Document:

Exhibit 10.3

 

 

NEW YORK LIFE INSURANCE COMPANY

51 MADISON AVENUE

NEW YORK, NEW YORK 10010

 

 

August 26, 2013

 

TS Talison Row, LLC

19950 West Country Club Drive, Suite 800

Aventura, Florida 33180

 

Trade Street Operating Partnership, LP

19950 West Country Club Drive, Suite 800

Aventura, Florida 33180

 

Trade Street Residential, Inc.

19950 West Country Club Drive, Suite 800

Aventura, Florida 33180

 

		Re:	Loan No. 374-0492 (“Loan") from New
York Life Insurance Company ("Lender") to TS Talison Row, LLC, a Delaware limited liability company ("Borrower"),
and the note ("Note") and Mortgage ("Mortgage") executed in connection therewith

 

Ladies and Gentlemen:

 

In connection with the Loan and in accordance
with your request, this is to advise you that:

 

 

 

		1.	Definitions. All capitalized terms used in this letter and not defined herein shall have
the respective meanings ascribed to them in the Mortgage. In addition, the following terms shall have the meanings ascribed below:

 

			"Affiliate" is defined as any person or entity that controls, is under common
control with, or is controlled by the applicable entity including any proposed transferee.

 

			"Control" is defined as the power to direct or cause the direction of the management
and policies of the applicable entity through ownership of voting securities or beneficial interests, by contract or otherwise,
and persons or entities having control include any general partner, managing member, manager or executive officer of the applicable
entity.

 

“Debt Coverage Ratio”
shall mean, for any period, a fraction, the numerator of which shall equal the projected net operating income of the Secured Property
for such period less a replacement reserve amount equal to $250 per unit per year, and the denominator of which shall equal the
aggregate of the principal and interest for such period utilizing a thirty (30) year amortization schedule. Such calculation shall
be as determined by Lender.

 

			“Environmental Indemnity Agreement” shall mean that certain Environmental Indemnity
Agreement executed by Borrower and Limited Guarantor in favor of Lender dated of even date herewith, as amended from time to time.

 

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“Guaranty”
shall mean that certain Guaranty (Non-Recourse Exceptions) executed by Limited Guarantor in favor of Lender dated of even date
herewith, as amended from time to time.

 

“Limited Guarantor”
shall mean collectively, Trade Street Operating Partnership, LP and Trade Street Residential, Inc.

 

“Reserve Deposit Agreement”
shall mean that certain Reserve Deposit Agreement dated of even date herewith between Borrower and Lender, as amended from time
to time.

 

		2.	Monthly Escrows for Taxes and Insurance Premiums. Lender agrees to waive the obligations
and requirements imposed upon Borrower by Section 1.04 (Escrow Deposits) of the Mortgage for the payment to Lender each month of
tax and insurance deposits on the condition that:

 

		(a)	Borrower pays all real estate taxes, assessments and similar charges with respect to the Secured
Property as they become due and before they become delinquent,

 

		(b)	Borrower pays all insurance premiums on a timely basis before same are due, provided that at no
time shall there be a lapse in coverage of any policy or policies required under the Mortgage,

 

		(c)	Borrower promptly submits to Lender’s Real Estate Department official receipts evidencing
the timely payment of such real estate taxes, assessments and similar charges and receipts evidencing the timely payment of insurance
premiums, and

 

		(d)	the Debt Coverage Ratio, as determined by Lender, is at least 1.15.

 

This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

* * * * *

 

		3.	Borrower Financial Statements. Lender agrees to allow Borrower to submit annual and quarterly
financial statements prepared and certified by an officer or other authorized party of Borrower in lieu of requiring that such
annual and quarterly financial statements be prepared and certified by an independent certified public accountant as required by
Section 1.06(A) of the Mortgage, provided that Borrower furnishes to Lender the annual financial statements required by such Section
within ninety (90) days after the end of each fiscal year of Borrower and the quarterly financial statements within forty-five
(45) days after the end of each fiscal quarter of Borrower. Such certification by an officer or other authorized party of Borrower
must specifically state that the financial statements being submitted were prepared in accordance with generally accepted accounting
principles relating to real estate consistently applied and that the information contained therein is true and correct and accurately
represents the financial position of the Secured Property.

 

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This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

*****

 

		4.	Guarantor Financial Statements. Lender agrees to allow Limited Guarantor to submit annual
and quarterly financial statements prepared and certified by an officer or other authorized party of Limited Guarantor in lieu
of requiring that such annual and quarterly financial statements be prepared and certified by an independent certified public accountant
as required by Section 1.11 of the Guaranty, provided that Limited Guarantor furnishes to Lender the annual financial statements
required by such Section within ninety (90) days after the end of each fiscal year of Limited Guarantor and the quarterly financial
statements within forty-five (45) days after the end of each fiscal quarter of Limited Guarantor. Such certification by an officer
or other authorized party of Limited Guarantor must specifically state that the financial statements being submitted were prepared
in accordance with generally accepted accounting principles consistently applied and that the information contained therein is
true and correct and accurately represents the financial position of the Limited Guarantor.

