance with GAAP and this basis assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. These financial statements do not include any adjustments that may result from the outcome of this uncertainty.

*Deferred Financing Costs*

The Company defers costs incurred in obtaining financing and amortizes the costs over the term of the related debt using the straight-line method, which approximates the effective interest method. Deferred financing costs, net of amortization, are recorded as a reduction from the related debt on the Company's consolidated balance sheets. Upon repayment of, or in conjunction with, a material change in the terms of the underlying debt agreement, any unamortized costs are charged to loss on extinguishment of debt. For the three months ended June 30, 2025 and 2024, amortization of deferred financing costs of approximately $2.4 million and $2.7 million, respectively, and amortization of loan discounts of approximately $4.6 million and $2.6 million, respectively, are included in interest expense on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2025 and 2024, amortization of deferred financing costs of approximately $4.8 million and $5.2 million, respectively, and amortization of loan discounts of approximately $9.1 million and $5.2 million, respectively, are included in interest expense on the consolidated statements of operations and comprehensive income (loss).

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**6. Fair Value of Derivatives and Financial Instruments**

*Derivative Financial Instruments and Hedging Activities*

In the normal course of business, our operations are exposed to market risks, including the effect of changes in interest rates. We may enter into derivative financial instruments to offset this underlying market risk. There have been no significant changes in our policy and strategy from what was disclosed in our Annual Report.

As of June 30, 2025, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk at inception (dollars in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Effective Date** | **Expiration Date** | **Counterparty** | **Index (1)** | | **Notional** | | **Fixed Rate** | |
| 9/1/2019 | 12/21/2025 | KeyBank | Daily SOFR | (2) | 100000 |  | 1.4180% |  |
| 9/1/2019 | 12/21/2025 | KeyBank | Daily SOFR | (2) | 50000 |  | 1.4190% |  |
| 3/31/2022 | 11/1/2025 | KeyBank | Daily SOFR |  | 100000 |  | 1.5110% |  |
| 3/31/2022 | 11/1/2025 | KeyBank | Daily SOFR |  | 100000 |  | 1.9190% |  |
| 3/31/2022 | 11/1/2025 | KeyBank | Daily SOFR |  | 50000 |  | 2.4410% |  |
| 6/1/2022 | 11/1/2025 | Mizuho | Daily SOFR |  | 100000 | (3) | 2.6284% |  |
| 6/1/2022 | 11/1/2025 | Mizuho | Daily SOFR |  | 100000 | (3) | 2.9413% |  |
| 6/1/2022 | 11/1/2025 | Mizuho | Daily SOFR |  | 100000 | (3) | 2.7900% |  |
| 7/1/2022 | 11/1/2025 | Mizuho | Daily SOFR |  | 100000 | (3) | 2.6860% |  |
| 4/3/2023 | 11/1/2025 | Mizuho | Daily SOFR |  | 250000 | (3) | 3.5993% |  |
|  |  |  |  |  | $1050000 |  | 2.5545% | (4) |

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(1)As of June 30, 2025, daily SOFR was 4.4500%.

(2)These interest rate swaps previously referenced one-month LIBOR, which ceased publication on June 30, 2023. Beginning July 1, 2023, these interest rate swaps transitioned to daily SOFR plus 0.1145% for the floating rate.

(3)These interest rate swaps are deemed to be derivatives not designated as hedging instruments and changes in the fair value of these derivatives are recorded directly in net income (loss) as interest expense.

(4)Represents the weighted average fixed rate of the interest rate swaps which have a combined weighted average fixed rate of 2.5545%.

Interest rate caps involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. On April 13, 2022, the Company, through the OP, paid a premium of approximately $12.7 million and entered into an interest rate cap transaction with Goldman Sachs Bank USA ("Goldman Sachs") with a notional amount of $300.0 million. On June 27, 2025, the Company, through the OP, paid a premium of approximately $0.1 million and entered into an interest rate cap transaction with Goldman Sachs with a notional amount of $31.9 million. The interest rate caps effectively cap one-month term SOFR at 1.50% on $300.0 million and at 4.25% on $31.9 million on floating rate debts. The interest rate caps expire on November 1, 2025 and July 9, 2027, respectively.

As of June 30, 2025, the Company had the following outstanding interest rate cap that was not designated as a hedge in qualifying hedging relationships (dollars in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Derivative** | **Notional** | **Expiration Date** | **Index** | **Index as of June 30, 2025** | **Strike Rate** |
| Interest Rate Cap | $300000 | 11/1/2025 | One-Month Term SOFR | 4.3220% | 1.50% |
| Interest Rate Cap | $31860 | 7/9/2027 | One-Month Term SOFR | 4.3220% | 4.25% |

---

The table below presents the fair value of the Company's derivative financial instruments, which are presented on the consolidated balance sheets as of June 30, 2025 and December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | **Asset Derivatives** | **Asset Derivatives** |
| |<br>**Balance Sheet Location** | **June 30, 2025** | **December 31, 2024** |
| Derivatives designated as hedging instruments: |  |  |  |
| &nbsp;&nbsp;Interest rate swaps | Interest rate derivatives, at fair value | $4077 | $11276 |
| Derivatives not designated as hedging instruments: |  |  |  |
| &nbsp;&nbsp;Interest rate swaps | Interest rate derivatives, at fair value | 2620 | 3450 |
| &nbsp;&nbsp;Interest rate caps | Interest rate derivatives, at fair value | 2881 | 6563 |
| Total |  | $9578 | $21289 |

---

Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements but either do not meet the strict requirements to apply hedge accounting in accordance with FASB ASC 815, *Derivatives and Hedging*, or the Company has elected not to designate such derivatives as hedges. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in net income (loss) as interest expense. The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) as of June 30, 2025 and 2024 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Amount of gain (loss) recognized in OCI** | **Amount of gain (loss) recognized in OCI** | **Location of gain (loss) reclassified from OCI into income** | **Amount of gain (loss) reclassified from OCI into income** | **Amount of gain (loss) reclassified from OCI into income** |
| | **June 30, 2025** | **June 30, 2024** | **Location of gain (loss) reclassified from OCI into income** | **June 30, 2025** | **June 30, 2024** |
| Derivatives designated as hedging instruments: |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate swaps | $(2545) | $3537 | &nbsp;&nbsp;Interest expense | $5652 | $17279 |
|  |  |  | **Location of gain (loss) recognized in income** | **Amount of gain (loss) recognized in income** | **Amount of gain (loss) recognized in income** |
|  |  |  | **Location of gain (loss) recognized in income** | **June 30, 2025** | **June 30, 2024** |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate swaps |  |  | &nbsp;&nbsp;Interest expense | $4267 | $1903 |
| &nbsp;&nbsp;Interest rate cap |  |  | &nbsp;&nbsp;Interest expense | $497 | $4362 |

---

*ABS Class F Retention Certificates*

The Class F Certificates that the Company purchased and retained as part of the ABS I and ABS II transactions, are classified as held to maturity and are valued at amortized cost. As of June 30, 2025 and December 31, 2024, the carrying value of the ABS I and ABS II Class F Certificates was $79.0 million and $79.0 million, respectively.

The table below presents the outstanding principal balance and estimated fair value of our debt as of June 30, 2025 and December 31, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Outstanding Principal Balance** | **Estimated Fair Value** | **Outstanding Principal Balance** | **Estimated Fair Value** |
| Debt | $2554937 | $2520979 | $2572401 | $2500760 |

---

The following table sets forth a summary of the Company's held for sale assets, held and used real estate assets that underwent impairment and real estate assets that underwent a casualty related impairment that were accounted for at fair value on a nonrecurring basis as of their respective measurement date (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Hierarchy Level** | **Fair Value Hierarchy Level** | **Fair Value Hierarchy Level** |
|<br>**Description** |<br>**Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| Assets held at June 30, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate assets - impaired at March 31, 2025 | $3637 | $— | $— | $3637 |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate assets - impaired at June 30, 2025 | $12354 | $— | $— | $12354 |

---

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**7. Stockholders**' **Equity**

The Company issued shares under the Company's distribution reinvestment program (the "DRIP") during the six months ended June 30, 2025. Common Stock shares issued under the DRIP are issued at a 3% discount to the then-current NAV per share and the Company does not receive any cash for DRIP issuances as those dividends are instead reinvested into the Company. During the three months ended June 30, 2025 and 2024, the Company issued 107,289 and 107,515 shares of Common Stock, respectively, for equity contributions of $5.7 million and $6.1 million, respectively. During the six months ended June 30, 2025 and 2024, the Company issued 213,927 and 217,635 shares of Common Stock, respectively, for equity contributions of $11.4 million and $12.6 million, respectively.

*2018 Long-Term Incentive Plan*

The Company adopted the 2018 Long Term Incentive Plan (the "2018 LTIP") whereby the Board, or a committee thereof, granted awards of restricted stock units ("RSUs") or profits interest units in the OP ("PI Units") to certain employees of the Company and the Adviser, or others at the discretion of the Board (including the directors and officers of the Company or other service providers of the Company or the OP). Under the terms of the 2018 LTIP, 426,307 shares of Common Stock were initially reserved, subject to automatic increase on January 1st of each year beginning with January 1, 2019 by a number equal to 10% of the total number of OP Units and vested PI Units outstanding on December 31st of the preceding year (the "2018 LTIP Share Reserve"), provided that the Board could act prior to each such January 1st to determine that there would be no increase for such year or that the increase would be less than the number of shares by which the 2018 LTIP Share Reserve would otherwise increase. In addition, the shares of Common Stock available under the 2018 LTIP could not exceed in the aggregate 10% of the number of OP Units and vested PI Units outstanding at the time of measurement. Grants could be made annually by the Board, or more or less frequently in the Board's sole discretion. Vesting of grants made under the 2018 LTIP occur ratably over a period of time as determined by the Board and could include the achievement of performance metrics, also as determined by the Board in its sole discretion.

*2023 Long-Term Incentive Plan*

On July 11, 2023, the Company's stockholders approved the 2023 Long Term Incentive Plan (the "2023 LTIP") to replace the 2018 LTIP and on July 20, 2023, the Company filed a registration statement on Form S-8 registering 1,000,000 shares of Common Stock which the Company may issue pursuant to the 2023 LTIP. Under the 2023 LTIP, the compensation committee of the Board ("Compensation Committee") may grant awards of option rights, stock appreciation rights, restricted stock, RSUs, performance shares, performance share units or cash incentive awards, or PI Units to directors and officers of the Company or other service providers of the Company and the OP, including employees of the Adviser. Under the terms of the 2023 LTIP, 1,000,000 shares of Common Stock were initially reserved, subject to automatic increase on January 1st of each year beginning with January 1, 2024 by a number equal to 10% of the total number of OP Units and vested PI Units outstanding on December 31st of the preceding year (the "Share Reserve"), provided that the Board may act prior to each such January 1st to determine that there will be no increase for such year or that the increase will be less than the number of shares by which the Share Reserve would otherwise increase. Vesting of grants made under the 2023 LTIP will occur over a period of time as determined by the Compensation Committee and may include the achievement of performance metrics, also as determined by the Compensation Committee in its sole discretion.

*RSU Grants Under the 2018 LTIP and 2023 LTIP*

On May 11, 2020, a total of 179,858 RSUs were granted to certain employees of the Adviser, officers of the Company and independent Board members. On February 15, 2021, a total of 191,506 RSUs were granted to certain employees of the Adviser, officers of the Company and independent Board members. On February 17, 2022, a total of 185,111 RSUs were granted to certain employees of the Adviser, officers of the Company and independent Board members. On April 11, 2023, a total of 186,770 RSUs were granted to certain employees of the Adviser, officers of the Company, and independent Board members. On April 3, 2024, a total of 191,937 RSUs were granted to certain employees of the Adviser, officers of the Company, and non-employee Board members. On April 4, 2025, a total of 229,371 RSUs were granted to certain employees of the Adviser, officers of the Company, and non-employee Board members. The RSUs granted to certain employees of the Adviser and officers of the Company on April 11, 2023, February 17, 2022, February 15, 2021 and May 11, 2020 vest 50% ratably over four years and 50% at the successful completion of an initial public offering ("IPO"). The RSUs granted to certain employees of the Adviser and officers of the Company on April 3, 2024 vest 50% ratably over four years and 50% at the successful completion of an initial public offering or the listing of the Company's Common Stock on a national securities exchange. The RSUs granted to certain employees of the Adviser and officers of the Company on April 4, 2025 vest 100% ratably over four years.

On April 4, 2025, the Compensation Committee (i) accelerated the vesting of the May 11, 2020 and February 15, 2021 RSU awards that were dependent upon the successful completion of an IPO, and as such the remaining outstanding RSUs under those respective awards vested on April 4, 2025 and (ii) revised the vesting schedule for the February 17, 2022, April 11, 2023 and April 3, 2024 RSU awards such that the awards vest 50% ratably over four years and 50% upon the earlier to occur: the date of a successful completion of an IPO, the listing of the Company's Common Stock on a national securities exchange (together, a "Company Listing Event") or the final time vesting date. During the three and six months ended June 30, 2025, the Company recognized approximately $11.5 million of non-cash compensation expense related to the accelerated RSU award vesting, which is based on the fair value of the modified awards at the date of modification. The non-cash compensation expense is included in general and administrative expenses on the consolidated statements of operations and comprehensive income (loss). The RSUs granted to non-employee Board members fully vest on the first anniversary of the grant date. Forfeitures are recognized as they occur. RSUs are valued at fair value (which is the NAV per share in effect) on the date of grant, with compensation expense recorded in accordance with the applicable vesting schedule that approximates a straight-line basis. Beginning on the date of grant, RSUs accrue dividends that are payable in cash on the vesting date. Once vested, the RSUs convert on a one-for-one basis into Common Stock. The estimated fair values of the RSUs that fully vested during the six months ended June 30, 2025 and 2024 were an aggregate of $14.5 million and $5.5 million, respectively.

As of June 30, 2025, the number of RSUs granted that are outstanding was as follows (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
| **Dates** | **Number of RSUs** | | **Value (1)** |
| Outstanding December 31, 2024 | 663530 |  | $34071 |
| Granted | 229371 |  | 12510 |
| Vested | (268446) | (2) | (10972) |
| Forfeited | (3371) |  | (197) |
| Outstanding June 30, 2025 | 621084 |  | $35412 |

---

(1)Value is based on the number of RSUs granted multiplied by the most recent NAV per share on the date of grant, which was $54.54 for the April 4, 2025 grant, $58.95 for the April 3, 2024 grant, $63.04 for the April 11, 2023 grant, $54.14 for the February 17, 2022 grant, $36.56 for the February 15, 2021 grant, $30.82 for the May 11, 2020 grant, and $29.85 for the December 10, 2019 grant.

(2)Certain grantees elected to net the taxes owed upon vesting against the shares of Common Stock issued resulting in 190,987 shares of Common Stock being issued for the six months ended June 30, 2025, and 73,520 shares of Common Stock being issued for six months ended June 30, 2024, as shown on the consolidated statements of stockholders' equity.

The vesting schedule for the outstanding RSUs is as follows:

---

| | |
|:---|:---|
| **Vest Date** | **RSUs Vesting (1)** |
| February 17, 2026 | 105189 |
| April 3, 2026 | 22451 |
| April 4, 2026 | 67252 |
| April 11, 2026 | 21561 |
| April 3, 2027 | 22451 |
| April 4, 2027 | 54040 |
| April 11, 2027 | 107804 |
| April 3, 2028 | 112256 |
| April 4, 2028 | 54040 |
| April 4, 2029 | 54040 |
|  | 621084 |

---

(1)As of June 30, 2025, upon the successful completion of a Company Listing Event or change of control of the Company, 260,200 RSUs would vest immediately, instead of vesting on the final time vesting date according to the schedule above.

For the three months ended June 30, 2025 and 2024, the Company recognized approximately $15.9 million and $1.5 million, respectively, of non-cash compensation expense related to the RSUs, which is included in corporate general and administrative expenses on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2025 and 2024, the Company recognized approximately $17.2 million and $2.9 million, respectively, of non-cash compensation expense related to the RSUs, which is included in general and administrative expenses on the consolidated statements of operations and comprehensive income (loss). As of June 30, 2025, total unrecognized compensation expense on RSUs was approximately $30.3 million, and the expense is expected to be recognized over a weighted average vesting period of 1.71 years.

*Performance Share Grants under the 2023 LTIP*

In connection with the Internalization of the Legacy VineBrook Manager and under the 2023 LTIP, on August 3, 2023, performance shares were granted to certain executives with an aggregate target of 63,452 performance shares. Vesting of 31,726 of the performance shares was based on the achievement of annual Portfolio growth and annual growth of rehabilitations of properties in the Portfolio (the "One Year Performance Shares"), and the vesting of 31,726 of the performance shares was based on the net operating income growth from 2023 through 2025 and core funds from operations per share growth from 2023 through 2025 (the "Three Year Performance Shares"). The achievement of the respective metrics would increase or decrease the number of shares which the grantee earns and therefore receives upon vesting. As of December 31, 2024, it was determined that 23,794 One Year Performance Shares were earned by executives based on annual Portfolio growth and annual growth of rehabilitations of properties in the Portfolio. The One Year Performance Shares vest 25% ratably over four years. The Three Year Performance Shares are based on the achievement of net operating income growth from 2023 through 2025 and core funds from operations per share growth from 2023 through 2025, and if the performance metrics are met when the performance period ends on January 1, 2026, the Three Year Performance Shares vest 50% ratably over two years. Forfeitures are recognized as they occur. Beginning on the date of grant, performance shares accrue dividends that are payable in cash on the vesting date. Once vested, the performance shares convert on a one-for-one basis into Common Stock. On June 10, 2025, certain executives granted performance shares were terminated whereby 31,726 Three Year Performance Shares, representing target performance, were deemed to be earned. In connection with the separation and release agreements, a total of 49,572 outstanding and earned performance shares, representing the remaining earned One Year Performance Shares and the Three Year Performance Shares deemed earned, vested on August 4, 2025. During the three and six months ended June 30, 2025, the Company recognized approximately $2.5 million of non-cash compensation expense related to the accelerated performance share vestings, which is included in general and administrative expenses on the consolidated statements of operations and comprehensive income (loss).

As of June 30, 2025, the number of performance shares earned was as follows (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
| **Dates** | **Number of performance shares** | | **Value (1)** |
| Outstanding December 31, 2024 | 23794 |  | $1433 |
| Earned | 31727 |  | 1911 |
| Vested | (5949) | (2) | (358) |
| Forfeited |  |  |  |
| Outstanding June 30, 2025 | 49572 |  | $2986 |

---

(1)Value is based on the number of performance shares granted multiplied by the most recent NAV per share on the date the share is earned, which was $60.23 for the shares earned during the year ended December 31, 2023.

(2)Certain grantees elected to net the taxes owed upon vesting against the shares of Common Stock issued resulting in 2,610 shares of Common Stock being issued for the six months ended June 30, 2025, as shown on the consolidated statements of stockholders' equity.

*Series B Preferred Stock*

On July 31, 2023, the Company issued 2,548,240 shares of 9.50% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share (the "Series B Preferred Stock"), of the Company in a private offering for gross proceeds of approximately $63.7 million (the "Series B Preferred Offering"). Beginning on the day after the fourth anniversary of the original issuance date, the Series B Preferred Stock dividend rate will increase to 10.00% per annum; beginning on the day after the fifth anniversary of the original issuance date, the Series B Preferred Stock dividend rate will increase to 11.00% per annum; and beginning on the day after the sixth anniversary of the original issuance date and each anniversary thereafter, the Series B Preferred Stock dividend rate will increase an additional 2.00% per annum, with a maximum Series B Preferred Stock dividend rate of 17.00% per annum. The dividend rate will also increase upon the occurrence of certain default circumstances, as defined in the Articles Supplementary setting forth the terms of the Series B Preferred Stock. The Company has the option to redeem, in whole or in part, the Series B Preferred Stock at any time, from time to time, subject to certain redemption premiums if redeemed prior to the second anniversary of the original issuance date. The Company currently intends to exercise its option to redeem all of the outstanding Series B Preferred Stock on or prior to the fourth anniversary of the original issuance date. With respect to priority of payment of dividends, the Series B Preferred Stock ranks senior to all classes of Common Stock, and the Series B Preferred Stock and Series A Preferred Stock rank on parity with each other. Upon any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, the Series B Preferred stockholders are entitled to be paid out, at a price equal to $25.00 per share plus any accrued and unpaid distributions (whether or not declared), after payment of the Company's debts and other liabilities. An aggregate of approximately $2.9 million in selling commissions and fees were paid in connection therewith. OSL purchased shares of Series B Preferred Stock in the Series B Preferred Offering. A majority of net proceeds were used to partially pay down the Warehouse Facility and a $75.0 million bridge credit agreement of the Company and fund a $20.0 million reserve with KeyBank.

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**8. Noncontrolling Interests**

*Redeemable Noncontrolling Interests in the OP*

The following table presents the capital contributions, distributions, and profits and losses allocated to PI Units and OP Units not held by the Company (the "noncontrolling interests") in the OP (in thousands):

---

| | |
|:---|:---|
| | **Balances** |
| **Redeemable noncontrolling interests in the OP, December 31, 2024** | $257454 |
| Net loss attributable to redeemable noncontrolling interests in the OP | (16369) |
| Contributions by redeemable noncontrolling interests in the OP | 1460 |
| Distributions to redeemable noncontrolling interests in the OP | (5844) |
| Equity-based compensation | 26376 |
| Other comprehensive loss attributable to redeemable noncontrolling interests in the OP | (1230) |
| Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP | (5313) |
| **Redeemable noncontrolling interests in the OP, June 30, 2025** | $256534 |

---

As of June 30, 2025, the Company held 19,641,598 Class A OP Units, NREO held 2,814,062 Class B OP Units, NRESF held 97,601 Class C OP Units, GAF REIT held 154,025 Class C OP Units and the VineBrook Contributors and other Company insiders held 1,636,182 Class C OP Units. As of June 30, 2025, the Company held all outstanding 6.50% Series A Cumulative Redeemable Preferred Units and 9.50% Series B Cumulative Redeemable Preferred Units of the OP.

*PI Unit Grants Under the 2018 LTIP*

In connection with the 2018 LTIP, PI Units have been issued to key personnel and senior management. On May 11, 2020, a total of 219,826 PI Units were granted; on November 30, 2020, a total of 11,764 PI Units were granted; on May 31, 2021, a total of 246,169 PI Units were granted; on August 10, 2022, a total of 27,849 PI Units were granted; and on February 22, 2023, a total of 79,304 PI Units were granted. The PI Units are a special class of partnership interests in the OP with certain restrictions, which are convertible into Class C OP Units, subject to satisfying vesting and other conditions. PI Unit holders are entitled to receive the same distributions as holders of our OP Units (only if we declare and pay such distributions). The PI Units granted on May 11, 2020 and May 31, 2021 vest 50% ratably over four years and 50% at the successful completion of an IPO and the PI Units granted on November 30, 2020 vest 100% ratably over four years. The PI Units granted on August 10, 2022 and February 22, 2023 generally vest ratably over five years.

On April 4, 2025, the Compensation Committee (i) accelerated the vesting of the May 11, 2020 and November 30, 2020 PI Unit grants that were dependent upon the successful completion of an IPO, and as such the remaining outstanding PI Units under those respective awards vested on April 4, 2025 and (ii) revised the vesting schedule for the May 31, 2021 PI Unit grants such that the awards vested 50% ratably over four years and 50% upon the earlier to occur: the date of the successful completion of an IPO or the final time vesting date. During the three and six months ended June 30, 2025, the Company recognized approximately $12.0 million of non-cash compensation expense related to the accelerated vestings of PI Units, which is included in general and administrative expenses on the consolidated statements of operations and comprehensive income (loss). Once vested and converted into Class C OP Units in accordance with the OP LPA, the PI Units will then be fully recognized as Class C OP Units, which are subject to a one year lock up period before they can be converted to Common Stock. Forfeitures are recognized as they occur. PI Units are valued at fair value on the date of grant, with compensation expense recorded in accordance with the applicable vesting schedule over the periods in which the restrictions lapse, that approximates a straight-line basis. We valued the PI Units at a per-unit value equivalent to the per-share offering price of our OP Units less discounts estimated by a third-party consultant. Beginning on the date of grant, PI Units accrue dividends that are payable in cash quarterly (if we declare and pay distributions to holders of our OP Units).

*PI Unit Grants Under the 2023 LTIP*

In connection with the Internalization of the Legacy VineBrook Manager and under the 2023 LTIP, PI Units have been issued to executives of the Legacy VineBrook Manager. On August 3, 2023, a total of 475,888 PI Units were granted. The PI Units are a special class of partnership interests in the OP with certain restrictions, which are convertible into Class C OP Units, subject to satisfying vesting and other conditions. PI Unit holders are entitled to receive the same distributions as holders of our OP Units (only if we declare and pay such distributions). The PI Units granted on August 3, 2023 were originally scheduled to vest 100% on February 28, 2026. On June 10, 2025, certain executives were terminated by the Company, whereby 100% of the PI Units granted on August 3, 2023 vested on August 4, 2025. During the three and six months ended June 30, 2025, the Company recognized approximately $7.6 million of non-cash compensation expense related to the accelerated vesting of August 3, 2023 PI Unit award, which is included in general and administrative expenses on the consolidated statements of operations and comprehensive income (loss). Once vested and converted into Class C OP Units in accordance with the OP LPA, the PI Units will then be fully recognized as Class C OP Units, which are subject to a one year lock up period before they can be converted to Common Stock. Forfeitures are recognized as they occur. PI Units are valued at fair value on the date of grant, with compensation expense recorded in accordance with the applicable vesting schedule over the periods in which the restrictions lapse, that approximates a straight-line basis. We valued the PI Units at a per-unit value equivalent to the per-share offering price of our OP Units less a discount for lack of marketability and other discounts estimated by a third-party consultant. Beginning on the date of grant, PI Units accrue dividends that are payable in cash quarterly (if we declare and pay distributions to holders of our OP Units).

As of June 30, 2025, the number of PI Units granted that are outstanding and unvested was as follows (dollars in thousands):

---

| | | |
|:---|:---|:---|
| **Dates** | **Number of PI Units** | **Value (1)** |
| Outstanding December 31, 2024 | 813840 | $44113 |
| Granted |  |  |
| Vested | (270310) | (9977) |
| Forfeited | (28950) | (1570) |
| Outstanding June 30, 2025 | 514580 | $32566 |

---

(1)Value is based on the number of PI Units granted multiplied by the estimated per unit fair value on the date of grant, which was $29.12 for the November 21, 2019 grant, $30.16 for the May 11, 2020 grant, $33.45 for the November 30, 2020 grant, $38.29 for the May 31, 2021 grant, $61.74 for the August 10, 2022 grant, $63.04 for the February 22, 2023 grant and $61.63 for the August 3, 2023 grant.

The vesting schedule for the PI Units is as follows:

---

| | |
|:---|:---|
| **Vest Date** | **PI Units Vesting** |
| August 4, 2025 | 482,278 |
| September 23, 2025 | 1,110 |
| February 22, 2026 | 9,516 |
| April 25, 2026 | 1,322 |
| February 22, 2027 | 9,516 |
| April 25, 2027 | 1,322 |
| February 22, 2028 | 9,516 |
| | 514,580 |

---

For the three months ended June 30, 2025 and 2024, the OP recognized approximately $22.9 million and $3.6 million, respectively, of non-cash compensation expense related to the PI Units, which is included in general and administrative expenses on the Company's consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2025 and 2024, the OP recognized approximately $26.4 million and $7.3 million, respectively, of non-cash compensation expense related to the PI Units, which is included in general and administrative expenses on the Company's consolidated statements of operations and comprehensive income (loss). As of June 30, 2025, total unrecognized compensation expense on PI Units was approximately $1.8 million, and the expense is expected to be recognized over a weighted average vesting period of 0.19 year.

The table below presents the consolidated Common Stock and OP Units outstanding held by the noncontrolling interests ("NCI"), as the OP Units held by the Company are eliminated in consolidation.

---

| | | | |
|:---|:---|:---|:---|
| **Year End** | **Common Stock Shares Outstanding** | **OP Units Held by NCI** | **Consolidated Common Stock Shares and NCI OP Units Outstanding** |
| December 31, 2024 | 25377421 | 4720458 | 30097879 |
| March 31, 2025 | 25508642 | 4708089 | 30216731 |
| June 30, 2025 | 25753592 | 4701870 | 30455462 |

---

*Redeemable Noncontrolling Interests in Consolidated VIEs*

As of June 30, 2025, approximately 5,057,973 limited partnership units of the SFR OP ("SFR OP Units") were held by affiliates of the Company. The following table presents the capital contributions, distributions, and profits and losses allocated to SFR OP Units not held by the Company (the "redeemable noncontrolling interests in consolidated VIEs") (in thousands):

---

| | |
|:---|:---|
| | **Balances** |
| **Redeemable noncontrolling interests in consolidated VIEs, December 31, 2024** | $80711 |
| Net loss attributable to redeemable noncontrolling interests in consolidated VIEs | (9671) |
| Contributions by redeemable noncontrolling interests in consolidated VIEs | 2786 |
| Distributions to redeemable noncontrolling interests in consolidated VIEs | (2786) |
| Adjustment to reflect redemption value of redeemable noncontrolling interests in consolidated VIEs | 11961 |
| **Redeemable noncontrolling interests in consolidated VIEs, June 30, 2025** | $83001 |

---

*Noncontrolling Interests in Consolidated VIEs*

The following table presents the capital contributions, distributions, and profits and losses allocated to NexPoint Homes Class A common stock, par value $0.01 per share and NexPoint Homes Class I common stock, par value $0.01 not held by the Company (the "noncontrolling interests in consolidated VIEs") (in thousands):

---

| | |
|:---|:---|
| | **Balances** |
| **Noncontrolling interests in consolidated VIEs, December 31, 2024** | $6083 |
| Net loss attributable to noncontrolling interests in consolidated VIEs | (1343) |
| Contributions by noncontrolling interests in consolidated VIEs | 307 |
| Distributions to noncontrolling interests in consolidated VIEs | (424) |
| Redemptions by noncontrolling interests in consolidated VIEs | (1211) |
| **Noncontrolling interests in consolidated VIEs, June 30, 2025** | $3412 |

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**9. Redeemable Series A Preferred Stock**

The Company has issued 5,000,000 shares of Series A Preferred Stock as of June 30, 2025. The Series A Preferred Stock has a redemption value of $25.00 per share and is mandatorily redeemable on October 7, 2027 unless a Listing Event is effectuated as defined in the Articles of Amendment and Restatement, subject to certain extensions. With respect to priority of payment of dividends, the Series A Preferred Stock ranks senior to all classes of Common Stock, and the Series A Preferred Stock and Series B Preferred Stock rank on parity with each other. Upon any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, the Series A Preferred stockholders are entitled to be paid out, at a price equal to $25.00 per share, plus an amount equal to any accrued and unpaid dividends (whether or not earned, authorized or declared), after payment of the Company's debts and other liabilities.

The following table presents the redeemable Series A Preferred Stock (dollars in thousands):

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| | | |
|:---|:---|:---|
| | **Series A Preferred Stock shares** | **Balances** |
| **Redeemable Series A Preferred stock, December 31, 2024** | 4996000 | $122820 |
| Net income attributable to Redeemable Series A Preferred stockholders |  | 4060 |
| Dividends declared to Redeemable Series A Preferred stockholders |  | (4060) |
| Accretion to redemption value |  | 337 |
| **Redeemable Series A Preferred stock, June 30, 2025** | 4996000 | $123157 |

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**10. Related Party Transactions**

*VineBrook Advisory Fee*

Pursuant to the Advisory Agreement, the Company will pay the Adviser, on a monthly basis in arrears, an advisory fee at an annualized rate of 0.75% of the gross asset value of the Company (as calculated pursuant to the terms of the Advisory Agreement). The Adviser will manage the Company's business including, among other duties, advising the Board to issue distributions, preparing our quarterly and annual consolidated financial statements prepared under GAAP, development and maintenance of internal accounting controls, management and conduct of maintaining our REIT status, calculation of our NAV and recommending the appropriate NAV to be set by the Board, reporting to holders of Common Stock, our tax filings, and other responsibilities customary for an external advisor to a business similar to ours. With certain specified exceptions, the advisory fee together with reimbursement of operating and offering expenses may not exceed 1.5% of average total assets of the Company and the OP, as determined in accordance with GAAP on a consolidated basis, at the end of each month (or partial month) (i) for which any advisory fee is calculated or (ii) during the year for which any expense reimbursement is calculated.

For the three months ended June 30, 2025 and 2024, the Company expensed advisory fees of approximately $4.2 million and $4.3 million, respectively, in the VineBrook Portfolio which are included in advisory fees on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2025 and 2024, the Company expensed advisory fees of approximately $8.4 million and $8.6 million, respectively, in the VineBrook Portfolio which are included in advisory fees on the consolidated statements of operations and comprehensive income (loss). As of June 30, 2025 and 2024, the Company had $9.1 million and $18.6 million of accrued advisory fees payable, respectively, which are included in accounts payable and other accrued liabilities on the consolidated balance sheets.

*Internalization of the Adviser*

The Company may acquire all of the outstanding equity interests of the Adviser (an "Adviser Internalization") under certain provisions (a "Purchase Provision") of the Advisory Agreement to effect an Adviser Internalization upon the payment of a certain fee (an "Adviser Internalization Fee"). If the Company determines to acquire the equity interests of the Adviser, the applicable Purchase Provision of the Advisory Agreement provides that the Adviser must first agree to such acquisition and that the Company will pay the Adviser an Adviser Internalization Fee equal to three times the total of the prior 12 months' advisory fee, payable only in capital stock of the Company.

*Series B Preferred Offering*

OSL purchased shares of Series B Preferred Stock in the Series B Preferred Offering (See Note 7).

*NexBank*

The Company and the OP maintain bank accounts with NexBank, a Texas state chartered bank ("NexBank"). NexBank charges no recurring maintenance fees on the accounts. The following table provides a reconciliation of cash and restricted cash reported on the consolidated balance sheets that is held at NexBank (in thousands):

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| | | |
|:---|:---|:---|
| | **Cash at NexBank** | **Cash at NexBank** |
| | **June 30, 2025** | **December 31, 2024** |
| VineBrook Portfolio | $1749 | $90 |
| NexPoint Homes Portfolio | 1142 | 3727 |
| &nbsp;&nbsp;&nbsp;Total cash at NexBank | $2891 | $3817 |

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A director of the Company (i) is the beneficiary of a trust that indirectly owns 100% of the limited partnership interests in the parent of Adviser and directly owns 100% of the general partnership interests in the parent of the Adviser and (ii) is a director of the holding company of NexBank, directly owns a minority of the common stock of NexBank, and is the beneficiary of a trust that directly owns a substantial portion of the common stock of NexBank.

*NexPoint Homes Transactions*

In connection with the Company's consolidated investment in NexPoint Homes, the Company consolidated non-controlling interests in NexPoint Homes that were contributed by affiliates of the Adviser. As of June 30, 2025, these affiliates had contributed approximately $124.3 million of equity to NexPoint Homes. Additionally, the Company has consolidated five SFR OP convertible notes that are loans from affiliates of the Adviser to the SFR OP that bear interest at 7.50% and mature on June 30, 2027 (the "SFR OP Convertible Notes"). The holders of the SFR OP Convertible Notes may elect to convert all or part of the outstanding principal and accrued but unpaid interest into SFR OP Units, as calculated based on the current NAV at time of conversion. The SFR OP may prohibit conversion if certain conditions exist, including if the conversion would result in a negative impact to the REIT status of NexPoint Homes. As of June 30, 2025, the total principal outstanding on the SFR OP Convertible Notes was approximately $95.5 million which is included in notes payable on the consolidated balance sheets. For the three months ended June 30, 2025 and 2024, the SFR OP recorded approximately $1.8 million and $1.9 million of interest expense related to the SFR OP Convertible Notes, respectively. For the six months ended June 30, 2025 and 2024, the SFR OP recorded approximately $3.7 million and $3.8 million of interest expense related to the SFR OP Convertible Notes, respectively. As of June 30, 2025 and December 31, 2024, approximately $19.0 million and $7.8 million of interest expense, respectively, related to the SFR OP Convertible Notes remained accrued within accrued interest payable on the consolidated balance sheets.

As of December 31, 2024, the Company consolidated an approximately $1.1 million loan, net of the provision for loan losses, from the SFR OP to the NexPoint Homes Manager (as defined below) (the "HomeSource Note"). The HomeSource Note bore interest at daily SOFR plus 2.00% and would have matured on February 1, 2027. In connection with the HomeSource Note, the SFR OP received a 9.99% non-voting interest in the HomeSource Operations, LLC (the "HomeSource Investment"). During the year ended December 31, 2024, the NexPoint Homes Manager (as defined below) notified the SFR OP that the NexPoint Homes Manager intended to cease business operations. As such, NexPoint Homes wrote off the entirety of its HomeSource Investment, and the $0.7 million loss was included in Gain (loss) on sales and impairment of real estate, net on the consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2024 . During the six months ended June 30, 2025, the Company received $1.6 million on the HomeSource Note and the $0.5 million reversal of the provision for loan losses is included on the consolidated statements of operations and comprehensive income (loss).

On June 8, 2022, NexPoint Homes entered into an advisory agreement (the "NexPoint Homes Advisory Agreement") with NexPoint Real Estate Advisors XI, LP (the "NexPoint Homes Adviser"), an affiliate of the Adviser. Under the terms of the NexPoint Homes Advisory Agreement, the NexPoint Homes Adviser manages the day-to-day affairs of NexPoint Homes for a fee equal to 0.75% of the consolidated enterprise value of NexPoint Homes. Additionally, the NexPoint Homes Adviser charges a fee equal to 0.25% of each transaction in connection with the procurement of debt or equity capital for NexPoint Homes. For the three months ended June 30, 2025 and 2024, NexPoint Homes incurred advisory fees of approximately $0.8 million and $0.9 million in connection with the NexPoint Homes Advisory Agreement, respectively, which is included in advisory fees on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2025 and 2024, NexPoint Homes incurred advisory fees of approximately $1.6 million and $1.8 million in connection with the NexPoint Homes Advisory Agreement, respectively, which is included in advisory fees on the consolidated statements of operations and comprehensive income (loss). As of June 30, 2025 and December 31, 2024, NexPoint Homes has $7.9 million and $6.3 million of accrued advisory fees payable, respectively, which are included in accounts payable and other accrued liabilities on the consolidated balance sheets.

Prior to September 19, 2024, the NexPoint Homes Portfolio was generally managed by HomeSource Operations, LLC, a Delaware limited liability company (the "NexPoint Homes Manager" or "HomeSource"), pursuant to the terms of a management agreement between the SFR OP and the NexPoint Homes Manager dated June 8, 2022 (the "NexPoint Homes Management Agreement"). In July 2024, the NexPoint Homes Manager notified the SFR OP that the NexPoint Homes Manager intended to cease business operations. On November 22, 2024, the SFR OP sent the NexPoint Homes Manager a termination notice to formally terminate the NexPoint Homes Management Agreement and related side letter. Management fees under the NexPoint Homes Management Agreement ceased accruing as of September 14, 2024 when the NexPoint Homes Manager ceased providing property management and related services to the SFR OP.

During the year ended December 31, 2024, approximately $3.4 million in fees were earned by the NexPoint Homes Manager in connection with the NexPoint Homes Management Agreement. Related to the fees earned by the NexPoint Homes Manager, approximately $1.8 million and $1.4 million were expensed and included within property management fees and general and administrative expenses, respectively, on the consolidated statements of operations and comprehensive income (loss), and $0.2 million were capitalized to the property basis and included within buildings and improvements on the consolidated balances sheets based on the nature of the fee for the year ended December 31, 2024.

*SFR OP Note Payable*

On July 10, 2024, the SFR OP as borrower entered into the SFR OP Note Payable III with NREF, an entity that is advised by an affiliate of our Adviser. Subsequent to June 30, 2025, the SFR OP entered into an Amendment No. 1 to extend the maturity date to July 10, 2026. See Notes 5 and 14.

*The OSL Loan*

On February 25, 2025, the OP, as borrower, entered into the OSL Loan with OSL, an entity that may be deemed an affiliate of the Company's Adviser through common beneficial ownership. See Note 5.

*NexPoint Homes OSL Note*

On May 15, 2025, NexPoint SFR SPE 2, LLC, a wholly owned subsidiary of SFR OP, entered into the NexPoint Homes OSL Note with OSL, as lender. OSL is an entity that may be deemed an affiliate of the Company's Adviser through common beneficial ownership. See Note 5.

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**11. Commitments and Contingencies**

*Commitments*

In the normal course of business, the Company enters into various construction related purchase commitments with parties that provide these goods and services. In the event the Company were to terminate construction services prior to the completion of projects, the Company could potentially be committed to satisfy outstanding or uncompleted purchase orders with such parties. As of June 30, 2025, management does not anticipate any material deviations from schedule or budget related to rehabilitation projects currently in process.

*Contingencies*

In the normal course of business, the Company is subject to claims, lawsuits, and legal proceedings. While it is not possible to ascertain the ultimate outcome of all such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated balance sheets or consolidated statements of operations and comprehensive income (loss) of the Company. The Company is not involved in any material litigation nor, to management's knowledge, is any material litigation currently threatened against the Company or its properties or subsidiaries.

The Company is not aware of any environmental liability with respect to the properties it owns that could have a material adverse effect on the Company's business, assets, or results of operations. However, there can be no assurance that such a material environmental liability does not exist. The existence of any such material environmental liability could have an adverse effect on the Company's results of operations and cash flows.

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**12. Earnings (Loss) Per Share**

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to stockholders by the weighted average number of shares of the Company's Common Stock outstanding, which excludes any unvested RSUs, earned performance shares and PI Units issued pursuant to the 2018 LTIP or 2023 LTIP. Diluted earnings (loss) per share is computed by adjusting basic earnings (loss) per share for the dilutive effects of the assumed vesting of RSUs, earned performance shares and PI Units and the conversion of OP Units and vested PI Units to Common Stock. During periods of net loss, the assumed vesting of RSUs, earned performance shares and PI Units and the conversion of OP Units and vested PI Units to Common Stock is anti-dilutive and is not included in the calculation of diluted earnings (loss) per share. The following table sets forth the computation of basic and diluted earnings (loss) per share for the periods presented (in thousands, except per share amounts):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Numerator for loss per share:** |  |  |  |  |
| Net loss | $(69964) | $(38633) | $(109115) | $(82704) |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Dividends on and accretion to redemption value of Redeemable Series A Preferred stock | 2198 | 2030 | 4397 | 4237 |
| &nbsp;&nbsp;&nbsp;Net income attributable to Redeemable Series B Preferred stock | 1513 |  | 3026 |  |
| &nbsp;&nbsp;&nbsp;Net loss attributable to redeemable noncontrolling interests in the OP | (10494) | (5796) | (16369) | (12407) |
| &nbsp;&nbsp;&nbsp;Net loss attributable to redeemable noncontrolling interests in consolidated VIEs | (3968) | (5840) | (9671) | (11515) |
| &nbsp;&nbsp;&nbsp;Net loss attributable to noncontrolling interests in consolidated VIEs | (528) | (921) | (1343) | (1814) |
| **Net loss attributable to common stockholders** | $(58685) | $(28106) | $(89155) | $(61205) |
| **Denominator for earnings (loss) per share:** |  |  |  |  |
| Weighted average common shares outstanding - basic | 25724 | 25235 | 25594 | 25167 |
| &nbsp;&nbsp;&nbsp;Weighted average unvested RSUs, PI Units, Earned Performance Shares and OP Units (1) |  |  |  |  |
| Weighted average common shares outstanding - diluted | 25724 | 25235 | 25594 | 25167 |
| **Earnings (loss) per weighted average common share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(2.28) | $(1.11) | $(3.48) | $(2.43) |
| &nbsp;&nbsp;&nbsp;Diluted | $(2.28) | $(1.11) | $(3.48) | $(2.43) |

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(1)For the three months ended June 30, 2025 and 2024, excludes approximately 6,479,455 shares and 5,322,555 shares, respectively, related to the assumed vesting of RSUs, earned performance shares and PI Units and the conversion of OP Units and vested PI Units to Common Stock, as the effect would have been anti-dilutive. For the six months ended June 30, 2025 and 2024, excludes approximately 6,609,127 shares and 5,374,706 shares, respectively, related to the assumed vesting of RSUs, earned performance shares and PI Units and the conversion of OP Units and vested PI Units to Common Stock, as the effect would have been anti-dilutive.

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**13. Segment Reporting**

Following the formation of NexPoint Homes, the Company has two reportable segments: the VineBrook Portfolio and the NexPoint Homes Portfolio. These two portfolios serve different strategic purposes and employ different decision-making metrics in managing the respective pools of assets and allocating capital and other resources to the respective pools. The VineBrook Portfolio generally purchases homes to implement a value-add strategy, and the NexPoint Homes Portfolio generally purchases newer homes that require less rehabilitation. Based on the foregoing differences, the Company has identified the VineBrook Portfolio and the NexPoint Homes Portfolio as separate and distinct operating segments and has classified the two portfolios as two reportable segments. The Company's chief operating decision maker is our President and Chief Executive Officer. For a description of the services from which these reportable segments derive their revenues, see Notes 1 and 2.

The accounting policies of both segments are the same as those described in the Summary of Significant Accounting Policies. The chief operating decision maker primarily assesses performance for the segments separate and distinct from each other and decides how to allocate resources based primarily on segment net income (loss). The corporate related costs that support the VineBrook Portfolio and NexPoint Homes Portfolio are included in their respective segment to align with how the financial information is viewed by the chief operating decision maker. The measures of segment assets are based on each segment's total assets. The chief operating decision maker separately analyzes the operations of each distinct portfolio in the annual budget and forecasting process. Additionally, the chief operating decision maker also regularly monitors budget-to-actual variances, focusing on the major components of each segment's net income (loss), in deciding whether to reinvest profits into new or existing investments, into other parts of the entity or in deciding whether to dispose of particular investments.

The following table presents the reportable segments measures of profitability, along with significant segment expenses (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** |
| | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total Company** | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total Company** |
| Total Revenues | $83483 | $10721 | $94204 | $79993 | $11752 | $91745 |
| &nbsp;&nbsp;Property operating expenses | 19380 | 2022 | 21402 | 18184 | 1581 | 19765 |
| &nbsp;&nbsp;Real estate taxes and insurance | 14893 | 3019 | 17912 | 14409 | 2660 | 17069 |
| &nbsp;&nbsp;Advisory fees | 4182 | 788 | 4970 | 4289 | 898 | 5187 |
| &nbsp;&nbsp;General and administrative expenses | 54147 | 1155 | 55302 | 18642 | (604) | 18038 |
| &nbsp;&nbsp;Depreciation and amortization | 26696 | 5496 | 32192 | 23979 | 7399 | 31378 |
| &nbsp;&nbsp;Interest expense | 28244 | 6873 | 35117 | 26623 | 7735 | 34358 |
| &nbsp;&nbsp;Other segment expense/(income) (1) | (3284) | 557 | (2727) | (1177) | 5760 | 4583 |
| Segment net loss | $(60775) | $(9189) | $(69964) | $(24956) | $(13677) | $(38633) |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
| | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total Company** | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total Company** |
| Total Revenues | $166011 | $20954 | $186965 | $158282 | $23748 | $182030 |
| &nbsp;&nbsp;Property operating expenses | 39016 | 4139 | 43155 | 35844 | 3550 | 39394 |
| &nbsp;&nbsp;Real estate taxes and insurance | 30063 | 5048 | 35111 | 28924 | 5332 | 34256 |
| &nbsp;&nbsp;Advisory fees | 8383 | 1571 | 9954 | 8633 | 1813 | 10446 |
| &nbsp;&nbsp;General and administrative expenses | 70108 | 6243 | 76351 | 38552 | 703 | 39255 |
| &nbsp;&nbsp;Depreciation and amortization | 51173 | 11024 | 62197 | 48016 | 15418 | 63434 |
| &nbsp;&nbsp;Interest expense | 56849 | 13610 | 70459 | 51411 | 16251 | 67662 |
| &nbsp;&nbsp;Other segment expense/(income) (1) | (2922) | 1775 | (1147) | 2647 | 7640 | 10287 |
| Segment net loss | $(86659) | $(22456) | $(109115) | $(55745) | $(26959) | $(82704) |

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(1)Other segment expense/(income) includes property management fees, loss on extinguishment of debt, loss on sales and impairment of real estate, net, investment income, reversal of (provision for) loan losses, loss on forfeited deposits and internalization costs.

The following table presents measures of each segment's assets and select balance sheet data for the reportable segments (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total Company** | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total Company** |
| **Assets** | | | | | | |
| Total assets | $2506681 | $593378 | $3100059 | $2578820 | $630628 | $3209448 |

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**14. Subsequent Events**

The Company evaluated subsequent events through the date the consolidated financial statements were issued, to determine if any significant events occurred subsequent to the balance sheet date that would have a material impact on these consolidated financial statements and determined the following events were material:

*Dispositions*

Subsequent to June 30, 2025, the Company disposed of 95 homes in the VineBrook Portfolio that were classified as held for sale as of June 30, 2025 for net proceeds of approximately $12.4 million.

*Homes Classified as Held For Sale Subsequent to* June 30, 2025

Subsequent to June 30, 2025, the Company moved 234 homes in the VineBrook Portfolio to held for sale and as of August 11, 2025, 473 homes in total were classified as held for sale.

*JPM Facility*

On July 28, 2025, the Company entered into Amendment No. 6 to the JPM Facility, wherein the maturity date was extended to October 31, 2025, and the commitment was reduced to the amount equal to the advances outstanding as of the Amendment No. 6 effective date and all repayments will permanently reduce the commitment. Subsequent to June 30, 2025, the Company paid down approximately $0.5 million on the JPM Facility. As of August 11, 2025, $95.6 million remains outstanding under the JPM Facility.

*OSL Loan II*

On August 7, 2025, the OP, as borrower, entered into a secured $10.0 million revolving credit agreement (the "OSL Loan II") with OSL. OSL is an entity that may be deemed an affiliate of the Company's Adviser through common beneficial ownership. The OSL Loan II provides for a 2-year, interest-only loan at a 9.0% fixed interest rate and is guaranteed by the Company. As of August 14, 2025, the outstanding balance of the OSL Loan II was approximately $10.0 million.

*SFR OP Note Payable III*

On July 9, 2025, the SFR OP entered into Amendment No. 1 to the SFR OP Note Payable III, wherein the maturity date was extended to July 10, 2026. On July 31, 2025, the SFR OP drew an additional $3.4 million on the promissory note, and the outstanding balance on the SFR OP Note Payable III as of August 11, 2025, is $5.0 million.

*NAV Determination*

On August 14, 2025, in accordance with the Valuation Methodology, the Pricing Committee determined that the Company's NAV per share calculated on a fully diluted basis was $54.25 as of June 30, 2025. Common Stock and OP Units issued under the respective DRIPs will be issued a 3.0% discount to the NAV per share in effect.

*Separation Agreement* 

As previously disclosed, in connection with the Externalization, on June 10, 2025 (the "Separation Date"), the Company terminated the employment of Dana Sprong and Ryan McGarry (each, an "Executive"). On July 21, 2025, each Executive entered into a separation agreement and release of claims (each, a "Separation Agreement"). As a result, as of July 21, 2025, Mr. Sprong has resigned from the Company's Board in connection with his execution of the Separation Agreement.

Pursuant to the Separation Agreements, each Executive will receive a lump sum payment of $1,650,000, subject to applicable taxes and withholdings, payable on the 60th calendar day following the Separation Date. Additionally, any equity awards that are unvested as of the Separation Date will vest on the 55th day following the Separation Date, in accordance with the terms of the applicable award agreement, including 237,944.16 PI Units and 24,785.844 performance shares of the Company.

The Severance Agreement additionally contains, among other things, mutual non-disparagement provisions and a mutual release of claims by each Executive and the Company.

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**Item 2. Management**'**s Discussion and Analysis of Financial Condition and Results of Operations**

*The following is a discussion and analysis of our financial condition and our historical results of operations. The following should be read in conjunction with our financial statements and accompanying notes included herein and with our Annual Report on Form 10-K, filed with the SEC on March 28, 2025. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those projected, forecasted, or expected in these forward-looking statements as a result of various factors, including, but not limited to, those discussed below and elsewhere in this Form 10-Q. See "Cautionary Note Regarding Forward-Looking Statements" in this report and the information under the heading "Risk Factors" in Part I, Item IA, "Risk Factors" of our Annual Report. Our management believes the assumptions underlying the Company's financial statements and accompanying notes are reasonable. However, the Company's financial statements and accompanying notes may not be an indication of our financial condition and results of operations in the future.*

**Overview** 

The Company is an owner and operator of single-family rental homes that are rented to residents under leases with typical durations of one year. The Company's mission is to provide our residents with affordable, safe, clean and functional homes with a high level of service through institutional, quality management. Our investment objective is to acquire properties with cash flow growth potential, renovate (when appropriate) and maintain our homes to deliver a high-quality resident experience, while providing quarterly cash distributions and seeking long-term capital appreciation for our stockholders. Our investment focus has historically been on the affordable and workforce segments of the housing industry, but we are not precluded from investing in homes in the higher-cost segments of the housing industry. We typically acquire homes in locations where we believe we can contribute to revitalizing the surrounding community.

The Company has two reportable segments, the VineBrook Portfolio and the NexPoint Homes Portfolio. The VineBrook Portfolio is the Company's primary reportable segment comprised of 20,449 homes as of June 30, 2025 which represents a significant majority of the Company's consolidated portfolio and operations. The VineBrook Portfolio is the legacy reportable segment and generally purchases homes to implement a value-add strategy, although Company management has begun to underwrite acquisitions of newer homes in "built-to-rent" ("BTR") communities. The NexPoint Homes Portfolio is a reportable segment added during 2022 comprised of 2,103 homes as of June 30, 2025 and represents a minority of the Company's consolidated portfolio and operations. The NexPoint Homes Portfolio is a consolidated and supplemental reportable segment that generally purchases newer homes that require less rehabilitation compared to the VineBrook Portfolio. As of June 30, 2025, we, through our OP and its consolidated subsidiaries, owned and operated 22,552 single family rental homes located in 20 states.

We are primarily focused on acquiring, renovating (when appropriate), leasing, maintaining and otherwise managing single family rental home investments primarily located in large to medium size cities and suburbs located in the midwestern, heartland and southeastern United States. We have historically employed targeted management and a value-add program at a majority of our homes in an attempt to improve rental rates and the net operating income ("NOI") at our homes, enhance cash flow, provide quarterly cash distributions and seek long-term capital appreciation for our stockholders as well as provide our residents with affordable, safe and clean homes with a high quality of service. In the future, while we may continue to buy older homes and renovate them to add value and increase rental rates, we also intend to invest in newer homes in BTR communities in higher growth markets within our geographic footprint. We are externally advised by the Adviser through the Advisory Agreement, which will automatically renew on the anniversary of the renewal date for one-year terms thereafter, unless otherwise terminated.

The properties comprising the VineBrook Portfolio as of June 30, 2025 were managed exclusively by a subsidiary of the OP. On June 10, 2025, the OP entered into the Externalization Agreements with the Evergreen Manager. Pursuant to the Externalization Agreements, the Evergreen Manager will provide property management services to and generally operate the VineBrook Portfolio as well as provide certain asset management, acquisition, disposition and other services previously provided by a subsidiary of the OP. On July 18, 2025, the initial group of properties within the VineBrook Portfolio were transitioned to the Evergreen Manager platform, with the remaining properties to be transferred no later than the end of 2025. On the Transition Effective Date, all of the Legacy VineBrook Management Agreements will have terminated. As a result of the Management Agreements, on the Transition Effective Date the VineBrook Portfolio will be externally managed by the Evergreen Manager.

The NexPoint Homes Portfolio has transitioned property management to Mynd, as discussed in Note 4 of our consolidated financial statements.

On October 16, 2019, Highland Capital Management, L.P. ("Highland"), a former affiliate of our Adviser, filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the District of Delaware (the "Highland Bankruptcy"), which was subsequently transferred to the United States Bankruptcy Court for the Northern District of Texas (the "Bankruptcy Court"). On January 9, 2020, the Bankruptcy Court approved a change of control of Highland, which involved the resignation of James Dondero as the sole director of, and the appointment of an independent board to, Highland's general partner. On September 21, 2020, Highland filed a plan of reorganization and disclosure statement with the Bankruptcy Court, which was subsequently amended (the "Fifth Amended Plan of Reorganization"). On October 9, 2020, Mr. Dondero resigned as an employee of Highland and as portfolio manager for all Highland-advised funds. As a result of these changes, NexPoint Advisors, L.P. ("NexPoint") is no longer under common control with Highland and therefore Highland is no longer affiliated with us. On February 22, 2021, the Bankruptcy Court entered an order confirming Highlands's Fifth Amended Plan of Reorganization (the "Plan"), which became effective on August 11, 2021. On October 15, 2021, Marc S. Kirschner, as litigation trustee of a litigation subtrust formed pursuant to the Plan, filed a lawsuit (the "Bankruptcy Trust Lawsuit") against various persons and entities, including NexPoint and James Dondero. On March 24, 2023, the litigation trustee filed a motion for leave to stay the Bankruptcy Trust Lawsuit, which was granted by the Bankruptcy Court on April 4, 2023. Per the court's order, the Bankruptcy Trust Lawsuit is stayed until any party provides 30 days' notice of the intent to resume the adversary proceeding, with all pending deadlines extended for a period of time commensurate with the length of stay. As of the date of this filing, the Bankruptcy Trust Lawsuit continues to be stayed. On February 8, 2023, UBS Securities LLC and UBS AG London (collectively, "UBS") filed a lawsuit in the Supreme Court of the State of New York, County of New York related to a default that occurred in 2009 on a warehouse facility between UBS and funds affiliated with Highland. The lawsuit makes claims against several persons and entities, including Mr. Dondero, the President of the Adviser, seeking to collect on $1.3 billion in judgments UBS obtained against entities that were managed indirectly by Highland (the "UBS Lawsuit"). On March 7, 2023, the matter was removed to the United States District Court for the Southern District of New York. On April 6, 2023, UBS moved to have the case remanded to New York state court. The federal court remanded the state-law causes of action and retained and stayed the federal cause of action. On February 26, 2024, several of the respondents, including Mr. Dondero, filed motions in state court to dismiss the UBS Lawsuit on various grounds. A hearing was held on July 8, 2024. The court dismissed the claims against one respondent, CLO HoldCo, Ltd., for lack of personal jurisdiction in a July 12, 2024 order. On March 26, 2025, the court entered an order denying the remaining motions to dismiss and directed the respondents to file an answer to the UBS Lawsuit within 20 days, which they did. Mr. Dondero is appealing the denial of the motion to dismiss to the Appellate Division of the Supreme Court of the State of New York. Neither the Bankruptcy Trust Lawsuit nor the UBS Lawsuit include claims related to our business or our assets. Our Adviser and Mr. Dondero have informed us they believe the Bankruptcy Trust Lawsuit has no merit, and Mr. Dondero has informed us he believes the UBS Lawsuit has no merit; we have been advised that the defendants named in each of the lawsuits intend to vigorously defend against the claims. We do not expect the Bankruptcy Trust Lawsuit or the UBS Lawsuit will have a material effect on our business, results of operations or financial condition.

The United States government announced a comprehensive set of tariffs in the second quarter of 2025. Since then, the United States government has paused the implementation of certain of these tariffs. Although certain tariffs have gone into effect, the timing and scope of such tariffs is currently uncertain. Such tariffs could impact our results of operations by increasing the costs of various goods, including construction materials. The impact of such tariffs is subject to uncertainties regarding the timing of their implementation, the magnitude of such tariffs and possible exemptions for certain goods, among other uncertainties.

Our website is located at www.vinebrookhomes.com. From time to time, we may use our website as a distribution channel for material Company information.

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*Pathway to Homeownership Program*

In 2024, we began our "Pathway to Homeownership" program, providing qualified residents with opportunities for home ownership. This initiative empowers individuals and families residing in a VineBrook Portfolio home to purchase their home outright by securing a conventional mortgage, enabling them to build equity in an affordable property. Residents of VineBrook Portfolio homes also have access to nationally recognized financial counseling and literacy resources at no additional cost to them through VineBrook's partnership with Operation Hope. These services include workshops that focus on topics such as money management, credit and homeownership, all geared to help residents attain financial freedom. VineBrook is one of the only large single-family rental companies dedicated to providing affordable and workforce housing. Through the Pathway to Homeownership, we have added yet another option for affordable, accessible single-family living that otherwise might not be available in a supply-challenged market.

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**Our VineBrook Portfolio** 

Since our formation, we have significantly grown our VineBrook Portfolio. When the Company began operations on November 1, 2018, the Initial Portfolio consisted of 4,129 homes located in Ohio, Kentucky and Indiana. As of June 30, 2025 and 2024, the VineBrook Portfolio consisted of 20,449 and 21,104 homes, respectively, in 18 states. As of June 30, 2025 and 2024, the VineBrook Portfolio had an occupancy of 95.7% and 95.8%, respectively, and a weighted average monthly effective rent of $1,325 and $1,264, respectively, per occupied home. As of June 30, 2025 and 2024, the occupancy of stabilized homes in our VineBrook Portfolio was 95.4% and 95.8%, respectively, and the weighted average monthly effective rent of occupied stabilized homes was $1,338 and $1,283, respectively. As of June 30, 2025 and 2024, 23.8% and 27.4%, respectively, of homes in our VineBrook Portfolio were excluded from being stabilized either because the homes were in rehabilitation or were purchased with residents in place or were classified as held for sale. The table below provides summary information regarding our VineBrook Portfolio as of June 30, 2025.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Market** | **State** | **# of Homes** | **Portfolio Occupancy** | **Average Effective Rent** | **# of Stabilized Homes** | **Stabilized Occupancy** | **Stabilized Average Monthly Rent** |
| Cincinnati | OH, KY | 2777 | 95.0% | $1378 | 2332 | 94.6% | $1398 |
| Dayton | OH | 2706 | 96.6% | 1299 | 2560 | 96.7% | 1295 |
| Columbus | OH | 1614 | 95.4% | 1357 | 1481 | 95.1% | 1359 |
| St. Louis | MO | 1715 | 95.6% | 1237 | 1133 | 94.8% | 1261 |
| Indianapolis | IN | 1394 | 96.0% | 1327 | 1107 | 95.7% | 1344 |
| Birmingham | AL | 1027 | 95.6% | 1321 | 668 | 94.3% | 1331 |
| Columbia | SC | 941 | 94.4% | 1456 | 605 | 93.1% | 1482 |
| Kansas City | MO, KS | 1073 | 95.0% | 1365 | 822 | 95.0% | 1380 |
| Jackson | MS | 778 | 96.9% | 1300 | 640 | 96.7% | 1314 |
| Memphis | TN, MS | 1294 | 95.0% | 1111 | 914 | 94.5% | 1129 |
| Augusta | GA, SC | 626 | 93.9% | 1259 | 442 | 93.0% | 1312 |
| Milwaukee | WI | 756 | 97.0% | 1376 | 571 | 96.5% | 1426 |
| Atlanta | GA | 431 | 100.0% | 1667 | 164 | 100.0% | 1734 |
| Pittsburgh | PA | 327 | 96.9% | 1199 | 262 | 96.9% | 1230 |
| Pensacola | FL | 377 | 96.6% | 1550 | 212 | 98.6% | 1516 |
| Greenville | SC | 365 | 95.3% | 1394 | 264 | 95.5% | 1456 |
| Little Rock | AR | 254 | 94.9% | 1084 | 240 | 94.6% | 1089 |
| Huntsville | AL | 273 | 95.6% | 1421 | 200 | 95.0% | 1448 |
| Raeford | NC | 250 | 95.2% | 1278 | 161 | 95.7% | 1310 |
| Portales | NM | 350 | 95.4% | 1178 | 137 | 97.1% | 1210 |
| Omaha | NE, IA | 265 | 97.0% | 1349 | 248 | 96.8% | 1358 |
| Triad | NC | 218 | 96.8% | 1463 | 177 | 96.0% | 1484 |
| Montgomery | AL | 288 | 95.8% | 1303 | 242 | 95.5% | 1317 |
| Charleston | SC |  | n/a | n/a | n/a | n/a | n/a |
| **Sub-Total/Average** |  | **20099** | **95.7%** | $**1325** | **15582** | **95.4%** | $**1338** |
| Held for Sale |  | 350 | n/a | n/a | n/a | n/a | n/a |
| **Total/Average** |  | **20449** | **95.7%** | $**1325** | **15582** | **95.4%** | $**1338** |

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As of December 31, 2024, the VineBrook Portfolio consisted of 20,804 homes in 18 states with an occupancy of 96.3% and a weighted average monthly effective rent of $1,296 per occupied home. As of December 31, 2024, the occupancy of stabilized homes in our VineBrook Portfolio was 95.7% and the weighted average monthly effective rent of occupied stabilized homes was $1,309. As of December 31, 2024, 22.7% of homes in our VineBrook Portfolio were excluded from being stabilized either because the homes were in rehabilitation or were purchased with residents in place. The table below provides summary information regarding our VineBrook Portfolio as of December 31, 2024:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Market** | **State** | **# of Homes** | **Portfolio Occupancy** | **Average Effective Rent** | **# of Stabilized Homes** | **Stabilized Occupancy** | **Stabilized Average Monthly Rent** |
| Cincinnati | OH, KY | 2866 | 96.2% | $1360 | 2367 | 95.8% | $1376 |
| Dayton | OH | 2717 | 97.1% | 1268 | 2559 | 97.1% | 1264 |
| Columbus | OH | 1626 | 96.0% | 1317 | 1488 | 95.6% | 1319 |
| St. Louis | MO | 1773 | 94.9% | 1195 | 1134 | 93.5% | 1217 |
| Indianapolis | IN | 1403 | 96.7% | 1302 | 1087 | 96.2% | 1318 |
| Birmingham | AL | 1035 | 96.3% | 1290 | 635 | 95.3% | 1301 |
| Columbia | SC | 949 | 95.9% | 1418 | 581 | 94.7% | 1453 |
| Kansas City | MO, KS | 1086 | 96.9% | 1338 | 813 | 96.4% | 1350 |
| Jackson | MS | 802 | 96.5% | 1255 | 646 | 96.1% | 1259 |
| Memphis | TN, MS | 1331 | 94.4% | 1080 | 897 | 92.9% | 1093 |
| Augusta | GA, SC | 635 | 97.5% | 1237 | 433 | 97.0% | 1308 |
| Milwaukee | WI | 770 | 96.4% | 1332 | 557 | 95.5% | 1387 |
| Atlanta | GA | 655 | 96.5% | 1631 | 265 | 92.8% | 1681 |
| Pittsburgh | PA | 340 | 97.4% | 1159 | 267 | 97.4% | 1187 |
| Pensacola | FL | 300 | 95.0% | 1461 | 200 | 92.5% | 1479 |
| Greenville | SC | 376 | 96.8% | 1356 | 266 | 95.9% | 1418 |
| Little Rock | AR | 260 | 96.9% | 1072 | 243 | 97.1% | 1076 |
| Huntsville | AL | 274 | 98.5% | 1416 | 195 | 97.9% | 1430 |
| Raeford | NC | 250 | 98.0% | 1272 | 151 | 97.4% | 1318 |
| Portales | NM | 350 | 96.0% | 1171 | 137 | 91.2% | 1185 |
| Omaha | NE, IA | 272 | 98.9% | 1322 | 252 | 99.2% | 1334 |
| Triad | NC | 219 | 96.8% | 1432 | 174 | 96.0% | 1461 |
| Montgomery | AL | 295 | 94.9% | 1272 | 242 | 94.6% | 1290 |
| Charleston | SC |  | n/a | n/a | n/a | n/a | n/a |
| **Sub-Total/Average** |  | **20584** | **96.3%** | $**1296** | **15589** | **95.7%** | $**1309** |
| Held for Sale |  | 220 | n/a | n/a | n/a | n/a | n/a |
| **Total/Average** |  | **20804** | **96.3%** | $**1296** | **15589** | **95.7%** | $**1309** |

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**NexPoint Homes Portfolio**

NexPoint Homes is an owner and operator of single-family rental homes. As of June 30, 2025 and 2024, the NexPoint Homes Portfolio consisted of 2,103 and 2,486 single-family rental homes, respectively, primarily located in the midwestern and southeastern United States. As of June 30, 2025 and 2024, the NexPoint Homes Portfolio had an occupancy of approximately 96.0% and 91.5%, respectively, and a weighted average monthly effective rent of $1,788 and $1,702, respectively, per occupied home. Lease durations are typically one year. NexPoint Homes' activities include acquiring, renovating, developing, leasing and operating single-family rental homes. For the NexPoint Homes Portfolio, a home is classified as stabilized once it has been rented or has been rehabilitated by the Company and available for rent for a period of greater than 30 days. Additionally, because stabilized homes are expected to be held for at least one year, stabilized homes also exclude any assets held for sale. As of June 30, 2025 and 2024, the number of stabilized homes in the NexPoint Homes Portfolio was 2,049 and 2,298, respectively, the occupancy of stabilized homes was 96.0% and 95.0%, and the weighted average monthly effective rent of stabilized occupied homes was $1,788 and $1,702, respectively. As of June 30, 2025 and 2024, 2.6% and 4.0% of homes in our NexPoint Homes Portfolio were excluded from being stabilized, respectively, because the homes were classified as held for sale.

The table below provides summary information regarding the NexPoint Homes Portfolio as of June 30, 2025:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Market** | **State** | **# of Homes** | **Portfolio Occupancy** | **Average Effective Rent** | **# of Stabilized Homes** | **Stabilized Occupancy** | **Stabilized Average Monthly Rent** |
| Atlanta | GA | 201 | 95.5% | $2051 | 201 | 95.5% | $2051 |
| Birmingham | AL | 120 | 93.3% | 1648 | 120 | 93.3% | 1648 |
| Charlotte | NC | 56 | 98.2% | 2001 | 56 | 98.2% | 2001 |
| Dallas/Ft Worth | TX | 51 | 94.1% | 2301 | 51 | 94.1% | 2301 |
| Fayetteville | AR | 302 | 97.7% | 1736 | 302 | 97.7% | 1736 |
| Huntsville | AL | 70 | 94.3% | 1860 | 70 | 94.3% | 1860 |
| Kansas City | MO, KS | 146 | 98.6% | 1993 | 146 | 98.6% | 1993 |
| Little Rock | AR | 210 | 95.2% | 1485 | 210 | 95.2% | 1484 |
| Oklahoma City | OK | 325 | 96.3% | 1737 | 325 | 96.3% | 1737 |
| San Antonio | TX | 199 | 95.5% | 1718 | 199 | 95.5% | 1718 |
| Tulsa | OK | 157 | 96.2% | 1714 | 157 | 96.2% | 1714 |
| Other (1) | AL,FL,KS,TN,TX | 212 | 94.8% | 1840 | 212 | 94.8% | 1840 |
| **Sub-Total/Average** |  | **2049** | **96.0%** | **1788** | **2049** | **96.0%** | **1788** |
| Held for Sale |  | 54 | n/a | n/a | n/a | n/a | n/a |
| **Total/Average** |  | **2103** | **96.0%** | **1788** | **2049** | **96.0%** | **1788** |

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(1) Contains markets that have less than 50 homes which include Mobile, Memphis, Jacksonville, Orlando, Tampa, Wichita, Austin and Houston.

The table below provides summary information regarding the NexPoint Homes Portfolio as of December 31, 2024:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Market** | **State** | **# of Homes** | **Portfolio Occupancy** | **Average Effective Rent** | **# of Stabilized Homes** | **Stabilized Occupancy** | **Stabilized Average Monthly Rent** |
| Atlanta | GA | 198 | 88.9% | $2027 | 198 | 88.9% | $2027 |
| Birmingham | AL | 120 | 89.2% | 1576 | 120 | 89.2% | 1576 |
| Charlotte | NC | 56 | 98.2% | 1934 | 56 | 98.2% | 1934 |
| Dallas/Ft Worth | TX | 51 | 90.2% | 2328 | 51 | 90.2% | 2328 |
| Fayetteville | AR | 317 | 91.5% | 1688 | 317 | 91.5% | 1688 |
| Huntsville | AL | 70 | 88.6% | 1828 | 70 | 88.6% | 1828 |
| Kansas City | MO, KS | 146 | 96.6% | 1928 | 146 | 96.6% | 1928 |
| Little Rock | AR | 210 | 91.4% | 1433 | 210 | 91.4% | 1433 |
| Memphis | TN, MS | 56 | 92.9% | 1792 | 56 | 92.9% | 1792 |
| Oklahoma City | OK | 341 | 90.9% | 1677 | 341 | 90.9% | 1677 |
| San Antonio | TX | 199 | 91.5% | 1709 | 199 | 91.5% | 1709 |
| Tulsa | OK | 158 | 92.4% | 1652 | 158 | 92.4% | 1652 |
| Other (1) | AL,FL,KS,TX | 169 | 89.9% | 1804 | 169 | 89.9% | 1804 |
| **Sub-Total/Average** |  | **2091** | **91.4%** | $**1741** | **2091** | **91.4%** | $**1741** |
| Held for Sale |  | 156 | n/a | n/a | n/a | n/a | n/a |
| **Total/Average** |  | **2247** | **91.4%** | $**1741** | **2091** | **91.4%** | $**1741** |

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(1) Contains markets that have less than 50 homes which include Mobile, Jacksonville, Orlando, Tampa, Wichita, Austin and Houston.

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**Components of Revenues and Expenses**

The following is a description of the components of our revenues and expenses.

***Revenues***

<u>Rental Income</u>*.* Our revenues are derived primarily from rental revenue, net of any concessions and uncollectible amounts, collected from residents of our single-family rental homes under lease agreements which typically have a term of one year. Also included are utility reimbursements, late fees, pet fees, and other rental fees charged to residents.

<u>Other income</u>*.* Other income includes ancillary income earned from residents such as non-refundable fees, application fees, move-out fees, and other miscellaneous fees charged to residents.

***Expenses***

<u>Property operating expenses</u>*.* Property operating expenses include property maintenance costs, turn costs (costs incurred in making a home ready for the next resident after the prior resident vacates the home), leasing costs and the associated salary and employee benefit costs, utilities, vehicle leases and HOA fees. Certain property operating costs are capitalized in accordance with our capitalization policy. Certain turn costs are capitalized to buildings and improvements if they improve the condition of the home or return it to its original condition and exceed $1,500 in cost. Upon being occupied, expenditures up to $1,500 for ordinary repairs and maintenance thereafter are expensed as incurred, and we capitalize expenditures that improve the condition of the home in excess of $1,500.

<u>Real estate taxes and insurance</u>*.* Real estate taxes include the property taxes assessed by local and state authorities depending on the location of each home. Insurance includes the cost of property, general liability, and other needed insurance for each property. Certain real estate taxes and insurance costs are capitalized in accordance with our capitalization policy.

<u>Property management fees</u>*.* Property management fees include fees paid to Mynd for managing each property in the NexPoint Homes Portfolio. Following the Internalization of the Legacy VineBrook Manager in 2023, property management fees were eliminated in consolidation for the VineBrook Portfolio until the Externalization occurred in June 2025.

<u>Advisory fees</u>*.* Advisory fees include the fees paid to our Adviser pursuant to the Advisory Agreement and the NexPoint Homes Adviser pursuant to the NexPoint Homes Advisory Agreement (see Note 10 to our consolidated financial statements).

<u>General and administrative expenses</u>*.* General and administrative expenses include, but are not limited to, equity-based compensation expense, legal fees, corporate payroll and personnel costs, tax preparation fees, corporate taxes, Board fees, costs of marketing, professional fees, audit fees, general office supplies, centralized technology support and other expenses associated with our corporate and administrative functions. After the Externalization, shared-services fees will also be included in general and administrative expenses.

<u>Depreciation and amortization</u>*.* Depreciation and amortization costs primarily include depreciation of our homes and amortization of right of use assets, recognized over their respective useful lives.

<u>Interest expense</u>*.* Interest expense primarily includes the cost of interest expense on debt, payments and receipts related to our interest rate derivatives, the change in fair value of interest rate derivatives not designated as hedges, the amortization of deferred financing costs and the amortization of bond discounts. Certain interest costs are capitalized in accordance with our capitalization policy.

<u>Loss on extinguishment of debt.</u> Loss on extinguishment of debt includes prepayment penalties and defeasance costs, the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the early repayment of debt and other costs incurred in a debt extinguishment.

<u>Gain/(loss) on sales and impairment of real estate, net</u>*.* Gain/(loss) on sales and impairment of real estate, net, includes the gain or loss recognized upon sales of homes and impairment charges recorded on real estate assets, including casualty gains or losses incurred on homes. Gain/(loss) on sales of real estate is calculated by deducting the carrying value of the real estate and costs incurred to sell the properties from the sales prices of the homes. Impairment of real estate assets is calculated by calculating the lower of the carrying amount or estimated fair value less estimated costs to sell for held for sale properties. Casualty gains and losses include gains or losses incurred on homes, net of insurance proceeds received, that experience an infrequent and unusual event such as a natural disaster or fire.

<u>Investment income.</u> Investment income includes interest income from the retained ABS II certificates and interest income from preferred equity investments. See Notes 5, 6 and 10 to our consolidated financial statements.

<u>Loss on forfeited deposits</u>. Loss on forfeited deposits includes forfeitures of deposits related to the termination of acquisition agreements in the NexPoint Homes Portfolio.

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**Consolidated Results of Operations for the Three Months Ended June 30, 2025 and 2024**

The following table sets forth a summary of our consolidated operating results for the three months ended June 30, 2025 and 2024 (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | |
| | **2025** | **2024** |<br>**$ Change** |
| Total revenues | $94204 | $91745 | $2459 |
| Total expenses | (167528) | (126635) | (40893) |
| Loss on extinguishment of debt | (195) | (73) | (122) |
| Gain/(loss) on sales and impairment of real estate, net | 2845 | (5234) | 8079 |
| Investment income | 716 | 1819 | (1103) |
| Change in unrealized loss on investments |  | (255) | 255 |
| Loss on forfeited deposits | (6) |  | (6) |
| Net loss | (69964) | (38633) | (31331) |
| Dividends on and accretion to redemption value of Redeemable Series A Preferred stock | 2198 | 2030 | 168 |
| Net income attributable to redeemable Series B Preferred stock | 1513 |  | 1513 |
| Net loss attributable to redeemable noncontrolling interests in the OP | (10494) | (5796) | (4698) |
| Net loss attributable to redeemable noncontrolling interests in consolidated VIEs | (3968) | (5840) | 1872 |
| Net loss attributable to noncontrolling interests in consolidated VIEs | (528) | (921) | 393 |
| Net loss attributable to stockholders | $(58685) | $(28106) | $(30579) |

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The change in our net loss between the periods primarily relates to an increase in property operating expenses, real estate taxes and insurance, interest expense, depreciation and amortization, general and administrative expenses and loss on sales and impairment of real estate, partially offset by an increase in rental income and decreases in property management fees, advisory fees and investment income.

***Revenues***

<u>Rental income</u>*.* Rental income was $90.8 million for the three months ended June 30, 2025 compared to $90.8 million for the three months ended June 30, 2024, with no change year over year. The lack of change between the periods was primarily due to an increase in stabilized homes and an increase in rental rates over the past year, offset by a decrease in rental income due to an increase in dispositions.

<u>Other income</u>. Other income was $3.4 million for the three months ended June 30, 2025 compared to $1.0 million for the three months ended June 30, 2024, which was an increase of $2.4 million. The increase between the periods was primarily due to the increased adoption of Conservice, a third party utility billing and management company, providing more consistent and better collection of utility fees in the current year.

***Expenses*** 

<u>Property operating expenses</u>. Property operating expenses were $21.4 million for the three months ended June 30, 2025 compared to $19.8 million for the three months ended June 30, 2024, which was an increase of $1.6 million. The increase between the periods was primarily due to an increase in turnover, utilities, and maintenance costs in the three months ended June 30, 2025 associated with the growth in stabilized homes and transition to Conservice for utilities. For the three months ended June 30, 2025 and 2024, turn costs represented approximately 17% and 21%, respectively, of our property operating expenses.

<u>Real estate taxes and insurance</u>*.* Real estate taxes and insurance were $17.9 million for the three months ended June 30, 2025 compared to $17.1 million for the three months ended June 30, 2024, which was an increase of $0.8 million. The increase between the periods was primarily due to increases in real estate tax assessments as a result of increases in property valuations, partially offset by dispositions in the VineBrook Portfolio and NexPoint Homes Portfolio.

<u>Property management fees</u>*.* Property management fees were $0.6 million for the three months ended June 30, 2025 compared to $0.8 million for the three months ended June 30, 2024, which was a decrease of $0.2 million. The decrease between the periods was primarily due to the transition of property management of the NexPoint Homes Portfolio to Mynd on September 19, 2024.

<u>Advisory fees</u>*.* Advisory fees were $5.0 million for the three months ended June 30, 2025 compared to $5.2 million for the three months ended June 30, 2024, which was a decrease of $0.2 million. The decrease between the periods was primarily due to the decrease in assets under management for the VineBrook Portfolio.

<u>General and administrative expenses</u>*.* General and administrative expenses were $55.3 million for the three months ended June 30, 2025 compared to $18.0 million for the three months ended June 30, 2024, which was an increase of $37.3 million. The increase between the periods was primarily due to increases in equity-based compensation costs related to the acceleration of RSU and PIU vesting, and an increase in legal fees following the Externalization of the Legacy VineBrook Manager to the Evergreen Manager on June 10, 2025. Of the $55.3 million of general and administrative expenses, $12.8 million are related to execution of the Externalization and $11.5 million are related to accelerated RSU award vestings.

<u>Depreciation and amortization</u>*.* Depreciation and amortization costs were $32.2 million for the three months ended June 30, 2025 compared to $31.4 million for the three months ended June 30, 2024, which was an increase of $0.8 million. The increase between the periods was primarily due to the increase in depreciation on capitalized costs partially offset by disposition of homes over the past year.

<u>Interest expense</u>*.* Interest expense was $35.1 million for the three months ended June 30, 2025 compared to $34.4 million for the three months ended June 30, 2024, which was an increase of $0.7 million. The increase between the periods was primarily due to an increase in non-cash discount amortization and an increase in non-cash interest expense related to derivatives not designated as hedging instruments, partially offset by a decrease in interest on debt as we made pay downs on debt outstanding over the past year. The following table details the various costs included in interest expense for the three months ended June 30, 2025 and 2024 (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | |
| | **2025** | **2024** |<br>**$ Change** |
| Gross interest cost | $35177 | $34607 | $570 |
| Capitalized interest | (60) | (249) | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $35117 | $34358 | $759 |

---

<u>Loss on extinguishment of debt.</u> Loss on extinguishment of debt was $0.2 million for the three months ended June 30, 2025 compared to $0.1 million for the three months ended June 30, 2024, which was an increase of $0.1 million. The increase between the periods was primarily due to an increase in debt extinguishment activity for the three months ended June 30, 2025.

<u>Gain/(loss) on sales and impairment of real estate, net</u>*.* Gain on sales and impairment of real estate was $2.8 million for the three months ended June 30, 2025 compared to a loss of $5.2 million for the three months ended June 30, 2024, which was an increase of $8.0 million. The increase between the periods was primarily due to an increase in impairment charges on held for sale assets and an increase in home sales in the Atlanta market, where properties generally carry higher net asset values. The Company strategically identifies homes for disposal and expects the disposal of these properties to be accretive to the Portfolio's results of operation and overall performance.

<u>Investment income</u>*.* Investment income was $0.7 million for the three months ended June 30, 2025 compared to $1.8 million for the three months ended June 30, 2024, which was a decrease of $1.1 million. The decrease between the periods was primarily due to a decrease in interest income from a preferred equity investments.

<u>Loss on forfeited deposits</u>. Loss on forfeited deposits was less than $0.1 million for the three months ended June 30, 2025 compared to no loss on forfeited deposits for the three months ended June 30, 2024, which was an increase of less than $0.1 million. The increase between the periods was primarily due to legal fees and other transaction costs associated with the termination of an acquisition agreement within the VineBrook Portfolio during the three months ended June 30, 2025.

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**Consolidated Results of Operations for the Six Months Ended June 30, 2025 and 2024**

***The six months ended June 30, 2025 compared to the six months ended June 30, 2024***

The following table sets forth a summary of our consolidated operating results for the six months ended June 30, 2025 and 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | |
| | **2025** | **2024** |<br>**$ Change** |
| Total revenues | $186965 | $182030 | $4935 |
| Total expenses | (298470) | (256076) | (42394) |
| Loss on extinguishment of debt | (353) | (1374) | 1021 |
| Gain/(loss) on sales and impairment of real estate, net | 2381 | (9121) | 11502 |
| Investment income | 1271 | 2092 | (821) |
| Change in unrealized loss on investments |  | (255) | 255 |
| Reversal of (provision for) loan losses | 500 |  | 500 |
| Loss on forfeited deposits | (1409) |  | (1409) |
| Net loss | (109115) | (82704) | (26411) |
| Dividends on and accretion to redemption value of Redeemable Series A Preferred stock | 4397 | 4237 | 160 |
| Net loss attributable to redeemable noncontrolling interests in the OP | (16369) | (12407) | (3962) |
| Net loss attributable to redeemable noncontrolling interests in consolidated VIEs | (9671) | (11515) | 1844 |
| Net loss attributable to noncontrolling interests in consolidated VIEs | (1343) | (1814) | 471 |
| Net loss attributable to stockholders | $(89155) | $(61205) | $(27950) |

---

The change in our net loss between the periods primarily relates to increases in property operating expenses, real estate taxes and insurance, interest expense, loss on forfeited deposits, and general and administrative expenses, partially offset by increases in rental income and gains on sales and impairment of real estate, as well as decreases in property management fees, depreciation and amortization, advisory fees, and investment income.

***Revenues***

<u>Rental income</u>*.* Rental income was $181.2 million for the six months ended June 30, 2025 compared to $179.6 million for the six months ended June 30, 2024, which was an increase of $1.6 million. The increase between the periods was primarily due to an increase in stabilized homes and an increase in rental rates over the past year.

<u>Other income</u>. Other income was $5.7 million for the six months ended June 30, 2025 compared to $2.5 million for the six months ended June 30, 2024, which was an increase of $3.2 million. The increase between the periods was primarily due to an increase in the reserve allocated to move out charges in the current year and the adoption of Conservice providing more consistent and better collection of utility fees in the current year.

***Expenses*** 

<u>Property operating expenses</u>. Property operating expenses were $43.2 million for the six months ended June 30, 2025 compared to $39.4 million for the six months ended June 30, 2024, which was an increase of $3.8 million. The increase between the periods was primarily due to an increase in turnover and utilities, partially offset by a decrease in common area maintenance costs in the six months ended June 30, 2025, associated with the growth in stabilized homes. For the six months ended June 30, 2025 and 2024, turn costs represented approximately 19% and 20%, respectively, of our property operating expenses.

<u>Real estate taxes and insurance</u>*.* Real estate taxes and insurance were $35.1 million for the six months ended June 30, 2025 compared to $34.3 million for the six months ended June 30, 2024, which was an increase of $0.8 million. The increase between the periods was primarily due to increases in real estate tax assessments as a result of increases in property valuations, partially offset by dispositions in the VineBrook Portfolio and NexPoint Homes Portfolio.

<u>Property management fees</u>*.* Property management fees were $1.2 million for the six months ended June 30, 2025 compared to $1.6 million for the six months ended June 30, 2024, which was a decrease of $0.4 million. The decrease between the periods was primarily due to the transition of property management of the NexPoint Homes Portfolio to Mynd on September 19, 2024.

<u>Advisory fees</u>*.* Advisory fees were $10.0 million for the six months ended June 30, 2025 compared to $10.4 million for the six months ended June 30, 2024, which was a decrease of $0.4 million. The decrease between the periods was primarily due to the decrease in assets under management for the VineBrook Portfolio, partially offset by the accrual of advisory fees at the NexPoint Homes Portfolio.

<u>General and administrative expenses</u>*.* General and administrative expenses were $76.4 million for the six months ended June 30, 2025 compared to $39.3 million for the six months ended June 30, 2024, which was an increase of $37.1 million. The increase between the periods was primarily due to increases in equity-based compensation costs related to the acceleration of RSU and PIU vesting, and an increase in legal fees following the Externalization of the Legacy VineBrook Manager to the Evergreen Manager on June 10, 2025. Of the $76.4 million of general and administrative expenses, $12.8 million are related to execution of the Externalization and $11.5 million are related to accelerated RSU award vestings.

<u>Depreciation and amortization</u>*.* Depreciation and amortization costs were $62.2 million for the six months ended June 30, 2025 compared to $63.4 million for the six months ended June 30, 2024, which was a decrease of $1.2 million. The decrease between the periods was primarily due to the disposition of homes over the past year partially offset by the increase in depreciation on capitalized costs.

<u>Interest expense</u>*.* Interest expense was $70.5 million for the six months ended June 30, 2025 compared to $67.7 million for the six months ended June 30, 2024, which was an increase of $2.8 million. The increase between the periods was primarily due to an increase in non-cash discount amortization, partially offset by an increase in interest rate derivative proceeds and a decrease in interest on debt as we made pay downs on debt outstanding over the past year. The following table details the various costs included in interest expense for the six months ended June 30, 2025 and 2024 (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | |
| | **2025** | **2024** |<br>**$ Change** |
| Gross interest cost | $70660 | $68266 | $2394 |
| Capitalized interest | (201) | (604) | 403 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $70459 | $67662 | $2797 |

---

<u>Loss on extinguishment of debt.</u> Loss on extinguishment of debt was $0.4 million for the six months ended June 30, 2025 compared to $1.4 million for the six months ended June 30, 2024, which was a decrease of $1.0 million. The decrease between the periods was primarily due to a decrease in debt extinguishment activity for the six months ended June 30, 2025.

<u>Gain/(loss) on sales and impairment of real estate, net</u>*.* Gain on sales and impairment of real estate was $2.4 million for the six months ended June 30, 2025 compared to a loss of $9.1 million for the six months ended June 30, 2024, which was an increase of $11.5 million. The increase between the periods was primarily due to a decrease in impairment charges on held for sale assets and a decrease in disposition activity in the six months ended June 30, 2025. The Company disposed of 576 and 822 homes during the six months ended June 30, 2025 and 2024, respectively. The Company strategically identifies homes for disposal and expects the disposal of these properties to be accretive to the Portfolio's results of operation and overall performance.

<u>Investment income</u>*.* Investment income was $1.3 million for the six months ended June 30, 2025 compared to $2.1 million for the six months ended June 30, 2024, which was a decrease of $0.8 million. The decrease between the periods was primarily due to 2024 interest income from the HomeSource Note and interest income from and tax refunds related to the asset-backed securitization certificates.

<u>Loss on forfeited deposits</u>. Loss on forfeited deposits was $1.4 million for the six months ended June 30, 2025 compared to no loss on forfeited deposits for the six months ended June 30, 2024, which was an increase of $1.4 million. The increase between the periods was primarily due to writing off earnest money deposits within the NexPoint Homes Portfolio during the six months ended June 30, 2025.

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**Non-GAAP Measurements** 

***Net Operating Income***

NOI is a non-GAAP financial measure of performance. NOI is used by our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties as NOI is not affected by (1) interest expense, (2) advisory fees, (3) the impact of depreciation and amortization expenses, (4) gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP or impairment charges, including casualty gains or losses (5) general and administrative expenses, (6) investment income, (7) change in unrealized loss on investments, (8) reversal of loan losses, (9) loss on forfeited deposits and (10) other gains and losses that are specific to us, including loss on extinguishment of debt. The cost of funds is eliminated from net income (loss) because it is specific to our particular financing capabilities and constraints. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital, or in the case of assumed debt, decisions made by others, which may have changed or may change in the future. Advisory fees are eliminated because they do not reflect continuing operating costs of the property owner. Depreciation and amortization expenses, gains or losses from the sale of operating real estate assets and impairment charges are eliminated because they may not accurately represent the actual change in value in our homes that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale, which will usually change from period to period. Casualty gains or losses, included within impairment charges, do not reflect continuing operating costs of the property owner and typically the economic impact, aside from deductible or risk retention, is covered by insurance. General and administrative expenses are eliminated because they do not reflect the ongoing operating activity performed at the properties and represent expenses such as legal, professional, centralized technology support and accounting functions and other expenses associated with our corporate and administrative functions. Investment income, change in unrealized loss on investments and reversal of loan losses on investments are eliminated because they do not reflect the ongoing operating activity performed at the properties. Losses on forfeited deposits is excluded because it does not reflect the ongoing operations of the property owner. Gains or losses on the extinguishment of debt are excluded because they do not reflect continuing operating costs of the property owner. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly timed purchases or sales or sustained damage at similar times. We believe that eliminating these items from net income is useful because the resulting measure captures the actual ongoing revenue generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs.

However, the usefulness of NOI is limited because it excludes the items discussed above. NOI may fail to capture significant trends in these components of net income, which further limits its usefulness.

NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income (loss) as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income (loss) computed in accordance with GAAP and discussions elsewhere regarding the components of net income (loss) that are eliminated in the calculation of NOI. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.

The following table, which has not been adjusted for the effects of NCI, reconciles our consolidated NOI for the three and six months ended June 30, 2025 and 2024 to net loss, the most directly comparable GAAP financial measure on a consolidated basis (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(69964) | $(38633) | $(109115) | $(82704) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to NOI: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advisory fees | 4970 | 5187 | 9954 | 10446 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 55302 | 18038 | 76351 | 39255 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 32192 | 31378 | 62197 | 63434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 35117 | 34358 | 70459 | 67662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 195 | 73 | 353 | 1374 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain)/loss on sales and impairment of real estate, net | (2845) | 5234 | (2381) | 9121 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment income | (716) | (1819) | (1271) | (2092) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss on investments |  | 255 |  | 255 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of loan losses |  |  | (500) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on forfeited deposits | 6 |  | 1409 |  |
| NOI | $54257 | $54071 | $107456 | $106751 |

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The following table, which has not been adjusted for the effects of NCI, reconciles our NOI for each of our segments for the three and six months ended June 30, 2025 and 2024 to net loss, the most directly comparable GAAP financial measure by Portfolio (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** |
| | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total** | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total** |
| Net loss | $(60775) | $(9189) | $(69964) | $(24956) | $(13677) | $(38633) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to NOI: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advisory fees | 4182 | 788 | 4970 | 4289 | 898 | 5187 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 54147 | 1155 | 55302 | 18642 | (604) | 18038 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 26696 | 5496 | 32192 | 23979 | 7399 | 31378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 28244 | 6873 | 35117 | 26623 | 7735 | 34358 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 195 |  | 195 | 73 |  | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain)/loss on sales and impairment of real estate, net | (2866) | 21 | (2845) | 224 | 5010 | 5234 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment income | (619) | (97) | (716) | (1729) | (90) | (1819) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss on investments |  |  |  | 255 |  | 255 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on forfeited deposits | 6 |  | 6 |  |  |  |
| NOI | $49210 | $5047 | $54257 | $47400 | $6671 | $54071 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
| | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total** | **VineBrook** | **NexPoint Homes** | **Total** |
| Net loss | $(86659) | $(22456) | $(109115) | $(55745) | $(26959) | $(82704) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to NOI: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advisory fees | 8383 | 1571 | 9954 | 8633 | 1813 | 10446 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 70108 | 6243 | 76351 | 38552 | 703 | 39255 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 51173 | 11024 | 62197 | 48016 | 15418 | 63434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 56849 | 13610 | 70459 | 51411 | 16251 | 67662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 353 |  | 353 | 1374 |  | 1374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sales and impairment of real estate, net | (2107) | (274) | (2381) | 2931 | 6190 | 9121 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment income | (1174) | (97) | (1271) | (1913) | (179) | (2092) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of loan losses |  | (500) | (500) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on forfeited deposits | 6 | 1403 | 1409 |  |  |  |
| NOI | $96932 | $10524 | $107456 | $93514 | $13237 | $106751 |

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***Net Operating Income for Our 2024-2025 Same Home and Non-Same Home Properties for the Three Months Ended June 30, 2025 and 2024***

There are 17,610 homes in our 2024-2025 same home pool (our "2024-2025 Same Home" properties). To be included as a "2024-2025 Same Home," homes must be in the VineBrook Portfolio and must have been stabilized for at least 90 days in advance of the first day of the previous fiscal year and be held through the current reporting period-end. Same Home properties for the period ended June 30, 2025 and June 30, 2024 were stabilized by October 1, 2023 and held through June 30, 2025. 2024-2025 Same Home properties do not include homes held for sale. Homes that are stabilized are included as 2024-2025 Same Home properties, whether occupied or vacant. See Item 1 "Business—Our Portfolio" in our Annual Report for a discussion of the definition of stabilized. We view 2024-2025 Same Home NOI as an important measure of the operating performance of our homes because it allows us to compare operating results of homes owned for the entirety of the current and comparable periods and therefore eliminate variations caused by acquisitions or dispositions during the periods.