 

This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC, Trade Street Operating
Partnership, LP, and Trade Street Residential, Inc. and shall not apply to any successor or assignee of TS Talison Row, LLC’s
interest in the Secured Property or to any successor or assignee of Trade Street Operating Partnership, LP and Trade Street Residential,
Inc. If either of the events described in clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall
be null and void.

 

 

* * * * * *

 

		5.	One Time Right of Transfer

 

		5.1	Transfer Conditions. Notwithstanding the provisions of Section 1.11 of the Mortgage, Lender
agrees to allow Borrower to transfer or sell the entire Secured Property one time, and one time only, subject to Lender’s
prior written consent, provided that Lender receives at least thirty (30) days prior written notice of the proposed sale or transfer
together with the Required Documentation (as hereinafter defined) and that at the time of the sale or transfer:

 

		(a)	no Event of Default has occurred under any of the Loan Instruments and has continued beyond the
applicable cure period, if any, and no event has occurred which, with the giving of notice or lapse of time, or both, would constitute
such an Event of Default;

 

		(b)	Lender is paid a fee equal to one percent (1%) of the then outstanding principal balance of the
Loan;

 

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		(c)	the proposed transferee and/or its principal(s) has a minimum net worth of $100,000,000.00;

 

		(d)	the loan to value ratio for the Loan, as determined by Lender, is not greater than 65% and the
Debt Coverage Ratio is not less than 1.60;

 

		(e)	the proposed transferee and/or its principal(s) has experience, acceptable to Lender, in owning
and operating properties similar to the Secured Property and, at the time of transfer, owns and/or manages at least 2,000 apartment
units;

 

		(f)	the proposed transferee and its general partner(s), sole member or managing member(s), if any,
each is a bankruptcy remote, single purpose entity, the sole real property and material assets of which will be the Secured Property
(or in the case of a general partner, sole member or managing member, its interest in the proposed transferee) and which satisfies
Lender’s requirements for an SPE, bankruptcy remote Borrower, including, without limitation, Lender’s requirements
with respect to an independent director; if the proposed transferee is a single member limited liability company, it must be organized
in Delaware;

 

		(g)	the proposed transferee assumes all obligations of
Borrower under the Loan Instruments (except side letters or other agreements, if any, which are personal to and intended to benefit
only the original Borrower), pursuant to an assumption agreement in form and content acceptable to Lender, which includes representations
and warranties substantially equivalent to those set forth in the Loan Instruments (exclusive of any modifications thereto set
forth in this or other side letters, if any, which are "personal" to the original Borrower) relating to compliance with
OFAC or other statutes or regulations covered by Section 2.08 of the Mortgage and any similar regulations or statutes and the
Employee Retirement Income Security Act of 1974, as same may have been amended, and with respect to being an SPE, bankruptcy remote
borrower;

 

		(h)	the proposed transferee executes and/or delivers all
documents evidencing or relating to the assumption required by Lender, including, but not limited to:

 

		(i)	an Environmental Indemnity Agreement in Lender’s then current form,

 

		(ii)	evidence of proper corporate (or other appropriate) authority,

 

		(iii)	an endorsement to Lender's title policy updating the effective date to the date of the transfer
with no additional title exceptions, reflecting the proposed transferee as the title holder, and otherwise in form and substance
acceptable to Lender,

 

		(iv)	new and amended financing statements (which shall be filed in the appropriate offices),

 

		(v)	the proposed transferee’s certification of its legal name, type of organization, federal
tax identification number, place of business, or if the proposed transferee has more than one place of business, its chief executive
office, its mailing address and its organizational identification number or certification that it does not have an organizational
identification number,

 

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		(vi)	a non-consolidation opinion in form and substance and from counsel acceptable to Lender, and

 

		(vii)	if the transferee is a single member Delaware LLC, then a Delaware Single Member LLC Opinion in
form and substance and from Delaware counsel acceptable to Lender;

 

		(i)	Neither the proposed transferee, nor any of its constituent
entities, nor any person or entity affiliated with either the proposed transferee or any of its constituent entities, not including,
if applicable, upper tier, passive fund investors that have no discretionary control over the decisions of the constituent owners,
and do not own or control more than 30% of the transferee borrower (i) has held an ownership interest in real property that was
collateral for any loan made by Lender and/or any of its affiliates (each a "NYL Loan") or any other loan that
was sold at foreclosure or similar sale or transferred by deed in lieu thereof or as to which a foreclosure or similar sale proceeding
was or is pending, (ii) has been in default, beyond any applicable notice and/or cure period, if any, under a NYL Loan as a result
of which the NYL Loan has been accelerated, (iii) in connection with a default under a NYL Loan, has entered into a modification,
forbearance or similar agreement; (iv) is presently or at any time has been the subject of any bankruptcy, reorganization, insolvency,
debtor-creditor or other similar proceeding, or made an assignment for the benefit of creditors, and/or (v) is a current or past
litigant, opposing Lender, in any lawsuit brought against or by Lender;

 

		(j)	Lender’s then current form of guaranty of the
Non-Recourse Exceptions and Environmental Indemnity Agreement are executed by one or more of the proposed transferee’s partner(s),
member(s), shareholder(s), principal(s) or other transferee affiliated persons or entities as shall be designated by Lender and
having a net worth satisfactory to Lender; and

 

		(k)	all costs and expenses incurred by Lender (including
legal fees) in connection with the transaction are paid by Borrower. Upon completion of the sale or transfer, Borrower shall provide
to Lender all of the documents associated with the sale or transfer as may be requested by Lender. At Lender’s sole option,
the Loan shall become immediately due and payable upon any other or further sale or transfer.