The following table reflects the revenues, property operating expenses and NOI for the three months ended June 30, 2025 and 2024 for our 2024-2025 Same Home and Non-Same Home properties (dollars in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | | |
| | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| **Revenues** |  |  |  |  |
| Same Home |  |  |  |  |
| &nbsp;&nbsp;Rental income (1) | $67952 | $64150 | $3802 | 5.9% |
| &nbsp;&nbsp;Other income (1) | 693 | 884 | (191) | -21.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Home revenues | 68645 | 65034 | 3611 | 5.6% |
| Non-Same Home |  |  |  |  |
| &nbsp;&nbsp;Rental income (1) | 23106 | 25062 | (1956) | -7.8% |
| &nbsp;&nbsp;Other income (1) | 2401 | (152) | 2553 | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Same Home revenues | 25507 | 24910 | 597 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 94152 | 89944 | 4208 | 4.7% |
| **Operating expenses** |  |  |  |  |
| Same Home |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses (1) | 12283 | 11716 | 567 | 4.8% |
| &nbsp;&nbsp;Real estate taxes and insurance | 13023 | 11913 | 1110 | 9.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Home operating expenses | 25306 | 23629 | 1677 | 7.1% |
| Non-Same Home |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses (1) | 9067 | 6248 | 2819 | 45.1% |
| &nbsp;&nbsp;Real estate taxes and insurance | 4889 | 5156 | (267) | -5.2% |
| &nbsp;&nbsp;Property management fees (2) | 633 | 840 | (207) | -24.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Same Home operating expenses | 14589 | 12244 | 2345 | 19.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 39895 | 35873 | 4022 | 11.2% |
| **NOI** |  |  |  |  |
| &nbsp;&nbsp;Same Home | 43339 | 41405 | 1934 | 4.7% |
| &nbsp;&nbsp;Non-Same Home | 10918 | 12666 | (1748) | -13.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total NOI** | $54257 | $54071 | $186 | 0.3% |

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(1)Presented net of resident chargebacks.

(2)Fees incurred to the Manager; following the Internalization, property management fees were eliminated in consolidation for the VineBrook Portfolio until the Externalization, which occurred in June 2025.

See reconciliation of net income (loss) to NOI above under "—Net Operating Income."

<u>2024-2025 Same Home Results of Operations for the Three Months Ended June 30, 2025 and 2024</u>

As of June 30, 2025, our 2024-2025 Same Home properties were approximately 95.5% occupied with a weighted average monthly effective rent per occupied home of $1,350. As of June 30, 2024, our 2024-2025 Same Home properties were approximately 95.8% occupied with a weighted average monthly effective rent per occupied home of $1,247. For our 2024-2025 Same Home properties, we recorded the following operating results for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024:

<u>Revenues</u>

*Rental income*. Rental income was $68.0 million for the three months ended June 30, 2025 compared to $64.2 million for the three months ended June 30, 2024, which was an increase of approximately $3.8 million, or 5.9%. The increase is related to a 8.3% increase in the weighted average monthly effective rent per occupied home.

*Other income.* Other income was approximately $0.7 million for the three months ended June 30, 2025 compared to approximately $0.9 million for the three months ended June 30, 2024, which was a decrease of approximately $0.2 million. This decrease was primarily due to the decrease in overall fees charged to single family properties, which was $0.3 million in the three months ended June 30, 2025 compared to $0.5 million in the three months ended June 30, 2024.

<u>Expenses</u>

*Property operating expenses.* Property operating expenses were $12.3 million for the three months ended June 30, 2025 compared to $11.7 million for the three months ended June 30, 2024, which was an increase of approximately $0.6 million, or 4.8%. The increase is primarily related to an increase in repair and maintenance expense of $0.4 million, an increase in utility expense of $1.7 million, an increase in in-house turn staff of $0.1 million, and an increase in payroll expense of $0.1 million, partially offset by an increase in resident chargebacks of $1.7 million.

*Real estate taxes and insurance.* Real estate taxes and insurance costs were $13.0 million for the three months ended June 30, 2025 compared to $11.9 million for the three months ended June 30, 2024, which was an increase of approximately $1.1 million, or 9.3%. The increase is primarily related to an increase in property insurance costs of $0.1 million and an increase in real estate taxes of $1.0 million.

The following table reflects a reconciliation of Same Home and Non-Same Home revenues and operating expenses to total revenues and operating expenses, including resident chargebacks, for the three months ended June 30, 2025 and 2024 (dollars in thousands):

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| | | |
|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** |
| | **2025** | **2024** |
| Same Home revenues | $68645 | $65034 |
| Non-Same Home revenues | 25507 | 24910 |
| Chargebacks | 52 | 1801 |
| &nbsp;&nbsp;Total revenues | 94204 | 91745 |
| Same Home operating expenses | 25306 | 23629 |
| Non-Same Home operating expenses | 14589 | 12244 |
| Chargebacks | 52 | 1801 |
| &nbsp;&nbsp;Total operating expenses | $39947 | $37674 |

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

***Net Operating Income for Our Same Home and Non-Same Home Properties for the Six Months Ended June 30, 2025 and 2024***

There are 17,610 homes in our 2024-2025 Same Home pool. To be included as a "2024-2025 Same Home," homes must be in the VineBrook Portfolio and must have been stabilized for at least 90 days in advance of the first day of the previous fiscal year and be held through the current reporting period-end. Same Home properties for the period ended June 30, 2025 and June 30, 2024 were stabilized by October 1, 2023 and held through June 30, 2025. Same Home properties do not include homes held for sale. Homes that are stabilized are included as Same Home properties, whether occupied or vacant. See Item 1 "Business—Our Portfolio" in our Annual Report for a discussion of the definition of stabilized. We view Same Home NOI as an important measure of the operating performance of our homes because it allows us to compare operating results of homes owned for the entirety of the current and comparable periods and therefore eliminate variations caused by acquisitions or dispositions during the periods.

The following table reflects the revenues, property operating expenses and NOI for the six months ended June 30, 2025 and 2024 for our Same Home and Non-Same Home properties (dollars in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | | |
| | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| **Revenues** |  |  |  |  |
| Same Home |  |  |  |  |
| &nbsp;&nbsp;Rental income (1) | $134203 | $126703 | $7500 | 5.9% |
| &nbsp;&nbsp;Other income (1) | 1474 | 1729 | (255) | -14.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Home revenues | 135677 | 128432 | 7245 | 5.6% |
| Non-Same Home |  |  |  |  |
| &nbsp;&nbsp;Rental income (1) | 47062 | 49563 | (2501) | -5.0% |
| &nbsp;&nbsp;Other income (1) | 3805 | 265 | 3540 | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Same Home revenues | 50867 | 49828 | 1039 | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 186544 | 178260 | 8284 | 4.6% |
| **Operating expenses** |  |  |  |  |
| Same Home |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses (1) | 24549 | 23046 | 1503 | 6.5% |
| &nbsp;&nbsp;Real estate taxes and insurance | 26088 | 23743 | 2345 | 9.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Home operating expenses | 50637 | 46789 | 3848 | 8.2% |
| Non-Same Home |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses (1) | 18185 | 12578 | 5607 | 44.6% |
| &nbsp;&nbsp;Real estate taxes and insurance | 9023 | 10513 | (1490) | -14.2% |
| &nbsp;&nbsp;Property management fees (2) | 1243 | 1629 | (386) | -23.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Same Home operating expenses | 28451 | 24720 | 3731 | 15.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 79088 | 71509 | 7579 | 10.6% |
| **NOI** |  |  |  |  |
| &nbsp;&nbsp;Same Home | 85040 | 81643 | 3397 | 4.2% |
| &nbsp;&nbsp;Non-Same Home | 22416 | 25108 | (2692) | -10.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total NOI** | $107456 | $106751 | $705 | 0.7% |

---

(1)Presented net of resident chargebacks.

(2)Fees incurred to the Manager; following the Internalization, property management fees were eliminated in consolidation for the VineBrook Portfolio until the Externalization, which occurred in June 2025.

See reconciliation of net income (loss) to NOI above under "—Net Operating Income."

<u>Same Home Results of Operations for the Six Months Ended June 30, 2025 and 2024</u>

As of June 30, 2025, our Same Home properties were approximately 95.5% occupied with a weighted average monthly effective rent per occupied home of $1,350. As of June 30, 2024, our Same Home properties were approximately 95.8% occupied with a weighted average monthly effective rent per occupied home of $1,247. For our Same Home properties, we recorded the following operating results for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024:

<u>Revenues</u>

*Rental income*. Rental income was $134.2 million for the six months ended June 30, 2025 compared to $126.7 million for the six months ended June 30, 2024, which was an increase of approximately $7.5 million, or 5.9%. The increase is related to a 8.3% increase in the weighted average monthly effective rent per occupied home and a 51% increase in total chargebacks to residents, partially offset by a 0.3% decrease in occupancy.

*Other income.* Other income was approximately $1.5 million for the six months ended June 30, 2025 compared to approximately $1.7 million for the six months ended June 30, 2024, which was a decrease of approximately $0.2 million. This decrease was primarily due to the decrease in overall fees charged to single family properties of $0.3 million, partially offset by an increase in uncollectible fees from move out charges of $0.1 million.

<u>Expenses</u>

*Property operating expenses.* Property operating expenses were $24.5 million for the six months ended June 30, 2025 compared to $23.0 million for the six months ended June 30, 2024, which was an increase of approximately $1.5 million, or 6.5%. The increase is primarily related to an increase in repair and maintenance expense of $0.8 million, an increase in utility expense of $3.2 million, an increase in in-house turn staff of $0.5 million, and an increase in payroll expense of $0.3 million, partially offset by an increase in resident chargebacks of $3.3 million.

*Real estate taxes and insurance.* Real estate taxes and insurance costs were $26.1 million for the six months ended June 30, 2025 compared to $23.7 million for the six months ended June 30, 2024, which was an increase of approximately $2.4 million, or 9.9%. The increase is primarily related to an increase in property insurance costs of $1.9 million and an increase in real estate taxes of $0.5 million.

The following table reflects a reconciliation of Same Home and Non-Same Home revenues and operating expenses to total revenues and operating expenses, including resident chargebacks, for the six months ended June 30, 2025 and 2024 (dollars in thousands):

---

| | | |
|:---|:---|:---|
| | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** |
| Same Home revenues | $135677 | $128432 |
| Non-Same Home revenues | 50867 | 49828 |
| Chargebacks | 421 | 3770 |
| &nbsp;&nbsp;Total revenues | 186965 | 182030 |
| Same Home operating expenses | 50637 | 46789 |
| Non-Same Home operating expenses | 28451 | 24720 |
| Chargebacks | 421 | 3770 |
| &nbsp;&nbsp;Total operating expenses | $79509 | $75279 |

---

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

***Consolidated FFO, Core FFO and AFFO***

We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measure. We also believe that funds from operations attributable to stockholders, NCI of the OP, redeemable NCI in consolidated VIEs, and NCI in consolidated VIEs ("FFO") as defined by the National Association of Real Estate Investments Trusts ("NAREIT"), core funds from operations attributable to stockholders, NCI of the OP, redeemable NCI in consolidated VIEs, and NCI in consolidated VIEs ("Core FFO") and adjusted funds from operations attributable to stockholders, NCI of the OP, redeemable NCI in consolidated VIEs, and NCI in consolidated VIEs ("AFFO") are important non-GAAP supplemental measures of operating performance for a REIT.

Since the historical cost accounting convention used for real estate assets requires depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income (loss), as defined by GAAP. FFO is defined by NAREIT as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions and impairment of real estate assets, plus real estate depreciation and amortization. We compute FFO in accordance with NAREIT's definition. Our presentation differs slightly from NAREIT's in that we begin with net income (loss) attributable to stockholders and add net income (loss) attributable to NCI in the OP, net income (loss) attributable to redeemable NCI in consolidated VIEs and net income (loss) attributable to NCI in consolidated VIEs and then make the adjustments to arrive at FFO.

Core FFO makes certain adjustments to FFO, which are not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as (1) losses on forfeited deposits, (2) gains or losses on extinguishment of debt (3) non-cash interest expenses, (4) changes in unrealized gains or losses on investments, (5) reversal of (provision for) loan losses, (6) transaction costs incurred in connection with acquisitions, dispositions and issuance of debt and other costs not related to core real estate operations and (7) equity-based compensation expense. We believe Core FFO is useful as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs.

AFFO makes certain adjustments to Core FFO in order to arrive at a more refined measure of the operating performance of our Portfolio. There is no industry standard definition of AFFO and the method of calculating AFFO is divergent across the industry. AFFO adjusts Core FFO to remove recurring capital expenditures, which are costs necessary to help preserve the value and maintain functionality of our homes. We believe AFFO is useful as a supplemental gauge of the operating performance of our Company and is useful in comparing our operating performance with other REITs.

Basic and diluted weighted average shares in our FFO/Core FFO/AFFO table includes both our Common Stock and OP Units.

We believe that the use of FFO, Core FFO and AFFO, combined with the required GAAP presentations, improves the understanding of operating results of REITs and makes comparisons of operating results among such companies more meaningful. While FFO, Core FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income (loss) as defined by GAAP and should not be considered as an alternative or substitute to those measures in evaluating our liquidity or operating performance. FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements.

The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss attributable to stockholders for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **Six Months Ended June 30, 2025 to 2024** |
| | **2025** | **2024** | **2025** | **2024** | **% Change** |
| Net loss attributable to stockholders | $(58685) | $(28106) | $(89155) | $(61205) | 45.7% |
| Net loss attributable to NCI in the OP | (10494) | (5796) | (16369) | (12407) | 31.9% |
| Net loss attributable to redeemable noncontrolling interest in consolidated VIEs | (3968) | (5840) | (9671) | (11515) | -16.0% |
| Net loss attributable to noncontrolling interest in consolidated VIEs | (528) | (921) | (1343) | (1814) | -26.0% |
| Depreciation and amortization | 32192 | 31378 | 62197 | 63434 | -2.0% |
| Loss/(Gain) on sales and impairment of real estate, net | (2845) | 5234 | (2381) | 9121 | N/M |
| **FFO attributable to stockholders, NCI in the OP, redeemable noncontrolling interests in consolidated VIEs, and noncontrolling interests in consolidated VIEs** | (44328) | (4051) | (56722) | (14386) | N/M |
| **FFO per share - basic** | $(1.43) | $(0.14) | $(1.86) | $(0.49) | N/M |
| **FFO per share - diluted** | $(1.43) | $(0.14) | $(1.86) | $(0.49) | N/M |
| Loss on forfeited deposits | 6 |  | 1409 |  | N/M |
| Loss on extinguishment of debt | 195 | 73 | 353 | 1374 | -74.3% |
| Non-cash interest expense | 8428 | 7209 | 17465 | 16111 | 8.4% |
| Change in unrealized (gain) loss on investments |  | 255 |  | 255 | -100.0% |
| Reversal of (provision for) loan losses |  |  | (500) |  | N/M |
| Transaction and other costs | 3212 | 2000 | 7869 | 3565 | N/M |
| Equity-based compensation expense | 38927 | 5250 | 43889 | 10499 | N/M |
| **Core FFO attributable to stockholders, NCI in the OP, redeemable noncontrolling interests in consolidated VIEs, and noncontrolling interests in consolidated VIEs** | 6440 | 10736 | 13763 | 17418 | -21.0% |
| **Core FFO per share - basic** | $0.21 | $0.36 | $0.45 | $0.59 | -23.7% |
| **Core FFO per share - diluted** | $0.20 | $0.35 | $0.44 | $0.57 | -22.8% |
| Recurring capital expenditures | (6405) | (5810) | (11256) | (11865) | -5.1% |
| **AFFO attributable to stockholders, NCI in the OP, redeemable noncontrolling interests in consolidated VIEs, and noncontrolling interests in consolidated VIEs** | 35 | 4926 | 2507 | 5553 | -54.9% |
| **AFFO per share - basic** | $— | $0.17 | $0.08 | $0.19 | -57.9% |
| **AFFO per share - diluted** | $— | $0.16 | $0.08 | $0.18 | -55.6% |
| **Weighted average shares outstanding - basic** | 30940 | 29703 | 30577 | 29653 |  |
| **Weighted average shares outstanding - diluted (1)** | 32203 | 30558 | 31612 | 30541 |  |
| **Dividends declared per share** | $0.5301 | $0.5301 | $1.0602 | $1.0602 |  |
| **Net loss attributable to stockholders per share/unit - diluted** | $(2.28) | $(1.11) | $(3.48) | $(2.43) |  |
| **Net loss attributable to stockholders Coverage - diluted (2)** | -4.30x | -2.09x | -3.28x | -2.29x |  |
| **FFO Coverage - diluted (3)** | -2.70x | -0.26x | -1.75x | -0.46x |  |
| **Core FFO Coverage - diluted (3)** | 0.38x | 0.66x | 0.42x | 0.54x |  |
| **AFFO Coverage - diluted (3)** | 0.00x | 0.30x | 0.08x | 0.17x |  |

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(1)For the three and six months ended June 30, 2025 and 2024, includes approximately 1,185,000 shares and 841,000 shares, respectively, related to the assumed vesting of RSUs, earned performance shares of the Company and PI Units not contingent upon an IPO, change in control or listing of the Company's Common Stock on a national securities exchange.

(2)Indicates coverage ratio of net loss attributable to stockholders per share (diluted) over dividends declared per common share during the period.

(3)Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

***VineBrook FFO, Core FFO and AFFO***

In addition to FFO, Core FFO and AFFO, we present FFO, Core FFO and AFFO for the VineBrook Portfolio ("VineBrook FFO," "VineBrook Core FFO," and "VineBrook AFFO," respectively) as we view the VineBrook Portfolio as the Company's primary reportable segment and believe it is useful to consider the VineBrook FFO, VineBrook Core FFO and VineBrook AFFO as supplemental gauges of our operating performance. We also use VineBrook Core FFO as a performance metric for certain key executives, including under grants of performance shares made in the Internalization.

FFO is defined by NAREIT as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions and impairment of real estate assets, plus real estate depreciation and amortization. We compute VineBrook FFO in accordance with NAREIT's definition. Our presentation differs slightly from NAREIT's in that we begin with VineBrook net income (loss) attributable to stockholders and add VineBrook net income (loss) attributable to NCI in the OP and then make the adjustments to arrive at VineBrook FFO.

VineBrook Core FFO makes certain adjustments to VineBrook FFO, which are not representative of the ongoing operating performance of our Portfolio. VineBrook Core FFO adjusts VineBrook FFO to remove or add items such as (1) reportable segment-specific investment income, (2) gains or losses on extinguishment of debt, (3) non-cash interest expenses, (4) changes in unrealized gains or losses on investments, (5) transaction costs incurred in connection with acquisitions, dispositions and issuance of debt and other costs not related to core real estate operations and (6) equity-based compensation expense. We believe VineBrook Core FFO is useful as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs.

VineBrook AFFO makes certain adjustments to VineBrook Core FFO in order to arrive at a more refined measure of the operating performance of our VineBrook Portfolio. There is no industry standard definition of AFFO and the method of calculating AFFO is divergent across the industry. VineBrook AFFO adjusts VineBrook Core FFO to remove recurring capital expenditures, which are costs necessary to help preserve the value and maintain functionality of our homes. We believe VineBrook AFFO is useful as a supplemental gauge of the operating performance of our VineBrook Portfolio and is useful in comparing our operating performance with other REITs.

Basic and diluted weighted average shares in our VineBrook FFO/VineBrook Core FFO/VineBrook AFFO table includes both our Common Stock and OP Units.

We believe that the use of VineBrook FFO, VineBrook Core FFO and VineBrook AFFO, combined with the required GAAP presentations, improves the understanding of operating results of REITs and makes comparisons of operating results among such companies more meaningful. While FFO, Core FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income (loss) as defined by GAAP and should not be considered as an alternative or substitute to those measures in evaluating our liquidity or operating performance. VineBrook FFO, VineBrook Core FFO and VineBrook AFFO do not purport to be indicative of cash available to fund our future cash requirements. Further, our computation of VineBrook FFO, VineBrook Core FFO and VineBrook AFFO may not be comparable to FFO, Core FFO and AFFO reported by other REITs.

The FFO, Core FFO and AFFO results discussed further below are for the VineBrook Portfolio, and reconcile to net loss for the VineBrook Portfolio for the three and six months ended June 30, 2025 and 2024. See below for a reconciliation of VineBrook net loss to consolidated net loss for the three and six months ended June 30, 2025 and 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** |
| | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total** | **VineBrook Portfolio** | **NexPoint Homes Portfolio** | **Total** |
| Net loss attributable to stockholders | $(54381) | $(4304) | $(58685) | $(21764) | $(6342) | $(28106) |
| Net loss attributable to redeemable NCI in the OP | (10105) | (389) | (10494) | (5222) | (574) | (5796) |
| Net loss attributable to redeemable NCI in consolidated VIEs |  | (3968) | (3968) |  | (5840) | (5840) |
| Net loss attributable to NCI in consolidated VIEs |  | (528) | (528) |  | (921) | (921) |
| Dividends on and accretion to redemption value of Redeemable Series A preferred stock | 2198 |  | 2198 | 2030 |  | 2030 |
| Net income attributable to Redeemable Series B Preferred stock | 1513 |  | 1513 |  |  |  |
| **Net Loss** | $(60775) | $(9189) | $(69964) | $(24956) | $(13677) | $(38633) |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
| | **VineBrook** | **NexPoint Homes** | **Total** | **VineBrook** | **NexPoint Homes** | **Total** |
| Net loss attributable to stockholders | $(78662) | $(10493) | $(89155) | $(48706) | $(12499) | $(61205) |
| Net loss attributable to redeemable NCI in the OP | (15420) | (949) | (16369) | (11276) | (1131) | (12407) |
| Net loss attributable to redeemable NCI in consolidated VIEs |  | (9671) | (9671) |  | (11515) | (11515) |
| Net loss attributable to NCI in consolidated VIEs |  | (1343) | (1343) |  | (1814) | (1814) |
| Dividends on and accretion to redemption value of Redeemable Series A preferred stock | 4397 |  | 4397 | 4237 |  | 4237 |
| Net income attributable to Redeemable Series B Preferred stock | 3026 |  | 3026 |  |  |  |
| **Net Loss** | $(86659) | $(22456) | $(109115) | $(55745) | $(26959) | $(82704) |

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The following table reconciles our calculations of VineBrook FFO, VineBrook Core FFO and VineBrook AFFO to the VineBrook Portfolio's net loss attributable to stockholders for the three and six months ended June 30, 2025 and 2024, which is reconciled to consolidated net loss above, the most directly comparable GAAP financial measure (in thousands, except per share amounts):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **Six Months Ended June 30, 2025 to 2024** |
| | **2025** | **2024** | **2025** | **2024** | **% Change** |
| Net loss attributable to stockholders | $(54381) | $(21764) | $(78662) | $(48706) | 61.5% |
| Net loss attributable to NCI in the OP | (10105) | (5222) | (15420) | (11276) | 36.8% |
| Depreciation and amortization | 26696 | 23979 | 51173 | 48016 | 6.6% |
| Loss/(gain) on sales and impairment of real estate, net | (2866) | 224 | (2107) | 2931 | N/M |
| **VineBrook FFO attributable to stockholders and NCI in the OP** | (40656) | (2783) | (45016) | (9035) | N/M |
| **VineBrook FFO per share - basic** | $(1.31) | $(0.09) | $(1.47) | $(0.30) | N/M |
| **VineBrook FFO per share - diluted** | $(1.31) | $(0.09) | $(1.47) | $(0.30) | N/M |
| Loss on forfeited deposits | 6 |  | 6 |  | N/M |
| Investment income (1) | 1248 | 1240 | 2594 | 2468 | 5.1% |
| Loss on extinguishment of debt | 195 | 73 | 353 | 1374 | -74.3% |
| Non-cash interest expense | 8307 | 7279 | 17260 | 16110 | 7.1% |
| Change in unrealized (gain) loss on investments |  | 255 |  | 255 | -100% |
| Transaction and other costs | 3212 | 2737 | 3740 | 3565 | 4.9% |
| Equity-based compensation expense | 38798 | 5120 | 43631 | 10240 | N/M |
| **VineBrook Core FFO attributable to stockholders and NCI in the OP** | 11110 | 13921 | 22568 | 24977 | -9.6% |
| **VineBrook Core FFO per share - basic** | $0.36 | $0.47 | $0.74 | $0.84 | -11.9% |
| **VineBrook Core FFO per share - diluted** | $0.34 | $0.46 | $0.71 | $0.82 | -13.4% |
| Recurring capital expenditures | (6405) | (5810) | (11256) | (11865) | -5.1% |
| **VineBrook AFFO attributable to stockholders and NCI in the OP** | 4705 | 8111 | 11312 | 13112 | -13.7% |
| **VineBrook AFFO per share - basic** | $0.15 | $0.27 | $0.37 | $0.44 | -15.9% |
| **VineBrook AFFO per share - diluted** | $0.15 | $0.27 | $0.36 | $0.43 | -16.3% |
| **Weighted average shares outstanding - basic** | 30940 | 29703 | 30577 | 29653 |  |
| **Weighted average shares outstanding - diluted (2)** | 32203 | 30558 | 31612 | 30541 |  |
| **Dividends declared per share** | $0.5301 | $0.5301 | $1.0602 | $1.0602 |  |
| **Net loss attributable to stockholders per share/unit - diluted (3)** | $(2.28) | $(1.11) | $(3.48) | $(2.43) |  |
| **Net loss attributable to stockholders Coverage - diluted (4)** | -4.30x | -2.09x | -3.28x | -2.29x |  |
| **VineBrook FFO Coverage - diluted (5)** | -2.47x | -0.17x | -1.39x | -0.28x |  |
| **VineBrook Core FFO Coverage - diluted (5)** | 0.60x | 0.87x | 0.670x | 0.77x |  |
| **VineBrook AFFO Coverage - diluted (5)** | 0.28x | 0.51x | 0.34x | 0.41x |  |

---

(1)Investment income in the table above includes approximately $0.2 million and $0.4 million of interest income from the convertible and promissory notes with NexPoint Homes and the SFR OP, and approximately $0.9 million and $0.9 million of dividend income from the investment in NexPoint Homes for the three months ended June 30, 2025 and 2024, respectively. Additionally, investment income in the table above includes approximately $0.6 million and $0.7 million of interest income from the NexPoint Homes Convertible Notes and approximately $1.8 million and $1.7 million of dividend income from the investment in NexPoint Homes for the six months ended June 30, 2025 and 2024, respectively. The VineBrook Portfolio interest and dividend income related to NexPoint Homes are eliminated on the consolidated statements of operations and comprehensive income (loss) but are added back to VineBrook Core FFO since these funds are attributable to the standalone VineBrook Portfolio.

(2)For the three and six months ended June 30, 2025 and 2024, includes approximately 1,185,000 shares and 841,000 shares respectively, related to the assumed vesting of RSUs, performance shares of the Company and PI Units not

contingent upon an IPO, change in control, or listing of the Company's Common Stock on a national securities exchange.

(3)For the six months ended June 30, 2025 and 2024, the net loss attributable to stockholders per share/unit (diluted) includes $(0.41) per common share and $(0.21) per common share, respectively, related to the allocated loss per common share attributable to the NexPoint Homes Portfolio.

(4)Indicates coverage ratio of net loss attributable to stockholders for the VineBrook Portfolio per share (diluted) over dividends declared per common share during the period.

(5)Indicates coverage ratio of VineBrook FFO/VineBrook Core FFO/VineBrook AFFO per common share (diluted) over dividends declared per common share during the period.

<u>The six months ended June 30, 2025 as compared to the six months ended June 30, 2024</u>

VineBrook FFO was negative $45.0 million for the six months ended June 30, 2025 compared to negative $9.0 million for the six months ended June 30, 2024, which was a decrease of approximately $36.0 million. The change in VineBrook FFO between the periods primarily relates to increases in the VineBrook Portfolio's general and administrative expenses of $31.6 million, the VineBrook Portfolio's depreciation and amortization expense of $3.2 million, VineBrook Portfolio's total property operating expenses of $3.2 million and VineBrook Portfolio's interest expense of $5.4 million, partially offset by an increase in the VineBrook Portfolio's rental income of $5.1 million and an increase in the VineBrook Portfolio's other income of $2.7 million.

VineBrook Core FFO was $22.6 million for the six months ended June 30, 2025 compared to $25.0 million for the six months ended June 30, 2024, which was a decrease of approximately $2.4 million. The change in VineBrook Core FFO between the periods primarily relates to decreases in VineBrook FFO of $36.0 million and loss on extinguishment of debt of $1.0 million, partially offset by increases in VineBrook Portfolio's non-cash interest expense of $1.2 million, VineBrook Portfolio's transaction and other costs of $0.2 million and VineBrook Portfolio's equity based compensation expense of $33.4 million, which are all added back to arrive at VineBrook Core FFO.

VineBrook AFFO was $11.3 million for the six months ended June 30, 2025 compared to $13.1 million for the six months ended June 30, 2024, which was a decrease of approximately $1.8 million. The change in VineBrook AFFO between the periods primarily relates to a decrease to VineBrook Core FFO and a decrease in the VineBrook Portfolio's recurring capital expenditures of $0.6 million.

The changes in diluted VineBrook FFO per share, VineBrook Core FFO per share and VineBrook AFFO per share were primarily related to an increase of 10.6% in VineBrook interest expense (or 6.8% on a per share basis). The weighted average interest rate of debt decreased from 6.3441% as of June 30, 2024 to 5.3730% as of June 30, 2025 for the VineBrook Portfolio, which has contributed to the increase in our VineBrook FFO and VineBrook Core FFO per share results. The Company has entered into 12 interest rate derivative agreements with a combined notional amount of approximately $1.4 billion in order to partially offset the impact of interest rates.

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**Net Asset Value**

The purchase price at which Common Stock may be repurchased in accordance with the terms of the Amended Share Repurchase Plan is generally based on the most recent NAV per share in effect at the time of repurchase, and Common Stock or OP Units issued under the applicable DRIP generally reflect a 3% discount to the then-current NAV per share.

Effective for valuations beginning on July 31, 2021, the Company implemented an amended and restated Valuation Methodology as approved by our Board. Under the Valuation Methodology, Green Street calculates a preliminary NAV by valuing the Portfolio in accordance with the Valuation Methodology. Green Street then recommends the preliminary NAV to the Adviser. Based on this recommendation, the Adviser then calculates transaction costs and makes any other adjustments, including costs of internalization, determined necessary to finalize NAV. The finalized NAV is then approved by the Pricing Committee.

On and before March 31, 2020, NAV was determined as of the end of each quarter. Beginning April 30, 2020, NAV was determined as of the end of each month. Effective for NAV determined on and after December 31, 2021, NAV has been determined as of the end of each quarter. NAV per share is calculated on a fully diluted basis. The table below illustrates the changes in NAV since inception:

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| | |
|:---|:---|
| **Date** | **NAV per share** |
| December 31, 2023 | 58.95 |
| March 31, 2024 | 57.99 |
| June 30, 2024 | 57.57 |
| September 30, 2024 | 55.45 |
| December 31, 2024 | 54.54 |
| March 31, 2025 | 54.56 |
| June 30, 2025 | 54.25 |

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**Liquidity and Capital Resources**

Our short-term liquidity requirements consist primarily of funds necessary to pay for debt maturities, operating expenses and other expenditures directly associated with our homes, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recurring maintenance necessary to maintain our homes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest expense and scheduled principal payments on outstanding indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• distributions necessary to qualify for taxation as a REIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advisory fees payable to our Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• property management fees payable to the Evergreen Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general and administrative expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• capital expenditures related to upcoming acquisitions and rehabilitation of owned homes.

We expect to meet our short-term liquidity requirements generally through net cash provided by operations, existing cash balances, sales of homes and debt financing. We expect to complete the refinancing of the Warehouse Facility and the MetLife Note in the third quarter 2025, and have extended the maturity of the JPM Facility, as discussed in Notes 5 and 14, which will have the effect of extending the maturities of those debt facilities more than 12 months past the original due dates.

Our long-term liquidity requirements consist primarily of funds necessary to pay for the scheduled debt payments and distributions, to fund renovations and fund other capital expenditures to improve our homes. Each reporting period, management evaluates the Company's ability to continue as a going concern in accordance with ASC 205-40, *Going Concern*, by evaluating conditions and events, including assessing the liquidity needs to meet obligations as they become due within one year after the date the financial statements are issued. The Company has significant debt obligations coming due on the Warehouse Facility, JPM Facility and the MetLife Note, within 12 months of the issuance of the financial statements and does not have sufficient liquidity as of the issuance date to satisfy these obligations. In order to satisfy obligations as they mature, management intends to evaluate its options and may seek to: (i) make partial loan pay downs, (ii) refinance certain debt instruments (as noted above), (iii) obtain additional capital through equity and/or debt financings, (iv) sell homes from its portfolio and pay down debt balances with the net sale proceeds, (v) modify operations to reduce costs, (vi) negotiate a turnover of secured properties back to the related lender and (vii) employ some combination of (i) - (vi). Subsequent to June 30, 2025, the Company sold 65 homes for net proceeds of approximately $8.1 million in the VineBrook Portfolio. Subsequent to June 30, 2025, the Company sold 7 homes for net proceeds of approximately $1.5 million in the NexPoint Homes Portfolio. Additionally, the Company intends to continue to dispose of homes to generate proceeds for debt pay downs and other uses. Within the VineBrook Portfolio, the Company plans to sell approximately 4,000 to 4,500 homes over the next twelve months to generate proceeds of approximately $475.0 million to $530.0 million. Within the NexPoint Homes Portfolio, the Company plans to sell approximately 60 homes over the next twelve months to generate proceeds of approximately $13.3 million. If rates remain at a level that would be accretive to the Company, management plans to use term loans and other refinancings of debt in the future to generate proceeds that would most likely be used to further pay down the Warehouse Facility and other debt. The Company is currently engaged in active discussions with a lender to provide debt financing that would be sufficient to repay the amounts coming due over the next 12 months. The Company's ability to meet its debt obligations as they come due is dependent upon its ability to meet debt covenants, which it currently projects to do, its ability to refinance debt and its ability to sell homes from its portfolio to pay down the balances. The sale of homes from the Portfolio could cause a decrease in net operating income but is expected to be offset by the interest savings from the pay downs. The Company notes that debt markets remain robust and liquid as evidenced by recent debt issuances. Given the Company's historical ability to refinance debt, active lender conversations and the previously noted robust debt market, the Company expects to be able to refinance debt as necessary to meet its debt obligations going forward. Management believes these plans by the Company will be sufficient to satisfy the obligations as they become due. The financial statements included in this Form 10-Q have been prepared by management in accordance with GAAP and this basis assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The financial statements included in this Form 10-Q do not include any adjustments that may result from the outcome of this uncertainty.

There are a number of factors that may have a material adverse effect on our ability to access these capital sources, including the state of overall equity and credit markets, our degree of leverage, our unencumbered asset base and borrowing restrictions imposed by lenders (including as a result of any failure to comply with financial covenants in our existing and future indebtedness), general market conditions for REITs, our operating performance and liquidity, market perceptions about us and restrictions on sales of properties under the Code. The success of our business strategy will depend, in part, on our ability to access these various capital sources.

Our homes will require periodic capital expenditures and renovation to remain competitive. Also, acquisitions of new homes will require significant capital outlays. Long-term, we may not be able to fund such capital improvements solely from net cash provided by operations because we must distribute annually at least 90% of our REIT taxable income, determined without regard to the deductions for dividends paid and excluding net capital gains, to qualify and maintain our qualification as a REIT, and we are subject to tax on any retained income and gains. As a result, our ability to fund capital expenditures and acquisitions through retained earnings long-term is limited. Consequently, we expect to rely heavily upon the availability of debt or equity capital for these purposes. If we are unable to obtain the necessary capital on favorable terms, or at all, our financial condition, liquidity, results of operations, and prospects could be materially and adversely affected.

We believe that our available cash, expected operating cash flows, net proceeds from the sale of homes and potential debt or equity financings will provide sufficient funds for our operations, anticipated scheduled debt service payments and dividend requirements for the twelve-month period following the issuance of these financials, except as would not be expected to have a material adverse effect. We believe that the various sources of long-term capital, which may include public or private issuances of common equity, preferred equity or debt, draws on our revolving credit facilities, existing working capital, net cash provided by operations, long-term mortgage indebtedness and other secured and unsecured borrowings will provide sufficient funds for our operations, anticipated scheduled debt service payments and dividend requirements in the long-term, except as would not be expected to have a material adverse effect.

***Cash Flows***

<u>The six months ended June 30, 2025 as compared to the six months ended June 30, 2024</u>

The following table presents selected data from our consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
| | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** |
| Net cash provided by (used in) operating activities | $(215) | $13104 |
| Net cash provided by investing activities | 45972 | 57079 |
| Net cash used in financing activities | (52756) | (60959) |
| Change in cash and restricted cash | (6999) | 9224 |
| Cash and restricted cash, beginning of period | 84632 | 85620 |
| Cash and restricted cash, end of period | $77633 | $94844 |

---

*Cash flows from operating activities.* During the six months ended June 30, 2025, net cash used in operating activities was $0.2 million compared to net cash provided by operating activities of $13.1 million for the six months ended June 30, 2024. The change in cash flows from operating activities was primarily due to an increase in non-cash interest expense and an increase in equity based compensation, partially offset by changes in working capital, mainly related to the timing of cash received for accounts receivable and cash payments for prepaids and other assets, and a decrease in net cash received from derivative settlements.

*Cash flows from investing activities.* During the six months ended June 30, 2025, net cash provided by investing activities was $46.0 million compared to net cash provided by investing activities of $57.1 million for the six months ended June 30, 2024. The change in cash flows from investing activities was mainly due to decreases in disposition activity within the VineBrook Portfolio, a decrease in net proceeds from sales and an increase in acquisitions, partially offset by an increase in insurance proceeds received and increases in additions to real estate investments.

*Cash flows from financing activities.* During the six months ended June 30, 2025, net cash used in financing activities was $52.8 million compared to net cash used in financing activities of $61.0 million for the six months ended June 30, 2024. The change in cash flows from financing activities was mainly due to a decrease in notes payable proceeds received and an increase in notes payable principal payments made, partially offset by an increase in credit facilities proceeds received and a decrease in credit facilities principal payments made.

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**Debt, Derivatives and Hedging Activity** 

***Debt***

As of June 30, 2025, the VineBrook Portfolio had aggregate debt outstanding to third parties of approximately $2.0 billion at a weighted average interest rate of 5.3730% and an adjusted weighted average interest rate of 3.9708%. For purposes of calculating the adjusted weighted average interest rate of our debt outstanding, we have included the weighted average fixed rate of 2.3646%, representing a weighted average fixed rate for Secured Overnight Financing Rate ("SOFR"), which replaced one-month London Interbank Offered Rate ("LIBOR") on July 1, 2023, for the applicable interest period ("one-month term SOFR"), daily SOFR and daily SOFR plus 0.1145%, on our combined $1.4 billion notional amount of interest rate swap agreements and interest rate cap agreement, which effectively fixes the interest rate on $1.4 billion of our floating rate debt. See Notes 5 and 6 to our consolidated financial statements for additional information.

The following table sets forth a summary of our mortgage loan indebtedness for the VineBrook Portfolio as of June 30, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Type** | **Outstanding Principal as of June 30, 2025** | **Interest Rate (1)** | **Maturity** | |
| Warehouse Facility | Floating | 441795 | 7.32% | 11/3/2025 |  |
| JPM Facility | Floating | 96089 | 7.30% | 10/31/2025 | (2) |
| JPM Acquisition Facility | Floating | 13710 | 6.67% | 7/9/2027 |  |
| ABS I Loan | Fixed | 380574 | 4.92% | 12/8/2028 |  |
| ABS II Loan | Fixed | 399149 | 4.65% | 3/9/2029 |  |
| MetLife Note | Fixed | 101723 | 3.25% | 1/31/2026 |  |
| MetLife Term Loan I | Fixed | 328352 | 4.50% | 8/22/2029 |  |
| MetLife Term Loan II | Fixed | 247942 | 4.75% | 11/4/2029 |  |
| OSL Loan | Fixed | 15000 | 9.00% | 2/25/2027 |  |
| TrueLane Mortgage | Fixed | 7730 | 5.35% | 2/1/2028 |  |
| Crestcore II Note | Fixed | 2494 | 5.12% | 7/9/2029 |  |
| Crestcore IV Note | Fixed | 2367 | 5.12% | 7/9/2029 |  |
| **Total Outstanding Principal** |  | $2036925 |  |  |  |

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(1)Represents the interest rate as of June 30, 2025. Except for fixed rate debt, the interest rate is 30-day average SOFR, daily SOFR or one-month term SOFR, plus an applicable margin. The 30-day average SOFR as of June 30, 2025 was 4.3190%, daily SOFR as of June 30, 2025 was 4.4500% and one-month term SOFR as of June 30, 2025 was 4.3220%.

(2)Subsequent to June 30, 2025, the JPM Facility was amended. This is the modified maturity date for the JPM Facility.

In addition to the mortgage loan indebtedness for the VineBrook Portfolio presented above and described below, the NexPoint Homes Portfolio had $518.0 million of debt outstanding at June 30, 2025 (excluding amounts owed to the OP by NexPoint Homes, as these are eliminated in consolidation). See Notes 5 and 10 to the consolidated financial statements.

*<u>Warehouse Facility</u>*

On September 20, 2019, the OP (as guarantor) and VB One, LLC (as borrower) entered into the Warehouse Facility with KeyBank. The Warehouse Facility is secured by an equity pledge in certain assets of VB One, LLC and an equity pledge in the equity of VB One, LLC. On November 3, 2021, the Company (as guarantor), the OP (as parent borrower), and each of (i) VB OP Holdings, LLC and (ii) VB One, LLC and certain of its subsidiaries (as subsidiary borrowers), entered into an amended and restated credit agreement to recast the Warehouse Facility, which was subsequently amended on December 9, 2021, April 8, 2022, May 20, 2022, September 13, 2022 and October 25, 2022, July 31, 2023 and August 14, 2024. On August 14, 2024, the Company entered into the Warehouse Seventh Amendment with KeyBank, as administrative agent, and the other lenders party thereto. The Warehouse Seventh Amendment, among other things, provided for (1) a reduction in the maximum commitment of the Warehouse Facility; (2) reduced unused facility fees; (3) modifications and additions of certain covenants, including adjusting the minimum fixed charge coverage ratio to not less than 1.40 to 1.0, effective as of January 1, 2024; (4) in connection with sales of assets to unaffiliated third parties, the prepayment of the commitment amount with 100% of such proceeds until the commitment under the Warehouse Facility is reduced to $475.0 million and with 75% of such proceeds thereafter; provided that certain additional amounts may be required to be prepaid if the outstanding principal balance would exceed the value of the assets in the borrowing base following such sale; (5) the Commitment Reduction to be no more than $475.0 million by October 31, 2024. During the six months ended June 30, 2025, the Company paid down approximately $15.4 million on the Warehouse Facility. All repayments under the Warehouse Facility will permanently reduce the commitment amount under the Warehouse Facility and may not be reborrowed. The outstanding balance on the Warehouse Facility as of June 30, 2025 was approximately $441.8 million, which is below the required Commitment Reduction.

*<u>JPM Facility</u>*

On March 1, 2021, the Company entered into a non-recourse carveout guaranty and certain wholly owned subsidiaries of VB Three, LLC (as borrowers) entered into the $500.0 million JPM Facility. The JPM Facility is secured by equity pledges in VB Three, LLC and its wholly owned subsidiaries and bears interest at a variable rate equal to one-month LIBOR plus 2.75%. The JPM Facility is interest-only and originally matured and was due in full on March 1, 2023. On March 10, 2022, the Company entered into Amendment No. 1 to the JPM Facility, wherein each advance under the JPM Facility will bear interest at daily SOFR plus 2.85%. The balance of the JPM Facility, net of unamortized deferred financing costs, is included in credit facilities on the consolidated balance sheets. On January 31, 2023, the Company entered into Amendment No. 2 to the JPM Facility, wherein the total facility amount was updated to $350.0 million, and the maturity date was extended to January 31, 2025, which may be extended for 12 months upon submission of an extension request, subject to approval. On March 15, 2023, the Company entered into Amendment No. 3 to the JPM Facility to give the Company credit for pledging an interest rate cap by reducing the interest reserve requirements under the JPM Facility based on the capped rate. On December 26, 2024, the Company entered into Amendment No. 4 to the JPM Facility, wherein the maturity date was extended to April 30, 2025. On April 24, 2025, the Company entered into Amendment No. 5 to the JPM Facility, wherein the maturity date was extended to July 31, 2025. On July 28, 2025, the Company entered into Amendment No. 6 to the JPM Facility, wherein the maturity date was extended to October 31, 2025, and the commitment was reduced to the amount equal to the advances outstanding as of the Amendment No. 6 effective date and all repayments will permanently reduce the commitment. The balance of the JPM Facility, net of unamortized deferred financing costs, is included in credit facilities on the consolidated balance sheets.

*<u>JPM Acquisition Facility</u>*

On June 25, 2025, VB Twelve, LLC, an indirect subsidiary of the Company, entered into the JPM Acquisition Facility for up to $500.0 million. The JPM Acquisition Facility bears interest at the greater of (i) one-month term SOFR or (ii) 3.00% plus 2.35% per annum. The JPM Acquisition Facility is interest-only and matures on July 9, 2027 with a one-year extension option subject to meeting certain criteria, payment of an extension fee and increases in the interest rate spread. The outstanding balance on the JPM Acquisition Facility as of June 30, 2025 is approximately $13.7 million. The JPM Acquisition Facility, net of unamortized deferred financing costs, is included in notes payable on the consolidated balance sheets.

*<u>Asset Backed Securitization I</u>*

On December 6, 2023, the OP completed a securitization transaction, in connection with which the ABS I Borrower entered into the ABS I Loan Agreement with the ABS I Lender, providing for the ABS I Loan with a total principal balance of approximately $392.2 million. Concurrent with the execution of the ABS I Loan Agreement, the ABS I Lender sold the ABS I Loan to the Depositor, an indirect subsidiary of the OP, which, in turn, transferred the ABS I Loan to a trust in exchange for (i) $178.4 million principal amount of Class A Certificates, (ii) $38.6 million principal amount of Class B Certificates, (iii) $30.8 million principal amount of Class C Certificates, (iv) $43.0 million principal amount of Class D Certificates, (v) $50.1 million principal amount of Class E1 Certificates, (vi) $12.2 million principal amount of Class E2 Certificates, and (vii) $39.1 million Class R Certificates. The Certificates represent beneficial ownership interests in the trust and its assets, including the ABS I Loan. The Depositor sold the Certificates, acquired by the Depositor in the manner described above, to placement agents who resold the Certificates to investors in a private offering. The Regular Certificates are exempt from registration under the Securities Act of 1933, as amended, and are "exempted securities" under the Exchange Act. To satisfy applicable risk retention rules, the OP purchased and retained the Class F Certificates totaling $39.1 million. The Depositor used the proceeds from the sale of the Certificates to purchase the ABS I Loan from the ABS I Lender, as described above. The Regular Certificates were sold to investors at a discount and the OP retained the Class F Certificate (as described above), with the result that the proceeds, before closing costs, from the ABS I Loan to the ABS I Borrower were approximately $314.0 million. The net proceeds of $300.6 million were used to partially pay down the Warehouse Facility. The balance of the ABS I Loan, net of unamortized deferred financing costs and debt discount, is included in notes payable on the consolidated balance sheets. The ABS I Loan is collateralized by 2,711 SFR homes, and as of June 30, 2025, approximately 12.02% of the Portfolio served as collateral for outstanding borrowings under the ABS I Loan. The ABS I Loan, is segregated into six tranches, all of which accrue interest at 4.9235% and have a maturity date of December 8, 2028.

*<u>Asset Backed Securitization II</u>*

On February 29, 2024, the ABS II Borrower, completed the ABS II and entered into the ABS II Loan Agreement with BofA Securities, Inc., as sole structuring agent, joint bookrunner and co-lead manager, Mizuho Securities USA LLC, as joint bookrunner and co-lead manager and Citizens JMP Securities, LLC, J.P. Morgan Securities LLC, Raymond James & Associates, Inc., and Truist Securities, Inc., as co-managers.

Concurrent with the execution of the ABS II Loan Agreement, the lender sold the ABS II Loan to the Depositor, an indirect subsidiary of the OP, which, in turn, transferred the loan to a trust in exchange for (i) $176.9 million principal amount of ABS II Class A Certificates, (ii) $38.6 million principal amount of ABS II Class B Certificates, (iii) $30.6 million principal amount of ABS II Class C Certificates, (iv) $42.9 million principal amount of ABS II Class D Certificates, (v) $63.5 million principal amount of ABS II Class E1 Certificates, (vi) $11.2 million principal amount of ABS II Class E2 Certificates, and (vii) $39.9 million ABS II Class R Certificates. The Company also retained $19.5 million notional amount of the ABS II Class A, $10.5 million notional amount of the ABS II Class B, and $2.0 million notional amount of the ABS II Class C certificates. The ABS II Certificates represent beneficial ownership interests in the trust and its assets, including the ABS II Loan.