 

		5.2	Required Documentation. Borrower shall provide to Lender, at least thirty (30) days prior
to the proposed sale or transfer, all information requested by Lender in connection with such sale or transfer (the "Required
Documentation"), which may include, without limitation, (a) a copy of the fully executed purchase and sale agreement,
including all amendments thereto; (b) a description, including a chart, if appropriate, of the ownership structure of the proposed
transferee and each of its principals; (c) copies of the organizational documents of the proposed transferee, its constituent entities
and its principals; (d) a current financial statement for the proposed transferee and each of its principals, in sufficient detail
to permit a determination of net worth for each of such entities; and (e) two (2) bank references for the proposed transferee and
each of its principals. The Required Documentation shall also include a $10,000 non-refundable processing fee. If the transfer
is approved and subsequently completed, this fee will be applied toward the one percent (1%) fee required above.

 

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This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

* * * * * 

 

		6.	Permitted Transfers of Ownership Interests in Borrower. Notwithstanding the provisions
of Section 1.11 of the Mortgage, Lender agrees to allow, without Lender’s prior written consent, and without payment of a
fee, certain “Permitted Transfers of Ownership Interests” (as defined below) in Borrower and its constituent entities,
provided that Lender receives at least thirty (30) days prior written notice of the proposed transfer together with all supporting
documentation required by Lender, including but not limited to, a chart showing the proposed revised ownership structure of Borrower
and copies of the proposed modifications to any of the organizational documents of Borrower, its constituent entities and/or its
principals, and provided further that:

 

		(a)	at the time of such transfer:

 

		(i)	no Event of Default has occurred under any of the Loan Instruments and has continued beyond the
applicable cure period, if any, and no event has occurred which, with the giving of notice or lapse of time, or both, would constitute
such an Event of Default;

 

		(ii)	each of the Limited Guarantors reaffirms all of its obligations under the Environmental Indemnity
Agreement and under the guaranty of Non-Recourse Exceptions;

 

		(iii)	if requested by Lender, Borrower provides to Lender its representation and warranty, in form and
substance satisfactory to Lender, regarding the new ownership structure of Borrower and an opinion of counsel, acceptable to Lender,
from counsel acceptable to Lender, that the ownership structure of Borrower is as has been represented to Lender by Borrower and
as to such other matters related to the proposed transfer as Lender may reasonably require;

 

		(iv)	Borrower re-makes representations and warranties acceptable to Lender and substantially equivalent
to those set forth in the Loan Instruments (exclusive of any modifications thereto set forth in side letters, if any, which are
"personal" to the original Borrower) relating to compliance with OFAC or other statutes or regulations covered by Section
2.08 of the Mortgage and any similar regulations or statutes and the Employee Retirement Income Security Act of 1974, as same may
have been amended;

 

		(v)	the loan to value ratio for the Loan, as determined by Lender, is not
greater than 65% and the Debt Coverage Ratio for the Loan is not less than 1.50; and

 

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		(vi)	neither the proposed transferee, nor any of its constituent entities, nor any person or entity
affiliated with either the proposed transferee or any of its constituent entities (A) has held an ownership interest in real property
that was collateral for any loan made by Lender and/or any of its affiliates (each a "NYL Loan") or any other loan that
was sold at foreclosure or similar sale or transferred by deed in lieu thereof or as to which a foreclosure or similar sale proceeding
was or is pending, (B) has been in default, beyond the applicable cure period, if any, under a NYL Loan as a result of which the
NYL Loan has been accelerated, (C) in connection with a default under a NYL Loan, has entered into a modification, forbearance
or similar agreement; (D) is presently or at any time has been the subject of any bankruptcy, reorganization, insolvency, debtor-creditor
or other similar proceeding, or made an assignment for the benefit of creditors, and/or (E) is a current or past litigant, opposing
Lender, in any lawsuit brought against or by Lender; and

 

		(vii)	all costs and expenses incurred by Lender (including legal fees) in connection with the transaction
are paid by Borrower;

 

		(b)	immediately following the contemplated transfer:

 

		(i)	Trade Street Operating Partnership, LP, directly or indirectly, retains a minimum fifty-one percent
(51%) ownership interest in Borrower, and, by virtue of such ownership interest, controls and has the right to continue to control,
the management of Borrower and the Secured Property and is required by the Loan Instruments to maintain such ownership interest
and management rights. As used herein, the term “Permitted Transfers of Ownership Interests” shall mean transfers of
interests in entities that indirectly own or control Borrower, provided that at no time Trade Street Residential, Inc., owns less
than 51% of Trade Street Operating Partnership, LP and Trade Street Operating Partnership, LP, remains in compliance with the first
sentence of this paragraph;

 

		(c)	the proposed transfer does not have any adverse affect
on the bankruptcy remoteness of Borrower and/or its general partner(s), managing member(s) or sole member. Upon completion of
the transfer, Borrower shall provide to Lender all of the documents associated with the transfer as may be requested by Lender.

 

This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

		7.	Permitted Transfers of Certain Ownership Interests in Limited
Guarantor. Notwithstanding the provisions of Section 1.11 of the Mortgage, Lender agrees that,
without Lender’s prior written consent and without payment of a fee, (i) the issuance or transfer of shares of common stock
or other equity interests in Trade Street Residential, Inc., or other beneficial interest or other forms of securities thereof,
including all varieties of convertible debt, or (ii) the issuance or transfer of limited partnership interests in Trade Street
Operating Partnership, LP, shall be permitted.

 

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This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

		8.	Representations, Ownership, Management and Control.

 

		(a)	Representations. Borrower represents and warrants
that as of the date hereof:

 

		(i)	the Secured Property is owned by TS Talison Row, LLC, a Delaware limited liability company, which
is the “Borrower” herein;

 

		(ii)	the sole member of the Borrower is Trade Street Operating Partnership, LP, a Delaware limited partnership;

 

		(iii)	Trade Street OP GP, LLC, a Delaware limited liability company, is the sole general partner of Trade
Street Operating Partnership, LP; and

 

		(iv)	Trade Street Residential, Inc., a Maryland corporation, is the sole member of Trade Street OP GP,
LLC.

 

		(b)	Ownership; Management and Control. Borrower
agrees that the failure to comply with the following requirements for ownership, management and control shall, at the option of
the Lender, constitute an Event of Default:

 

		(i)	Trade Street Operating Partnership, LP shall, at all times, directly or indirectly, retain a minimum
fifty-one percent (51%) ownership interest in Borrower, and, by virtue of such ownership interest, control and have the right to
continue to control, the management of Borrower and the Secured Property; and

		(ii)	Trade Street Residential, Inc. shall, at all times, directly or indirectly, retain a minimum fifty-one
percent (51%) ownership interest in Trade Street Operating Partnership, LP.

 

9.        Special Purpose Entity. Lender
agrees to waive the requirements imposed upon Borrower under Section 5.20 of the Mortgage which require that Borrower provide Lender
with a non-consolidation opinion. Lender also agrees to waive the requirements under Section 5.20 of the Mortgage which require
that any managing member of the Borrower (i) be a single purpose entity or (ii) have the separateness covenants of Section 5.20
applied to such managing member or (iii) include the provisions of Section 5.20 in its organizational documents .

 

This Section shall continue
in effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

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		10.	Monthly Reserve Deposits. Lender agrees to waive the obligations and requirements
imposed upon Borrower by the Reserve Deposit Agreement for the payment to Lender of the monthly deposits described therein, subject
to the satisfaction of the following conditions:

 

		(a)	Borrower maintains the Secured Property to Lender’s sole satisfaction; and

 

		(b)	the Secured Property maintains a Debt Coverage Ratio of 1.15 or more.

 

This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

		11.	Release of Borrower and Limited Guarantor Following
One Time Transfer.

 

		11.1	Release Following One Time Transfer (other than the Environmental Indemnity Agreement).
Upon a permitted transfer of the Secured Property pursuant to (and in compliance with) Section 5 captioned “One Time Right
of Transfer” (such date of actual transfer being defined as the “Permitted One Time Transfer Date”), Lender will
(x) release Borrower from liability under the Loan Instruments (other than liability under the Environmental Indemnity Agreement)
and (y) release Limited Guarantor from liability under the guaranty of the Non-Recourse Exceptions (other than the Environmental
Indemnity Agreement), except for any obligation or liability arising or accruing prior to the Permitted One Time Transfer Date
and except for any obligation or liability that arises or accrues from events that occurred prior to the Permitted One Time Transfer
Date.

 

		11.2	Release of Borrower and Limited Guarantor from Environmental Indemnity Agreement Following One
Time Transfer. Lender shall release Borrower and Limited Guarantor from liability under the Environmental Indemnity Agreement,
with the exception of any obligation or liability arising or accruing prior to the Environmental Release Date (hereinafter defined)
or arising or accruing from events that occurred prior to the Environmental Release Date provided that Borrower delivers to Lender,
at Borrower’s sole cost and expense, a current ESA Report (as hereinafter defined) for the Secured Property prepared by an
independent environmental engineer or other professional approved by Lender which ESA Report (i) is dated no earlier than twelve
(12) months following the date (the “Environmental Release Date”) of the transfer of the Secured Property pursuant
to (and in compliance with) Section 5 (One Time Right of Transfer) of this Side Letter Agreement, and (ii) sufficiently reflects
any matters of environmental concern and otherwise is satisfactory to Lender in all respects, in Lender’s sole discretion.
As used herein, the term “ESA Report” shall mean a current Phase I Environmental Site Assessment of the Secured Property,
conducted in accordance with the American Society of Testing Materials (ASTM) Designation E-1527 (as most recently revised), Standard
Practice for Environmental Site Assessment: Phase I Environmental Site Assessment Process, expanded to include a limited asbestos
survey, radon testing, testing for indoor air quality and such other matters relating to the Secured Property as Lender may reasonably
require. Such engineer or other professional preparing the ESA Report shall provide Lender with satisfactory evidence of professional
liability insurance, including without limitation, errors and omissions coverage of not less than $1,000,000 per claim and naming
Lender as an additional insured.