The Depositor sold the ABS II Certificates, acquired by the Depositor in the manner described above, to placement agents who resold the Certificates to investors in a private offering. The ABS II Regular Certificates are exempt from registration under the Securities Act of 1933, as amended, and are "exempted securities" under the Exchange Act. To satisfy applicable risk retention rules, the OP purchased and retained the Class F component, totaling $39.9 million. Additionally, the OP purchased and retained a portion of the ABS II Class A, Class B and Class C components, totaling $19.5 million, $10.5 million and $2.0 million, respectively. The Company evaluated the purchased ABS II Class A, Class B, Class C and Class F certificates as a variable interest in the trust and concluded that the ABS II Class A, Class B, Class C, and Class F certificates will not absorb a majority of the trust's expected losses or receive a majority of the trust's expected residual returns. The Company also concluded that the ABS II Class A, Class B, Class C and Class F certificates do not provide the Company with an ability to direct activities that could impact the trust's economic performance. The Company does not consolidate the trust and the $71.9 million of the ABS II Certificates are reflected as asset-backed securitization certificates on the Company's consolidated balance sheets. The Depositor used the proceeds from the sale of the ABS II Certificates to purchase the ABS II Loan from the lender, as described above. The ABS II Regular Certificates were sold to investors at a discount and the OP retained the entire Class F certificate (as described above), with the result that the proceeds, before closing costs, from the ABS II Loan to the ABS II Borrower were approximately $331.8 million. A portion of the net proceeds from the ABS II were used to pay down $242.4 million on the JPM Facility and fund reserves per the credit agreement.

The balance of the ABS II Loan, net of unamortized deferred financing costs and debt discount, is included in notes payable on the consolidated balance sheets. The ABS II Loan is collateralized by 2,436 SFR homes, and as of June 30, 2025, approximately 10.80% of the Portfolio served as collateral for outstanding borrowings under the ABS II Loan. The ABS II Loan, is segregated into seven tranches, (Components A through F), providing for a 5-year, fixed-rate, interest-only loan with a total principal balance of $403.7 million. The weighted average interest rate of the ABS II Regular Certificates (Class A through E2) is 4.6495% and have a maturity date of March 9, 2029.

*<u>MetLife Term Loan I Facilities</u>*

On August 22, 2024, VB Nine and VB Ten as borrowers, entered into the MetLife Term Loan I Facilities with Metropolitan Life Insurance Company and Metropolitan Tower Life Insurance Company, and the lenders party thereto from time to time, which provided a total commitment of $343.2 million. Borrowings under the MetLife Term Loan I Facilities are secured by an equity pledge by VB Nine Equity and VB Ten Equity of their equity interests in VB Nine and VB Ten, respectively, and the property and assets held by VB Nine and VB Ten, respectively, and bear interest at a fixed rate equal to 4.5%. The MetLife Term Loan I Facilities are full-term, interest-only facilities that mature on August 22, 2029. The Company used $282.0 million of the proceeds to pay down a portion of the outstanding amounts under the Warehouse Facility. As of June 30, 2025, the outstanding balance of the MetLife Term Loan I Facilities was approximately $328.4 million.

*<u>MetLife Term Loan II Facility</u>*

On November 4, 2024, VB Eleven, LLC as borrower, entered into MetLife Term Loan II Facility with Metropolitan Life Insurance Company and Metropolitan Tower Life Insurance Company, and the lenders party thereto from time to time. Borrowings under the MetLife Term Loan II Facility are secured by an equity pledge by VB Eleven Equity of its equity interests in VB Eleven and the property and assets held by VB Eleven, and bear interest at a fixed rate equal to 4.75%. The MetLife Term Loan II Facility is a full-term, interest-only facility that matures on November 4, 2029. The Company used $226.8 million of the proceeds to pay down the remaining outstanding amount under the Initial Mortgage. As of June 30, 2025, the outstanding balance of the MetLife Term Loan II Facility was approximately $247.9 million.

*<u>The OSL Loan</u>*

On February 25, 2025, the OP, as borrower, entered into a $10.0 million credit agreement with OSL. OSL is an entity that may be deemed an affiliate of the Company's Adviser through common beneficial ownership. The OSL Loan provides for a 2-year, interest-only loan with a total principal balance of $10.0 million at a 9.0% fixed interest rate and is guaranteed by the Company. On May 5, 2025, the OP used its option to draw an additional $5.0 million on the OSL Loan. As of June 30, 2025, the outstanding balance of the OSL Loan was approximately $15.0 million.

*<u>Refinancing of Capital</u>*

We intend to invest in additional homes as suitable opportunities arise and adequate sources of equity and debt financing are available. In the future, while we may continue to buy older homes and renovate them to add value and increase rental rates, we also intend to invest in newer homes in BTR communities in higher growth markets within our geographic footprint. We expect that future investments in properties, including any improvements or renovations of current or newly acquired properties, will depend on and will be financed by, in whole or in part, our existing cash, future borrowings and the proceeds from additional issuances of shares of Common Stock, Preferred Stock or other securities or property dispositions.

Although we expect to be subject to restrictions on our ability to incur indebtedness, we expect that we will be able to refinance existing indebtedness or incur additional indebtedness for acquisitions or other purposes, if needed. However, there can be no assurance that we will be able to refinance our indebtedness, incur additional indebtedness or access additional sources of capital, such as by issuing Common Stock, preferred stock or other debt or equity securities, on terms that are acceptable to us or at all.

Furthermore, following the completion of our renovations and depending on the interest rate environment at the applicable time, we may seek to refinance our floating rate debt into longer-term fixed rate debt at lower leverage levels.

***Interest Rate Derivative Agreements***

We have entered into and expect to continue to enter into interest rate swap and cap agreements with various third parties to fix or cap the floating interest rates on a majority of our floating rate mortgage debt outstanding. The interest rate swap agreements generally have a term of approximately three to six years and effectively establish a fixed interest rate on debt on the underlying notional amounts. In order to fix a portion of, and mitigate the risk associated with, our floating rate indebtedness (without incurring substantial prepayment penalties or defeasance costs typically associated with fixed rate indebtedness when repaid early or refinanced), we, through the OP, have entered into 10 interest rate swap transactions with KeyBank and Mizuho Capital Markets LLC ("Mizuho") with a combined notional amount of $1.1 billion. As of June 30, 2025, the interest rate swaps we have entered into effectively replace the floating interest rate (daily SOFR) with respect to $1.1 billion of our floating rate mortgage debt outstanding with a weighted average fixed rate of 2.5545%. As of June 30, 2025, interest rate swap agreements effectively covered $1.1 billion, or 250.5%, of our $0.6 billion of floating rate debt outstanding for the VineBrook Portfolio. During the term of these interest rate swap agreements, we are required to make monthly fixed rate payments of 2.5545%, on a weighted average basis, on the notional amounts, while KeyBank and Mizuho are obligated to make monthly floating rate payments based on daily SOFR to us referencing the same notional amounts. For purposes of hedge accounting under ASC 815, *Derivatives and Hedging,* we have designated some of these interest rate swaps as cash flow hedges of interest rate risk. See Notes 5 and 6 to our consolidated financial statements for additional information.

On April 13, 2022, we paid a premium of approximately $12.7 million and entered into an interest rate cap transaction with Goldman Sachs with a notional amount of $300.0 million. The interest rate cap effectively caps one-month term SOFR on $300.0 million of our floating rate debt at 1.50%. The interest rate cap expires on November 1, 2025. On June 27, 2025, we paid a premium of approximately $0.1 million and entered into an interest rate cap transaction with Goldman Sachs with a notional amount of $31.9 million. The interest rate cap effectively caps one-month term SOFR on $31.9 million of our floating rate debt at 4.25%. The interest rate caps expire on November 1, 2025 and July 9, 2027, respectively.

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<u>[**Table of Contents**](#i0d56967759dc4fe89faa1c7c853a3143_7)</u>

**Investments in Subsidiaries**

As of June 30, 2025, the Company, through the OP and its SPE subsidiaries, owned the Portfolio, which consisted of 20,449 properties in the VineBrook Portfolio and 2,103 properties in the NexPoint Homes Portfolio, through 15 SPEs and their various subsidiaries and through the consolidated investment in NexPoint Homes. The following table presents the ownership structure of each SPE group that directly or indirectly owns the title to each real estate asset as of June 30, 2025, the number of assets held, the cost of those assets, the resulting debt allocated to each SPE and whether the debt is a mortgage loan. The table presents the debt allocations to each SPE that collateralize the related debt per the loan agreements. The mortgage loan may be settled from the assets of the below entity or entities to which the loan is made. Loans from the Warehouse Facility can only be settled from the assets owned by VB One, LLC (dollars in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **VIE Name** | **Homes** | **Cost Basis** | **OP Beneficial Ownership %** | **Encumbered by Mortgage** | | **Debt Allocated** | |
| NREA VB I, LLC | 34 | $3384 | 100% | Yes | (1) | $— |  |
| NREA VB II, LLC | 46 | 4685 | 100% | Yes | (1) |  |  |
| NREA VB III, LLC | 442 | 42032 | 100% | Yes | (1) |  |  |
| NREA VB IV, LLC | 125 | 12519 | 100% | Yes | (1) |  |  |
| NREA VB V, LLC | 1085 | 70578 | 100% | Yes | (1) |  |  |
| NREA VB VI, LLC | 111 | 11391 | 100% | Yes | (1) |  |  |
| NREA VB VII, LLC | 21 | 1981 | 100% | Yes | (1) |  |  |
| True FM2017-1, LLC | 173 | 17268 | 100% | Yes |  | 7730 |  |
| VB One, LLC | 5531 | 752446 | 100% | No | (2) | 441795 |  |
| VB Two, LLC | 1560 | 156805 | 100% | No | (2) | 101723 |  |
| VB Three, LLC | 1309 | 196457 | 100% | No | (2) | 96089 |  |
| VB Five, LLC | 116 | 14132 | 100% | Yes |  | 4861 |  |
| VB Eight, LLC | 104 | 16038 | 100% | No | (2) |  |  |
| VB Nine, LLC | 1267 | 186719 | 100% | Yes |  | 164539 |  |
| VB Ten, LLC | 1261 | 185082 | 100% | Yes |  | 163812 |  |
| VB Eleven, LLC | 2040 | 189252 | 100% | Yes |  | 247942 |  |
| VB Twelve, LLC | 77 | 19808 | 100% | Yes |  | 13710 |  |
| VineBrook Homes Borrower 1, LLC | 2711 | 396237 | 100% | Yes |  | 380574 |  |
| VineBrook Homes Borrower 2, LLC | 2436 | 362791 | 100% | Yes |  | 399149 |  |
| NexPoint Homes | 2103 | 629854 | 83% | No |  | 411224 |  |
|  | 22552 | $3269459 |  |  |  | $2433149 | (3) |

---

(1)Assets held, directly or indirectly, by NREA VB I, LLC, NREA VB II, LLC, NREA VB III, LLC, NREA VB IV, LLC, NREA VB V, LLC, NREA VB VI, LLC and NREA VB VII, LLC are not encumbered by a mortgage. The assets within these SPEs were collateral under the Initial Mortgage, which the Company paid off in full on November 4, 2024. As of June 30, 2025, the assets within these SPEs were not allocated to any outstanding debts.

(2)Assets held, directly or indirectly, by VB One, LLC, VB Two, LLC, VB Three, LLC, VB Eight, LLC and NexPoint Homes and its subsidiaries are not encumbered by a mortgage. Instead, the applicable lender has an equity pledge in certain assets of the respective SPEs and an equity pledge in the equity of the respective SPEs.

(3)In addition to the debt allocated to the SPEs noted above, as of June 30, 2025, NexPoint Homes had approximately $97.0 million of debt not collateralized directly by homes which reflects the amount outstanding on the SFR OP Convertible Notes, the SFR OP Note Payable I and the SFR OP Note Payable II as of June 30, 2025.

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**REIT Tax Election and Income Taxes** 

We have elected to be taxed as a REIT under Sections 856 through 860 of the Code commencing with our taxable year ended December 31, 2018 and expect to continue to qualify as a REIT. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our "REIT taxable income," as defined by the Code, to our stockholders. Taxable income from certain non-REIT activities is managed through TRSs and is subject to applicable U.S. federal, state, and local income and margin taxes. We had no significant taxes associated with our TRSs for the three and six months ended June 30, 2025 and 2024. We believe we qualify for taxation as a REIT under the Code, and we intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify as a REIT. NexPoint Homes elected to be taxed as a REIT under Sections 856 through 860 of the Code, beginning with the year ended December 31, 2022.

We anticipate that we will continue to qualify to be taxed as a REIT for U.S. federal income tax purposes, and we intend to continue to be organized and to operate in a manner that will permit us to qualify as a REIT. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to stockholders. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years.

If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate income tax rates, and dividends paid to our stockholders would not be deductible by us in computing taxable income. Any resulting corporate liability could be substantial and could materially and adversely affect our net income and net cash available for distribution to stockholders. Unless we were entitled to relief under certain Code provisions, we also would be disqualified from re-electing to be taxed as a REIT for the four taxable years following the year in which we failed to qualify to be taxed as a REIT.

We evaluate the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are "more-likely-than-not" (greater than 50%) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Our management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. We have no examinations in progress and none are expected at this time.

We recognize our tax positions and evaluate them using a two-step process. First, we determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, we will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement.

We had no material unrecognized tax benefit or expense, accrued interest or penalties as of June 30, 2025. We and our subsidiaries are subject to U.S. federal income tax as well as income tax of various state and local jurisdictions. The 2024, 2023 and 2022 tax years remain open to examination by tax jurisdictions to which our subsidiaries and we are subject. When applicable, we recognize interest and/or penalties related to uncertain tax positions on our consolidated statements of operations and comprehensive income (loss).

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**Dividends** 

We intend to make regular quarterly dividend payments to holders of our Common Stock. We also intend to make the accrued dividend payments on the Series A Preferred Stock, which are payable quarterly in arrears as provided in the articles supplementary setting forth the terms of the Series A Preferred Stock, and the accrued dividend payments on the Series B Preferred Stock, which are payable quarterly in arrears as provided in the articles supplementary setting forth the terms of the Series B Preferred Stock. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gains and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. We intend to make regular quarterly dividend payments of all or substantially all of our taxable income, which is not used to pay dividends on the Series A Preferred Stock and Series B Preferred Stock, to holders of our Common Stock out of assets legally available for this purpose, if and to the extent authorized by our Board. Before we make any dividend payments, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating requirements and debt service on our debt payable. If our cash available for distribution is less than our taxable income, we could be required to sell assets, borrow funds or raise additional capital to make cash dividends or we may make a portion of the required dividend in the form of a taxable distribution of stock or debt securities.

We will make dividend payments based on our estimate of taxable earnings per share of Common Stock, but not earnings calculated pursuant to GAAP. Our dividends and taxable income and GAAP earnings will typically differ due to items such as depreciation and amortization, fair value adjustments, differences in premium amortization and discount accretion, and non-deductible general and administrative expenses. Our dividends per share may be substantially different than our taxable earnings and GAAP earnings per share.

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**Inflation** 

The real estate market has not been affected significantly by inflation in the past several years due to increases in rents nationwide. The majority of our lease terms are for a period of one year or less and reset to market if renewed. The majority of our leases also contain protection provisions applicable to reimbursement billings for utilities. Due to the short-term nature of our leases, we do not believe our results will be materially affected.

Inflation may also affect the overall cost of debt, as the implied cost of capital increases. The Federal Reserve, in response to or in anticipation of continued inflation concerns, could raise interest rates. We intend to mitigate these risks through long-term fixed interest rate loans and interest rate derivatives, which to date have included interest rate cap and interest rate swap agreements.

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**Seasonality** 

We believe that our business and related operating results will be impacted by seasonal factors throughout the year. We experience higher levels of resident move-outs and move-ins during the late spring and summer months, which impacts both our rental revenues and related turnover costs. Furthermore, our property operating costs are seasonally impacted in certain markets for expenses such as repairs to heating, ventilation and air conditioning systems, turn costs and landscaping expenses during the summer season. Additionally, our SFR properties are at greater risk in certain markets for adverse weather conditions such as extreme cold weather in winter months and hurricanes in late summer months.

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**Off-Balance Sheet Arrangements** 

As of June 30, 2025 and December 31, 2024, we had no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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**Critical Accounting Policies and Estimates** 

Management's discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate these judgments, assumptions and estimates for changes that would affect the reported amounts. These estimates are based on management's historical industry experience and on various other judgments and assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these judgments, assumptions and estimates. Below is a discussion of the accounting policies that we consider critical to understanding our financial condition or results of operations where there is uncertainty or where significant judgment is required. A discussion of recently issued accounting pronouncements and our significant accounting policies, including further discussion of the accounting policies described below, can be found in Note 2 "Summary of Significant Accounting Policies" to our consolidated financial statements included in this report.

***Real Estate Investments***

Upon acquisition, we evaluate our acquired SFR properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Since substantially all of the fair value of our acquired properties is concentrated in a single identifiable asset or group of similar identifiable assets and the acquisitions do not include a substantive process, our purchases of homes or portfolios of homes qualify as asset acquisitions. Accordingly, upon acquisition of a property, the Total Consideration is allocated to land, buildings, improvements, fixtures, and intangible lease assets based upon their relative fair values.

The allocation of Total Consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by ASC 820 (see Note 2 to our consolidated financial statements), is based on an independent third-party valuation firm's estimate of the fair value of the tangible and intangible assets and liabilities acquired, or management's internal analysis based on market knowledge obtained from historical transactions. The valuation methodology utilizes market comparable information, depreciated replacement cost and other estimates in allocating value to the tangible assets. The allocation of the Total Consideration to intangible lease assets represents the value associated with the in-place leases, as one month's worth of effective gross income (rental revenue, less credit loss allowance, plus other income) as the average downtime of the assets in the portfolio is approximately one month and the assets in the portfolio are leased on a gross rental structure. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized or accreted as interest expense over the life of the debt assumed.

The allocation of Total Consideration to the various components of properties acquired during the year can have an effect on our net income/(loss) due to the useful depreciable and amortizable lives applicable to each component and the recognition of the related depreciation and amortization expense. For example, if a greater portion of the Total Consideration is allocated to land, which does not depreciate, our net income would be higher. Typically, we allocate between 10% to 30% of the Total Consideration to land.

Real estate assets, including land, buildings, improvements, fixtures, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Expenditures for improvements, renovations, and replacements are capitalized at cost. The Company also incurs costs to prepare acquired properties for rental. These costs are capitalized to the cost of the property during the period the property is undergoing activities to prepare it for its intended use. We capitalize interest costs as a cost of the property only during the period for which activities necessary to prepare an asset for its intended use are ongoing, provided that expenditures for the asset have been made and interest costs have been incurred. Upon completion of the renovation of our properties, all costs of operations, including repairs and maintenance, are expensed as incurred, unless the renovation meets the Company's capitalization criteria.

***Impairment***

Real estate assets are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Significant indicators of impairment may include, but are not limited to, declines in home values, changes in hold periods, rental rates or occupancy percentages, as well as significant changes in the economy. In such cases, the Company will evaluate the recoverability of the assets by comparing the estimated future cash flows expected to result from the use and eventual disposition of each asset to its carrying amount and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount. If impaired, the real estate asset will be written down to its estimated fair value. The process whereby we assess our single-family rental homes for impairment requires significant judgment and assessment of factors that are, at times, subject to significant uncertainty. During the three and six months ended June 30, 2025, zero and $1.0 million of impairments on operating properties not held for sale were recorded, respectively, which are included in loss on sales and impairment of real estate, net on the consolidated statements of operations and comprehensive income (loss), and no significant impairments on operating properties were recorded during the three and six months ended June 30, 2024.

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**Implications of being an Emerging Growth Company**

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act (the " JOBS Act") and we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

The JOBS Act permits an emerging growth company such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to take advantage of this extended transition period. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. We may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act.

We could remain an "emerging growth company" until the earliest of (1) the end of the fiscal year following the fifth anniversary of the date of the first sale of shares of our Common Stock pursuant to an effective registration statement, (2) the last day of the fiscal year in which our annual gross revenues exceed $1.235 billion, (3) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (4) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

Our future income, cash flows, and fair values relevant to financial instruments are dependent upon prevalent market interest rates. Market risk refers to the adverse effect on the value of assets and liabilities from changes in interest rates, market prices, commodity prices, and inflation. The primary market risk to which we are exposed is interest rate risk. We may in the future use derivative financial instruments to manage, or hedge, interest rate risks related to any borrowings we may have. We may enter into such contracts only with major financial institutions based on their credit ratings and other factors.

**Interest Rate Risk**

A primary market risk to which we believe we are exposed is interest rate risk, which may result from many factors, including government monetary and tax policies, unfavorable global and United States economic conditions (including inflation and interest rates), geopolitical tensions, and other factors that are beyond our control. We may incur additional variable rate debt in the future, including additional amounts that we may borrow under the JPM Facility and JPM Acquisition Facility. In addition, decreases in interest rates may lead to additional competition for the acquisition of single-family homes, which may lead to future acquisitions being more costly and resulting in lower yields on single-family homes targeted for acquisition. Significant increases in interest rates may also have an adverse impact on our earnings if we are unable to increase rents on expired leases or acquire single-family homes with rental rates high enough to offset the increase in interest rates on our borrowings.

As of June 30, 2025, we had total indebtedness of $2.6 billion which was comprised of $0.6 billion of outstanding variable-rate debt. As of June 30, 2025, we had effectively converted 250.5% of these borrowings to a fixed rate through interest rate swap and interest rate cap agreements. Our variable-rate borrowings bear interest at the 30-day average SOFR, daily SOFR or one-month term SOFR plus the applicable spread. Assuming no change in the outstanding balance of our existing debt, the projected effect of a 100 bps increase or decrease in the 30-day average SOFR, daily SOFR or one-month term SOFR, collectively, on our annual interest expense would be an estimated increase or decrease of less than $0.1 million. This estimate considers the impact of our interest rate swap agreements and interest rate cap agreements.

This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further, in the event of a change of such magnitude, we may consider taking actions to further mitigate our exposure to the change. However, because of the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure.

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**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

As required by Rule 13a-15(b) and Rule 15d-15(b) under the Exchange Act, our management, including our President and Chief Executive Officer and our Chief Financial Officer, evaluated, as of June 30, 2025, the effectiveness of our disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e) and Rule 15d-15(e). Based on that evaluation, our President and Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025, to provide reasonable assurance that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Exchange Act and is accumulated and communicated to management, including the President and Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

We believe, however, that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls systems are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud or error, if any, within a company have been detected.

**Changes in Internal Control over Financial Reporting**

There has been no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2025, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings**

From time to time, we are party to legal proceedings that arise in the ordinary course of our business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by government agencies (see Note 11).

**Item 1A. Risk Factors**

There have been no material changes to the risk factors previously disclosed under Item 1A, "Risk Factors," of our Annual Report.

**Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities**

*Sales of Common Stock*

The following table presents information regarding the DRIP that have not been previously disclosed in Current Reports on Form 8-K (dollars in thousands, except per share amounts).

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| | | | |
|:---|:---|:---|:---|
| | **Common Stock DRIP** | **Common Stock DRIP** | **Common Stock DRIP** |
|<br>**Date** | **Shares Reinvested** | **Sale Price (1)** | **Gross Contribution (2)** |
| April 30, 2025 | 107289 | $52.90 | 5676 |

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(1)Common Stock DRIP shares are generally purchased at a discounted rate of 97% of the NAV in effect.

(2)For Common Stock issued under the DRIP, we do not receive any cash proceeds from the transaction as the shareholder receives shares in lieu of the cash dividend. Refer to Note 7 for further discussion.

No underwriting discount or commission is applicable to sales pursuant to the DRIP.

The Company issued the Common Stock noted above to accredited investors in reliance upon the exemptions from registration under the Securities Act Securities Act provided by Rule 506(b) under Regulation D promulgated under the Securities Act and Section 4(a)(2) of the Securities Act.

*Amended and Restated Share Repurchase Plan*

On April 27, 2023 the Company publicly announced an amended and restated share repurchase plan (the "Amended Share Repurchase Plan"). The Amended Share Repurchase Plan superseded and replaced the Company's share repurchase plan that began on November 1, 2019 (the "Prior Share Repurchase Plan"). The Amended Share Repurchase Plan is substantially similar to the Prior Share Repurchase Plan, but (i) clarifies that to have Common Stock repurchased, the repurchase request and required documentation must be received by the last business day of the first month of such quarter, (ii) clarifies that repurchase requests not delivered timely on the last business day of the first month of a quarter will not be executed and must be resubmitted after the start of the next quarter and (iii) removes references to the Private Offering that was terminated on September 14, 2022 and a fee on early repurchases that fell away on November 1, 2020.

Under the Amended Share Repurchase Plan, investors may request on a quarterly basis that the Company repurchase all or a portion of their Common Stock. Under the Amended Share Repurchase Plan, Shares will be repurchased at the then-current NAV per share in effect. The total amount of aggregate repurchases of Shares is limited to no more than 5% of the Company's aggregate NAV per calendar quarter. The Company is not obligated to repurchase any Common Stock under the Amended Share Repurchase Plan and may choose to repurchase only some, or even none, of the Common Stock that have been asked to be repurchased in any particular quarter, in the sole discretion of the Board. The Board determined to suspend share repurchases from January 1, 2025 to June 30, 2025. On July 28, 2025, the Board determined to suspend share repurchases for an indefinite period. Notwithstanding any suspension of the Amended Share Repurchase Plan, the Board may permit the repurchase of Common Stock held by a stockholder who has died, is deemed to have a qualified disability (as such term is defined in Section 72(m)(7) of the Internal Revenue Code) or similar extenuating hardship circumstances, subject to the conditions and limitations in the Amended Share Repurchase Plan.

Under the Amended Share Repurchase Plan, investors may request that the Company repurchase all or a portion of their Common Stock by submitting a repurchase request and required documentation to our transfer agent by 4:00 p.m. (Eastern time) on the last business day of the first month of any quarter. Settlements of share repurchases will be made in cash within three business days of the last calendar day of such quarter (a "repurchase date"). An investor may withdraw his or her repurchase request by notifying the Company's transfer agent, directly or through his or her financial intermediary, on the Company's toll-free automated telephone customer service number by 4:00 p.m. (Eastern time) on the applicable repurchase date (or, if such repurchase date is not a business day, the prior business day). If a repurchase order is received after 4:00 p.m. (Eastern time) on the last business day of the first month of a quarter, the purchase order will not be executed and must be resubmitted after the start of the next quarter.

The table below contains information regarding the repurchases of Common Stock by the Company pursuant to the Share Repurchase Plan during the three months ended June 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares Purchased** | **Average Price Paid Per Share** | **Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs** | **Approximate Dollar Value of Shares that may yet be Purchased under the<br>Plans or Programs (in<br>thousands)** |
| April 1 - April 30 |  | $— |  | $— |
| May 1 - May 31 |  |  |  |  |
| June 1 - June 30 | 18154 | 54.56 | 18154 | 69266 |
| **Total** | **18154** | $**54.56** | **18154** | $**69266** |

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**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

None.

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**Item 6. Exhibits**

**EXHIBIT INDEX**

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| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 10.1\* | <u>[Form of Property Management Agreement, dated June 10, 2025 by and between \[Owner\] and Evergreen Residential Management, LLC.](vhti-2025630x10qxex101.htm)</u> |
| 10.2\* | <u>[Form of Asset Management Agreement, by and between \[Owner\] and Evergreen Asset Management, LLC, dated June 10, 2025.](vhti-2025630x10qxex102.htm)</u> |
| 10.3\* | <u>[Real Estate Development Services Agreement, dated June 10, 2025 by and between VineBrook Homes Operating Partnership, L.P. and Evergreen Development Services, LLC.](vhti-2025630x10qxex103.htm)</u> |
| 10.4\* | <u>[Letter Agreement, dated June 10, 2025, by and among VineBrook Homes Operating Partnership, L.P., Evergreen Residential Management, LLC and Evergreen Development Services, LLC.](vhti-2025630x10qxex104.htm)</u> |
| 10.5 | <u>[Loan and Security Agreement, dated June 25, 2025, by and among VB Twelve, LLC, as borrower, VB WH, LLC, as subsidiary guarantor, JPMorgan Chase Bank, National Association as initial lender and administrative agent and the lenders thereto](https://www.sec.gov/Archives/edgar/data/1755755/000143774925021744/ex_835135.htm)[(incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed by the Company on July 1, 2025)](https://www.sec.gov/Archives/edgar/data/1755755/000143774925021744/ex_835135.htm)</u> |
| 31.1\* | <u>[Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](vhti-2025630x10qxex311.htm)</u> |
| 31.2\* | <u>[Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](vhti-2025630x10qxex312.htm)</u> |
| 32.1+ | <u>[Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.](vhti-2025630x10qxex321.htm)</u> |
| 101.INS\* | Inline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document) |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\*&nbsp;&nbsp;&nbsp;&nbsp;Filed herewith.

+&nbsp;&nbsp;&nbsp;&nbsp;Furnished herewith.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

**VINEBROOK HOMES TRUST, INC.**

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ John Good |  | August 14, 2025 |
| John Good | President and Chief Executive Officer |  |
|  | (Principal Executive Officer) |  |
| /s/ Paul Richards |  | August 14, 2025 |
| Paul Richards | Chief Financial Officer, Treasurer and Assistant Secretary |  |
|  | (Principal Financial Officer and Principal Accounting Officer) |  |

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## Exhibit 10.1

**EXECUTION VERSION**

**PROPERTY MANAGEMENT AGREEMENT**

This Property Management Agreement (hereinafter "**Agreement**") is made and entered into as of June 10, 2025 (the "**Effective Date**"), by and between **EVERGREEN RESIDENTIAL MANAGEMENT, LLC**, a Delaware limited liability company ("**Manager**"), and **[Owner]**, a Delaware limited liability company ("**Owner**", and, together with Manager, each individually, a "**Party**" and, collectively, the "**Parties**").

**WHEREAS**, Owner is engaged, directly and indirectly through one or more subsidiaries, in the business of owning and operating certain single-family residential properties with the intent to lease, hold, and sell such properties listed on <u>Exhibit C</u> of this Agreement (each, a "**Property**" and collectively, the "**Properties**"), and Manager provides certain advisory, management, administrative, and related services with respect to residential real estate properties;

**WHEREAS**, an affiliate of Owner, Vinebrook Homes Operating Partnership, L.P., a Delaware limited partnership ("**Springing Guarantor**"), has engaged Evergreen Development Services, LLC, a Delaware limited liability company ("**Service Provider**"), to perform certain acquisition related and project administration services pursuant to that certain Real Estate Development Services Agreement, dated as of the date hereof (the "**Development Services Agreement**"), by and between Service Provider and Springing Guarantor;

**WHEREAS**, Owner has engaged Evergreen Asset Management, LLC, a Delaware limited liability company ("**Asset Manager**"), to perform certain asset management services pursuant to those certain asset management agreements, dated as of the date hereof (individually, or collectively, the "**Asset Management Agreement**"), by and between Asset Manager and Owner;

**WHEREAS**, Owner desires that Manager provide Owner with leasing and lease management, operations, maintenance, repair, and property management, services as more fully set forth herein (as modified from time to time, the "**Services**") with respect to the Properties;

**WHEREAS,** certain affiliates of Owner ("**Owner Affiliates**") have engaged, or will engage, Manager or an affiliate of Manager, pursuant to certain property management agreements on forms substantially similar to this Agreement (the "**Other Property Management Agreements**") with respect to providing property management services to certain properties owned by such Owner Affiliate (the "**Other Properties**", and together with the Properties, collectively, the "**Managed Properties**"); and

**WHEREAS**, Manager desires and agrees to provide the Services with respect to the Properties in accordance with the terms and conditions provided in this Agreement.

**NOW, THEREFORE**, in consideration of the mutual covenants herein set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Appointment</u>. Owner hereby engages, appoints, and retains Manager as an independent contractor to provide the Services for the Properties as Owner's agent during the Term

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(as defined below) in accordance with the terms and conditions of this Agreement (the "**Appointment**"). All obligations incurred by Manager directly in connection with the performance of the Services, and in accordance with the terms and conditions of this Agreement, shall be on behalf of Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Acceptance of Appointment</u>. Manager hereby accepts the Appointment in accordance with the terms and conditions of this Agreement. As of the Effective Date, the Properties that are subject to this Agreement are set forth on <u>Exhibit C</u> attached hereto. Following the Effective Date, any additional properties sourced by Service Provider pursuant to the Development Services Agreement and owned by Owner shall automatically be included in this Agreement and the term "Properties" and <u>Exhibit C</u> shall, subject to <u>Section 5(c)</u> below, thereafter be amended to include such properties. From time to time, Owner may provide written notice to Manager of a property or properties acquired, or to be acquired, by Owner after the Effective Date that were sourced by a party other than Service Provider and that Owner desires to be included in this Agreement (each such notice a "**Non-EG Sourced Property Notice**" and any such property included in the notice, a "**Non-EG Sourced Property**"). Within ten (10) days of Receiving a Non- EG Sourced Property Notice, Manager shall, in its sole discretion, elect (by written notice to Owner) to amend or not amend <u>Exhibit C</u>, subject to Section 5(c) below, to thereafter include each such submitted Non-EG Sourced Property. If Manager fails to timely respond to a Non-EG Sourced Property Notice, then <u>Exhibit C</u> shall not be amended to include any of the properties included in the relevant Non-EG Sourced Property Notice. The Parties acknowledge and agree that Owner anticipates certain additional properties owned by Owner prior to the Effective Date (each such property, a "**Legacy Property**") shall become subject to this Agreement. Owner shall use good faith efforts to submit Legacy Properties to be included in the Managed Properties in accordance with the phasing schedule identified on <u>Exhibit A</u> attached to that certain letter agreement between Manager, Springing Guarantor and Service Provider dated as of the date hereof (the "**Letter Agreement**") and in any event, upon no less than sixty (60) days' prior written notice to Manager, and, to the extent any of the Legacy Properties are owned directly or indirectly by the Owner, the term "Properties" and <u>Exhibit C</u> shall, subject to <u>Section 5(c)</u> below, thereafter be amended to include such Legacy Properties, unless Manager, in its sole discretion, delivers written notice to Owner that a particular Legacy Property shall not be part of this Agreement, as a result of either (x) the inclusion of such Legacy Property having a material adverse effect on Manager and/or the provision of the Services, as determined in Manager's discretion, as a result of any of the following circumstances arising following the Effective Date, (i) violations of Compliance Obligations (as defined herein), (ii) City Requested Inspections (as defined herein), (iii) hazardous materials or other environmental matters, or (iv) illegal activity and other similar circumstances, in each case, occurring at the applicable Legacy Property, or (y) provided Manager has used commercially reasonable efforts to obtain the necessary permits, licenses or approvals issued by a governmental agency or body or otherwise, the inability to obtain such necessary permits, licenses or approvals, beyond the reasonable control of Manager, including, without limitation, due to any act or omission by the party issuing the permit, license or approval, with respect to such Legacy Property (in which case such Legacy Property shall be excluded from the terms "**Property**" or "**Properties**"). Notwithstanding the foregoing, if Owner eliminates the condition creating the basis for Manager rejecting acceptance of the Legacy Property as a Property, then Manager shall be required to accept the Legacy Property as a Property. If, however, Owner cannot eliminate the condition creating the basis for

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Manager rejecting acceptance of the Legacy Property as a Property and elects to sell the Property, then the Property shall be sold pursuant to the terms of the Asset

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Management Agreement. As of the Effective Date, Manager has no knowledge of any facts or circumstances that would reasonably be expected to prevent Manager from obtaining such necessary permits, licenses or approvals with respect to the Legacy Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Manager Subsidiaries</u>. If Manager holds any licenses required to provide the Services under the name of a direct or indirect subsidiary of Manager (a "**Manager Subsidiary**"), Manager is authorized to delegate each such Manager Subsidiary to fulfill the obligations of Manager under this Agreement with respect to each Property located in a jurisdiction for which such Manager Subsidiary is licensed. Manager shall be solely responsible for all fees, compensation and other expenses of all Manager Subsidiaries, and any payments by Manager to Manager Subsidiaries shall not reduce or increase the Management Compensation payable by Owner under this Agreement. Manager and each Manager Subsidiary shall be jointly and severally liable for all of the obligations and liabilities contained in this Agreement, and Manager shall not be relieved of any of the obligations and liabilities contained in this Agreement to the extent that Services are being performed by a Manager Subsidiary. Further, Manager shall, subject to the limitations set forth in <u>Section 33(a)</u>, be liable for, and indemnify Owner for, all conduct of Manager Subsidiaries related to, or in furtherance of, the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Use of Name</u>. To the extent Manager is permitted to use the name of Owner in accordance with the terms of this Agreement, including without limitation, for entering into leases and other agreements in the name of Owner explicitly in accordance with this Agreement, Manager may reproduce Owner's name as reasonably necessary for Manager to provide the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Term and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The initial term of this Agreement shall commence on the Effective Date and shall expire on the seventh (7<sup>th</sup>) anniversary of the Effective Date (the "**Initial Term**"). The Initial Term shall automatically be renewed for successive renewal terms of one (1) year (each such successive one (1) year term, a "**Renewal Term**" and, together with the Initial Term, collectively, the "**Term**") unless earlier terminated or either Party notifies the other Party in writing (a "**Termination Notice**") at least ninety (90) days and no more than one hundred eighty (180) days prior to the expiration date of the Initial Term or the then-current Renewal Term, as the case may be, that such Party elects to terminate this Agreement and this Agreement shall terminate as of the last day in the Initial Term or then-current Renewal term, as the case may be. In the event Owner delivers a Termination Notice to Manager pursuant to this <u>Section 5(a)</u>, Owner shall deliver to Manager therewith, a termination fee in an amount equal to all Management Compensation and any other sums which would have been due to Manager in accordance with the terms of this Agreement for a period of ninety (90) days following the effective termination of this Agreement, provided, however, if a Termination Notice is delivered earlier than ninety (90) days prior to the expiration date of the Initial Term or the then-current Renewal Term, as the case may be, such termination fee shall be reduced proportionately on a day-by-day basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding the provisions of <u>Section 5(a)</u> hereof, this Agreement may be terminated upon prior written notice by the applicable Party for the following reasons upon the time periods set forth below:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)immediately by either Party upon the liquidation, winding-up or termination of the existence of Owner, provided, however, in the event such liquidation, winding-up or termination is the result of a transfer of the assets of Owner to a NexPoint Controlled Transferee, and such NexPoint Controlled Transferee assumes this Agreement, then, Manager shall not be permitted to terminate this Agreement pursuant to this <u>Section 5(b)(i)</u>. For purposes of this Agreement, (i) "**NexPoint Controlled Transferee**" means (a) an affiliate of Owner, or (b) a Delaware Statutory Trust Controlled by NexPoint Real Estate Advisors IV, L.P., a Delaware limited partnership, or its affiliates, (ii) "**Control"** means, when used with respect to any specified Person, the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interest, by contract, or otherwise; and the terms "control", "controlling" and "controlled" have the meanings correlative to the foregoing; (iii) "**Person**" means any individual or Entity, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person where the context so permits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**Entity**" means any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust, Delaware Statutory Trust, cooperative or association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)immediately by either Party upon (i) (x) Manager or its subsidiaries (each, a "**Manager Relevant Person**") or (y) Owner, Vinebrook Home Trust, Inc. or their respective subsidiaries (each, an "**Owner Relevant Person**"; and together with each Manager Relevant Person, each, a "**Relevant Person**"), filing a petition for relief under the Bankruptcy Code, or under any other present or future state or federal law regarding bankruptcy, reorganization or other debtor relief law; (ii) the filing of any pleading or an answer by a Relevant Person in any involuntary proceeding under the Bankruptcy Code (as defined below) or other debtor relief law which admits the jurisdiction of the court or the petition's material allegations regarding such Relevant Person's insolvency; (iii) a general assignment by a Relevant Person for the benefit of creditors; (iv) a Relevant Person applying for, or the appointment of, a receiver, trustee, custodian or liquidator of a Relevant Person or any of its property or (v) the failure of a Relevant Person to effect a full dismissal of any involuntary petition under the Bankruptcy Code or under any other debtor relief law that is filed against a Relevant Person, prior to the earlier of (x) the entry of any court order granting relief sought in such involuntary petition, or (y) one hundred twenty (120) days after the date of filing of such involuntary petition. As used herein "**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, state, local or foreign bankruptcy or insolvency law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)by the non-defaulting Party upon the occurrence of a default by the other Party of any material non-monetary term, covenant, representation or provision hereof, where such default continues uncured for a period of thirty (30) days after receipt of

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written notice of such default from the non-defaulting Party; provided, however, that such thirty

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) day period shall be extended for up to an additional sixty (60) days to the extent the underlying default is not reasonably susceptible of cure within such thirty (30) day period and so long as the defaulting Party has commenced and is diligently pursuing a cure;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)by the non-defaulting Party upon the occurrence of a default by the other Party of any monetary term, covenant or provision hereof where such default continues uncured for a period of thirty (30) days after receipt of written notice of such default from the non-defaulting Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)In accordance with the terms of the Letter Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)immediately by either Party (x) upon the termination of the Asset Management Agreement in accordance with the terms thereof, or (y) upon the termination of any Other Property Management Agreement in accordance with the terms thereof, provided that the Other Property Management Agreement was terminated as a result of a Manager default thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In addition, notwithstanding anything to the contrary contained herein, each Party shall have the right to terminate this Agreement with respect to any particular Property in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Owner shall have the right, upon thirty (30) days' prior written notice to Manager, to terminate this Agreement with respect to any particular Property upon Owner's transfer of ownership of such Property. For each Property so transferred to an unaffiliated party, Owner shall pay to Manager within ten (10) days following such transfer, Manager's out-of-pocket costs incurred in connection with any such transfer and a termination fee equal to $250 for each such Property (collectively, the "**Termination Fee**"), <u>provided</u>, <u>however</u>, no Termination Fee shall be payable by Owner hereunder if such Property transfer was handled by Asset Manager or any of its affiliates under the Asset Management Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Except upon the occurrence of a default by Owner described in <u>Section</u> <u>5(b)(iii)</u> or <u>(iv)</u> (subject to the expiration of the cure periods set forth therein), prior to the effectiveness of any termination of this Agreement, any resignation by Manager or any replacement of Manager, Manager agrees to reasonably cooperate with Owner in the transition of the Services to one or more replacement managers, provided that Manager shall be reimbursed for its reasonable out-of-pocket costs incurred in doing so. Manager shall also, for a period of ninety

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(90) days after such expiration or termination, make itself reasonably available to consult with and advise Owner and any replacement manager regarding the operation and maintenance of the Properties or to otherwise facilitate an orderly transition of the Services to a new manager of the Properties; provided, such consultation and advice shall be limited to Manager's provision, upon Owner's reasonable request, of consultation and advice regarding (x) the provision of Services that Manager provided prior to such termination and/or (y) the transition of such Services to a new manager of the Properties. During any such period, Manager shall be entitled to be reimbursed by Owner within ten (10) business days' following delivery of an invoice for Manager's reasonable out-of-pocket costs and expenses incurred in response to requests from

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Owner (such expenses to be deemed Operating Expenses (as defined below)). This <u>Section 5(d)</u> shall survive the expiration or earlier termination of this Agreement (whether in whole or part).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Except in connection with a termination by Manager pursuant to <u>Section</u> <u>5(a)</u> or <u>5(b)</u>, Manager shall not resign from the obligations and duties hereby imposed on it under this Agreement, or terminate this Agreement with respect to any particular Property, except upon a determination by Manager that (x) the performance of its duties hereunder (or its performance with respect to a particular Property(ies)) is no longer permissible under applicable law(s) and (y) there is no reasonable action which can be taken by Manager to make the performance of its duties hereunder (or its performance with respect to a particular Property(ies)) permissible under such law; provided that Manager shall give at least one hundred eighty (180) days' prior written notice to Owner (or such lesser period of time as is required or reasonably necessary under the applicable law(s)) and, except to the extent required by such applicable law(s), such resignation (or termination) shall be effective upon the earlier of (A) Owner's execution of a management agreement with another manager and the transition of the Services (or the Services for a particular Property(ies)) to such manager or (B) the last day of such hundred eighty (180) day period (or such shorter period as required under such applicable law(s)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)After the effectiveness of any termination of this Agreement with respect to any or all of the Properties, Manager shall (i) surrender and deliver to Owner all rents, security deposits, and income, of the terminated Properties and other monies of Owner on hand and in any bank account in respect thereof within five (5) business days of the effectiveness of any termination of this Agreement with respect to all of the terminated Properties; (ii) deliver to Owner, as received, any monies (other than those covered under 6(f)(i)) due Owner under this Agreement in respect of the terminated Properties (including those monies received by Manager after termination) within thirty (30) days of the effectiveness of any termination of this Agreement; (iii) deliver to Owner all materials and supplies, keys and documents, and such other accountings, books, data, and records (both physical and electronic) pertaining to the terminated Properties within thirty (30) days of the effectiveness of any termination of this Agreement and (iv) assign, to the extent permissible without the applicable counterparty's consent and if requested in writing by Owner, existing contracts relating to the operations and maintenance of the terminated Properties (the "**Related Terminated Property Agreements**") to Owner within thirty (30) days of the effectiveness of any termination of this Agreement, provided that Owner shall agree to assume all liability and existing obligations under any such Related Terminated Property Agreements; provided, further, that if Owner does not elect to have all Related Terminated Property Agreements so assigned, then Manager may terminate or otherwise cancel any Related Terminated Property Agreement not so assigned without any further action or consent by Owner. Within thirty (30) days after such termination, Manager shall deliver to Owner all written reports required in <u>Section</u> <u>8(f) - (g)</u> for any period not covered by such reports at time of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Promptly upon receipt of notice of termination from Owner, or simultaneously with delivery of notice of resignation to Owner, but in no event later than fifteen

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) days after such receipt, Manager shall provide, or cause to be provided, to Owner copies of tenant transition letters that Owner or a successor manager may utilize in notifying tenants upon the termination of this Agreement in accordance with the provisions of this <u>Section 5</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Owner shall continue to pay, in accordance with the terms of this Agreement, the Management Compensation to Manager for all periods prior to the effectiveness of any termination of this Agreement pursuant to this <u>Section 5</u> or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Representations and Warranties.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Manager hereby represents and warrants to Owner, as of the Effective Date,

as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Manager (A) has the requisite authority to enter into this Agreement, and

this Agreement constitutes its legal, valid, binding, and enforceable agreement, (B) is duly organized, validly existing, and in good standing in the jurisdiction in which it is organized, and (C) is duly qualified to do business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its businesses and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Execution and performance by Manager of this Agreement (A) does not breach any agreement of Manager with any third party or any duty arising in law or equity,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) does not violate any laws applicable to it, (C) are within its limited liability company powers, and (D) have been authorized by all necessary limited liability company action of Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)No consent, approval, authorization or order of any state or federal court or governmental agency or body or any third party is required for the consummation by Manager of the transactions contemplated herein, except for those consents, approvals, authorizations or orders that previously have been obtained and except where the failure to obtain those consents, approvals, authorizations or orders is unlikely to affect materially and adversely either the ability of Manager to perform its obligations under this Agreement or the financial condition of Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)There are no legal actions pending or, to Manager's knowledge, threatened in writing against Manager that would reasonably be expected to interfere with its performance under this Agreement, and Manager agrees to promptly inform Owner of any such events that occur during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Manager (or a Manager Subsidiary) has obtained all necessary licenses and permits and regulatory requirements to provide the Services to the Properties subject to this Agreement as of the Effective Date and will maintain the same in full force and effect during the Term, except, in each case, to the extent that failure to do so would not reasonably be expected to prevent Manager from providing the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Owner hereby represents and warrants to Manager, as of the Effective Date, and with respect to any Legacy Property or Non-EG Sourced Property added after the Effective Date then solely with respect to such Legacy Property or Non-EG Sourced Property as of the date on which such Legacy Property or Non-EG Sourced Property is included as a "Property" hereunder in accordance with <u>Section 2</u> above, as follows to the best of its knowledge:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Owner (A) has the requisite authority to enter into this Agreement, and this Agreement constitutes its legal, valid, binding, and enforceable agreement, (B) is duly organized, validly existing, and in good standing in the jurisdiction in which it is organized,

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and (C) is duly qualified to do business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its businesses and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Except as previously disclosed to Manager in writing or as set forth on <u>Schedule I</u> attached hereto, there is no pending or threatened, material litigation or arbitration (or other alternative dispute resolution) proceeding or material labor disputes regarding the Owner or the Properties; and Owner will, to the extent legally permissible, promptly inform Manager of any investigations or proceedings by any foreign, federal, state agencies or material investigations or proceedings by any municipal governmental agencies regarding the Owner or the Properties that occur during the term of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)There are no material breaches or violations of any environmental laws and/or hazardous materials that have been identified at any Property, and Owner agrees to promptly inform Manager in writing of any such events that occur during the term of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Properties, including, without limitation, the maintenance thereof, are (subject to any cure periods) in material compliance with all applicable laws, and any federal, state, or other government regulations or requirements, including material municipal regulations or requirements and the Americans with Disabilities Act or similar state or local law (collectively, "**Compliance Obligations**"), and Owner has not received any written notices of material non-compliance in connection with the foregoing, and Owner agrees to promptly inform Manager in writing of any written notice of material violation of any applicable Compliance Obligation, regarding a Property that occur during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)There are no outstanding unpaid taxes, including real estate taxes, on the Properties which exceed $25,000 on any individual Property, or $1,000,000 on the Properties in aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)The insurance required herein to be maintained by Owner is in full force and effect and all pending insurance claims with respect to the Properties which exceed

$100,000 on any individual Property, or $1,000,000 on the Properties in the aggregate, have been fully disclosed to Manager in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Other than as previously disclosed in writing, any rent disputes or other tenant disputes or claims against Owner in connection with the Properties which have a monetary claim reasonably estimated to exceed $100,000 on any individual property, or

$1,000,000 on the Properties in the aggregate, upon full adjudication of the claim have been fully disclosed to Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Base Services.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Manager shall provide the Services in accordance with the terms of this Agreement. Notwithstanding the foregoing, Owner acknowledges and agrees that Manager

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engages Manager Subsidiaries, and/or other third-party vendors ("**Manager Vendors**") to provide certain of the Services, including but not limited to, day-to-day, property level services (e.g.,

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preservation, repair, management, and related services) on behalf and at the direction of Manager and at Owner's expense if the use of such third-party, and pass-through of the expenses, is explicitly permitted in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Manager shall perform (or cause one or more Manager Subsidiaries and/or Manager Vendors, as the case may be, to perform) the Services (i) in accordance with (A) applicable laws (except to the extent that the failure to do so would not reasonably be expected to have a material adverse effect on Owner or the Properties or would not reasonably be expected to result in Owner or Property incurring fines or other liability) and (B) the express terms of this Agreement, and (ii) in the same manner in which, and with the same care, skill, prudence and diligence with which Manager, or its affiliates, provide similar services with respect to similar assets for third parties; provided, however, that such care, skill, prudence and diligence shall be at least as favorable as the degree of care, skill, prudence and diligence generally applied by prudent property managers of residential real estate, exercising reasonable business judgment (all foregoing subsections collectively the "**Standard of Care**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Manager agrees not to knowingly permit the use of any Property for any purpose which would, based on the terms of the policy, void any policy of insurance held by Owner or which would render any loss thereunder uncollectible, or which would be in violation of any applicable law that, in each case, would have a material adverse effect on the profitability, value, use, operation, leasing or marketability of such Property or results in any material liability to, claim against or obligation of Owner (an "**Individual Material Adverse Effect**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Manager shall advise Owner regarding general operational matters, and implement and maintain or cause to be implemented and maintained appropriate systems, procedures and policies necessary for the proper operation of the Properties; provided, however, that any specific systems or policies requested or required by Owner shall be implemented at Owner's cost. Owner and Manager acknowledge and agree that (i) as of the Effective Date, there are no specific systems or policies requested or required by Owner, and (ii) if Owner requests or requires any such systems or policies be implemented following the Effective Date, then the Parties shall agree to discuss in good faith the implementation of, and the division of costs with respect to, such systems and policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Manager shall obtain all applicable permits and licenses for the Properties, at Owner's cost (excluding, for the avoidance of doubt, any license required to be held by Manager to provide the Services generally), to operate, occupy and lease the Properties as rental properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Manager shall deliver, or cause to be delivered, to Owner, within two (2) business days of Owner's written request, copies of any lease, property tax, insurance bills, statements or invoices received by Manager with respect to the Properties; provided that such two

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) business days period shall be extended if a delay is caused by a third party and Manager is diligently pursuing such item(s) from such third party. Manager shall, as soon as reasonably practicable after written request by Owner, but in no event later than five (5) business days after

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request therefor, furnish or cause to be furnished to Owner in such manner and in such detail as may be reasonably requested by Owner, such additional information, documents, records or reports as may be reasonably requested with respect to the Properties or the conditions or operations, financial or otherwise, of the Properties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Manager shall notify Owner by the fifth day of any month (provided, however, such notice shall be (x) within three (3) business days of the occurrence of the relevant matter with respect to <u>clause (a)</u> below or any matter if Manager, in the exercise of the Standard of Care, deems such matter to be material, or (y) on a regular basis, but in any event within forty- five (45) days of the occurrence of the relevant matter with respect to <u>clause (d)</u> below) of any of the following occurring in the preceding month: (a) any breach or violation of any environmental laws and/or identification of any hazardous materials actually discovered by Manager at any Property; (b) Manager obtaining actual knowledge of any Compliance Obligations to which Owner and/or Manager may be subject; (c) Manager obtaining actual knowledge of any actual or threatened litigation and any other material circumstances, complaints, warnings, notices, liabilities or other matters for which Manager and/or Owner could become liable (including, without limitation, all matters set forth in <u>Section 34</u> for which Manager may have liability but for the terms of <u>Section 34</u>); (d) Manager obtaining actual knowledge of written notice alleging a violation, default or breach of any Property under any applicable law, rule, regulation or ordinance to which such Property is subject (to the extent Owner is not otherwise notified under <u>clause (b)</u> of this paragraph); (e) Manager obtaining actual knowledge of actual or threatened (in writing) condemnation proceedings affecting any Property (f) Manager obtaining actual knowledge of damage to or destruction of the Property in excess of Ten Thousand Dollars ($10,000) or injury to any persons on or about any Property, and (g) Manager obtaining actual knowledge of any condition at a Property that should, under the Standard of Care, be remedied. Notwithstanding the foregoing, Manager shall follow the reporting requirements on <u>Exhibit E</u> for all matters discussed in such Exhibit, even if such reporting deviates from the preceding language in this Section 8(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Renting of Properties</u>. Manager shall, under the Standard of Care and in compliance with applicable law, and in Owner's name, facilitate (or cause to be facilitated) marketing of the Properties for lease and leasing of the Properties, and cause the Properties to be rented to suitable and creditworthy tenants, as determined by Manager. Manager shall market (or cause to be marketed) and procure (or cause to be procured) leases with third party individuals for the Properties, including market research and advertising, digital marketing through customary online channels/media, locating and screening potential tenants, negotiating leases with such tenants and executing and/or brokering leases as agent and attorney-in-fact for Owner (including renewals, expansions, equipment changes, rental abatements, relocations, maintenance agreements, and renewals, modifications and terminations of leases). Manager shall use those certain forms of lease, renewal and other agreements pertaining to the Properties that are approved in writing by Owner from time to time (such approval not to be unreasonably withheld, conditioned or delayed). Without Owner's consent, Manager may make revisions to the nature and substance of all such forms to the extent required by applicable law (as determined in consultation with outside counsel), so long as Manager provides Owner with written notice of the same within thirty (30) days after making such modification. Manager shall be responsible for assuring that all lease forms, renewal forms and other agreement forms pertaining to the Properties comply at all times with all applicable laws and shall not be required to make any changes proposed by Owner if such changes would cause the lease to not comply with applicable law. Manager is and shall be authorized to cause the execution, delivery and renewal of any and all leases for the Properties on behalf of Owner as long as the lease is on a form approved by

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Owner. Manager is authorized to permit (or cause to be permitted) such concessions, considerations or other special arrangements as may be deemed appropriate, necessary or desirable by Manager; but no such concessions, considerations, rebates, free rent, allowances or special arrangements shall be made or given to the extent the same

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would violate any applicable laws or, without the written consent of Owner, if they would exceed two months of rent for the applicable Property for any single matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Employment of Personnel</u>. Manager and/or its affiliates shall employ sufficient qualified personnel and investigate, hire, train, pay, bond and/or insure, supervise and discharge the personnel necessary to be employed, in each case, in order to properly maintain and operate the Properties in accordance with the Standard of Care and this Agreement, which personnel may include any Manager Subsidiaries and/or Management Vendors. No such personnel shall be deemed employees of Owner. The costs of gross salaries and other incentive compensation payments, including payroll taxes, insurance, worker's compensation and other employee benefits of such personnel, shall be solely the responsibility of Manager and are not reimbursable expenses by Owner. Manager shall prepare or cause to be prepared, at its sole cost and expense, for execution and filing by Manager as an independent contractor, all forms and returns required by all federal, state or local laws in connection with income tax, unemployment insurance, workmen's compensation insurance, disability benefits, social security and other similar taxes now in effect or hereafter imposed with respect to any of its employees working at or in respect of the Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Utility Services</u>. Manager shall arrange for and enter into (or cause to be arranged and entered into) contracts for water, electricity, gas, pool maintenance, vermin and pest extermination and control, trash removal (if applicable) and other similar services (collectively, the "**Utility Services**") relating to the ordinary and customary maintenance of each Property in Manager's or Owner's name. Any of the foregoing contracts shall not require Owner's prior approval unless they cover services to be provided to more than one Property and do not have a right for Owner to cancel the contract, for convenience, with thirty (30) days' notice. Owner further authorizes Manager to use funds on deposit in the applicable account, including the Working Capital Account (as defined below) for any such necessary utility deposits required for Utility Service at any such Property and any other services Manager deems necessary, under the Standard of Care, for such Property (any such deposits, the "**Utility Deposits**"). Notwithstanding anything to the contrary contained herein, in no event shall Manager incur expenses with respect to Utility Services or Utility Deposits (in the aggregate per Property per annum) in excess of $5,000 (the "**Utility Expenditure Cap**") without the written consent of Owner, email from <u>nbirney@nexpoint.com</u> or <u>prichards@nexpoint.com</u> being sufficient. Additionally, Manager may enter into an agreement for the payment of utilities with a service provider who provides such services (e.g., Conservice), based upon an agreement mutually acceptable to Manager and such provider, but such arrangement shall not negate the monetary restriction noted in the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Maintenance and Repair of Properties</u>. At Owner's cost (other than costs caused by, or incurred as the result of, the gross negligence, fraud, bad faith, illegal conduct, or willful misconduct, of Manager or those working on behalf of or at the direction of Manager), Manager shall, in accordance with applicable law and subject to the limitations set forth in <u>Section 30</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)maintain or cause to be maintained the buildings, appurtenances and grounds of each Property in "rent-ready" condition, in good repair and operating condition, in

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accordance with the Standard of Care, including, without limitation, performing or causing to be performed all prudent or otherwise desirable repairs, maintenance, cleaning, decorating, alterations, replacements and improvements in and to each Property, maintaining the interior and

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exterior of each Property, painting, landscaping, plumbing, carpentry, maintaining and updating all HVAC and other operating systems and such other normal maintenance and repair work as may be desirable or reasonably requested in writing by Owner, provided that, notwithstanding any contrary provision set forth herein, Manager may make or cause to be made minor repairs, improvements, alterations and decorations of the Property without the prior approval of Owner (each, a "**Minor Maintenance Project**"); provided that (a) the expenditure amount for each Minor Maintenance Project is less than $5,000 individually and $10,000 in the aggregate for any twelve

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) month period (the "**Minor Maintenance Project Expenditure Cap**"), in each case with respect to such Property and (b) the costs of such Minor Maintenance Project shall be paid for by funds then on deposit in the Working Capital Account or such other account designated in writing by Owner, for which Owner has granted Manager access thereto as an authorized user or signatory (each a "**Designated Account**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)perform or cause to be performed all capital improvements, including alterations, improvements, additions, replacements or repairs to the Properties ("**Capital Expenditures**"); provided, however, notwithstanding any contrary provision set forth herein, Manager may not perform or cause to be performed, without the prior written approval of Owner, any Capital Expenditures, if the expenditure amount for such Capital Expenditure is more than

$5,000 individually or $10,000 in the aggregate for any twelve (12) month period, in each case with respect to such Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)perform or cause to be performed repairs required due to emergencies that threaten life, injury or property, or to avoid the suspension of any necessary service to a Property, or to comply with any and all applicable laws ("**Required Repairs**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)engage such suppliers and hire such contractors as reasonably required for the completion of such maintenance and Capital Expenditures.

Subject to any Owner approval expressly required in this <u>Section 12</u>, Owner hereby expressly authorizes Manager to arrange for, supervise, and enter into contracts for all repairs and maintenance as Manager, acting in accordance with the Standard of Care, considers prudent (either in the name of Owner, or Manager or its affiliates), necessary and appropriate to maintain the Properties in good and rentable condition, or as otherwise directed by Owner in its sole judgment. Notwithstanding the foregoing, no contract entered into by Manager in the name of Owner based on the preceding authority (and not otherwise directed by Owner) shall expose Owner to any liability or obligation other than payment for services rendered in accordance with the terms of the contract with such payment to be due on customary payment terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Collection of Rental and Other Income</u>. Manager shall collect, or direct the collection by third parties of, all rent, resident payables, reimbursable expenses, and other applicable charges due from tenants of the Properties and all other fees and other charges otherwise due to Owner with respect to the Properties (all such rental fees and other charges being hereinafter collectively referred to as "**Rental Income**"). Owner authorizes Manager to (or

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to cause any applicable Manager Subsidiary to) request, demand, collect, receive and account for all such Rental Income, and to institute legal proceedings in the name of either Manager, the applicable Manager Subsidiary, or Owner, and as an expense reimbursable by Owner for the collection thereof, and for the dispossession of tenants and other persons from the Properties, which expense

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may include the engaging of counsel for any individual matter, as long as the hourly rate or per matter rate, as applicable, for any attorney billing for such matters does not exceed the greater of

$350 per hour or $1,000 per matter. By the fifth day of each month, Manager shall provide Owner with a list of all judicial proceedings instituted in the prior month by Manager regarding the Properties. Owner shall have the right to dictate the decisions regarding any legal proceeding filed in its name, but Manager may make decisions regarding the proceedings absent written direction to the contrary from the Owner. All tenants shall be directed to send their rent payments to the Owner Collection Account (as defined below). Reasonable attorneys' fees, filing fees, court costs and other necessary expenses incurred by Manager in connection with such actions described above and not recovered from residents shall be paid by Owner. Manager may select the attorney of its choice to handle any such actions as long as the hourly rate or per matter rate, as applicable, for any attorney billing for such matters does not exceed the greater of $350 per hour or $1,000 per matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>Affiliate Arrangements</u>. In performing its responsibilities under this Agreement with respect to the Properties, Manager may, from time to time, and at any time, deal with any of its affiliates or use the services offered by any division or employees of Manager or its affiliates. The amounts payable to any affiliate or Manager itself shall be based on what would have been paid under an arm's-length contract, for the same scope of work, with an un-affiliated entity in the general vicinity and in the city where the applicable Properties are located and shall be terminable concurrently with any termination of this Agreement and shall not be included in any Management Compensation as set forth in this Agreement. Owner acknowledges and agrees that Manager is an affiliate of Evergreen Residential Holdings, LLC, as well as an affiliate of other service providers to Owner in connection with the Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>Tenant Liaison; Tenant Complaints and Requests</u>. Manager shall maintain commercially reasonable communication and relationships with tenants consistent with the Standard of Care, which such methods of maintaining communication and relationships with tenants shall include (without limitation) use of a professionally staffed call center (accessible 24/7/365 with respect to maintenance emergencies and 8:30 AM CT to 5:30 PM CST on Monday to Friday or 10:00 AM CST to 5:00 PM CST on Saturday for all other matters; <u>provided</u>, <u>however</u>, that the call center is closed on Sundays and holidays), access to a professionally designed resident portal at all times, SMS or text messaging capabilities for seeking and receiving customer support and logging maintenance requests, and a functioning (and legally compliant) website accessible by tenants for seeking and receiving customer support, making payments (including autopay), and logging maintenance requests. Further, Manager shall work in good faith with personnel of Owner and its affiliates on the design and functionality of all websites used for communicating with, or advertising to, current or potential tenants of the Properties. Manager shall be responsible for giving or causing to be given (a) all notices and statements as and when required to be sent to tenants under applicable leases of the Properties and applicable law, and (b) all other notices necessary for the administration and management of the Properties.

Manager shall, as Manager reasonably deems necessary, send or cause to be sent appropriate, and legally required, notices of delinquency or other lease violations and apply late

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charges and fees according to the provisions of each tenant lease and applicable law. Manager shall use or cause to be used reasonable and lawful efforts to demand payment of and collect any amounts that are in arrears from a tenant at any Property. Upon written request by Owner with

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respect to compliance with applicable law and leases and delivery of notices in accordance therewith, Manager shall deliver such information as Owner may, in good faith, request in writing from time to time.

If Manager institutes, or responds to, any legal or equitable proceedings to recover any payments or amounts that are in arrears from a tenant at any Property or any other person or entity with respect to a Property, in each case as may be permitted under this Agreement and in accordance with applicable law, such proceedings shall be in the name of either Owner, Manager or a Manager Subsidiary, and, in each case, shall be at Owner's sole expense as long as the hourly rate for any attorney billing for such individual matters does not exceed the greater of $350 per hour or $1,000 per matter.

Manager shall be responsible for receiving and responding timely to consumer complaints as they pertain to tenants, leases and/or Properties. Manager shall maintain complaint resolution policies and procedures and shall further provide Owner with monthly reports summarizing any complaints threatening or resulting in litigation and all other material complaints and responses thereto for the given time period. Manager shall maintain records showing the action(s) taken with respect to each such material complaint made in writing or via phone call to Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.<u>Returns Required by Law</u>. Manager shall execute and file when due all forms, reports and returns required by applicable law relating to the employment of Manager's or its affiliate's personnel (which shall be at Manager's sole expense) and to the operation of the Properties. Manager shall, subject to the limitations set forth in <u>Section 33(a)</u>, indemnify and hold harmless the Owner for any employment claims filed against Owner due to alleged violations of employment law by Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>Affordable Housing</u>. Manager shall reasonably assist Owner (at Owner's sole cost) with matters concerning affordable housing qualification and compliance to the extent applicable, including as required by <u>Section 18</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>Compliance with Legal Requirements</u>. At all times, Manager shall comply with the applicable laws and ordinances affecting the Properties and leasing activities at the Properties by any federal, state, county or municipal authority having jurisdiction thereover and orders of the board of fire underwriters or other similar bodies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.<u>Embargoed Persons</u>. Manager shall, in connection with the approval process for prospective tenants, reject to the extent permissible by applicable laws any application from a prospective tenant that (i) is listed on any Government Lists or (ii) is a person who has been determined by competent authority to be subject to the prohibitions contained in Presidential Executive Order No. 13224 (Sept. 23, 2001) or any other similar prohibitions contained in the rules and regulations of OFAC or in any enabling legislation or other Presidential Executive Orders in respect thereof. Upon Manager obtaining actual knowledge that any tenant of a Property is listed on any Government List, Manager shall promptly and no later than two (2) business days after obtaining actual knowledge (I) provide written notice to Owner and OFAC

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identifying the applicable tenant and related Property, and (II) take such further action with respect to such tenant as is required pursuant to the Patriot Act or other applicable law or regulation. For purposes hereof, the term (x) "**Government List**" means (A) the Annex to Presidential Executive Order 13224

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(Sept. 23, 2001), (B) OFAC's most current list of "Specifically Designated National and Blocked Persons" (which list may be published from time to time in various mediums including, but not limited to, the OFAC website, http://www.treasury.gov/ofac/ downloads/t11sdn.pdf or any successor website or webpage) and (C) any other list of terrorists, terrorist organizations or narcotics traffickers maintained by a Regulatory Authority that Owner notifies Manager in writing is now included in "Government List"; and (y) "**OFAC**" means the Office of Foreign Assets Control of the U.S. Department of Treasury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.<u>Anti-Money Laundering Compliance</u>. Manager has in place and shall maintain procedures to ensure its compliance with all applicable anti-money laundering laws and regulations, including, without limitation, the Patriot Act (collectively, the "**Anti-Money Laundering Laws**"), including conducting the due diligence required under the Anti-Money Laundering Laws in connection with the leases and tenants, including with respect to the legitimacy of the applicable tenant and the origin of the assets used by said tenant to lease the applicable Property and maintaining sufficient information to identify the applicable tenant for purposes of compliance, in all material respects, with the Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.<u>Claims for Tax Abatements and Eminent Domain Awards</u>. When reasonably requested by Owner in writing from time to time, Manager shall, without charge or reimbursement, except for out-of-pocket expenses incurred by Manager, render advice and assistance to Owner in the negotiation and prosecution of all claims for the abatement of property and other taxes affecting any Property and for awards for taking by eminent domain affecting any Property. Manager shall have the right to act on behalf of Owner in connection with any de minimis easement requests or related matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.<u>Insurance Requirements for Manufacturers, Service Providers and</u> <u>Contractors</u>. Manager shall require all service providers, contractors or other providers that are engaged by Manager and providing Services, have appropriate insurance, as reasonably determined by Manager in accordance with Manager's vendor insurance requirements attached hereto as <u>Exhibit F</u>. Any certificates of insurance of such service providers, contractors or other providers that are obtained by Manager shall be kept by Manager in accordance with <u>Section 26</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.<u>Homeowner Associations</u>. Manager shall act as Owner's liaison with each applicable Homeowner Association ("**HOA**") of which the Properties may be a part, and Owner authorizes Manager to receive all notices and other information from such HOAs on behalf of Owner and to provide all information that is reasonably requested by any such HOA. Manager shall pay when due, utilizing funds from the applicable account, including the Working Capital Account (or such other reserve account established by Owner for such purposes, if any), any proper and supported HOA dues, costs and expenses for any Property for which Manager has received an invoice. Manager (and/or employees of Manager or its affiliates) shall serve as Owner's representative on any HOA or similar board on which Owner has control or the right to appoint members or representatives. Manager shall maintain current records of each HOA, including its name, address and contact person(s) and maintain all invoices and receipts relating to each payment made to a HOA, such records to be kept by Manager in accordance with <u>Section 26</u>. For the avoidance of doubt, Manager may utilize a Manager Vendor for the Services

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specified in this <u>Section 23</u> at Manager's expense. In the event this Agreement is terminated, Manager shall work with Owner to ensure Manager or its designee is, within thirty (30) days of the termination,

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replaced by a designee of Owner on all HOA or similar boards on which Owner has control or the right to appoint members or representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.<u>Delays in Performance of Services</u>. In the event a Party's performance of any obligation under this Agreement is delayed by reason of delays beyond such Party's control, including, without limitation, acts of God; abnormal inclement weather for the time of occurrence; war; insurrection; terrorist acts; labor strikes; inability to obtain necessary permits, licenses or approvals, issued by a governmental agency or body or otherwise, including, without limitation, due to any act or omission by the party issuing the permit, license or approval; or any other event outside of the reasonable control of such Party (each, a "**Force Majeure Event**"), the time for completion of such obligation as set forth in this Agreement shall be extended for a reasonable period of time that such Party is unable to fulfill such obligation as a result of any such event and/or this Agreement may be terminated by Manager or Owner with respect to such Property if the performance required by this Agreement is delayed by more than forty-five (45) days; provided, however, that the foregoing shall not apply with respect to either Party's requirement to transfer funds or make payment in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.<u>Manager's Authority</u>. To authorize and permit Manager to perform the Services provided for hereunder, Owner agrees to execute and deliver to Manager (and to the extent reasonably requested by Manager, to cause any Subsidiary (as defined in the Letter Agreement) to execute and deliver) a power of attorney substantially in the form attached hereto as <u>Exhibit A</u> (the "**Power of Attorney**"). The Parties agree to cooperate in good faith to update the Power of Attorney as reasonably requested by either Party, but neither Party shall be in breach of this Agreement for failure to make any such updates. Manager may request in writing that Owner execute certificates, resolutions or other similar documents from time to time as needed to evidence Manager's right to perform the Services and if Owner fails to provide any such documents so requested by Manager within ten (10) Business Days of such request, and such failure precludes Manager's ability to perform any of the Services or Manager's (or its affiliates) obligations hereunder, then, for so long as Owner fails to execute such certificates, resolutions or other similar documents (including during the ten (10) Business Day notice period), Manager shall not be liable for any failure to perform any such Services or obligations so precluded, and any such failure shall not constitute an "event of default" hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.<u>Books and Records</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Manager shall maintain an accurate and complete set of books of account and other records with respect to the Properties and the Services containing, among other things, separate entries for all amounts received and expenditures incurred in the management of the Properties and the provision of the Services. Manager shall provide Owner, and individuals designated by Owner, with access via online (or other readily accessible electronic means) to such records, books and accounts and to all vouchers, files and all other material pertaining to the Properties and this Agreement, and Owner, and other parties designated by Owner, shall have at all reasonable times, upon prior written notice, access to such records, books and accounts and to all vouchers, files and all other material pertaining to the Properties and this Agreement, all of which Manager agrees to keep available and separate from any records not having to do with the

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Properties. Owner shall have the right (at its expense) to audit the books and records of Manager. Such books of account shall be available upon five (5) business days' prior written notice, during normal business hours

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for inspection by Owner or Owner's duly authorized agents. Manager shall maintain and preserve its relevant records, books and accounts, at no cost to Owner. Such books and records shall be kept, in all material respects, in accordance with sound accounting practices and generally accepted accounting principles in effect in the United States and maintained at the office of Manager for a period of seven (7) years after the expiration or termination of this Agreement or such longer period as required by applicable law, unless Owner requests the return of such records (or Manager returns such records to Owner following the termination of this Agreement) in which case Manager shall duly deliver such records to Owner at Owner's cost and expense; provided that Manager shall be entitled to keep copies of such records as may be required under applicable laws, regulations or its document retention and/or archival policies/protocols. All such records shall belong to Owner. To the extent any audit conducted by Owner determines that Owner has overpaid Manager for reimbursable expenses to Manager or direct payments to third-parties by more than 5% in the aggregate, Manager shall be required to reimburse Owner for the cost of the audit, adjust the books, records or accounts, as applicable, to reflect the correct information, and provide Owner with any refunds or other reimbursement that is owed based on the audit results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Manager shall prepare the reports listed on <u>Exhibit G</u> on such periods as are specified therein. Such reports will be received by Owner not later than ten (10) business days following the relevant reporting period. To support the monthly financial reports, Manager shall maintain copies of all relevant records, including, but not limited to, (a) bank statements, bank deposit slips, and canceled checks, (b) comprehensive bank reconciliations, (c) detailed cash receipts records, (d) summaries of adjusting journal entries, and (e) copies of paid invoices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.The parties further acknowledge that Owner is directly or indirectly owned by an entity (a "**REIT Investor**") that is intended to qualify as a "real estate investment trust," as such term is defined in the Internal Revenue Code of 1986, as amended (the "**Code**"), and Manager agrees that it shall use commercially reasonable efforts to operate the Properties such that REIT Investor will not fail to meet the requirements of Sections 856(c)(2), (3) or (4) of the Code as a result of REIT Investor's direct or indirect interest in Owner (assuming that for purposes of this Section 26(c), REIT Investor's direct or indirect interest in Owner is the sole asset of REIT Investor)(the "**REIT Covenant**"); provided that for purposes of complying with the REIT Covenant, (i) at the request of Owner, Manager agrees to provide Owner any information available to Manager or that Manager may obtain without undue effort and expense and reasonably required to determine whether REIT Investor is expected to satisfy the income and assets tests set forth in Sections 856(c)(2), (3) and (4) of the Code; (ii) Manager shall conclusively assume that operating the Properties in accordance with the business plan approved pursuant to the Asset Management Agreement complies with the REIT Covenant; and (iii) Manager may consult with and seek the written consent from Owner relating to any proposed transaction (or other legal matter) described in a lease, sublease, contract for the provision of services to any tenant or subtenant or any other contract or any other proposed transaction ("**Proposed Transaction**") in connection with Manager's compliance with the REIT Covenant and Manager may conclusively rely on the consent of Owner to such Proposed Transaction. Owner shall provide Manager with reasonable written guidance and direction so that Manager may comply with its obligations hereunder and Manager shall not be deemed to be in breach of

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the REIT Covenant if Manager uses commercially reasonable efforts to comply with such guidance and directions. All expenses necessary to so comply with the foregoing obligations shall be reimbursable to Manager, but only to the extent such costs would not have been otherwise incurred pursuant to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.No later than November 15<sup>th</sup> (or the preceding Business Day), Manager shall provide Owner with a proposed, annual budget, for the following calendar year, that covers all Managed Properties and is in a consolidated and by market form (the "**Proposed Annual Budget**"). Further, within thirty (30) days of the end of any of Owner's fiscal quarters, Manager shall provide Owner with a reforecast of the remainder of the Approved Annual Budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.<u>Agent of Owner</u>. Manager shall be acting as the agent of Owner in the performance of its duties as a manager of the Properties to the extent that such duties are performed by Manager, any Manager Subsidiary and/or Manager Vendors in accordance with the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.<u>Working Capital</u>. Owner shall be responsible for providing all such funds as may be necessary to discharge financial commitments, including, but not limited to, accounts payable and other expenses required to manage and operate the Properties, and Manager shall have no responsibility or obligation to furnish or advance any such funds except when such funds are owed due to the gross negligence, fraud, bad faith, illegal activity or willful misconduct, of Manager or any person acting on behalf of or at the direction of Manager. Pursuant to <u>Section 29(c)</u>, Owner shall designate in writing a bank account of Owner, and grant Manager access thereto as an authorized user or signatory for such purposes (the "**Working Capital Account**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.<u>Cash Management</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Operating Accounts</u>. Unless otherwise requested in writing by Owner or otherwise required by applicable law or loan documents applicable to the Properties, Manager shall direct, or cause all applicable Manager Subsidiaries to direct, all tenants to send all rent payments and other sums obtained from tenants under leases (other than the security deposits that are deposited into the Security Deposit Accounts as set forth in <u>Section 29(b)</u>) to an FDIC-insured account in Owner's name for which Owner has designated Manager as an authorized user or signatory (the "**Owner Collection Account**"). Notwithstanding the foregoing, the Parties may agree, with each being able to agree or withhold agreement in its sole discretion, to set up an FDIC- insured account in Manager's name (the "**Manager Operating Account**") for certain purposes hereunder. Unless otherwise requested in writing by Owner or otherwise required by applicable law or loan documents applicable to the Properties, any rent collected by Manager itself in cash or by check or any cash proceeds (if any) held by Manager itself, or in the Manager Operating Account (if any), shall be deposited by Manager to the Owner Collection Account within five (5) days after receipt thereof by Manager. Manager shall be responsible for any transfer fees resulting from movement of funds from the Manager Operating Account to the Owner Collection Account or other account required by the loan documents applicable to the Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Security Deposit Account</u>. Unless otherwise requested in writing by Owner or otherwise required by applicable law or loan documents applicable to the Properties, Manager shall, or shall cause, all applicable Manager Subsidiaries to deposit all security deposits received from tenants in connection with leases of the Properties in an FDIC-insured account at a depository bank reasonably acceptable to Owner and in Owner's name for which Owner has

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designated Manager as an authorized user or signatory (the "**Security Deposit Account**"). Unless otherwise requested in writing by Owner or otherwise required by applicable law or loan documents

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applicable to the Properties, if Manager determines that all or any portion of a security deposit is not required for repair or maintenance or to satisfy overdue amounts due to Owner by a tenant and is otherwise to be returned to any tenant in accordance with the applicable lease and laws, Manager shall cause such amount to be returned to the applicable tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Working Capital</u>. Owner hereby agrees to deposit into the Working Capital Account, or if requested by Owner in writing, into a Designated Account, an amount equal to

$50.00 per Property (the "**Maintenance and Repair Reserve Amount**") to be used by Manager on behalf of and for the benefit of Owner for maintenance and repair of the Properties. Owner may deposit additional amounts in the Working Capital Account or a Designated Account, as applicable, to be used by Manager on behalf of and for the benefit of Owner for tenant turn costs, capital expenditures and other expenditures incurred in the normal course of operating the Properties. If Manager uses or applies all or any portion of the Maintenance and Repair Reserve Amount as provided herein, Owner shall, no more than once per calendar month and within five

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) business days' after demand from Manager, including reasonable supporting documentation for advances made from the Maintenance and Repair Reserve Amount, deposit into the Working Capital Account or a Designated Account, as applicable, an amount of funds sufficient to restore such Maintenance and Repair Reserve Amount to the full Maintenance and Repair Reserve Amount required by this <u>Section 29(c)</u>. The Working Capital Account or a Designated Account, as applicable, may be a sub-account of an Owner operating account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Intentionally Omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Disclaimer</u>. Except for the payment of fees and expenses in accordance with this Agreement and the maintenance of reserves, Manager hereby irrevocably disclaims any and all present or future interests in the Manager Operating Account, the Working Capital Account, or any Designated Account or Security Deposit Account and in any of the collections or security deposits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Accounts</u>. Upon the written request of Owner, the Parties will work in good faith such that each of the Manager Operating Accounts will be deposit accounts in the name of Owner. Manager shall work in good faith with Owner with respect to any account control agreements relating to accounts hereunder that may be required by a lender or in the case of a securitization. Manager further acknowledges that if required by a lender or in the case of a securitization, this Agreement may need to be amended or supplemented for the account structure required by such lender or securitization. To the extent that any of the accounts described in this Agreement are not set up or otherwise functional on the Effective Date, or at the time that there will be cashflow under this Agreement (including with respect to the Properties), the Parties will work in good faith to create an account and cash management structure for such period. Manager is hereby authorized to make any adjustments to any account established in its name in order to comply with applicable law, but to give Owner notice if such change violates this Agreement so that Owner can move the funds to a different account and amend this Agreement as needed to avoid the violation of this Agreement caused by the legal requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.<u>Expense of Owner</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as otherwise set forth in this Agreement, Owner shall be liable for all costs and expenses of maintaining and operating the Properties ("**Operating Expenses**") and all Capital Expenditures made with respect to the Properties, and except as otherwise specifically provided in this <u>Section 30(a)</u>, Owner shall pay for all reasonable out-of-pocket costs and expenses incurred by Manager in connection with the maintenance or operation of the Properties or the performance by Manager of its duties under this Agreement. Owner shall not be obligated to pay for (i) purchases of, or contracts for, materials or services constituting overhead of Manager and centralized software and computer support of Manager, (ii) expenses for Manager's office equipment, supplies, materials or services, (iii) any overhead expenses of Manager incurred with respect to its general offices, (iv) any compensation, benefits, payroll taxes or other direct costs, of personnel of Manager, (v) any costs and expenses specifically allocated to Manager under this Agreement, or (vi) any costs and expenses caused by, or incurred as the result of, the gross negligence, fraud, bad faith, illegal conduct, or willful misconduct, of Manager or those working on behalf of or at the direction of Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Manager is hereby authorized to incur Operating Expenses and Capital Expenditures on behalf of Owner, the necessity, nature and amount of which may be determined in Manager's discretion in accordance with the Standard of Care and the terms of this Agreement. For the avoidance of doubt, Owner's approval shall not be required for any expense that is (i) a Minor Maintenance Project that does not exceed the Minor Maintenance Project Expenditure Cap,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Required Repair, and/or (iii) expenditures for Utility Services and Utility Deposits that do not exceed the Utility Expenditure Cap. All such Operating Expenses and Capital Expenditures shall be paid from funds on deposit in the applicable account, including the Working Capital Account or any Designated Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Manager shall maintain accurate records with respect to each Property reflecting the status of Operating Expenses and Capital Expenditures payable in respect thereof and shall furnish to Owner from time to time such information regarding the payment status of such items as Owner or Owner's lenders may from time-to-time reasonably request. Manager shall arrange for the payment of all Operating Expenses and Capital Expenditures payable by Owner as the same become due and payable out of funds available for that purpose in the applicable account, including the Working Capital Account or a Designated Account, as applicable (excluding any amount paid from any reserve funds held by Owner's lenders). All Operating Expenses and Capital Expenditures (excluding those paid from reserve funds) will be funded through the applicable account, including the Working Capital Account or a Designated Account, as applicable (or such other account designated by Manager from time to time), and Manager shall have no obligation to subsidize, incur, or authorize any Operating Expense or Capital Expenditure that cannot, or will not, be paid by or through the applicable account, including the Working Capital Account or a Designated Account, as applicable (excluding any amount paid from reserve funds).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)For the avoidance of doubt, with respect to each Property, tax, insurance, and HOA dues, costs, and expenses are obligations of Owner and payable from lender escrows, the Working Capital Account or a Designated Account, as applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.<u>Compensation and other Fees to Manager</u>. In consideration of the Services, Owner agrees to pay to Manager the fees set forth on <u>Exhibit B</u> attached hereto (collectively, the "**Management Compensation**"). It is understood and agreed that the Management Compensation

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shall not be reduced by the expenses of Owner under <u>Section 30</u>. Amounts on deposit in the Working Capital Account or any Designated Account may be utilized to pay Management Compensation or, for the avoidance of doubt, any reimbursements to Manager permitted under the terms of this Agreement, as long as such payment would not cause the accounts to lack sufficient funds to cover the budgeted needs of the Properties for the next six (6) months. Notwithstanding the foregoing, nothing contained herein, shall affect Owner's obligation to pay Manager the Management Compensation or any reimbursements to Manager permitted under the terms of this Agreement, at and when the same are due and payable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.<u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)In performing their obligations pursuant to this Agreement, either Party may disclose to the other Party, either directly or indirectly, in writing, orally or by inspection of intangible objects (including, without limitation, documents), certain non-public confidential or proprietary information, including, without limitation, the names and addresses of tenants, the Properties, a party's customers, marketing plans and objectives, research and test results, operating budgets and other information that is confidential and the property of the Party disclosing the information ("**Confidential Information**"). The Parties agree that the term "Confidential Information" shall include (a) business information (including all operating budgets, marketing plans, products and services, employee information, business models, know-how, strategies, designs, reports, data, research, financial information, pricing information, corporate client information, market definitions and information, and business inventions and ideas), and (b) technical information (including software, algorithms, models, developments, inventions, processes, ideas, designs, drawings, engineering, hardware configuration, and technical specifications, including, but not limited to, computer terminal specifications, the source code developed from such specifications, all derivative and reverse-engineered works of the specifications, and the documentation and software related to the source code, the specifications and the derivative works).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each Party (including, without limitation, its respective current and future affiliates, direct and indirect beneficial owners, and their respective officers, directors, managers, counsel, representatives, employees, advisors, accountants, auditors and/or agents ("**Representatives**")) shall receive Confidential Information in confidence and shall not, without the prior written consent of the disclosing Party, disclose any Confidential Information of the disclosing Party in violation of this Agreement; provided, however, that there shall be no obligation on the part of the Parties to maintain in confidence any Confidential Information disclosed to it by the other which (i) is generally known to the trade or the public at the time of such disclosure, (ii) becomes generally known to the trade or the public subsequent to the time of such disclosure, but not as a result of disclosure by the other in violation of this Agreement, (iii) is legally received by either Party or any of its respective Representatives from a third party on a non-confidential basis provided that to such receiving Party's knowledge such third party is not prohibited from disclosing such information to the receiving Party by a contractual, legal or fiduciary obligation to the other Party, its Representatives or another party or (iv) was or hereafter is independently developed by either Party or any of its Representatives without violation of its obligations under this Agreement. Each Party represents and covenants that it will

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protect the Confidential Information of the other Party in accordance with prudent business practices and will use at least the same degree of care to protect the other Party's Confidential Information that it

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uses to protect its own confidential information of a similar type. Notwithstanding anything contained herein to the contrary, (A) a receiving Party shall be permitted to disclose Confidential Information (i)(a) to any Regulatory Authority (as defined below), without notice to, or consent by, the disclosing Party, (1) in the course of an ordinary examination, inquiry, or routine audit, that does not target the other Party, the Properties, this Agreement, or the Confidential Information and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) as otherwise required by applicable law, rule, or regulation, (including those of the Securities and Exchange Commission ("**SEC**") and (b) in the event that the receiving Party or any of its Representatives receives a request or is required by applicable law, rule, regulation, legal proceeding, court order, subpoena, deposition, administrative proceeding, inspection, audit, civil investigative demand, formal or informal investigation by any government or governmental agency or authority or other legal, governmental or regulatory process, or other legal process, to disclose all or part of the Confidential Information to, among others, a court, arbitral panel, governmental agency or other tribunal, the receiving Party will, to the extent legally permitted, notify the disclosing Party of the request, reasonably cooperate with the disclosing Party in seeking a protective order or request for other appropriate remedy to the extent legally permissible and at the sole cost and expense of the disclosing Party, disclose only that portion of Confidential Information which is requested or legally required to be disclosed and exercise its commercially reasonable efforts to ensure that confidential treatment will be accorded to the Confidential Information by the party receiving the same, (ii) to any actual or potential investor, lender, rating agency or their respective Representatives in connection with an equity investment, financing, refinancing or securitization, of a Property, (iii) that is disclosed in connection with litigation regarding this Agreement or the subject matter contained herein, or (iv) to such receiving Party's Representatives so long as such Representative is made aware of the confidential nature of the Confidential Information; such receiving Party agrees to be responsible for any action of its Representatives that would amount to a breach of the confidentiality obligations contained herein if such Representative were the receiving Party and (B) Manager shall be permitted to disclose (1) the Confidential Information to Manager Subsidiaries and Manager Vendors (and such parties shall be permitted to further disclose) to the extent reasonably necessary (as determined by Manager in accordance with the Standard of Care) to perform the Services but Manager agrees to be responsible for any action of any Manager Subsidiary and Manager Vendor that would amount to a breach of the confidentiality obligations contained herein if such Manager Subsidiary or Manager Vendor was the receiving Party and (2) the relevant portions of this Agreement, (including the Power of Attorney) to any title company or any other party that requires, as part of Managers performance of the Services, evidence of Manager's authority to perform its obligations under this Agreement or to delegate the same to Manager Subsidiaries and/or Manager Vendors; provided that, in the case of the foregoing <u>clause (A)</u>, such persons are informed of the confidential nature of the information. As used herein, "**Regulatory Authority**" means all local, state and federal regulatory authorities, including the Consumer Financial Protection Bureau, that currently has, or may in the future have, jurisdiction or exercising regulatory or similar oversight with respect to any of the activities contemplated by this Agreement or to Owner, Owner's affiliates, or Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Parties agree that the disclosing Party owns all rights, title and interest in and to its Confidential Information and any and all modifications to such Confidential

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Information, and that the Party receiving the Confidential Information will not reverse-engineer any software or other materials embodying the Confidential Information. The Parties acknowledge that Confidential Information is being provided for limited use internally, and the receiving Party

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agrees to use the Confidential Information only in accordance with the terms and conditions of this Agreement and in furtherance of the Services. Except as expressly provided herein, no right or license whatsoever is granted with respect to the Confidential Information or otherwise. Notwithstanding anything to the contrary contained herein, Owner shall own all Confidential Information with respect to the Properties, which, for the avoidance of doubt, shall not include any Confidential Information relating to Manager, any Manager Subsidiary, or any Manager Vendor), and Owner shall be free to disclose such Confidential Information to third parties in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Following termination of this Agreement, upon the request of the disclosing Party, the non-disclosing Party will, promptly after receiving a written request by the disclosing Party, destroy all Confidential Information furnished to it and/or any of its Representatives by or on behalf of the disclosing Party. Except to the extent a Party is advised by legal counsel that such destruction is prohibited by applicable law, the non-disclosing Party and its Representatives will also destroy all written material, memoranda, notes, copies, excerpts and other writings or recordings whatsoever prepared by the non-disclosing Party and/or its Representatives based upon, containing or otherwise reflecting any Confidential Information; provided, however, that neither the non-disclosing Party nor any of its Representatives shall be obligated to return or destroy Confidential Information (i) to the extent it has been electronically archived by any such Party in accordance with its automated security and/or disaster recovery procedures as in effect from time to time or (ii) to the extent required by law or their respective internal record retention policies for legal, compliance or regulatory purposes; provided that any such Confidential Information retained shall remain subject to the confidentiality provisions contained herein for (x) with respect to Confidential Information pertaining to Manager's, any Manager Subsidiary's or any Manager Vendor's business information or operations, for two (2) years following the date on which Manager is no longer providing the types of services covered by this Agreement for any property owned by Owner or its affiliates and (y) with respect to all other Confidential Information not covered in subclause (x) hereof, one (1) year following the date on which Manager is no longer providing the types of services covered by this Agreement for any property owned by Owner or its affiliates, provided, however, Owner may not, without the prior written consent of the relevant Manager Owner (as defined below) (which consent may be granted or withheld in such Manager Owner's sole discretion), make any announcement suggesting that Owner is working with, or in a contractual relationship with, any person or entity that Owner knows to be a Manager Owner unless a separate written agreement exists between such Manager Owner and Owner or its affiliates. At the request of the disclosing Party made at the time of its request for the return and/or destruction of Confidential Information, the return and/or destruction of materials in accordance with the foregoing shall be confirmed to the disclosing Party in writing by an authorized officer of the non- disclosing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Owner has informed Manager of the applicability of United States federal and state securities laws to the use of material, non-public information, specifically as it relates to trading in securities of VineBrook Homes Trust, Inc., the indirect parent of Owner, and Manager agrees to comply, shall inform all Manager Parties and use commercially reasonable efforts to cause Manager Parties to comply, with such rules and related regulations in all material respects

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and the VineBrook Homes Trust, Inc. insider trading policy, which was provided to Manager prior to its execution of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Neither Party nor any of their respective affiliates shall issue any press releases or otherwise make any public statements with respect to the other Party, any Manager, Owner, or any of their respective affiliates, or the transactions contemplated by this Agreement, including, without limitation, making reference to or using the name of the other Party, any Manager Owner, or any of their respective affiliates, under any circumstance, without the prior written consent of Manager, such Manager Owner or Owner, as applicable, which consent may be granted or withheld in Manager's, such Manager Owner's or Owner's sole discretion, as applicable. The Parties agree, however, that Owner and its affiliates may make such disclosures as are required by them by the regulations of the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.<u>Indemnification and Release Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Manager shall indemnify, defend, protect and hold harmless Owner and its affiliates, and their respective past, present, and future, members, managers, officers, directors, partners, shareholders, attorneys, agents, principals, consultants, and employees, and their respective successors and assigns, (each, an "**Owner Indemnitee**"), from and against any and all losses, claims, actions, causes of action, liabilities, damages, deficiencies, and reasonable and documented out-of-pocket costs and expenses, including (but not limited to) interest, penalties and reasonable and documented out-of-pocket attorneys' fees, (each of the foregoing individually a "**Claim**" and collectively the "**Claims**"), arising out of, or to the extent attributable to, any or all of (i) the gross negligence, fraud, bad faith, illegal activity, or willful misconduct of Manager, (ii) any failure of Manager to materially perform any of its obligations as and when required under this Agreement, but only following the expiration of any applicable notice and cure periods, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a knowing and intentional breach of any representation made by Manager in this Agreement. Manager shall not however, owe any indemnity under this Agreement to the extent the matter for which indemnification is sought is (x) caused or relates to, or arises from, any Owner Indemnitee's gross negligence, fraud, bad faith, illegal activity, willful misconduct or material breach of this Agreement or (y) one for which Owner owes Manager indemnification, and <u>provided</u>, <u>further</u>, that Manager's indemnification obligations hereunder (other than to the extent arising under clause (i) or clause (iii) of this <u>Section 33(a)</u>) shall not exceed the greater of (i) the insurance proceeds available from policies carried by Manager or (ii) the greater of the amount of the Management Compensation received under this Agreement and Ten Million Dollars ($10,000,000.00). The indemnification contained in this <u>Section 33(a)</u> shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Owner shall defend, indemnify, protect and hold harmless Manager, Manager's affiliates and Manager's Owners, and their respective members, managers, officers, directors, partners, attorneys, agents, principals, contractors, subcontractors and employees, and each of them (each, a "**Manager Indemnitee**"), from and against any and all Claims arising out of, or to the extent attributable to, any or all of (i) the Properties or management thereof by Manager in accordance with this Agreement, (ii) the failure of Owner to materially perform its obligations hereunder as and when required under this Agreement, but only following the expiration of any applicable notice and cure periods, (iii) conduct at or management of the Properties prior to the Effective Date, (iv) conduct of Owner prior to the Effective Date, or (v)

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the material breach of any representation made by Owner in this Agreement. Owner shall not, however, owe any indemnity under this Agreement to the extent the matter for which indemnification is sought is (x) caused by, relates to, or arises from, any Manager Indemnitee's gross negligence, fraud, bad faith, illegal activity, willful misconduct or material breach of this Agreement or (y) one for which Manager

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owes Owner indemnification. The indemnification contained in this <u>Section 5(b)</u> shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Within 15 days after receipt by a party seeking indemnification ("**Indemnified Party**") of written notice of the commencement of any proceeding against it regarding a Claim for which the Indemnified Party seeks indemnification, as applicable, such Indemnified Party will give written notice (in reasonable detail and indicating the estimated amount of such Claims, in each case to the extent reasonably practicable) to the party from whom indemnification is sought (such party, the "<u>Indemnifying Party</u>") of the commencement of such proceeding. The failure to notify the Indemnifying Party within such 15-day period will not relieve the Indemnifying Party of any liability that it may have to the Indemnified Party, except to the extent that the Indemnifying Party demonstrates that the Indemnifying Party is prejudiced by the Indemnified Party's failure to give such notice. If any such proceeding is brought against an Indemnified Party and such Indemnified Party gives notice thereof to the Indemnifying Party, the Indemnifying Party will be entitled to participate in such proceeding (at its sole cost and expense) or, subject to the limitations set forth herein, to assume the defense of such proceeding (at its sole cost and expense) with counsel reasonably satisfactory to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume the defense of a proceeding, the Indemnifying Party will not, as long as it diligently conducts such defense, be liable to the Indemnified Party under this <u>Section 33</u> for any fees of other counsel or any other expenses with respect to the defense of such proceeding, in each case subsequently incurred by the Indemnified Party in connection with the defense of such proceeding; <u>provided</u>, that the Indemnified Party shall have the right to participate in the defense of any claim or proceeding with counsel selected by it, subject to the Indemnifying Party's right to control the defense thereof; <u>provided</u>, <u>further</u>, that the Indemnified Party shall have the right to participate in the defense of any claim or proceeding with separate counsel paid for by the Indemnifying Party if the Indemnified Party, on advice of counsel, notifies the Indemnifying Party that there is a conflict of interest between the Indemnified Party and the Indemnifying Party or the Indemnified Party has defenses available to it that are not available to the Indemnifying Party. If the Indemnifying Party assumes the defense of a proceeding, the Indemnified Party will reasonably cooperate in the defense or prosecution thereof. The Indemnifying Party's right to conduct the defense of a proceeding will be conditioned upon the Indemnifying Party's continued diligent, good-faith defense of such proceeding. If the Indemnifying Party ceases to diligently defend in good faith such proceeding after 10 days' written notice thereof by the Indemnified Party, the Indemnified Party may thereafter defend, compromise and settle such third-party proceeding. Unless the settlement, compromise or consent provides for a full release of the Indemnified Party with regard to the Claims on which the Indemnified Party sought indemnification, no Indemnifying Party will settle, compromise or consent to the entry of a judgment of any claim or proceeding subject to this <u>Section 33</u> without the prior written consent of the Indemnified Party, which consent may be granted or withheld in the Indemnified Party's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.<u>Exculpation</u>. Notwithstanding anything herein to the contrary (but provided in each case that neither Manager, nor anyone one acting at its direction or on its behalf, nor any of their directors, agents (including any third-party to whom Manager has delegated the performance of any of its duties or obligations under this Agreement), employees, or officers

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(collectively with Manager, the "**Manager Parties**"), has directed a party to undertake the conduct at issue, or acted in an illegal manner or with fraud, bad faith, gross negligence or willful misconduct in connection

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therewith nor materially breached this Agreement beyond any applicable notice and/or cure periods), Manager assumes no liability and shall not be liable for: (a) any acts or omissions of (i) Owner or any previous or subsequent owners of each Property unless Manager, or any Manager Party, was a previous or subsequent owner of the applicable Property when such act or omission occurred, (ii) any previous or subsequent property managers or other agents of Owner or any previous owner of each Property, other than any Manager Party, (iii) any third parties who were engaged by or on behalf of Owner or any previous owner of each Property, or subsequent or previous property manager, including, without limitation, any service providers, contractors, subcontractors, vendors or other providers, other than any Manager Party or (iii) any other third party not engaged by any Manager Party; (b) any failure of or default by any tenant (other than a Manager Party) in the payment of any rent or other charges due Owner, or for any such tenant's failure to perform any of its obligations under its lease or with respect to such tenant's or its invitees' conduct at the Property, or in the performance of any obligations owed by any tenant (other than a Manager Party) to Owner pursuant to any rental agreement or otherwise; (c) any liability for violations of environmental laws; (d) the financial performance of each Property; (e) compliance by each Property, any building thereon or any equipment therein with the requirements of the Compliance Obligations; (f) any fees or costs associated with the remediation, maintenance, repair or replacement of a Property to address any inspection items noted on a inspections requested by the state, county, city or municipality including, but are not limited to, code compliance inspections, subsidized housing inspections and rental license inspections (collectively, "**City Requested Inspections**") or otherwise required by a city or municipality in which a Property sits; and/or (g) any fines, fees or costs assessed by any City Requested Inspection of a Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.<u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As an Operating Expense, Owner or Owner's representative shall cause to be provided and maintained the insurance coverages for the Properties in such amounts and with such coverages as determined by Owner in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)At its own expense, Manager shall maintain each and all of the following types and amounts of insurance coverage and such other insurance (e.g., fire, flood, earthquake, etc.) as Manager considers appropriate in connection with its business or as otherwise required or directed by Owner. Owner shall be named as an additional insured under Manager's automobile, commercial general liability, umbrella, and cyber policies. Further, each policy shall contain an endorsement requiring the insurer to provide Owner with thirty (30) days written notice prior to cancellation of the policy. Insurance coverage shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Comprehensive crime insurance including employee dishonesty covering Manager, Manager Subsidiary and all employees of Manager handling Owner's funds or other documents, with a per claim limit of not less than One Million Dollars ($1,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Errors and omissions insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence and in aggregate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Worker's compensation insurance in compliance with all applicable federal, state and local laws and regulations covering all employees of Manager.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Commercial automobile liability coverage of Two Million Dollars ($2,000,000) per accident, combined single limit bodily injury and property damage (which coverage shall include, without limitation, liability assumed under any contract).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Commercial General Liability insurance with a combined single limit of not less than One Million Dollars ($1,000,000) combined single limit per occurrence and Two Million Dollars ($2,000,000) in the aggregate, applying to bodily injury and property damage, with Broad Form Liability Endorsement on an occurrence basis and including coverage for the hazards of operation, independent contractors, products and completed operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Comprehensive cyber insurance, with a per-claim and aggregate limit of not less than Two Million Dollars ($2,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Directors' and officers' fiduciary and employment practices liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence and in aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Umbrella Liability insurance with a combined single limit of not less than Ten Million Dollars ($10,000,000), per occurrence, for bodily injury and property damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)Employment Practices Liability insurance covering claims arising from actual or alleged wrongful termination, discrimination, harassment (including sexual harassment), retaliation, and other wrongful employment acts, with minimum limits of Two Million Dollars

$2,000,000 per claim and in the aggregate, including coverage for third-party liability claims. Such insurance shall include coverage for claims brought by current, former, and prospective employees, as well as tenants and other third parties interacting with employees. Coverage shall be maintained on a claims-made basis with a retroactive date no later than the inception of Manager's services under this Agreement, and Manager shall maintain extended reporting period coverage (tail coverage) for at least three (3) years following termination of services under this Agreement. The policy shall not contain exclusions materially inconsistent with the scope of employment-related risks assumed by Manager in performing its services.