 

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This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

* * * * * 

 

		12.	Absence of Foreign or Enemy Status; Absence of Blocked Persons; Foreign Corrupt Practices
Act - Borrower. Notwithstanding the provisions of Section 2.08 of the Mortgage, except as required by applicable law or
regulations, Borrower shall have no duty to investigate or confirm that any shareholders of Trade Street Residential, Inc., are
in compliance with the provisions of Section 2.08 of the Mortgage, and any violations by such shareholders of the applicable rules
and regulations of OFAC or other applicable Orders shall not be a breach by Borrower under the provisions of Section 2.08 of the
Mortgage unless Borrower failed to investigate as required above.

 

This Section shall continue in
effect and constitute a consent and waiver only so long as the Secured Property (or any portion thereof) has not been conveyed
or alienated by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall
not apply to any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If any of the events described
herein have occurred, then, at Lender’s option, this Section shall be null and void.

 

		13.	Absence of Foreign or Enemy Status; Absence of Blocked Persons; Foreign Corrupt Practices
Act – Limited Guarantor. Notwithstanding the provisions of Section 3.10 of the Guaranty, except as required by applicable
law or regulations, Limited Guarantor shall have no duty to investigate or confirm that any shareholders of Trade Street Residential,
Inc., are in compliance with the provisions of Section 3.10 of the Guaranty, and any violations by such shareholders of the applicable
rules and regulations of OFAC or other applicable Orders shall not be a breach by Limited Guarantor under the provisions of Section
3.10 of the Guaranty unless Limited Guarantor failed to investigate as required above.

 

This Section shall continue in
effect and constitute a consent and waiver only so long as the Secured Property (or any portion thereof) has not been conveyed
or alienated by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC, Trade Street
Operating Partnership, LP and Trade Street Residential, Inc. and shall not apply to any successor or assignee of TS Talison Row,
LLC’s interest in the Secured Property or to any successor or assignee of Trade Street Operating Partnership, LP and Trade
Street Residential, Inc. If any of the events described herein have occurred, then, at Lender’s option, this Section shall
be null and void.

 

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		14.	Insurance. Lender agrees to waive the requirements for the delivery of original policies
of insurance as required by Section 1.03D of the Mortgage, provided that, in lieu thereof, Borrower delivers to Lender (i) an Accord
28 with respect to the “All Risk” coverage and an Accord 25 with respect to liability coverage, together with the Mortgage
Holder's clause, (ii) a statement indicating the sum total of the values of all other properties, if any, that are insured by the
policy in question in the same geographic area as the Secured Property, and (iii) such other summaries, policy provisions, endorsements
and/or other documentation as requested by Lender. The accuracy and completeness of each of items (i) , (ii) and (iii) shall be
certified by Borrower and Borrower’s insurance agent as such items and certifications shall be acceptable to Lender in all
respects.

 

This Section shall continue in
effect and constitute a consent and waiver only so long as (a) no Event of Default beyond any applicable notice and cure period
has occurred under any of the Loan Instruments and no event has occurred which, with the giving of notice or lapse of time, or
both, would constitute an Event of Default and (b) the Secured Property (or any portion thereof) has not been conveyed or alienated
by Borrower, it being acknowledged that this consent and waiver shall be personal to TS Talison Row, LLC and shall not apply to
any successor or assignee of TS Talison Row, LLC’s interest in the Secured Property. If either of the events described in
clauses (a) or (b) have occurred, then, at Lender’s option, this Section shall be null and void.

 

		15.	Consent to Easements. The Borrower has advised Lender that Talison Row Associates,
LP (“Seller”) which is the seller of the Property to Borrower has executed the documents referenced in items (a) and
(b) below (the “Post Closing Easements”) which have been approved by the City of Charleston and are with the City for
recording but that the City will not be recording the Post Closing Easements until after the closing of the sale of the Property
to the Borrower and after the recording of the Mortgage. In addition, the Seller has submitted or will submit to the City the “Parkline
Avenue Plat Revisions” (as defined below) which will be prepared and recorded after the closing of the sale of the Property
to the Borrower and after the recording of the Mortgage (the Parkline Avenue Plat Revisions and the Post Closing Easements are
collectively referred to herein as the “Post Closing Title Encumbrances”). The Lender (i) consents to the recording
of the Post Closing Title Encumbrances in the form presented by Borrower to Lender, (ii) agrees that such Post Closing Title Encumbrances
will constitute permitted encumbrances under Section 2.01 of the Mortgage and (iii) if requested by the City, the Lender will execute
a consent and subordination with respect to such Post Closing Title Encumbrances in form and substance satisfactory to Lender.
The Post Closing Title Encumbrances are as follows:
	 	 	 