All insurance policies required above shall be written with solvent insurance companies and Manager shall furnish, or cause to be furnished, original certified copies of certificates or (at Owner's option) policies of insurance to Owner, prior to or upon the Effective Date, and within thirty (30) days following Owner's request therefor, evidencing the insurance coverage described above. All policies that Manager is required to carry must be endorsed to provide a waiver of subrogation in favor of Owner and its partners, members, officers, directors, agents, employees, lenders, successors, and assigns (including any deductibles). Manager shall notify Owner and Owner's insurance carrier promptly upon becoming aware of any casualty, loss, injury, claim or other event which may result in a claim under any policy maintained by Manager if related to the Services under this Agreement. Upon Owner's request, Manager shall furnish such evidence of all renewals to Owner within thirty (30) days following such renewal. Manager will reasonably cooperate with Owner and Owner's insurance carrier on loss control inspections, responding to recommendations and other safety issues with respect to Owner's insurance.

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Notwithstanding anything to the contrary contained herein, Manager shall have thirty (30) days following the Effective Date to obtain the insurance described in Sections 35(b)(viii) and (iv) above, provided, however, in the event that such insurance is not obtained in such time period, and provided that Manager has commenced and is diligently pursuing such insurance, such thirty (30) day period shall be extended for an additional thirty (30) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.<u>Funds Received After Termination</u>. In the event Manager receives any funds, including, but not limited to, Rental Income, payments on damages, past due amounts, etc., with respect to any of the Properties on behalf of Owner after the expiration or termination of this Agreement (collectively, the "**Post Termination Funds**"), Manager shall, within five (5) business days of receipt thereof, remit any and all such Post Termination Funds to Owner in the form so received by Manager. Owner shall reimburse Manager for Manager's actual out-of-pocket expenses incurred in connection with the delivery to Owner of any such Post Termination Funds. In addition, Owner shall remit payment of undisputed fees or other unreimbursed costs to Manager within the time such payment would have been due if there was no termination or expiration of this Agreement for Services performed or expense or liability incurred by Manager prior to such termination or expiration. This <u>Section 36</u> shall survive the termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.<u>Limitation of Liability</u>. OTHER THAN AS THE RESULT OF MANAGER'S BAD FAITH, GROSS NEGLIGENCE, FRAUD, ILLEGAL CONDUCT OR WILLFUL MISCONDUCT, IN NO EVENT SHALL OWNER OR MANAGER BE LIABLE TO THE OTHER FOR SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL LOSS OR DAMAGE OF ANY KIND WHATSOEVER (INCLUDING BUT NOT LIMITED TO LOST PROFITS), ARISING OUT OF THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE LIKELIHOOD OF SUCH LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF ACTION, EXCEPT TO THE EXTENT OWED TO THIRD PARTIES. FURTHER, NO DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE, BENEFICIARY, MANAGER OR AGENT IN OR OF OWNER OR MANAGER (AND NO OFFICER, DIRECTOR, EMPLOYEE, AGENT, MANAGER OR TRUSTEE OF ANY OF THE FOREGOING) WILL BE PERSONALLY LIABLE FOR THE PERFORMANCE OF OWNER'S OR MANAGER'S, AS APPLICABLE, OBLIGATIONS UNDER THIS AGREEMENT. OWNER AGREES TO LOOK SOLELY TO MANAGER AND NOT TO ANY DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE, BENEFICIARY, MANAGER OR AGENT IN OR OF MANAGER TO ENFORCE ITS RIGHTS HEREUNDER. OTHER THAN AS A RESULT OF OWNER'S BAD FAITH, GROSS NEGLIGENCE, FRAUD, ILLEGAL CONDUCT OR WILLFUL MISCONDUCT, OR AS PROVIDED IN SECTION 56 HEREOF, MANAGER AGREES TO LOOK SOLELY TO OWNER AND NOT TO SPRINGING GUARANTOR OR ANY DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE, BENEFICIARY, MANAGER OR AGENT IN OR OF OWNER TO ENFORCE MANAGER'S RIGHTS ARISING UNDER THIS AGREEMENT.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.<u>Dispute Resolution</u>. It is the intent of Owner and Manager to use commercially reasonable efforts to, on a mutually acceptable negotiated basis, expeditiously resolve any dispute, controversy or claim between or among them with respect to the matters covered by this

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Agreement and that may arise from time to time. In furtherance of the foregoing, if Owner or Manager are unable to resolve any dispute, controversy or claim among their respective representatives then either Owner or Manager may deliver to the other written notice (each such notice, an "**Escalation Notice**") demanding an in-person meeting involving senior level management of Owner and Manager, or if each of Owner and Manager agree, of the appropriate strategic business unit or division within such entity (each such individual so designated being a "**Relationship Executive**"). In response to an Escalation Notice, each of Owner and Manager shall set an agenda, location and, if necessary, procedures, to discuss, negotiate and resolve the matter(s) set forth in such Escalation Notice. Owner and Manager shall use commercially reasonable efforts to meet no later than thirty (30) days following receipt of an Escalation Notice. Neither Owner nor Manager may initiate a termination of this Agreement or initiate a legal action or proceeding in respect of the dispute, controversy or claim described in an Escalation Notice (other than to comply with any applicable statute of limitation) until the earlier to occur of: (i) the 45th day following the delivery of the Escalation Notice and (ii) two (2) business days following the second meeting (either by phone or in person) of dispute, controversy or claim the Relationship Executives or their designees to specifically address the matter(s) set forth in such Escalation Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.<u>Governing Law</u>. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Texas without regard to the conflict of laws principles thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40.<u>Notice</u>. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and may be sent by United States mail, postage prepaid, electronic mail, or overnight courier or messenger, to the respective parties at the addresses shown below or at such other addresses as the parties hereto may, from time to time, hereafter designate in writing:

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| | |
|:---|:---|
| If to Owner: | &nbsp;&nbsp;c/o NexPoint Real Estate Advisors V, L.P. 300 Crescent Court, Suite 700<br>Dallas, Texas 75201<br>Attention: Legal Department, VineBrook Email: legal@nexpoint.com |
| If to Manager: | &nbsp;&nbsp;c/o Evergreen Residential Holdings, LLC 1999 Bryan Street, 13<sup>th</sup> Floor<br>Dallas, Texas 75201 Attention: Legal Department<br>Email: legal@evergreenresi.com |
| With a copy to: | &nbsp;&nbsp;Willkie Farr & Gallagher LLP 787 Seventh Avenue<br>New York, New York 10019 Attention: Kris Agarwal Email: kagarwal@willkie.com |

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Any notices complying with the provisions of this Section shall be deemed to have been properly made only when received by such party, evidence of receipt from a third-party, overnight delivery service being sufficient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.<u>Severability</u>. If any provision or term of this Agreement shall be determined by any court of competent jurisdiction to be invalid or unenforceable for any reason whatsoever, the remainder of this Agreement shall not be affected thereby, and each provision hereof shall be valid and shall be enforced to the fullest extent of law unless the consideration for the Agreement is negated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.<u>No Joint Venture or Partnership</u>. Manager is an independent contractor and nothing contained in this Agreement or in any document executed in connection with this Agreement shall be construed to create a joint venture, partnership, or agency relationship between the parties. Manager's employees and Manager Vendors shall not be deemed to be employees of Owner. In no event shall Manager have any obligation or liability whatsoever with respect to any debts, obligations, or liabilities of Owner other than as expressly set forth herein. Manager shall have no authority to enter into agreements of any kind on behalf of Owner or otherwise bind or obligate Owner to any third party in any manner whatsoever other than as expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43.<u>Entire Agreement</u>. This Agreement, the Development Services Agreement, the Asset Management Agreement, and the Letter Agreement, constitute the entire agreement between the parties and supersedes any prior agreements, promises, negotiations between Manager and Owner relating to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44.<u>Amendment; Waiver</u>. Any amendment of this Agreement may be made only by a written instrument executed by Manager and Owner. No waiver by any party of any obligation of the other party, or any breach or default by the other party in the performance by such party of its obligations hereunder, shall be binding or enforceable except to the extent set forth in a writing signed by the party sought to be charged thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45.<u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.<u>Assignment</u>. This Agreement may not be assigned by either Party without the prior written consent of the other Party hereto; provided, that Manager may assign this Agreement to an affiliate of Manager without the consent of Owner, but upon thirty (30) days' prior written notice to Owner, and Owner may without the consent of Manager, but upon thirty (30) days' prior written notice to Manager, assign this Agreement to a NexPoint Controlled Transferee, so long as such transferee is the owner of the Properties at the time of, or in conjunction with, such assignment. The provisions hereof shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties hereto and the predecessors shall not be relieved of their liability for any of their obligations under this Agreement arising prior to the assignment of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.<u>Competitive Projects</u>. Owner and Manager, in each case, individually or with others, may engage in, own, manage or possess any interest in any other properties, projects and

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ventures of every nature and description, including, but not limited to, the ownership, financing, leasing, operation, management, brokerage, development and sale of real property and single

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family rental projects other than the Properties and the Services to be provided hereunder, whether or not such other ventures or projects compete with the Properties or the Services to be provided hereunder so long as any such engagement or possession by Manager or its affiliates shall not adversely affect the Properties, the performance of the Services hereunder by Manager or Owner, and neither Manager nor Owner shall have any right to the income or profits derived from such other Party's projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.<u>Jurisdiction, Venue</u>. EACH OF THE PARTIES HEREBY IRREVOCABLY AGREES THAT ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST ANY PARTY ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN DALLAS COUNTY, TEXAS AND EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING. EACH OF THE PARTIES HEREBY IRREVOCABLY CONSENTS AND SUBMITS TO THE JURISDICTION OF SAID COURTS FOR ANY SUCH SUIT, ACTION OR PROCEEDING. EACH OF THE PARTIES HEREBY WAIVES THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING IN SAID COURTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49.<u>WAIVER OF TRIAL BY JURY</u>. OWNER AND MANAGER EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50.<u>Headings</u>. The section headings contained herein are for convenience of reference only and are not intended to define, limit or describe the scope or intent of any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.<u>Subordination; No Recordation</u>. This Agreement shall not constitute an interest in real estate. In all events this Agreement shall be subordinate to any mortgage, ground lease or underlying lease now or hereafter encumbering any of the Properties or the improvements thereon or any portion thereof. In confirmation of such subordination, the parties hereto shall promptly execute and deliver to the holder of such mortgage, ground lease or underlying lease such subordination instruments as the holder may reasonably request at any time and from time to time including a separate property management agreement relating to such Property consisting of the identical terms of this Agreement. Manager shall not record this Agreement, any memorandum thereof or any lien, lis pendens or other instrument encumbering any of the Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52.<u>Survivability</u>. The provisions of <u>Sections</u> <u>36</u>, <u>37</u>, <u>38</u>, <u>39</u>, <u>40</u>, <u>48</u>, <u>49</u>, <u>50</u>, <u>52</u>, <u>53</u>, <u>54</u>, and <u>58</u>, shall survive any termination for any reason or expiration of the Agreement. The provisions of <u>Section 32</u> shall survive any termination for any reason or expiration of the Agreement for the time noted in such section. The provisions of <u>Section 33</u> shall survive any

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termination for any reason or expiration of the Agreement for four (4) years; provided, however, that any Claim for which notice is provided prior to such expiration shall continue to be governed by <u>Section 33</u> the final resolution of such Claim.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53.<u>Counterparts</u>. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall constitute an original, but all of which when taken together shall constitute one contract. Delivery of an executed counterpart of this Agreement by .pdf or other electronic means shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54.<u>Special Provision Governing Owner's Lender(s)</u>. Notwithstanding any provision to the contrary, Owner shall have the right to collaterally assign this Agreement to a lender to secure Owner's obligation to repay a loan from such lender to Owner. Upon written request, Manager shall provide to such lender such reasonable assurances regarding this Agreement and the Properties as the lender shall reasonably request (including the subordination of this Agreement to any such loan and/or the confirmation that upon the occurrence of an event of default under any such loan, at the option of such lender, either (A) Manager will continue to perform its obligations hereunder for the benefit of such lender (subject to the payment of fees hereunder to Manager with respect to Services provided after the date of such notice from lender) or (B) this Agreement will be terminated by such lender without liability to such lender) and shall agree to such modifications to this Agreement as shall be reasonably requested by any such lender or by any rating agency asked to issue a rating with respect to interests relating to or secured by any Property; provided that such modifications do not affect the rights or obligations of Manager under this Agreement in any material adverse respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55.<u>Additional Rights of Manager</u>. Notwithstanding anything in this Agreement to the contrary, Owner shall not, directly or indirectly, make or take any of the following actions or decisions without the express prior written approval of Manager (which consent shall not be unreasonably withheld, conditioned or delayed), in each instance, other than with respect to clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) below, which shall only require prior written notice to Manager:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)incur any indebtedness that would require disclosure of Manager's or its affiliates' direct or indirect beneficial owners (each, a "**Manager Owner**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)enter into any securitization or capital markets transaction that would subject Manager to risk retention requirements or require public disclosure concerning Manager, its affiliates or any Manager Owner, aside from the public disclosure required by applicable law, rule or regulation regarding Manager and that Manager is the Manager of the Properties in the securitization or capital markets transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)enter into any litigation settlement with any regulatory or licensing authority that could reasonably be known by Owner to cause a material adverse effect to Manager and/or regulatory oversight or licensing obligations on Manager, its affiliates or any Manager Owner, that differ from Manager's obligations under this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)engage in any action(s) that would require Manager, its affiliates or any Manager Owner to register with the Securities and Exchange Commission (as a registered investment adviser, broker dealer or otherwise) or any other regulatory body;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)pursue or otherwise commence an initial public offering or other listing of securities on a nationally recognized exchange, merger or combination transaction with

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respect to Owner to the extent such transaction would, to Owner's actual knowledge, impose, on Manager, its affiliates or any Manager Owner, any filing or disclosure obligation with a state or federal regulatory agency; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)commit to do any of the foregoing in clauses "(a)" through "(d)".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56.<u>Springing Guaranty</u>. By the execution of that certain Springing Guaranty attached hereto (the "**Springing Guaranty**"), Springing Guarantor hereby agrees to, during the continuance of a Springing Guaranty Event (as defined herein) and solely to the extent such Guaranteed Obligations (as defined herein) have arisen as a result of Owner's fraud, illegal activity, or willful misconduct as determined in an adjudication by a court of competent jurisdiction, guaranty Owner's obligations hereunder, including, without limitation, Owner's indemnification obligations hereunder and Owner's obligation to pay any fees due and payable to Manager hereunder (the "**Guaranteed Obligations**") up to the Guaranty Cap (as defined herein). In the event Springing Guarantor shall become liable for all or a portion of the Guaranteed Obligations as provided in this Section 56, Manager agrees to look to Owner first for recovery of same. As used herein (i) a "Springing Guaranty Event" shall occur in the event that, as of the last day of any calendar quarter, Owner fails to maintain a tangible net worth (calculated as total real estate investment value held by Owner and its subsidiaries less total outstanding debt by Owner and its subsidiaries) of at least Ten Million Dollars ($10,000,000.00) (the "**Required Net Worth**") and end as of the last day of any calendar quarter in which Owner reestablishes a net worth of at least the Required Net Worth and (ii) the "**Guaranty Cap**" shall mean an amount equal to the difference between Owner's net worth and the Required Net Worth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57.<u>Conditions Precedent</u>. The effectiveness of this Agreement and the obligations of the Parties under this Agreement shall be subject to the satisfaction of the following conditions precedent on or before the Effective Date, except to the extent such conditions are waived by the applicable Party in writing in such Party's sole and absolute discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All representations and warranties of the Parties contained in this Agreement shall be true and correct in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each Party shall have delivered to the other Party any consent, approval, authorization or order of any state or federal court or governmental agency or body or any third party required for the consummation by such Party of the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Owner shall have received consent of all lenders whose loans are secured by the Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Each Party shall have delivered to the other Party an executed counterpart of this Agreement and Owner shall have delivered to Manager an executed counterpart of the Springing Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58.<u>Data Processing Addendum</u>. Manager hereby agrees to comply with all applicable laws and regulations related to consumer protection and the Data Processing Addendum agreed to by the Parties, attached hereto as Exhibit D and incorporated herein by reference.

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[*Remainder of page intentionally left blank*]

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IN WITNESS WHEREOF, the parties have executed this Property Management Agreement as of the Effective Date.

**<u>MANAGER</u>:**

**EVERGREEN RESIDENTIAL**

**MANAGEMENT, LLC**, a Delaware limited liability company

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> Name:

Title:

*[Signatures continue on following page]*

*Signature Page to Property Management Services Agreement*

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**<u>OWNER</u>:**

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> Name:

Title:

*[End of signatures]*

*Signature Page to Property Management Services Agreement*

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**<u>SPRINGING GUARANTY</u>**

During the continuance of a Springing Guaranty Event (as defined in the Property Management Agreement (the "**Agreement**"), dated as of June 10, 2025, by and between **[Owner]**, a Delaware limited liability company, (the "**Owner**") and **EVERGREEN RESIDENTIAL MANAGEMENT, LLC,** a Delaware limited liability company (the "**Manager**")), the undersigned hereby guarantees those certain Guaranteed Obligations subject to and solely in accordance with Section 56 of the Agreement. Prior to pursuing any rights and/or remedies hereunder, Manager first agrees to: (i) institute suit and exhaust its remedies against Owner, (ii) join Owner or any others liable on the Guaranteed Obligations in any action seeking to enforce remedies against Springing Guarantor, and (iii) exhaust any remedies available to Manager against any collateral which shall ever have been given to secure the Guaranteed Obligations. Manager hereby agrees to use its best efforts to mitigate any damages that Manager would be reasonably expected to incur in connection with the Guaranteed Obligations. Notwithstanding the foregoing, Manager shall not make a demand for payment under the Springing Guaranty unless a Springing Guaranty Event (as defined in the Agreement) exists under the Agreement and has continued for a period of ninety (90) days.

As of June 10, 2025

**VINEBROOK&nbsp;&nbsp;&nbsp;&nbsp;HOMES&nbsp;&nbsp;&nbsp;&nbsp;OPERATING**

**PARTNERSHIP,&nbsp;&nbsp;&nbsp;&nbsp;L.P.**,&nbsp;&nbsp;&nbsp;&nbsp;a&nbsp;&nbsp;&nbsp;&nbsp;Delaware&nbsp;&nbsp;&nbsp;&nbsp;limited partnership

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> Name:

Title:

*Springing Guaranty*

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**<u>EXHIBIT A</u> FORM OF**

**LIMITED POWER OF ATTORNEY**

**RESPECTING TRANSACTIONS AND OTHER ACTIONS INVOLVING RESIDENTIAL REAL ESTATE ASSETS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Exhibit A to Property Management Services Agreement*

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**<u>EXHIBIT B</u> <br> MANAGEMENT COMPENSATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Exhibit B to Property Management Services Agreement*

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**<u>EXHIBIT C</u> <u>PROPERTY LIST</u> NONE.**

*Exhibit C to Property Management Services Agreement*

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**<u>EXHIBIT D</u>**

**<u>DATA PROCESSING ADDENDEUM</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Exhibit D to Property Management Services Agreement*

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**EXHIBIT E**

**<u>SFR REPORTING REQUIREMENTS</u> <u>FOR NEXPOINT OWNED PROPERTIES</u>**

(Intentionally Omitted.)

*Exhibit E to Property Management Services Agreement*

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**<u>EXHIBIT F</u>**

**<u>INSURANCE REQUIREMENTS FOR MANUFACTURERS, SERVICE PROVIDERS AND</u> <u>CONTRACTORS</u>**

(Intentionally Omitted.)

*Exhibit F to Property Management Services Agreement*

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**<u>EXHIBIT G</u> <u>MANAGER REPORTING</u>**

(Intentionally Omitted.)

*Exhibit G to Property Management Services Agreement*

## Exhibit 10.2

**EXECUTION VERSION**

**ASSET MANAGEMENT AGREEMENT**

THIS **ASSET MANAGEMENT AGREEMENT** ("**Agreement**") is made and entered into as of June 10, 2025 (the "**Effective Date**"), by and between **[Owner]**, a Delaware limited liability company ("**Owner**"), and **EVERGREEN ASSET MANAGEMENT, LLC**, a Delaware limited liability company ("**Asset Manager**" and, together with Owner, each individually, a "**Party**" and, collectively, the "**Parties**").

**WHEREAS**, Owner is engaged, directly and indirectly through one or more subsidiaries in the business of acquiring, owning, and operating certain single-family residential properties owned by Owner (or its subsidiaries) from time to time, with the intent to lease, hold, and, potentially from time to time, sell such Properties (as defined below), and Asset Manager provides certain asset management and related services with respect to residential real estate properties;

**WHEREAS**, Owner has engaged or will engage Evergreen Residential Management, LLC, a Delaware limited liability company ("**Property Manager**") to perform certain property management services with respect to properties more fully described in that certain property management agreement between Owner and an affiliate of Asset Manager (as may be (in accordance with the terms of such Property Management Agreement) amended, restated, or otherwise modified from time to time, "**Property Management Agreement**"), dated as of the date hereof, by and between Property Manager and Owner;

**WHEREAS**, the terms "Property" and "Properties" shall have the meanings given to the in the Property Management Agreement.

**WHEREAS**, VineBrook Homes Operating Partnership, L.P., a Delaware limited partnership ("**OP**") engaged Evergreen Development Services, LLC, a Delaware limited liability company ("**Service Provider**") to perform certain acquisition-related and project administration services pursuant to that certain Real Estate Development Services Agreement (the "**Development Services Agreement**"), dated as of the date hereof, by and between Service Provider and OP;

**WHEREAS**, VineBrook Homes Trust, Inc., the indirect parent of Owner, does not intend for Asset Manager to have any duties or responsibilities that NexPoint Real Estate Advisors V, L.P., a Delaware limited partnership, is responsible for pursuant to the advisory agreement by and between VineBrook Homes Trust, Inc. and NexPoint Real Estate Advisors V, L.P., a Delaware limited partnership; and

**WHEREAS**, Owner wishes to retain and engage Asset Manager to provide the Services (as hereinafter defined) to Owner pursuant to the terms and subject to the conditions contained herein.

**NOW, THEREFORE**, in consideration of the mutual covenants herein set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Agreement; Term; Representations and Warranties</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Owner hereby retains and engages Asset Manager to perform, and Asset Manager agrees to perform, on the terms set forth herein, certain asset management services, regarding the business of Owner, as further described herein and on <u>Exhibit A</u> hereto and such other services relating to Owner and/or the Properties as may from time to time be reasonably requested by Owner and agreed upon by Asset Manager in writing (the "**Services**"). Asset Manager shall provide the Services on behalf and for the benefit of Owner (i) in accordance with applicable laws and the express terms of this Agreement, (ii) in the same manner in which, and with the same care, skill, prudence and diligence with which the Asset Manager, or its affiliates, provide similar services with respect to similar assets for other third parties; <u>provided</u>, however, that such care, skill, prudence and diligence shall be at least as favorable as the degree of care, skill, prudence and diligence generally applied by prudent asset managers of residential real estate, exercising reasonable business judgment, and (iii) in adherence to the Approved Annual Budget (as defined in <u>Exhibit A</u>), subject to Permitted Variances (as defined below). The standards described in this <u>Section 1(a)</u> are herein collectively referred to as the "**Accepted Management Practices**". The parties acknowledge and agree that any property that becomes a "Property" under the Property Management Agreement, including, without limitation, any Non-EG Sourced Property or Legacy Property (as such terms are defined under the applicable Property Management Agreement), shall automatically become subject to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For the avoidance of doubt, Asset Manager may, in its sole discretion, elect to engage one or more third-party vendors (each, an "**Asset Manager Vendor**") to perform the Services for the categories expressly set forth on <u>Exhibit B</u> attached hereto, which categories may be expanded from time to time by Asset Manager subject to Owner's written approval in Owner's sole discretion. Owner shall, subject to limitations in the Approved Annual Budget (subject to Permitted Variances), be responsible for all fees, compensation, and other costs or expenses incurred in connection with services provided by Asset Manager Vendors that (i) are, within the institutionally owned single-family rental industry, reasonably and customarily provided by third- parties other than an asset manager, and (ii) do not exceed market rates for Asset Manager Vendors of such type, and Asset Manager shall be responsible for all other fees, compensation and other expenses of Asset Manager Vendors. No such delegation shall relieve Asset Manager of any of its obligations or liabilities hereunder and Asset Manager shall oversee any such third-party vendors to ensure that such delegated Services are provided in accordance with all Accepted Management Practices. Additionally, if Asset Manager holds any licenses or is otherwise required to provide the Services under the name of an affiliate, Asset Manager is authorized to cause each such Asset Manager affiliate to fulfill the obligations of Asset Manager under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The term of this Agreement (the "**Term**") shall commence on the Effective Date and shall continue unless and until terminated by the applicable Party pursuant to subsection

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)This Agreement may be terminated upon prior written notice by the applicable Party only for the following reasons upon the time periods set forth below:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)immediately by either Party upon the liquidation, winding- up or termination of the existence of Owner, provided, however, in the event such liquidation, winding-up or termination is the result of a transfer of the assets of Owner to a NexPoint Controlled Transferee, and such NexPoint Controlled

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Transferee assumes this Agreement, then, Asset Manager shall not be permitted to terminate this Agreement pursuant to this <u>Section 2(c)(i)(A)</u>. For purposes of this Agreement, (i) "**NexPoint Controlled Transferee**" means either or both of (a) an affiliate of Owner, and (b) a Delaware Statutory Trust Controlled by NexPoint Real Estate Advisors IV, L.P., a Delaware limited partnership, or its affiliates, (ii) "**Control"** means, when used with respect to any specified Person, the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interest, by contract, or otherwise; and the terms "control", "controlling" and "controlled" have the meanings correlative to the foregoing; (iii) "**Person**" means any individual or Entity, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person where the context so permits; and (iv) "**Entity**" means any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust, Delaware Statutory Trust, cooperative or association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)immediately by either Party upon (i) (x) Asset Manager or its subsidiaries (each, a "**Asset Manager Relevant Person**") or (y) Owner, Vinebrook Home Trust, Inc. or their respective subsidiaries (each, an "**Owner Relevant Person**"; and together with each Asset Manager Relevant Person, each, a "**Relevant Person**"), filing a petition for relief under the Bankruptcy Code (as defined below), or under any other present or future state or federal law regarding bankruptcy, reorganization or other debtor relief law; (ii) the filing of any pleading or an answer by a Relevant Person in any involuntary proceeding under the Bankruptcy Code or other debtor relief law which admits the jurisdiction of the court or the petition's material allegations regarding such Relevant Person's insolvency; (iii) a general assignment by a Relevant Person for the benefit of creditors; (iv) a Relevant Person applying for, or the appointment of, a receiver, trustee, custodian or liquidator of a Relevant Person or any of its property or (v) the failure of a Relevant Person to effect a full dismissal of any involuntary petition under the Bankruptcy Code or under any other debtor relief law that is filed against a Relevant Person, prior to the earlier of (x) the entry of any court order granting relief sought in such involuntary petition, or (y) one hundred twenty (120) days after the date of filing of such involuntary petition. As used herein "**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, state, local or foreign bankruptcy or insolvency law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)by the non-defaulting Party for a default by the other Party of any material non-monetary term, representation, covenant, or provision hereof, where such default continues uncured for a period of thirty (30) days after receipt of written notice of such default from the non-defaulting Party; provided, however, that such thirty (30) day period shall be extended for up to an additional

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sixty (60) days to the extent the underlying default is not reasonably susceptible of cure within

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such thirty (30) day period and so long as the defaulting party has commenced and is diligently pursuing a cure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)by the non-defaulting Party for a default by the other Party of any monetary term, covenant or provision hereof where such default continues uncured for a period of thirty (30) days after receipt of written notice of such default from the non-defaulting Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)Intentionally Omitted; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)in connection with the termination of the Property Management Agreement with Owner in accordance with the terms thereof or the terms of that certain letter agreement between Property Manager, OP and Evergreen Development Services, a Delaware limited liability company, dated as of the Effective Date (the "**Letter Agreement**"), either Party may simultaneously terminate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Notwithstanding the termination or expiration of this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the obligations of Owner to pay amounts due to Asset Manager in respect of all fees, costs, and expenses accruing under this Agreement with respect to periods prior to the effective time of the termination or expiration hereof and (y) the provisions of <u>Sections 7</u> and <u>8</u>, shall, in each case, survive any termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Asset Manager shall not be required to advance any funds or obligate itself in any manner to third parties for or on behalf of Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Owner hereby represents and warrants to Asset Manager, as of the Effective Date, and with respect to any Non-EG Sourced Property or Legacy Property added after the Effective Date, then solely with respect to such Non-EG Sourced Property or Legacy Property, as of the date on which such Non-EG Sourced Property or Legacy Property is included as a "Property" hereunder, as follows to the best of its knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Owner (A) has the requisite authority to enter into this Agreement, and this Agreement constitutes its legal, valid, binding, and enforceable agreement, (B) is duly organized, validly existing, and in good standing in the jurisdiction in which it is organized, and (C) is duly qualified to do business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its businesses and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Owner, or a subsidiary of Owner, is the sole and exclusive owner of the Properties and has the authority to engage Asset Manager to perform the Services with respect to the Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Execution and performance by Owner of this Agreement (A) do not breach any agreement of Owner with any third party or any duty arising in law or equity,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) do not violate any applicable federal, state, or local laws, rules, ordinances or regulations, (C) are within its governing powers, and (D) have been authorized by all necessary corporate or limited liability company action of Owner.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)No consent, approval, authorization, or order of any state or federal court or governmental agency or body is required for the consummation by Owner of the transactions contemplated herein except for those consents, approvals, authorizations, or orders that previously have been obtained and except where the failure to obtain those consents, approvals, authorizations, or orders is unlikely to affect materially and adversely either the ability of Owner to perform its obligations under this Agreement or the financial condition of Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Except as previously disclosed to Asset Manager in writing or as set forth on <u>Schedule I</u> attached hereto, there is no pending or threatened, material litigation or arbitration (or other alternative dispute resolution) proceeding or material labor disputes regarding the Owner or the Properties; and Owner will, to the extent legally permissible, promptly inform Asset Manager of any investigations or proceedings by any foreign, federal, state agencies or material investigations or proceedings by any municipal governmental agencies regarding the Owner or the Properties that occur during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)There are no material breaches or violations of any environmental laws and/or hazardous materials that have been identified at any Property, and Owner agrees to promptly inform Asset Manager in writing of any such events that occur during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)The Properties, including, without limitation, the maintenance thereof, are (subject to any cure periods) in material compliance with all Compliance Obligations, and Owner has not received any written notices of material non-compliance in connection with the foregoing, and Owner agrees to promptly inform Asset Manager in writing of any written notice of material violation of any applicable Compliance Obligation (as defined below), regarding a Property that occurs during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)There are no outstanding unpaid taxes, including real estate taxes, on the Properties which exceed $25,000 on any individual Property, or $1,000,000 on the Properties in aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)The insurance required herein to be maintained by Owner is in full force and effect and all pending insurance claims with respect to the Properties which exceed $100,000 on any individual Property, or $1,000,000 on the Properties in the aggregate, have been fully disclosed to Asset Manager in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)Other than as previously disclosed in writing, any rent disputes or other tenant disputes or claims against Owner in connection with the Properties which have a monetary claim reasonably estimated to exceed $100,000 on any individual property, or

$1,000,000 on the Properties in the aggregate, upon full adjudication of the claim have been fully disclosed to Asset Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Asset Manager hereby represents and warrants to Owner as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Asset Manager (A) has the requisite authority to enter into this Agreement, and this Agreement constitutes its legal, valid, binding, and enforceable

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agreement, (B) is duly organized, validly existing, and in good standing in the jurisdiction in which it is organized, and (C) is duly qualified to do business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its businesses and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Execution and performance by Asset Manager of this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) do not breach any agreement of Asset Manager with any third party or any duty arising in law or equity, (B) do not violate any applicable federal, state, or local laws, rules, ordinances or regulations, (C) are within its governing powers, and (D) have been authorized by all necessary corporate or limited liability company action of Asset Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)No consent, approval, authorization, or order of any state or federal court or governmental agency or body is required for the consummation by Asset Manager of the transactions contemplated herein except for those consents, approvals, authorizations, or orders that previously have been obtained and except where the failure to obtain those consents, approvals, authorizations, or orders is unlikely to affect materially and adversely either the ability of Asset Manager to perform its obligations under this Agreement or the financial condition of Asset Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)There are no legal actions pending or, to Asset Manager's knowledge, threatened against it that would reasonably be expected to interfere with Asset Manager's performance under this Agreement, and Asset Manager agrees to promptly inform Owner of any such legal action that occurs during the Term. Except as previously disclosed to Owner in writing, there is no pending or threatened, material litigation or arbitration (or other alternative dispute resolution) proceeding or material labor disputes regarding the Asset Manager or its affiliates; and Asset Manager will, to the extent legally permissible, promptly inform Owner of any investigations or proceedings by any foreign, federal, state agencies or material investigations or proceedings by any municipal governmental agencies regarding the Asset Manager or its affiliates that occur during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Asset Manager has obtained all necessary licenses and permits and regulatory requirements to provide the Services subject to this Agreement as of the Effective Date and will maintain the same in full force and effect during the Term, except, in each case, to the extent that failure to do so would not reasonably be expected to prevent Asset Manager from providing the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)At its own expense, Asset Manager shall maintain each and all of the following types and amounts of insurance coverage and such other insurance as Asset Manager considers appropriate in connection with its business or as otherwise required or directed by Owner. Owner shall be named as an additional insured under Asset Manager's automobile, commercial general liability, umbrella, and cyber policies. Further, each policy shall contain an endorsement requiring the insurer to provide Owner with thirty (30) days written notice prior to cancellation of the policy. Insurance coverage shall be as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Comprehensive crime insurance including employee dishonesty covering Asset Manager and all employees of Asset Manager handling Owner's funds or other documents, with a per claim limit of not less than One Million Dollars ($1,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Errors and omissions insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence and in aggregate and naming Owner as an additional insured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Worker's compensation insurance in compliance with all applicable laws covering all employees of Asset Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Commercial automobile liability coverage of Two Million Dollars ($2,000,000) per accident, combined single limit bodily injury and property damage (which coverage shall include, without limitation, liability assumed under any contract).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Commercial general liability in the amount of not less than One Million Dollars ($1,000,000) combined single limit per occurrence and Two Million Dollars ($2,000,000) in the aggregate, applying to bodily injury and property damage, with Broad Form Liability Endorsement on an occurrence basis and including coverage for the hazards of operation, independent contractors, products and completed operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Comprehensive cyber insurance, with a per-claim and aggregate limit of not less than Two Million Dollars ($2,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Directors' and officers' liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence and in aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Umbrella Liability insurance with a combined single limit of not less than Ten Million Dollars ($10,000,000), per occurrence, for bodily injury and property damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)Employment Practices Liability insurance covering claims arising from actual or alleged wrongful termination, discrimination, harassment (including sexual harassment), retaliation, and other wrongful employment acts, with minimum limits of Two Million Dollars ($2,000,000) per claim and in the aggregate, including coverage for third-party liability claims. Such insurance shall include coverage for claims brought by current, former, and prospective employees, as well as tenants and other third parties interacting with employees. Coverage shall be maintained on a claims-made basis with a retroactive date no later than the inception of Asset Manager's services under this Agreement, and Asset Manager shall maintain extended reporting period coverage (tail coverage) for at least three (3) years following termination of services under this Agreement. The policy shall not contain exclusions materially inconsistent with the scope of employment-related risks assumed by Asset Manager in performing its services.

All insurance policies required above shall be written with solvent insurance companies and Asset Manager shall furnish, or cause to be furnished, original certified copies of

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certificates or (at Owner's option) policies of insurance to Owner, prior to or upon the Effective Date, evidencing the insurance coverage described above. All policies that Asset

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Manager is required to carry must be endorsed to provide a waiver of subrogation in favor of Owner and its partners, members, officers, directors, agents, employees, lenders, successors, and assigns (including any deductibles). Asset Manager shall notify Owner and Owner's insurance carrier promptly upon becoming aware of any casualty, loss, injury, claim or other event which may result in a claim under any policy maintained by Asset Manager if related to the Services under this Agreement. Upon Owner's request, Asset Manager shall furnish such evidence of all renewals to Owner within thirty (30) days following such renewal. Asset Manager will reasonably cooperate with Owner and Owner's insurance carrier on loss control inspections, responding to recommendations and other safety issues with respect to Owner's insurance.