		(a)	Exclusive Storm Water Drainage Easement executed by Seller to the City of Charleston, to be recorded
with the Register of Deeds of Berkeley County, South Carolina, in the form previously presented by Borrower to Lender covering
an Easement area depicted as New Variable Width Drainage Esmt. (593 SF) as shown on a plat (the “Parkline Avenue Plat”)
appearing of record in Plat Cabinet R, page 9P, aforesaid records and as shown on a plat entitled, "ALTA/ACSM LAND TITLE SURVEY
SHOWING TRACT L-3, TMS NO. 275-00-00-245 CONTAINING 9.830 ACRES PREPARED FOR TS TALISON ROW, LLC LOCATED ON DANIEL ISLAND, CITY
OF CHARLESTON, BERKELEY COUNTY, SOUTH CAROLINA," prepared by Richard D. Lacey, SCPLS 16120, dated August 12, 2013 (the “Survey”).
	 	 	 

		(b)	Covenants for Permanent Maintenance of Stormwater Facilities between Seller and the City of Charleston,
to be recorded in the aforesaid records in the form previously presented by Borrower to Lender.

 

    	11

    	 

    

		(c)	Minor revisions to the Parkline Avenue Plat to correct
some minor discrepancies between the Survey and the Parkline Avenue Plat, all as described in the proposed revisions to plat attached
to an email from Richard D. Lacey, SCPLS, to B. Taylor Gray dated August 21, 2013 at 12:54 p.m. (the “Parkline Avenue Plat
Revisions”).

 

* * * * * 

 

The waivers and consents
set forth in this letter agreement extend only to the matters set forth herein and under the conditions and limitations stated
herein, and such waivers and consents are not intended to affect the rights of Lender to exercise any power or right it may have
under the Mortgage or any other Loan Instrument.

 

Limited
Guarantor hereby ratifies the terms of this letter agreement and agrees that neither the waivers and consents granted herein,
nor the exercise by Borrower of any rights pursuant to this letter agreement, shall affect the obligations of such Limited Guarantor
under any guaranty, indemnity or other document or agreement executed by such Limited Guarantor in connection with the Loan.

 

 

 

Remainder of Page Intentionally Left
Blank

 

    	12

    	 

    

 

[Side Letter Agreement – Signature
Page]

 

 

Please acknowledge your
receipt and agreement to the foregoing by signing a copy of this agreement in the space provided below and returning the signed
copy to Lender.

  

	 	 	Very truly yours,	 
	 	 	 	 	 
	 	 	NEW YORK LIFE INSURANCE COMPANY	 
	 	 	 	 	 
	 	 	 	 	 
	Signed, sealed and	 	By:	/s/ Kevin Smith	 
	delivered in the presence of:	 	Name:	Kevin Smith	 
	 	 	Title:	Vice President	 
	 	 	 	 	 
	/s/ Daniel Duggan	 	 	 	 
	Witness	 	 	 	 
	Print Name: Daniel Duggan
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ Kathleen Brown	 	 	 	 
	Witness	 	 	 	 
	Print Name: Kathleen Brown
	 	 	 	 

 

 

 

Signatures
Continued on Next Page

 

    	 

    	 

    

 

[Side Letter Agreement – Signature
Page]

 

Agreement
to the foregoing

is hereby
acknowledged as of

the date first set forth above.

 

	 	 	BORROWER:	 
	 	 	 	 	 	 	 	 
	 	 	TS TALISON ROW, LLC,	 
	 	 	a Delaware limited liability company (SEAL)	 
	 	 	 	 	 	 	 	 
	 	 	By:	Trade Street Operating Partnership,
LP, a Delaware	 
	 	 	 	limited partnership, its Sole
Member (SEAL)	 
	Signed, sealed and	 	 	 	 	 	 	 
	delivered in the presence of:	 	 	By:	Trade Street OP GP,
LLC, a Delaware limited	 
	 	 	 	 	liability company, its general partner  (SEAL)	 
	/s/ Vanette Lugo	 	 	 	 	 	 	 
	Witness	 	 	 	By:	Trade Street Residential, Inc.,
a Maryland	 
	Print Name: Vanette Lugo	 	 	 	 	corporation, its
sole member  (SEAL)	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	/s/ Greg Baumann	 	 	 	 	By:	/s/ Bert Lopez  (SEAL)	 
	Witness	 	 	 	 	Name:	Bert Lopez	 
	Print Name: Greg Baumann	 	 	 	 	Title:	COO/CFO	 

 

 

 

 

	 	 	 	LIMITED GUARANTOR:
	 	 	 	 	 	 	 	 
	 	 	 	TRADE STREET OPERATING PARTNERSHIP,
LP,
	 	 	 	a Delaware limited partnership (SEAL)
	Signed, sealed and	 	 	 	 	 	 	 
	delivered in the presence of:	 	 	By:	Trade Street OP GP,
LLC, a Delaware limited	 
	 	 	 	 	liability company, its general partner  (SEAL)	 
	/s/ Vanette Lugo	 	 	 	 	 	 	 
	Witness	 	 	 	By:	Trade Street Residential, Inc., a Maryland 	 
	Print Name: Vanette Lugo	 	 	 	 	corporation, its sole
member  (SEAL)	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	/s/ Greg Baumann	 	 	 	 	By:	/s/ Bert Lopez  (SEAL)	 
	Witness	 	 	 	 	Name:	Bert Lopez	 
	Print Name: Greg Baumann	 	 	 	 	Title:	COO/CFO	 

   

 

[Signatures continued on following page]

 

    	 

    	 

    

 

[Side Letter Agreement – Signature
Page]

 

 

 

	 	 	TRADE STREET RESIDENTIAL, INC.	 
	 	 	a Maryland corporation  (SEAL)	 
	 	 	 	 	 
	 	 	 	 	 
	Signed, sealed and	 	By:	/s/ Bert Lopez  (SEAL)	 
	delivered in the presence of:	 	Name:	Bert Lopez	 
	 	 	Title:	COO/CFO	 
	 	 	 	 	 
	/s/ Vanette Lugo	 	 	 	 
	Witness	 	 	 	 
	Print Name: Vanette Lugo
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ Greg Baumann	 	 	 	 
	Witness	 	 	 	 
	Print Name: Greg BaumannExhibit 4.82

fORBEARANCE
AGREEMENT

 

THIS AMENDED AND
RESTATED FORBEARANCE AGREEMENT (this "Agreement") is made effective as of March 18, 2013, by and between NEWLEAD
HOLDINGS, LTD. ("Borrower"); and KENTUCKY FUEL CORPORATION ("Lender").

 

RECITALS:

 

A.           The
parties entered into a Promissory Note (the “Note”) on December 28, 2012 by which Borrower agreed to pay $7,500,000.00
to Lender as part of a real estate transaction where Borrower was to purchase property from Lender, and based on an Amended purchase
agreement (the “Purchase Agreement”). Capitalized terms used but not defined herein shall have the meanings assigned
to them in the Purchase Agreement. The Note had a payment date of January 29, 2013, but the which was later extended by the parties
to March 6, 2013. The parties thus had intended to close on the Note and the real estate purchase before now and had understood
Borrower would have received funding from a lender to facilitate such closing, but such closing has not happened and Borrower has
requested that Lender forbear from pursuing remedies available to it under the Note and the Seller’s Collateral Security
Package so long as Borrower fully, timely and faithfully performs each and every one of its obligations hereunder and under the
Fifth Amendment to the Purchase Agreement.

 

B.           Borrower
has requested that Lender forbear, and Lender have consented, under the limited conditions set forth herein, to forbear from exercising
its rights and remedies under the Note and the Seller’s Collateral Security Package with respect to the Existing Events of
Default, all as more particularly set forth herein.

 

AGREEMENTS:

 

NOW, THEREFORE,
in consideration of (i) the facts set forth hereinabove (which are hereby incorporated into and made a part of this Agreement),
(ii) the covenants and agreements contained herein, and (iii) for other good and valuable consideration, the receipt, adequacy
and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.          Existing
Events of Default. Borrower and Guarantor acknowledge the existence of certain Events of Default, all of which remain uncured
after any applicable notice and opportunity to cure under the Loan Documents (the “Existing Events of Default”),
which include failure to payoff the Loan at its original Maturity Date.

  

    	 

    	 

    

 

2.           Forbearance.

 

(a)          Subject
to the conditions set forth herein, Lender shall forbear from exercising its rights and remedies with respect to the Existing Events
of Default from the date hereof until the earliest to occur of the following (the “Forbearance Termination Events”):
(a) the time at which Borrower fails to comply in any respect with all of its obligations under this Agreement, (b) the occurrence
or discovery of any Event of Default under the Purchase Agreement (other than the Existing Events of Default) (the period beginning
on the date hereof and terminating on the earliest of such dates being hereafter referred to as the “Forbearance Period”)
or (c) 5:00 pm, March 18, 2014. During the Forbearance Period, Borrower shall continue (i) to pay all amounts that, absent the
maturity of the Note and/or the occurrence of an Event of Default and the acceleration of the Note, Borrower would be obligated,
pursuant to the terms of the Purchase Agreement, to pay during the Forbearance Period plus (ii) to pay fully, timely and faithfully
each and every one of the forbearance payments required under Section 3 hereof, below.