Notwithstanding anything to the contrary contained herein, Asset Manager shall have thirty

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) days following the Effective Date to obtain the insurance described in <u>Sections</u> <u>1(g)(viii)</u> and <u>(iv)</u> above, <u>provided</u>, <u>however</u>, in the event that such insurance is not obtained in such time period, and provided that Asset Manager has commenced and is diligently pursuing such insurance, such thirty (30) day period shall be extended for an additional thirty (30) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Asset Manager shall reasonably cooperate at Owner's sole cost and expense in connection with any financing or refinancing of the Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Obligations of Owner</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Owner shall, at no additional expense to Owner beyond fees explicitly owed under this Agreement and without requirement to perform any of the Services or Asset Manager's (or its affiliates) obligations, reasonably cooperate with Asset Manager in the performance of Asset Manager's obligations under this Agreement and shall, if legally permissible, make available to Asset Manager all books, records and other information which are in Owner's possession and customarily required in order to perform the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Owner shall not knowingly take any action that would prohibit the performance of Asset Manager's obligations hereunder. In the event Asset Manager provides written notice to Owner regarding any action necessary to be taken by Owner in order for Asset Manager to perform any of the Services or Asset Manager's (or its affiliates) obligations hereunder, and Owner shall fail to take such action within ten (10) Business Days following receipt of such notice, then, for so long as Owner fails to take such action (including during the ten (10) Business Day notice period), Asset Manager shall not be liable for any failure to perform any such Services or obligations so precluded, and any such failure shall not constitute an "event of default" hereunder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Disposition Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)During the term of this Agreement, Owner intends to utilize Asset Manager's Disposition Services (defined below) for the disposition of Properties identified by Owner (each a, "**Disposition Property**"), provided, however, that such use is not guaranteed and

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no Property set forth on <u>Schedule II</u> attached hereto, which is a schedule of properties being marketed for sale (or under contract for sale) prior to the Effective Date, shall be deemed to be a

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Disposition Property. If Owner subsequently elects not to utilize Asset Manager's Disposition Services, Owner will, the first time it makes such an election, provide written notice to Asset Manager of same (the "**Election Notice**") and following delivery of such Election Notice, Owner agrees to make itself available to discuss such Election Notice with Asset Manager prior to Owner engaging a new party to provide any similar disposition services for Properties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Upon the written request by Owner, Asset Manager shall provide (or cause to be provided in accordance with Section 1(b) of this Agreement) the following services ("**Disposition Services**") related to the disposition of a Disposition Property:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Assist Owner in development and implementing a strategy for Disposition Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Coordinating with applicable real estate brokers for listing of Disposition Properties on the Multiple Listing Service(s) or other marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Obtaining Broker Price Opinions for the Disposition Properties and coordinating with Owner in setting sale price targets for each Disposition Property (provided, however, that Owner shall be responsible for the cost of the Broker Price Opinions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Coordinating and assisting with pricing discussions subject to direction and final, written approval from Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Supervising, on behalf of Owner, the preparation of contracts, on such terms as are specified by Owner or those people listed on <u>Exhibit D</u> attached hereto, for the sale for each Disposition Property and all other documents related thereto or required to effectuate such sale, and signing such documents as are approved in writing by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Solely to the extent requested by Owner in writing (and provided, that any such costs and expenses related thereto and approved in writing by Owner are borne by the Owner), take appropriate action to preserve and/or renovate any of the Disposition Properties as deemed necessary or highly advisable in Asset Manager's best judgment, and approved by Owner, which shall include, but are not limited to, actions to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) repair and maintain the Disposition Property and any of its fixtures, built-in appliances, and equipment; (ii) provide landscaping of the Disposition Property; (iii) clean and remove trash from the interior and exterior of the Disposition Property; (iv) ensure that all utilities are available and/or functional at the Disposition Property; and (v) hire or retain the services of contractors, subcontractors, and vendors to take any of the foregoing actions ("**Property Preservation Services**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Coordinating with all necessary parties for the closing and funding of disposition transactions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Assisting in developing or gathering Owner's due diligence materials, including the creation and maintenance of virtual data rooms with the customary

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documents needed by potential buyers of any Disposition Property as part of their diligence of the potential acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)Maintaining records of all documents entered to effectuate the disposition of any Property and providing such records to Owner within thirty (30) days of the closing of the disposition, to the extent such records are available with such time period, or within five (5) days of receipt of any documents not received within such thirty (30) day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)Unless otherwise approved by Owner in writing, Owner's preferred title company shall be Republic Title.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)Providing any other related service requested by Owner and agreed to by Asset Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Owner shall pay the Asset Manager (or an entity designated by Asset Manager) 1.0% of the gross sales price for each Disposition Property in which the Asset Manager provided (or caused to be provided in accordance with Section 1(b) of this Agreement) all necessary (as determined by Owner in its sole discretion) Disposition Services (the "**Disposition Fee**") and such Disposition Fee shall be due and payable upon the closing of the sale of each Disposition Property. Notwithstanding the foregoing, Asset Manager shall not be entitled to a Disposition Fee with regard to the sale of any Property to a NexPoint Controlled Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Owner shall, on or within a reasonable time after the Effective Date and from time to time upon reasonable request from Asset Manager, deliver to Asset Manager one or more original executed Limited Powers of Attorney substantially in the form attached hereto as <u>Exhibit C</u> (each, a "**Power of Attorney**"), authorizing Asset Manager to sign documentation as the attorney-in-fact of Owner in order for Asset Manager to perform the Disposition Services in accordance with the terms and conditions of this Agreement. The Parties agree to cooperate in good faith to update the Power of Attorney as reasonably requested by either Party, but neither Party shall be in breach of this Agreement for failure to make any such updates. Asset Manager hereby acknowledges and agrees that Asset Manager will, in accordance with the Accepted Management Practices (a) designate those persons who will be authorized by Asset Manager from time to time to execute documents on behalf of Owner pursuant to this Power of Attorney (the "**Authorized Signatories**"); (b) promptly provide a list of such Authorized Signatories to Owner upon execution of this Agreement and upon each revision to such list; (c) monitor and supervise its employees and third party agents, including all Authorized Signatories in the conduct of those functions and activities authorized by this Power of Attorney to ensure compliance with the Agreement, Accepted Management Practices, and the Power of Attorney; and (d) take commercially reasonable actions, steps and precautions to ensure that Asset Manager, either directly or indirectly through an employee of Asset Manager or third party agent, does not act in any manner that exceeds the authorization granted under the Power of Attorney, or in any way circumvents or otherwise modifies the rights, duties, obligations, or restrictions placed on the Asset Manager under this Agreement. Asset Manager may request in writing that

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Owner execute certificates, resolutions or other similar documents from time to time as needed to evidence Asset Manager's right to perform the Services and if Owner fails to provide any such documents so requested by Asset Manager within ten (10) Business Days of such request, and such failure

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precludes Asset Manager's ability to perform any of the Services or Asset Manager's (or its affiliates) obligations hereunder, then, for so long as Owner fails to execute the relevant certificates, resolutions or other similar documents (including during the ten (10) Business Day notice period), Asset Manager shall not be liable for any failure to perform any such Services or obligations so precluded, and any such failure shall not constitute an "event of default" hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>No Exclusivity</u>. Neither this Agreement, nor the provision of Services by Asset Manager pursuant to the terms hereof, shall in any way limit the ability of Asset Manager to enter into similar agreements or provide similar services to or with other persons to the extent Asset Manager is able to provide the Services to Owner in accordance with all Accepted Management Practices, does not use Confidential Information obtained in the provision of the Services to benefit third parties for whom Asset Manager provides other services in violation of <u>Section 8(i)</u> of this Agreement, and Asset Manager's conduct shall not materially adversely affect the Properties or the performance of the Services hereunder by Asset Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Reimbursement; Compensation.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Owner shall pay for or, if applicable, reimburse Asset Manager for, all reasonable, documented out-of-pocket expenses incurred by Asset Manager in the performance of the Services, to the extent that such expenses relate to the categories listed on <u>Exhibit B</u> attached hereto (or otherwise agreed to by Owner in writing (email from an individual on <u>Exhibit D</u> attached hereto being sufficient)) and in each case, incurred in accordance with the applicable provisions of this Agreement and the Approved Annual Budget (subject to Permitted Variances). "**Permitted Variance**" means, with respect to the matters contained in any Approved Annual Budget that is then in effect, (a) any expenditure in respect of real estate or other taxes, assessments, water, sewer, electric power, or other rents, rates and charges assessed or imposed by any Regulatory Authority (as defined below) that are due and owning and not subject to an ongoing dispute or claim for reduction, and (b) any other expenditure that does not cause the aggregate amount of expenditures in (i) any particular line item in such Approved Annual Budget to be exceeded by more than five percent (5%), or (ii) the line item reflecting the total aggregate costs contained in such Approved Annual Budget to be exceeded by more than ten percent (10%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In consideration of the performance of the Services, Asset Manager shall be entitled to receive, and Owner shall pay to Asset Manager an annual fee in an amount equal to 0.24% of the Net Asset Value (as hereafter defined) of the Properties, to be paid monthly in arrears (the "**Asset Management Fee**"). "**Net Asset Value**" shall mean: the prorated share of the net asset value disclosed in the most recent filing by VineBrook Homes Trust, Inc. with the Securities and Exchange Commission, such proration to be based on the value of the Properties relative to all properties owned by VineBrook Homes Trust, Inc. or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Nature of Relationship between Parties</u>. The relationship between the Parties shall be that of independent contractors. Nothing contained in this Agreement shall be deemed to make Asset Manager an employee, partner, co-venturer or other participant in the business or

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operations of Owner, or in any manner to render Asset Manager liable, as principal, surety, guarantor, agent or otherwise, for any of the debts, obligations or liabilities of Owner, whether incurred directly by Owner or by Asset Manager on behalf of Owner in accordance with this Agreement; it being

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understood that such debts, obligations and liabilities are and shall be and remain solely those of Owner except as required under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Limitation of Liability; Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Asset Manager shall indemnify, defend, protect and hold harmless Owner and its affiliates, and their respective members, managers, officers, directors, partners, attorneys, agents, principals, consultants, and employees (each, an "**Owner Indemnitee**"), from and against any and all losses, claims, actions, causes of action, liabilities, damages, deficiencies, and reasonable and documented out-of-pocket costs and expenses, including (but not limited to) interest, penalties and reasonable and documented out-of-pocket attorneys' fees (the foregoing being "**Claims**"), arising out of, or to the extent attributable to, any or all of (i) the gross negligence, fraud, bad faith, illegal activity, or willful misconduct of Asset Manager (ii) any failure of Asset Manager to materially perform any of its obligations as and when required under this Agreement, but only following the expiration of any applicable notice and cure periods, or (iii) a knowing and intentional breach of any representation made by Asset Manager in this Agreement. Asset Manager shall not however, owe any indemnity under this Agreement to the extent the matter for which indemnification is sought is (x) caused by, relates to, or arises from, any Owner Indemnitee's gross negligence, fraud, bad faith, illegal activity, willful misconduct or material breach of this Agreement or (y) one for which Owner owes Asset Manager indemnification, and <u>provided</u>, <u>further</u>, that Asset Manager's indemnification obligations hereunder (other than to the extent arising under clause (i) or clause (iii) of this Section <u>7(a)</u>) shall not exceed the greater of the insurance proceeds available from policies carried by Asset Manager or the amount of all compensation received by Asset Manager under this Agreement. The indemnification contained in this <u>Section 7(a)</u> shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Owner shall defend, indemnify, protect and hold harmless Asset Manager, Asset Manager's affiliates and owners, and their respective members, managers, officers, directors, partners, attorneys, agents, principals, contractors, subcontractors and employees, and each of them, (each, an "**Asset Manager Indemnitee**") from and against any and all Claims, arising out of, or to the extent attributable to, any or all of (i) any act or omission in connection with the performance by Asset Manager of its duties in accordance with this Agreement, (ii) the failure of Owner to materially perform its obligations hereunder as and when required under this Agreement, but only following the expiration of any applicable notice and cure periods, (iii) conduct at or management of the Properties prior to the Effective Date, (iv) conduct of Owner prior to the Effective Date, or (v) the material breach of any representation made by Owner in this Agreement. Owner shall not, however, owe any indemnity under this Agreement to the extent the matter for which indemnification is sought is (x) caused by, relates to, or arises from, any Asset Manager Indemnitee's gross negligence, fraud, bad faith, illegal activity, willful misconduct or material breach of this Agreement or (y) one for which Asset Manager owes Owner indemnification. The indemnification contained in this <u>Section 7(b)</u> shall survive any termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Within 15 days after receipt by a party seeking indemnification ("**Indemnified Party**") of written notice of the commencement of any proceeding against it regarding a Claim for which the Indemnified Party seeks indemnification, as applicable, such Indemnified Party will give written notice (in reasonable detail and indicating the estimated

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amount of such Claims, in each case to the extent reasonably practicable) to the party from whom indemnification is sought (such party, the "**Indemnifying Party**") of the commencement of such proceeding. The failure to notify the Indemnifying Party within such 15-day period will not relieve the Indemnifying Party of any liability that it may have to the Indemnified Party, except to the extent that the Indemnifying Party demonstrates that the Indemnifying Party is prejudiced by the Indemnified Party's failure to give such notice. If any such proceeding is brought against an Indemnified Party and such Indemnified Party gives notice thereof to the Indemnifying Party, the Indemnifying Party will be entitled to participate in such proceeding (at its sole cost and expense) or, subject to the limitations set forth herein, to assume the defense of such proceeding (at its sole cost and expense) with counsel reasonably satisfactory to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume the defense of a proceeding, the Indemnifying Party will not, as long as it diligently conducts such defense, be liable to the Indemnified Party under this <u>Section 7</u> for any fees of other counsel or any other expenses with respect to the defense of such proceeding, in each case subsequently incurred by the Indemnified Party in connection with the defense of such proceeding; <u>provided</u>, that the Indemnified Party shall have the right to participate in the defense of any claim or proceeding with counsel selected by it, subject to the Indemnifying Party's right to control the defense thereof; <u>provided</u>, <u>further</u>, that the Indemnified Party shall have the right to participate in the defense of any claim or proceeding with separate counsel paid for by the Indemnifying Party if the Indemnified Party, on advice of counsel, notifies the Indemnifying Party that there is a conflict of interest between the Indemnified Party and the Indemnifying Party or the Indemnified Party has defenses available to it that are not available to the Indemnifying Party. If the Indemnifying Party assumes the defense of a proceeding, the Indemnified Party will reasonably cooperate in the defense or prosecution thereof. The Indemnifying Party's right to conduct the defense of a proceeding will be conditioned upon the Indemnifying Party's continued diligent, good-faith defense of such proceeding. If the Indemnifying Party ceases to diligently defend in good faith such proceeding after 10 days' written notice thereof by the Indemnified Party, the Indemnified Party may thereafter defend, compromise and settle such third-party proceeding. Unless the settlement, compromise or consent provides for a full release of the Indemnified Party with regard to the Claims on which the Indemnified Party sought indemnification, no Indemnifying Party will settle, compromise or consent to the entry of a judgment of any claim or proceeding subject to this <u>Section 7</u> without the prior written consent of the Indemnified Party, which consent may be granted or withheld in the Indemnified Party's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)OTHER THAN AS THE RESULT OF ASSET MANAGER'S OR OWNER'S BAD FAITH, GROSS NEGLIGENCE, FRAUD, ILLEGAL CONDUCT, OR WILLFUL MISCONDUCT, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL LOSSES OR DAMAGES OF ANY KIND WHATSOEVER (INCLUDING BUT NOT LIMITED TO LOST PROFITS), ARISING OUT OF THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE LIKELIHOOD OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE FORM OF ACTION, EXCEPT TO THE EXTENT OWED TO THIRD PARTIES. FURTHER, NO DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE,

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BENEFICIARY, MANAGER OR AGENT IN OR OF EITHER PARTY (AND NO OFFICER, DIRECTOR, EMPLOYEE, AGENT, MANAGER OR TRUSTEE OF ANY OF THE FOREGOING) WILL BE PERSONALLY LIABLE FOR THE PERFORMANCE OF SUCH

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PARTY'S OBLIGATIONS UNDER THIS AGREEMENT. THE LIABILITY OF OWNER FOR OWNER'S OBLIGATIONS UNDER THIS AGREEMENT WILL BE LIMITED TO OWNER'S INTEREST IN THE PROPERTIES AND ASSET MANAGER AGREES TO LOOK SOLELY TO OWNER'S INTEREST IN SUCH PROPERTIES AND NOT TO OWNER GENERALLY OR ANY DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE, BENEFICIARY, MANAGER OR AGENT IN OR OF OWNER TO ENFORCE ASSET MANAGER'S RIGHTS ARISING UNDER THIS AGREEMENT. OWNER AGREES TO LOOK SOLELY TO ASSET MANAGER AND NOT TO ANY DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE, BENEFICIARY, MANAGER OR AGENT IN OR OF ASSET MANAGER TO ENFORCE ITS RIGHTS HEREUNDER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Notwithstanding anything herein to the contrary (but provided in each case that neither Asset Manager, nor anyone one acting at its direction or on its behalf, nor any of their directors, agents (including any third-party to whom Asset Manager has delegated the performance of any of its duties or obligations under this Agreement), employees, or officers (collectively with Asset Manager, the "**Asset Manager Parties**"), has directed a party to undertake the conduct at issue, or acted in an illegal manner or with fraud, bad faith, gross negligence or willful misconduct in connection therewith nor materially breached this Agreement beyond any applicable notice and/or cure periods), Asset Manager assumes no liability and shall not be liable for: (a) any acts or omissions of (i) Owner or any previous or subsequent owners of each Property unless Asset Manager, or any Asset Manager Party, was a previous or subsequent owner of the applicable Property when such act or omission occurred, (ii) any previous or subsequent asset managers or other agents of Owner or any previous owner of each Property, other than any Asset Manager Party, (iii) any third parties who were engaged by or on behalf of Owner or any previous owner of each Property, or subsequent or previous asset manager, including, without limitation, any service providers, contractors, subcontractors, vendors or other providers, other than any Asset Manager Party or (iii) any other third party not engaged by any Asset Manager Party; (b) any failure of or default by any tenant (other than an Asset Manager Party) in the payment of any rent or other charges due Owner, or for any such tenant's failure to perform any of its obligations under its lease or with respect to such tenant's or its invitees' conduct at the Property, or in the performance of any obligations owed by any tenant (other than an Asset Manager Party) to Owner pursuant to any rental agreement or otherwise; (c) any liability for violations of environmental laws; (d) the financial performance of each Property; (e) compliance by each Property, any building thereon or any equipment therein with the requirements of any applicable laws (including the Americans with Disabilities Act or similar state or local law) (collectively, "**Compliance Obligations**"); (f) any fees or costs associated with the remediation, maintenance, repair or replacement of a Property to address any inspection items noted on a inspections requested by the state, county, city or municipality including, but are not limited to, code compliance inspections, subsidized housing inspections and rental license inspections (collectively, "**City Requested Inspections**") or otherwise required by a city or municipality in which a Property sits; and/or (g) any fines, fees or costs assessed by any City Requested Inspection of a Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Miscellaneous</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Governing Law, Forum, No Jury Trial</u>. This Agreement shall be governed, construed and interpreted in accordance with the laws of the State of Texas.

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EACH OF THE PARTIES HEREBY IRREVOCABLY AGREES THAT ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST ANY PARTY ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN DALLAS COUNTY, TEXAS AND EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING. EACH OF THE PARTIES HEREBY IRREVOCABLY CONSENTS AND SUBMITS TO THE JURISDICTION OF SAID COURTS FOR ANY SUCH SUIT, ACTION OR PROCEEDING. EACH OF THE PARTIES HEREBY WAIVES THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING IN SAID COURTS.

**EACH OF THE PARTIES KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Amendment and Waiver</u>. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only by the written consent of the Parties. Any amendment or waiver effected in accordance this section shall be binding upon the Parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Entire Agreement</u>. This Agreement, the Property Management Agreement, the Development Services Agreement, and the Letter Agreement, together with the exhibits attached hereto and thereto, constitute the entire agreement between the parties and supersedes any prior agreements, promises, negotiations between Asset Manager and Owner relating to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Notices</u>. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and may be sent by United States mail, postage prepaid, electronic mail, or overnight courier or messenger, to the respective parties at the addresses shown below or at such other addresses as the parties hereto may, from time to time, hereafter designate in writing:

If to Owner: c/o NexPoint Real Estate Advisors V, L.P. 300 Crescent Court, Suite 700Dallas, Texas 75201Attention: Legal Department, VineBrook Email: legal@nexpoint.com

If to Asset Manager:&nbsp;&nbsp;&nbsp;&nbsp;c/o Evergreen Residential Holdings, LLC

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1999 Bryan Street, 13<sup>th</sup> Floor Dallas, Texas 75201 Attention: Legal Department

Email: legal@evergreenresi.com

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With a copy to:&nbsp;&nbsp;&nbsp;&nbsp;Willkie Farr & Gallagher LLP

787 Seventh Avenue New York, New York Attention: Kris Agarwal

Email: kagarwal@willkie.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Severability</u>. If any provision or term of this Agreement shall be determined by any court of competent jurisdiction to be invalid or unenforceable for any reason whatsoever, the remainder of this Agreement shall not be affected thereby, and each provision hereof shall be valid and shall be enforced to the fullest extent of law unless the consideration for the Agreement is negated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Counterparts</u>. This Agreement may be executed by the Parties hereto in separate counterparts, each of which, when so executed and delivered, shall constitute an original, but all of which, when taken together, shall constitute one contract. Delivery of an executed counterpart of this Agreement by .pdf or other electronic delivery shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Successors and Assigns</u>. This Agreement may not be assigned by either Party without the prior written consent of the other Party hereto; provided, that Asset Manager may assign this Agreement to an affiliate of Asset Manager without the consent of Owner, but upon thirty (30) days' prior written notice to Owner, and Owner may without the consent of Asset Manager, but upon thirty (30) days' prior written notice to Asset Manager, assign this Agreement to a NexPoint Controlled Transferee, so long as such affiliate is the owner of the Properties at the time of, or in conjunction with, such assignment. The provisions hereof shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties hereto and the predecessors shall not be relieved of their liability for any of their obligations under this Agreement arising prior to the assignment of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Titles and Subtitles</u>. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)In performing their obligations pursuant to this Agreement, either Party may disclose to the other Party, either directly or indirectly, in writing, orally or by inspection of intangible objects (including, without limitation, documents), certain non- public confidential or proprietary information, including, without limitation, the names and addresses of tenants, the Properties, a Party's customers, marketing plans and objectives, research and test results, operating budgets and other information that is confidential and the property of the Party disclosing the information ("**Confidential Information**"). The Parties agree that the term "Confidential Information" shall include (a) business information (including all operating budgets, marketing plans, products and services, employee information, business models, know-how, strategies, designs, reports,

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data, research, financial information, pricing information, corporate client information, market definitions and information, and business inventions and ideas), and (b) technical

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information (including software, algorithms, models, developments, inventions, processes, ideas, designs, drawings, engineering, hardware configuration, and technical specifications, including, but not limited to, computer terminal specifications, the source code developed from such specifications, all derivative and reverse-engineered works of the specifications, and the documentation and software related to the source code, the specifications and the derivative works).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Each Party (including, without limitation, its respective current and future affiliates, direct and indirect beneficial owners, and their respective officers, directors, managers, counsel, representatives, employees, advisors, accountants, auditors and/or agents ("**Representatives**")) shall receive Confidential Information in confidence and shall not, without the prior written consent of the disclosing Party, disclose any Confidential Information of the disclosing Party in violation of this Agreement; provided, however, that there shall be no obligation on the part of the Parties to maintain in confidence any Confidential Information disclosed to it by the other which (i) is generally known to the trade or the public at the time of such disclosure, (ii) becomes generally known to the trade or the public subsequent to the time of such disclosure, but not as a result of disclosure by the other in violation of this Agreement, (iii) is legally received by either Party or any of its respective Representatives from a third party on a non-confidential basis provided that to such receiving Party's knowledge such third party is not prohibited from disclosing such information to the receiving Party by a contractual, legal or fiduciary obligation to the other Party, its Representatives or another party or (iv) was or hereafter is independently developed by either Party or any of its Representatives without violation of its obligations under this Agreement. Each Party represents and covenants that it will protect the Confidential Information of the other Party in accordance with prudent business practices and will use at least the same degree of care to protect the other Party's Confidential Information that it uses to protect its own confidential information of a similar type. Notwithstanding anything contained herein to the contrary, (A) a receiving Party shall be permitted to disclose Confidential Information (i)(a) to any Regulatory Authority (as defined below), without notice to, or consent by, the disclosing Party, (1) in the course of an ordinary examination, inquiry, or routine audit, that does not target the other Party, the Properties, this Agreement, or the Confidential Information and (2) as otherwise required by applicable law, rule, or regulation, (including those of the Securities and Exchange Commission ("**SEC**"), which may require public disclosure of such information) and (b) in the event that the receiving Party or any of its Representatives receives a request or is required by applicable law, rule, regulation, legal proceeding, court order, subpoena, deposition, administrative proceeding, inspection, audit, civil investigative demand, formal or informal investigation by any government or governmental agency or authority or other legal, governmental or regulatory process, or other legal process, to disclose all or part of the Confidential Information to, among others, a court, arbitral panel, governmental agency or other tribunal, the receiving Party will, to the extent legally permitted, notify the disclosing Party of the request, reasonably cooperate with the disclosing Party in seeking a protective order or request for other appropriate remedy to the extent legally permissible and at the sole cost and expense of the disclosing Party, disclose only that portion of

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Confidential Information which is requested or legally required to be disclosed and exercise its commercially reasonable efforts to ensure that confidential treatment will be accorded to the Confidential Information by the party receiving the same, (ii) to any actual

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or potential investor, lender, rating agency or their respective Representatives in connection with an equity investment, financing, refinancing or securitization, of a Property, (iii) that is disclosed in connection with litigation regarding this Agreement or the subject matter contained herein, or (iv) to such receiving Party's Representatives so long as such Representative is made aware of the confidential nature of the Confidential Information; such receiving Party agrees to be responsible for any action of its Representatives that would amount to a breach of the confidentiality obligations contained herein if such Representative were the receiving Party and (B) Asset Manager shall be permitted to disclose (1) the Confidential Information to Asset Manager Vendors (and such parties shall be permitted to further disclose) to the extent reasonably necessary (as determined by Asset Manager in accordance with all Accepted Management Practices) to perform the Services but Asset Manager agrees to be responsible for any action of any Asset Manager Vendor that would amount to a breach of the confidentiality obligations contained herein if such Asset Manager Vendor was the receiving Party and (2) the relevant portions of this Agreement, (including the Power of Attorney) to any title company or any other party that requires, as part of Asset Managers performance of the Services, evidence of Asset Manager's authority to perform its obligations under this Agreement or to delegate the same to Asset Manager Vendors; provided that, in the case of the foregoing <u>clause (A)</u>, such persons are informed of the confidential nature of the information. As used herein, "**Regulatory Authority**" means all local, state and federal regulatory authorities, including the Consumer Financial Protection Bureau, that currently has, or may in the future have, jurisdiction or exercising regulatory or similar oversight with respect to any of the activities contemplated by this Agreement or to Owner, Owner's affiliates or Asset Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Parties agree that the disclosing Party owns all rights, title and interest in and to its Confidential Information and any and all modifications to such Confidential Information, and that the Party receiving the Confidential Information will not reverse-engineer any software or other materials embodying the Confidential Information. The Parties acknowledge that Confidential Information is being provided for limited use internally, and the receiving Party agrees to use the Confidential Information only in accordance with the terms and conditions of this Agreement and in furtherance of the Services. Except as expressly provided herein, no right or license whatsoever is granted with respect to the Confidential Information or otherwise. Notwithstanding anything to the contrary contained herein, Owner shall own all Confidential Information with respect to the Properties, which, for the avoidance of doubt, shall not include any Confidential Information relating to Asset Manager or any Asset Manager Vendor), and Owner, subject to compliance with the provisions of <u>Section 8(i)(vi)</u>, shall be free to disclose such Confidential Information to third parties in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Following termination of this Agreement, upon the request of the disclosing Party, the non-disclosing Party will, promptly after receiving a written request by the disclosing Party, destroy all Confidential Information furnished to it and/or any of its Representatives by or on behalf of the disclosing Party. Except to the extent a Party is advised by legal counsel that such destruction is prohibited by applicable law, the non- disclosing Party and its Representatives will also destroy all written material,

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memoranda, notes, copies, excerpts and other writings or recordings whatsoever prepared by the non- disclosing Party and/or its Representatives based upon, containing or otherwise reflecting

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any Confidential Information; provided, however, that neither the non-disclosing Party nor any of its Representatives shall be obligated to return or destroy Confidential Information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent it has been electronically archived by any such Party in accordance with its automated security and/or disaster recovery procedures as in effect from time to time or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent required by law or their respective internal record retention policies for legal, compliance or regulatory purposes; provided that any such Confidential Information retained shall remain subject to the confidentiality provisions contained herein for (x) with respect to Confidential Information pertaining to Asset Manager's or any Asset Manager Vendor's business information or operations, for two (2) years following the date on which Asset Manager is no longer providing the types of services covered by this Agreement for any property owned by Owner or its affiliates and (y) with respect to all other Confidential Information not covered in subclause (x) hereof, one (1) year following the date on which Asset Manager is no longer providing the types of services covered by this Agreement for any property owned by Owner or its affiliates, provided, however, notwithstanding the foregoing, Owner may not, without the prior written consent of the relevant Manager Owner (as defined below) (which consent may be granted or withheld in such Manager Owner's sole discretion), make any announcement suggesting that Owner is working with, or in a contractual relationship with, any person or entity that Owner knows to be a Manager Owner unless a separate written agreement exists between such Manager Owner and Owner or its affiliates. At the request of the disclosing Party made at the time of its request for the return and/or destruction of Confidential Information, the return and/or destruction of materials in accordance with the foregoing shall be confirmed to the disclosing Party in writing by an authorized officer of the non-disclosing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Owner has informed Asset Manager of the applicability of United States federal and state securities laws to the use of material, non-public information, specifically as it relates to trading in securities of VineBrook Homes Trust, Inc., the indirect parent of Owner, and Asset Manager agrees to comply, shall inform all Asset Manager Parties and use commercially reasonable efforts to cause the Asset Manager Parties to comply, with such rules and related regulations in all material respects and, the VineBrook Homes Trust, Inc. insider trading policy, which was provided to Asset Manager prior to its execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)In addition to the foregoing requirements of this <u>Section 8(i)</u>, each Party agrees that it shall obtain, use, retain and share information concerning tenants of each Property and prospective tenants of any Property, including nonpublic personal information as defined under the Gramm-Leach-Bliley Act of 1999 and its implementing regulations, including all nonpublic personal information of or related to customers or consumers of either Party, including but not limited to names, addresses, telephone numbers, account numbers, customer lists, credit scores, and account, financial, transaction information, consumer reports and information derived from consumer

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reports, that is subject to protection from publication under applicable laws ("**Customer Information**"), in compliance with all applicable state and federal laws and regulations concerning the privacy and confidentiality of such information, including the requirements of the federal Gramm-Leach-Bliley Act of 1999 and its implementing regulations. Asset Manager agrees that it will not disclose or use any Customer Information, including any Customer Information relating to tenants of each Property and prospective tenants of any Property

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other than to carry out the purposes for which such information has been disclosed to it hereunder. Asset Manager agrees that Owner owns all rights, title and interest in and to the Customer Information, including any Customer Information relating to tenants of each Property. Further, Asset Manager agrees that it will not disclose to Owner any Customer Information that contains consumer credit information regarding a natural person or other information that would be subject to applicable privacy laws or restriction on disclosure. Asset Manager hereby agrees to comply with all applicable laws and regulations related to consumer protection and the Data Processing Addendum agreed to by the Parties, attached hereto as <u>Exhibit E</u> attached hereto and incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Neither Party nor any of their respective affiliates shall issue any press releases or otherwise make any public statements with respect to the other Party, any Asset Manager, Owner, or any of their respective affiliates, or the transactions contemplated by this Agreement, including, without limitation, making reference to or using the name of the other Party, any Manager Owner, or any of their respective affiliates, under any circumstance, without the prior written consent of Asset Manager, such Manager Owner or Owner, as applicable, which consent may be granted or withheld in Asset Manager's, such Manager Owner's or Owner's sole discretion, as applicable. The Parties agree, however, that Owner and its affiliates may make such disclosures as are required by them by the regulations of the SEC without the consent of Asset Manager, Manager Owner or any of their affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Additional Rights of Asset Manager</u>. Notwithstanding anything in this Agreement to the contrary, Owner shall not, directly or indirectly, make or take any of the following actions or decisions without the express prior written approval of Asset Manager (which consent shall not be unreasonably withheld, conditioned or delayed), in each instance, other than with respect to clause (f) below, which shall only require prior written notice to Asset Manager:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)incur any indebtedness that would require disclosure of Asset Manager's or its affiliates' direct or indirect beneficial owners (each, a "**Manager Owner**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)enter into any securitization or capital markets transaction that would subject Asset Manager to risk retention requirements or require public disclosure concerning Asset Manager, its affiliates or any Manager Owner, aside from the public disclosure required by applicable law, rule or regulation regarding Asset Manager and that Asset Manager is the Asset Manager of the Properties in the securitization or capital markets transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)enter into any litigation settlement with any regulatory or licensing authority that could reasonably be known by Owner to cause a material adverse effect to Asset Manager and/or regulatory oversight or licensing obligations on Asset Manager, its affiliates or any Manager Owner, that differ from Asset Manager's obligations under this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)engage in any action(s) that would require Asset Manager, its affiliates or any Manager Owner to register with the SEC (as a registered investment adviser, broker dealer or otherwise) or any other regulatory body;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)pursue or otherwise commence an initial public offering or other listing of securities on a nationally recognized exchange, merger or combination transaction with respect to Owner to the extent such transaction would, to Owner's actual knowledge, impose, on Asset Manager, its affiliates or any Manager Owner, any filing or disclosure obligation with a state or federal regulatory agency; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)commit to do any of the foregoing in clauses "(a)" through "(d)". [*Remainder of page intentionally left blank*.]

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the Effective Date.

**<u>OWNER</u>:**

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> Name:

Title:

*[Signatures continue on following page]*

*Signature Page to Asset Management Agreement*

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**<u>ASSET MANAGER</u>:**

**EVERGREEN ASSET MANAGEMENT, LLC**

a Delaware limited liability company

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

Title:

*[End of signatures]*

*Signature Page to Asset Management Agreement*

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**<u>EXHIBIT A</u>**

**ASSET MANAGEMENT SERVICES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Exhibit A to Asset Management Agreement*

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**<u>EXHIBIT B</u>**

**PERMITTED THIRD-PARTY VENDOR CATEGORIES**

(Intentionally Omitted.)

*Exhibit B to Asset Management Agreement*

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**<u>EXHIBIT C</u>**

**LIMITED POWER OF ATTORNEY FORM OF LIMITED POWER OF ATTORNEY**

(Intentionally Omitted.)

*Exhibit C to Asset Management Agreement*

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**<u>EXHIBIT D</u>**

**OWNER AUTHORIZED REPRESENTATIVES**

(Intentionally Omitted.)

*Exhibit D to Asset Management Agreement*

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**<u>EXHIBIT E</u>**

**DATA PROCESSING ADDENDUM**

<br>(Intentionally Omitted.)

*Exhibit E to Asset Management Agreement*

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**<u>SCHEDULE I</u> LITIGATION**

(Intentionally Omitted.)

*Schedule 1 to Asset Management Agreement*

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**<u>SCHEDULE II</u>**

**PROPERTIES MARKETED FOR SALE OR UNDER CONTRACT**

(Intentionally Omitted.)

*Schedule II to Asset Management Agreement*

## Exhibit 10.3

**EXECUTION VERSION**

**REAL ESTATE DEVELOPMENT SERVICES AGREEMENT**

THIS&nbsp;&nbsp;&nbsp;&nbsp;**REAL&nbsp;&nbsp;&nbsp;&nbsp;ESTATE&nbsp;&nbsp;&nbsp;&nbsp;DEVELOPMENT&nbsp;&nbsp;&nbsp;&nbsp;SERVICES&nbsp;&nbsp;&nbsp;&nbsp;AGREEMENT**

("**Agreement**") is made and entered into as of June 10, 2025 (the "**Effective Date**"), by and between **VINEBROOK HOMES OPERATING PARTNERSHIP, L.P.**, a

Delaware limited partnership ("**Owner**"), and **EVERGREEN DEVELOPMENT SERVICES, LLC**, a Delaware limited liability company ("**Service Provider**" and, together with Owner, each individually, a "**Party**" and, collectively, the "**Parties**").

**WHEREAS**, Owner desires to retain and appoint Service Provider to identify, source, inspect and acquire Targeted Properties (as defined in this Agreement) (such services collectively, "**Acquisition Services**") and subsequently provide other services for such Targeted Properties (the "**Project Administration Services**", and together with the Acquisition Services, the "**Services**") during the Term (as defined in this Agreement), in Service Provider's capacity as Owner's independent contractor;

**WHEREAS**, following, or contemporaneously with, the execution and delivery of this Agreement, Owner and Evergreen Residential Management, LLC, a Delaware limited liability company, as property manager ("**Property Manager**"), will enter into one or more Property Management Agreements dated as of the date thereof (as may be, in accordance with the terms thereof, amended, restated, or otherwise modified from time to time, individually, or collectively, the "**Property Management Agreement**"), pursuant to which Owner will appoint Property Manager to perform certain services as set forth in the Property Management Agreement relating to certain properties owned or acquired by Owner;

**WHEREAS**, following, or contemporaneously with, the execution and delivery of this Agreement, Owner and Evergreen Asset Management, LLC, an affiliate of Service Provider, as asset manager ("**Asset Manager**"), will enter into one or more Asset Management Agreements dated as of the date thereof (as may be amended, restated, or otherwise modified from time to time, individually, or collectively, the "**Asset Management Agreement**"), pursuant to which Owner will appoint Asset Manager to perform certain services as set forth in the Asset Management Agreement relating to certain properties owned or acquired by Owner;

**WHEREAS**, the Parties desire for Service Provider to cause Targeted Properties (as defined in this Agreement) to be acquired on behalf of Owner in accordance with the terms of this Agreement ("**Acquired Properties**") and such Targeted Properties shall become Properties (as defined in the Property Management Agreement) under one of the Property Management Agreements as well as Properties (as defined in the Asset Management Agreement) under the Asset Management Agreement and will be subject to the terms and conditions of the applicable Property Management Agreement and Asset Management Agreement once acquired;

**WHEREAS**, Service Provider desires to accept the foregoing appointment from Owner to perform the Services and covenants to carry out the Services and all related duties under this Agreement with at least Due Care at all times. As used herein ("**Due Care**"), means (i) to act in accordance with all applicable laws and the express terms of this Agreement and (ii) to act in the same manner in which, and with the same care, skill, prudence and diligence with which Service Provider, and/or its affiliates, provide similar services for other third parties; <u>provided</u>, however,

------

that such care, skill, prudence and diligence shall at all times and from time to time be at least as favorable as the degree of care, skill, prudence and diligence generally applied by prudent asset managers of residential real estate, exercising reasonable business judgment; and

WHEREAS, VineBrook Homes Trust, Inc., the indirect parent of Owner, does not intend for Service Provider to have any duties or responsibilities that NexPoint Real Estate Advisors V, L.P., a Delaware limited partnership is responsible for pursuant to the advisory agreement by and between VineBrook Homes Trust, Inc. and NexPoint Real Estate Advisors V, L.P., a Delaware limited partnership.

**NOW, THEREFORE**, in consideration of the mutual covenants herein set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Appointment</u>. Owner hereby retains and appoints Service Provider as an independent contractor to perform the Services during the Term and Service Provider hereby accepts such appointment, on the terms and conditions set forth in this Agreement. If Service Provider holds, under the name of an affiliate, any licenses required to provide the Services, Service Provider is authorized to cause each such Service Provider affiliate to fulfill the obligations of Service Provider under this Agreement with respect to each Property located in a jurisdiction for which such Service Provider affiliate is licensed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Responsibilities of Service Provider</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Generally</u>. Service Provider shall perform the Services with Due Care and in accordance with this Agreement and shall at all times comply with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Presentation and Targeted Properties</u>. During the Term, Service Provider may (but shall have no affirmative obligation to), from time to time and at Service Provider's sole discretion, present Owner with potential Targeted Properties that are sourced by Service Provider, which shall include Targeted Properties part of a broadly marketed process from a third party. Owner acknowledges that Service Provider may be providing similar acquisition services and project administration services for other persons for similar assets and in similar or the same markets. Service Provider shall perform the Acquisition Services relating to properties that have been approved by Owner in writing (email being sufficient) ("**Targeted Properties**"). Service Provider shall be authorized to submit offers for Targeted Properties in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Related Party Transactions</u>. Notwithstanding anything to the contrary contained herein, in no event shall any property proposed to be a Targeted Property be sold from (or to) Service Provider, its affiliates, or any person for which any of the foregoing is in a contractual, fiduciary, advisory or other relationship, to (or from) Owner (or its affiliates) without Owner providing express written consent, prior to Owner approving Service Provider to treat the property as a Targeted Property, expressly acknowledging such actual or potential conflict of interest.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Representations and Warranties Regarding Acquired Properties</u>. Service Provider hereby represents and warrants to Owner that each Acquired Property, as of the date of acquisition, shall qualify as a Targeted Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Fees; Expenses</u>. As consideration for performing the Acquisition Services, Service Provider shall be entitled to receive an acquisition fee of (x) 2.0% if the Acquired Property is not part of a broadly marketed process, (y) 1.375% if the Acquired Property is part of a broadly marketed process from a third party with structured bid timelines, or (z) 0.75% if the Acquired Property is acquired solely as result of a non-broadly marketed process and neither Service Provider nor its affiliates received, nor had accessed, information regarding such Acquired Property prior to Owner providing such information, of the price paid by Owner or its subsidiaries to the seller of the Acquired Property for the Acquired Property (the "**Acquisition Fee**"). The Acquisition Fee shall be paid to Service Provider by Owner at the closing of the acquisition of such Acquired Property, or later, at the discretion of Service Provider and supported by reasonable documentation and calculations to be provided to Owner by Service Provider as part of the Acquired Property File (as defined below). In addition, if Service Provider completes a Due Diligence Investigation (as defined on <u>Exhibit J</u>) of a Targeted Property prior to the closing of the related acquisition, Service Provider shall be entitled to receive a fee from Owner of $450 per inspection for all Targeted Properties actually inspected (interior or exterior), regardless of whether such property was acquired (the "**Inspection Fee**"), to be paid within thirty (30) days of the delivery to Owner of all related walkthrough or inspection documentation, including third-party reports and notes and pictures taken by Service Provider and its employees and agents. Except as otherwise set forth herein, each Party shall be responsible for bearing its own respective costs and expenses incurred in connection with this Agreement. For the avoidance of doubt, no Acquisition Fee shall be owed or payable for any Acquired Property that is acquired from a NexPoint Controlled Transferee (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Insurance</u>. Service Provider shall obtain and shall cause to be maintained, at its own expense, through the remaining term of this Agreement, each and all of the following types and amounts of insurance coverage and such other insurance as Service Provider considers appropriate in connection with its business. Owner shall be named as an additional insured under Service Provider's automobile, commercial general liability, umbrella, and cyber policies. Further, each policy shall contain an endorsement requiring the insurer to provide Owner with thirty (30) days written notice prior to cancellation of the policy. Insurance coverage shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Comprehensive crime insurance including employee dishonesty covering Service Provider and all employees of Service Provider handling Owner's funds or other documents, with a per claim limit of not less than One Million Dollars ($1,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Errors and omissions insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence and in aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Worker's compensation insurance in compliance with all applicable laws covering all employees of Service Provider.

- 3 -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Commercial General Liability insurance with a combined single limit of not less than One Million Dollars ($1,000,000) combined single limit per occurrence and Two Million Dollars ($2,000,000) in the aggregate, applying to bodily injury and property damage, with Broad Form Liability Endorsement on an occurrence basis and including coverage for the hazards of operation, independent contractors, products and completed operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Commercial automobile liability coverage of Two Million Dollars ($2,000,000) per accident, combined single limit bodily injury and property damage (which coverage shall include, without limitation, liability assumed under any contract).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Comprehensive cyber insurance, with a per-claim and aggregate limit of not less than Two Million Dollars ($2,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Directors' and officers' fiduciary and employment practices liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence and in aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Umbrella Liability insurance with a combined single limit of not less than Ten Million Dollars ($10,000,000), per occurrence, for bodily injury and property damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)Employment Practices Liability insurance covering claims arising from actual or alleged wrongful termination, discrimination, harassment (including sexual harassment), retaliation, and other wrongful employment acts, with minimum limits of

$2,000,000 per claim and in the aggregate, including coverage for third-party liability claims. Such insurance shall include coverage for claims brought by current, former, and prospective employees, as well as tenants and other third parties interacting with employees. Coverage shall be maintained on a claims-made basis with a retroactive date no later than the inception of Service Provider's services under this Agreement, and Service Provider shall maintain extended reporting period coverage (tail coverage) for at least three

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) years following termination of services under this Agreement. The policy shall not contain exclusions materially inconsistent with the scope of employment-related risks assumed by the Service Provider in performing its services.

All insurance policies required above shall be written with solvent insurance companies authorized to do business in the state in which the Targeted Properties are located. Prior to the Effective Date and within thirty (30) days following Owner's request therefor, Service Provider shall furnish, or cause to be furnished, original certified copies of certificates or (at Owner's option) policies of insurance to Owner, evidencing the insurance coverage described above. Upon Owner's request, Service Provider shall furnish such evidence of all renewals to Owner within thirty (30) days of the expiration of the prior policy period. All policies that Service Provider is required to carry must be endorsed to provide a waiver of subrogation in favor of Owner and its partners, members, officers, directors, agents, employees, lenders, successors, and assigns (including any

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deductibles). Service Provider shall notify Owner and Owner's insurance carrier promptly upon becoming aware of any casualty, loss, injury, claim or other event which may result in a

- 6 -

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claim under any policy maintained by Service Provider if related to the Services under this Agreement. Service Provider will reasonably cooperate with Owner and Owner's insurance carrier on loss control inspections, responding to recommendations and other safety issues with respect to Owner's insurance.

Notwithstanding anything to the contrary contained herein, Service Provider shall have thirty (30) days following the Effective Date to obtain the insurance described in <u>Sections</u> <u>2(f)(viii)</u> and <u>(v)</u> above, provided, however, in the event that such insurance is not obtained in such time period, and provided that Service Provider has commenced and is diligently pursuing such insurance, such thirty (30) day period shall be extended for an additional thirty (30) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Acquired Property File</u>. At all times from and after acquisition of each Acquired Property, Service Provider shall record, preserve and store in electronic data form and thereafter maintain all items set forth on <u>Exhibit F</u> (the "**Acquired Property File**") on behalf of Owner. Service Provider shall send Owner an electronic copy of the Acquired Property File within ten (10) business days of Owner acquiring the Acquired Property, such copy to contain the components of the Acquired Property File that are then in the possession or control of Service Provider, and thereafter, Service Provider shall promptly, and no later than thirty (30) days following the closing of the acquisition, update the Acquired Property File for any components not previously provided upon receipt of such components, other than with respect to any recorded deeds or owner's title insurance policies, which Service Provider shall provide to Owner promptly upon receipt of same. Owner shall have reasonable access to such Acquired Property Files upon advance notice to Service Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Project Administration Services</u>. After the closing of the acquisition of the Acquired Property (or if the Acquired Property is subject to an existing lease, upon the move out of the applicable tenant), Service Provider shall complete initial "clean and secure" services, including re-keying, initial cleaning to broom-clean condition and clearing of any items or debris left in the home (the "**Post-Purchase Clean and Secure**"). Additionally, Service Provider as independent contractor shall engage, on behalf of and in the name of Owner and on Service Provider's standard and customary form agreements approved by Owner as of the Closing Date (or otherwise on such forms as have been approved in writing by Owner), general contractors, service providers and other trades to perform the necessary repairs and upgrades needed prior to the Acquired Property being occupied for the first time following acquisition by Owner, at all times in accordance with the renovation standards described in <u>Exhibit G</u> (the "**Renovation Standards**") and for a cost of no more than $5,000 unless otherwise approved, in writing, by Owner. Service Provider will provide commercially reasonable oversight of the repair projects (or other projects including, but not limited to, walkthroughs, builder/developer monitoring and oversight and capital improvements) related to each Acquired Property and use commercially reasonable efforts to manage the third-party providers to complete such projects on approved timelines (the "**Project Administration Services**"). In no event shall Service Provider's engagement of any subcontractors or other providers relieve Service Provider of any of its obligations, duties, or liabilities under this Agreement.

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(i)<u>Project Administration Fees.</u> Service Provider will be entitled to a fee of

$450 per Acquired Property for Post-Purchase Clean and Secure services, paid by Owner (the

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"**Clean and Secure Fee**"), paid by Owner upon receipt of written notice for same from Service Provider, which notice shall include reasonable evidence of completion of the Post-Purchase Clean and Secure services and an invoice for the work. Service Provider will also, for Project Administration Services performed prior to the Acquired Property being first occupied after Owner acquires it, be entitled to a fee of (x) $1,000 for any Project Administration Services related to new-build homes that have already been completed upon acquisition closing and require make- ready repairs, or (y) $3,500 for Project Administration Services related to contracted forward home deliveries which require project oversight for construction and punch list completion (collectively, the "**Repair Oversight Fee**"), paid by Owner upon Service Provider sending Owner evidence of final completion of the Project Administrative Services for which such Repair Oversight Fee is being paid and an invoice for the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Financing</u>. Service Provider shall reasonably cooperate at Owner's sole cost and expense in connection with any financing or refinancing of the Acquired Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)<u>Third-Party Service Providers</u>. Notwithstanding anything to the contrary contained herein, Service Provider shall be permitted to engage third parties to provide those services expressly set forth in the categories listed on <u>Exhibit H</u> attached hereto (each, a "**Third- Party Service Provider**"), which such categories may be expanded from time to time by Service Provider subject to Owner's written approval in Owner's sole discretion. Owner shall be responsible for all fees, compensation, and other costs or expenses incurred in connection with services provided by Third-Party Service Providers that (i) are, within the institutionally owned single-family rental industry, reasonably and customarily provided by third-parties other than a property manager, and (ii) do not exceed market rates for Third-Party Services Providers of such type, and Service Provider shall be responsible for all other fees, compensation and other expenses of Third-Party Service Providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Responsibilities of Owner</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Limited Powers of Attorney</u>. Owner shall, on or within a reasonable time after the Effective Date and from time to time upon reasonable request from Service Provider, deliver to Service Provider one or more original executed Limited Powers of Attorney substantially in the form attached hereto as <u>Exhibit B</u> (each, a "**Power of Attorney**") authorizing Service Provider to sign documentation as the attorney-in-fact of Owner in order for Service Provider to perform the Acquisition Services in accordance with the terms and conditions of this Agreement. The Parties agree to cooperate in good faith to update the Power of Attorney as reasonably requested by either Party, but neither Party shall be in breach of this Agreement for failure to make any such updates. Service Provider hereby acknowledges and agrees that Service Provider will, with Due Care (a) designate those persons who will be authorized by Service Provider from time to time to execute documents on behalf of Owner pursuant to this Power of Attorney (the "**Authorized Signatories**"); (b) promptly provide a list of such Authorized Signatories to Owner upon execution of this Agreement and upon each revision to such list; (c) monitor and supervise its employees and third party agents, including all Authorized Signatories in the conduct of those functions and activities authorized by this Power of Attorney to ensure compliance with the Agreement, Due Care, and the Power of Attorney; and (d) take

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commercially reasonable actions, steps and precautions to ensure that Service Provider, either directly or indirectly through an employee of Service Provider or third party agent, does not act in any manner that exceeds the

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authorization granted under the Power of Attorney, or in any way circumvents or otherwise modifies the rights, duties, obligations, or restrictions placed on the Service Provider under this Agreement. Owner shall have the right to rescind any Power of Attorney at any time upon written notice to Service Provider. Service Provider may request in writing that Owner execute certificates, resolutions or other similar documents from time to time as needed to evidence Service Provider's right to perform the Services and if Owner fails to provide any such documents so requested by Service Provider within ten (10) Business Days of such request, and such failure precludes Service Provider's ability to perform any of the Services or Service Provider's (or its affiliates) obligations hereunder, then, for so long as Owner fails to execute such certificates, resolutions or other similar documents (including during the ten (10) Business Day notice period), Service Provider shall not be liable for any failure to perform any such Services or obligations so precluded, and any such failure shall not constitute an "event of default" hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Acquisition Process</u>. Service Provider and Owner shall comply with the terms and conditions of <u>Exhibit J</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Forecasted Expenses</u>. Service Provider will, prior to the 15th day of each month and in writing, provide Owner with a forecast of Permitted Acquisition Expenses and other cash and liquidity needs of Owner, relating to forecasted acquisitions, for the following month ("**Forecasted Expenses**"). Additionally, at least ten business days prior to any Forecasted Expenses becoming due, Service Provider will provide Owner written notice of the following information: (i) the Forecasted Expenses which are becoming due and payable, (ii) a reasonable description of such Forecasted Expenses and (iii) the payment instructions for such Forecasted Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Term</u>. The term of this Agreement (the "**Term**") shall commence on the Effective Date and shall expire on the seventh (7th) anniversary of the Effective Date (the "**Initial Term**"). The Initial Term shall automatically be renewed for successive renewal terms of one (1) year (each such successive one (1) year term, a "**Renewal Term**" and, together with the Initial Term, collectively, the "**Term**") unless earlier terminated or either Party notifies the other Party in writing at least ninety (90) days prior to the expiration date of the Initial Term or the then-current Renewal Term, as the case may be, that such Party elects to terminate this Agreement. Notwithstanding the foregoing, this Agreement may be terminated upon prior written notice by the applicable Party for the following reasons upon the time periods set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)immediately by either Party upon the liquidation, winding- up or termination of the existence of Owner, provided, however, in the event such liquidation, winding-up or termination is the result of a transfer of the assets of Owner to a NexPoint Controlled Transferee, and such NexPoint Controlled Transferee assumes this Agreement, then, Service Provider shall not be permitted to terminate this Agreement pursuant to this <u>Section 4(A)</u>. For purposes of this Agreement, (i) "**NexPoint Controlled Transferee**" means either or both of (a) an affiliate of Owner, and (b) a Delaware Statutory Trust controlled by NexPoint Real Estate Advisors IV, L.P., a Delaware limited partnership or its affiliates; (ii)

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"**Control"** means, when used with respect to any specified Person, the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interest, by contract

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or otherwise; and the terms "control", "controlling" and "controlled" have the meanings correlative to the foregoing; (iii) "**Person**" means any individual or Entity, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person where the context so permits; and (iv) "**Entity**" means any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, Delaware Statutory Trust, business trust, cooperative or association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)immediately by either Party upon (i) the filing of a petition by the other Party or its parent companies or subsidiaries (such other Party and each such parent company and subsidiary of such other Party, a "**Relevant Person**") for relief under the Bankruptcy Code (as defined below), or under any other present or future state or federal law regarding bankruptcy, reorganization or other debtor relief law; (ii) the filing of any pleading or an answer by a Relevant Person in any involuntary proceeding under the Bankruptcy Code or other debtor relief law which admits the jurisdiction of the court or the petition's material allegations regarding such Relevant Person's insolvency; (iii) a general assignment by a Relevant Person for the benefit of creditors; (iv) a Relevant Person applying for, or the appointment of, a receiver, trustee, custodian or liquidator of a Relevant Person or any of its property or (v) the failure of a Relevant Person to effect a full dismissal of any involuntary petition under the Bankruptcy Code or under any other debtor relief law that is filed against a Relevant Person, prior to the earlier of (x) the entry of any court order granting relief sought in such involuntary petition or (y) one hundred twenty (120) days after the date of filing of such involuntary petition. As used herein "**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, state, local or foreign bankruptcy or insolvency law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)by the non-defaulting Party for a default by the other Party of any material non-monetary term, representation, covenant, or provision hereof, where such default continues uncured for a period of thirty (30) days after receipt of written notice of such default from the non-defaulting Party; provided, however, that such thirty (30) day period shall be extended for up to an additional sixty (60) days to the extent the underlying default is not reasonably susceptible of cure within such thirty (30) day period and so long as the defaulting party has commenced and is diligently pursuing a cure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)by the non-defaulting Party for a default by the other Party of any monetary term, covenant or provision hereof where such default continues uncured for a period of thirty (30) days after receipt of written notice of such default from the non-defaulting Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)By Owner for any reason or no reason, as long as Owner provides no less than ninety (90) days advance notice of the termination (other than

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a termination in connection with a CoC Transfer which shall require no less than thirty (30) days advance notice) and has paid, on or prior to the effective date of the termination, all fees owed under this Agreement prior to that effective date. "**CoC Transfer**" shall mean any transfer to a bona fide third party of the ownership of all or substantially all of the properties owned, directly or indirectly, by Owner, whether through a sale of one or more individual properties or a sale of all or substantially all of the direct or indirect equity interests in the owner of the properties or its parents or subsidiaries, whether in one transaction, or a series of related transactions. Regarding any termination of this Agreement under this Section 4(E) that is effective prior to the date that is twenty-four (24) months from the Effective Date, Owner shall pay a "DSA Termination Fee". The DSA Termination Fee shall be a dollar amount calculated by using the following formula: (0.02 \* (500,000,000 - Total Acquisition Spend - Broken Deal Total)) - Already Paid Measurement Period Service Fees. For the purposes of the DSA Termination Fee equation, the "Broken Deal Total" shall mean the sum of all purchase prices of all Target Properties (as such purchase prices were listed in the relevant Target PSAs (defined below)) for which Owner, or any of its subsidiaries, provided the seller of the relevant Target Property ("**Seller**") with a proposed purchase and sale agreement ("**Target PSA**") and (i) Seller subsequently failed to sign the Target PSA or close the transaction, or (ii) Owner terminated the Target PSA due to a Seller default, material title issue, or material environmental issue. For the purposes of the DSA Termination Fee equation, any transactions that are, as of the effective date of the termination of this Agreement, under a letter of intent or contract for purchase shall be deemed purchased for the purpose of calculating the Total Acquisition Spend (as otherwise defined in that certain letter agreement between Evergreen Residential Management, LLC, Owner and Service Provider dated as of the date hereof (the "**Letter Agreement**")). For the purposes of the DSA Termination Fee equation, the "Already Paid Measurement Period Service Fees" shall be all Measurement Period Service Fees (as defined in the Letter Agreement) paid to Service Provider prior to the effective date of the termination of this Agreement. Notwithstanding the foregoing, the DSA Termination Fee shall never exceed $5,000,000.00.

Notwithstanding the termination or expiration of this Agreement, the obligations of Owner to pay amounts due under this Agreement with respect to periods prior to the effective time of the termination or expiration hereof and the provisions of <u>Sections 5</u>, <u>6</u>, and <u>9</u> shall survive any termination or expiration of this Agreement and <u>Sections</u> <u>7</u> and <u>8</u> shall survive solely to the extent needed to enforce rights under <u>Sections</u> <u>5</u>, <u>6</u>, and <u>9</u>. After a termination of this Agreement (whether prior to or after twenty-four

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) months from the Effective Date), Owner shall not owe (under this Agreement or the Letter Agreement) any Measurement Period Service Fee or Runoff Date Service Fee other than Measurement Period Service Fees for Measurement Periods that completed a full, consecutive, twelve month period prior to the effective date of the termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Indemnity</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Service Provider shall indemnify, defend, protect and hold harmless Owner, Owner's affiliates, their respective past, present, and future, officers, managers, directors, shareholders, agents, members, attorneys, partners, principals, consultants, and employees, and their respective successors and assigns (each, an "**Owner Indemnitee**") from and against any and all claims, actions, causes of action, losses, liabilities, damages, deficiencies, and reasonable and documented, out-of-pocket costs and expenses, including (but not limited to) interest, penalties and reasonable and documented out-of-pocket attorneys' fees, (each of the foregoing individually a "**Claim**" and collectively the "**Claims**") arising out of, or to the extent attributable to, any or all of (i) the gross negligence, fraud, bad faith, illegal activity, or willful misconduct of Service Provider (ii) any failure of Service Provider to materially perform any of its obligations as and when required under this Agreement, but only following the expiration of any applicable notice and cure periods, or (iii) a knowing and intentional breach of any representation made by Service Provider in this Agreement. Service Provider shall not however, owe any indemnity under this Agreement to the extent the matter for which indemnification sought is (x) caused by, relates to, or arises from, any Owner Indemnitee's gross negligence, fraud, bad faith, illegal activity, willful misconduct or material breach under this Agreement or (y) one for which Owner owes Service Provider indemnification, and <u>provided</u>, <u>further</u>, that Service Provider's indemnification obligations hereunder (other than to the extent arising under clause (i) or clause (iii) of this <u>Section</u> <u>5(a)</u>) shall not exceed the greater of the insurance proceeds available from policies carried by Service Provider or the fees received by Service Provider under this Agreement. The indemnification contained in this <u>Section 5(a)</u> shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Owner shall indemnify, defend, protect and hold harmless Service Provider, Service Provider's affiliates and Service Provider Owners (as defined herein), and their respective past, present, and future, officers, managers, directors, shareholders, agents, members, attorneys, partners and employees, and their respective successors and assigns (each, a "**Service Provider Indemnitee**") from and against any and all Claims arising out of, or to the extent attributable to, any or all of (i) any act or omission in connection with the performance by Service Provider of its duties in accordance with this Agreement, (ii) the failure of Owner to materially perform its obligations hereunder as and when required under this Agreement, but only following the expiration of any applicable notice and cure periods, (iii) conduct at or management of the Properties prior to the Effective Date, (iv) conduct of Owner prior to the Effective Date, or (v) the material breach of any representation made by Owner in this Agreement. Owner shall not, however, owe any indemnity under this Agreement to the extent the matter for which indemnification is sought is (x) caused by, relates to, or arises from, any Service Provider Indemnitee's gross negligence, fraud, bad faith, illegal activity, willful misconduct or material breach of this Agreement or (y) one for which Service Provider owes Owner indemnification. The indemnification contained in this <u>Section 5(b)</u> shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Within fifteen (15) days after receipt by a party seeking indemnification ("**Indemnified Party**") of written notice of the commencement of any proceeding against it regarding a Claim for which the Indemnified Party seeks indemnification, as applicable, such Indemnified Party will give written notice (in reasonable detail and indicating the estimated

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amount of such claims, in each case to the extent reasonably practicable) to the party from whom indemnification is sought (such party, the "**Indemnifying Party**") of the commencement of such proceeding. The failure to notify the Indemnifying Party within such 15-day period will not relieve the Indemnifying Party of any liability that it may have to the Indemnified Party, except to the

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extent that the Indemnifying Party demonstrates that the Indemnifying Party is prejudiced by the Indemnified Party's failure to give such notice. If any such proceeding is brought against an Indemnified Party and such Indemnified Party gives notice thereof to the Indemnifying Party, the Indemnifying Party will be entitled to participate in such proceeding (at its sole cost and expense) or, subject to the limitations set forth herein, to assume the defense of such proceeding (at its sole cost and expense) with counsel reasonably satisfactory to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume the defense of a proceeding, the Indemnifying Party will not, as long as it diligently conducts such defense, be liable to the Indemnified Party under this <u>Section 5</u> for any fees of other counsel or any other expenses with respect to the defense of such proceeding, in each case subsequently incurred by the Indemnified Party in connection with the defense of such proceeding; <u>provided</u>, that the Indemnified Party shall have the right to participate in the defense of any claim or proceeding with counsel selected by it, subject to the Indemnifying Party's right to control the defense thereof; <u>provided</u>, <u>further</u>, that the Indemnified Party shall have the right to participate in the defense of any claim or proceeding with separate counsel paid for by the Indemnifying Party if the Indemnified Party, on advice of counsel, notifies the Indemnifying Party that there is a conflict of interest between the Indemnified Party and the Indemnifying Party or the Indemnified Party has defenses available to it that are not available to the Indemnifying Party. If the Indemnifying Party assumes the defense of a proceeding, the Indemnified Party will reasonably cooperate in the defense or prosecution thereof. The Indemnifying Party's right to conduct the defense of a proceeding will be conditioned upon the Indemnifying Party's continued diligent, good-faith defense of such proceeding. If the Indemnifying Party ceases to diligently defend in good faith such proceeding after 10 days' written notice thereof by the Indemnified Party, the Indemnified Party may thereafter defend, compromise and settle such third-party proceeding. Unless the settlement, compromise or consent provides for a full release of the Indemnified Party with regard to the Claims on which the Indemnified Party sought indemnification, no Indemnifying Party will settle, compromise or consent to the entry of a judgment of any claim or proceeding subject to this <u>Section 5</u> without the prior written consent of the Indemnified Party, which consent may be granted or withheld in the Indemnified Party's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Representations and Warranties</u>. Each Party hereby represents and warrants to the other Party that: (i) such Party is (A) duly organized, validly existing, and in good standing in the jurisdiction in which it is organized, (B) duly qualified to do business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its businesses and operations, and (C) has the authority to enter into this Agreement and this Agreement constitutes its legal, valid, binding, and enforceable agreement, (ii) execution and performance by such Party of this Agreement (A) does not breach any agreement of such Party with any third party or any duty arising in law or equity, (B) does not violate any applicable federal, state, or local laws, rules, ordinances or regulations, (C) are within its governing powers, and (D) has been authorized by all necessary corporate, limited liability company or similar action of such Party, (iii) no consent, approval, authorization, or order of any state or federal court or governmental agency or body or third party is required for the consummation by such Party of the transactions contemplated herein except for those consents, approvals, authorizations, or orders that previously have been obtained and except where the failure to obtain those consents, approvals, authorizations, or orders is unlikely to affect materially and adversely either the ability of such

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Party to perform its obligations under this Agreement or the financial condition of such Party, and (iv) there are no legal actions pending or, to such Party's knowledge, threatened against it that would reasonably be expected to

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interfere with such Party's performance under this Agreement, and such Party agrees to promptly inform the other Party of any such legal action that occurs during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Governing Law, Forum, No Jury Trial</u>. This Agreement shall be governed, construed and interpreted in accordance with the laws of the State of Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)EACH OF THE PARTIES HEREBY IRREVOCABLY AGREES THAT ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST ANY PARTY ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN DALLAS COUNTY, TEXAS AND EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING. EACH OF THE PARTIES HEREBY IRREVOCABLY CONSENTS AND SUBMITS TO THE JURISDICTION OF SAID COURTS FOR ANY SUCH SUIT, ACTION OR PROCEEDING. EACH OF THE PARTIES HEREBY WAIVES THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH SUIT, ACTION OR PROCEEDING IN SAID COURTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)EACH OF THE PARTIES KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Amendment and Waiver</u>. Any amendment of this Agreement may be made only by a written instrument executed by Service Provider and Owner. No waiver by any party of any obligation of the other party, or any breach or default by the other party in the performance by such party of its obligations hereunder, shall be binding or enforceable except to the extent set forth in a writing signed by the party sought to be charged thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Entire Agreement</u>. This Agreement, the Property Management Agreement, the Asset Management Agreement, and the Letter Agreement, together with the exhibits attached hereto and thereto, constitute the entire agreement between the parties and supersedes any prior agreements, promises, negotiations between Service Provider and Owner relating to the subject matter of this Agreement. If any of the below listed exhibits conflicts with any section of this Agreement, such exhibit shall control.

□**Exhibit A –** Intentionally Omitted

□**Exhibit B –** Form of Limited Power of Attorney

□**Exhibit C –** Designees of Owner Authorized to Approve Acquisitions

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□**Exhibit D –** Permitted Acquisition Expenses

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□**Exhibit E –** Intentionally Omitted

□**Exhibit F** – Acquired Property File

□**Exhibit G** – Renovation Standards

□**Exhibit H** – Permitted Third-Party Service Provider Categories

□**Exhibit I** – Intentionally Omitted

**Exhibit J** – Acquisition Process

**Exhibit K** – Data Processing Addendum

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Notices</u>. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and may be sent by United States mail, postage prepaid, electronic mail, or overnight courier or messenger, to the respective Parties at the addresses shown below or at such other addresses as the Parties hereto may, from time to time, hereafter designate in writing:

If to Owner:&nbsp;&nbsp;&nbsp;&nbsp;c/o NexPoint Real Estate Advisors V, L.P.

300 Crescent Court, Suite 700

Dallas, Texas 75201

Attention: Legal Department, VineBrook Email: <u>legal@nexpoint.com</u>

If to Service Provider:&nbsp;&nbsp;&nbsp;&nbsp;c/o Evergreen Residential Holdings, LLC

1999 Bryan Street, 13<sup>th</sup> Floor Dallas, Texas 75201 Attention: Legal Department

Email: legal@evergreenresi.com

With a copy to:&nbsp;&nbsp;&nbsp;&nbsp;Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019 Attention: Kris Agarwal Email: kagarwal@willkie.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Severability</u>. If any provision or term of this Agreement shall be determined by any court of competent jurisdiction to be invalid or unenforceable for any reason whatsoever, the remainder of this Agreement shall not be affected thereby, and each provision hereof shall be valid and shall be enforced to the fullest extent of law unless the consideration for the Agreement is negated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Counterparts</u>. This Agreement may be executed by the Parties hereto in separate counterparts, each of which, when so executed and delivered, shall constitute an

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original, but all of which, when taken together, shall constitute one contract. Delivery of an executed

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counterpart of this Agreement by .pdf or other electronic delivery shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Successors and Assigns</u>. This Agreement may not be assigned by either Party without the prior written consent of the other Party hereto in its sole discretion, provided, however, (i) Owner may without the consent of Service Provider, but upon thirty (30) days' prior written notice to Service Provider, assign this Agreement to a NexPoint Controlled Transferee, and (ii) Service Provider shall have the right to, without the consent of, but upon thirty (30) days' prior written notice to, Owner, to assign this agreement (x) to any affiliate of Service Provider, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) to any entity that acquires, directly or indirectly, (whether by way of merger, consolidation, recapitalization, acquisition of equity interests, or otherwise) all or substantially all of the assets of, or interests in, Service Provider. The provisions hereof shall inure to the benefit of, and be binding upon, the successors and permitted assigns of the Parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Titles and Subtitles</u>. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)In performing their obligations pursuant to this Agreement, either Party may disclose to the other Party, either directly or indirectly, in writing, orally or by inspection of intangible objects (including, without limitation, documents), certain non- public confidential or proprietary information, including, without limitation, the names and addresses of tenants, the Properties, a party's customers, marketing plans and objectives, research and test results, operating budgets and other information that is confidential and the property of the Party disclosing the information ("**Confidential Information**"). The Parties agree that the term "Confidential Information" shall include (a) Customer Information (as defined below), (b) business information (including all operating budgets, marketing plans, products and services, employee information, business models, know- how, strategies, designs, reports, data, research, financial information, pricing information, corporate client information, market definitions and information, and business inventions and ideas), and (c) technical information (including software, algorithms, models, developments, inventions, processes, ideas, designs, drawings, engineering, hardware configuration, and technical specifications, including, but not limited to, computer terminal specifications, the source code developed from such specifications, all derivative and reverse-engineered works of the specifications, and the documentation and software related to the source code, the specifications and the derivative works).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Each Party (including, without limitation, its respective current and future affiliates, direct and indirect beneficial owners, and their respective officers, directors, managers, counsel, representatives, employees, advisors, accountants, auditors and/or agents ("**Representatives**")) shall receive Confidential Information in confidence and shall not, without the prior written consent of the disclosing Party, disclose any

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Confidential Information of the disclosing Party in violation of this Agreement; provided, however, that there shall be no obligation on the part of the Parties to maintain in confidence any Confidential Information disclosed to it by the other which (i) is generally

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known to the trade or the public at the time of such disclosure, (ii) becomes generally known to the trade or the public subsequent to the time of such disclosure, but not as a result of disclosure by the other in violation of this Agreement, (iii) is legally received by either Party or any of its respective Representatives from a third party on a non-confidential basis provided that to such receiving Party's knowledge such third party is not prohibited from disclosing such information to the receiving Party by a contractual, legal or fiduciary obligation to the other Party, its Representatives or another party or (iv) was or hereafter is independently developed by either Party or any of its Representatives without violation of its obligations under this Agreement. Each Party represents and covenants that it will protect the Confidential Information of the other Party in accordance with prudent business practices and will use at least the same degree of care to protect the other Party's Confidential Information that it uses to protect its own confidential information of a similar type. Notwithstanding anything contained herein to the contrary, (A) a receiving Party shall be permitted to disclose Confidential Information (i)(a) to any Regulatory Authority (as defined below) without notice to, or consent by, the disclosing Party (1) in the course of an ordinary examination, inquiry or routine audit that does not target the other Party, the Properties, this Agreement, or the Confidential Information, and (2) as otherwise required by applicable law, rule, or regulation, (including those of the Securities and Exchange Commission ("**SEC**"), and (b) in the event that the receiving Party or any of its Representatives receives a request or is required by applicable law, rule, regulation, legal proceeding, court order, subpoena, deposition, administrative proceeding, inspection, audit, civil investigative demand, formal or informal investigation by any government or governmental agency or authority or other legal, governmental or regulatory process, or other legal process, to disclose all or part of the Confidential Information to, among others, a court, arbitral panel, governmental agency or other tribunal, the receiving Party will, to the extent legally permitted, notify the disclosing Party of the request, reasonably cooperate with the disclosing Party in seeking a protective order or request for other appropriate remedy to the extent legally permissible and at the sole cost and expense of the disclosing Party, disclose only that portion of Confidential Information which is requested or legally required to be disclosed and exercise its commercially reasonable efforts to ensure that confidential treatment will be accorded to the Confidential Information by the party receiving the same, (ii) to any actual or potential investor, lender, rating agency or their respective Representatives in connection with an equity investment, financing, refinancing or securitization, of a Property, (iii) that is disclosed in connection with litigation regarding this Agreement or the subject matter contained herein, or (iv) to such receiving Party's Representatives so long as such Representative is made aware of the confidential nature of the Confidential Information; such receiving Party agrees to be responsible for any action of its Representatives that would amount to a breach of the confidentiality obligations contained herein if such Representative were the receiving Party and (B) Service Provider shall be permitted to disclose (1) the Confidential Information to Service Provider's Representatives (and such parties shall be permitted to further disclose) to the extent reasonably necessary (as determined by Service Provider with Due Care) to perform the Services but Service Provider agrees to be responsible for any action of any Service Provider Representatives that would amount to a breach of the

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confidentiality obligations contained herein if such Service Provider Representative was the receiving Party and (2) the relevant portions of this Agreement, (including the Power of Attorney) to any title

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company or any other party that requires, as part of Service Provider's performance of the Services, evidence of Service Provider's authority to perform its obligations under this Agreement or to delegate the same to Service Provider Representative; provided that, in the case of the foregoing <u>clause (A)</u>, such persons are informed of the confidential nature of the information. As used herein, "**Regulatory Authority**" means all local, state and federal regulatory authorities, including the Consumer Financial Protection Bureau, that currently has, or may in the future have, jurisdiction or exercising regulatory or similar oversight with respect to any of the activities contemplated by this Agreement or to Owner, Owner's affiliates or Service Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Parties agree that the disclosing Party owns all rights, title and interest in and to its Confidential Information and any and all modifications to such Confidential Information, and that the Party receiving the Confidential Information will not reverse-engineer any software or other materials embodying the Confidential Information. The Parties acknowledge that Confidential Information is being provided for limited use internally, and the receiving Party agrees to use the Confidential Information only in accordance with the terms and conditions of this Agreement and in furtherance of the Services. Except as expressly provided in this Agreement, no right or license whatsoever is granted with respect to the Confidential Information or otherwise. Notwithstanding anything to the contrary contained herein, Owner shall own all Confidential Information with respect to the Properties (which, for the avoidance of doubt, shall not include any Confidential Information relating to Service Provider or any Service Provider Indemnitee), and Owner, subject to compliance with the provisions of <u>Section</u> <u>7(i)(vi)</u>, shall be free to disclose such Confidential Information to third parties in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Following termination of this Agreement, upon the request of the disclosing Party, the non-disclosing Party will, promptly after receiving a written request by the disclosing Party, destroy all Confidential Information furnished to it and/or any of its Representatives by or on behalf of the disclosing Party. Except to the extent a Party is advised by legal counsel that such destruction is prohibited by applicable law, the non- disclosing Party and its Representatives will also destroy all written material, memoranda, notes, copies, excerpts and other writings or recordings whatsoever prepared by the non- disclosing Party and/or its Representatives based upon, containing or otherwise reflecting any Confidential Information; provided, however, that neither the non-disclosing Party nor any of its Representatives shall be obligated to return or destroy Confidential Information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent it has been electronically archived by any such Party in accordance with its automated security and/or disaster recovery procedures as in effect from time to time or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent required by law or their respective internal record retention policies for legal, compliance or regulatory purposes; provided that any such Confidential Information so retained shall remain subject to the confidentiality provisions contained herein for (x) with respect to Confidential Information pertaining to Service Provider's, any Third-Party Service Provider's business information or operations, for two (2) years

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following the date on which Service Provider is no longer providing the types of services covered by this Agreement for any property owned by Owner or its affiliates and (y) with respect to all other Confidential Information not covered in subclause (x) hereof, one (1) year following the date on which Service Provider is no longer providing the types of services covered by

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this Agreement for any property owned by Owner or its affiliates, provided, however, notwithstanding the foregoing, Owner may not, without the prior written consent of the relevant Service Provider Owner (as defined below) (which consent may be granted or withheld in such Service Provider Owner's sole discretion), make any announcement suggesting that Owner is working with, or in a contractual relationship with, any person or entity that Owner knows to be a Service Provider Owner unless a separate written agreement exists between such Service Provider Owner and Owner or its affiliates. At the request of the disclosing Party made at the time of its request for the return and/or destruction of Confidential Information, the return and/or destruction of materials in accordance with the foregoing shall be confirmed to the disclosing Party in writing by an authorized officer of the non-disclosing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Owner has informed Service Provider of the applicability of United States federal and state securities laws to the use of material, non-public information, specifically as it relates to trading in securities of VineBrook Homes Trust, Inc., the indirect parent of Owner, and Service Provider agrees to comply, shall inform all Service Provider Parties and use commercially reasonable efforts to cause Service Provider Parties to comply, with such rules and related regulations in all material respects and the VineBrook Homes Trust, Inc. insider trading policy, which was provided to Asset Manager prior to its execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)In addition to the requirements of this <u>Section 7(i)</u>, each Party agrees that it shall obtain, use, retain and share information concerning tenants of each Property and prospective tenants of any Property, including nonpublic personal information as defined under the Gramm-Leach-Bliley Act of 1999 and its implementing regulations, including all nonpublic personal information of or related to customers or consumers of either Party, including but not limited to names, addresses, telephone numbers, account numbers, customer lists, credit scores, and account, financial, transaction information, consumer reports and information derived from consumer reports, that is subject to protection from publication under applicable laws ("**Customer Information**"), in strict compliance with all applicable state and federal laws and regulations concerning the privacy and confidentiality of such information, including the requirements of the federal Gramm-Leach-Bliley Act of 1999 and its implementing regulations and Owner's Privacy Notice, in connection with this Agreement. Service Provider agrees that it will not disclose or use any Customer Information, including any Customer Information relating to tenants of each Property and prospective tenants of any Property other than to carry out the purposes for which such information has been disclosed to it hereunder, provided that Service Provider shall be permitted to disclose Customer Information to Service Provider's Representatives to the extent reasonably necessary (as determined by Service Provider with Due Care) to the performance of the Services. Service Provider agrees that Owner owns all rights, title and interest in and to the Customer Information, including any Customer Information relating to tenants of each Property and prospective tenants of any Property. Further, Service Provider agrees that it will not disclose to Owner any Customer Information that contains consumer credit information regarding a natural person or other information that would be subject to

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applicable privacy laws or restriction on disclosure. Service Provider hereby agrees to comply with all applicable laws and regulations related

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to consumer protection and the Data Processing Addendum agreed to by the Parties, attached hereto as <u>Exhibit K</u> and incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Neither Party nor any of their respective affiliates shall issue any press releases or otherwise make any public statements with respect to the other Party, any Service Provider, Owner, or any of their respective affiliates, or the transactions contemplated by this Agreement, including, without limitation, making reference to or using the name of the other Party, any Service Provider Owner, or any of their respective affiliates, under any circumstance, without the prior written consent of such Service Provider, such Service Provider Owner, or Owner, as applicable, which consent may be granted or withheld in such Service Provider's, Service Provider Owner's or Owner's sole discretion, as applicable, except as required by applicable law, rule or regulation, including the regulations of the SEC. The Parties agree that Owner and its affiliates may make such disclosures as are required by them by the regulations of the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Business Days</u>. As used herein, the term "**Business Day(s)**" means any day other than a Saturday or a Sunday, that is neither a legal holiday nor a day on which banking institutions are generally authorized or required by law to close in Dallas, Texas or New York, New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)<u>Ratification</u>. All actions taken or services provided by Service Provider on behalf of and in the name of Owner prior to the Effective Date of this Agreement (including the incurrence of costs as authorized by this Agreement or otherwise), in connection with those certain transactions set forth on <u>Schedule 7(k)</u> attached hereto and that would be permitted under this terms of this Agreement and were taken in furtherance of the Services to be provided hereunder, be, and hereby are, authorized, approved, ratified and confirmed in all respects by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Limitation of Liability</u>. OTHER THAN AS THE RESULT OF SERVICE PROVIDER'S OR OWNER'S BAD FAITH, GROSS NEGLIGENCE, FRAUD, ILLEGAL ACTIVITY, OR WILLFUL MISCONDUCT, IN NO EVENT SHALL OWNER OR SERVICE PROVIDER BE LIABLE TO THE OTHER FOR SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL LOSS OR DAMAGE OF ANY KIND WHATSOEVER (INCLUDING BUT NOT LIMITED TO LOST PROFITS), ARISING OUT OF THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE LIKELIHOOD OF SUCH LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF ACTION, EXCEPT TO THE EXTENT OWED TO THIRD PARTIES. FURTHER, NO DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE, BENEFICIARY, MANAGER OR AGENT IN OR OF OWNER OR SERVICE PROVIDER (AND NO OFFICER, DIRECTOR, EMPLOYEE, AGENT, MANAGER OR TRUSTEE OF ANY OF THE FOREGOING) WILL BE PERSONALLY LIABLE FOR THE PERFORMANCE OF OWNER'S OR SERVICE PROVIDER'S, AS APPLICABLE, OBLIGATIONS UNDER THIS AGREEMENT. OWNER AGREES TO LOOK SOLELY TO SERVICE PROVIDER AND NOT TO ANY DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE,

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BENEFICIARY, MANAGER OR AGENT IN OR OF SERVICE PROVIDER TO ENFORCE ITS RIGHTS HEREUNDER. SERVICE PROVIDER AGREES TO LOOK SOLELY TO OWNER AND NOT TO ANY DIRECT OR INDIRECT PARTNER, SHAREHOLDER, MEMBER, OFFICER, DIRECTOR, EMPLOYEE, AFFILIATE,

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BENEFICIARY, MANAGER OR AGENT IN OR OF OWNER TO ENFORCE SERVICE PROVIDER'S RIGHTS HEREUNDER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Exculpation</u>. Notwithstanding anything herein to the contrary (but provided in each case that neither Service Provider, nor anyone one acting at its direction or on its behalf, nor any of their directors, agents (including any third-party to whom Service Provider has delegated the performance of any of its duties or obligations under this Agreement), employees or officers (collectively with Service Provider, the "**Service Provider Parties**"), has directed any party to undertake the conduct at issue, or acted in an illegal manner or acted with fraud, bad faith, gross negligence or willful misconduct in connection therewith nor materially breached this Agreement beyond any applicable notice and/or cure periods), Service Provider assumes no liability and shall not be liable for: (a) any acts or omissions of (i) Owner or any previous or subsequent owners of each Property unless Service Provider or any of the Service Provider Parties, or any affiliate of Service Provider, was a previous or subsequent owner of the applicable Property when such act or omission occurred, (ii) any previous or subsequent development manager or other agents of Owner or any previous owner of each Property, other than any Servicer Provider Party, (iii) any third parties who were engaged by or on behalf of Owner or any previous owner of each Property, or subsequent development manager, including, without limitation, any brokers, service providers, contractors, subcontractors, vendors or other providers, other than Service Provider or any Service Provider Party, or (iv) any other third party not engaged by Service Provider unless such party is a Service Provider Party; (b) intentionally omitted; (c) any liability for violations of environmental laws; (d) the financial performance of each Property; (e) compliance by each Property, any building thereon or any equipment therein with the requirements of any applicable laws (including the Americans with Disabilities Act or similar state or local law); (f) any fees or costs associated with the remediation, maintenance, repair or replacement of a Property to address any inspection items noted on a inspections requested by the state, county, city or municipality including, but are not limited to, code compliance inspections, subsidized housing inspections and rental license inspections (collectively, "**City Requested Inspections**") or otherwise required by a city or municipality in which a Property sits; and/or (g) any fines, fees or costs assessed by any City Requested Inspection of a Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Additional Rights of Service Provider</u>. Notwithstanding anything in this Agreement to the contrary, Owner shall not, directly or indirectly, make or take any of the following actions or decisions without the express prior written approval of Service Provider (which consent shall not to be unreasonably withheld, conditioned or delayed), in each instance, other than with respect to clause (e) below, which shall only require prior written notice to Service Provider:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)incur any indebtedness that would require disclosure of Service Provider's or its affiliates' direct or indirect beneficial owners (each, a "**Service Provider Owner**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)enter into any securitization or capital markets transaction that would subject Service Provider to risk retention requirements or require public disclosure concerning Service Provider, its affiliates or any Service Provider Owner, aside from the public disclosure required by

- 35 -

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applicable law, rule or regulation regarding Service Provider and that Service Provider is the service provider of the Properties in the securitization or capital markets transaction;

- 36 -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)enter into any litigation settlement with any regulatory or licensing authority that could reasonably be known by Owner to cause a material adverse effect to Service Provider and/or regulatory oversight or licensing obligations on Service Provider, its affiliates or any Service Provider Owner, that differ from Service Provider's obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)engage in any action(s) that would require Service Provider, its affiliates or any Service Provider Owner to register with the SEC (as a registered investment adviser, broker dealer or otherwise) or any other regulatory body;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)pursue or otherwise commence an initial public offering or other listing of securities on a nationally recognized exchange, merger or combination transaction with respect to Owner to the extent such transaction would, to Owner's actual knowledge, impose, on Service Provider, its affiliates or any Service Provider Owner, any filing or disclosure obligation with a state or federal regulatory agency; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)commit to do any of the foregoing in clauses "(a)" through "(d)".

[*Remainder of page intentionally left blank*.]

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the Effective Date.

---

| |
|:---|
| **<u>OWNER</u>:** |
| **VINEBROOK HOMES OPERATING PARTNERSHIP, L.P.**, <br>a Delaware limited partnership<br>partnership |

---

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ John Good&nbsp;&nbsp;&nbsp;&nbsp;</u> Name: John Good

Title: Authorized Signatory

*[Signatures continue on following page]*

*Signature Page to Real Estate Development Services Agreement*

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**<u>SERVICE PROVIDER</u>:**

**EVERGREEN DEVELOPMENT SERVICES, LLC**, a Delaware limited liability company

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ William Lehner&nbsp;&nbsp;&nbsp;&nbsp;</u> Name: William Lehner

Title:&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatory

*[End of signatures]*

*Signature Page to Real Estate Development Services Agreement*

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**<u>EXHIBIT A</u> INTENTIONALLY OMITTED**

*Exhibit A to Real Estate Development Services Agreement*

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**<u>EXHIBIT B</u>**

**FORM OF LIMITED POWER OF ATTORNEY**

(Intentionally Omitted.)

*Exhibit B to Real Estate Development Services Agreement*

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**<u>EXHIBIT C</u>**

**DESIGNEES OF OWNER AUTHORIZED TO APPROVE ACQUISITIONS**

[Reserved]

*Exhibit C to Real Estate Development Services Agreement*

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**<u>EXHIBIT D</u>**

**PERMITTED ACQUISITION EXPENSES**

(Intentionally Omitted.)

*Exhibit D to Real Estate Development Services Agreement*

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**<u>EXHIBIT E</u> INTENTIONALLY OMITTED**

*Exhibit E to Real Estate Development Services Agreement*

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**<u>EXHIBIT F</u> ACQUIRED PROPERTY FILE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Exhibit F to Real Estate Development Services Agreement*

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**<u>EXHIBIT G</u> RENOVATION STANDARDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Exhibit G to Real Estate Development Services Agreement*

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**<u>EXHIBIT H</u>**

**PERMITTED THIRD-PARTY SERVICE PROVIDER CATEGORIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Exhibit H to Real Estate Development Services Agreement*

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**<u>EXHIBIT I</u> INTENTIONALLY OMITTED**

*Exhibit I to Real Estate Development Services Agreement*

------

**<u>EXHIBIT J</u> ACQUISITION PROCESS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Exhibit J to Real Estate Development Services Agreement*

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**<u>EXHIBIT K</u>**

**DATA PROCESSING ADDENDUM**

<br> (Intentionally Omitted.)

*Exhibit K to Real Estate Development Services Agreement*

------

**<u>SCHEDULE 7(K)</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(Intentionally Omitted.)

*Schedule 7 (k) to Real Estate Development Services Agreement*

## Exhibit 10.4

**EXECUTION VERSION**

**<u>LETTER AGREEMENT</u>**

This Letter Agreement ("**Agreement**") is made and entered into as of June 10, 2025 ("**Eﬀective Date**") by and among Evergreen Residential Management, LLC, a Delaware limited liability company ("**Manager**"), Evergreen Development Services, LLC, a Delaware limited liability company ("**Service Provider**") and VineBrook Homes Operating Partnership, L.P., a Delaware limited partnership ("**VineBrook**", and, together with Manager and Service Provider, each individually, a "**Party**" and, collectively, the "**Parties**"). Capitalized terms used in this Agreement and not deﬁned herein shall, except as otherwise noted, have the meanings assigned to such terms in the Property Management Agreement (as deﬁned below).

**WHEREAS**, certain aﬃliates of VineBrook (individually or collectively, each, an "**Owner**") have engaged, or will engage, Manager or an aﬃliate of Manager, pursuant to certain property management agreements (individually or collectively, as the same may be, in accordance with the terms thereof, amended, amended and restated, modiﬁed or supplemented from time to time, each, a "**Property Management Agreement**") with respect to providing property management services to certain properties owned by such Owner;

**WHEREAS**, Vinebrook has engaged, or will engage, Service Provider pursuant that certain development services agreement (as the same may be , in accordance with the terms thereof, amended, amended and restated, modiﬁed or supplemented from time to time, the "**Development Services Agreement**") with respect to providing certain acquisition and project administration services to certain properties owned indirectly by Vinebrook;

**WHEREAS**, Owner has engaged, or will engage, Evergreen Asset Management, LLC, a Delaware limited liability company ("**Asset Manager**"), to perform certain asset management services pursuant to certain asset management agreements (individually or collectively, as the same may be, in accordance with the terms thereof, amended, amended and restated, modiﬁed or supplemented from time to time, each, an "**Asset Management Agreement**"); and

**WHEREAS**, the Parties desire to enter into this Agreement in order to clarify certain understandings between Owner, Manager and Service Provider.

**NOW, THEREFORE**, in consideration of the mutual covenants herein set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**<u>Definitions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a."**At Will Termination Fee**" shall mean, (i) in the event that the termination is effective prior to the date which is the twenty-first (21<sup>st</sup>) month anniversary of the date that the final Legacy Property became subject to a Property Management Agreement (the "**PMA Effective Date**"): an amount equal to the product of (a) the Management Compensation paid to Manager in the month immediately preceding termination of the applicable Property Management Agreement, divided by thirty (30), multiplied by (b) the positive difference between Seven Hundred Twenty (720) and the number of days elapsed since the PMA Effective Date or (ii) in the event that the termination is effective following

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the twenty-first (21<sup>st</sup>) month anniversary of the PMA Effective Date: an amount equal to the sum of Two-Hundred Fifty Dollars ($250.00) per Property then covered by the relevant Property Management Agreement plus the product of (a) the Management Compensation paid to Manager in the month immediately preceding termination of the Property Management Agreement, divided by thirty (30), and multiplied by (b) ninety (90).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b."**CoC Transfer**" shall mean any transfer to a bona fide third party of the ownership of all or substantially all of the Properties (as defined in the Property Management Agreement), whether through a sale of one or more individual Properties or a sale of all or substantially all of the direct or indirect equity interests in Owner or Owner's subsidiaries, whether in one transaction, or a series of related transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c."**Legacy Properties**" shall mean those certain properties which are, as of the date hereof, owned directly or indirectly by an Owner, but not subject to a Property Management Agreement, as further identified on the Legacy Property Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d."**Legacy Property Schedule**" shall mean the schedule attached hereto as <u>Exhibit A</u>, as the same may be updated in accordance with the terms hereof, identifying each Legacy Property, and further identifying (i) the current Owner of such Legacy Property, (ii) the anticipated date or range of dates such Legacy Property will be submitted by Owner to be included in a Property Management Agreement (the "**Submission Date**") and (iii) the existing or new Property Management Agreement such Legacy Property is anticipated to be submitted to.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e."**Measurement Period**" shall mean each consecutive twelve (12) month period within the first thirty-six (36) months after the Effective Date of the Development Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f."**Measurement Period Service Fee**" shall mean a fee, for any applicable Measurement Period, equal to two percent (2%) of the positive difference between the Minimum Spend Amount in the applicable Measurement Period and the Total Acquisition Spend during the applicable Measurement Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.**"Runoff Date**" shall mean the forty-second (42<sup>nd</sup>) month following the Effective Date of the Development Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h."**Transition Consideration**" shall mean (x) an amount equal to $3,500,000 (the "**Transition Fee**"), and (y) $5,000,000 worth of operating partner units in VineBrook (the "**Transition Shares**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**<u>At Will Termination Fee</u>**. The Parties agree that the Owner, under Section 5(b)(v) of any Property Management Agreement, may terminate the Property Management Agreement, for any reason or no reason, as long as Owner provides no less than ninety (90) days advance notice of the termination (other than a termination in connection with a CoC Transfer which shall require no less than thirty (30) days advance notice) and pays the applicable At Will Termination Fee on or before the termination date. Notwithstanding anything to the contrary

2

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contained herein, the At Will Termination Fee shall not be owed, in full or in part, if (a) the termination occurs in conjunction with the sale (in a transaction handled by Asset Manager or any of its affiliates under

3

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an Asset Management Agreement) of all, or substantially all, of the properties qualifying as "Properties" under the relevant Property Management Agreement and Asset Manager (or an entity designated by Asset Manager) has received the Disposition Fee (as defined in the Asset Management Agreement) in connection with such sale or (b) at the time of the termination, there are no properties qualifying as "Properties" as defined under the relevant Property Management Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**<u>Legacy Properties</u>**. As long as the relevant Property Management Agreement is in force an effect, VineBrook shall use good faith efforts to cause the applicable Owner to submit Legacy Properties to be included in a Property Management Agreement in accordance with the Legacy Property Schedule and the terms and conditions of the applicable Property Management Agreement. The Parties acknowledge and agree that the initial Legacy Property Schedule attached hereto represents the Parties' good faith estimate of the Submission Dates and other information contained therein, and accordingly, the same may be updated from time to time upon the mutual written consent of the Parties (which may be via email), such consent not to be unreasonably withheld, conditioned or delayed. Promptly following any update to the Legacy Property Schedule, the Parties shall execute a written amendment hereto replacing <u>Exhibit A</u> with such updated Legacy Property Schedule. In the event that any Property included in a Property Management Agreement is not directly owned by the applicable Owner counterparty thereto, VineBrook acknowledges and agrees that any action, waiver, consent or approval made by such Owner under the Property Management Agreement, shall be deemed to be made by any subsidiary of such Owner who directly owns such Property (each, a "<u>Subsidiary</u>") and Manager can conclusively rely on same without any further need to obtain any such action, waiver, consent or approval from any Subsidiary or any owner, affiliate, director, member, partner, manager or shareholder of such Subsidiary. To the extent reasonably requested by Manager, Owner shall cause such Subsidiary to execute a Power of Attorney, in the form of the Power of Attorney that is an exhibit to the relevant Property Management Agreement, to evidence Manager's right to perform the Services under the Property Management Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**<u>Transition Consideration</u>**. VineBrook shall deliver the Transition Consideration to Manager in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)On the date the first property becomes a Property under any Property Management Agreement, fifty percent (50%) of the Transition Fee shall be delivered to an account designated by Manager, and the remaining fifty percent (50%) shall be delivered to an account designated by Manager within forty-five (45) days of the payment of the first fifty percent (50%).

Any portion of the Transition Fee delivered to Manager shall be non-refundable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)subject to compliance with applicable securities laws and execution and delivery by Manager of a subscription agreement containing customary representations and other customary documents reasonably requested by VineBrook on the Issuance Date, issue in book- entry form the Transition Shares to Manager upon the earlier to occur of (x) December 31, 2025 or (y) the date that all Legacy Properties are transitioned to management under a Property Management Agreement (the earlier of such dates the "**Issuance Date**").

4

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5.**<u>DSA Service Fee</u>**.&nbsp;&nbsp;&nbsp;&nbsp;In this Section 5, all capitalized terms not deﬁned in this

Agreement shall, except as otherwise noted, have the meanings assigned to such terms in the

5

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Development Services Agreement. Service Provider shall be entitled to a Measurement Period Service Fee for any Measurement Period in which (i) Service Provider presents VineBrook with Investment Memos for Target Properties (as such terms are defined in the Development Services Agreement) similar in type and quality to those properties listed on Schedule 7(K) of the Development Services Agreement and with an aggregate fair market value of at least Six Hundred Million Dollars ($600,000,000) (the "**Minimum Presentation Amount**"), and (ii) Owner (directly or through one or more of its subsidiaries on an aggregated basis) fails to acquire Acquired Properties (as defined in the Development Services Agreement) with an aggregate purchase price (including all forms of consideration paid to the applicable seller for such Acquired Properties, whether cash, equity, assumed debt, or other measures of value) (collectively "**Total Acquisition Spend**") of at least the lesser of (1) Two-Hundred Fifty Million Dollars ($250,000,000) and (2) forty-one and seven tenths percent (41.7%) of the aggregate fair value of the Target Properties (as defined in the Development Services Agreement) presented by Service Provider during the relevant Measurement Period (the lesser of (1) and (2) the "**Minimum Spend Amount**"). If VineBrook (directly or through one or more of its subsidiaries on an aggregated basis), in any Measurement Period, has a Total Acquisition Spend over the Minimum Spend Amount (the "**Additional Amount**") such Additional Amount may be used to satisfy the Minimum Spend Amount for any subsequent Measurement Period. If, by the Runoff Date, (x) Service Provider has presented VineBrook with Investment Memos for Target Properties similar in type and quality to those properties listed on Schedule 7(K) of the Development Services Agreement and with an aggregate fair market value of at least One Billion Eight Hundred Million Dollars ($1,800,000,000) and (y) VineBrook has failed to acquire (directly or through one or more of its subsidiaries on an aggregated basis) Acquired Properties with an aggregate Total Acquisition Spend equal to at least One Billion Two Hundred Million Dollars ($1,200,000,000) ("**Threshold Amount**"), then Service Provider shall be entitled to a fee (the "**Runoff Date Service Fee**") equal to one percent (1%) of the positive difference between the Threshold Amount and the greater of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate Total Acquisition Spend through the Runoff Date and (b) $750,000,000.00. VineBrook shall pay any required Measurement Period Service Fee or Runoff Date Service Fee within thirty (30) calendar days written demand by Service Provider. Service Provider's right to any Measurement Period Service Fee or Runoff Date Service Fee shall terminate at the effective date of the termination of the Development Services Agreement such that any fees owed under the Development Services Agreement after the termination date shall not be earned by Service Provider or due or owing from Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.**<u>Board of Managers</u>**. In connection with the transactions contemplated by the Development Services Agreement, the Property Management Agreements and the Asset Management Agreements, the board of managers of Evergreen Residential Holdings, LLC, ("**Holdings**") an indirect owner of Service Provider, Manager and Asset Manager, shall appoint to the Holdings board of managers (x) at least one (1) additional manager with property management expertise and (y) at least one (1) additional manager with real estate investment expertise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.**<u>Conflicts</u>**. In the event of any inconsistency or conflict between the terms of this Agreement and the Property Management Agreement, the terms of this Agreement shall prevail and control.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.**<u>Severability</u>**. If any provision of this Agreement is invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.**<u>Counterparts</u>**. This Agreement may be executed by facsimile or email signatures (including in portable document format (PDF), through DocuSign, or in or through any other electronic format) and in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument binding on all parties hereto, notwithstanding that all the parties have not signed the same counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.**<u>Governing Law</u>**. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas, without regard to principles of conflicts of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.**<u>Entire Agreement</u>**. This Agreement (together, to the extent applicable, with the Property Management Agreement, the Development Services Agreement, and the Asset Management Agreement) constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all other prior agreements, letters and understandings, both written and verbal, among the parties hereto with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.**<u>Successors and Assigns</u>**. This Agreement may not be assigned by any Party without the prior written consent of the other Parties hereto; provided, that Manager and Service Provider may assign this Agreement to an affiliate of Manager or Service Provider without the consent of VineBrook, but upon thirty (30) days' prior written notice to VineBrook, and VineBrook may without the consent of Manager or Service Provider, but upon thirty (30) days' prior written notice to Manager and Service Provider, assign this Agreement to a NexPoint Controlled Transferee. The provisions hereof shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties hereto and the predecessors shall not be relieved of their liability for any of their obligations under this Agreement arising prior to the assignment of the Agreement. Assignment of this Agreement, however, shall not serve as an assignment of any Property Management Agreement or the Development Services Agreement, nor impact the Parties rights under those agreements. Notwithstanding anything to the contrary contained herein, the named "VineBrook" entity herein as of the Effective Date shall remain liable for all monetary obligations under <u>Section 2</u> and <u>Section 5</u> hereof notwithstanding any assignment of this Agreement by VineBrook.

[Signature pages follow]

8

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If the above correctly reflects your understanding and agreement with respect to the foregoing matters, please so confirm by signing the enclosed copy of this Agreement in the space provided below.

Very truly yours,

**<u>MANAGER</u>:**

**EVERGREEN RESIDENTIAL**

**MANAGEMENT, LLC**, a Delaware limited liability company

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ William Lehner</u> 

Name: William Lehner

Title: Authorized Signatory

**<u>SERVICE PROVIDER</u>:**

**EVERGREEN DEVELOPMENT SERVICES, LLC**, a Delaware limited liability company

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ William Lehner&nbsp;&nbsp;&nbsp;&nbsp;</u> Name: William Lehner

Title:&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatory

*[Signatures continue on following page]*

*[Signature Page to Letter Agreement]*

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**<u>VINEBROOK</u>:**

**VINEBROOK HOMES OPERATING**

**PARTNERSHIP, L.P.,** a Delaware limited partnership

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ John Good&nbsp;&nbsp;&nbsp;&nbsp;</u> Name: John Good

Title: Authorized Signatory

*[End of signatures]*

&nbsp;&nbsp;&nbsp;&nbsp;

*[Signature Page to Letter Agreement]*

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**<u>Exhibit A</u>**

**Legacy Property Schedule**

(Intentionally Omitted.)

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, John Good, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of VineBrook Homes Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| Date: August 14, 2025 | |
| | /s/ John Good |
| | John Good |
| | President and Chief Executive Officer |
| | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Paul Richards, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of VineBrook Homes Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| Date: August 14, 2025 | |
| | /s/ Paul Richards |
| | Paul Richards |
| | Chief Financial Officer, Treasurer and Assistant Secretary |
| | (Principal Financial Officer) |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Quarterly Report on Form 10-Q of VineBrook Homes Trust, Inc. (the "Company") for the period ending June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, John Good, Chief Executive Officer of the Company, and Paul Richards, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | |
|:---|:---|
| Dated: August 14, 2025 | /s/ John Good |
| | John Good<br>President and Chief Executive Officer<br>(Principal Executive Officer) |
| Dated: August 14, 2025 | /s/ Paul Richards |
| | Paul Richards<br>Chief Financial Officer, Treasurer and Assistant Secretary<br>(Principal Financial Officer) |

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