 

(b)          Except
with respect to the Lender’s specific agreements set forth herein to forbear with respect to the Existing Events of Default
in accordance with the terms of this Agreement, nothing set forth herein shall constitute a forbearance or waiver of Lender’s
rights at any time, including during the term of the Forbearance Period, to enforce any and all rights and remedies such lender
has under the Purchase Agreement, the Note, the Seller’s Collateral Security Package, or any other Loan Document between
the parties, in equity, at law, by agreement or otherwise, for failure to fully, timely and faithfully perform all obligations
under this Agreement, for any default under the Fifth Amendment to the Purchase Agreement, and for any other default under any
other obligation or agreement between Borrower and Lender that is not an Existing Event of Default, including, without limitation,
to immediately recover the full amount of the Obligations and foreclose on collateral thereunder. In addition, at the end of the
Forbearance Period, unless Lender has agreed in writing to continue to forbear, upon terms and conditions satisfactory to Lender
and in Lender’s sole and absolute discretion, Lender shall have the right to enforce any and all rights Lender has under
the Note, the Seller’s Collateral Security Package, or any other of the Loan Documents, in equity, at law, by agreement or
otherwise, including, without limitation, to immediately recover the full amount of the Obligations and foreclose on collateral
thereunder.

 

(c)          The
agreement of Lender to the forbearance described herein (i) in no way shall be deemed an agreement by Lender to waive Borrower’s
compliance with this Agreement and with all other terms of the Note or the Purchase Agreement or the Seller’s Collateral
Security Package or other Loan Documents or agreements, and (ii) shall not limit or impair Lender’s right to demand strict
performance of all other terms and covenants as of any date. The forbearance granted by Lender to Borrower herein is strictly limited
to a forbearance in accordance with the terms set forth herein.

 

3.           Forbearance
Payment Schedule. Borrower hereby agrees to make the following forbearance payments to Lender, which payments shall be
applied to the principal amount owing under the Note; provided further that all such payments shall be made by wire transfer of
immediate funds to Chicago Title Insurance Company for immediate (same-day) further delivery to Lender or its designee in accordance
with the terms of an Irrevocable Instruction letter between Borrower, Lender, Williams Industries, LLC and Chicago Title Insurance
Company:

  

    	2

    	 

    

    

	 	(i)	$350,000 on or before March 18, 2013;
	 	 	 
	 	(ii)	$350,000 on or before April 18, 2013;
	 	 	 
	 	(iii)	$350,000 on or before May 18, 2013;
	 	 	 
	 	(iv)	$1,105,555.56 on or before June 18, 2013;
	 	 	 
	 	(v)	$1,105,555.56 on or before July 18, 2013;
	 	 	 
	 	(vi)	$1,105,555.56 on or before August 18, 2013;
	 	 	 
	 	(vii)	$1,105,555.56  on or before September 18, 2013;
	 	 	 
	 	(viii)	$1,105,555.56 on or before October 18, 2013;
	 	 	 
	 	(ix)	$1,105,555.56 on or before November 18, 2013;
	 	 	 
	 	(x)	$1,105,555.56 on or before December 18, 2013;
	 	 	 
	 	(xi)	$1,105,555.56 on or before January 18, 2014;
	 	 	 
	 	(xii)	$1,105,555.56 on or before February 18, 2014.

 

In regard to these payments,
interest would bear on all amounts due the Lender, until such time as all principal on the Note has been paid, at the rate of Ten
Percent (10%) per annum, provided however that Borrower shall be entitled to a credit against such interest equal
to 60% of total accrued interest if all unpaid principal of such Note is paid off on or before July 18, 2013, and provided
further that accumulated interest would not be payable until the earlier of (1) the date of an early payoff of principal
(for example, due to the Deutsche Bank financing or other financing being closed) or (2) the due date of the February 18, 2014
forbearance payment.

 

Notwithstanding the foregoing,
all amounts then owing under the Note shall accelerate and be due and owing in full upon the closing of the Borrower’s credit
facility with Deutshe Bank or another lender, which closing is anticipated to occur within six (6) months from the date of this
Agreement.

 

4.           Miscellaneous.

 

(a)          This
Agreement shall be governed by and construed in accordance with the laws of the State of Kentucky.

 

    	3

    	 

    

  

(b)          Each
of Borrower, Guarantor and Lender acknowledges that there are no other understandings, agreements or representations, either oral
or written, express or implied, that are not embodied in the Purchase Agreement, including its Exhibits, and this Agreement, which
collectively represent a complete integration of all prior and contemporaneous agreements and understandings of Borrower and Lender;
and that all such prior understandings, agreements and representations are hereby modified as set forth in this Agreement. Except
as expressly modified hereby, the terms of the Loan Documents are and remain unmodified and in full force and effect.

 

(c)          This
Agreement shall bind and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors
and assigns.

 

(d)          This
Agreement may be executed in one or more counterparts, all of which, when taken together, shall constitute one original Agreement.

 

(e)          Time
is of the essence of Borrower’s obligations under this Agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement dated as of the day and year first above written.

 

	 	KENTUCKY FUEL CORPORATION
	 	 
	 	By:	/s/ Stephen W. Ball
	 	 	Title: VP of Operations
	 	 
	 	NEWLEAD HOLDINGS, LTD
	 	 
	 	By:	/s/ Michail S. Zolotas
	 	 	Title: CEO

 

    	4

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